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P R O J E C T R E P O R T

O N

“ B U S I N E S S O P P U R T U N I T Y I N L I F E

I N S U R A N C E ”

In Partial Fulfillment of The Requirement For The Degree

OF

BACHELOR OF BUSINESS ADMINISTRATION

SESSION (2012-13

S!"#ITTED "$%

&!RSE') SIN&*

#"(I+ - ,T* Sem

RO.. NO%-,1/

1 | P a g e



UNIVERSITY SCHOOL OF

BUSINESS STUDIES

GURU KASHI CAMPUS,

TALWANDI SABO

+)NO'.ED&E#ENT

It gives an immense pleasure to me to present this report, a written form of the practical

experience I have undergone.

The project on “"!SINESS OPP!RT!NIT$ IN .IFE INS!RN+E ” would not

have seen the light of the da without the following people and their priceless support and

cooperation. !ence I extend m gratitude to all of them. I am greatl inde"ted to them for

ta#ing great pains in guiding me.

I would li#e to than# !$%& 'T()$(*$ +I% I)'-*()& for giving me an

opportunit of learning and contri"uting through this project.

$uring the actual project wor#, r /-T( 'I)0! &hannel $evelopment anger2

Project 0uide, who set the "all rolling for m project. !e has "een a source of inspiration

through his constant guidance3 personal interest3 encouragement and help. I conve m sincere

than#s to him. In spite of his "us schedule he alwas found time to guide me through the

project. I am also grateful to him for reposing confidence in m a"ilities and giving me the

freedom to wor# on m project. 4ithout his invalua"le help I would not have "een a"le to do

justice to the project.

5 | P a g e



The project couldn6t have "een completed without timel and vital help of other office

staff. 'pecial than#s to r./-T( 'I)0! &hannel $evelopment anger2 for his invalua"le

guidance, #een interest, cooperation, inspiration, and of course moral support through m

project session.

T".E OF +ONTENTS

Introduction to Insurance 77777777777777777777777777777777777777777777777777777777777777778

Indian Insurance Industr777777777777777777777777777777777777777777777777777777777777777711

'49T (nalsis of Insurance industr77777777777777777777777777777777777777777777777771:

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'49T analsis of !$%& '+7777777777777777777777777777777777777777777777777777777777775<

Potential of insurance /usiness in India 777777777777777777777777777777777777777777777775;

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ar#eting Pro"lem 77777777777777777777777777777777777777777777777777777777777777777777777::

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8 | P a g e



INS!RN+E

+ife is a roller coaster ride and is full of twists and turns. Bou cannot ta#e anthing for granted

in life. Insurance policies are a safeguard against the uncertainties of life.

Insurance is a promise of reim"ursement in the case of loss3 paid to people or companies so

concerned a"out haCards that the have made prepaments to an insurance compan. It is

"asicall a contract that provides compensation for specific losses in exchange for a periodic

pament

(n insurance contract or polic will set out in detail the exact circumstances under which a

"enefit pament will "e made and the amount of the premiums.

Insurance is sstem " which the losses suffered " a few are spread over man, exposed to

similar ris#s. Insurance is a protection against financial loss arising on the happening of an

unexpected event. Insurance polic helps in not onl mitigating ris#s "ut also provides a

financial cushion against adverse financial "urdens suffered.

Insurance policies cover the ris# of life as well as other assets and valua"les such as home,

automo"iles, jewelr et al. 9n the "asis of the ris# the cover, insurance policies can "e

classified into two categoriesD

• +ife Insurance Policies

• 0eneral Insurance Policies

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.ife Inurane

+ife is ver fragile and death is a certaint. 4e cannot control the uncertainties of life. /ut, we

can cover the ris#s surrounding us. +ife insurance, simpl put, is the cover for the ris#s that we

run during our lives. It protects us from the contingencies that could affect us.

+ife insurance is not for the person who passes awa, it for those who survive. It is the

responsi"ilit of ever "read earner to guard against the events that could affect the famil in

the unfortunate circumstance of his E her demise. Thus, having a life insurance polic is ver

vital. /efore going for a life insurance polic it is imperative that ou #now a"out various

tpes of life insurance policies. ajor among them areD

• ndowment Polic

• 4hole +ife Polic

• Term +ife Polic

• one7"ac# Polic

• Foint +ife Polic

• 0roup Insurance Polic

• +oan &over Term (ssurance Polic

• Pension Plan or (nnuities-nit +in#ed Insurance Plan

: | P a g e

http://www.iloveindia.com/finance/insurance/life-insurance/endowment-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/whole-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/term-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/money-back-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/joint-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/group-insurance-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/loan-cover-term-assurance-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/pension-plan.html

http://www.iloveindia.com/finance/insurance/life-insurance/unit-linked-insurance-plans.html

http://www.iloveindia.com/finance/insurance/life-insurance/endowment-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/whole-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/term-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/money-back-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/joint-life-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/group-insurance-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/loan-cover-term-assurance-policy.html

http://www.iloveindia.com/finance/insurance/life-insurance/pension-plan.html

http://www.iloveindia.com/finance/insurance/life-insurance/unit-linked-insurance-plans.html



En4o5ment Poli6

(n endowment polic covers ris# for a specified period, at the end of which the sum assured is

paid "ac# to the policholder, along with the "onus accumulated during the term of the polic.

(n endowment life insurance polic is designed primaril to provide a living "enefit and onl

secondaril to provide life insurance protection. Therefore, it is more of an investment than a

whole life polic.

ndowment life insurance pas the face value of the polic either at the insuredGs death or at a

certain age or after a num"er of ears of premium pament. ndowment polic is an

instrument of accumulating capital for a specific purpose and protecting this savings program

against the saverGs premature death.

&rou7 Inurane

0roup insurance offers life insurance protection under group policies to various groups such as

emploers7emploees, professionals, co7operatives, wea#er sections of societ, etc. It also

provides insurance coverage for people in certain approved occupations at the lowest possi"le

premium cost.

0roup insurance plans have low premiums. 'uch plans are particularl "eneficial to those for

whom other regular policies are a costlier proposition. 0roup insurance plans extend cover to

large segments of the population including those who cannot afford individual insurance.

( num"er of group insurance schemes have "een designed for various groups. These include

emploer7emploee groups, associations of professionals such as doctors, lawers, chartered

@ | P a g e



accountants etc.2, and mem"ers of cooperative "an#s, welfare funds, credit societies and

wea#er sections of societ.

#one6 "a8 Poli6

one "ac# polic provides for periodic paments of partial survival "enefits during the term

of the polic, as long as the policholder is alive.

The differ from endowment polic in the sense that in endowment polic survival "enefits are

paa"le onl at the end of the endowment period.

(n important feature of mone "ac# policies is that in the event of death at an time within the

polic term, the death claim comprises full sum assured without deducting an of the survival

"enefit amounts, which ma have alread "een paid as mone7"ac# components. The "onus is

also calculated on the full sum assured.

Penion Plan

( pension plan or an annuit is an investment that is made either in a single lump sum pament

or through installments paid over a certain num"er of ears, in return for a specific sum that is

received ever ear, ever half7ear or ever month, either for life or for a fixed num"er of

ears.

(nnuities differ from all the other forms of life insurance in that an annuit does not provide

an life insurance cover "ut, instead, offers a guaranteed income either for life or a certain

period.

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Tpicall annuities are "ought to generate income during oneGs retired life, which is wh the

are also called pension plans. / "uing an annuit or a pension plan the annuitant receives

guaranteed income throughout his life. !e also receives lump sum "enefits for the annuitantGs

estate in addition to the paments during the annuitantGs lifetime.

Term .ife Inurane Poli6

Term life insurance polic covers ris# onl during the selected term period. If the policholder

survives the term, the ris# cover comes to an end. Term life policies are primaril designed to

meet the needs of those people who are initiall una"le to pa the larger premium reHuired for

a whole life or an endowment assurance polic

)o surrender, loan or paid7up values are granted under term life policies "ecause reserves are

not accumulated. If the premium is not paid within the grace period, the polic lapses without

acHuiring an paid7up value.

