CONTENT

Topic page no
DECLARATION
ACKNOWLEDGEMENT
PREFACE
EXECUTIVE SUMMARY
INTRODUCTION (CHAPTER-1)
COMPANY PROFILE (CHAPTER-2)
NESTKEYS
PNB METLIFE
FUTURE GENERALI
COMPANY PRODUCT
RESEARCH METHODOLOGY
(CHAPTER-3)
INTRODUCTION TO THE STUDY
RESEARCH OBJECTIVE
RESEARCH DESIGN
RESEARCH PROCESS
LIMITATIONS OF THE STUDY
SIGNIFICANCE OF THE STUDY
DATA AND INTERPRETATIONS
(CHAPTER-4)
FINDINGS AND CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRES
 DECLARATION

I, POOJA CHOUDHARY, a student of MBA at KIIT COLLEGE OF ENGINEERING,

GURGAON, hereby declare that I have undergone the internship on insurance sector at
NESTKEYS INFRATECH PVT. LTD. tie up with FUTURE GENERALI LIFE
INSURANCE AND PNB METLIFE

I also declare that the present summer training report is based on the above research and is my
original work. The content of the project report has not been submitted to any other university
either in part or in full for the award of any degree, diploma or fellowship.

Further , I assign the right to the college ,subject to the permission from the organisation
concemed , use the information and contents of this project to developed cases ,case lets, case
leads, and papers for publication and/or use in teaching.

Place: GURGAON POOJA CHOUDHARY

 ACKNOWLEDGEMENT

First a fall I would like to thank the management of NESTKEYS INFRATECH PVT.LTD. for
giving me the opportunity to do my two month project training esteemed organisation. I am
highly obliged to MR. ABHINAV SIR (franchisee development) , MR.KSHITIJ SIR (direct
sales support team) and my mentor MR. KULDEEP SIR for granting me to undertake my
training at GURUGRAM branch.

I express my thanks to all sales managers under whose able guidance and direction, I was able to
give shape to my training. Their constant review and excellent suggestions throughout the project
are highly commendable.

My heartfelt thanks go to all the executive who helped me gain knowledge about the actual
working and the process involved in various departments.
 PREFACE
The liberalization of the insurance sector has been the subject of Much heated debate for some
years. The policy makers where in the 22 situation wherein for one they wanted competition,
development And growth of this insurance sector which is extremely essential for channelling
the investment into the infrastructure sector. At the other end policy makers had the fares that the
insurance premia, which are substantial, would seep out the country; and wanted to have cautious
approach opening for foreign participation in the sector.

As one of the rare occurrence the entire debate was put on the back burner And the IRDA saw
the day of the light thanks to the maturity polity emerging Consensus among faction of different
political parties. Thought changes of Some restrictive clauses as regards to the foreign
participation were included The IRDA has open the doors for the private entry into insurance.

Whether the insurer is old or new. Private or public, expanding the market will Present multitude
of challenges and opportunity. But the of issue, possible Trends opportunities and challenges that
insurance sector will have still remain Under the realms of the possibility and speculation what is
the likely impact of Opening the Indias insurance sector? The large scale of operations , public
sector bureaucracies and cumbersome Procedures hampers nationalized insurers. Therefore ,
potential private Entrants expect to score in the area of customer services , speed and flexibility.
 EXECUTIVE SUMMARY

In todays corporate and competitive world , i find that insurance sector has the maximum
growth and potential as compared to the other sector. Insurance has the maximum growth rate of
70-80 % while as FMCG sector has maximum 12-15% of growth rate . this growth potential
attracts me to enter in the sector and NESTKEYS INFRATECH PVT.LTD. tie up with
FUTURE GENERALI LIFE INSURANCE AND PNB METLIFE company Ltd. has given
me the opportunity to work and get experience in highly and enhancing sector.

The success story of good market share of different market organization depends upon
the availability of the product and services near to the customer, which can be distribute
through a distribution channel .in insurance sector , distribution channel include only
agents or agency holder of the company. If a company like RELINCE LIFE
INSURANCE ,TATA AIG ,MAX etc have adequate agents in the market they can
capture big market as compare to the other company

Agents are only way for a company of insurance sector through which policies and
benefits of the company can explained to the customer.
INTRODUCTION
(CHAPTER) - 1
 INTRODUCTION TO THE INSURANCE
Everyone is exposed to various risks. Future is very uncertain, but there is way to protect ones
family and make ones childrens future safe. Life Insurance companies help us to ensure that
our familys future is not just secure but also prosperous. This study titled Study of Consumers
Perception about Life Insurance Policies enables the Life Insurance Companies to understand
how consumers perception differs from person to person. How a consumer selects, organizes
and interprets the service quality and the product quality of different Life Insurance Policies,
offered by various Life Insurance Companies.

BACKGROUND OF THE STUDY

Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against. Usually the insurance contract provides for the payment
of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate
death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other
things the contracts also provides for the payment of premiums, by the assured. Life Insurance is
universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty and
ensure timely aid for the family in the unfortunate event of the death of the breadwinner. In other
words, it is the civilized worlds partial solution to the problems caused by death. Life insurance
helps in two ways dealing with premature death, which leaves dependent families to fend for
themselves and old age without visible means of support.

KEY PLAYERS IN THE INSURANCE INDUSTRY

1. LIC

2. ICICI PRUDENTIAL

3. TATA AIG

4. BIRLA SUN LIFE INSURANCE

5. MAX NEW YORK

6. SAHARA LIFE

7. SBILIFE INSURANCE

8. AXA (AIRTEL, I.E. BHARTI GROUPS)

9. OM KOTAK

10. ALLIANZ BAJAJ

11. AVIVA
12. ING VYSYA

13. RELIANCE LIFE INSURANCE

14. METLIFE INSURANCE

15. SRIRAM SANLAM

16. HDFC STANDARD LIFE INSURANCE

Different Life Insurance Plans --

a) Protection plus savings plan

b) Protection plus Liquidity plan

c) Protection plus Asset Building plan

d) Investment Plan

e) Pension plan etc,

This study will help the companies to understand the consumers perception about different life
insurance policies.

BENEFITS OFLIFE INSURANCE POLICIES

Superior to any other savings plan:

Unlike any other savings plan, a life insurance policy affords full protection against risk of death.
In the event of death of a policy holder, the insurance company makes available the full sum
assured to policy holders near and dear ones. In comparison, any other savings plan would
amount to only the total savings plan accumulated till date. If the death occurs prematurely, such
savings can be much less than the sum assured which means that the potential financial loss to
the family is sizable.

Encourages and Forces Thrifts:

A saving deposit can easily be withdrawn. The payment of life insurance premium, however, is
considered sacrosanct and is viewed with the same seriousness as the payment of interest on a
mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

Easy settlement and protection against creditors:

A life insurance policy is the only financial instrument the proceeds of which can be protected
against the claims of a creditor of the assured by effecting a valid assignment of the policy.

Administering the Legacy for Beneficiaries:

Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several
policies have foreseen this possibility and provide for payment over a period of years or in a
combination of installments and lump sum amounts.

Ready Marketability and suitability for quick borrowing:

A life insurance policy can, after a certain time period (generally three years) be surrendered for
a cash value. The policy is also acceptable as a security for a commercial loan, for example, a
student loan.

Disability Benefits:
Death is not the only hazard that is insured; many policies also include disability benefits.
Typically, these provide for waiver of future premiums and payment of monthly installments
spread over a certain time period.

Accidental death Benefits:

Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if
death occurs as a result of accident

SCOPE OF THE STUDY

This study is limited to the consumers within the limit of Bangalore city. The study will be able
to reveal the preferences, needs, perception of the customers regarding the life insurance
products, It also help the insurance companies to know whether the existing products are really
satisfying the customers needs .

NEED FOR THE STUDY

The deeper the companys understanding of consumers needs and perception, the earlier
the product is introduced ahead of competition, the greater the expected contribution
margin. Hence the study is very important.
Consumer markets and consumer buying behaviour can be understood before sound
product and marketing plans are developed
 This study will help companies to customize the service and product, according to the
consumers need.
This study will also help the companies to understand the experience and expectations of
the existing customers.
Apart from creating, manufacturing and distribution capabilities for life insurance
products, an in depth study of the consumers, their preferences and demand for their
product is very necessary for setting up an efficient marketing network.

OBJECTIVE OF THE STUDY

Ascertain the profile and characteristics of potential buyers.

To gain a thorough understanding of the attributes that prospective buyers ascribe to life
insurance policies.
To have an insight into the attitudes and behaviour of customers.
To find out the differences among perceived service and expected service.
To produce an executive service report to upgrade service characteristics of life
insurance companies.
To understand consumers preferences.
To access the degree of satisfaction of the consumers with their current brand of
Insurance products.

HISTORY AND DEVLOPMENT OF LIFE INSURANCE

Life Insurance, in its present form, came to India from the United Kingdom with
establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,
followed by Bombay Life Assurance Company in 1823, the Madras Equitable Life
Insurance society in 1829 and Oriental Government security Assurance company in 1874.
Prior to 1871, Indian Lives were treated as sub-standard and charged an extra premium of
15% to 20% . Bombay Mutual Life Assurance Society, a Indian insurer which came into
existence in 1871 was the first to cover Indian lives at normal rates.

The Indian life Assurance Companies Act, 1912 was the first statutory measure to
regulate life insurance business. Later, in 1928, the Indian Insurance Companies Act was
enacted, to enable the government to collect statistical information about both life and
non-life insurance business transacted in India by Indian and foreign insurers, including
the provident insurance societies. Comprehensive arrangement was, however, brought
into effect with the enactment of the Insurance Act, 1938. Efforts in this direction
 continued progressively and the act was amended in 1950, making far-reaching
changes, such as requirement of equity capital for companies carrying on life insurance
business, ceiling on share holdings in such companies, submission of periodical return
relating to investments and such other information to the controller of insurance as he
many call for, appointment of administrator for mismanaged companies, ceiling on
expenses of management and agency commission, incorporation of the Insurance
association of India and formation of councils and committees there of.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies were
carrying online insurance business in India. On 19th January 1956, the management of
the entire life insurance business of 229 Indian insurers and provident insurance societies
and the Indian life insurance business of 16 non-Indian Life insurance companies then
operating in India, was taken over by the central Government and then nationalized on
1st September 1956 when the Life Insurance Corporation came into existence.

