S. NO. CONTENTS PAGE NO.

1. Title of the project……………………….……………….…….…....7

2. Introduction to topic…………………….……………………….…..8

3. Literature review………………………………………………….30

4. Objective of the study………………………...………..………….41

5. Research Methodology…….……………………..…..…………...42

6. Data Analysis and Interpretation……………………...….……....45

7. Findings of the Study…………………………………..………….59

8. Conclusion and Recommendations…………………..……….…..60

9. Limitation of the Study…………………………………………….62 10. Bibliography...…………...……………………….……..…………..63

11. Questionnaire……………………………………………………….64

1

TABLE OF CONTENTS

“CUSTOMER AWARENESS REGARDING MET LIFE INDIA INSURANCE COMPANY

IN SHRI NAGAR, J&K”

2

CHAPTER – 1

INTRODUCTION

Insurance is a contract between two parties whereby one party called insurer undertakes

in exchange for a fixed sum called premiums, to pay the other party called insured a fixed

amount of money on the happening of a certain event.”

Insurance is a protection against financial loss arising on the happening of an unexpected

event. Insurance companies collect premiums to provide for this protection. A loss is paid

out of the premiums collected from the insuring public and the Insurance Companies act

as trustees to the amount collected.

For Example, in a Life Policy, by paying a premium to the Insurer, the family of the

insured person receives a fixed compensation on the death of the insured.

Similarly, in car insurance, in the event of the car meeting with an accident, the insured

receives the compensation to the extent of damage.

It is a system by which the losses suffered by a few are spread over many, exposed to

similar risks. Insurance companies also earn investment profits, because they have the use

of the premium money from the time they receive it until the time they need it to pay

claims. This money is called the float. When the investments of float are successful they

may earn large profits, even if the insurance company pays out in claims every penny

received as premiums. In fact, most insurance companies pay out more money than they

receive in premiums. The excess amount that they pay to policyholders is the cost of

float. An insurance company will profit if they invest the money at a greater return than

their cost of float.

3

An insurance contract or policy will set out in detail the exact circumstances under which

a benefit payment will be made and the amount of the premiums.

Classification of insurance

The insurance industry in India can broadly classify in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the person

who is insured dies while the policy is in effect”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India

in 1850, whose shares were mainly held by the British. The first general insurance

company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was

stabilized in 1907. There emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General

Insurance Corporation (GIC) OF India undertook the post-nationalization general

insurance business.

WHY INSURANCE?

Insurance is desired to safeguard oneself and one’s family against Possible losses on

account of risks and perils it provides financial Compensation for the losses

suffered due to the happening of any unforeseen event.

By taking life insurance a person can have peace of mind and need not worry about the

financial consequences in case of any Untimely death.

4

Certain insurance contracts are also made compulsory by legislation. for examples, motor

vehicles act 1988, stipulates that a person driving a vehicle in public place should have a

valid insurance pertains to the environmental protection act, wherein a person using or

carrying hazardous substance (as defined in the act) must hold a valid public liability

(act) policy.

WHO PROVIDE INSURANCE?In India, insurance protection is made available through public sector insurance

companies, namely, life insurance Corporation of India (LIC) and other private

companies’ like- ICICI prudential, HDFC allianz bajaj, birla sun life, kotak mahindra etc.

HOW TO GET INSURANCE?The simplest procedure to obtain insurance is:

o Approach the insurance company directly.

o Through insurance agent of the concerned companies.

o Intermediaries.

WHAT IS THE OTHER ALTERNATIVE TO INSURANCE?

One alternative to insurance is to provide self-insurance i.e. the individual has to create a

fund to meet risk exigencies.

Specified trust has also tried to provide insurance by a scheme of self- insurance.

However, these are not very popular. The postal insurance coverage to all people.

There are many financial instruments, which advocate savings and provide future returns

at specific intervals such as the provident fund and pension plans. However, none of these

provide for life coverage.

5

WHAT ARE THE OTHER BENEFITS OF TAKING INSURANCE?

1. Tax relief:

a. Under section 80C of income tax act, a portion of premiums paid for life insurance

policies are deducted from tax liability. Similarly, exempted from premiums.

b. Money paid as claim including bonus under a life policy is exempted from payment

of Income tax.

Encourage Savings: An Insurance scheme encourages thrift among individuals. It

inculcates the habit of saving compulsorily, unlike other saving instrument, wherein the

saved money can be easily withdrawn.

1. The beneficiaries to an insurance claim amount are protected from the claims of

creditors by affecting a valid assignment.

2. For a policy taken under the MWP Act 1874, (Married women’s property act), a

trust is created for wife and children as beneficiaries.

3. Life Policies are accepted as security for a loan. They can also be surrendered

for meeting unexpected emergencies.

4. Based on the concept of sharing of losses, the society will benefit as catastrophic

losses are spread globally

1.1 GROWTH AND ORIGIN OF INSURANCE SECTOR.

Insurance in modern form originated in the Mediterranean during the 13th century. (The

earliest references to insurance- found in Babylonia, the Greeks and the Romans).

Marine insurance is the oldest form of insurance followed by life insurance and fire

insurance.

6

The history of life insurance in India dates back to 1818 when it was conceived as a

means to provide for English Widows.

A higher premium was charged for Indian lives than the non-Indian lives (considering to

be more riskier for coverage).

Oriental life Insurance Company was incorporated at Calcutta in 1818, followed by

Bombay Life Assurance Company in 1823 and Triton Insurance Company for General

Insurance in 1850. By 1938 there were 176 insurance companies.

Insurance regulation formally began in India through the passing of two acts

the Life Insurance companies Act of 1912 and

The Provident Fund Act of 1912.

However the first comprehensive legislation was introduced with the Insurance Act of

1938 that provided strict state control over insurance business in the country. The

business of India Insurance grew at a faster place as competition amongst the Indian

companies intensified. The decision of nationalization of life insurance business took

place in 1956 when 245 Indian and foreign insurance provident societies were first

merged and then nationalized.

It paved the way towards the establishment of one nationalized monopoly

corporation called Life Insurance Corporation (LIC). Nationalization was

justified on the grounds that it would create the much needed funds for rapid

industrialization and self-reliance in heavy industries.

General Insurance followed suit and 1968;

The Insurance Act was amended to allow for social control over the general

insurance business.

Subsequently in 1973, non-life insurance business was nationalized and the General

Insurance Business (Nationalization) Act, 1972 was promulgated. Till end of FY 1999-

7

2000, two state-run insurance companies, namely, Life Insurance Corporation (LIC) and

General Insurance Corporation (GIC) were the monopoly insurance providers in India.

Under GIC there were four subsidiaries

National Insurance Company Ltd.

Oriental Insurance Company Ltd.

New India Assurance Company Ltd.

United India Assurance Company Ltd.

In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private

sector investors. Foreign investment insurance market was also allowed with 26 percent

cap. GIC was converted into India's national reinsure from December, 2000 .All the

subsidiaries working under the GIC umbrella were restructured as independent insurance

companies.

1.2. A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

One of the important milestones in the life insurance in India is;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one company-

the Life Insurance Corporation of India (LIC). With the Insurance Regulatory and

Development Authority (IRDA) Bill 1999 paving the way for entry of private companies

into both life and general sectors there was bound to be new-found excitement- and new

success stories. Today, just three years since their entry, their cumulative share has

crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a

growth path.