!nit .in8e4 Inurane Plan (!.IP

-nit lin#ed insurance plan -+IP2 is life insurance solution that provides for the "enefits of

protection and flexi"ilit in investment. The investment is denoted as units and is represented

" the value that it has attained called as )et (sset alue )(2. The polic value at an time

varies according to the value of the underling assets at the time.

-+IP provides multiple "enefits to the consumer. The "enefits includeD

• +ife protection

• Investment and 'avings

• %lexi"ilit

• (djusta"le +ife &over

• Investment 9ptions

• Transparenc

• $eath due to accident

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• $isa"ilit

• &ritical Illness

• 'urgeries

•

+iHuidit• Tax planning

'hole .ife Inurane Poli6

( whole life polic runs as long as the policholder is alive. (s ris# is covered for the entire

life of the policholder, therefore, such policies are #nown as whole life policies. ( simple

whole life polic reHuires the insurer to pa regular premiums throughout the life. In a whole

life polic, the insured amount and the "onus is paa"le onl to the nominee of the "eneficiar

upon the death of the policholder. There is no survival "enefit as the policholder is not

entitled to an mone during his E her own lifetime.

&eneral Inurane

0eneral Insurance provides much7needed protection against unforeseen events such as

accidents, illness, fire, "urglar et al. -nli#e +ife Insurance, 0eneral Insurance is not meant to

offer returns "ut is a protection against contingencies. (lmost everthing that has a financial

value in life and has a pro"a"ilit of getting lost, stolen or damaged can "e covered through

0eneral Insurance polic.

Propert "oth mova"le and immova"le2, vehicle, cash, household goods, health, dishonest

and also oneGs lia"ilit towards others can "e covered under general insurance polic. -nder

certain (cts of Parliament, some tpes of insurance li#e otor Insurance and Pu"lic +ia"ilitInsurance have "een made compulsor.

1A | P a g e



11 | P a g e



"rief hitor6 of the Inurane Setor

In todaGs hectic world, there is uncertainl in ever move that we ma#e. +ife is not as health

as it should "e. In the rat race, in order to live a "etter Hualit of life, to earn mone and more

mone we all have somehow forgotten to live the present. !ence " this entire "argain, our

future remar#a"l seems all the more confusing and uncertain.

Insurance in India has its histor dating "ac# till 1;1;, when 9riental +ife Insurance &ompan

was started " uropeans in Jol#ata to cater to the needs of uropean communit. Pre7

independent era in India saw discrimination among the life of foreigners and Indians with

higher premiums "eing charged for the latter. It was onl in the ear 1;@A, /om"a utual

+ife (ssurance 'ociet, the first Indian insurance compan covered Indian lives at normal rate.

(t the dawn of the twentieth centur, insurance companies started mushrooming up. In the ear

1>15, the +ife Insurance &ompanies (ct, and the Provident %und (ct were passed to regulate

the insurance "usiness. The +ife Insurance &ompanies (ct, 1>15 made it necessar that the

premium rate ta"les and periodical valuations of companies should "e certified " an actuar.

!owever, the disparage still existed as discrimination "etween Indian and foreign companies

%or over <A ears, life insurance in India was defined and driven " onl one compan7 the

+ife Insurance &orporation of India +I&2. 4ith the Insurance *egulator and $evelopment

(uthorit I*$(2 /ill 1>>> paving the wa for entr of private companies into "oth life and

general sectors there was "ound to "e new7found excitement7 and new success stories. Toda,

their cumulative share has crossed 5=K sourceD I*$(2, far exceeding expectations. &learl

insurance is on a growth path. The percentage of premium income to 0$P which was just

15 | P a g e

http://www.answers.com/topic/calcutta

http://www.answers.com/topic/calcutta



5.=K in 5AAA7A1 rose to =.=K in 5AA57A=3 and life insurance has emerged as the dominant

contri"utor to this growth.

The industr presented a huge opportunit. +ife insurance penetration, for instance, was at an

a"smal 55K of the insura"le population. !owever, private plaers have had to rise to man

challenges. The were faced with attitudinal "arriers towards the categor and the perception

that insurance was onl a tax saving tool. Insurance had lost it "asic rationaleD protection. It

wasn6t surprising then that its potential la froCen and unexploited. The challenge for private

insurance plaers was to change the esta"lished categor driver and get customers to evaluate

life insurance as an investment7cum7protection tool.

"rief Re9ie5 of Senario : Inurane

Insurance in India started without an *egulation in )ineteenth centur.

It was stor of a tpical colonial era. ( few /ritish companies dominated the mar#et mostl in

large ur"an centers.

Insurance was nationaliCed mainl on = counts %irst, Indian lives were not insured. 'econd,

even if the were insured, the were treated as su"standard lives and extra premium was

charged. Third, there were gross irregularities in the functioning of +ife insurance was

nationaliCed in the ear 1><:, and then general insurance was nationaliCed in the ear 1>@5. In

1>>>, the private insurance companies were allowed "ac# again into insurance sector with

maximum cap of 5: percent foreign holding, presentl it has increased to 8> percent.

/ritish introduce to India, with the esta"lishment of the 9riental +ife Insurance compan in

&alcutta.

1;<0 )on life insurance de"uts, with Triton Insurance &ompan.

1=;> /om"a utual life (ssurance 'ociet is the first Indian7owned life insurer

1=0> Indian mercantile Insurance is the first Indian non7life insurer.

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1=12 The Indian life assurance companies6 act enacted to regulate the life insurance "usiness.

1=3; The insurance act, which forms the "asis for most current insurance laws, replaces earlier

act.

1=<, +ife insurance nationaliCed, government ta#es over 58< Indian and foreign insurers and

provident societies.

1=<, 0overnment sets up +I&

1=>2 )on life insurance nationaliCed, 0I& set up.

1==3 alhotra committee, headed " former */I governor *.).alhotra, set up to draw up a "lue print for insurance sector reforms.

1==/ alhotra &ommittee recommends re7entr of private plaers, autonom to P'- insurers.

1==> Insurance regulator I*$( Insurance *egulator and $evelopment (uthorit2 set up.

2000 I*$( starts giving licensed to private insurers

2002 /an#s were allowed to sell insurance plans, as TP(s enter the scene, insurers start settling

non7life claims in the cashless mode.

18 | P a g e



IND!STR$ REFOR#S

*eforms in the Insurance sector were initiated with the passage of the I*$( /ill in Parliament

in $ecem"er 1>>>. The I*$( since its incorporation as a statutor "od in (pril 5AAA has

fastidiousl stuc# to its schedule of framing regulations and registering the private sector

insurance companies. 'ince "eing set up as an independent statutor "od the I*$( has put in

a framewor# of glo"all compati"le regulations.

The other decision ta#en simultaneousl to provide the supporting sstems to the insurance

sector and in particular the life insurance companies was the launch of the I*$( online service

for issue and renewal of licenses to agents. The approval of institutions for imparting training

to agents has also ensured that the insurance companies would have a trained wor#force of

insurance agents in place to sell their products.

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S'OT N.$SIS OF INS!RN+E IND!STR$

Strength

-pcoming of various insurance companies with innovative products.

&hanging investors perception in favor of I)'-*()& Industr

-sing "an#s as channel of distri"ution.

Insurance give financial securit to investors and his famil.

Increasing awareness among investors for insurance.

Investors can claim tax re"ate uEs ;A& and 1A1A$2.

Insurance provides protection against uncertainties.

Insurance provides saving schemes with good returns.

(vaila"ilit of different products suiting different #inds of investors.

$iversification creates safet.

0rowing capital mar#et with increase in %$I L coming up of more )&.

'ea8ne

+ac# of trust among pu"lic in private sector.

)o 0uaranteed return.

("sence of well informed, educated selling " financial intermediaries.