REFORMS AND IMPLECATIONS

The liberalization of the Indian insurance sector has been the subject of much heated debate for
some years. The sector is finally set to open up to private competition. The Insurance Regulatory
and Development Authority bill will clear the was for private entry into insurance as the
government is keen to invite private sector participation into insurance. To address those
concerns, the bill requires direct insurers to have a minimum paid-up capital of Rest. 1 billion, to
invest policy holders funds only in India; and to restrict international companies to a minority
equity holdings of 26 percent in any new company. Indian Promoters will also have to dilute
their equity holding to 26 percent over a 10 year period. Over the past three year, around 30
companies have expressed interest in entering the sector and many. foreign and Indian
companies have arranged alliances. Whether the insurer is old or new, private or public,
expanding the market will Present challenges. A number of foreign Insurance Companies have
set up representative offices in India and have also tied up with various asset management
companies

TYPES OF LIFE INSURANCE POLICIES

Whole life insurance

Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash values.
It is the least flexible form of permanent insurance.
 Universal life insurance

Universal life is similar to whole life, except that you can change the death benefit (the money
paid to the beneficiary when the insured person dies), the amount of premiums and how often
you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but itcan also give you the
best return for your money. Essentially, the life insurance company will invest your insurance
premiums for you. If the investments do well, the death benefit and cash value of the policy go
up. If they do poorly, they go down. It's a little like putting your

savings into the stock market.

Group life insurance

Many companies allow their employees to buy group life insurance through the company.
Usually, you can get very good rates for this insurance but you have to give the insurance up
when you stop working there. For that reason, group insurance can be a good way to buy a little
extra life insurance, but it does not make sense to make it your main policy.

Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period of time, if the
insured person dies during the term of coverage. These payments continue until the end of a time
period specified when the policy is purchased.

Family insurance.

A whole life policy that insures all the members of an immediate family husband, wife and
children. Usually the coverage is sold in units per person, with the primary wage-earner insured
for the greatest amount.

Senior life insurance.

Also known as graded death benefit plans, they provide for a graded amount to be paid to the
beneficiary. For example, in each of the first three to five years after the insured dies, the death
benefit slowly increases. After that period, the entire death benefit is paid to the beneficiary. This
might be appropriate if the beneficiary is not able to handle a large amount of money soon after
the death, but would be in a better position to handle it a few years later.

Juvenile insurance.

This is life insurance on a child. Coverage is paid for by an adult, usually the parents or
guardians. Such policies are not considered traditional life insurance because the child is not
producing an income that needs to be protected. However, by buying the policy when the child is
young, the parents are able to lock in an extremely low premium rate and allow many more years
of tax-deferred cash value build up.

Credit life insurance.

This insurance is designed to pay off the balance of a loan if you die before you have repaid it.
Credit life insurance is available for many kinds of loans including student loans, auto loans,
farm equipment loans, furniture and other personal loans including credit cards. Credit life
insurance can be purchased by an individual. Usually it is sold by financial institutions making
loans, like banks, to borrowers at the time they take out the loan. If a borrower dies, the proceeds
of the policy repays the loan directly to the lender or creditor.

Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance of a mortgage if you die
before the mortgage is paid off. Premiums are generally level throughout the term of the policy.
The policy is usually independent of the mortgage, meaning that the financial institution granting
the mortgage is separate from the insurance company issuing the policy. The proceeds of the
policy are paid to the beneficiaries of the policy, not the mortgage company. The beneficiary is
not required to use the proceeds to pay off the mortgage

Annuity

An annuity is a form of insurance that enables you to save for your retirement. Basically, you
give the insurance company money for a certain period of time, and then after you retire they
will pay you a certain amount of money every year until you die. There are many different forms
of annuities. Most people who buy annuities are 55 or older
 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance corporation of India was formed in September 1956 by passing LIC Act, 1956 in
Indian parliament. On the nationalization of the life insurance in 1956, the premium rating of
Oriental Government security life Assurance company were adopted by LIC with a reduction of
5% of the tabular premium or Re. 1 per thousand sum assured, whichever was less. This
reduction was made in anticipation of economies of scale that would emerge on the merger of
different insurers in a single entity. Life Insurance Corporation Of India - there are many things
to consider as Life Insurance Corporation Of India offers various insurance products which are
very complex, but underlying this complexity is a simple fact. The building blocks for all Life
Insurance Corporation Of India are (1) investment return; (2) mortality experience; and (3)
expense management; for your Life Insurance Corporation Of India.

LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore
generated by the insurance industry through group business in the year 2005-06, LIC alone
accounted for Rs 3051 crores. In the financial year 2005-06, LIC has grown at 30.68%. In
respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number
of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and
number of policies stands at 77% and 81%, respectively.

ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Private Limited entered the private life insurance industry
in India in September 2001, and in a span of 5 years has established itself as a distinctive life
insurance brand with an innovative, attractive and customer friendly product portfolio and a
professional advisor sales force. It has a dedicated and committed advisor sales force of over
21,000 people, working from 140 branches located in 74 major cities across the country and over
3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank
network. The Company has a customer

base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total
income in excess of Rs. 400 cr. and also has a share capital of Rs. 440 cr. ING Vysya Life
Insurance Company is headquartered at Bangalore and has established a strong presence in the
cities of Delhi, Mumbai, Kolkata, Hyderabad and Chennai. In addition ING Vysya Life operates
in Vizag, Vijaywada, Mangalore, Mysore, Pune , Nagpur, Chandigarh, Ludhiana and Jaipur.
ING Vysya Life has pioneered product innovations in the Indian life insurance market with
customer-oriented cash bonus endowment and money back products. (Reassuring Life and
Maximising Life), the first anticipated whole life product (Fulfilling Life) and the first
Term/Critical Illness combination product (Conquering Life). Conquering Life is an innovative
term and critical illness product that has been launched recently. Conquering Life provides
affordable term cover and critical illness coverage for 10 critical illnesses of upto 50% of the
Sum Assured.
ING Vysya Life Insurance is a joint venture between ING Insurance International BV a part of
ING Group, the world's largest life insurance company . ING Vysya Bank, with 1.5 million
customers and over 400 outlets and GMR Technologies and Industries Limited, part of GMR
Group also based in Bangalore and involved in the field of power generation, infrastructural
development and several other businesses. ING Vysya Life has a paid up capital of Rs.140 crores
and an authorised capital of Rs. 200 crores.

Tata-AIG Life Insurance

Tata-AIG Life Insurance company is a joint venture between the Tata Group and American
International Group Inc (AIG), the leading US-based international insurance and financial
services organisation and the largest underwriter of commercial and industrial insurance in
America. Its member companies write a wide range of commercial, personal and life insurance
products through a variety of distribution channels in approximately 130 countries and
jurisdictions throughout the world. AIGs global businesses also include financial services and
asset management, including aircraft leasing, financial products, trading and market making,
consumer finance, institutional, retail and direct investment fund asset.

management, real estate investment management, and retirement savings products. Areas of
business Tata-AIG Life Insurance products include a broad array of life insurance coverage to
both individuals and groups. For groups, the company has life products whereas for individuals,
it has term products, endowment products as well as money-back products. For groups and
individuals, various types of add-ons and options are available to given consumers flexibility and
choice.

HDFC STANDARD LIFE

The Partnership : HDFC and Standard Life first came together for a possible joint venture, to
enter the Life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life
purchased a 5% stake in HDFC, further strengthening the relationship.

The next three years were filled with uncertainty, due to changes in government and ongoing
delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the venture. In October
1998, the joint venture agreement was renewed and additional resource made available. Around
this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd.
(IDFC). Standard Life also started to use the services of the HDFC Treasury department to
advise them upon their investments in India. Towards the end of 1999, the opening of the market
looked very promising and both companies agreed the time was right to move the operation to
the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team
from HDFC to form the core project team, based in Mumbai.

ICICI PRUDENTIAL life insurance company

ICICI Prudential Life Insurance Company is a joint venture between ICICI, a premier financial
powerhouse and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential is
currently the No. 1 private life insurer in the country. For the financial year ended March 31,
2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of
Rs 13,780 crore and wrote nearly 615,000 policies Products offered by ICICI Prudential are.

KOTAK MAHINDRA Life Insurance Company

Kotak Mahindra Life Insurance Company Limited (OMKM), is a joint venture between Kotak
Mahindra Bank Ltd.(KMBL), and Old Mutual plc. At OMKM, the aim is to help customers take
important financial decisions at every stage in life by offering them a wide range of innovative
life insurance products, to make them financially independent. Jeene Ki Azaadi... The Products
offered by the Company are Individual Plan
COMPANY PROFILE
(CHAPTER)-2
Nest keys Nurtured with an idea to shake up the unorganized property market to a Need based
Property Solutions Specialist with team of business associates in this ever changing dynamic,
non regulated property space and to help them manage there customers investments grow with
right knowledge and skills.

Our philosophy is based on nurturing the right talent with imparting them the adequate
knowledge to deliver the right investment /property solutions to customer. The core team having
40 plus years of professional experience in understanding the Indian environment and setting up
new distribution channel and mentoring the associates with innovative investment solutions,
technology, operations and customer service management assistance to entrepreneurs entering
into property space and helping them managing there clients in a structured approach.

We truly believe in providing property solutions and a great customer experience, we as a team
feel that its right time to combine technology, great product and customer delight to give India a
Solution Specialist Teams. We are passionately driven by our Vision to being the Top Real
Estate Franchisee Provider, and a trusted brand.