8

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3%

in 2002-03; and life insurance has emerged as the dominant contributor to this growth.

The industry presented a huge opportunity. Life insurance penetration, for instance, was

at an abysmal 22% of the insurable population. However, private players have had to rise

to many challenges. They were faced with attitudinal barriers towards the category and

the perception that insurance was only a tax saving tool. Insurance per se had lost it basic

rationale: protection. It wasn’t surprising then that its potential lay frozen and

unexploited. The challenge for private insurance players was to change the established

category driver and get customers to evaluate life insurance as an investment-cum-

protection tool.

Life Insurance sector is one of the key areas where enormous business potential exists. In

India currently the life insurance premium as a percentage of GDP is 1.3 per cent against

5.2 per cent in the US, but in the liberalized scenario, the life insurance

premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99

to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life

premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-

10 and personal line non-life from Rs 4 billion to Rs 51 billion.

1.3. Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated

The market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.

Second, even if they were insured, they were treated as substandard lives and extra

premium was charged. Third, there were gross irregularities in the functioning of Life

insurance was nationalized in the year 1956, and then general insurance was nationalized

in the year 1972. In 1999, the private insurance companies were allowed back again into

insurance sector with maximum cap of 26 percent foreign holding.

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1818 The British introduce to India, with the establishment of the Oriental Life

Insurance Company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer

1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies’ act enacted to regulate the life

insurance business.

1938 The insurance act, which forms the basis for most current insurance laws,

replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and foreign

insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up

to draw up a blue print for insurance sector reforms.

1994 Malhotra Committee recommends re-entry of private players, autonomy at

PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market

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1.4 LIST OF LIFE INSURANCE COMPANY TILL DATE

S. No. Registration

Number

Date of

Reg.

Name of the Company

1. 101 23.10.2000 HDFC standard Life Insurance

Company Ltd

2. 104 15.11.2000 Max New York Life Insurance Co.

Ltd.

3. 105 24.11.2000 ICICI Prudential Life Insurance

Company Ltd.

4. 107 10.01.2001 Om Kotak Mahindra Life

Insurance Co. Ltd.

5. 109 31.01.2000 Birla Sum Life Insurance

Company Ltd.

6. 110 12.02.2001 Tata AIG Life Insurance

Company: td.

7. 111 30.03.2001 SBI Life Insurance Company

Limited

8. 114 02.08.2001 Ing Vysya Life Insurance

Company Private Limited

9. 116 03.08.2001 Allianz Bajaj Life Insurance

Company Ltd.

10. 117 06.08.2001 MetLife India Insurance Company

Pvt. Ltd.

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11. 121 03.01.2002 AMP SANMAR Assurance

Company Ltd.

12. 122 14.05.2002 Aviva Life Insurance Co. India

Pvt. Ltd.

1.5 LIFE ASSURANCE OFFERS

The term ordinary life assurance in used to describe a particular style of doing business

and is what many people will recognize as being life assurance. The other style is

industrial (home service) life assurance, which relates to smaller values and normally

involves collection of the premiums from the home of the assured person.

TERM ASSURANCEThis is simplest and oldest form of assurance and provides for payment of the sum

assured on death, provided death occurs within a specified term. Should the life assured

survive to the end of the term then the cover ceases and no money is payable.

WHOLE-LIFE ASSURANCEThe sum assured is payable on the death of the assured whenever it occurs. Premiums

are payable either throughout the life of the assured or, more normally, until retirement of

the assured at age 60 or 65. Even if premiums cease at, say age 60 the policy is still in

force, and should the person die at age 75 the policy would provide the benefits for his

beneficiaries.

ENDOWMENT ASSURANCEThe sum assured is payable in the event of death within a specified period of between 10

and 30 years. However, if the life assured survives until he end of this period (until the

‘maturity date’), the sum assured will also be paid.

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GROUP LIFE ASSURANCESEmployers sometimes arrange special terms for life assurance for their

employees, with the sum assured being payable in the event of death of an employee

during his term of service with the employer. Membership of the scheme is open to al

employees working on the inception date, or the anniversary date in future years.

KEY PERSON INSURANCEKey person insurance is a relatively recent form of cover taken out by a company on the

life of an employee who is vital to the continued profitability of the business. An example

would be a marketing executive who has valuable contacts in overseas countries or he

‘ideas’ person in a manufacturing company.

It is difficult to an access the sum assured needed in such circumstances, and careful

financial underwriting is required. However, the company will be able to affect cover for:

□ loss of profits; and

□ The costs of finding, securing and training a successor.

The most suitable type of contract is a term assurance, although whole- life policies

are sometimes used.

In addition to life assurance, key person permanent health insurance and critical illness

cover is also available.

INSURED PENSION SCHEMESThere are over 11 million people in pension a life assurance schemes, or benefiting from

them, in the United Kingdom.

These schemes provide a variety of benefits for members, but their main aim is to ensure

that some form of pension is available on retirement. Life assurance companies perform a

vital role in running such pension’s schemes. Those constructing a scheme may approach

a company to:

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□ organize the whole scheme, including installation and documentation,

receipt of premium contributions, investment of the funds and

administration of the pensions;

□ manage the fund of a pension scheme; or

□ Provide life assurance benefits for members and their widow (er) s who

dies before retirement.

ANNUITIES

An annuity is a method by which a person can receive a yearly sum in return for the

payment to an insurance company of a sum of money. This is not life assurance as we

have described it, but it is dealt with by life assurance companies and is based on

actuarial principle.

INVESTMENTS

We have already identified the life assurance industry as being of considerable size by

considering the number of policies in force and value of premiums paid each year. These

vast amounts of money are held by companies to meet future liabilities and are termed

life assurance funds.

These funds do not lay dormant waiting for claims to come in; they are invested to

provide income for the companies and so assist policyholders and shareholders. Not only

do these two groups benefits, but the country as a whole benefits.

Successful financial planning is like a three-legged stool. One leg is investment planning,

one is estate planning – and the third is insurance planning. Take one leg away, and your

ability to achieve your financial goals is likely to be severely threatened.

So, why is having the right level of insurance so important?

‘Insurance’ is basically a sharing advice. The losses to assets resulting from natural

calamities like fire, earthquake, accidents, etc. are met out of the common pool

14

contributed by large number of persons who are exposed to similar risks. This

contribution of many is used to pay the losses suffered by unfortunate few. However the

basic principle is that loss should occur as a result of natural calamities or unexpected

events, which are beyond the human control. Secondly insured person should not make

any gain out of insurance. It is natural to think of insurance of physical assets such as

motor car insurance or fire insurance but often we forget that creator of all these assets is

the human being whose efforts have gone a long way in building up the assets. In that

sense, human life is unique income-generating assets. Unlike the physical assets, which

decrease in value with passage of time, the individual becomes more experienced and

more matured as he advances in age. This raises his earning capacity and purpose of life

insurance is to protect the income in the event of his premature death. The individual

himself also needs financial security for the old age or on his becoming permanently

disabled when his income will stop. Insurance also has an element of saying in certain

cases.

