A

PROJECT REPORT
ON
MARKET SEGMENTATION OF AVIVA LIFE
INSURANCE
Submitted in Partia Fu!iment "! t#e Re$uirement "! %a&#e"r "!
%u'ine'' Studie' (%%S)
UN*ER T+E GUI*ANCE OF, SU%MITTE* %-,
MRS. NEELOFER /ARG+AM FA/EL +A0 ALAM-AR
R" N". 112+ON23415
SESSION, 641426415
JAMIA MILLIA ISLAMIA UNIVERSIT-
NE7 *EL+I2114468
1
PREFACE
The health care system in India is characterized by multiple systems of medicine,
mixed ownership patterns and different kinds of delivery structures. Public sector
ownership is divided between central and state governments, municipal and
Panchayat local governments. Public health facilities include teaching hospitals,
secondary level hospitals, firstlevel referral hospitals !"#"s or rural hospitals$,
dispensaries% primary health centres !P#"s$, subcentres, and health posts. &lso
included are public facilities for selected occupational groups like organized work
force !'(I$, defence, government employees !")#($, railways, post and telegraph
and mines among others. The private sector !for profit and not for profit$ is the
dominant sector with *+ per cent of people seeking indoor care and around ,+ to -+
per cent of those seeking ambulatory care !or outpatient care$ from private health
facilities. .hile India has made significant gains in terms of health indicators
demographic, infrastructural and epidemiological, it continues to grapple with newer
challenges. /ot only have communicable diseases persisted over time but some of
them like malaria have also developed insecticideresistant vectors while others like
tuberculosis are becoming increasingly drug resistant. #I0 1 &I2( has of late
assumed extremely virulent proportions.
The 133+s have also seen an increase in mortality on account of noncommunicable
diseases arising as a result of lifestyle changes. The country is now in the midst of a
dual disease burden of communicable and no communicable diseases. This is coupled
with spiraling health costs, high financial burden on the poor and erosion in their
incomes. &round 456 of all people hospitalized in India in a single year fall below
the poverty line due to hospitalization !.orld 7ank, 4++-$. &n analysis of financing
of hospitalization shows that large proportion of people% especially those in the
bottom four income 8uintiles borrow money or sell assets to pay for hospitalization
!.orld 7ank, 4++-$ This situation exists in a scenario where health care is financed
through general tax revenue, community financing, out of pocket payment and social
and private health insurance schemes. India spends about 5.36 of )2P on health
!.#9, 4++-$. The per capita total expenditure on health in India is :(; 4<, of which
the per capita )overnment expenditure on health is :(; 5. #ence, it is seen that the
4
total health expenditure is around *6 of )2P, with breakdown of public expenditure
!+.36$% private expenditure !5.+6$. The private expenditure can be further classified
as outofpocket !==P$ expenditure !<.,6$ and employees1community financing
!+.56$. It is thus evident that public health investment has been comparatively low. In
fact as a percentage of )2P it has declined from 1.<6 in 133+ to +.36 as at present.
>urthermore, the central budgetary allocation for health !as a percentage of the total
"entral budget$ has been stagnant at 1.<6 while in the states it has declined from
-.+6 to *.*6.
The &uthority and the industry have been playing an active role in increasing
consumer awareness. Insurance companies in general and private insurance
companies in particular, are reaching out to untapped semiurban and rural areas
through advertisement campaigns and by offering products suitable to meet the
specific needs of the people in these segments. The insurers are increasingly
introducing innovative products to meet the specific needs of the prospective
policyholders. Products, imaginative marketing, and aggressive distribution enabled
fledgling private insurance companies to sign up Indian customers? faster belying
expectations at the time of opening up of the sector. &t the time of opening up of the
sector, life insurance was viewed as a tax saving device. =f late policyholders?
perspective is slowly changing towards taking insurance cover irrespective of tax
incentives. The insurable populace is looking for products which suit their specific
re8uirements. &s of now a variety of choices are available in the market meeting the
re8uirements of different crosssections of the society and across age groups. .ith the
registration of 7harti &xa @ife Insurance "o. @td., the number of companies operating
in the life insurance industry has increased to sixteen. The new entrant commenced
underwriting life premium in &ugust, 4++,. 7y end Aarch 4++-, there were sixteen
life and sixteen nonlife insurance companies !including the national reinsurer$.
&pollo 2B0, another standalone health insurance company and >uture )enerali
Insurance "o. @td. and >uture )enerali Indian @ife insurance "o. @td. were granted
"ertificate of 9egistration in 4++-+C and are in the process of commencing
operations.
<
ACKNO7LE*GEMENT
I have prepared this study paper for the Mar9et Se:mentati"n "! AVIVA Li!e
In'uran&e. Duite frankly, I have derived the contents and approach of this study
paper through discussions with colleagues who are also the students of this course as
well as with the help of various 7ooks, Aagazines and /ewspapers etc.
I would like to give my sincere thanks to a host of friends and the teachers who,
through their guidance, enthusiasm and counselling helped me enormously. &s I think
there will be always need of improvement. &part from this, I hope this study paper
would stimulate the need of thinking and discussion on the topics like this one.
FAZEL HAQ ALAMYAR
Roll No. 11-HON-6013
5
TA%LE OF CONTENTS
T";i& Name Pa:e N".
C#a;ter21, Intr"du&ti"n "! t#e C"m;an< 12=
C#a;ter26, Pr"!ie > Or:ani?ati"n Stru&ture "! t#e &"m;an< 1426@
C#a;ter25, ObAe&tiBe' "! t#e Stud< 68263
C#a;ter2@, Met#"d"":< Ad";ted 6C26=
C#a;ter28, C"n&e;tua *i'&u''i"n 542@8
C#a;ter23, Ana<'i' "! t#e Pr"bem under Stud< @3238
C#a;ter2C, Inter;eretati"n "! Re'ut' 3323D
C#a;ter2D, Su::e'ti"n'ERe&"mmendati"n' 3=2C4
Re!eren&e'E%ibi":ra;#< C12C6
AnneFure' C52CC
0ue'ti"nnaire
*
,
C+APTER21
INTRO*UCTION OF T+E COMPAN-
-
1.1. INTRO*UCTION OF T+E COMPAN-
&viva has presence in 4* countries and has 5+ 7ancassurance partners and *3,+++
employees, with over 5+ million customers worldwide. &vian has pioneered
7ancassurance in the country through its tieups with 44 leading private and
nationalised 7anks in the country. &viva also focuses on 7ancassurance worldwide
and has a proven track record of successful 7ancassurance relationships. &viva is a
leading 7ancassurer in countries such as >rance, Italy, (pain, &ustralia and /ew
Eealand.
In India, &viva has a long history dating back to 1C<5 and deals only in life insurance.
&t the time of nationalization it was the largest foreign insurer in India in terms of the
compensation paid by the )overnment of India. &viva F India is a Goint venture with
2abur. In accordance with the government regulations &viva holds a 4, per cent stake
in the Goint venture and the 2abur group holds the balance -5 per cent share. 2abur is
a professionally managed company, which was founded in 1CC5, is one of IndiaHs
oldest and largest groups of companies in the traditional healthcare products domain,
with consolidated annual turnover in excess of 9s 1,C33 crores. 2uring the fourth
8uarter, the company posted a 14.56 increase in its turnover from 9s *<.+1 crores to
9s *3.,+ crores
In order to go through the Gourney of @I" F Path of private sector insurance
companies to nationalize company to again private sector insurance companies is
given as belowI
Pat#
Private @ife Insurance "ompanies
/ationalization
Privatization of @ife Insurance (ector
C
1C-+ F13*,
@ife Insurance concept was accepted with almost 4*+
Private @ife Insurance "ompanies
13*,
Aerging of almost 4*+ Private (ector @ife Insurance
"ompanies in one nationalized
@ife Insurance "orporation of India
133* Proposal to privatize life insurance business
June 4+++ 9egistration process was notified
&ugust 4+++ &pplication was filed
=ctober 4+++ 1
st
license was issued with introduction of I92&
4++4
2uring the month of January, 11 @ife and /on@ife
Private Insurance license were issued
In order to elaborate the above path lets go through the history of @ife Insurance
(ector.
=n <
rd
2ecember 1,-+, seven earnest men of 7ombay with Gust seven rupees for
initial expenses gave shape to a plan of offering insurance to the public without the
risk of ruin and the 7ombay Autual @ife Insurance (ociety came into existence.
9ight up to the end of the 13
th
century, foreign insurance companies had an upper
hand in the matter of insurance business and they enGoyed mere monopoly and the
partiality were observed in the form that Indian lives were insured with 1+6 extra
premium as a common practice, at that time @ala #arikishan @al from @ahore was
called KThe /apoleon of Indian >inanceL as he was then called to launch the 7harat
Insurance "ompany at @ahore !1C3,$ in PunGab.
Prior to 1314, India had no legislation for regulating insurance. The @ife Insurance
"ompanies &ct 1314 and the Provident >und &ct 1314 were passed.
3
The Insurance &ct 13<C was the first comprehensive legislation governing not only
life but also nonlife branches of insurance to provide strict state control over
insurance business.
7ut after the introduction of Insurance &ct 13<C, the demand for nationalization of
@ife Insurance Industry was raised, there were so many reasons in order to nationalize
the insurance sector.
They areI
Policyholders will be provided cent percent security.
'xpenses will be reduced due to &bsence of duplication, wasteful competition
7etter service due to absence of profit motive.
The funds will be available for nation building activities.
Insurance is servicing sector and so that it should be in the hands of government
only.
&bove are few but strong reasons, which have contributed towards nationalization of
insurance sector, and then after in the year 13*,, all insurance companies were
merged in to one and @ife Insurance "orporation of India came into existence.
Till the year 4+14, @I" of India was the only insurance sector in economic market
with everincreasing growth rate and market share with the capacity to earn high rate
of profit and thus profitability. In spite of all these merits of @I", the overall status of
insurance sector was not so satisfactory.
1+
%u'ine'' !i:ure be!"re t#e intr"du&ti"n "! IR*A
Population 1.++ 7illion
Insurable Population +.<, 7illion
/o. =f insured individuals +.+C 7illion
Potential uninsured individuals +.4C 7illion
/ew 7usiness premium +.,, 7illion
&bove stated figures clearly shows that from 1 7illion population of India, almost
+.4C 7illion population was uninsured. &gain the existing government unit did not
properly meet the emerging segments like retirement, disability. Aoreover, the
government wanted 4*6 p.a. growth rate in new business premium from insurance
sector. &ll these factors combine forced the government to take the decision about the
privatization of insurance sector.