Where our heart lies

NESTKEYS -:hold our associates, customers, employees, as well as our community in the
highest regard, where we incorporate both the needs of our company, as well as the needs of our
ever-changing world into our culture. Our core values are the backbone to our company which
resonate with our vision
People
We must be caring, show respect, compassion and humanity for our colleagues, associates and
customers around the world, and always work for the benefit of the communities we serve.

Integrity
Conducting our operations with integrity and with the respect for the each people, business
associate whom we touch in different juncture of our business journey.

Customer Delight
We are committed to foster customer centric culture where our processes, services and
innovations are aligned around customer/franchisee/business associate expectations.
Excellence
We must constantly strive to achieve the highest possible standards in our execution and in
the quality of the services we provide at affordable cost and need based solutions.
 Trust
We as team believe that the trust is the foundation of our relationship with our associates,
franchisee, customer and employees and we cultivate it every day by being accountable of every
single property transaction we offer.

Core team of NESTKEYS

Abhinav Director Franchisee Development An avid traveller and a

enthusiast whose focus is delivering promises and keeping his commitment, his focus is to
promote innovation and help distribution grow and attain its peak.

Amit Director Business Strategy A Fitness Freak focused on results,

experience in setting new distribution channel and laying the process to ensure smooth function
and assistance provided to felicitate the entire management team and associates

Kshitij Director Direct Sales Support Team A lovable person with

experience in direct sales and a motivator who believes in execution and is great in innovative
ideas to provide client interface
MetLife
PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life
insurance companies in India. PNB MetLife has as its shareholders MetLife International
Holdings LLC (MIHL), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited
(JKB), M. Pallonji and Company Private Limited and other private investors, MIHL and PNB
being the majority shareholders. PNB MetLife has been present in India since 2001.

PNB MetLife brings together the financial strength of a leading global life insurance provider,
MetLife, Inc., and the credibility and reliability of PNB, one of India's oldest and leading
nationalised banks. The vast distribution reach of PNB together with the global insurance
expertise and product range of MetLife makes PNB MetLife a strong and trusted insurance
provider.

PNB MetLife is present in over 115 locations across the country and serves over 100 million
customers in more than 8,700 locations through its strong bank partnerships with PNB, JKB and
KBL.

PNB MetLife provides a wide range of protection and retirement products through its Agency
sales of over 10,000 financial advisors and multiple bank partners, and provides access to
Employee Benefit plans for over 800+ corporate clients in India. The company continues to be
consistently profitable and has declared profits for last five Financial Years.

Companys Values

Personal Responsibility
Coming into your own", performs as a Leader to be really effective and successful by acting and
making decisions independently to get results.

People Count
It's all about People, MetLife's key resource. MetLife will succeed because we are winning from
within.

Partnership
Functioning productively in teams towards a common purpose; realising the collective power of
diverse work-groups.

Financial Strength
Operating with an intense dedication to managing monetary resources for strong business results.
 Integrity and Honesty
Conducting all business endeavours with truth, sincerity and fairness.

Innovation
Continuously creating and introducing new and original ideas and ways of doing things.

Services offered by the MetLife companies:

Life insurance

Annuities

Automobile and home insurance

Retail banking

Other financial services to individuals

Group insurance

Reinsurance

Retirement and savings products and services

 Key managment team

Ashish Kumar Srivastava

Principal Officer & CEO

OTHER KEYS PERSON

Niraj Shah
Chief Financial Officer

P K Dinakar
Appointed Actuary

Sanjay Kumar
Chief Investment Officer

Sarang Cheema
Chief Compliance Officer

Viraj Taneja
Chief of Internal Audit
Future Generali is a joint venture between the India-based Future Group and the Italy-based
Generali Group. Future Generali is present in India in both the Life and Non-Life businesses as
Future Generali India Life Insurance Co. Ltd. and Future Generali India Insurance Co. Ltd.

Future Group led by Mr. Kishore Biyani, is positioned to cater to the entire Indian
consumption space. The Future Group operates through six verticals: Future Retail
(encompassing all lines of retail business), Future Capital (financial products and services),
Future Brands (all brands owned or managed by group companies), Future Space (management
of retail real estate), Future Logistics (management of supply chain and distribution) and Future
Media (development and management of retail media spaces).

Generali group Established in Trieste on December 26, 1831, Generali is an international

group present in more than 40 countries with insurance companies and companies mostly
operating in the financial and real estate sectors. Over the years, the Generali Group has
reconstructed a significant presence in Central Eastern Europe and has started to develop
business in the principal markets of the Far East, including China and India. Identity Card
Generali Group ranks among the top three insurance groups in Europe and the 30th largest
company in the Fortune 500 international ranking, with a 2007 premium income of over 66
billions High rating assigned by the international rating agencies.

PEOPLE THAT MAKE THE DIFFERENCE

MR. G.N. BAJPAI

Chairman-Future Generali Vast experience in capital markets and insurance industry; Ex
chairman SEBI, LIC, recipient of many awards including Outstanding contribution to the
development of finance from PM Manmohan Singh.

Dr. Kim Chai Ooi

Country Manager-Future Generali He is the Country Manager of Future Generali. His previous
assignments and important career events include setting up Generali China Joint Venture
operations in 2001 and leading it towards achieving the status of Chinas No. 1 Foreign Insurer
in 2005

MR. JAYANT KHOSLA-MD & CEO

Future Generali Life An IIM Ahmedabad alumnus having diverse experience of more than 23
years in MNCs both in India and abroad, held leadership positions at India DHL, Cadbury
Schweppes, Coca Cola and Bharti Airtel

PRODUCTS OF FUTURE GENERALI INDIA LIFE INSURANCE

Future Generali Assured Income Plan:-

Future Generali Assured Income Plan provides guaranteed returns on your investments with
added benefit of protection. You have 2 Premium payment Options (11 pay and 15 pay). You get
a guaranteed Benefit from this plan for a term equal to the premium payment Term. Unlike other
traditional plans in the market, this plan is different in providing maturity benefit. The returns in
this plan is guaranteed. Death Benefit under this plan is not given as Lump sum benefit. Death
Benefit is paid as instalments for the next 11 years and 15 years.

Eligibility Criteria for Future Generali Assured Income Plan

7 years for 11 year policy

Minimum entry age
5 years for 15 year policy

Maximum entry age 50 years

Minimum age at maturity 18 years

Maximum age at maturity 65 years

Minimum premium Rs 35,000 per year

 Key Features of Future Generali Assured Income Plan

Non-linked, Non-participating Endowment

Plan type
Scheme

Plan basis Single/Individual

11 years
Policy term
15 years

Premium payment term Equal to policy term

Ranges between 17.5 to 34.5 times the

Maturity benefit
annualised premium

Premium payment
Annual payment
frequency

Loans can be availed once the policy acquires

Loan
surrender value

Policies which have been in force for a minimum

Surrender value
of 3 years are eligible for a surrender value

Policies purchased through distance marketing

can be returned within 30 days of purchase
Free look period
All other policies have a free look period of 15
days

Grace period 30 days

Revival is possible within two years of first

Revival/Renewal
unpaid due

Sum assured Depends on entry age and premium cost

Policy coverage Death Benefit, Maturity Benefit

 Benefits/Advantages of Future Generali Assured Income Plan

Future Generali Assured Income Plan comes with a number of benefits, a few of which are
mentioned below.

Tax gains Policyholders are eligible for tax exemptions under Section 80C of the
Income Tax Act.
Assured income Policyholders are entitled to an assured pay out after premiums
have been paid.
Maturity benefit A maturity benefit will be paid after the policy matures. This
benefit will be paid in annual instalments, for a period equivalent to the policy term.
Your Benefits 11-year Term 15-year Term

Maturity Benefits A:11 annual instalments of 1.5 A:15 annual instalments of 2

times your annualised premium times your annualised
from the end of the 12th year to the premium from the end of the
end of 22nd year 16th year to the end of 30th
+ year
B:Additional Benefits at the end of +
the 22nd year (based on age at B:Additional Benefits at the
entry) end of the 30th year (based on
age at entry)

Total Benefits 17.5 to 21 times of annualised 31 to 34.5 times of annualised

premium (depending upon the age premium (depending upon the
when you purchased the policy ) age when you purchased the
policy)

Option To Receive Available Available

Maturity Benefits In
Monthly
Instalments

Death benefit The nominee will receive a death benefit in the event of demise of
policyholder. The Death Sum Assured shall be highest of the following:
10 times annualised premium (excluding taxes and extra premiums, if any), or
 105% of total premiums paid (excluding taxes and extra premiums, if any) as on date of
death, or
Maturity Sum Assured In case of your unfortunate demise any time during the Policy
Term, the Death Sum Assured will be payable to your nominee as under:

Your Benefits 11-year Term 15-year Term

Death Benefits A:11 annual instalments of 1.5 A:15 annual instalments of 2

times your annualised premium. times your annualised
The first instalment will be paid
premium. The first instalment
to the nominee after the will be paid to the nominee
settlement of claim and the after the settlement of claim
remaining 10 instalments will and the remaining 14
be paid on each subsequent instalments will be paid on
death anniversary of the Life each subsequent death
Assured. anniversary of the Life
Assured.
+B:Additional Benefits shall be +B:Additional Benefits shall
payable along with the last be payable along with the last
annual instalment. annual instalment.

Total Benefits 17.5 to 21 times of annualised 31 to 34.5 times of annualised

premium (depending upon the premium (depending upon the
age when you purchased the age when you purchased the
policy) policy)

Auto cover Post the payment of 3 premiums, policyholders will be eligible for auto
cover, wherein they get an automatic cover of 1 year if they are unable to pay the
premium within the grace period.
Loan Policyholders can avail a loan against their policy, ensuring they have a
contingency plan to meet emergencies.

Working of Future Generali Assured Income Plan

Eligible individuals need to follow a few simple steps to activate this plan, which is explained
through the example of Mr.Ravi, an animation artist. Jacob decides to buy this policy for himself
on his 40th birthday. He chooses a policy term of 15 years, paying an annual premium during
this period. The sum assured opted by him is Rs 10 lakhs.
Let us consider the following scenarios to understand how this Future Generali Guaranteed
plan works.