Life insurance is chiefly a risk management tool, meant to offer financial protection to

your dependents in the unfortunate event of your death. If you are adequately insured,

your life insurance should enable to your dependents {spouse, children, and parents} to

maintain their current life style and pursue their goals---till such time as they are in a

position to set up an attractive income stream by themselves. That’s the basic purpose of

life insurance. But in India, as the most other developing markets, life insurance has

come to represent more than just risk cover. The best selling insurance products in the

market double as investment options and offer attractive tax breaks.

The General Insurance Corporation of India

Although efforts were made to maintain an open market for the general insurance

industry amending the Insurance Act of 1938 from time to time, malpractice escalated

beyond control. Thus, the general insurance industry was nationalized in 1972. The

General Insurance Corporation (GIC) was set up as a holding company. It had four

subsidiaries: New India, Oriental, United India and the National Insurance companies

15

(collectively known as the NOUN). It was understood that these companies would

compete with one another in the market. It did not happen. They were supposed to setup

their own investment portfolios. That did not happen either. It began to happen after29

years.

The GIC has a quarter of a million agents. It has more than 2,500 branches, 30million

individual and group insurance policies and assets of about USD 1,800 million at market

value (at the end of 1999). It has been suggested that the GIC should close 20-25% of its

nonviable branches (Patel, 2001). The GIC has so far been the holding company and re-

insurer for the state-run insurers. It reinsured about 20% of their business.

Two Committee Reports: One Known, One Unknown

Although Indian markets were privatized and opened up to foreign companies in a

number of sectors in 1991, insurance remained out of bounds on both counts. The

government wanted to proceed with caution. With pressure from the opposition, the

government (at the time, dominated by the Congress Party) decided to set up a committee

headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee

Liberalization of the Indian insurance market was recommended in a report released in

1994 by the Malhotra Committee, indicating that the market should be opened for

private-sector competition, and ultimately, foreign private-sector competition. It also

investigated the level of satisfaction of the customers of the LIC. Curiously, the level of

customer satisfaction seemed to be high. The union of the LIC made political capital out

of this finding.

The following are the purposes of the committee. (a) To suggest the structure of the

insurance industry, to assess the strengths and weaknesses of insurance companies in

terms of the objectives of creating an efficient and viable insurance industry, to have

wide coverage of insurance services, to have a variety of insurance products with a high

16

quality service, and to develop an effective instrument for mobilization of financial

resources for development. (b) To make recommendations for changing the structure of

the insurance industry, for changing the general policy framework etc. (c) To take

specific suggestions regarding LIC and GIC with a view to improve the functioning

ofLIC and GIC. (d) To make recommendations on regulation and supervision of the

insurance sector in India. (e) To make recommendations on the role and functioning of

surveyors, intermediaries like agents etc. in the insurance sector. (f) To make

recommendations on any other matter which are relevant for development of the

insurance industry in India?

The committee made a number of important and far-reaching recommendations.

(a) The LIC should be selective in the recruitment of LIC agents. Train these people after

the identification of training needs. (b) The committee suggested that the Federation of

Insurance Institute, Mumbai should start new courses and diploma courses for

intermediaries of the insurance sector. (c) The LIC should use an MBA specialized in

Marketing (a similar suggestion for the GIC subsidiaries).(c) It suggested that settlement

of claims were to be done within a specific time frame without delay. (d) The committee

has several recommendations on product pricing, vigilance, systems and procedures,

improving customer service and use of technology.(f) It also made a number of

recommendations to alter the existing structure of the LIC and the GIC. (g) The

committee insisted that the insurance companies should pay special attention to the rural

insurance business. (h) In the case of liberalization of the insurance sector the committee

made several recommendations, including entry to new players and the minimum capital

level requirements for such new players should be Rs. 100 crores(about USD 24 million).

However, a lower capital requirement could be considered for a co-operative sectors'

entry in the insurance business. (i) The committee suggested some norms relating to

promoters’ equity and equity capital by foreign companies, etc.

Mukherjee Committee

Immediately after the publication of the Malhotra Committee Report, a new committee

(called the Mukherjee Committee) was set up to make concrete plans for the

17

requirements of the newly formed insurance companies. Recommendations of the

Mukherjee Committee were never made public. But, from the information that filtered

out it became clear that the committee recommended the inclusion of certain ratios in

insurance company balance sheets to ensure transparency in accounting. But the Finance

Minister objected. He argued (probably on the advice of some of the potential entrants)

that it could affect the prospects of a developing insurance company.

Insurance Regulatory Act (1999)

After the report of the Malhotra Committee came out, changes in the insurance industry

appeared imminent. Unfortunately, instability in Central Government, changes in

insurance regulation could not pass through the parliament.

The dramatic climax came in 1999. On March 16, 1999, the Indian Cabinet approved an

Insurance Regulatory Authority (IRA) Bill that was designed to liberalize the insurance

sector. The bill was awaiting ratification by the Indian Parliament.

However, the BJP Government fell in April 1999. The deregulation was put on hold once

again.

An election was held in late 1999. A new BJP-led government came to power. On

December 7, 1999, the new government passed the Insurance Regulatory and

Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the

Life Insurance Corporation in 1956 and to the General Insurance Corporation in

1972.The authority created by the Act is now called IRDA. It has ten members. New

licenses are being given to private companies (see below). IRDA has separated out life,

non-life and reinsurance insurance businesses. Therefore, a company has to have separate

licenses for each line of business. Each license has its own capital requirements (around

USD24 million for life or non-life and USD48 million for reinsurance).

Some Details of the IRDA Bill

18

On July 14, 2000, the Chairman of the IRDA, Mr. N. Rangachari set forth a set of

regulations in an extraordinary issue of the Indian Gazette that detail of the regulation.

Regulations

The first covers the Insurance Advisory Committee that sets out the rules and regulation.

The second stipulates that the "Appointed Actuary" has to be a Fellow of the Actuarial

Society of India. Given that there has been a dearth of actuaries in India with the

qualification of a Fellow of the Actuarial Society of India, this becomes a requirement of

tall order. As a result, some companies have not been able to attract a qualified

Appointed Actuary (Dasgupta, 2001). The IRDA is also in the process of replacing the

Actuarial Society of India by a newly formed institution to be called the Chartered

Institute of Indian Actuaries (modeled after the Institute of Actuaries of

London).Curiously, for life insurers

the Appointed Actuary has to be an internal company employee, but he or she may be an

external consultant if the company happens to be anon-life insurance company.

Third, the Appointed Actuary would be responsible for reporting to the IRDA a detailed

account of the company.

Fourth, insurance agents should have at least a high school diploma along with training of

100 hours from a recognized institution. More than a dozen institutions have been

recognized by the IRDA for training insurance agents

Fifth, the IRDA has set up strict guidelines on asset and liability management of the

insurance companies along with solvency margin requirements. Initial margins are set

high (compared with developed countries). The margins vary with the lines of business

(for example, fire insurance has a lower margin than aviation insurance).

19

Sixth the disclosure requirements have been kept rather vague. This has been done

despite the recommendations to the contrary by the Mukherjee Committee

recommendations.

Seventh, all the insurers are forced to provide some coverage for the rural sector.

(1) In respect of a life insurer, (a) five percent in the first financial year; (b) seven

percent in the second financial year; (c) ten percent in the third financial year; (d) twelve

percent in the fourth financial year; (e) fifteen percent in the fifth year (of total policies

written direct in that year).