In order to increase the business activities, the introduction of I92& was made by
)overnment. Thus, I92& !Insurance 9egulatory and 2evelopment &uthority$
witnessed the existence power to coordinate regular and control the insurance
business.
11
PriBate In'urer' in Indian In'uran&e Mar9et
Re:i'trati"n N". *ate "! Re:i'trati"n Name "! t#e C"m;an<
1+1 4<.1+.4+++ #2>" (tandard @ife
1+5 1*.11.4+++ Aax /ew Mork @ife
1+* 45.11.4+++ I"I"I Prudential @ife
1+- 1+.+1.4++1 =m Botak Aahindra @ife
1+3 <1.+1.4++1 7irla (un @ife Insurance
11+ 14.+4.4++1 T&T& &I) @ife Insurance
111 <+.+<.4++1 (7I @ife Insurance
&s per the figure available with I92& reports for the period ended in &ugust 4++3,
the 1< private players have grabbed nearly 4,6 market share from @I" in terms of
premium underwritten as against 1-.-+6 in &ugust 4++C+3L The list of insurer with
premium underwritten, investment and their market share have been presented in
table.
Table shows that the life insurance market has collected 9s. 1,,,+5cr as a fresh
premium. It grew about 4.C times bigger than he < players put together in terms of
premium collection. It is still growing at the rate 4,6 per annum. It is relevant to that
the market share by them. =ut of 1< Pvt. Players, I"I"I prudential has leading Pvt.
Player in the @ife insurance, invested rs.,4* cr which is the highest investments
among the Private players and captured first position with -.116 of the market share.
(econdly, Aax /ew Mork life has invested 9s. <+* cr and had failed to capture the
second position in terms of market share and was satisfied with only 1.<46 >ollowed
by #2>" standard @ife had invested 9s. 4** cr and 4.3,6 of the market share was
14
captured and stood third position interims of investments and capturing market share.
&llianz 7aGaG has invested 9s. 4*+ cr and stands fourth in terms of investment but
captured second position with ,.146 of the market share. This indicates that there is
no relation between investment and ac8uiring market share and mere capital is not
alone playing any significant role in terms of capturing market share. There may be
some other variables likeI !a$ innovative schemes, !b$ brand loyalty, !c$ professional
outlook, !d$ transference in their transactions, etc. It can be noticed that the capital is
not playing any attaching, kindly significant role in terms of premium collection and
capturing market share. It seems to be 7aGaG &llianz would occupy the first position in
near future in terms of market share as well as annual growth rate.
"hart shows that. &mong private players, the I"I"I prudential has captured the 4C6
of the market share up to 2ecember 4++3, followed by &llianz 7aGaG with 4<6 and
#2>" (tandard @ife with 116 T&T& &ig life and 7irla (unlife with -6 each and
remaining other players have captured less than *6 of market share.
"hart shows that the annual growth rate of the private life insurance players from
/ovember 4++C+3. it is interesting to note that &llianz 7aGaG has achived 4,5.+36
annual growth rate in terms of premium collection and the fastest growing insurance
players, followed by #2>" (tandard with 15<.16 and Aetlife with 1<,.5*6, and
1<
remaining other players have doubled their premium in a span of one year, whereas
7irla (unlife and (7I life have failed to collect the premium consistently and
registered negative growth rates -.3<6 and 4.5C6 respectively. (urprisingly, I"I"I
Prudential "o. has not been retrained in their leading position in 4++3.
The market share of the @I" has been declining since 4+++, after opening up of the
sector to private companies, @I"?s higher market share in the number of policies sold
compared with premium income, so it is to be inferred that the private players are
cornering a larger share of high premium policies. >urther all policymakers are
expected that, insurance business will take wings under banc assurance but despite the
belief (7I @ife was registered negative 4.5C6 annual growth rate in corresponding
period. It is need to be viewed serious by the 97I and I92& authorities.
Insurance may be described as a social device to reduce or eliminate risk of life and
property. :nder the plan of insurance, a large number of people associate themselves
by sharing risk, attached to individual. The risk, which can be insured against include
fire, the peril of sea, death, incident, N burglary. &ny risk contingent upon these may
be insured against at a premium commensurate with the risk involved. Insurance is
actually a contract between 4 parties whereby one party called insurer undertakes in
exchange for a fixed sum called premium to pay the other party happening of a certain
event.
15
Insurance is a contract whereby, in return for the payment of premium by the insured,
the insurers pay the financial losses suffered by the insured as a result of the
occurrence of unforeseen events. .ith the help of insurance, large number of people
exposed to a similar risk makes contributions to a common fund out of which the
losses suffered by the unfortunate few, due to accidental events, are made good.
This is the current scenario of the global Insurance Industry and now, let us looks at
the basic functions of insurance. .hile conceding that insurance is a risktransfer tool,
corporate should be made to understand that it does not suffice merely to transfer the
risk but they have to participate in the effort of loss prevention. /ew but they have to
participate in the effort of loss prevention. /ew techni8ues and technology have to be
adopted from time to time in order to improve performance and this has special
significance to the order to improve performance and this has special significance to
the Indian Insurance Industry. The Indian insurance industry has always suffered from
drawbacks like lack of proper understanding of the purpose of insurance, lopsided
growth etc. .ith the opening up of the industry, it is hoped that the new entrants with
their better channels would spread the real message of insurance, leading to a dynamic
growth. 'mphasis should be on finding new technological avenues, although it has
been observed world over that for selling insurance, an eyetoeye contact is essential.
Internet can be used for better servicing which would eventually, lead to business
development. .ith the entry of foreign companies into the insurance arena, a fresh
life has been inducted and there is a great deal of optimism in the air that the market
would automatically create a vibrant competition leading to the customer being the
ultimate winner.
1*
C+APTERG6
PROFILE > ORGANI/ATION STRUCTURE
OF T+E COMPAN-
1,
6.1 PROFILE > ORGANI/ATION STRUCTURE OF T+E
COMPAN-
AVIVA LIFE INSURANCE
&viva is :B?s largest and the world?s fifth largest insurance )roup. It is one of the
leading providers of life and pensions products to 'urope and has substantial
businesses elsewhere around the world. .ith a history dating back to 1,3,, &viva has
a 5* millioncustomer base with presence in 4- countries. It has O<*3 billion of assets
under management.
In India, &viva has a long history dating back to 1C<5. &t the time of nationalisation it
was the largest foreign insurer in India in terms of the compensation paid by the
)overnment of India. &viva was also the first foreign insurance company in India to
set up its representative office in 133*.
In India, &viva has a Goint venture with 2abur, one of IndiaHs oldest, and largest )roup
of companies. & professionally managed company, 2abur is the countryHs leading
producer of traditional healthcare products.
In accordance with the government regulations &viva holds a 4, per cent stake in the
Goint venture and the 2abur group holds the balance -5 per cent share.
.ith a strong sales force of over <*,+++ >inancial Planning &dvisers !>P&s$, &viva
has initiated an innovative and differentiated sales approach to the business. Through
the K>inancial #ealth "heckL !>#"$ &viva?s sales force has been able to establish its
credibility in the market. The >#" is a free service administered by the >P&s for a
needbased analysis of the customer?s longterm savings and insurance needs.
1-
2epending on the life stage and earnings of the customer, the >#" assesses and
recommends the right insurance product for them.
&viva pioneered the concept of 7anc assurance in India, and has leveraged its global
expertise in 7anc assurance successfully in India. "urrently, &viva has 7anc
assurance tieups with &7/ &mro 7ank, The @akshmi 0ilas 7ank @td., PunGab N
(ind 7ank, Indus land 7ank, "ooperative 7anks and 9egional 9ural 7anks.
.hen &viva entered the market, most companies were offering traditional life
products. &viva started by offering the more modern :nit @inked and :nitised .ith
Profit products to the customers, creating a uni8ue differentiation. &viva?s products
have been designed in a manner to provide customers flexibility, transparency and
value for money. It has been among the first companies to introduce the more modern
:nit @inked products in the market. Its products includeI whole life !@ifelong and
@ifeline$, endowment !@ifesaver, 'asy @ife Plus, @ifesaver Plus and$, child policy
!&viva @ittle Aaster$ single premium !@ife 7ond and @ife 7ond Plus$, Pension
!Pension Plus and (ecure Pension$, Term !@ife (hield$, fixed term protection plan
!>reedom @ife Plan$, health insurance !&viva #ealth Plus$, traditional endowment
!2han 0riddhi, &viva Aoney 7ack$ and a tax efficient investment plan with limited
premium payment term !@ife7ond*$. &viva products are modern and contemporary
unitised products that offer uni8ue customer benefits like flexibility to choose cover
levels, indexation and partial withdrawals.
&viva?s >und management operation is one of its key differentiators. =perating from
Aumbai, &viva has an experienced team of fund managers and the range of fund
options includes :nitised .ithProfits >und and seven :nit @inked fundsI Protector
>und, (ecure >und, 7alanced >und, )rowth >und, 'nhancer >und, Index >und and
7ond >und
Vi'i"n
ABiBa 2 where exceeding expectations through innovative solutions is PourP way of
life. This is the compelling vision that &viva India has created through the active
contribution of its employees. These lines not only define the way we live and work
but also serve as a reminder to deliver the best to our customers, shareholders,
colleagues, partners N employees at all times. 'mbedded in this vision are the core
1C
values of Integrity, "ustomer centricity, Passion for winning, Innovation and
'mpowered team that we have collectively defined and committed to working
towards.
&viva @ife Insurance India is a private insurance company formed from collaboration
between the &viva insurance group of :B and the 2abur group, one of IndiaHs oldest
and top producers of traditional health care products. &vivaHs products are meant to
provide customers flexibility, transparency and value for money.
+i't"r< 2
&viva insurance group in :B with a history dating back to 1,3,, today stands as one
of the leading provider of life and pension products to 'urope and other parts of the
world. The history of &viva @ife Insurance India starts at 1C<5 during nationalization
when &viva was the largest foreign insurance group in terms of the compensation paid
by the Indian )overnment. In 133* &viva was the first foreign insurance company to
start its representative office in India. &t present in &viva @ife Insurance India, the
&viva group is a 4,6 share holder and the 2abur group holds -56 shares in the Goint
venture.