Scenario 1: Ravi pays the premium regularly, with the policy maturing after 15 years. In this
case, he will receive 15 annual instalments equivalent to two times the annualised premium paid
by him. These instalments will be paid from the 16th year onwards. In addition to this, he will
also receive an additional benefit after these instalments have been paid.

Scenario 2: Ravi passes away 5 years after purchasing the plan. In this case, his nominee will
receive an immediate death benefit equivalent to two times the annual premium paid. In addition
to this, the nominee will also receive annual payments for 14 years after his death.

Premium Payment

Policy term Premium payment Premium payment

term frequency

11 years 11 years Annual

15 years 15 years Annual

GST of 18% is applicable on life insurance effective from the 1st of July, 2017
 Future Generali Assure Plus Plan

Securing the financial needs of our loved ones is a primary concern for most of us, with the
unpredictability surrounding life making it necessary to invest in a good plan. Future Generali
Assure Plus is a specialised product which offers an insurance cover to ensure that the future of
your family is secure, regardless of what happens in life. This is a participating, non-linked
endowment plan which offers peace of mind and financial stability to individuals.

Eligibility Criteria for Future Generali Assure Plus

Minimum entry age 3 years

Maximum entry age 55 years

Minimum age at maturity 18 years

Maximum age at maturity 70 years

Minimum premium Rs 12,000 per year

 Key Features of Future Generali Assure Plus

Plan type Participating, non-linked, endowment policy

Plan basis Single/Individual

15 years
Policy term 20 years
25 years

Premium payment 7/10/12 years for 15 year term

term 10/12/15/17 years for 20 year term
12/15/17/20 years for 25 year term

A maturity benefit equivalent to the sum

Maturity benefit
assured plus all bonuses accrued will be paid

Premium payment
Monthly, quarterly, half-yearly or yearly
frequency

Loan No loan facility available

Surrender value will be paid after policy has

Surrender value
been in force for a specific time period

Policies sold through distance marketing

Free look period have a 30 day free look period
All other policies have a free look period of
15 days

30 days for quarterly, half-yearly or yearly

Grace period payment modes
15 days for monthly payment mode
 A lapsed policy can be revived by paying all
premiums and any fine/interest. Revival is
Revival/Renewal
possible only within 2 years of first unpaid
premium

Minimum Rs 1 lakh
Sum assured
Maximum Rs 5 crore

Policy coverage Death Benefit, Maturity Benefit

Benefits/Advantages of Future Generali Assure Plus

Flexibility Individuals can choose a policy term which matches their needs, having
additional flexibility in terms of premium payment modes, premium payment terms and
the amount they wish to invest every year.

High sum assured One can avail cover to the tune of Rs 5 crore under this policy.

Tax benefits Policyholders are entitled to tax benefits under Section 80C of the
Income Tax Act
.
Maturity benefits A maturity benefit equivalent to the sum assured plus all accrued
bonuses will be paid once the policy completes its term.In case the Life Assured survives
till the end of the Policy Term, provided all due premiums have been paid, the Sum
Assured plus accrued bonus and Terminal Bonus, (if any) will be payable. The policy
terminates on the payment of Maturity Benefit.

Death benefit In the event of unfortunate demise of a policyholder during the policy
term, his/her nominee will receive a death benefit comprising the death sum assured and
all bonuses accrued.In case of an unfortunate demise of the Life Assured during the
Policy Term, provided all due premiums have been paid till the date of death, the benefit
payable to the nominee is the higher of Death Sum Assured plus vested bonus plus
Terminal Bonus, if any.105% of total premiums paid (excluding Goods &
Services Tax, extra premiums, if any).
Where Death Sum Assured is higher of:
-Sum Assured, or
 -10 times the annualized premium if age of the Life Assured is less than 45 years or 7
times the annualized premium if age of the Life Assured is greater than or equal to 45
years
Discounts Individuals who opt for a high sum assured are entitled to discounts on
their premiums.
Bonus Each policy is eligible to earn a bonus, thereby offering higher returns.

Working of Future Generali Assure Plus

Let us consider the example of Mr. Rakesh to understand the working of this plan. Rakesh is a
software engineer working for a reputed firm. He is married and has two children aged 4 and 5
year. He decides to opt for this plan on his 40th birthday, choosing a 20 year policy, with the sum
assured being Rs 25 lakhs. He pays an annual premium for 10 years towards this policy.

Let us consider the following scenarios to understand how this Future Generali life plan works.

Scenario 1: Rakesh passes away 15 years after buying the policy. All premiums were paid by
him before his death. In this case, his nominee will receive a death benefit which is equal to the
death sum assured plus all bonuses accrued until death.

Scenario 2: The policy matures after 20 years, with Rakesh and his family leading an eventful
life. In this case, he will receive a maturity benefit which includes the sum assured and bonuses
accrued over the policy term.

Premium Payment

Premium Payment
Policy Term Premium Payment Frequency
Terms

Yearly, half-yearly, quarterly or

15 years 7, 10 or 12 years
monthly

Yearly, half-yearly, quarterly or

20 years 10, 12, 15 or 17 years
monthly

Yearly, half-yearly, quarterly or

25 years 12, 15, 17 or 20 years
monthly
GST of 18% is applicable on life insurance effective from the 1st of July, 2017

UNIT LINK INSURANCE PLAN FUTURE GENERALI Easy Invest

Online Plan

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike
a pure insurance policy, gives investors both insurance and investment under a single integrated
plan.
A Unit Link Insurance Plan is basically a combination of insurance as well as investment. A part
of the premium paid is utilized to provide insurance cover to the policy holder while the
remaining portion is invested in various equity and debt schemes. The money collected by the
insurance provider is utilized to form a pool of fund that is used to invest in various markets
instruments (debt and equity) in varying proportions just the way it is done for mutual funds.
Policy holders have the option of selecting the type of funds (debt or equity) or a mix of both
based on their investment need and appetite. Just the way it is for mutual funds, ULIP policy
holders are also allotted units and each unit has a net asset value (NAV) that is declared on a
daily basis. The NAV is the value based on which the net rate of returns on ULIPs are
determined. The NAV varies from one ULIP to another based on market conditions and the
funds performance.

Maturity benefit:-

On maturity of the policy, the Fund Value (market value of the investment) is paid Let's
understand this benefit with the help of an example:

Ankit aged 35 years has purchased a Future Generali Easy Invest Online Plan for a Policy Term
of 15 years. He decided to pay 50,000 as annual premium for 15 years. His Sum Assured
coverage would be
5, 00,000. The illustration below shows his Maturity Benet.
Note:

Settlement Option is an option to receive the proceeds of Maturity Benefit in periodical

payments, instead of Lump Sum.

TargetGroup
For customers looking for a tax saving systematic investment solution which helps to get market
linked returns along with benefits of insurance

Death benefit:-

Higher of:
Sum Assured less deductible Partial Withdrawals, if any, OR
Fund Value under the policy OR
105% of the total premiums paid till date of death

Let's understand this benefit with the help of an example:

Ankit aged 35 years has purchased a Future Generali Easy Invest Online Plan for a Policy Term
of 15 years. He decided to pay 50,000 as annual premium for 15 years. His Sum Assured
coverage would be
5, 00,000. In case of Ankits unfortunate death after he has paid 5 premiums, the below
illustration shows what his nominee gets:
Note:Deductible Partial Withdrawals are Partial Withdrawals made 2 years prior to the date of
death of the Life Assured, in case of death before 60 years. In case of death after attaining 60
years, Partial Withdrawals made under the policy two years before attaining 60 years as well as
all Partial Withdrawals after attaining 60 years will be considered as deductible Partial
Withdrawal.

TargetGroup
For customers looking for a tax saving systematic investment solution which helps to get market
linked returns along with benefits of insurance

LoyaltyAddition:-
Staying invested throughout the Policy Term will help you get Loyalty Additions as a percentage
of average Fund Value. All you need to do is to ensure that you have paid all your due premiums
on time and your policy is active on the date of payment of Loyalty Additions. Loyalty Additions
shall be added to the Fund Value on the applicable Policy Anniversary. However, the last (nal)
Loyalty Addtion shall be payable on date of maturity.

Policy Term

Loyalty Additions as % of average Fund value payable on the last 5 Policy Anniversaries.
 For the purpose of calculation of Loyalty Additions, except the last Loyalty Addition, the
average Fund Value shall be simple average of Fund Values on the last day of previous eight
calendar quarters, prior to the Policy Anniversary in which the Loyalty Additions are
payable.For the purpose of calculation of last loyalty addition, the average fund value shall be
simple average of fund values on the last day of previous eight calendar quarters, prior to the
date of Maturity.

Target Group
For customers looking for a tax saving systematic investment solution which helps to get market
linked returns along with benefits of insurance

ELIGIBILITY:-

PARAMETER CRITERION

Entry Age (as on last Minimum: 0 years

birthday) Maximum: 50 years

Maturity Age Minimum: 18 years

Maximum: 70 years

Premium to be paid Minimum:

Annual Mode - 40,000
Monthly Mode - 4,000
Maximum: No Limit

Policy Term 10 to 20 years

Premium Payment Term Same as Policy Term

Sum Assured Sum Assured = 10 x Annual Premium

 Premium Payment Annual/Monthly. Monthly premiums can only be paid by Auto
Frequency Pay System. Auto Pay methods of payment are available in all
premium modes.

Option of funds

Equity Funds: In this type funds, sometimes also called growth funds, there would be
more investments in equities which are shares/stocks traded in the stock market.

Debt Funds: In this type of funds, also called bond fund, the investments are primarily
in Government and Government guaranteed securities and such safe debts and other high
investment grade corporate bonds

.
Money Market Funds: In this type of fund, sometimes also called liquid fund, the
investment may be more in short-term money market instruments such as treasury bills,
commercial papers, etc.