(2) In respect of a general insurer, (a) two percent in the first financial year; (b) three

percent in the second financial year; (c) five percent thereafter (of total gross premium

income written direct in that year).

Three days before the deadline that the IRDA had set upon itself (October 25, 2000), it

issued three companies with license papers:

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COMPANY OVERVIEW

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and

was incorporated as a joint venture between MetLife International Holdings, Inc., The

Jammu and Kashmvvvvir Bank, M. Pallonji and Co. Private Limited and other private

investors. MetLife is one of the fastest growing life insurance companies in the country.

It serves its customers by offering a range of innovative products to individuals and group

customers at more than 600 locations through its bank partners and company-owned

offices. MetLife has more than 50,000 Financial Advisors, who help customers achieve

peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the

Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the

number one life insurer in the United States (based on life insurance inforce), with over

140 years of experience and relationships with more than 90 of the top one hundred

FORTUNE 500® companies. The MetLife companies offer life insurance, annuities,

automobile and home insurance, retail banking and other financial services to individuals,

as well as group insurance, reinsurance and retirement and savings products and services

to corporations and other institutions.

Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial

services with operations throughout the United States and the Latin America, Europe, and

Asia Pacific regions.  Through its domestic and international subsidiaries and affiliates,

MetLife, Inc. reaches more than 70 million customers around the world and MetLife is

the largest life insurer in the United States (based on life insurance in-force).

The MetLife companies offer life insurance, annuities, auto and home insurance, retail

banking and other financial services to individuals, as well as group insurance and

retirement & savings products and services to corporations and other institutions.

21

Corporate Social Responsibility:

MetLife has always been committed to making a positive difference in the lives of the

individuals and communities. Today, that commitment drives volunteer work and

philanthropy across the globe. Working with non-profit organizations, MetLife supports

programs that provide young people with the skills they need to succeed in life and create

opportunities for people of all ages.

MetLife’s core values are personal responsibility, people count, partnership, integrity and

honesty, innovation and financial strength. These values also shape the responsibility to

the communities where the organization conducts its business

METLIFE HISTORY

For 140 years, MetLife has been insuring the lives of the people who depend on us.  Our

success is based on our long history of social responsibility, strong leadership, sound

investments, and innovative products and services

PRODUCT OF THE COMPANY:

Child Plan

o Met Bhavishya

o Met Junior Endowment

o Met Junior Money Back

Retirement Plain

o Met Pension-Par

Saving Plan

o Met Sukh

o Met Suvidha

22

o Met Saral

o Met 100

Protection Plan

o Met Suraksha

o Met Suraksha TROP

o Met Suraksha Plus

o Met Mortgage Protector Plus

Rural Plan

o Met Vishwas

o Met Suvidha-Rural

o Met Grameen Ashray

Investment Plan

o Met Smart Platinum

o Met Smart One

o Met Easy Super

Health Plan

o Met Health Care

Monthly Income Plan

o Met Monthly Income Plan

o Met Monthly Income Plan 7 Pay

WHY CHOOSE METLIFE?

We take great pride in the financial solutions that we offer. But that’s not all. Your

requirements and comfort are always our priority. That is why our interactions are

distinguished by our expertise, compassion and sensitivity.

23

The MetLife companies are one of the world’s largest and most respected financial

services organizations. For over 140 years, we've been helping people build financial

freedom. For some, this means protection for their families. For others, it means wealth

optimization or preservation. Combined with our innovation, this makes the MetLife

companies truly formidable players in the Life Insurance industry.

24

CHAPTER - 2

LITERATURE REVIEW

Insurance sector is a major contributor to the financial savings of the household sector in

the country, which are further channelized into various investment avenues. As per the

Annual Report 2003-04 of IRDA, contribution of insurance funds to the financial savings

was 14.9 per cent in 2003-04, viz 2.2 per cent of the GDP at current market price. The

premium underwritten has grown from Rs 45,677.57 crore in 2000-01 to Rs.83, 645.11

crore in 2003-04. After liberalization of insurance sector, the private insurers have

introduced innovative product and tailor made products which are absolutely sit to rural

population. Efforts at increasing consumer awareness and putting the regulatory

framework for protection of policyholder’s interest have been made both the industry and

regulatory level. Global market conditions have also resulted in driving down premium

rates/charges in respect of certain products and in improving the quality of services

offered by the insurer. Finally, insurance sector has been penetrating in India, thus the

proposed seminar has quite relevant to the society.

Indian insurance is on the threshold of deep and fundamental changes. Floodgates of

competition opened up by the privatization of insurance industry did throw a challenge to

the well-protected nationalized sector and it seems they have picked up the gauntlet. GIC,

both is trying to reposition them by having re-engineering done on the structure and

operations of their respective organizations.

It must be emphasized that the opening of the insurance market is far from a bad thing for

nationalized insurers. With a strong presence, a wide network and considerable brand

equity, they are in a good position to tap the very same segments profitably, while

improving their product and service offerings. The Indian company should Leverage

information technology to service large numbers of customers efficiently and bring down

overheads. Technology can complement or supplement distribution channels cost-

effectively. It can also help improve customer service levels considerably.

25

Besides this, other areas can be focused to grow and survive in the Indian Market

Understanding Customer needs: Use data warehousing, management and mining to

gauge the profitability and potential of various customer and product segments and

ensure effective cross selling. Understanding the customer better will allow insurance

companies to design appropriate and-customized products, determine pricing correctly

and increase profitability.

High-level Training and Development: Ensure high levels of training and development

not just for staff but also for agents and distribution organizations. Existing organizations

will have to train staff for better service and flexibility, while all companies will have to

train employees to cope with new products and an intensive use of information

technology.

Alliance&Tieup: The importance of alliances and tie-ups means that companies will

have to integrate related but separate providers into their systems to ensure seamless

delivery.

Agent Relationship: Build strong relationships with intermediaries such as agents.

Market Segmentation: They must segment the market carefully to arrive at the

appropriate products and pricing and should cater the needs of every individual.

Revamped Marketing Strategy: Worldwide, insurance products move along a

continuum from pure service products to pure commodity products then they could be

sold through the medical shops, groceries, novelty stores etc. Once commodization,

popularity and awareness of the products are attained then the products can move to

remote channels such as the telephone or direct mail. In the UK for example, retailer

Marks & Spencer now sells insurance products. At this point, buyers look for low price.

Brand loyalty could shift from the insurer to the seller.

Trust and Faith: Being government owned subsidiary, people of India have real faith

and are confident in parting their valuable savings with Nationalized Insurance

26

Companies. So, there is a big opportunity for the government companies to regain their

goodwill and reproduce their policies in the interest of the general public.

According to D.Jame in 2003:

A major issue is that of product innovation for rural contexts. Non-life general insurance

has products to suit crop, agricultural equipment, weather risks and so forth. However,

many of these products are on an experimental basis and not pure commercial products.

Rural India is a target market for many players in the financial sector, and insurance

companies are no exception. Public sector insurance companies boast that they have

already captured this area; the extent of penetration of the insurance majors into rural

India is not yet clear. Most of the policies are said to help the rural customers but there is

still no improvement in the rural situation. So, in this area there is a need of making the

policies which are realistic in the rural conditions and are made to meet the needs of the

customers in rural area.