Pr":ramme #i:#i:#t'
&viva @ife Insurance India has 5+ 7ranches in India, including rural branches
supporting its distribution network. .ith over 4-,+++ >inancial Planning &dvisers
!>P&s$ and the >inancial #ealth "heck !>#"$ programme it has been successful in
setting up its position in the Indian market. The >#" is a free service administered by
the >P&s which analyses the customerHs longterm savings and insurance needs and
depending on the life stage and earnings of the customer it selects the proper
insurance product for them.
&viva @ife Insurance India initiated the concept of 7anc assurance in India and at
present it has 7anc assurance tieups with &7/ &mro 7ank, &merican 'xpress 7ank,
"anara 7ank, "enturion 7ank of PunGab, The @akshmi 0ilas 7ank @td. and PunGab N
(ind 7ank, 11 "ooperative 7anks in )uGarat, 9aGasthan, Jammu N Bashmir, 7ihar,
.est 7engal, &ndhra Pradesh and Aaharashtra and one regional 7ank in (ikkim. This
has helped to distribute &viva products in nearly <-C towns and cities across India.
13
&viva @ife Insurance India offers more modern :nit @inked and :nitized with Profit
money products to the customers. >ollowing the I92& guidelines, with effect from 1
July 4++,, these unit linked products have been modified. The products of &viva
insurance group of India areI
@ifelong
@ifesaver or 'asy @ife Plus
Moung &chiever
@ife 7ond and @ife 7ond Plus
Pension Plus
@ife (hield
>reedom @ife Plan
@ife7ond*
The fund management an operation of &viva @ife Insurance India is controlled from
Aumbai and the fund options includes :nitized .ithProfits >und and four :nit
@inked fundsI
Protector >und The fund comprises of debt securities in the range of ,+1++6,
e8uities in the range of +4+6 and money market and cash in the range of +4+6.
(ecure >und The fund comprises of debt securities in the range of *+1++6,
e8uities in the range of +4+6 and money market and cash in the range of +4+6.
7alanced >und The fund comprises of debt securities in the range of *+3+6,
e8uities in the range of +5*6 and money market and cash in the range of +1+6.
)rowth >und The fund will comprise of debt securities in the range of +*+6,
e8uities in the range of +C*6 and money market and cash in the range of +4+6.
This fund provides investment security to the capital of the customers.
Through their association with 7asics !a micro financial institution$ and other /)=s,
&viva @ife Insurance India have been able to reach out to those underprivileged who
had no access to insurances till day. In &viva @ife Insurance India, thus, by
combining protection and long term savings the customers can safeguard and provide
life products for their family with their changing needs.
Pr"du&t P"rt!"i" "! AVIVA Li!e In'uran&e
Investments in life insurance provide the dual benefit of saving for your future
financial re8uirements as well as financial security for your dependants in case of
4+
your death. :nlike other investment instruments !term deposits, mutual funds and
stock market securities etc.$, the nature of life insurance products is such that they are
designed for the long term !1+ years or more$ and provide the best results when they
are continued for their full term.
The right investment strategies wonHt Gust help you plan for a more comfortable
tomorrow they will help you get Bal Par "ontrol. &t &viva, life insurance plans are
created keeping in mind your changing needs and your familyHs. =ur life insurance
plans are designed to provide you with flexible options that meet both protection and
savings needs.
&viva offer our customers a full range of transparent, flexible and value for money
products that include whole life !@ifelong, &viva @ifeline$, endowment !@ifesaver,
(ave )uard, 'asy @ife Plus, @ifesaver Plus, @ifesaver (uper ,&viva (achin "entury$
and traditional endowment !2han 0riddhi, &viva Aoney back$, child plan !&viva
@ittle Aaster$ single premium !@ife 7ond Plus$, pension !Pension Plus, (ecure
Pension$, term !@ife (hield$, fixed term protection cum savings plan !>reedom @ife
Plan$, health plan !&viva #ealth Plus$,with profits plan !&viva Aoney 7ack$ and a
shortpay recurring premium investment cum protection plan !@ife7ond*$. &viva
products are modern and contemporary unitized products that offer uni8ue customer
benefits like flexibility to choose cover levels, indexation, partial withdrawals and
uni8ue investment options like a (ystematic Transfer Plan to get the benefit of
systematic investments and an &utomatic &sset &llocation Plan which changes the
risk structure on your investments as your age increases. .e also have < rural plans
which are a low cost term plan F &mar (uraksha and 4 endowments F &nmol
(uraksha and Jana (uraksha. .e also offer you a choice of investment options. Mou
can choose between our :nit @inked >und and our .ith Profits >und !only on
Pension Plus$.
The .ith Profits >und guarantees that the selling price of the units will never fall. The
unit value of this fund is increased by crediting bonuses on a daily compounding
basis. The fund provides investment security to your capital. The :nit @inked >unds
are designed to provide relatively more progressive capital growth wherein you
automatically receive the benefit related to the investment performance of the fund.
41
:nder our :nit@inked Insurance Plans we offer a choice of :nit@inked >und
optionsI
%"nd Fund, To generate a steady income through investment in high 8uality fixed
income securities. The fund comprises of 1++6 debt and money market and no
e8uities.
Pr"te&t"r Fund, Progressive returns on your investment by investing higher
element of assets in debt securities, with minimum exposure to e8uities. The fund
comprises of debt securities in the range of ,+1++6, e8uities in the range of +4+6
and money market and cash in the range of +5+6.
Se&ure Fund, The investment obGective of this fund is to provide progressive
return on your investment with a minimum guarantee on maturity. The fund comprises
of debt securities in the range of *+1++6, e8uities in the range of +4+6 and money
market and cash in the range of +5+6. Initially the e8uity exposure will be 1+ 6.
%aan&ed Fund, The investment obGective of this fund is to provide capital growth
by availing opportunities in debt and e8uity markets and providing a good balance
between risk and return. The fund comprises of debt securities in the range of *+
3+6, e8uities in the range of +5*6 and money market and cash in the range of +
5+6.
Gr"Ht# Fund, The investment obGective of this fund is to provide high capital
growth by investing higher element of assets in the e8uity market. The fund will
comprise of debt securities in the range of +*+6, e8uities in the range of <+C*6 and
money market and cash in the range of +5+6.
IndeF Fund, To generate returns in line with the stock market index F /I>TM. The
fund comprises of debt and money market securities in the range of +4+6 and
e8uities in the range of C+1++6.
En#an&er Fund, To provide aggressive, long term capital growth with high e8uity
exposure. The fund will comprise of debt and money market in the range of +5+6
and e8uities in the range of ,+1++6.
44
&viva also offers a whole range of group insurance and savings products catering to
pensions, gratuities, credit protection and pure protection. .e have a dedicated team
that works with corporate across the country.
IndiBidua
&t &viva we are dedicated to helping you make the most out of your life, and that
includes all your savings and protection re8uirements. .e are here when you need to
make informed financial decisions for you, and for your loved ones.
&viva offer products under the following six categories for individuals
1. 7#"e Li!e F &s the name suggests, these products continue throughout your life
and pay out to your dependants only upon your death. These are useful if you want to
create a financial corpus for your family.
@ife @ong
&viva @ifeline
6. Pure Term F Pure term products are designed to provide your dependants
financial protection at a low cost in case of your death.
@ife (hield
5. End"Hment' F 'ndowment products are meant to help you create a corpus to
meet financial needs during your lifetime. These products also provide a financial
cover in case of death
'asy @ife Plus
@ife 7ond
@ifesaver
(afeguard
@ifesaver Plus
@ifesaver (uper
>reedom @ife Plan
&viva 2han0riddhi
&nmol (uraksha
&viva (achin "entury
&viva Aoney 7ack
4<
@. Sin:e Premium F single premium products are meant for lump sum
investments. These products are meant for maximizing your investment returns while
providing tax benefits on your investment.
@ife 7ond Plus
8. Pen'i"n Pan' F pension products as the name suggests are meant for retirement
planning and aim to maximize your post retirement income
Pension Plus
(ecure Pension
3. C#id Pan' F child plans are meant for investments benefiting your child when
he1 she need them. Investments in these plans can be used for needs like funding
higher education, setting up a business, marriage expenses etc.
&viva @ittle Aaster
C. +eat# Pr"du&t' .hen it comes to healthcare there can be no compromises.
'ven though healthcare comes with huge cost implication and at most unexpected of
times. =ne must at all time be prepared to meet this contingency by setting aside a
certain sum of money in form of saving or premiums for health assurance.
&viva #ealth Plus
Gr"u;
&viva )roup products are designed keeping in mind the special re8uirements of
organisations and large groups
"orporate @ife
"redit /et
(uperannuation
&viva Aoney 7ack
&viva India 7ond
)roup )ratuity
"redit Plus
@oan (uraksha
45
)roup (hield
Rura
&t &viva we have specially designed products for the rural sector
&mar (uraksha
Jana (uraksha
ORGANI/ATION C+ART
4*
6.6. Pr"bem' "! t#e Or:ani?ati"n
In todayHs scenario, Insurance companies must move from selling insurance to
marketing an essential financial product. Technology is the main factor for 7rokers to
reach to customers. They are working upon it and 7roking can be huge success if they
are able to leverage upon the technology factor. The touch point with the ultimate
customer is the distributor or the 7roker and the role played by them in insurance
markets is critical. It is the distributor who makes the difference in terms of the
8uality of advice for choice of product, servicing of policy post sale and settlement of
claims. There was a time when captive agents wrote the bulk of an insurance
company?s business. 7ut increasingly people are buying insurance products from
independent producers and institutional channels such as banks, brokerdealers, I>&s
and wire houses. Aanaging a captive agency force is an expensive business.
Independent producers and institutional channels are likely to bring new efficiencies
into the distribution framework and corner a larger percentage of the policies written.
>or instance, banks and large brokerdealers already have huge networks in place,
existing relationships with customers and brand e8uity. This proGect is an attempt to
do a Aarket &nalysis of @ife Insurance 7usiness done through 7rokers for the past <
years and proGections for the next < years and identify the opportunities of distribution
and growth through them.