Balanced funds: In this type of funds, the investments are in both equity as well as
debts. All these funds will remain invested in a mix of instruments, the differences being
mainly in the proportions in various kind of instruments. One fund may have more of
debt instruments, which guarantee a certain fixed return, while another fund will have a
larger proportion of equity shares, which may appreciate in value more than debt
instruments. Insurers use different names to differentiate between the funds.Insurers
allow policyholders to switch their moneys from one fund to another during the term of
the policy. Some insurers charge a fee for every such switch. Some others allow a certain
numbers of switches free and then charge a fee for every switch thereafter.

The things we must know about ULIPs:

ULIPs offered by different insurers have varying charge structures. Broadly the different types of
fees and charges are given below. However the insurers have the right to revise or cancel the fees and
charges over a period of time.

Charges of ULIPs:

Policy/ Administration Charges:- The Policy Administration Charges expressed

as a percentage of premium is 0.1% of Annualised Premium per month subject to a
minimum of 50 p.m. and maximum of 500 p.m. The Policy Administration Charges
 given above are deducted from the unit account on monthly basis at the beginning of each
monthly anniversary (including the policy commencement date) of a policy by
cancellation of units.

Mortality Charges:-These are charges to provide for the cost of insurance coverage
under the plan. Mortality charges depend on number of factors such as age, amount of
coverage, state of health etc.

Premium Allocation charges:-The Premium Allocation Charge as a percentage of

Annualised Premium is as per the table below: Premium Allocation Charges are
deducted from premiums paid and the premiums, net of premium allocation charges, are
used to purchase units in any of the ve underlying funds.

Fund Management Charges:-Fund Management Charges are deducted on a daily

basis at 1/365th of the annual charge in determining the unit price.

FUND MANAGEMENT CHARGE (% PER ANNUM)

Future Income Fund 1.35%

Future Balance Fund 1.35%

Future Apex Fund 1.35%

Future Opportunity Fund 1.35%

Future Maximise Fund 1.35%

Surrender Charges:-A surrender charge may be deducted for premature partial or full
encashment of units wherever applicable, as mentioned in the policy conditions. Insurers levy
certain charges if the policy is surrendered prematurely. This levy varies between insurers and
could be around 75 per cent in the first year, 60 percent in the second year, and 40 per cent in the
third year and nil after the fourth year.

Partial withdrawal charge:-Four free Partial Withdrawals are allowed each policy
year. Subsequent Partial Withdrawal in a policy year shall attract a charge of 200 per
withdrawal.

Service Tax Deductions-Before allotment of the units the applicable service taxis
deducted from the risk portion of the premium.
 Risk charges:-The charges are broadly comparable across insurers.

Asset management fees:-Fund management charges vary from 0.6 per cent to0.75
per cent for a money market fund, and around 1.5 per cent for an equity-oriented scheme.
Fund management expenses and the brokerage are built into the daily net asset value.

Top-ups:--Usually attracts 1 per cent of the top-up amount. Top-up normally goes
directly into your investment account (units) unless you specifically ask for an increase in
the risk cover.
RESEARCH METHODOLOGY
(CHAPTER)-3
INTRODUCTION
About the project
The project deals with comparative analysis of different insurance products offered by insurance
companies.

Purpose of the project

The main purpose of the project is to do comparative analysis of different insurance products,
check the awareness level and perception of insurance by the individuals. The project would also
help in understanding preference of people regarding private and public insurance companies.
The main objective of the research is

Making comparative analysis between:-

i) Birla sun life insurance with life insurance Corporation of India.

ii) Birla sun life insurance with Tata AIG life insurance.

iii) National Health Plan with Reliance Health Wise Policy.

Finding out the features and benefits of these plans

To find out the awareness level of insurance in Kolkata

To determine customer preference towards private insurance companies and public

insurance companies.

Marketing of different insurance products.

Scope of the project

The entry of foreign MNCs and the conductive business environment fostered by the
government, it is no wonder that the re-entry of private insurance has marked a second coming
for the sector. In just five years, the sector has undergone a makeover, offering more choice,
better services, quicker settlement, tighter regulation and greater awareness s the environment
become more and more competitive and services and products become alike, creating a
differentiation is becoming extremely tough. Thus, the main objective of my project was to find
out the preference of people regarding insurance companies, which would help karvy employees
to market their product. The study then goes on to evaluate and analyze the findings so as to
present a clear picture of recent trends in the Insurance sector.
Life Insurance Corporation Act, 1956
Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life
insurance in India was completely nationalized, through a Government ordinance; the Life
Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, inter-
alia, form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into
one entity. There were 245 insurance companies of both Indian and foreign origin in 1956.
Nationalization was accomplished by the govt. acquisition of the management of the companies.
The Life Insurance Corporation of India was created on 1 September, 1956, as a result and has
grown to be the largest insurance company in India as of 2006 .

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize the 100
odd general insurance companies and subsequently merging them into four companies. All the
companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance,
and United India Insurance which were headquartered in each of the four metropolitan cities.

Insurance Regulatory and Development Authority (IRDA) Act,

1999
Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt.
of India then introduced the Insurance Regulatory and Development Authority Act in 1999,
thereby de-regulating the insurance sector and allowing private companies into the insurance.
Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance
companies. In recent years many private players entered in the Insurance sector of India.
Companies with equal strength started competing in the Indian insurance market. Currently, in
India only 2 million people (0.2 % of total population of 1 billion), are covered under Medi
claim, whereas in developed nations like USA about 75 % of the total population are covered
under some insurance scheme. With more and more private players in the sector this scenario
may change at a rapid pace

Different Insurance Companies

Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance
industry, in this year the life insurance industry was liberalized after more than fifty years.
Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise.
But nowadays the market opened up and there are many private players competing in the market.
There are fifteen private life insurance companies has entered the industry. After the entry of
these private players, the market share of LIC has been considerably reduced. In the last five
years the private players is able to expand the market (growing at 30% per annum) and also has
improved their market share to 18%. For the past five years private players have
launched many innovations in the industry in terms of products, market channels and
advertisement of products, agent training and customer services etc.

The various life insurers entered India:-

1. Bajaj Allianz Life Insurance Company Limited

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd.

5. ING Vysya Life Insurance Company Ltd.

6. Max New York Life Insurance Co. Ltd

7. Met Life India Insurance Company Ltd.

8. Kotak Mahindra Old Mutual Life Insurance Limited

9. SBI Life Insurance Co. Ltd

10. Tata AIG Life Insurance Company Limited

11. Reliance Life Insurance Company Limited.

12. Aviva Life Insurance Co. India Pvt. Ltd.

13. Sahara India Life Insurance Co, Ltd.

14. Shriram Life Insurance Co, Ltd.

15. Bharti AXA Life Insurance Company Ltd.

16. Future General Life Insurance Company Ltd.

17. IDBI Fortis Life Insurance Company Ltd.

18. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

19. AEGON Religare Life Insurance Company Limited.

20. DLF Pramerica Life Insurance Co. Ltd.

21. Star Union Dai-ichi Life Insurance Comp. Ltd.

The various other general Insurance Companies are as under:-

1. National Insurance Company Limited.

2. Reliance General Insurance.

3. Star Health Plus Insurance.

4. Oriental Insurance Company.

5. United India Insurance Company Ltd.

6. New India Assurance Company Ltd.

7. Bajaj Allianz General Insurance Company Ltd.

8. Universal Sompo Insurance Company Ltd.

9. Future General Insurance Company Ltd.

10. ICICI Lombard General Insurance Ltd.

ADVANTAGES OF LIFE INSURANCE

i) Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death the full
sum assured is made available under a life assurance policy, whereas under other savings
schemes, the total accumulated savings alone will be available.

ii) Protection during old age

Life insurance can also be used as a means of saving for ones future. There are a
number of life insurance policies, which in addition to life cover also provide the means of
investing ones income. The sum as per the policy will be received only after a period of time.
This amount thus provides for the old age.

iii) Forced savings

Payment of life insurance premiums is compulsory and becomes a habit. Savings in
other scheme can be easily withdrawn and may be used for less worthy purpose. Termination of
a life insurance policy by the policyholder usually results in substantial loss in benefits under the
policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

iv) Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect
of loans advanced for educational purpose or to provide donations to charitable institutions like
hospital and school.

v) Nomination and assignment

The life insured can name the person or persons to whom the policy money would be
payable in the event of his death .the proceeds of a life insurance policy can be protected against
the claims of the creditors of the life insured by effecting a valid assignment of the policy. The
beneficiaries are fully protected from creditors expect to the extent of any interest in the policy
retained by the insured.21Marketability and suitability for borrowing

After 3 years, if the policyholder finds that he is unable to continue payment of

premiums he can surrender a policy for a cash sum. A life insurance policy is accepted as a
security for a commercial loan.

vi) Loans from the insurance company

A policy holder can take a loan from his insurance company against the Security of
his life insurance policy provided the terms of the terms of his policy allow such a loan. This
loan can be taken usually after a period of 3 years from commencement of the policy and is a
percentage of its surrender value.

vii) Investment options

The unit link products gives comprehensive insurance solutions that cater to an
individuals dual need of earning potentially high returns as well as stay for life. Thus there is an
option to invest money in the products that combine the best of insurance and investment. In a
volatile market conditions it is possible to secure both as one can hedge the investment with
saver investment vehicles that provide a diversified portfolio.

viii) Tax benefits

The Indian income tax act provides tax concessions to the policyholder both on
payment of premium and on the maturity amount. Under sec 88 the tax benefits on premium paid
by an individual for life insurance policies on his own life\on the life of spouse \children minor
or major, including married daughters.

Under sec 6 of the married womens property act if a married man takes a policy of life
insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his
wife and children or any of them, then it shall be deemed to be a trust for the benefit of his wife
and children or any of them, According to the interest so expressed and shall not so long as any
object of trust remains be subject to the control of the husband or to his creditors or form part of
his estate. An insurance policy taken by a married man in the above manner is ideal way to
protect the interest of his wife and children, even after his untimely death.