+imited #nowledge "ased differential. $istri"utors tpicall tend to sellMwhat

Nell?and not what6s Ngoo4 or what is Nrequire4

4rong attitude of intermediaries, the mar#et with the short term o"jectives.

1: | P a g e



+ow penetration of private companies in small towns.

'ervice not up to the mar# as per the expectations.

O77ortunitie

+ot of scope for progress as this sector of "usiness is still in its infanc stage.

Increasing purchasing power

Increased standard of living

&an target specific niches, which are poorl served or are not served at all.

&an introduce innovative products offering a right mix of flexi"ilitiesEris#Ereturn

depending on the appetite of the customer

0rowing N&orporate India6

!as not still reached the interiors of rural India.

'o, !uge untapped mar#et in rural areas.

%ocus on professional services segment.

Tax free returns.

*ising stoc# mar#et which promotes the interest of people in unit lin#ed plans.

Threat

Increased competition with upcoming of new insurance companies.

(vaila"ilit of other saving instruments li#e %ixed $eposits, *ecurring $eposits.

(vaila"ilit of other investment instruments such as gold, real estate, eHuit share etc

("sence of need "ased selling. Investment options are toda sold as Nproducts6 ML

not as Nsolutions6.

*ising rates of returns on %ixed $eposits which are as high as 1A.<K.

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(s a cost cutting measure, corporate have started reducing premium in 0roup insurance

plans.

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HDFC STANDARD LIFE INSURANCE

HOUSING DEVELOPMENT FINANCE CORPORATION

LIMITED (HDFC)

%ounded in 1>@@, !$%& is toda the mar#et leader in housing finance in India and has

extended financial assistance to more than 1< la#h homes. !$%& has more than 11A offices in

India presentl. It also has an international office in $u"ai and = 'ervice (ssociates in Juwait,

?atar, and the 'ultanate of 9man. !$%&6s asset "ase amounts to over *s. 5;,AAA cores. Its

financial strength is reflected in highest safet ratings of N%(((6 and N(((6 awarded "

&*I'I+ and I&*( O two of India6s leading credit rating agencies O respectivel, for the last :

ears conseHuentl. It has a depositor "ase of over 11 la#h customers and a deposit agent6s

force of over 8:,AAA. of the total deposits, @=K are sourced from individual and trustdepositors. 4hich demonstrates the tremendous confidence that retail investors have in the

compan

/eing an institution that is strongl committed to the highest standards of Hualit and

excellence, !$%& has won several accolades in the past few ears such as “*ama#rishna /ajaj

)ational ?ualit (ward” for the ear 1>>>.

THE HDFC GROUP

!$%& commenced operations as a mortgage "an#3 it raised large wholesale resources

domestic and international2 and lent primaril to individual households. In mid 1>>1, !$%&

entered the retail deposit mar#et " offering savings and investment opportunities to

1> | P a g e



households. Incorporated in 1>@@ with a share capital of *s. 1A crores, !$%& has since

emerged as the largest residential mortgage finance institution in the countr. The corporation

has had a series of share issues raising its capital to *s. 15A crores. The net worth of the

corporation is *s. 5;,AAA crores.'-/'I$I(*B &9P()I'

HDFC Standard Life Insurane! "

!$%& 'tandard +ife Insurance &ompan +td. is one of IndiaGs leading private insurance

companies, which offers a range of individual and group insurance solutions. It is a joint

venture "etween !ousing $evelopment %inance &orporation +imited !$%& +td.2, IndiaGs

leading housing finance institution and a 0roup &ompan of the 'tandard +ife, urope6s

largest mutual life assurance compan -J2. !$%& as on arch =1, 5AA@ holds ;1.> per cent

of eHuit in the joint venture.

HDFC De#e$%&ers Li'ited

!$%& promoted a wholl owned su"sidiar compan3 !$%& $evelopers +imited, tounderta#e housing projects on a selected "asis in various regions of the countr. !$%&

$evelopers +imited has also underta#en a num"er of projects for the office premises of the

corporation. It is also "eing engages as a consultant to a num"er of residential and commercial

projects.

HDFC In#est'ents Li'ited

!$%& promoted a wholl owned su"sidiar compan3 !$%& Investments +imited

!I+2, to underta#e investments in stoc#s, shares, de"entures, and other securities. The *eserve

/an# of India under the categor of investment &ompan has registered !I+ as a )on O

/an#ing Insurance &ompan )/%&2. !I+ was set O up with an intention of "eing the

investment arm of !$%&.

5A | P a g e



• !$%& *ealt +imited

• !$%& !olding +imited

• !$%& (sset anagement &ompan +imited

• !$%& Trustee &ompan +imited

• !$%& %inance +imited

HDFC Standard Life Insurane C%

C%'&an Pr%fi$e!

!$%& 'tandard +ife Insurance &ompan was incorporated on 18th (ugust 5AAA, under the

name of !$%& 'tandard +ife Insurance &ompan +imited.

!$%& 'tandard +ife Insurance &o. +td. is a joint venture "etween !$%& +td., IndiaGs largest

housing finance institution and 'tandard +ife (ssurance &ompan, uropeGs largest mutual life

compan. It was the first life insurance compan to "e granted a certificate of registration "

the I*$( on the 5=rd of 9cto"er 5AAA

!$%& +td. and 'tandard +ife 0roup, -J, have a long and close relationship "uilt upon shared

values and trust. The am"ition of !$%& 'tandard +ife is to mirror the success of the parent

companies and "e the ardstic# " which all other insurance companies in India are measured.

(s a joint venture of leading financial services groups, !$%& 'tandard +ife has the financial

expertise reHuired, to manage long7term investments safel and efficientl.

!$%& are the main shareholders in !$%& 'tandard +ife, with ;1.8K, while 'tandard +ife

owns 1;.:K. 0iven 'tandard +ife6s existing investment in the !$%& 0roup, this is the

maximum investment allowed under current regulations

In India, 'tandard +ife has two joint venture partnerships with !$%&D a life insurance

compan !$%& 'tandard +ife Insurance +imited, in which it holds 1;.:K, as at =A 'eptem"er

5AA:, and !$%& (sset anagement &ompan, in which it holds 8>.>K. 'tandard +ifeGs

holding in !$%& 'tandard +ife Insurance +imited changed during 5AA: and the results for the

51 | P a g e



period to =A 'eptem"er 5AA: are "ased on a weighted average holding of 1@.@K > months to

=A 'eptem"er 5AA<D 5:.AK2. 'ales for !$%& 'tandard +ife Insurance &ompan +imited

increased <8K> to Q>>m 5AA<D Q:<m2 of which 'tandard +ifeGs share was Q1@m 5AA<D Q1@m2.

VISION

The most successful and admired life insurance company, which

mean that we are the most trusted company, the easiest to deal

with, offer the best value for money, and set the standards in

the industry.

In short , "The most obvious choice for all".

Core Values

Values that we observe while we work:

• Integrity

• Innovation

• Customer Centric

• eople Care !ne #or all and all for one$

• Team work

• %oy and simplicity

55 | P a g e



)E$ POINTS - *DF+ Stan4ar4 .ife Inurane

• , !$%& 'tandard +ife is now the &ompan6s second largest overseas venture "

customer num"ers. It is also the second largest private insurer in India when measured

" customer num"ers.

• !$%& 'tandard +ife Insurance covers over :>= cities and towns through its offices in

India.

• It has over @8,AAA %inancial &onsultants appointed " the compan.

• !$%& 'tandard +ife Insurance also has ;== corporate agents and other sales

intermediaries including "an#s for distri"ution of insurance products.

• !$%& '+ has more than 5@: "ranches, serving over :>= locations across the countr

• The compan currentl has 51 retail and : group products in its portfolio.

• !$%& 'tandard +ife has covered over 1.: million individuals

• )um"er of individual policies sold in the ear 5AA:-5AA@ is <,55,>;5.