4,
6.5. COMPETITION INFORMATION
+*FC COMPETITORS INFORMATION
@ife Insurance "orporation =f India !@I"$ @I" has an
excellent money back policy which provides for periodic payments of partial survival
benefits as long as the policy holder is alive. 4+6 of the sum assured is payable after
*, 1+, 1* and 4+ years and the balance 5+6 is payable at the 4+
th
year along with
accrued bonus. !www.lic.com$>or a 4* years term , 1*6 of the sum assured becomes
payable after *,1+,1* and 4+ years and the balance 5+6 plus the accrued bonus
becomes payable at the 4*th year. &n important feature of these types of policies is
that in the event of the death of the policy holder at any time within the policy term
the death claim comprises of full sum assured without deducting any of the survival
benefit amounts which have already been paid. The bonus is also calculated on the
full sum assured.
Tata AIG Genera In'uran&e C"m;an<
The Tata &I) Gont venture is a tie up between the established
Tata )roup and &merican International )roup Inc.The Tata
)roup is one of the largest and most respected industrial houses in the country, while
&I) is a leading :( based insurance and financial services company with a presence
in over 1<+ countries and Gurisdictions around the world.
%aAaA Aian?
7aGaG &llianz is a Goint venture between &llianz &) with over
11+ years of experience in over -+ countries and 7aGaG &uto, a trusted automobile
manufacturer for over ** years in the Indian market. Together they are committed to
offering you financial solutions that provide all the security you need for your family
and yourself. 7aGaG &llianz is the number one private life insurer for the year 4+11 F
4+14. It is leading by -C crores. It has experienced a whopping growth of 41,6 in the
last financial year.
4-
MaF NeH -"r9 Li!e
Aax IndiaI
Aax India @imited is a multibusiness corporation that has business interests in
telecom services, bulk pharmaceuticals, electronic components and specialty
products. it is also the serviceoriented businesses of healthcare, life insurance and
information technology.
NeH -"r9 Li!e,
/ew Mork @ife has grown to be a >ortune 1++ company and an expert in life
insurance. It was the first insurance company to offer cash dividends to policy
owners. In 1C35, /ew Mork @ife pioneered the then unheardof concept of insuring
women at the same rate as men.
%ira Sun Li!e In'uran&e C"m;an< Limited
7irla (un @ife Insurance is the coming together of the
&ditya 7irla group and (un @ife >inancial of "anada to
enter the Indian insurance sector. The &ditya 7irla )roup, a multinational
conglomerate has over -* business units in India and overseas with operations in
"anada, :(&, :B, Thailand, Indonesia, Philippines, Aalaysia and 'gypt to name a
few.
ICICI Prudentia Li!e In'uran&e
I"I"I Prudential @ife Insurance is a Goint venture
between the I"I"I )roup and Prudential plc, of the :B.
I"I"I started off its operations in 13** with providing finance for industrial
development, and since then it has diversified into housing finance, consumer finance,
mutual funds to being a 0irtual :niversal 7ank and its latest venture @ife Insurance.
Metr";"itan Li!e
Aet@ife India proudly carries a 1<* year old legacy of
helping build financial freedom for everyone.Aetropolitan
@ife Insurance "ompany !PAet@ifeP$, a subsidiary of Aet@ife, Inc. !/M('I A'T$, is
a leading provider of insurance and other financial services to individual and
4C
institutional customers. The Aet@ife "ompanies serve approximately 14 million
individuals in the :.(. and companies and institutions with << million employees and
members, including CC of the >ortune 1++ companies.
OM K"ta9 Ma#indra Li!e In'uran&e
'stablished in 13C* as Botak "apital Aanagement >inance
promoted by :day Botak the company has come a long way
since its entry into corporate finance. It has dabbled in
leasing, auto finance, hire purchase, investment banking, consumer finance, broking
etc. The company got its name Botak Aahindra as industrialists #arish Aahindra and
&nand Aahindra picked a stake in the company.
Ab"ut ING V<'<a Li!e
I/) 0ysya @ife Insurance "ompany Private @imited
entered the private life insurance industry in India in
(eptember 4++1, and in a short span of 1C months has established itself as a
distinctive life insurance brand with an innovative, attractive and customer friendly
product portfolio and a professional advisor force. It also distributes products in close
cooperation with its sister company I/) 0ysya 7ank through 7ancassurance.
"urrently, it has over <+++ advisors working from 44 locations across the country and
over <++ employees.
I/) 0ysya @ife Insurance "ompany is head8uartered at 7angalore and has
established a strong presence in the cities of 2elhi, Aumbai, Bolkata, #yderabad and
"hennai.
43
6.@. S.7.O.T Ana<'i' "! t#e Or:ani?ati"n
>irms undertake (wot analysis to understand the external and internal environment.
(.=T, stands for (trength, .eakness, =pportunities and Threats.
STRENGT+,
(trong capital and reserve base.
The company provides customer service of the highest order.
(trong and well spread network of 8ualified intermediaries and sales person.
#uge basket of product range which are suitable to all age and income groups.
@arge pool of technically skilled manpower with in depth knowledge and
understanding of the market.
7EAKNESS,
@ow customer confidence on the private players
#eavy management expenses and administrative costs.
0ertical hierarchical reporting structure with many designations and cadres
leading to power politics at all levels without any exception.
OPPORTUNIT-,.
There will be inflow of managerial and financial expertise from the world?s
leading insurance markets. >urther the burden of educating consumers will also be
shared among many players.
International companies will help in building world class expertise in local market
by introducing the best global practices.
T+REAT,
=ther private insurance companies also vying for the same uninsured population.
7ig public sector insurance companies like &viva @ife Insurance "orporation
!@I"$ of India, /ational Insurance "ompany @imited, =riental Insurance @imited,
/ew India &ssurance "ompany @imited and :nited India Insurance "ompany
@imited. People trust and go to them more.
Poaching of customer base by other companies.
<+
Aost people don?t understand the need or are not willing to take insurance
policies in general.

C+APTERG5
O%JECTIVES OF T+E STU*-
<1
5.1 O%JECTIVES OF T+E STU*-
5.6 ObAe&tiBe "! ;r"Ae&t
To 'stimate life insurance business intermediated by 7rokers over the last three
years and proGections for the period 4++-4+1+
To assess opportunity for distribution of Insurance through brokers and way
forward.
To Identify imperatives for growth F products, commissions, technology interface,
service capability etc.
5.5 Re'ear&# "bAe&tiBe'
To &ssessment the opportunity and 9isks involve in insurance sector in view of
&viva.
&nalyze the customer perception about &viva @ife insurance company
5.@ SCOPE OF T+E STU*-
(cope of the study is to collect information regarding the manpower planning,
recruitment N selection process of the &viva @ife insurance company
To analyze the level of satisfaction of the employees in respect of the process
followed in the organization
5.8 SIGNIFICANCE
The study provides a complete knowledge of various fundamental concept related
to recruitment N selection process.
5.3 MANAGERIAL USEFULNESS OF T+E ORGANI/ATION
The study helps in finding the weaknesses, if any in the organization and the steps
taken to avoid them
The suggestions from the employees will help management to make changes in
the desired field
<4
C+APTER2@,
MET+O*OLOG- A*OPTE*
<<
@.1 MET+O*OLOG- A*OPTE*
*ata '"ur&e'
Primary data through 8uestionnaire and for the I have used internet, book and Gournal.
Primar< data
Primary data collected through the 1++ customer in 2elhi N /"9 who are using
&viva? product
Se&"ndar< data
(econdary data consist of information that already exits somewhere, having been
collected for some other purpose. In this study secondary data was collected from
company websites, magazines and brochures. I have collected from the various place
i.e. Internet, 7ook and Gournal.
0ue'ti"nnaire de'i:n E !"rmati"n
Duestionnaire is a made by systematic way of solving a problem it includes the
research methods for solving a problem it includes the research methods for solving
the problem also it is keeping the obGective and title in mind it developed.
Sam;e de'i:n E'am;e eement E unit
&fter due consultation with the many company supervisor in 2'@#I as well as with
the college guide, also keeping in mind the re8uirements of the company for the
research, the sample size that was found to be appropriate for the study was *+.
EFtent
I have cover customer and the marketing manager their view towards the &viva life
insurance product segmentation.
Time !rame
- <+ days
Sam;in: !rame
<5
9andom sampling method used in this research paper
Limitati"n' "! re'ear&#
The following limitations can be pointed out from the research that I conducted in
relation to the problems that were given to me by 2'@#I 2istrict only.
a$ The sample size chosen for the 8uestionnaire was only 1++ and that may not
represent the true picture of the consumer perception about the @ife Insurance
sector.
b) The research got confined to the city of 2elhi. The respondent belonged only
to 2elhi and not others who were out of 2elhi.
<*
C+APTERG8
CONCEPTUAL *ISCUSSION
<,
8.1 CONCEPTUAL *ISCUSSION
8.6 INSURANCE IN*USTR- IN IN*IA
The insurance sector in India has come a full circle from being an open competitive.
Aarket to nationalization and back to a liberalized market again. Tracing the
2evelopments in the Indian insurance sector reveals the <,+ degree turn witnessed
over period of almost two centuries.
Insurance was nationalized. >irst, the life insurance companies were nationalized in
13*,, and then the general insurance business was nationalized in 13-4. =nly in 1333
private insurance companies have been allowed back into the business of insurance
with a maximum of 4,6 of foreign holding. In what follows, we describe how and
why of regulation and deregulation. The entry of the (tate 7ank of India with its
proposal of banc assurance brings a new dynamics in the game. .e study the
collective experience of the other countries in &sia already deregulated their markets
and have allowed foreign companies to participate. If the experience of the other
countries is any guide, the dominance of the @ife Insurance "orporation is not going
to disappear any time soon.
The Indian insurance market, with a population of over one billion, offers tremendous
opportunities and can easily sustain 1++ insurers. The development of the insurance
sector will result in higher domestic savings and investments, significant expansion of
the capital market, enhanced infrastructure financing and increased foreign capital
inflow and employment.
The opening up of the Indian insurance sector has been hailed as a groundbreaking
move towards further liberalization of the Indian economy. The size of the existing
insurance market is growing at a rate of ten per cent per year. The estimated potential
of the Indian insurance market in terms of premium was around 9s<, 55,+++ crores
!:(;C, billion$ in 1333. The Indian players have tapped only ten per cent of the
market share and the remaining 3+ per cent of the market remains untapped.
The Indian )overnment has recently enacted the Insurance 9egulatory 2evelopment
&uthority &ct 1333, which amends existing insurance laws dating from 13<C. The &ct
<-
establishes an authority called the Insurance 9egulatory 2evelopment &uthority,
designed to regulate the insurance sector.