Types of insurance products

Term assurance plan- In insurance language this is a pure risk cover and can be
described as an insurance or risk management product in its purest and simplest form. In case of
your untimely death, your dependents will receive the risk-cover amount or the sum assured.
On the other hand, there is no survival benefits if you survive the policy term, and you also do
not get back the premiums paid.

Endowment assurance plans- It is a traditional investment-cum-insurance plan. In other

words, it provides both life cover (in the event of death of life insured) or maturity benefits if
he/she survives the policy term. Endowment plans are typically front-loaded. Therefore it makes
sense for you to remain in the policy for at least 12-15 years.

Money-back policy- It is a variant of the endowment assurance policy-the difference is that

you get the survival benefits intermittently over the life of the policy. Thus taking care of his
lump-sum monetary requirements to enable him to meet his financial goals and major
commitments. The maturity benefit is the sum assured value less the survival benefits already
paid under the policy, plus bonuses accrued, if any. In case of untimely death the nominee will
receive the entire sum assured without considering the payouts already made to you before the
unfortunate death.

Whole life plan- This policy provides the life assurance cover for almost the entire life. Most
of the insurance companies provide protection up to the age of 100 years. The sum assured is
paid to you once you reach this age, and the policy is terminated. In this payment of premium is
for whole life, and the sum assured is paid to your nominee in the event of your death. In other
words, this is equivalent to a term plan over your lifetime.

Pension plan- A pension plan can be looked as more of an investment product offered by
insurers to cater to the golden retirement years of an individual. Also referred to as retirement
plans, these are designed to ensure that you are financially independent during your retirement
years. Most of the pension plans also provide an optional life assurance cover in them.

Child plan- It basically aims at ensuring the achievement of life goals of your child. The goal
can be higher education, financial help in establishing a business or profession, or even marriage.
In a child plan, the life assured can be the parent or the child. The beneficiary for the policy,
however, is the child. As a child is a minor, the life insurance contract is between the parent and
the insurance company. In case of early death of the parent, the premium payment is waived off
by the insurance company and the policy continues as originally planned.

Unit Linked Insurance Plan- ULIPs have been the darling of insurance companies,
intermediaries and the insured population alike over the last five years. The main reason for this
popularity is the twin advantage of a pure life cover (insurance component) and a range of
investment funds or options (savings component) to match your risk profile. While the pure life
cover provides the much needed financial security to your dependents in the event of your
untimely death, the savings component allows you to participate in the capital markets and build
wealth over the long-term tenure of the policy.

Changing face of Indian insurance industry

Indian life-insurance market is the target market of all the companies who either want to
extend or diversify their business. To tap the Indian market there has been tie-ups between the
major Indian companies with other International insurance companies to start up their business.
The government of India has set up rules that no foreign insurance company can setup their
business individually here and they have to tie up with an Indian company and this foreign
insurance company can have an investment of only 24% of the total start-up investment. Indian
insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.
Growth of customers interest with an increasing demand for better insurance products.
Application of information technology for business.
 Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making
strides in raising awareness levels, introducing innovative products and
increasing the penetration of life insurance in the vastly underinsured country. Several of private
insurers have introduced attractive products to meet the needs of their target customers and in
line with their business objectives

India: The Next Insurance Giant

Market Performance & Forecast: In 2000, Indian insurance market size was $21.71 billion.
Between 2000 and 2007, it had an increase of 120% and reached $47.89 billion. Between 2000
and 2007, total premiums maintained an average growth rate of 11.96% and the CAGR growth
during this time frame has been 11.96%. It was one of the most consistent growth patterns we
have noticed in any other emerging economies in Asian as well as Global markets.
 Indian Insurance Market
Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in
terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising
foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is
on the fulcrum of an ever increasing growth curve.

Insurance is one major sector which has been on a continuous growth curve since the revival of
Indian economy. Taking into account the huge population and growing per capita income besides
several other driving factors, a huge opportunity is in store for the insurance companies in India.
According to the latest research findings, nearly 80% of Indian population is without life
insurance cover while health insurance and non-life insurance continues to be below
international standards. And this part of the population is also subjected to weak social security
and pension systems with hardly any old age income security. As per our findings, insurance in
India is primarily used as a means to improve personal finances and for income tax planning;
Indians have a tendency to invest in properties and gold followed by bank deposits. They
selectively invest in shares also but the percentage is very small 4-5%. This in itself is an
indicator that growth potential for the insurance sector is immense. Its a business growing at the
rate of 15-20% per annum and presently is of the order of $47.9 billion.

India is a vast market for life insurance that is directly proportional to the growth in premiums
and an increase in life density. With the entry of private sector players backed by foreign
expertise, Indian insurance market has become more vibrant. Competition in this market is
increasing with companys continuous effort to lure the customers with new product offerings.
However, the market share of private insurance companies remains very low -- in the 10-15%
range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance
sector. The heavy hand of government still dominates the market, with price controls, limits on
ownership, and other restraints.

Major Driving Factors

Growing demand from semi-urban population

Entry of private players following the deregulation

Rising demand for retirement provision in the ageing population

The opening of the pension sector and the establishment of the new pension regulator

Rising per capita incomes among the strong middle class, and spreading affluence

Growing consumer class and increase in spending & saving capacity

Public private partnerships infrastructure development

Dearth of innovative & buyer-friendly insurance products

Success of Auto insurance sector

Emerging Areas

Healthcare Insurance & Pension Plans

Mutual fund linked insurance products
Multiple Distribution Networks .i.e. Bank assurance

The upward growth trend started from 2000 was mainly due to economic policies adopted by the
then Indian government. This year saw initiation of an era of economic liberalization and
globalization in the Indian economy followed by several reforms and long-term policies that
created a perfect roadmap for the success of Indian financial markets. On the basis of several
macroeconomic factors like increase in literacy rate & per capita income, decrease in death rate
and unemployment, better tax rebates, growing GDP etc., we estimate that the Indian insurance
sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a CAGR (compounded
annual growth rate) of 12.44% and a growth of 59.82%.

Valuing the invaluable

Both under insurance and over insurance can often be attributed to the lack of proper
understanding of the exact insurance needs for oneself and the family, and the failure to spot and
cover all liabilities properly and adequately, or being over-conservative in this regard.

Under Insurance
Under insurance, typically occurs when the existing financial liabilities and insurance needs are
fully taken care of. In the event of the untimely death of the only (or the main earning) member
of the family, his financial liabilities would obviously fall on his dependents, leaving them in a
state of financial distress that could threaten their need of sustenance.

Over Insurance

Conversely, there are also instances where individuals indulge in life insurance covers that far
exceed in value than what is actually required. This is a classic case of over insurance, which
leads to an unnecessarily higher premium payment, leaving you much poorer. It results in
unnecessary expenditure that could otherwise be wisely invested elsewhere.

The need for an adequate insurance cover is never static and keeps on varying with changes in
the life stages and important events of an individual. The table below provides an insight into the
various life stages and events when life insurance cover usually requires a revision.
Life stage Requirement for a life insurance cover
Start work life An individual usually does not have any dependent like spouse or children,
thus allowing the need to take a life cover. However, if your parents are
dependents then you need to take appropriate life cover on their behalf.

Moreover, you may have taken a loan to finance your higher education or
professional studies or purchase a car. You should take a suitable insurance
cover so that in the event of your untimely death, the burden of EMI
payments does not pass to your parents or other members of the family.

Recently married Marriage requires a revision of your insurance needs. This can take a form
of increase in life cover, taking into considerations an expected increase in
expenses and repayment of liabilities, if any. Also, an insurance cover on
the life of the spouse, although for a lesser amount, can be considered.

However, if both the husband and the wife are working, the extent and
value of life insurance coverage on both lives will depend on their
respective remuneration packages, personal liabilities, as well as extent of
financial dependence on one another.
Birth of children The arrival of a child brings with it a great amount of responsibility. At this
stage, a revision of insurance needs is based mainly on securing the
financial needs of the child up to the time he/she has grown up and settled
in life.
Purchase of a Purchasing a house is a major financial decision not only on regard to the
choice of property but also in regard to the commitment for repayment of
house, car, etc the loan availed to finance the property. Therefore, you should take out a
mortgage redemption plan to the extent of the outstanding loan amount.

Purchasing a car through a vehicle loan, too, calls for a life cover of the
borrower to the extent of the outstanding loan. The same holds good for any
other asset or event which has been financed by a loan.
Loan taken for The loan taken to set up or enhance your profession or business should be
fully covered.
business/profession

Busting some insurance myths

With a range of products flooding the market, people today are more confused about insurance
than ever. Here are a bagful of myths floating around and I have made an effort to bust a few of
the significant ones.

1. I dont want to put my hard-earned money into a pure term assurance plan if I dont even
get back all the premiums paid on survival of the term.

A pure term assurance plan is a risk mitigation tool and not an investment
product. In the event of your untimely death during the policy term, your
 dependents get a sum assured to enable them to continue living their existing
lifestyle, repay loan liabilities and meet long-term financial goals. To achieve this,
you only need to pay a premium amount that is a fraction of the sum assured.
Moreover unlike investments, where it takes years to build a suitable corpus, the
sum assured on your insurance policy is payable, in the event of your untimely
death, from the date of its commencement.

2. It would be enough if only the main breadwinner of the family takes life insurance.

While the main breadwinner should take out a life insurance policy on a priority
basis; the other members of the family should also be covered. If the wife is
working, then she should be covered to the extent of loss of income to the family
in the event of her untimely death. On the other hand, even if she is not working,
she should be covered, albeit for a smaller sum, because her contribution to the
family, in form of household services, has monetary value.

3. I will get back all my premiums when I surrender my endowment policy prematurely.

You couldnt be more wrong! You only get back the surrender value, which is
based on the paid-up value is a proportion of the original sum assured based
on the number of years for which premium was paid against the total premium-
paying years. The paid-up value of the policy is also calculated and available as
per the policy conditions.