• *ated " G/usiness worldG as GIndiaGs ost *espected Private +ife Insurance &ompanG

in 5AA8

• *ated as the R/est )ew Insurer 7 5AA=R " 9utloo# one magaCine, India6s num"er 1

personal finance magaCine

5= | P a g e



/ranches and )um"er of agents of !$%& '+

Ser9ing o9er >00 loation aro the ountr6

58 | P a g e

*+,

-./-01

2,1/*2

314000

-+4*/.-04200

,4,**

*,4.*0,,4*++

0

20

-00

-20*00

*20

,00

Mar 0* Mar 0, Mar 01 Mar 02 Mar 0. Mar"03

0

-04000

*04000

,04000

104000

204000

.04000

304000

+040005ran6es A7ents



T6e Retai$ Sa$es Hierar6 %f HDFC Standard Life

Insurane

Genera$ Mana7er

Head Retai$ Sa$es

8%na$ Mana7er

5ran6 Mana7er

Assistant Sa$es Mana7er

5usiness De#e$%&'ent Mana7ers

Sa$es De#e$%&'ent Mana7er

Certified Finania$ C%nsu$tants

5< | P a g e



SWOT Aal!s"sOur #e! s$re%$&s

*DF+ Stan4ar4 .ife Inurane

/rand strength *eputation

&ustomer "ase 9ne of the largest mutual life assuror

ar#et innovator around 5AAears of experience

+ocal #nowledge large capital "ase

Finanial e@7ertie

(s a joint venture of leading financial services groups, !$%& 'tandard +ife has the financial

expertise reHuired to manage our long7term investments safel and efficientl. It has strong

capital and reserve "ase.

Range of Solution

4e have a range of individual and group solutions, which can "e easil customiCed to specific

needs. 9ur group solutions have "een designed to offer ou complete flexi"ilit com"ined with

a low charging structure.

5: | P a g e



Tra8 Reor4 o far

9ur cumulative premium income, for the ear 5AA:7A@ is *s 1=8@.;> cr for individual

premium and *s 5@:.=< cr for group.

'ell etaAlihe4 training Infratruture

4ell esta"lished training infrastructure and s#illed faculties to ta#e care of technical expertise.

'E)NESS

• +ess num"er of products

• -pfront allocation charges on the slightl higher side than its rivals, sa /ajaj (llianC

• Poor retention percentage of tied up agents.

• Though adeHuate talents are availa"le and are well spread throughout the organiCation

enough opportunities are not provided to utiliCe them in the right direction.

• +ow customer confidence on private plaers.

OPPORT!NITIES

• !$%& 'tandard +ife Insurance can leverage upon setting up 0lo"al "ranches as lot of

Indian going a"road

• /ooming financial sector.

• &atering to niche mar#et with customiCed solutions.

• !uge mar#et is literall untapped. 9ut of estimated =5A million insura"le mar#ets onl

5<K of the population is insured.

• Pension plans are great aspects which need to "e covered "ecause of increased num"er

of people wor#ing in private sector who want a financiall secure life after retirement.

5@ | P a g e



• &hildren education plans are ever parents6 priorit as cost of education is increasing at

a high pace.

T*RETS• &ompanies with larger wor#force.

• The compan is competing with the 'tate owned "ig giant li#e +I& of India.

• The compan is also facing some threat from existing private plaers in the industr.

• ntr of man other private companies with eHual experience of Indian mar#et and

strong financial "ase of foreign partners are ma#ing the competition difficult and

saturating the ur"an mar#ets.

.

5; | P a g e



5> | P a g e



POTENTIAL OF INSURANCE BUSINESS IN INDIAAN OVERVIEW

Insurance is a federal su"ject in India and has histor dating "ac# till 1;1;. The Insurance

sector in India has gone through a num"er of phases and changes, particularl in the recent

ears when the 0ovt. of India in 1>>> opened up the insurance sector " allowing private

companies to solicit insurance and also allowing %$I up to 5:K, now it has "een raised to

8>K ver since, the Indian insurance sector is considered as a "ooming mar#et with ever

other glo"al insurance compan wanting to have a lionGs share. &urrentl, the largest life

insurance compan in India is still owned " the government.

4ith the largest num"er of life insurance policies in force in the world, Insurance happens to

"e a mega opportunit in India. It6s a "usiness growing at the rate of 1<75A per cent annuall.

Insurance premium for the ear 5AA< is 5= -'S"n2. Together with "an#ing services, it adds

a"out @K to the countr6s 0ross $omestic Product 0$P2. Insurance contri"utes =.1K to 0$P

in 5AA<. xpected premium from insurance in 5A5A is 5=> -'S"n and its contri"ution to 0$P

will "e @K

ven so nearl @<K of the Indian population is without life insurance cover while health

insurance and non7life insurance continues to "e "elow international standards. ( large part of

our population is also su"ject to wea# social securit and pension sstems with hardl an old

age income securit. This in itself is an indicator that growth potential for the insurance sector

in India is immense.

( well7developed and evolved insurance sector is needed for economic development as it

provides long term funds for infrastructure development and strengthens the ris# ta#ing a"ilit

of individuals. It is estimated that over the next ten ears India would reHuire investments of

the order of one trillion -' dollars. The Insurance sector, to some extent, can ena"le

investments in infrastructure development to sustain the economic growth of the countr.

=A | P a g e

http://www.answers.com/topic/la-india

http://www.answers.com/topic/foreign-direct-investment

http://www.answers.com/topic/la-india

http://www.answers.com/topic/foreign-direct-investment



Isura'e (o$e$"al

PRESENT S+ENRIO - .IFE INS!RN+E IND!STR$

IN INDI

=1 | P a g e



The life insurance industr in India grew impressive and premium income earned during the

financial ear 5AA<75AA: is *s =<;>@.><and 5AA:75AA@ is *s @<8A:.<5 cr

'ince the opening up of the insurance sector in 1>>>, foreign investments of R ;> Aillion

have poured into the Indian mar#et and 1< private life insurance companies have "een granted

licenses.

Innovative products, smart mar#eting, and aggressive distri"ution have ena"led fledgling

private insurance companies to sign up Indian customers faster than anone expected. Indians,

who had alwas seen life insurance as a tax saving device, are now suddenl turning to the

private sector and snapping up the new innovative products on offer. 'ome of these products

include investment plans with insurance and good returns unit lin#ed plans2, multi O purpose

insurance plans, pension plans, child plans and mone "ac# plans.

&ompetition has well and trul set in the fast7growing insurance sector, "arel a ear after the

doors were opened for the re7entr of private plaers.

The new face of the Indian insurance industr is craving for attention. !oardings and

"ill"oards of the new joint venture private companies gaCe at ou from everwhere.

(dvertisements in newspapers and on television, insurance agents and direct mailers form part

of the campaign vehicle. The doCen7odd life and non7life companies in the private sector are

fighting a Huiet "ut intense "attle to ma#e their presence felt to the Indian consumer. )ot to "e

undone, the pu"lic sector companies are tring to match the moves of the private companies.

NumAer of "ranhe an4 gent of Bariou

Inurer

=5 | P a g e



o of gent

NumAer Of "ranhe

== | P a g e

Insurer )o. of (gents )o. of /ranches

!$%& '+I @8,AAA 5@:

+I& <,:A,AAA 5A<A

I&I&I Prudential 5,=8,AAA <;>

/ajaj (llianC 5,1=,AAA >AA

ax )ew Bor# 5:,AAA 1@5



PROFI.E OF T.'NDI S"O

=8 | P a g e



Talwandi 'a"o is situated nearl 1=A #m south east of &handigarh, the capital cit of Punja".

/esides "eing an important industrial town of Punja".

Demogra7hi

Talwandi 'a"o had a population of around 1.@< la#h people. In which ales constitute :AK of

the population and females 8AK. Talwandi 'a"o has an average literac rate of:AK, higher

than the national average of <<.<KD male literac is @;K, and female literac is @AK. In

Talwandi 'a"o, 1<K of the population is under : ears of age.