T+E INSURANCE IN*USTR- 2 7IT+ A NE7 LOOK
"ompetition has well and truly set in the fastgrowing insurance sector, barely a year
after the doors were opened for the reentry of private players.
The new face of the Indian insurance industry is craving for attention. #oardings and
billboards of the new Goint venture private companies gaze at you from everywhere.
&dvertisements in newspapers and on television, insurance agents and direct mailers
form part of the campaign vehicle. The dozenodd life and nonlife companies in the
private sector are fighting a 8uiet but intense battle to make their presence felt to the
Indian consumer.
/ot to be undone, the public sector companies are trying to match the moves of the
private companies. They are shedding their old ways and donning a sprightlier and
marketfriendly exterior to make sure that they do not lose the advantage of a head
start.
@ife insurance is a form of insurance that pays monetary proceeds upon the death of
the insured covered in the policy. 'ssentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the insuredHs named
beneficiary so long as the insuredHs premiums are current.
.ith a large population and the untapped market area of this population insurance
happens to be a very big opportunity in India. Today it stands as a business growing at
the rate of 1*4+6 annually. Together with banking services, it adds about - percent
to the countries )2P. In spite of all this growth statistics of the penetration of the
insurance in the country is very poor. /early C+6 of Indian populations are without
life insurance cover and the health insurance. This is an indicator that growth potential
for the insurance sector is immense in India.
It was due to this immense growth that the regulations were introduced in the
insurance sector and in continuation KAalhotra "ommitteeL was constituted by the
government in 133< to examine the various aspects of the industry. The key element
<C
of the reform process was participation of overseas insurance companies with 4,6
capital. "reating a more competitive financial system suitable for the re8uirements of
the economy was the main idea behind this reform.
(ince then the insurance industry has gone through many changes. The liberalization
of the industry the insurance industry has never looked back and today stand as one of
the most competitive and exploring industry in India. The entry of the private players
and the increased use of the new distribution are in the limelight today. The use of
new distribution techni8ues and the IT tools has increased the scope of the industry in
the longer run.
Insurance is the business of providing protection against financial aspects of risk, such
as those to property, life health and legal liability. It is one method of a greater
concept known as risk management Fwhich is the need to mange uncertainty on
account of exposure to loss, inGury, disadvantage or destruction.
Insurance is the method of spreading and transfer of risk. The fortunate many who are
exposed to some or similar risk shares loss of the unfortunate. Insurance does not
protect the assets but only compensates the economic or financial loss.
In insurance the insured makes payment called KpremiumsL to an insurer, and in
return is able to claim a payment from the insurer if the insured suffers a defined type
of loss. This relationship is usually drawn up in a formal legal contract.
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. .hen 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. &n insurance company will profit if they invest the money at a greater
return than their cost of float.
&n 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.
<3
"lassification of insurance
The insurance industry in India can broadly classified in two parts. They are.
1$ @ife insurance.
4$ /onlife !general$ insurance.
1) Li!e in'uran&e,
@ife insurance can be defined as Klife insurance provides a sum of money if the
person who is insured dies while the policy is in effectL.
In 1C1C 7ritish introduced to India, with the establishment of the oriental life
insurance company in "alcutta. The first Indian owned @ife Insurance "ompany% the
7ombay mutual life assurance society was set up in 1C-+.the life insurance act, 1314
was the first statuary measure to regulate the life insurance business in India. In 13C<,
the earlier legislation was consolidated and amended by the insurance act, 13<C, with
comprehensive provisions for detailed effective control over insurance. The union
government had opened the insurance sector for private participation in 1333, also
allowing the private companies to have foreign e8uity up to 4,6. >ollowing the
opening up of the insurance sector, 14 private sector companies have entered the life
insurance business.
%ene!it' "! i!e in'uran&e
@ife insurance encourages saving and forces thrift.
It is superior to a traditional savings vehicle.
It helps to achieve the purpose of life assured.
It can be enchased and facilitates 8uick borrowing.
It provides valuable tax relief.
Thus insurance is found to be very useful in the lives of the person both in short term
and long term.
5+
>undamental principles of life insurance contract%
1) Prin&i;e "! am"'t :""d !ait#,
K& positive duty to voluntary disclose, accurately and fully, all facts, material to the
risk being proposed whether re8uested or notL.
6) Prin&i;e "! in'urabe intere't,
K9elationships with the subGect matter !a person$ which is recognized in law and gives
legal right to insure that personL.
6) N"n2i!e (:enera) In'uran&e,
Triton insurance co. ltd was the first general insurance company to be established in
India in 1C*+, whose shares were mainly held by the 7ritish. The first general
insurance company to be set up by an Indian was Indian mercantile insurance co. @td.,
which was stabilized in 13+- there emerged many a player on the Indian scene
thereafter.
The general insurance business was nationalized after the promulgation of )eneral
Insurance "orporation !)I"$ => India undertook the postnationalization general
insurance business.
T+E CONSUMER A*OPTION PROCESS
The consumer adoption process is the process by which customers learn about new
products, try them, and adopt or reGect them. Today many marketers are targeting
heavy users and early adopters of new products recognizing that specific media can
reach both groups and tend to be opinion leaders. The consumer adoption process is
influenced by many factors beyond the marketer?s control, including consumers and
organizations willingness to try new products, personal influences and the
characteristics of the new products or innovations
STAGES OF A*OPTION PROCESS
51
&n innovation refers to any good, service, or idea. That is perceived by someone as
new. The idea may have long history, but it is an innovation to the person who sees it
as new. Innovation takes time to spread through the special system. The consumer
adoption process focuses on the mental process through which an individual passes
from first hearing about an innovation to final adoption. &dopters of new products
have moved through the following five stages.
1. A7ARENESS, The consumer becomes aware of the innovation but lacks
information about it.
2. INTEREST, The consumer is stimulated to see the information about the
innovation.
3. EVALUATION, The "onsumer considers whether to try the innovation or not.
4. TRIAL, The consumer tries the innovation to improve his estimate of its value.
5. A*OPTION, The consumer decides to make full and regular use of the
innovation.
RANGE OF PRO*UCT AN* SERVICES
End"Hment'
'ndowments are policies in which the cash value built up inside the policy, e8uals the
death benefit !face amount$ at a certain age. The age this commences is known as the
endowment age. 'ndowments are considerably more expensive !in terms of annual
premiums$ than either whole life or universal life because the premium paying period
is shortened and the endowment date is earlier.
In the :nited (tates, the Technical "orrections &ct of 13CC tightened the rules on tax
shelters !creating modified endowments$. These follow tax rules as annuities and
I9&s do. 'ndowment Insurance is paid out whether the insured lives or dies, after a
specific period !e.g. 1* years$ or a specific age !e.g. ,*$.
A&&identa deat#
&ccidental death is a limited life insurance that is designed to cover the insured when
they pass away due to an accident. &ccidents include anything from an inGury, but do
54
not typically cover any deaths resulting from health problems or suicide. 7ecause they
only cover accidents, these policies are much less expensive than other life
insurances.
It is also very commonly offered as Paccidental death and dismemberment insuranceP,
also known as an &2N2 policy. In an &2N2 policy, benefits are available not only
for accidental death, but also for loss of limbs or bodily functions such as sight and
hearing, etc.
&ccidental death and &2N2 policies very rarely pay a benefit% either the cause of
death is not covered, or the coverage is not maintained after the accident until death
occurs. To be aware of what coverage they have, an insured should always review
their policy for what it covers and what it excludes. =ften, it does not cover an insured
who puts themselves at risk in activities such asI parachuting, flying an airplane,
professional sports, or involvement in a war !military or not$. &lso, some insurers will
exclude death and inGury caused by proximate causes due to !but not limited to$ racing
on wheels and mountaineering. &ccidental death benefits can also be added to a
standard life insurance policy as a rider. If this rider is purchased, the policy will
generally pay double the face amount if the insured dies due to an accident. This used
to be commonly referred to as a double indemnity coverage. In some cases, some
companies may even offer a triple indemnity cover.
Reated i!e in'uran&e ;r"du&t'
9iders are modifications to the insurance policy added at the same time the policy is
issued. These riders change the basic policy to provide some feature desired by the
policy owner. & common rider is accidental death, which used to be commonly
referred to as Pdouble indemnityP, which pays twice the amount of the policy face
value if death results from accidental causes, as if both a full coverage policy and an
accidental death policy were in effect on the insured. &nother common rider is
premium waiver, which waives future premiums if the insured becomes disabled.
J"int i!e in'uran&e is either a term or permanent policy insuring two or more
lives with the proceeds payable on the first death.
5<
SurBiB"r'#i; i!e or secondtodie life is a whole life policy insuring two lives
with the proceeds payable on the second !later$ death.
Sin:e ;remium whole life is a policy with only one premium which is payable at
the time the policy is issued.
M"di!ied H#"e life is a whole life policy that charges smaller premiums for a
specified period of time after which the premiums increase for the remainder of the
policy.
Gr"u; i!e in'uran&e is term insurance covering a group of people, usually
employees of a company or members of a union or association. Individual proof of
insurability is not normally a consideration in the underwriting. 9ather, the
underwriter considers the size and turnover of the group, and the financial strength of
the group. "ontract provisions will attempt to exclude the possibility of adverse
selection. )roup life insurance often has a provision that a member exiting the group
has the right to buy individual insurance coverage.
Seni"r and ;reneed ;r"du&t'
Insurance companies have in recent years developed products to offer to niche
markets, most notably targeting the senior market to address needs of an aging
population. Aany companies offer policies tailored to the needs of senior applicants.
These are often low to moderate face value whole life insurance policies, to allow a
senior citizen purchasing insurance at an older issue age an opportunity to buy
affordable insurance. This may also be marketed as final expense insurance, and an
agent or company may suggest !but not re8uire$ that the policy proceeds could be
used for endoflife expenses.
Preneed !or prepaid$ insurance policies are whole life policies that, although available
at any age, are usually offered to older applicants as well. This type of insurance is
designed specifically to cover funeral expenses when the insured person dies. In many
cases, the applicant signs a prefunded funeral arrangement with a funeral home at the
time the policy is applied for. The death proceeds are then guaranteed to be directed
first to the funeral services provider for payment of services rendered. Aost contracts
55
dictate that any excess proceeds will go either to the insuredHs estate or a designated
beneficiary.