According to M.Jean in 2005:

Indian general insurance companies in government sector are providing better policies to

the customers. Many of the policies are very popular among the customers. Policies like

Raj Rajeshwari Mahila Kalyan Yojana Policy, Bhagyashree Child welfare Policy,

National swasthya bima policy are a big fund of money generation for insurance

companies. These policies are fully supported by the government. In different states of

the country various type of policies are popular and they have a different percent of share

in overall income of Indian general insurance sector. All of these policies are successfully

implemented in all the states of the country. These policies are specially designed to

provide risk assurance to the policy holders. In union territories also these policies are

successfully implemented and working with a good profit.

These policies provide a helping hand to the person who faces problem due to some

unforeseen event or accident. Going through the marketing aspect the insurance company

has to prepare the product in determining its success in the market.

27

According to Soureli in 2004:

Questions whether “quality” is having as much impact in the financial services sector as

the evidence of use of quality management techniques in the UK suggests. Explores the

context within which “quality” is finding a place in financial services, and presents the

findings of a postal questionnaire survey concerned with the extent of usage and the

nature of the quality initiatives in the financial services sector.

According to Elena Kalotychoua and Sotiris IN 2007:

The present study delves into the bank–insurance phenomenon in Greece. The paper

explores the market-based practices surfacing through the bank–insurance interface and

delineates the possible theoretical corporate structures. A review of the various financial

ventures in the domestic market is provided aiming to unveil corporate patterns both in a

cross-venture and time series framework. As a result of this survey, the existence of de

jure limits versus de facto boundaries, as expanded by loopholes and avoidance activities,

is established. The "traditional" subsidiary model is complemented by a number of multi-

ventures as banks make inroads into the insurance business. The latter is associated with

the presence of multinational firms and foreign direct investment in the region. The

analysis is further extended by examining the drivers, motives and operational issues

pertinent to these financial conglomerates.

According to Prithviraj Dasgupta and Kasturi Sengupta IN 2002:

With the advent of the Internet, online processes are replacing conventional models in our

society. The greatest impact in online technology has been achieved by e-commerce. E-

commerce is attractive both to buyers and sellers as it reduces search costs for buyers and

inventory costs for sellers. In this paper we investigate the impact of e-commerce on the

insurance industry in India. The recent growth of Internet infrastructure and introduction

of economic reforms in the insurance sector have opened up the monopolistic Indian

insurance market to competition from foreign alliances. We study the evolving scenario

28

in the insurance industry in India and identify the features of online insurance that

improve the conventional insurance model and thus, makes it more attractive for the

Indian insurance industry to go online.

Health Policy Challenges for India: Private Health Insurance and Lessons from the International Experienceby Ajay Mahal

Over the last few decades, the Indian population has experienced great advances in its

health situation. For instance, life expectancy at birth increased from 50 years in 1970 to

an estimated 62 years in 1995 and is possibly even greater now. Infant mortality rates

have fallen as well, from 137 per 1,000 live births in 1970 to 69 per 1,000 live births in

1991 (World Bank 1995). These are substantial improvements, but much remains to be

done, relative to some its neighbors as well in terms of reducing differences in

performance across states and socioeconomic groups. For instance, China has done much

better, with its life expectancy at birth hovering around 70 years, and India’s neighbour,

Sri Lanka, has a life expectancy of nearly 73 years (World Bank 1997). Both countries

have much lower infant mortality rates as well, and in the case of Sri Lanka, less than

one-quarter that of India. Again, Kerala has infant mortality rates below those in China,

but states such as Madhya Pradesh, Orissa and Rajasthan have infant mortality rates of

well over 100 per 1,000 live births in rural areas (Dreze and Sen 1995; Mahal, Srivastava

and Sanan 2000). Similarly, in rural India, the infant mortality rates among the top two

income quintiles are nearly 34 - 50 per cent lower than the rates reported for the bottom

two quintiles.1 Substantial differences in life expectancies at birth are present across

states and socio-economic groupings (Dreze and Sen 1995). Another issue of concern is

the growing prevalence of chronic illness in the Indian population, such as obesity, heart

disease, diabetes, hypertension and the like. This has partly to do with changing dietary

habits, from coarse grain to energy rich diets of meat, milk products, and sugar. It has

also to do with an urban population growing at an average annual rate of growth of 3.2

per cent and sedentary lifestyles often characteristic. Author’s estimate based on NCAER

survey data.

29

(National Institute of Urban Affairs (NIUA) 2000, Popkin, Horton, Kim,

Mahal and Shuigao 2001).

Thus, the prevalence of diabetes rates were nearly three times highe among urban

residents than among rural residents in 1995-96, the prevalence of heart disease 70 per

cent higher, and the prevalence of hypertension more than double. With the urban

population expected to grow further in the future, the emergence of chronic illnesses will

have significant consequences on the financial costs of providing health care, as many

illnesses are extremely expensive to treat (Mahal 2000a).

Bull World Health Organ vol.80 no.8 Genebra Aug. 2002:

The findings have implications for community-based health insurance schemes in India

and elsewhere. Such schemes can protect poor households against the uncertain risk of

medical expenses. They can be implemented in areas where institutional capacity is too

weak to organize nationwide risk-pooling. Such schemes can cover poor people,

including people and households below the poverty line. A trade off exists between

maintaining the scheme's financial viability and protecting members against catastrophic

expenditures. To facilitate reimbursement, administration, particularly processing of

claims, should happen near claimants. Fine-tuning the design of a scheme is an ongoing

process — a system of monitoring and evaluation is vital.

Economic Reforms in India since 1991: Has Gradualism Worked? by Montek S. Ahluwalia*

India was a latecomer to economic reforms, embarking on the process in earnest only in

1991, in the wake of an exceptionally severe balance of payments crisis. The need for a

policy shift had become evident much earlier, as many countries in east Asia achieved

high growth and poverty reduction through policies which emphasized greater export

orientation and encouragement of the private sector. India took some steps in this

direction in the 1980s, but it was not until 1991 that the government signaled a systemic

shift to a more open economy with greater reliance upon market forces, a larger role for

30

the private sector including foreign investment, and a restructuring of the role of

government.

India’s economic performance in the post-reforms period has many positive features. The

average growth rate in the ten year period from 1992-93 to 2001-02 was around 6.0

percent, as shown in Table 1, which puts India among the fastest growing developing

countries in the 1990s. This growth record is only slightly better than the annual average

of 5.7 percent in the 1980s, but it can be argued that the 1980s growth was unsustainable,

fuelled by a buildup of external debt which culminated in the crisis of 1991. In sharp

contrast, growth in the 1990s was accompanied by remarkable external stability despite

the east Asian crisis. Poverty also declined significantly in the post-reform period, and at

a faster rate than in the 1980s according to some studies (as Ravallion and Datt discuss in

this issue).

However, the ten-year average growth performance hides the fact that while the economy

grew at an impressive 6.7 percent in the first five years after the reforms, it slowed down

to 5.4 percent in the next five years. India remained among the fastest growing

developing countries in the second sub-period because other developing countries also

slowed down after the east Asian crisis, but the annual growth of 5.4 percent was much

below the target of 7.5 percent which the government had set for the period. Inevitably,

this has led to some questioning about the effectiveness of the reforms.