Talwandi 'a"o is situated on the National *igh5a6 No ,/ which has "een stretched from

("hor to &handigrah . Talwandi 'a"o is surrounded " a num"er of villages. 'ome of these are

phul town, mandi #alan , mehraj , gill #alan, lehra dhur#ot etc.

It is connected to man "ig cities such as /athinda ,/arnala, aur andi &handigarh.

It also has one of the largest andi grain mar#et2.ore than @<K of wor#ing population

"elongs to /usiness &lass.

POTENTIAL OF INSURANCE BUSINESS IN TALWANDI SABO

=< | P a g e



(t present there are < +ife Insurance &ompanies 9perating In Talwandi 'a"o. (ll these

companies

together done the "usiness of more than *s 8Acr. E@e7t this there are more than 1A "an#s

selling life insurance in Talwandi 'a"o. 'ome of them are '/I, I&I&I, P)/,etc.

"uine 4one A6 .ife Inurane +om7anie at Tal5an4i SaAo

in .at Finanial $ear

.ife Inurane +or7oration of In4ia (.I++ife Insurance &orporation of India +I&2 is an autonomous "od authoriCed to run the life

insurance "usiness in India with its !ead 9ffice at um"ai. It has "een esta"lished " an act of

the Parliament and started functioning from 1E>E1><:.

+I& is the "iggest insurance plaer in the countr. 9ut of the total premium of *s @<8A:.<5

crore generated " the insurance industr through group "usiness in the ear 5AA;7A>, +I&

alone accounted for *s :A>==.<=crore.

In the financial ear 5AA;7A>, +I& has grown at 1=AK in respect of premium. +I&Gs mar#et

share in num"er of policies stands at ;<.<K respectivel.

In the life Insurance segment the +ife Insurance &orporation of India +I&2 is the major plaer.

The +I& has 5<5A "ranches. It is constituted into seven ones. &urrentl there are <,>A,AAA

+I& agents in India.

+I& was set up in 1=>2 in Tal5an4i SaAo. It has around <5A agents and it did the "usiness of

*s =A cr in last financial ear in Talwandi 'a"o.

=: | P a g e



I+I+I Pru4ential .ife Inurane

I&I&I Prudential +ife Insurance &ompan limited Nthe &ompan62 a joint venture "etween

I&I&I /an# +imited and Prudential plc of -J was incorporated on Ful5A, 5AAA as a companunder the &ompanies (ct, 1><: Nthe (ct62.

Toda I&I&I Prudential +ife Insurance is the 5nd largest life insurance compan in the countr,

next onl to +I&. %or the financial ear ended arch =1, 5AA;, the compan garnered *s

:A==.:8 crore of "usiness premiums and wrote nearl 1><><@< individual policies and <5A

group policies. Toda I&I&I +ife Insurance has a customer "ase of 8.< million.

I&I&I Prudential has one of the largest distri"ution networ#s amongst private life insurers in

India. (s of arch =1, 5AA; the compan has over <;A offices across the countr and over

=,5A,AAA advisors. The compan has over 55 "anc assurance partners.

(nd it "ecomes active in ugut 200, in Tal5an4i SaAo. There are 8AA agentEadvisors at

Talwandi 'a"o "ranch and it has done the "usiness of *s 5.5Acr till Fune, 5AA;.

#a@ Ne5 $or8 .ife Inurane

ax )ew Bor# +ife Insurance &ompan +imited is a joint venture "etween ax India

+imited, a multi7"usiness corporate, and )ew Bor# +ife International, a glo"al expert in life

insurance.

ax )ew Bor# +ife Insurance started its operations in India in 5AAA. It is the first life

insurance compan in India to "e awarded the I'A >AA1D5AAA certifications. ax )ew Bor#

offers customiCed products tailored to suit individualGs needs. 4ith its various Products and

*iders, there are more than 8AA product com"inations to choose from.

"aCaC llian

=@ | P a g e



/ajaj (llianC +ife provides life insurance services to customers in India. The compan is a

joint venture "etween (llianC and motorccle ma#er /ajaj (uto.

/ajaj (llianC +ife Insurance has alread has a customer "ase of close to =.< million customers.

&urrentl /ajaj (llianC has a product portfolio of =1 products and more need7"ased productsare in the pipeline.

It has one of the +argest distri"ution networ# to reach the customers across the countr with

5,1=,AAA agents, >AA offices in ;8A towns, 5AA corporate agents L /ancassurance partners

/ajaj (llianC +ife Insurance issued over 5 million 5A,@;,>==2 policies in this ear O highest

amongst all pvt. sector plaers, ta#ing the num"er 1 position.

/ajaj (llianC is the first private insurance compan in Talwandi 'a"o. It was set up in

ul6200<. It has networ# of 1@A agents. /usiness done in last financial ear is *s 1.;Acr.

*DF+ Stan4ar4 .ife Inurane

!$%& 'tandard +ife Insurance &o. +td. is a joint venture "etween !$%& +td., IndiaGs largest

housing finance institution and 'tandard +ife (ssurance &ompan, uropeGs largest mutual life

compan. It was the first life insurance compan to "e granted a certificate of registration "

the I*$( on the 5=rd of 9cto"er 5AAA. /oth the promoters are well #nown for their ethical

dealings and financial strength and are thus committed to "eing a long7term plaer in the lifeinsurance industr O important factors to consider when choosing our insurer.

*DF+ Stan4ar4 .ife Insurance &ompan +td. is one of India6s leading private life insurance

companies offering a range of individual and group insurance solutions. !$%& '+ has more

than 5@: "ranches, serving over :>= locations across the countr. It has over @> ,AAA %inancial

&onsultants appointed " the compan. %or the financial ear ended arch =1, 5AA>, the

compan garnered *s 5A<A.:A crore of "usiness premiums and wrote nearl <;=>:: individual

policies.

.

=; | P a g e



"uine 4one A6 .ife Inurane +om7anie in Tal5an4i

SaAo

S)N

o Isurer Se$ U( I Bus"ess *oe +Rs

No) o-

A%e$s

1 LIC 1972

26cr (April 2006- !rc"

2007# $20

2

ICICI

Pr%&')i!l A%*+2006

1.$0cr (A%*+ 2006- ,%'

2007# 00

!/ N' r3 Oc)+200

$0l!3" (April 2006-

!rc" 2007# 60

B!4!4 Alli!5 ,%l+200

1.$0cr (April 2006-

!rc" 2007# 170

$

DFC

S)!&!r& Li8' ,!+2007 0l!3" (ic' ,!+ 2007# 7$

Premium earne4 A6 .ife Inurane +om7anie in Tal5an4i

SaAo

=> | P a g e



nal6i

The a"ove chart shows the premium earned " the insurer companies for last : months. +I&

capture the largest mar#et share in terms of premium. I&I&I Prudential, though new in

Talwandi 'a"o has earned the premium which is second largest amount with respect to private

plaers. 4hereas /ajaj (llianC is next to +I& and leading private plaer in terms of premiumearned.

8A | P a g e



Bus"ess *oe .! Al$era$e '&aels

+Ba#s " Tal/a*" Sa.o " Las$ F"a'"al

Year

Ba#s Isura'e Pol"'!

Bus"ess

*oe

SBI SBI Li8' 2$ l!3":)!3

;!"i&r! O :)!3 . cr

DFC DFC SL $.20cr

ICICI ICICI Pr%&')i!l 0 l!3"

CBOP A<i<! Li8' 1.20 cr

Premium earned " alternate channel "an#s2 in Talwandi 'a"o

81 | P a g e



INTROD!+TION( *esearch $esign is the framewor# or plan for a stud which is used as a guide in collecting

and analCing the data collected. It is the "lue print that is followed in completing the stud.

The "asic o"jective of research cannot "e attained without a proper research design. It specifies

the methods and procedures for acHuiring the information needed to conduct the research

85 | P a g e



effectivel. It is the overall operational pattern of the project that stipulates what information

needs to "e collected, from which sources and " what methods.

STTE#ENT OF T*E PRO".E#

.

'tud the Potential of insurance "usiness in India.