These products are sometimes assigned into a trust at the time of issue, or shortly after
issue. The policies are irrevocably assigned to the trust, and the trust becomes the
owner. (ince a whole life policy has a cash value component, and a loan provision, it
may be considered an asset% assigning the policy to a trust means that it can no longer
be considered an asset for that individual. This can impact an individualHs ability to
8ualify for Aedicare or Aedicaid.
InBe'tment ;"i&ie'E 7it#2;r"!it' ;"i&ie'
(ome policies allow the policyholder to participate in the profits of the insurance
company these are withprofits policies. =ther policies have no rights to participate in
the profits of the company, these are nonprofit policies.
.ithprofits policies are used as a form of collective investment to achieve capital
growth. =ther policies offer a guaranteed return not dependent on the companyHs
underlying investment performance% these are often referred to as withoutprofit
policies which may be construed as a misnomer.
Pen'i"n'
Pensions are a form of life assurance. #owever, whilst basic life assurance, permanent
health insurance and nonpensions annuity business includes an amount of mortality
or morbidity risk for the insurer, for pensions there is a longevity risk.
& pension fund will be built up throughout a personHs working life. .hen the person
retires, the pension will become in payment, and at some stage the pensioner will buy
an annuity contract, which will guarantee a certain payout each month until death.
Annuitie'
&n annuity is a contract with an insurance company whereby the purchaser pays an
initial premium or premiums into a taxdeferred account, which pays out a sum at pre
determined intervals. There are two periodsI the accumulation !when payments are
paid into the account$ and the annuitization !when the insurance company pays out$.
>or example, a policy holder may pay O1+,+++, and in return receive O1*+ each month
5*
until he dies% or O1,+++ for each of 15 years or death benefits if he dies before the full
term of the annuity has elapsed. Tax penalties and insurance company surrender
charges may apply to premature withdrawals !if indeed these are allowed% in most
markets outside the :.(. the policy owner has no right to end the contract
prematurely$.
5,
TaF and i!e in'uran&eE TaFati"n "! i!e in'uran&e in t#e India
Premiums paid by the policy owner are normally not deductible for federal and state
income tax purposes.
Proceeds paid by the insurer upon death of the insured are not included in gross
income for federal and state income tax purposes% however, if the proceeds are
included in the PestateP of the deceased, it is likely they will be subGect to federal and
state estate and inheritance tax.
"ash value increases within the policy are not subGect to income taxes unless certain
events occur. >or this reason, insurance policies can be a legal and legitimate tax
shelter wherein savings can increase without taxation until the owner withdraws the
money from the policy. =n flexiblepremium policies, large deposits of premium
could cause the contract to be considered a PAodified 'ndowment "ontractP by the
Internal 9evenue (ervice !I9($, which negates many of the tax advantages associated
with life insurance. The insurance company, in most cases, will inform the policy
owner of this danger before applying their premium.
Tax deferred benefit from a life insurance policy may be offset by its low return or
high cost in some cases. This depends upon the insuring company, type of policy and
other variables !mortality, market return, etc.$. &lso, other income tax saving vehicles
!i.e. Individual 9etirement &ccount !I9&$, 5+1B or 9oth I9&$ appear to be better
alternatives for value accumulation, at least for more sophisticated investors who can
keep track of multiple financial vehicles. The combination of lowcost term life
insurance and higher return taxefficient retirement accounts can achieve better
performance, assuming that the insurance itself is only needed for a limited amount of
time.
The tax ramifications of life insurance are complex. The policy owner would be well
advised to carefully consider them. &s always, the :nited (tates "ongress or the state
legislatures can change the tax laws at any time.
RULES AN* REGULATIONS
The Insurance 9egulatory and 2evelopment &uthority !I92&$Q1R is a national agency
of the )overnment of India, based in #yderabad. It was formed by an act of Indian
5-
Parliament known as I92& &ct 1333, which was amended in 4++4 to incorporate
some emerging re8uirements. Aission of I92& as stated in the act is Pto protect the
interests of the policyholders, to regulate, promote and ensure orderly growth of the
insurance industry and for matters connected therewith or incidental thereto.P
EF;e&tati"n'
The law of India ha followin! e"#e$%a%ion f&o' IR(A
1. To protect the interest of and secure fair treatment to policyholders%
4. To bring about speedy and orderly growth of the insurance industry !including
annuity and superannuation payments$, for the benefit of the common man, and to
provide long term funds for accelerating growth of the economy%
<. To set, promote, monitor and enforce high standards of integrity, financial
soundness, fair dealing and competence of those it regulates%
5. To ensure that insurance customers receive precise, clear and correct information
about products and services and make them aware of their responsibilities and
duties in this regard%
*. To ensure speedy settlement of genuine claims, to prevent insurance frauds and
other malpractices and put in place effective grievance redressal machinery%
,. To promote fairness, transparency and orderly conduct in financial markets
dealing with insurance and build a reliable management information system to
enforce high standards of financial soundness amongst market players%
-. To take action where such standards are inade8uate or ineffectively enforced%
C. To bring about optimum amount of selfregulation in day to day working of the
industry consistent with the re8uirements of prudential regulation.
5C
*utie'I P"Her' and Fun&ti"n' "! IR*A
Se&ti"n 1@ "! IR*A A&tI 1=== a<' d"Hn t#e dutie'I ;"Her' and !un&ti"n' "!
IR*A
!1$ (ubGect to the provisions of this &ct and any other law for the time being in force,
the &uthority shall have the duty to regulate, promote and ensure orderly growth
of the insurance business and reinsurance business.
!4$ .ithout preGudice to the generality of the provisions contained in subsection !1$,
the powers and functions of the &uthority shall include,
!a$ Issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration%
!b$ Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance%
!c$ (pecifying re8uisite 8ualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents%
!d$ (pecifying the code of conduct for surveyors and loss assessors%
!e$ Promoting efficiency in the conduct of insurance business%
!f$ Promoting and regulating professional organisations connected with the
insurance and reinsurance business%
!g$ @evying fees and other charges for carrying out the purposes of this &ct%
!h$ "alling for information from, undertaking inspection of, conducting en8uiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organisations connected with the insurance business%
!i$ "ontrol and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so
53
controlled and regulated by the Tariff &dvisory "ommittee under section ,5:
of the Insurance &ct, 13<C !5 of 13<C$%
!G$ (pecifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries%
!k$ 9egulating investment of funds by insurance companies%
!l$ 9egulating maintenance of margin of solvency%
!m$ &dGudication of disputes between insurers and intermediaries or insurance
intermediaries%
!n$ (upervising the functioning of the Tariff &dvisory "ommittee%
!o$ (pecifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organisations referred to in
clause !f$%
!p$ (pecifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector% and
!8$ 'xercising such other powers as may be prescribed
AdBi'"r< C"mmittee
I92& has a "hairman and some permanent and some part time members but the
regulations are enacted under the guidance of a statutory advisory committee. The
advisory committee consists of following individuals and exofficio authoritiesI
Mr +ari Nara<ana i' t#e t#ird C#airman "! IR*A.
Ar " ( 9ao was the second "hairman of I92& after Ar / 9angachari as the first
"hairman. Ar B B (rinivasan is the /onlife Aember of I92&. There is provision for
a panel of other members and part time members. I92& formed a high powered
Insurance @aw 9eforms "ommittee known as BP/ "ommittee with important
insurance advisors like Ar / )ovardhan and 2r B " Aishra as its members. There
were also a few nonadvisory committee members like Ar @ia8uat Bhan and Ar T
*+
0iswanathan etc. >ull force and utility of various institutions like &dvisory
"ommittee and selfregulatory organizations are not yet realized as the regulator
seems to be in a long learning mode. 2ue to over delegations, Individual incumbents
decide the pace and extent of utilization of prudential and statutory bodies. 9esearch
is limited to opinion seeking through legacy channels. Aarket waits for revision of
insurance act and establishment meaningfully functioning regulatory organs devoid of
excess delegation and subGective localization of development agencies.
I92& Journal is available as soft copy in its website. :nlike other Indian
administrative 9egulatory &gencies I92& is perceived as a silent regulator with
activities confined to its local existence.
NeH IR*A C#airman
)overnment of India has circulated to broadbase I92& chairman selection process. It
is felt in the market that placing of retired civil servants as I92& "hairman has served
the purpose of administrative fiefdom of the regulator. Aostly, the regulator has
become passive to market realities and most of the original public policy intentions
have been systematically replaced by personal preferences. There seems to be no
oversight of public policy erosions. Taking advantage of the completion of term of
current incumbent, there seem to be an attempt to correct the future course but people
do not perceive any outcome to result as the market does not seem to throw up
candidates of the stature of #oward 2avies for Indian market. 7ut a right leadership is
the solution to the re8uirement of this booming market.
In'uran&e %u'ine''E In'uran&e bu'ine'' i' diBided int" !"ur &a''e',
1$ @ife Insurance 4$ >ire Insurance <$ Aarine Insurance and 5$ Aiscellaneous
Insurance.
@ife Insurers transact life insurance business% )eneral Insurers transact the rest.
/o composites are permitted as per law.
LEGISLATION,
Insurance is a federal subGect in India. The primary legislation that deals with
insurance business in India isI
*1
Insurance &ct, 13<C, and Insurance 9egulatory N 2evelopment &uthority &ct, 1333.
S I/(:9&/"' P9=2:"T( !for latest information get in touch with the current
insurers F website information of insurers is provided at the web page for insurers$I
@ife InsuranceI
P";uar Pr"du&t', 'ndowment &ssurance !Participating$ and Aoney 7ack
!Participating$. Aore than C+6 of the life insurance business is from these products.
Genera In'uran&e,
>ire and Aiscellaneous insurance businesses are predominant. Aotor 0ehicle
insurance is compulsory.
Tariff &dvisory "ommittee !T&"$ lays down tariff rates for some of the general
insurance products !please visit website of )I" for details$.
CUSTOMER PROTECTION,
Insurance Industry has =mbudsmen in 14 cities. 'ach =mbudsman is empowered to
redress customer grievances in respect of insurance contracts on personal lines where
the insured amount is less than 9s. 4+ lakhs, in accordance with the =mbudsman
(cheme. &ddresses can be obtained from the offices of @I" and other insurers.