Financial Sector Reforms in India: Policies and Performance Analysis By Rakesh Mohan:

As the economy grows and becomes more sophisticated, the banking sector has to

develop pari pasu in a manner that it supports and stimulates such growth. With

increasing global integration, the Indian banking system and financial system has as a

whole had to be strengthened so as to be able to compete. India has had more than a

decade of financial sector reforms during which there has been substantial transformation

and liberalisation of the whole financial system. It is, therefore, an appropriate time to

take stock and assess the efficacy of our approach. It is useful to evaluate how the

31

financial system has performed in an objective quantitative manner. This is important

because India’s path of reforms has been different from most other emerging market

economies: it has been a measured, gradual, cautious, and steady process, devoid of many

flourishes that could be observed in other countries. Until the beginning of the 1990s, the

state of the financial sector in India could be described as a classic example of “financial

repression” a la MacKinnon and Shaw. The sector was characterised, inter alia, by

administered interest rates, large pre-emption of resources by the authorities and

extensive micro-regulations directing the major portion of the flow of funds to and from

financial intermediaries. While the true health of financial intermediaries, most of them

public sector entities, was masked by relatively opaque accounting norms and limited

disclosure, there were general concerns about their viability. Insurance companies – both

life and non-life - were all publicly owned and offered very little product choice. In the

securities market, new equity issues were governed by a plethora of complex regulations

and extensive restrictions. There was very little transparency and depth in the secondary

market trading of such securities. Interest rates on government securities, the

predominant segment of fixed-income securities, were decided through administered fiat.

The market for such securities was a captive one where the players were mainly financial

intermediaries, who had to invest in government securities to fulfill high statutory reserve

requirements. There was little depth in the foreign exchange market as most such

transactions were governed by inflexible and low limits and also prior approval

requirements. Compartmentalization of activities of different types of financial

intermediaries eliminated the scope for competition among existing financial

intermediaries. In addition, strong entry barriers thwarted competition from new entrants.

The end result was low levels of competition, efficiency and productivity in the financial

sector, on the one hand, and severe credit constraints for the productive entities, on the

other, especially for those in the private sector. The other major drawback of this regime

was the scant attention that was placed on the financial health of the intermediaries. Their

capitalization levels were low. The lack of commercial considerations in credit planning

and weak recovery culture resulted in large accumulation of non-performing loans. This

32

had no impact on the confidence of depositors, however, because of government

ownership of banks and financial intermediaries.

N Ravichandran (Professor, IIMA): The economic reforms initiated by the Government

of India roughly about a decade ago have changed the landscape of several sectors of the

Indian economy. The Indian banking sector is no exception. This sector is going through

major changes as a consequence of economic reforms. The changes affect the ownership

pattern of banks, availability of funds, the cost of funds as well as opportunities to earn,

range of services (fee-based andfund-based), and management of priority sector lending.

As a consequence of liberalization in interest rates, banks are operating on reduced

spread. Development financial institutions would have a lesser impact on the Indian

economy. Consumerism is here to stay. Non-banking products like insurance would be a

tremendous opportunity. The economic reforms have also generated new and powerful

customers (huge Indian middle class) and new mix of players (public sector units, private

banks, and foreign banks). The emerging competition has generated new expectations

from the existing and the new customers. There is an urgent need to introduce new

products. Existing products need to be delivered in an innovative and cost-effective way

by taking full advantage of emerging technologies.

The new rules of competition require recognition of the importance of consumers and the

necessity to address the needs through innovative products supported by new technology.

As a consequence of competition, the managerial challenges include market

segmentation, product positioning, innovative delivery channels, cross-selling, etc. At an

organization level, elaborate systems need to be evolved to manage, assess, and contain

risk (including portfolio, client, and exchange rate).

The banks may have to reorient their resources in the form of reorganized branch

networks, reduced manpower, dramatic reduction in establishment cost, honing the skills

of the staff, and innovative ways of attracting talented managerial pool.The Government

of India and the Reserve Bank of India (RBI) on their part would strengthen the existing

33

norms in terms of governing and directing the functioning of these banks. Banks needs to

strengthen their audit function. They would be evaluated based on their performance in

the market place. It is in this context that we have invited the chief executive officers of

Indian banks to respond to the issues mentioned earlier.

K V Kamath (MD and CEO, ICICI Bank): It is said that the banking sector mirrors the

larger economy

– its linkages to all sectors make it a proxy for what is happening in the economy as a

whole. Indeed, the Indian banking sector today has the same sense of excitement and

opportunity that is evident in the Indian economy. The fundamental structural changes in

recent years have taught us many lessons. A combination of developments arising from

technological advancements and a liberalized marketplace

– Disintermediation, blurring of traditional roles and boundaries, emphasis on

shareholder value creation.

– has led to a transformation of the banking sector. The ongoing developments in Indian

industry and government and the integration of India with the global markets also offer

myriad opportunities to the banking sector. Companies and governments are increasingly

seeking high-quality banking services to improve their own operating efficiency.

Companies seek to offer better customer service and maximize shareholder returns and

governments seek to improve the quality of public services. The internationalization of

India offers banks the opportunity to service cross-border needs of Indian companies and

India-linked needs of multinationals. The growing Indian diaspora, with its strong home

country linkages, seeks a unique combination of Indian ethnicity and global standards

that offers a valuable niche opportunity for Indian banks. The biggest opportunity for the

Indian banking system today is the Indian consumer. Demographic shifts in terms of

income levels and cultural shifts in terms of lifestyle aspirations are changing the profile

of the Indian consumer. This is and will be a key driver of economic growth going

forward. The Indian consumer now seeks to fulfil his lifestyle aspirations at a younger

age with an optimal combination of equity and debt to finance consumption and asset

34

creation. This is leading to a growing demand for competitive, sophisticated retail

banking services. The consumer represents a market for a wide range of products and

services

– he needs a mortgage to finance his house; an auto loan for his car; a credit card for

ongoing purchases; a bank account; a long-term investment plan to finance his child’s

higher education; a pension plan for his retirement; a life insurance policy – the

possibilities are endless. And, this consumer does not live just in India’s top ten cities.

35

CHAPTER – 3

OBJECTIVES OF STUDY

The main objectives were:

1. To know the customer awareness about METLIFE insurance company.

2. To know the motive of buying an insurance policy.

3. To know the customer preference for different insurance company.

4. Customer opinion about public and private sector.

36

CHAPTER – 4

RESERCH METHODOLOGY

Introduction and Meaning

Research is a careful investigation or inquiry especially through search for new facts in

branch of knowledge or to establish relationship between effect and cause. And

especially marketing research that helps in problem solving in the marketing field,

demands critical analysis of the problems that are latent or potential in nature. Research

methodology, is considered a kin to clinical operations where in-depth diagnosis,

prescription and medicines are applied. Research methodology is the sketch and plans to

define a problem, appropriating research design, designing instrument for collection of

data, and data interpretations etc. In general, Research problem is the one that requires a

researcher to find out the best solution for the given problem that is to find out the course

of action, the action the objectives can be obtained optimally in the context of a given

environment.