O"E+TIBE OF T*E ST!D$

%or ever pro"lem there is a research. (s all the researches are "ased on some and m

stud is also "ased upon some o"jective and these are as follows.

1. To understand the potential of insurance "usiness in India.

5. To find out the insurance "usiness done " +ife Insurance &ompanies at Talwandi

'a"o.

=. To find out the insurance "usiness done " (lternate channels.

8. To find out untapped areas near Talwandi 'a"o.

S+OPE OF T*E ST!D$

The stud is related to search the potential of insurance "usiness in India. The scope of stud is

specific to the area of Talwandi 'a"o Punja"2. %or this a surve was conducted in which

explains a"out the "usiness done " various insurance companies and alternate channels to find

out competitors share in Talwandi 'a"o. It studies how !$%& '+ can motivate people and

8= | P a g e



increase its sale at Talwandi 'a"o. It tells the pro"lem faced in mar#eting of products and

suggestions to overcome the pro"lem.

RESER+* #ET*ODO.O&$

*esearch in common parlance refers to a search for #nowledge. 9ne can also define

research as a scientific and sstematic search for pertinent information on a specific

topic.

The word research has "een derived from %rench word *esearcher means to search.

%*()&I' *-* defined “*esearchD It is a careful inHuir or examination to

discover new information or relationship and to expand or verif existing #nowledge.

*esearch is the solution of the pro"lem, whether created or alread generated.

PROE+T DEFINITION

+ife insurance is designed to protect ou and our famil against financial uncertainties that

ma result due to unfortunate demise or illness. Bou can also view it as a comprehensive

financial instrument O as a part of our financial planning offering ou savings L investment

facilities along with cover against financial loss. / choosing the right polic as per our needs

i.e. customiCed solutions, ou will "e a"le to plan for a secure future for ourself and our

loved ones. Thi 7roCet i an attem7t to tu46 the Potential of inurane Auine in

Tal5an4i SaAo

RESER+* DESI&N

*esearch $esign is the conceptual structure within which research is conducted. It constitutes

the "lueprint for collection, measurement and analsis of data. The design used for carring out

this research is Deri7ti9e

88 | P a g e



DT +O..E+TION DESI&N

i. 'ources of $ata

/oth primary and secondary source of data has "een used to collect information.

• Primar6 4ata was collected from agents and other designated officers such as unit

managers, etc. The data explained a"out the "usiness done " insurance companies and

other alternate channels in last ear at Talwandi 'a"o. ?uestionnaire was prepared to

stud the scope for insurance "usiness at Talwandi 'a"o and awareness among the

people a"out new private insurance companies operating in Talwandi 'a"o.

?uestionnaire is attached as annexure and interpretation is given2.

• Seon4ar6 4ata was collected " ma#ing extensive use of the internet. The data was

also collected from various newspapers, journals, pu"lications and magaCines, annual

report etc.

ii. TechniHue of $ata &ollection

$ata was also collected " personall interviewing the agents and other designated

officials of different organiCations and through Huestionnaire.

S#P.IN&

'ampling refers to the method of selecting a sample from a given universe with a view to draw

conclusions a"out that universe. ( sample is a representative of the universe selected for stud.

+on9eniene am7ling is used in explorator research where the researcher is interested in

getting an inexpensive approximation of the truth. (s the name implies, the sample is selected

"ecause the are convenient. This non pro"a"ilit method is often used during preliminar

8< | P a g e



research efforts to get a gross estimate of the results, without incurring the cost or time reHuired

to select a random sample.

S#P.E SIGEThe sample siCe for the surve conducted was 1AA respondents.

S#P.IN& TE+*NIH!E

+on9eniene am7ling tehnique was used in the surve conducted.

N.$SIS ND INTERPRETTION%

$ata collection through Huestionnaire and personnel interview resulted in availa"ilit

of the desired information "ut these were useless until there were analCed. arious

steps reHuired for this purpose were editing, coding and ta"ulating. Ta"ulating refers to

"ringing together similar data and compiling them in an accurate and meaningful

manner. The data collected " Huestionnaire was analCed, interpreted with the help of

ta"le, "ar graph and pie chart.

8: | P a g e



#R)ETIN& PRO".E#S

The old and out dated techniHue of tele mar#eting is used to prospect customers. ore modern

techniHues must "e adopted. The compan must sponsor shows and give presentations in

corporate houses. The financial health chec# must "e performed for ever prospect to assess

hisEher true financial position and needs. 'ome of the advisors s#ip this vital step and the prospect ends up with a plan the do not appreciate and soon surrender or discontinue.

Some of the main 7roAlem in mar8eting the 7oliie are%

+arge amount of competition 1< plaers in the mar#et2

8@ | P a g e



+I& is considered a safer option

%ace competition from "an#s and mutual funds

!igh premium policies are difficult to mar#et

Incorrect perception a"out insurance

Interested prospects might have a lac# of time and postpone investments

&ustomers get defensive if ou cold call

'hort term plans are availa"le onl at large premium

'ome &ustomers do not have ris# appetite to invest in shares

&onsumers don6t want to underta#e medical examinations

+arge amount of documentation

&ustomers do not li#e their mone loc#ed up for man ears

+ac# of awareness a"out the unit lin#ed funds in the mar#et

N.$SIS INTERPRETTION

“A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA!

&E &RO!P OF &ENTS

ge No of re7on4ent

1;75<r 11

8; | P a g e



5<7=<r 58

=<78<r =A

("ove 8<r =<

ge grou7 of agent

Inter7retation

%rom the chart given a"ove we can clearl see that 8AK respondents sa that maximum

num"er of agents "elongs to age group of a"ove 8<ear and =<K respondents feel maximum

num"er of agents lie "etween age group of =<78<r whereas minimum num"er form the age

group "etween 1;75<ears.

'RENESS #ON& PEOP.E "O!T PRIBTE INS!RN+E +O#PNIES

OPERTIN& IN "T*IND

'RENESS No of Re7on4ent

Bes @1

)o 5>

8> | P a g e

11

2430

35

0

5

10

15

20

25

30

35

40

18-25yr 25-35yr 35-45yr Above 45yr

No.of respondents



Inter7retation

@1K of respondents sa that people of Talwandi 'a"o are aware of all the private insurance

plaers wor#ing in Talwandi 'a"o. /ut still 5>K respondents are against it.

(wareness among people a"out private insurance companies is not there. 'o it6s a grand

opportunit to tape the attention of those unaware people.

'imilar is the case in Talwandi 'a"o, !$%& '+ can target those unaware people to increase

sale.

*an#ing of insurance companies on the "asis of their

awareness among the pu"lic

<A | P a g e

A9areness a:%ut Pri#ate insurane %'&anies %&eratin7San7rur

71%

29%

Yes

No



Peo7le 7referre4 to ma4e in9etment in

<1 | P a g e

+I&

!$%&'+I I&I&I

Prudential

/ajaj(llianC

ax

)ewBor#



INBEST#ENT No of re7on4ent

/an# deposits 8A

utual %unds ;

Insurance Plans 15

P.9 $eposits =@

$o not invest 1

If other, specif 5

Inter7retation

aximum people invest in either "an#s or post offices3 as these people feel "an#s and P.9

deposits to "e the safest one. The prefer securit than increase of wealth. 9nl ;K invest in

mutual funds and 15K of respondents sa that people preferred insurance for investment.

This low rate of investment in insurance sector is "asicall misperception, lac# of awarenessand lac# of proper information a"out the insurance among the people.

PEOP.E T)E .IFE INS!RN+E S

<5 | P a g e



.ife inurane a No of re7on4ent

( tax saving plan <<

'aving schemes with good returns 5;

%inancial securit for famil 1@

Interpretation

(s the chart shows, <<K respondents are of the view that general pu"lic ta#e insurance as tax

saving plan. 5;K are of view that people purchase insurance "ecause it provides savings with

good returns and 1@K ta#e it as financial securit for famil.