*4
C+APTERG3
ANAL-SIS OF T+E PRO%LEM UN*ER
STU*-
*<
3.1 ANAL-SIS OF T+E PRO%LEM UN*ER STU*-
*ATA ANAL-SIS
3.6 FACTS AN* FIN*INGS
1. *" <"u "Hn a i!e in'uran&e ;"i&<E inBe'tment ;an in <"ur nameJ
!a$ Mes !b$ /o
+"d i!e in'uran&e ;"i&< N" "! Re';"ndent Per&enta:e
Mes
/o
-,
45
-,
45
T"ta 1++ 1++
6. I! <e' H#i&# &"m;an<E &"m;an<K' in'uran&e ;"i&ie' d" <"u #"dJ
!a$ #2>" (tandard !b$ 7irla (un @ife !c$ &viva @ife Insurance
!d$ 7aGaG &llianz !e$ @I" !f$ Tata &I)
!g$ I"I"I Prudential !h$ I/) 0ysya !i$ 7harti &xa
!G$ =thers !specify name$
"ategory /o of 9espondent
&viva C
7I9@&( 1
@I" 1+
#2>" (tandard C
I"I"I Prudential
,
Aax /ew Mork ,
&viva 11
5. 7#at i' t#e a;;r"Fimate ;remium ;aid b< <"u annua< (in Ru;ee')J
!a$ 9s. *+++ F 9s. 1++++ !b$ 9s. 1+++1 F 9s. 1*+++
!c$ 9s. 1*++1 F 9s. 453++ !d$ 9s. 4*+++ F 9s. *++++
!e$ 9s. *+++1 F 9s. ,++++ !f$ 9s. ,+++1 F 9s. C++++
!g$ 9s. C+++1 F 9s. 1+++++ !h$ more than 9s. 1+++++ !specify premium$
9s. *+++ F 9s. 1++++ 1<
9s. 1+++1 F 9s. 1*+++ 15
9s. 1*++1 F 9s. 453++ 1<
9s. 4*+++ F 9s. *++++ 13
*5
9s. *+++1 F 9s. ,++++ 1C
9s. ,+++1 F 9s. C++++ 11
9s. C+++1 F 9s. 1+++++ 14
Aore than 9s. 1+++++ +
@. 7#at 9ind "! in'uran&e ;"i&< H"ud 'uit <"u be't in <"ur &urrent 'ta:e "!
i!eJ
!a$ @ife Insurance !b$ @ife Insurance and Investment Plans
!c$ Pension Plans !d$ "hild Plans
!e$ Tax saving plans
@ife Insurance 4<
@ife Insurance and Investment Plans 43
Pension Plans 4-
"hild Plans 14
Tax saving plans 3
8. Are <"u aHare "! t#e neH unit in9ed in'uran&e ;an' in t#e mar9etJ
!a$ Mes !b$ /o
/umber
Mes C<
/o 1-
3. +"H mu&# H"ud <"u be Hiin: t" ';end ;er annum i! <"u Here t" :" !"r
an inBe'tmentE in'uran&e ;anJ
!a$ @ess than 9s. ,+++ !b$ 9s. ,++1 F 9s. 1++++
!c$ 9s. 1+++1 F 9s. 4*+++ !d$ 9s. 4*++1 F 9s. *++++
!e$ 9s. *++++ F 9s. 1+++++ !f$ Aore than 9s. 1+++++
@ess than 9s. ,+++ 4<
9s. ,++1 F 9s. 1++++ <5
9s. 1+++1 F 9s. 4*+++ 1<
9s. 4*++1 F 9s. *++++ 13
9s. *++++ F 9s. 1+++++ 11
Aore than 9s. 1+++++ +
**
C. 7#i&# a&&"rdin: t" <"u i' an idea ;"i&< termJ (Number "! <ear' <"u
H"ud be Hiin: t" ;a< ;remium)
!a$ < to * years !b$ , to 3 years !c$ 1+ to 1* years
!d$ 1, to 4+ years !e$ 41 to 4* years !f$ 4, to <+ years
!g$ Aore than <+ years !h$ .hole life policy
< to * years 1,
, to 3 years -
1+ to 1* years C
1, to 4+ years 1+
41 to 4* years 11
4, to <+ years 14
Aore than <+ years 4+
.hole life policy C
D. 7#at m"tiBate' <"u t" ;ur&#a'e in'uran&eE inBe'tment ;an'J
!a$ &dvertisements !b$ #igh 9eturns !c$ &dvice from friends
!d$ >amily responsibilities !e$ =thers !specify$
&dvertisements 1-
#igh 9eturns 1C
&dvice from friends <*
>amily responsibilities 15
=thers !specify$ 1,
=. In H#i&# 9ind "! &"m;an< H"ud <"u ;re!er t" ma9e a ;ur&#a'e "!
in'uran&eJ
!a$ )overnment owned company !b$ Public @imited "ompany
!c$ Private "ompany !d$ >oreign based company
o )overnment owned company *,
o Public @imited "ompany 14
o Private "ompany 15
o >oreign based company 1C
*,
14. T<;i&a< H#at 9ind "! return' H"ud <"u ""9 at !r"m <"ur inBe'tment'J
!a$ @ess than *6 !b$ *6 1+ 6 !c$ 116 1* 6
!d$ 1,6 4+ 6 !e$ 416 4*6 !f$ 4,6 <+6
!g$ <16 5+6 !h$ 516 *+6 !i$ Aore than *+6
@ess than *6 C
*6 1+ 6 13
116 1* 6 5*
1,6 4+ 6 14
416 4*6 4
4,6 <+6 5
<16 5+6 *
516 *+6 <
Aore than *+6 4
*-
Per'"na *etai',
)enderITTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
o AaleTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
o >emaleTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
Aale *+
>emale *+
A:e :r"u;,
o 1C F 4* years
o 4, F <* years
o <, F 53 years
o *+ F ,+ years
o &bove ,+ years
1C F 4* years 1-
4, F <* years ,C
<, F 53 years *
*+ F ,+ years <
&bove ,+ years -
Pr"!ie "! re';"ndent,
o (tudent
o #ousewife
o .orking Professional
o 7usiness
o (elf F 'mployed
o )overnment (ervice employee
*C
(tudent 1C
#ousewife 13
.orking Professional 1<
7usiness 14
(elf F 'mployed 11
)overnment (ervice employee 4-
*3
3.5 *ATA ANAL-SIS > INTERPRETATION
1. *" <"u "Hn a i!e in'uran&e ;"i&<E inBe'tment ;an in <"ur nameJ
!a$ Mes !b$ /o
INTERPRETATION
&s per our data suggested that -,6 of the people out of 1++ people has insurance plan
from different company
,+
6. I! <e' H#i&# &"m;an<E &"m;an<K' in'uran&e ;"i&ie' d" <"u #"dJ
!a$ #2>" (tandard !b$ 7irla (un @ife !c$ &viva @ife Insurance
!d$ 7aGaG &llianz !e$ @I" !f$ Tata &I)
!g$ I"I"I Prudential !h$ I/) 0ysya !i$ 7harti &xa
!G$ =thers !specify name$
INTERPRETATION
&s per our study suggested that almost 1C6 of the people holding the &viva life
insurance and 116 are taken from 7irlas adding to this1,6 of the market share is
with I"I"I prudential so it is good sign for the &viva to capture the market more.
,1
5. 7#at i' t#e a;;r"Fimate ;remium ;aid b< <"u annua< (in Ru;ee')J
!a$ 9s. *+++ F 9s. 1++++ !b$ 9s. 1+++1 F 9s. 1*+++
!c$ 9s. 1*++1 F 9s. 453++ !d$ 9s. 4*+++ F 9s. *++++
!e$ 9s. *+++1 F 9s. ,++++ !f$ 9s. ,+++1 F 9s. C++++
!g$ 9s. C+++1 F 9s. 1+++++ !h$ more than 9s. 1+++++ !specify premium$
INTERPRETATION
This 8uestion is giving us insight how many people investing how much money as a
premium as per the data suggested by the graph almost 136 of the people are try to
invest 4*B to *+B as a premium towards the &viva life insurance product so it is very
good sign for the company.
,4
@. 7#at 9ind "! in'uran&e ;"i&< H"ud 'uit <"u be't in <"ur &urrent 'ta:e "!
i!eJ
!a$ @ife Insurance !b$ @ife Insurance and Investment Plans
!c$ Pension Plans !d$ "hild Plans
!e$ Tax saving plans
INTERPRETATION
&s per our study suggested that 436 of the customer investing in to the @ife insurance
investment plans while 4<6 of them are going for the @ife insurance investment 146
are for child plans so it is good sign for the &viva where this company has a presence
in these area.
,<
8. Are <"u aHare "! t#e neH unit in9ed in'uran&e ;an' in t#e mar9etJ
!a$ Mes !b$ /o
INTERPRETATION
&lmost C<6 of the people are aware about the /ew unit linked insurance plan which
is available in the market.
,5
3. +"H mu&# H"ud <"u be Hiin: t" ';end ;er annum i! <"u Here t" :" !"r
an inBe'tmentE in'uran&e ;anJ
!a$ @ess than 9s. ,+++ !b$ 9s. ,++1 F 9s. 1++++
!c$ 9s. 1+++1 F 9s. 4*+++ !d$ 9s. 4*++1 F 9s. *++++
!e$ 9s. *++++ F 9s. 1+++++ !f$ Aore than 9s. 1+++++
INTERPRETATION
&s per our graph suggested that maximum people are able to invest either on 9s. ,++1
to 1++++ =r 4*+++ to *B it is very important to the company to Gudge the scenario
and launch a plan according to the data.
,*
C. 7#i&# a&&"rdin: t" <"u i' an idea ;"i&< termJ (Number "! <ear' <"u
H"ud be Hiin: t" ;a< ;remium)
!a$ < to * years !b$ , to 3 years !c$ 1+ to 1* years
!d$ 1, to 4+ years !e$ 41 to 4* years !f$ 4, to <+ years
!g$ Aore than <+ years !h$ .hole life policy
INTERPRETATION
&s per our data suggested that 446 of the person want to go for the more than <+
years of the policy plan and 1<6 of the person will go for the 4, to <+ year of plan so
it is good to know that customer is going for the long term plan rather than short term.
,,
D. 7#at m"tiBate' <"u t" ;ur&#a'e in'uran&eE inBe'tment ;an'J
!a$ &dvertisements !b$ #igh 9eturns !c$ &dvice from friends
!d$ >amily responsibilities !e$ =thers !specify$
INTERPRETATION
2ifferent customer got to know about the &viva is from the various place <*6 of the
person buy &viva product because of the advice from friends.