Research Design

The research design of this survey will be considered as descriptive and explorative

research as the survey is directed towards eliciting public opinion towards METLIFE

INDIA INSURANCE. A well-structured questionnaire qualifying objectivity of the

survey is used to collect data from the respondents.

Sampling DesignUniverse for this project is Shrinagar City.

Sample sizeIn view of the constraints, sample size was restrained to 100.

37

Sampling unitAny person whether holding or not holding life insurance policy, in the age slab of 20 to

60 years and residing in the Shrinagar city.

Data Collection

To accomplish the objectivity of this survey, primary data will be needed; however,

secondary data of the MET LIFE and other companies will be used for literature review

and to have general inferences. To elicit data from the survey universe, Shrinagar-

structured questionnaire was administered. The secondary data required will be explored

from company information brochures and Internet.

38

CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

Keeping in mind the objectives of the study, the survey was being done and following

interpretation were being drawn.

1. Have you heard about Privatization in Life Insurance sector?

TABLE – 1

Criteria Frequency Percentage

Yes 76 76%

No 24 24%

39

Interpretation

Above figures showed that out of 100 respondents, 76 respondents are aware of

the private companies present in the insurance sector and rest of the respondent’s

i.e.24 is not aware of private insurance companies.

2. Have you heard about Private insurance company METLIFE India Life?

TABLE – 2

Criteria Frequency Percentage

Yes 74 74%

No 26 26%

[[

Interpretation

40

The above figure depicts that out of 100 respondents, 74 respondents are aware of

Met Life India Insurance and rest of the respondent’s i.e. 26 is not aware of Met

Life India Insurance.

3. From where did you come to know about Met Life India Insurance?

TABLE – 3

Criteria Frequency Percentage

Electronic media 63 63%

Print media 18 18%

Agent 15 15%

Others 4 4%

Interpretation

41

According to above data Electronic Media plays a vital role in the promotion of

MetLife India. As 63 of the respondents are aware through Electronic Media, 15

through Agents, 18 through Print Media and 4 through others like friends and

relatives.

4. Do you think services provided by Private sector will be better than Public sector

companies?

TABLE – 4

Criteria Frequency Percentage

Yes 68 68%

No 32 32%

Interpretation

42

The above figure depicts that 68 of the total respondents agree that private sector

was providing better services as compared to the public sector.

5. Do you have any Insurance Policy?

TABLE – 5

Criteria Frequency Percentage

Yes 72 72%

No 28 28%

Interpretation

43

The above evident shows that as most as 72 of the total respondents have insurance

policy to cover the risk of life and tax. This shows that most people are interested in

buying insurance policy.

6. From which company do you have Insurance Policy?

TABLE – 6

Criteria Frequency Percentage

LIC 52 52%

ICICI 21 21%MET LIFE 18 18%

HDFC standard 6 6%

OTHERS 3 3%

Interpretation

44

The above evident shows that out of the total respondents 52 dealing with LIC,

which is a public sector insurance company, 18 respondents were dealing with

METLIFE India and 21 dealing with ICICI ,and 6 respondents dealing with

HDFC ,3 respondents are dealing with other insurance companies which include

SBI, TATA AIG and Bajaj Allianz.

7. What according to you are the motives of buying Life Insurance Policy?

TABLE – 7

Criteria Frequency Percentage

TAX SAVING 50 52%

LIFE COVER 28 21%REGULAR SAVING 18 18%

OTHERS 4 6%

Interpretation

45

As the above figure showed that most of the respondents buy insurance policy for

the purpose of saving tax. 50 respondents are in favor of this. And 28respondents

are in favor of life cover and, 18 respondents are in favor of regular saving and

four respondents are in favor of other.

8. Do you have any plan to buy Insurance Policy in near future?

TABLE – 8

Criteria Frequency Percentage

Yes 70 70%

No 20 20%

Can’t say 10 10%

Interpretation

46

As the above figure depicts that mostly respondents are interested to buy insurance

policy in the future. 70 of the total respondents are in favor of this and rest 20

respondents don’t want any insurance 10 can’t say anything.

9. If you have any plan to buy an Insurance Policy, which policy would you prefers?

TABLE – 9

Criteria Frequency Percentage

PROTECTION PLAN 17 17%

CHILDREN PLAN 30 30%PENSION PLAN 45 45%

OTHERS 8 8%

Interpretation

47

As the above evident shows that as most as 30 of the total respondents prefer to

invest in children’s plan, 45 want to invest in pension plan, 17 in protection plan

and rest in others.

10. If you are not taking any insurance policy, please tell us the reasons why?

TABLE – 10

Criteria Frequency Percentage

We could not afford 62 62%

We don’t see any benefit

with the system

10 10%

No agent approach us 20 20%

Others 8 8%

48

Interpretation

As the evident shows that out of 100 respondents ,62 respondent could not afford

it, 20 says no agent approach us, and nearly 10 of the respondents don’t see any

benefit with the system, 8 says other reasons.

11. What is Customer Preference for different insurance companies?

TABLE – 11

Criteria Frequency Percentage

METLIFE INDIA

INSURANCE

10 10%

HDFC STANDARD LIFE

INSURANCE

15 15%

LIC 45 45%

ICICI 25 25%

OTHERS 5 5%

Interpretation

49

The chart show that out of 100 respondents, 15 respondents are better the MET

LIFE than other insurance companies, 15 respondents are like the HDFC, 45

respondents are like the LIC, 25 respondents are like ICICI and 5 respondents like

the other companies.

50

12. Do you agree that met life have a good brand value than other companies?

TABLE – 12

Criteria Frequency Percentage

Highly satisfied 18 18%

satisfied 35 35%

intermediate 23 23%

dissatisfied 15 15%

Very dissatisfied 9 9%

51

Interpretation

The chart show that out of 100 respondents 18 are highly satisfied, 35 are satisfied,

23 are average satisfied,15 people are dissatisfied and 9 are highly dissatisfied.

13 which attribute you consider while taking policy from MetLife or other

company?

TABLE – 13

Criteria Frequency Percentage

Brand value 35 35%

premium 21 21%

Security of investment 33 33%

services 11 11%

52

Interpretation

The chart show that out of 100 respondents, 35 respondents says that brand value is the

basis of taking insurance and 21 people says that premium is basis for taking insurance

and 11 people says they consider services for taking insurance and 33 considered security

of investment.

53

CHAPTER – 6

FINDINGS OF THE SURVEYS

From the finding of the research it is evident that the most of the people in

the Shrinagar are interested to take the pension plan as they are more concerned with

their future income then their present when they are working and earning. They are

more inclined towards the pension plans to make the life comfortable in their old age

and they will be independent and does not want to dependable on the next generation.

People aware about the Life Insurance sector but they know more

common players like Life Insurance Corporation (LIC) of India. It is found that less

people are aware in the Shrinagar about the MetLife as a service provider company in

the insurance sector also. They are aware but MetLife as an insurance provider does

not able to create the brand image of insurance company in the Shrinagar region. At

the same time it is a good sign for the MetLife that reary 76% people aware that

private sector players are also come in the insurance sector. In particular out of these

76% people are aware about the MetLife Company in the insurance sector in

Shrinagar. But from the finding it is established that 100% people are aware about the

LID as the oldest player.