4. Insurance is primarily useful as a tax-saving instrument.

Again, this is a huge misconception! While you do get attractive tax breaks, the
primary objective of insurance is risk mitigations followed by wealth creation for
the long term. Many people end up taking this myth too seriously, particularly
without considering the costs and benefits involved.

5. After three years, I can walk away from any ULIP, along with the accrued investment or
the fund value.

Sure, you can do that! However, you need to remember that a ULIP, at least in the
initial years, is very different from a mutual fund. While a mutual fund only
charges o nominal fund management charge every year, a ULIP is front loaded.
That means a significant chunk of your premium is allocated across various
charges in the initial years of the policy and only the balance gets invested in a
fund of your choice. As these charges taper off and average over time, it makes
sense to stay in a ULIP for at least 15 years. Therefore, if your investment horizon
is just 3-5 years, you better off in a mutual fund, and you can take out a separate
term assurance plan for the required risk cover.
To achieve and retain leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide
superior quality financial services. In the process, Karvy will strive to
exceed Customer's expectations.

Quality Objectives

As per the Quality Policy, Karvy will :

Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of
services.
Establish a partner relationship with its investor service agents and vendors
that will help in keeping up its commitments to the customers.
Provide high quality of work life for all its employees and equip them with
adequate knowledge & skills so as to respond to customer's needs.
Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
Use state-of-the art information technology in developing new and
innovative financial products and services to meet the changing needs of
investors and clients.
Strive to be a reliable source of value-added financial products and services
and constantly guide the individuals and institutions in making a judicious
choice of same.
Strive to keep all stake-holders(shareholders, clients, investors, employees,
 suppliers and regulatory authorities) proud and satisfied.

Achievements

Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

ISO 9002 certified operations by DNV

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations.

Insurance at Karvy
At karvy Insurance Broking Ltd. we provide both life and non-life insurance products to retail
individual, high net worth client and corporate with the opening up of the insurance sector and
with a large number of private players in the business, we are in a position to provide tailor made
policies for different segments of customers. In our journey to emerge as a personal financial
advisor, we will be better positioned to leverage our relationship with the product providers and
place the requirements of our customers appropriately with the product providers. With Indian
market seeing a sea change, both in term of investment pattern and attitude of investors,
insurance is no more seen as only a tax saving product but also as an investment product. By
setting up a separate entity we would be positioned to provide the best of the products available
in this business to our customers.

Our wide national network, spanning the length and breadth of India, further supports
these advantages. Further, personalized service is provided here by a dedicated team committed
in giving hassle-free service to the clients.

Now as I have made a comparative analysis between the products of various insurance
companies, so its necessary to know something about those companies:-
Birla Sun Life Insurance
Birla sun life Insurance Company limited is a joint venture between the Aditya Birla group,
one of the largest business houses in India and Sun Life Financial Inc., as leading international
financial services organization. The local knowledge of the Aditya Birla group combined with
the expertise of Sun Life Financial Inc., offer a formidable protection for your future. The Aditya
Birla group has a turnover of Rs. 1,33,875 corers (as on 31st march 2008). It has over 100,000
employees across all its units worldwide. It is led by its chairman Mr. Kumar Mangalam Birla.
Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These
include Canada, U.S, U.K, Hong Kong, the Philippines, Japan, Indonesia, India, china and
Bermuda. Sun Life Financial Inc. has assets under management of over us$ 404.7 BILLION (as
on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Birla sun life insurance (BSLI) has been operating for 7 years. It has contributed significantly to
the growth and development of the life insurance industry in India. It pioneered the launch of
unit linked life insurance plans amongst the private player in India. It pioneered the launch of
united linked life insurance plans amongst the private players in India. It was the first player in
industry to sell its policies through the Bancassurance route and through the internet. It was the
first private sector player to introduce a pure term plan in the Indian market. BSLI has covered
more than 2 million lives since it commenced operations.

Life Insurance Corporation Of India

Mission
"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering resources
for economic development."

Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of
India

Every day we wake up to the fact that more than 220 million lives are part of our family called
LIC.

We are humbled by the magnitude of the responsibility we carry and realize that the lives that are
associated with us are very valuable indeed.

Although this journey started five decades ago, we are still conscious of the fact that, while
insurance may be a business for us, being part of millions of lives every day for the past 52 years
has been a process called TRUST.

National Insurance Company Limited

National Insurance Company Limited was incorporated in 1906 with its registered office in
Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972,
21 Foreign and 11 Indian Companies were amalgamated with it and National became a
subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the
Government of India. After the notification of the General Insurance Business (Nationalisation)
Amendment Act, on 7th August 2002, National has been de-linked from its holding company
GIC and presently operating as a Government of India undertaking.

National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies
of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of
about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and
breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's
foreign operations are carried out from its branch offices in Nepal.

National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The
Company offers protection against a wide range of risks to its customers. The Company is
privileged to cater its services to almost every sector or industry in the Indian Economy viz.
Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy,
Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment,
Space Research etc.

National Insurance is the second largest non life insurer in India having a large market presence
in Northern and Eastern India.

Tata AIG life-A New Look at Life

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed
by the Tata Group and American International Group, Inc.

The Tata Group holds 74 percent stake in the insurance venture with AIG holding the balance
26 percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG
Life Insurance Company was licensed t operates in India on February 12, 2001 and started
operations on April 1, 2001.

Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups,
providing various types of add-ons and options on basic life products to give consumers
flexibility and choice.
Reliance General Insurance
Reliance General Insurance is the fastest growing private sector general insurance company in
India with innovative product offerings and customer service standards that are benchmarked to
the best insurance practices in the world.

Reliance General Insurance offers a range of products for corporate and individual customers.
With a focus on customer-centric products, multiple distribution channels and technology,
reliance general insurance aims to increase its presence in the retail sector.

Reliance General Insurance is 100% subsidiary of reliance capital limited, which is one of the
Indias leading and fastest growing private sector financial services companies. It ranks among
the top three private sector financial companies and banking groups in terms of net worth.

Reliance capital has interests in asset management and mutual funds, life insurance, general
insurance, private equity and proprietary investments, stock broking and other activities in
financial services. Reliance capital is a part of the Reliance Anil Dhirubhai Ambani Group.

RESEARCH METHODOLOGY

Sources

The success of any Insurance company depends on how well they are able to align with the
objectives and needs of individual customers, and is able to provide proper solutions to them. To
know how a company is performing and whether they have any cutting edge advantage over
competitors, an intensive study of the market is absolutely necessary.

In order to understand the performance of different companies in the market, we did two types of
surveys, primary survey and secondary survey.

Primary survey
Primary survey included:-
Visiting websites and fixing appointments with their agents.
Creation of database of prospective clients from different sources
calling them up to fix appointment and then visiting them.
 Prepare a questionnaire for the market survey .
Meeting different people to know their views, perception and
preference of different insurance companies.

Secondary survey
Secondary survey included of consulting books, magazines, journals, internet and also taking
reference from:-

library.
Internet.
karvy the finapolis.

Methodology
We would go in for a qualitative research as our objective is to judge the perception and
preference of different insurance products. The research would be done from primary data.

Sample Design

Target population: The target population for the research would be people who are in
the age group beyond 40 and age group between 25 to 40.We targeted this group of population
because these populations are the potential customers of insurance.

Sampling Frame: The research would be conducted in Kolkata. The survey has been
conducted among the potential customers of karvy from different sectors as karvy deals
in many sectors of business.

Sampling Technique: The sampling technique that is adopted is the simple random
sampling wherein every element in the target population has an equal chance or
probability of getting selected in the sample. That means every unit of the population
who is more is in the above mentioned age group, have an equal chance of getting
selected
Sample Size: I did a survey among 100 people by taking two categories in consideration of 50
each; that is

1.) Age group beyond 40

2) Age group between 25 to 40

Data Collection: The research would be conducted from the source of primary data
collection. Secondary data would help us in knowing the trends prevailing in the
insurance market and would help us in analyzing and interpretation of the primary data.
13. COMPARATIVE ANALYSIS
Birla sun life insurance Life Insurance Corporation Of
India
Name of the scheme Name of the scheme
Saral jeevan plan Jeevan saral

Purpose Purpose
BSLI saral jeevan plan comes with a jeevan saral plan comes with a bouquet
bouquet of benefits, which fulfill of benefits, which fulfill needs of life
needs of life cover and investment at cover.
an affordable rate.

Type of policy Type Of Policy

Unit linked endowment plan Traditional plan

Returns and added benefits Returns and added benefits

1. An easy and simple plan
2. Earn efficient returns
3. Match your risk profile at every
stage
4. Death benefits with a plus, that
is, sum assured plus the fund
value.
5. Unmatched liquidity
6. At the end of policy term you
get fund value.
7. The policy can be surrendered
at any time during the tenure of
the policy subject to surrender
charge. The charge will be zero
after 4th policy year.
1. Maturity benefit is total premium
+ bonus (approx Rs 50/thousand)
2. Death benefit is 250 times of
monthly premium
3. The policy can be surrendered at
any time during the tenure of the
policy subject to surrender charge.
The charge will be zero after 4th
policy year.

Payment of premium
Pay the premiums on an annual, Payment of premium
semi-annual, quarterly or monthly Pay the premiums on an annual, semi-
mode. annual, quarterly or monthly mode
Eligibility Eligibility
18 to 55 years of age 18 to 70 years of age

Term of maturity Term of maturity

There is an option of three policy There is an option of three policy terms
terms 10 years, 15 years and 20 years. 10 years, 15 years and 20 years.