)ew plans which provide all the a"ove "enefits such as -+IP can help in changing perception

of people from tax saving scheme to a good investment opportunit, which provide the "enefit

of ris# cover, tax saving and investment.

Plan in more Deman4

<= | P a g e



Plan No of re7on4ent

-nit +in# Insurance plans @1

4hole +ife Plans 8

&hildern Plan 1:

Pension Plan @

Term Plan 5

Inter7retation

;AK respondents are of the view that -+IP plans are more demanded " people "ecause it

provides tax "enefits, ris# coverage as well as good return. +east popular among them are

Pension plan, 4hole life plan and Term plan. These hold <K, 5K, 1K respectivel of the total

demand. *est of the 15K sa that maximum plan in demand is &hildren Plan.

Segment 7referre4 A6 7eo7le 5hile in9eting in !.IP

<8 | P a g e

71%

4%

16%7%

2%Unit in! "ns#r$ne

p&$ns

'(o&e ife )&$ns

*(i&d )&$n

)ension )&$n

+er, )&$n



Segment Re7on4ent 9ie5

1AAK eHuit 8;

1AAK de"t ;

/oth de"t and eHuit 88

Inter7retation

8;K of respondents are of view that people prefer 1AAK eHuit segment while investing in

-+IP plans "ecause the want to earn more profits in less time. 9n the other hand, onl ;K of

respondents are of view that people refer 1AAK de"t investment. 'uch categor includes retired

and old people and people with conservative nature. 4here as 88K of respondents feel that

people prefer to invest in the segment of "oth de"t and eHuit as these are "alanced people who

prefer "oth securit and profit.

mount of 7remium in9ete4 A6 7eo7le

<< | P a g e



mount of Premium (7a No of re7on4ent

*s 1A,AAA 75<,AAA =5*s 5<,AAA 7 <A,AAA =<*s <A,AAA 7 1,AA,AAA 5=*s 1,AA,AAA and a"ove 1A

Inter7retation

%rom the chart a"ove we find that, =<K of the respondents are of the view that annual premium

of *s 1A,AAA 75<,AAA are more preferred " people. =;K respondents give maximum

weightage to premium amount "etween *s 5<,AAA 7<A,AAA whereas =AK and 1AK respondents

feel *s <A,AAA71,AA,AAA and a"ove 1,AA,AAA are more preferred premium amounts.

!ence we can safel sa that !$%& +ife insurance would "e a"le to capture the mar#et "etter

if it introduced productsEplans where the annual premium should "e "etween

*s. 1A,AAA O <A,AAA p.a.

E@7ete4 inurane Auine to Ae 4one in Tal5an4i SaAo

E@7ete4 Auine No of re7on4ent

*s 1cr 7 1Acr 5A

<: | P a g e

s 10000

-25000s 25000

- 50000s 50000

- 100000s

100000

$nd $bove

32 35

23

10

0

10

20

30

40

No. of respondents



*s 1Acr 7 =Acr =<

*s =Acr 7 =<cr =<

*s =<cr and a"ove 1A

Inter7retation

5AK of respondents feel that in next financial ear the insurance industr will do the "usiness

"etween *s 171A cr, =<K sa *s 1A7=A cr, =<K feel amount of *s =A7=< cr as premium income

will "e earned " insurance sector, whereas onl 1AK are in favour of earning more than *s =<

cr in next financial ear.

9erage amount of Auine 4one A6 an agent in Tal5an4i SaAo

mount of Auine No of re7on4ent

+ess than *s 1A la#h ;5

*s 1A la#h 7 5A la#h 1A

*s 5A la#h 7 =A la#h <

<@ | P a g e



ore than *s =A la#h =

Inter7retation

1AAK respondents sa that an average agent does the "usiness less than *s 1A la#h in an ear.

9nl 1AK does the "usiness "etween *s 1A75A la#h and <K "etween *s 5A7=A la#h and =K

a"ove *s =A la#h.

'o, it can "e interpreted that the "usiness can "e increased to a greater extent onl "

increasing num"er of agents.

Thus it can "e said agents are main source of insurance "usiness.

#inimum numAer of 7oliie that an Ae eail6 ol4 A6 an agent

No of 7oliie No of re7on4ent

/elow 5A :<5A78A 1;8A7:A ;:A7;A <("ove ;A 8

<; | P a g e

82

105 3

0

10

20

30

40

50

60

70

80

90

100

ess t($n

s 10 &$!(

s 10 &$!(

- 20 &$!(

s 20 &$!(

- 30 &$!(

/ore t($n

s 30 &$!(

No. of respondents



Inter7retation

:<K of respondents sa that num"er of policies that can "e easil sold is "elow 5A. 1;K sa

that 5A78A policies can "e easil sold whereas ;K and <K respondents feel that minimum

num"er of policies which can "e easil sold is "etween 8A7:A and :A7;A respectivel. 9nl 8K

respondents feel that minimum policies which can "e easil sold is a"ove ;A.

+ategorie to 5hih ma@imum numAer of 7oliie are ol4

+ategorie of 7eo7le No of Re7on4ent

'ervice &lass =</usiness &lass 5A

(griculturists 5<

*etired people 1A

!ousewives <

9thers <

<> | P a g e



Inter7retation

("ove chart shows that maximum num"er of policies is sold to 'ervice class. Though most of

the population of Talwandi 'a"o "elongs to "usiness class "ut onl 5AK of respondents sa

that max. policies are sold to this class. /usiness class people can increased " providing

proper information a"out -+IP plan which covers investment, ris# coverage as well as tax

"enefits.

Talwandi 'a"o is surrounded " num"er of villages "ut still onl 5<K respondents sa that

agriculturist contri"ute maximum to our policies. There is a lot of opportunit in villages as

those people have enough mone to invest "ut the are not aware a"out insurance. Therefore

proper awareness, #nowledge and good advisor can easil tape the opportunit.

9nl 1AK respondents sa that categor to which max. policies are sold is retired people.

:A | P a g e



Fator that moti9ate 7eo7le to 7urhae Inurane 7oliie

Fator of moti9ation No of Re7on4ent

!igh *eturns 1A

(dvertisements 5

%amil *esponsi"ilit @

(dvice from friends and relatives <(gentsEadvisors @:

:1 | P a g e



Inter7retation

@:K Af respondents sa that most motivating factor that influences people to "u insurance

plan is advice from agents. It is ver clear from diagram that agents are "ac#"one of insurance

industr.

9nl 1AK respondents sa that high returns motivate max. to people whereas 18K respondents

feel that advertisements, famil responsi"ilit, friends and relatives advice motivate most of the

people to purchase insurance plan.

'a6 to inreae ale of inurane 7oliie at Tal5an4i SaAo

Sale of 7oliie No of Re7on4ent

(lternate channels =:

(wareness campaign 5<

+aunching innovative products 58Promos 1A

local ca"le (ds <

:5 | P a g e



Inter7retation

=:K of respondents sa that sale of insurance can "e increased through alternate channels such

as "an#3 corporate agencies etc. 5<K respondents feel it can "e increased " increasing

awareness among people of Talwandi 'a"o as local people are not full aware a"out all insurer

companies and their schemes. 'o, its an opportunit for !$%& '+ to target those unaware

people and increase its sale.

Dia49antage of an inurane 7lan

Dia49antage No of Re7on4ent

+apsation @

%ixed term 5;

!igh charges 8=

Poor aftersale services 55

:= | P a g e



Inter7retation

8=K respondents sa that the main disadvantage of insurance plans is high charges.

55K feel poor aftersale services, 5;K sa fixed term and @K sa lapsation are the main

disadvantage in insurance plans.

&harges can "e reduced and aftersale services can "e improved to remove its disadvantage.

FINDIN&

• aximum num"er of insurance agents "elongs to age group of a"ove 8<r. It is good

for insurance industr as the people a"ove 8<r of age are more responsi"le and sincereand thus there turnover is low.

• There is lac# of awareness among people a"out private insurance companies. (nd still

people prefer +I& as compared to other pvt. insurer companies.