,-
=. In H#i&# 9ind "! &"m;an< H"ud <"u ;re!er t" ma9e a ;ur&#a'e "!
in'uran&eJ
!a$ )overnment owned company !b$ Public @imited "ompany
!c$ Private "ompany !d$ >oreign based company
INTERPRETATION
"ustomer purchase *,6 of the Insurance product from the government company,
person trying to purchase146 of the insurance from the public limited company.
,C
14. T<;i&a< H#at 9ind "! return' H"ud <"u ""9 at !r"m <"ur inBe'tment'J
!a$ @ess than *6 !b$ *6 1+ 6 !c$ 116 1* 6
!d$ 1,6 4+ 6 !e$ 416 4*6 !f$ 4,6 <+6
!g$ <16 5+6 !h$ 516 *+6 !i$ Aore than *+6
INTERPRETATION
&s per our data suggested that 5*6 of the people are trying to fetch the return from
the 116 to 1*6 adding to this 136 of the people *6 to 1+6.
,3
Per'"na *etai',
Gender,
o Aale
o >emale
Aale *+
>emale *+
INTERPRETATION
=ut of 1++ who is responded to the our survey is *+6 are male and *+6 is female.
-+
A:e :r"u;,
o 1C F 4* years
o 4, F <* years
o <, F 53 years
o *+ F ,+ years
o &bove ,+ years
INTERPRETATION
&s per our study suggested that ,C6 4, to <* years of the age who is contributed to
the our survey adding to this 1-6 1C to 4* years.
-1
Pr"!ie "! re';"ndent,
o (tudent
o #ousewife
o .orking Professional
o 7usiness
o (elf F 'mployed
o )overnment (ervice employee
INTERPRETATION
To study the segmentation of the &viva life insurance product 4-6 of the person are
government service employee while 136 are the house wife..
-4
C+APTERGC
INTERPERETATION OF RESULTS
-<
C.1 INTERPERETATION OF RESULTS
C.6 MaA"r !indin:
&fter overhauling the all situation that boosted a number of Pvt. "ompanies
associated with multinational in the Insurance (ector to give befitting competition to
the established behemoth &0I0& in private sector, we come at the conclusion that
There is very tough competition among the private insurance companies on the
level of new trend of advertising to lull a maGor part of "ustomers.
&0I0& is not left behind in the present race of advertisement.
The entries of more Pvt. Players in the Insurance (ector have expanded the
product segment to meet the different level of the re8uirement of the customers. It
has brought about greater choice to the customers.
&0I0& has vast market and very firm grip on its traditional customers and
monopoly of life insurance products..
I92&, is also playing very comprehensive role by regulating norms mandating to
private players in this sector, that increases the confidence level of the customers to
the private players.
1. INTERPRETATION
To study the segmentation of the &viva life insurance product 4-6 of the person are
government service employee while 136 are the house wife..
6. INTERPRETATION
&s per our study suggested that ,C6 4, to <* years of the age who is contributed to
the our survey adding to this 1-6 1C to 4* years.
-5
5. INTERPRETATION
=ut of 1++ who is responded to the our survey is *+6 are male and *+6 is female.
@. INTERPRETATION
&s per our data suggested that 5*6 of the people are trying to fetch the return from
the 116 to 1*6 adding to this 136 of the people *6 to 1+6.
8. INTERPRETATION
"ustomer purchase *,6 of the Insurance product from the government company,
person trying to purchase146 of the insurance from the public limited company.
3. INTERPRETATION
2ifferent customer got to know about the &viva is from the various place <*6 of the
person buy &viva product because of the advice from friends.
C. INTERPRETATION
&s per our data suggested that 446 of the person want to go for the more than <+
years of the policy plan and 1<6 of the person will go for the 4, to <+ year of plan so
it is good to know that customer is going for the long term plan rather than short term.
D. INTERPRETATION
&s per our graph suggested that maximum people are able to invest either on 9s. ,++1
to 1++++ =r 4*+++ to *B it is very important to the company to Gudge the scenario
and launch a plan according to the data.
=. INTERPRETATION
&lmost C<6 of the people are aware about the /ew unit linked insurance plan which
is available in the market.
14. INTERPRETATION
&s per our study suggested that 436 of the customer investing in to the @ife insurance
investment plans while 4<6 of them are going for the @ife insurance investment 146
are for child plans so it is good sign for the &viva where this company has a presence
in these area.
-*
C+APTERGD
SUGGESTIONSERECOMMEN*ATIONS
-,
D.1 SUGGESTIONSERECOMMEN*ATIONS
The study has provided with the useful data from the respondents. There has a lot to
be recommended. >ollowing are the recommendationsI
There is a need for better promotion for the investment products N services. The
bank should advertise its products through television because it will reach to the
masses.
Aore returns should be provided on Insurance plans.
&s the bank provides the Insurance facility to its customers. It should provide this
facility by tie up with the other Insurance organizations as well. The main reason
is that, the entire customers do not want Insurance of only one company. They
should have choice while selecting a suitable Insurance plans. This will definitely
add to the goodwill N profit for the bank.
--
REFERENCESE%I%LIOGRAP+-
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REFERENCESE%I%LIOGRAP+-
%""9' and J"urna'
I92& &nnual 9eport 4++5+*
&viva Investor, Aarch 4++,
Brishnamurthy ( and others, UInsurance Industry in IndiaI (tructure, Performance,
and >uture "hallenges% 0ikalpa, 0olume <+, /o.<, July (eptember, 4++*
.arrick (andy, Aeasuring &nd "ontrolling Mour Investment 9isk% (ept 4++4
)upta /arendra, (avings and Investment =ptions% The @7A& Indian 7ullion
Aarket >orum F /ew 2elhi, <+<1 January 4++<
7rochures provided by the I"I"I Prudential
Bothari " 9, U9esearch and Aethodology Aethods N Techni8ues?, /ew &ge
International !P$ @td., 4++C+3
INTERNET 7E%SITE LINKS
www.avivabank.com
en.wikipedia.org1wiki1Aain Page
www.licindia.com
www.hdfcinsurance.com
www.maxnewyorklife.com
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ANNELURES
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ANNEXURE
0UESTIONNAIRE
A SURVE- ON MARKET SEGMENTATION FOR INSURANCE
IN*USTR-
2ear (ir1 Aadam,
I am a student of 77&. &s part of the re8uirements for my 2egree in 7usiness
&dministration I am re8uired to do a research based proGect. Bindly spend a few
minutes of your valuable time and fill in this 8uestionnaire. &ll the information
provided by you will be used only for academic purposes and will be strictly
confidential.
1. *" <"u "Hn a i!e in'uran&e ;"i&<E inBe'tment ;an in <"ur nameJ
!a$ Mes !b$ /o
6. I! <e' H#i&# &"m;an<E &"m;an<K' in'uran&e ;"i&ie' d" <"u #"dJ
!a$ #2>" (tandard !b$ 7irla (un @ife !c$ &viva @ife Insurance
!d$ 7aGaG &llianz !e$ @I" !f$ Tata &I)
!g$ I"I"I Prudential !h$ I/) 0ysya !i$ 7harti &xa
!G$ =thers !specify name$
5. 7#at i' t#e a;;r"Fimate ;remium ;aid b< <"u annua< (in Ru;ee')J
!a$ 9s. *+++ F 9s. 1++++ !b$ 9s. 1+++1 F 9s. 1*+++
!c$ 9s. 1*++1 F 9s. 453++ !d$ 9s. 4*+++ F 9s. *++++
!e$ 9s. *+++1 F 9s. ,++++ !f$ 9s. ,+++1 F 9s. C++++
!g$ 9s. C+++1 F 9s. 1+++++ !h$ more than 9s. 1+++++ !specify premium$
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@. 7#at 9ind "! in'uran&e ;"i&< H"ud 'uit <"u be't in <"ur &urrent 'ta:e "!
i!eJ
!a$ @ife Insurance !b$ @ife Insurance and Investment Plans
!c$ Pension Plans !d$ "hild Plans
!e$ Tax saving plans
8. Are <"u aHare "! t#e neH unit in9ed in'uran&e ;an' in t#e mar9etJ
!a$ Mes !b$ /o
3. +"H mu&# H"ud <"u be Hiin: t" ';end ;er annum i! <"u Here t" :" !"r
an inBe'tmentE in'uran&e ;anJ
!a$ @ess than 9s. ,+++ !b$ 9s. ,++1 F 9s. 1++++
!c$ 9s. 1+++1 F 9s. 4*+++ !d$ 9s. 4*++1 F 9s. *++++
!e$ 9s. *++++ F 9s. 1+++++ !f$ Aore than 9s. 1+++++
C. 7#i&# a&&"rdin: t" <"u i' an idea ;"i&< termJ (Number "! <ear' <"u
H"ud be Hiin: t" ;a< ;remium)
!a$ < to * years !b$ , to 3 years !c$ 1+ to 1* years
!d$ 1, to 4+ years !e$ 41 to 4* years !f$ 4, to <+ years
!g$ Aore than <+ years !h$ .hole life policy
D. 7#at m"tiBate' <"u t" ;ur&#a'e in'uran&eE inBe'tment ;an'J
!a$ &dvertisements !b$ #igh 9eturns !c$ &dvice from friends
!d$ >amily responsibilities !e$ =thers !specify$
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=. In H#i&# 9ind "! &"m;an< H"ud <"u ;re!er t" ma9e a ;ur&#a'e "!
in'uran&eJ
!a$ )overnment owned company !b$ Public @imited "ompany
!c$ Private "ompany !d$ >oreign based company
14. T<;i&a< H#at 9ind "! return' H"ud <"u ""9 at !r"m <"ur inBe'tment'J
!a$ @ess than *6 !b$ *6 1+ 6 !c$ 116 1* 6
!d$ 1,6 4+ 6 !e$ 416 4*6 !f$ 4,6 <+6
!g$ <16 5+6 !h$ 516 *+6 !i$ Aore than *+6
Per'"na *etai',
Name,
Gender,
o Aale
o >emale
A:e :r"u;,
o 1C F 4* years
o 4, F <* years
o <, F 53 years
o *+ F ,+ years
o &bove ,+ years
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Pr"!ie "! re';"ndent,
o (tudent
o #ousewife
o .orking Professional
o 7usiness
o (elf F 'mployed
o )overnment (ervice employee
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