This clearly comes out of the survey conducted that most of the people

come to know about MetLife from the Electronic Media only in Shrinagar. It is

evident that MetLife should go for other campaign alternative also to penetrate the

Local Market in the Shrinagar.

54

From the research it is evident the most of the time when think about the

saving, investment or insurance, the first thing which tax \saving which they will get

out of the policy / investment. They people are concerned about the insurance but at

the same time they are concerned that they will able to save the tax under sector soc.

It is evident from the findings that people are concerned about the public

and private sector but at the same time they are also concerned about. The services

they will get in eh return. In Shrinagar it comes out of the study that people thinks

that the private sector players like the MetLife will give better service then the LIC or

other public / Govt. Sector companies. People in Shrinagar think and experience that

private sector players give the better services through their best infrastructure.

In Shrinagar it comes out of the study that the brand image of MetLife is

intermediate, where the felling and awareness about the LIC is very strong. From the

study it is evident that in Shrinagar 35% people are making the decision about the

company brands value3 as the main concern.

The future of insurance companies in Shrinagar is very good, because it is

evident from the studies that 70% of the people wants to take the insurance policy in

the future. From the study it comes to the knowledge that LIC & ICICI are the strong

competitors of the MetLife in Shrinagar.

55

CHAPTER – 7

CONCLUSION AND RECOMMENDATIONS

METLIFE India is one of the largest life insurance companies in the world with

insurance. MetLife India is the challenge against the other insurance companies in the 21st

century with the emerging hopes and aspirations. MetLife India is a bless to the mankind

which has awakened many new hopes and aspirations for humankind a vision of a new,

just equitable and fair global order governed by a time tested value system based on a

noble human passion of love, compassion, tolerance and mutual understanding.

Globalization has opened new frontiers of technology, knowledge, communication and

information. MetLife India is a gift of globalization for the maintenance and development

of these frontiers throws before us a daunting challenge i.e. the utilization of these

facilities to create a brave new world in which a qualitative and a clear change between

yesterdays and tomorrows can easily perceived.

I have done a detailed analysis of insurance sector with special reference to MetLife India

as well as other private companies and concluded that most of the people preferred to

deal with nationalization insurance companies.

About the awareness regarding the products offered by MetLife India, I conclude that

most of the people are aware but they still need more publicity among the residents of the

city.

METLIFE India has set all the strategies and mission after proper vision and is achieving

the targets by working in co-operative and co-coordinated manner and giving the people

full services and facilities and making work easy.

56

So, I would like to conclude by saying that METLIFE India is a wonderful gift given to

the mankind in the new era for people development and maintenance of the world as well

as India.

To introduce innovative products offering a right mix of flexibility/risk/return

depending, which will suit the requirement of the customers and should target

specific niches, which are poorly served or not served at all.

Number of formalities should reduce, as customer feels irritated with lots of

formalities.

The company should also be deal with rural areas and with cities not having

authorized Pin code.

It is seen that till today a large portion of population is unaware of various

insurance plans, these include educated professionals also. Therefore, the Private

sector insurance companies should focus on improving awareness and the

increase the understanding about insurance plans thus increasing their scope of

sale.

Met Life India Insurance Company should lay more stress on advertisements,

both in print as well as in other media.

People of Met Life India Insurance Company should approach people who belong

to age group if 25-35 and 35-45 also people who belong to service –class as these

are the only once who are interested in purchase a life insurance policy in future.

57

CHAPTER – 8

LIMITATION OF THE STUDY

The report may be beneficial to company. But there are some limitations of the

study:-

The size of the research may not be substantial and it is limited to the Shrinagar.

There may be lack of time on the part of respondents.

There may be some bias information provide by company professionals.

As only single cities are surveyed or covered. It does not represent the overall view

of Indian Market.

It is very much possible that some of the respondents may have given the incorrect

information.

58

[

BIBLIOGRAPHY

Books1. Mishra, M.N., “Insurance Principles and Practices”

(S.Chand & Co., Delhi, 1999)

2. Kotler, Philip, “Marketing Management”

(Prentice Hall India, 2004)

3. Kothari, C.R., “Research Methodology: Methods & Techniques”

(Wishwa Publication, Delhi, 1990)

4. Magazines and Journal

Outlook—Insurance Special, June 12, 2005

5. The Charted Accountant Journal, June 16, 2005

Web sites

www.METLIFE.com

www.bimaonline.com

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QUESTIONNAIRE

Dear Sir/Madam

 

I am the student of MBA at doing a project “CUSTOMER AWARENESS

REGARDING MET LIFE INDIA INSURANCE COMPANY IN SHRI NAGAR,

J&K”. Please co-operate to fill this questionnaire.

1. Have you heard about Privatization in Life Insurance sector?

 

(a) Yes (b) No

2. Have you heard about Private insurance company METLIFE India Life?

 

(a) Yes (b) No

3. From where did you come to know about MET LIFE INDIA INSURANCE?

(a) Electronic Media (b) Print Media

(c) Agents (d) Others

4. Do you think services provided by Private sector will be better than Public sector

companies?

(a) Yes (b) No

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If Yes, Remarks________________________________________________

If No, Why ____________________________________________________

5. Do you have Insurance Policy?

(a) Yes (b) No

6. With which company do you have Insurance Policy?

____________________________________________

7. What according to you are the motives of buying Life Insurance Policy?

(a) Tax Saving (b) Life Cover

(c) Liquidity (d) Secure Investment

8. Do you have any plan to buy Insurance Policy in near future?

(a) Yes (b) No

9. If you have any plan to buy an Insurance Policy, which policy would you .prefer ?

(a) Saving Plan (b) Protection Plan

(c) Pension Plan (d) Children’s Plan

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10. If you are not taking any insurance policy, please tell us the reasons why?

(a) We could not afford

(b) We don’t see any benefit with the system

(c) We don’t want insurance

(d) We don’t understand how system works

11. From which company would you like to take insurance 1. If you have any plan to buy

an Insurance Policy, which policy would you .prefer ?

(a) METLIFE INDIA INSURANCE (b) HDFC STANDARD LIFE

INSURANCE

(c) LIC (d) ICICI

(e) OTHERS

12. What are Customer Preference for different insurance companies?

(a) METLIFE INDIA INSURANCE (b) HDFC STANDARD LIFE

INSURANCE

(c) LIC (d) TATA AIG

(e) KOTAK MAHINDRA

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13. Do you agree that met life have a good brand value than other companies?

(a) Yes (b) No

(c) Can’t say

14 which attribute you consider while taking policy from MetLife or other company?

(a) brand (b) premium

(c) services

d) Security

BACKGROUND DATA

1. Name _________________________________________

2. Sex: (a) Male (b) Female

3. Age: (a) Below 18 (b) 18-35

(c) 35-50 (d) Above 50

4. Education: (a) Under Graduate (b) Graduate

(C) Post Graduate

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5. Occupation: (a) Service (b) Profession

(c) Business (d) Others

6. Income: (a) Less than Rs. 50,000

(b) Rs. 50,000 to 1,50.000

(c) Rs. 1,50,000 to 3,00,000

(d) Rs. 3,00,000 & above

7. Address __________________________________________

__________________________________________

__________________________________________

8.Phone no. __________________________________________

*Thanks for your valuable time and co-operation*

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