:8 | P a g e



• Toda also people preferred to invest in /an#s and P.9 $eposits as the prefer certain

returns with less profit. /ut as the perception of people are changing, people started

investing in insurance sector also speciall in -+IP plans2.

•aximum people ta#e insurance as tax saving plan "ut now insurance provide other "enefits also as %inancial securit, ris# coverage and good returns.

• aximum plan which is more in demand is -nit +in# Insurance Plan as "ecause it

provides all "enefits as ris# coverage, financial securit, tax saving etc. and people

which want to earn more in less time prefer the segment of 1AAK eHuit.

• (verage amount of premium which is generall invested " people is "etween

*s 5<,AAA7*s <A,AAA. 'o, such plans should "e introduced whose annual premium

should "e "etween *s5<,AAA7=A,AAA.

• aximum num"ers of policies are sold to 'ervice class people and Percent of /usiness

class people is comparativel low.

Suggetion an4 Reommen4ation

+ife Insurance sector is one of the #e areas where enormous "usiness potential exists. In

India currentl the life insurance premium as a percentage of 0$P is =.1K per cent against

>.5K per cent in the -', "ut in the li"eraliCed scenario, the life insurance

:< | P a g e



premiums were projected to grow at around 1;K to 5AK from 5=-'S "illion in 5AA< to

5=>-'S "illion " 5A5A. Insurance "usiness share in the mar#et can "e increased "D7

U 4in through exceeding customer expectations 7 G-nder promise and over deliver should "ethe motto.

U 4in through product innovation and continuous product improvement.

U 4in through "etter and speed service and pro"lem solving.

U 4in through competitive pricing "ut do not sacrifice on value added

service.

U 4in through adaptation and customiCation.

U 4in through entering niche mar#ets.

U 4in through mar#et share 7 the three IGs 7 Institutions, Instruments and

Intermediaries are going to "e relevant.

&ompan will "e reHuired to not onl do "etter at all times3 it will also need

a strong and ro"ust strateg which would "e operationall more effective then that of their

competitors.

In todaGs mar#eting scenario in insurance, we need to move from selling insurance to

mar#eting an essential financial product.

.I#ITTIONS OF T*E ST!D$

This summer project has given me ample exposure to real mar#et situations and at the same

time it also gave me the scope to interact directl with the insurance agents and other

designated officers such as unit managers, sale manager etc.. !owever, in the course of m

project i faced certain difficulties, which prevented me from performing as i wished to. The

chief reasons that I could call limitations in m project can "e enumerated as "elowD

:: | P a g e



The stud was limited onl to the cit of Talwandi 'a"o onl.

The stud was conducted onl for a short period of time.

The stud is "ased on the assumption that information provided " the respondents is true.

+ac# of financial resources.

+onluion

The Insurance sector, after the opening up, provides greater opportunities. 'everal glo"al

plaers have emerged and the mar#et has changed significantl. In the changed scenario, the

:@ | P a g e



expectation is that the low Insurance premium as a percentage of 0$P prevailing in India will

improve and will offer "etter opportunities to the insurance plaers.

'ome of the findings of research areD7

aximum num"er of insurance agents "elongs to age group of a"ove 8<r. It is good for

insurance industr as the people a"ove 8<r of age are more responsi"le and sincere and

thus there turnover is low.

There is lac# of awareness among people a"out private insurance companies. (nd still

people prefer +I& as compared to other pvt. insurer companies.

Toda also people preferred to invest in /an#s and P.9 $eposits as the prefer certain

returns with less profit. /ut as the perception of people are changing, people started

investing in insurance sector also speciall in -+IP plans2.

aximum people ta#e insurance as tax saving plan "ut now insurance provide other

"enefits also as %inancial securit, ris# coverage and good returns.

aximum plan which is more in demand is -nit +in# Insurance Plan as "ecause it provides

all "enefits as ris# coverage, financial securit, tax saving etc. and people which want to

earn more in less time prefer the segment of 1AAK eHuit.

(verage amount of premium which is generall invested " people is "etween *s

5<,AAA7*s <A,AAA. 'o, such plans should "e introduced whose annual premium should "e

"etween *s5<,AAA7=A,AAA.

aximum num"ers of policies are sold to 'ervice class people and Percent of /usiness

class people is comparativel low.

(gents are most motivating factor who convinces the people to purchase the insurance

plan. 'o, more agents mean more sales.

People feel high charges as disadvantage of insurance. 'o, steps should "e ta#en to remove

such disadvantages as far as possi"le.

"I".IO&RP*$

:; | P a g e



"OO)S%

1 Business Research Methods

(willam g. Zikmund)

2. Marketing research

(Naresh Malhotra)

:> | P a g e



0ues$"oa"re

A SURVEY ON

1POTENTIAL OF INSURANCE BUSINESS2

H!ESTIONNIRE FOR &ENTS ND OT*ER INS!RN+E OFFI+ERS

(I EXPECT A FAIR RESPONSE FROM YOU)

1. (gents generall "elong to which age groupo 1;r to 5<r

o 5<r to =<r

o =<r to 8<r

o a"ove 8<r

5. (re people aware of all private insurance companies operating in Talwandi 'a"o

o Bes o )o

=. *an# the following insurance companies on the scale of 1 to < on the "asis of

their awareness among pu"lic

o I&I&I Prudential

o +I&

o !$%& '+I

o ax )ew Bor#

o /ajaj (llianC

8. In which of the following do the people invest

o /an# $eposits

o utual %unds

o Insurance Plans

o Post 9ffice $eposits

o $o not invest

o If other, specif UUUUUUUU

@A | P a g e



<. !ow people ta#e life insurance as,

o ( tax saving plan

o ( saving scheme with good return

o ( financial securit for the famil

o *is# coverage

:. 4hich of these plans are in more demand

o -nit lin# insurance plans

o 4hole life plans

o &hild plans

o ension plans

o Term Plan

@. 4hile investing in -+IP, which segment of investment fund do people prefer to

invest

o 1AAK eHuit

o 1AAK de"t

o /oth de"t and eHuit

;. (mount of premium generall invested " the people

o *s 1A,AAA O 5<AAA

o *s 5<,AAA 7 <AAAA

o *s <A,AAA.71,AA,AAA

o ("ove *s 1,AA,AAA

>. 4hat is the expected total insurance "usiness that can "e done in T!l!&i

S!= in next ear

@1 | P a g e



o *s 1cr to 1A cr

o *s 1Acr to =Acr

o *s =Acr to =< cr

o *s =< cr and a"ove

1A. (verage amount of "usiness done " an agent in Talwandi 'a"oo +ess Than *s 1A la#h

o *s 1A la#h to 5A la#h

o *s 5o la#h to =A la#h

o ore than *s =A la#h

11. inimum num"er of policies that can "e sold in a ear " an agent

o 1A to 8A

o 8A to :A

o :A to ;A

o ;A to 1AA

o ("ove 1AA

15. aximum num"ers of policies are sold to which categories of people in Talwandi

'a"o

o 'ervice class

o /usiness class

o (griculturist

o *etired people

o !ousewives

o 9thers

1=. %actors that motivate respondents to purchase insurance

o !igh returns

o (dvertisements

o %amil *esponsi"ilit

o (dvice from friends or

relatives.

o (gentsEadvisors

18. !ow the sale of policies insurance "usiness2 at Talwandi 'a"o can "e increased

o (lternate channels

o (wareness campaigns

o +aunching innovative

products

o Promos

@5 | P a g e



o +ocal ca"le ads

1<. (ccording to ou, what are the disadvantages in an insurance plan

o +apsation

o %ixed term

o !igh charges

o Poor aftersale services

1:. 'uggestion, if an UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

Peronal Detail%

Name%

&en4er%

o ale o %emale

ge grou7%

o 1; O 5< ears

o 5: O =< ears

o =: O 8> ears

o <A O :A ears

o ("ove :A ears

Profile of re7on4ent%

( t

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