Tax benefit Tax benefit

Avail of tax benefit under section Avail of tax benefit under section 80C
80C and section 10(10 D) of the and section 10(10 D) of the Income Tax
Income Tax Act, 1961. Act, 1961.
Birla sun life insurance
Name of the scheme
Gold-plus II plan
Purpose
A simple, hassle free plan it helps you
strike the right proportion between
protection and savings.
Type of policy
This is a non-participating unit linked
savings plan.
Returns and added benefits
1. Match your risk profile at every
stage.
2. Unlimited partial withdrawals
after 3 policy years, free of cost.
3. The policy can be surrendered
at any time during the tenure of
the policy subject to surrender
charge, the charge will be zero
th
after 4 policy year.
4. At the end of the policy term
you get the fund value.
5. On death the nominee will get
the greater of (a) the fund value
or (b) the sum assured reduced
for partial withdrawals.
6. Minimum sum
assured:5*annual premium
Tata AIG life
Name of the scheme
Invest assure apex
Purpose
The plan provides a platform ensuring
the upside potential of the equity markets
while safeguarding the investors interest
by offering a guaranteed maturity unit
price (GMUP).
Type of policy
This is a unit linked life insurance plan.
Returns and added benefits
1. Can make partial withdrawal only
after completion of 3 years. A
maximum of 4 partial withdrawals
is allowed in one policy year. No
charges are applicable.
2. Minimum sum assured: 5 times the
annualized premium.
3. Maximum sum assured: 60 times
the annualized premium.
4. The policy can be surrendered any
time after 3 policy years by a
written notice, subject to deduction
of the applicable surrender charges.
5. On death the nominee will get
higher of: the sum assured or the
fund value.
6. On maturity the nominee will get
higher of the fund value or the
guaranteed maturity unit price
multiplied by the number of units.
Additional coverage
Additional coverage Tata AIG life accidental death
Nil benefit rider.
Tata AIG life accidental death and
dismemberment rider
Tata AIG life critical illness rider

Payment of premium
Premium is paid for a period of 3 years
Payment of premiums with the option to reduce, subject to
Premium is paid for a period of 3 years minimum limit, which is higher of 75%
with the flexibility to reduce premium of the first year regular premium paid or
(subject to minimum of Rs.10000) from Rs.90000.the sum assured remains same
the second policy year onwards without even if reduction in premium is affected.
reduction in sum assured.
Eligibility
18 to 70 years of age.
Eligibility
18 to 70 years of age. Term of maturity
The policy term is 10 years.
Term of maturity
The policy term is 8 years. Tax benefit
Avail of tax benefit under section 80C
Tax benefits and section 10(10 D) of the Income Tax
Avail of tax benefit under section 80C Act, 1961.
and section 10(10 D) of the Income Tax
Act, 1961.
National Insurance Reliance General Insurance
Company ltd. Name of the scheme
Reliance health wise policy
Name of the scheme
The National health plan
Purpose
To provide financial support,
Purpose
spiraling cost of health care,
To provide financial support ,
protect your savings from
spiraling cost of health care,
unforeseen circumstances.
protect your savings from
unforeseen circumstances
Type of policy
Covers your family on a floater
Type of policy
Family floater coverage available basis applicable to a maximum of
up to 6 members of a family four persons you, your spouse and
including dependent children under two dependent children under the
the age of 25 years and dependent age of 21 years.
parents below 65years.
Benefits Benefits
1. Covers pre-existing diseases 1. Covers pre-existing diseases
(excluding chemotherapy, after two/four continuous
radiotherapy and dialysis.) renewals.
2. Maternity coverage (nine 2. Day care treatment expenses
months waiting period covered
applicable.)
3. Cashless facility
3. Cashless policy
4. Pre-post hospitalization
4. Critical illness buffer cover: covered
additional coverage up to
5. Double sum insured is
Rs.75000 per family for
automatically available as
hospitalization in case of
soon as any of the listed
heart surgery, neuro surgery,
critical illness is diagnosed.
organ transplant, cancer,
 road traffic accidents.
5. No medical test required.
Payment of premiums
Premium has to be paid yearly and
the amount depends on the sum
insured and the number of
dependents in the family
Eligibility
3 months to 65 years of age
Term of maturity
One year, that is, the policy has to
be renewed yearly.
Tax benefits
Avail of tax benefit under section
80D of Income Tax Act, 1961
6. Discount on renewal
premium for claim free
policy
Payment of premiums
Premium has to be paid yearly and
the amount depends on the sum
insured and the number of
dependents in the family
Eligibility
3 months to 65 years of age
Term of maturity
One year, that is, the policy has to
be renewed yearly.
Tax benefits
Avail of tax benefit under section
80D of Income Tax Act, 1961
Findings and Interpretations
We have presented below the findings and analysis of the questionnaire addressed to the
respondents to gauge the attitude and perception of the people towards insurance.

Respondents having life Insurance

The question was asked to the respondents to know how many of the respondents had a life
insurance policy.

From the survey it was found out that 85% of the respondents had a life insurance policy
whereas 15% of the respondents didnt had a life insurance policy.
Insurance policy taken from which company

The question was asked to the respondents so as to get to know from which insurance company
they have bought the policy

The finding which came out from the survey was that 40% of the respondents who have a life
insurance cover bought life insurance from Life Insurance Corporation of India (LIC). LIC is the
most preferred brand in the insurance industry because it is the only government company which
offers insurance. People prefer to buy insurance from LIC because of the security being one of
the prime factors. In the figure we can also see that nowadays people mindset have changed
towards insurance and are opting for private company for insurance cover or policy.
From whose suggestion have the respondents taken a policy?

It was asked to gain an insight from the respondents that on whose suggestion did they opt for a
life insurance cover or policy.

After the survey it was found that most of the respondents took policy or life insurance cover
from the suggestions of their friends or family.And only 23 respondents took policy on the
recommendation of the agents.Other sources like banks, corporate tie-ups and etc. plays a minute
role in reaching out people for insurance policies.
Type of plan
The respondents were asked which type of plan they go in for when they take up insurance cover
or policy.

After the survey it was found that term plan was the most preferred plan. Next on the list was
endowment plan. Pension plan and health plan are the least preferred by customers .
Preference of insurance sector according to age group:-
Age group beyond 40

Graphical presentation
35

30

25

20

15

10

0
Pie Chart

percentage

4%
8%

6%
L.I.C
10% TATA AIG
BIRLA
60%
12 RELIANCE
% AVIVA
OTHERS
Age Group Between 25 40

Graphical presentation
25

20

15

10

0
Pie-chart

Percentage

10%
6%
TATA AIG
40% BIRLA
10%
L.I.C
RELIANCE
AVIVA
20% OTHERS

14%
 Results

After the survey it was found that still major portion of customers go for public insurance
companies, but with the entry of more and more private companies the scenario is changing
rapidly, people with a need of more and better returns are opting for private companies, and this
can be justified by the increasing market share of private companies in the Indian insurance
sector.

There are various ways in which private companies are found much more lucrative than public
companies and the facts which support this statement are as follows:-

1. Versatility of products.

2. Efficient fund managers.

3. Better customer services.

4. More returns.

5. Regular follow up.

6. Quicker settlement
 Suggestions and recommendation
People are not aware of the life insurance. Most of them know only one company which
provides life insurance i.e. LIC. So awareness campaign should be run so that people are
aware of different life insurance companies in India.

People should be educated about the different types of products or plans offered by the life
insurance companies. Most of them dont know much of the different types of plan or
products.

It was felt that most of the people took life for tax savings or just to cover up their life, not as
an investment avenue. Life Insurance companies need to advertise in such a manner that
people start investing in life insurance like the way they invest in the stock market

Now at the time of global turmoil insurance company had to hold on to the policyholders
trust which might lead the company to the path of success

Insurance companies should try to adopt different strategies to market their products or plan.
Companies should not primarily focus on the agents for their business.
 Conclusion

Insurance is one sector that witnessed continuous growth owing to the reforms in 2000. The
insurance sector is likely to attain a size of Rs. 2,00,000 crore ($ 51.2 billion) in 2009-10. In life
insurance, the business grew by 23.3% to Rs. 93,000 crore in 2007-08 (Source:Assocham). The
sector alone employs close to 30 lakh people (including agents and direct employees).

A well-functioning insurance market plays an important role in economic development and

financial stability of developing economies such as Indias. First, it inculcates and encourages
the habit of saving. Second, it provides a safety net to rural and urban enterprise and productive
individuals.

The life insurance market in India is on a growth path. In spite of this, the country lags far behind
the others in awareness about life insurance. The challenge is to spread awareness about life
insurance and it true benefits. The industry has to convince people to park their hard earned
money in long-term insurance and not just look at it as a tax saving instrument.
 Limitations

1. Useful Financial insights are not easily available.

2. Due to time constraint sufficient research on all the investment tools is difficult.

3. The survey sample is not very large for analysis

.
4. Properly convincing people to invest in insurance products is challenging.

5. Due to recession there is liquidity crunch in the market.

6. There might have been tendencies among the respondents to amplify or filter their
responses under the testing conditions
.
7. The research is confined to Kolkata and does not necessarily shows a pattern applicable to
other parts of the country.
Attachments.
Questionnaire

1. Sex :

2. Age :

3. Occupation :

4. Income :

5. Marital status :

6. No. of family members :

7. Mobile no. :

8. Are you insured yes/no

9. If yes , then with life/ non-life/both

10. In which company ________________

11. How you rank your insurance company ?

|----------------|-----------------------|------------------|-----------------------|
excellent very good good fair bad

12. Who suggested you to take the Insurance Policy?

Friends Family Agents

Others, please specify

13. In which of the insurance plan have you invested the money?

Term Plan Endowment plan Money Back Plan

Children Plan Pension plan ULIP (Unit Linked Insurance Plan)

Health Plan Others please specify_______________________________

14. Rank the insurance co. according to your preference:

a) LIC/GIC _____

b) BIRLA _____

c) TATA AIG _____

 d) AVIVA _____

e) RELIANCE _____

f) _______ _____

15. Where do government insurance co. need to improve ? [ ]

a) Service

b) Return

c) Information

d) Varity

e) Easy claim

f)

16. Reason behind the preference of your insurance company?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.
20. References:
The monthly fact sheet available from the company for studying the features of products.
Online information from the various websites namely:-

www.lic.co.in

www.wikipedia.com

www.tata-aig-life.com

www.birlasunlife.com

www.irdaindia.org

www.google.com

www.wikipedia.com