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(With Special Reference To KARVY) : A Project Report On Comparative Analysis of Insurance Products
(With Special Reference To KARVY) : A Project Report On Comparative Analysis of Insurance Products
(With Special Reference To KARVY) : A Project Report On Comparative Analysis of Insurance Products
SUBMITTED BY:
Gautam Saraogi
( Warangal )
Page 1
Table of Contents
1. Authorization...4
2. Acknowledgement..5
3. Executive Summary6
4. Introduction..7
5. Review of Literature
6. Company profile...25
12.1 Sources.....31
12.2 Methodology....32
Page 2
15. Results.47
17. Conclusion.49
18. Limitations.....50
19. Attachments..51
20. References....53
Page 3
Authorization
Page 4
Acknowledgement
My sincere thanks are due to the management of Karvy Stock Broking
Ltd for having provided the summer internship opportunity.
Page 5
Executive Summary
Summer Internship Program is conducted by every business school as a part of their
curriculum so that the students get an exposure to the real corporate world. The
internship enables the student to get a feel of the working environment of big corporate
houses. This report provides the outline of my work till now as a part of the Summer
Internship Program, which corroborate the application of my theoretical knowledge to
the practical business world. For my industrial spotlight and a first exposure to the
corporate world, I had selected KARVY STOCK BROKING LTD.
I joined Karvy Stock Broking Ltd. on 1st May 2009. I have been given chance to work in
the Sales department. On my first day I met my company guide Mr.Rohit Mahipal, who
is the broking head of eastern region. I had initial discussion about my project with him.
He explained me in brief the workings of the department.
The project is all about comparative analysis of different insurance products of different
companies. The objective of the project was to check the awareness level of Insurance
and attitude of the people towards insurance in the current market. Survey was also
done regarding the preference of insurance sector depending on the age group
(whether they prefer private players or public companies) .
In the beginning, we gain an insight about the company and its values and inherit them
in our life, and then studied different types of insurance plans like ULIPs, term plan,
endowment plan, and various other plans.
Now, on to the statistical part, we designed a questionnaire that will provide a base for
studying the awareness level and perception of the life insurance. The project helped
me in developing my communication skill and interpersonal skills. During the tenure of
my internship I learned a lot from my seniors, colique etc but above all I learned a lot
from my own personal experience.
Page 6
4. INTRODUCTION
About the project
The project deals with comparative analysis of different insurance products offered by
insurance companies.
ii) Birla sun life insurance with Tata AIG life insurance.
Page 7
5. REVIEW OF LITERATURE
5.1 About Insurance Industry
"Insurance is a contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party called
insured a fixed amount of money on the happening of a certain event."Insurance is a
protection against financial loss arising on the happening of an unexpected event.
Insurance companies collect premiums to provide for this protection. A loss is paid out
of the premiums collected from the insuring public and the Insurance Companies act as
trustees to the amount collected. For Example, in a Life Policy, by paying a premium to
the Insurer, the family of the insured person receives a fixed compensation on the death
of the insured. Similarly, in a car insurance, in the event of the car meeting with an
accident, the insured receives the compensation to the extent of damage. It is a system
by which the losses suffered by a few are spread over many, exposed to similar risks.
Logic of insurance
It is a system by which the losses suffered by a few are spread over many, exposed to
similar risks. Insurance is a protection against financial loss arising on the happening of
an unexpected event. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the amount premiums collected from the insuring public
and the Insurance Companies act as trustees to the collected.
Need of insurance
Insurance is desired to safeguard oneself and one's family against possible losses on
account of risks and perils. It provides financial compensation for the losses suffered
due to the happening of any unforeseen events. By taking life insurance a person can
have peace of mind and need not worry about the financial consequences in case of
any untimely death. Certain Insurance contracts are also made compulsory by
legislation. For example, Motor Vehicles Act 1988, stipulates that a person driving a
vehicle in a public place should hold a valid insurance policy covering Act" risks.
Another example of compulsory insurance pertains the Environmental Protection Act,
wherein a person using or to carrying hazardous substances (as defined in the Act)
must hold a valid public liability (Act) policy.
Page 8
Insurance in India
Insurance is a federal subject in India and has a history dating back to 1818. Life and
general insurance in India is still a nascent sector with huge potential for various global
players with the life insurance premiums accounting to 2.5% of the country's GDP while
general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has
gone through a number of phases and changes, particularly in the recent years when
the Govt. of India in 1999 opened up the insurance sector by allowing private
companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian
insurance sector is considered as a booming market with every other global insurance
company wanting to have a lion's share. Currently, the largest life insurance company in
India is still owned by the government.
At the dawn of the twentieth century, insurance companies started mushrooming up. In
the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed to regulate the insurance business. The Life Insurance Companies Act, 1912
made it necessary that the premium rate tables and periodical valuations of companies
should be certified by an actuary. However, the disparage still existed as discrimination
between Indian and foreign companies. The oldest existing insurance company in India
is National Insurance Company Ltd, which was founded in 1906 and is doing business
even today. The Insurance industry earlier consisted of only two state insurers: Life
Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e. General
Insurance Corporation of India (GIC). GIC had four subsidiary companies.
With effect from December 2000, these subsidiaries have been de-linked from parent
company and made as independent insurance companies: Oriental Insurance Company
Limited, New India Assurance Company Limited, National Insurance Company Limited
and United India Insurance Company Limited.
Page 9
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 .
Page 10
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.
18. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
Page 12
5.2 ADVANTAGES OF LIFE INSURANCE
Page 13
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.
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.
Page 14
5.3 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.
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.
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.
Page 15
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.
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
Page 16
5.4 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.
Page 17
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.
Page 18
Major Driving Factors
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
Emerging Areas
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%.
Page 19
5.5 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.
Page 20
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.
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
house, car, etc commitment for repayment of 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
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5.6 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.
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.
Page 22
4. Insurance is primarily useful as a tax-saving instrument.
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.
Page 23
6. Company Profile
KARVY covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products like mutual funds, bonds, fixed
deposit, Merchant Banking & Corporate Finance, Insurance Broking, Commodities
Broking, Personal Finance Advisory Services, placement of equity, IPOs, among others.
Karvy has a professional management team and ranks among the best in technology,
operations, and more importantly, in research of various industrial segments.
Karvy computer share limited is Indias largest registrar and transfer agent with a
client base of nearly 500 blue chip corporate, managing over 2 crores accounts. Karvy
stock brokers limited, member of national stock exchange of India and the Bombay
stock exchange, rank among the top five stock brokers in India with over six lakh active
account it ranks among the top five depositary participants in India, registered with
NSDL and CSDL, karvy commorade, member of NCDEX and MCX ranks among the
top three commodities brokers in the country. A Karvy insurance broker is registered as
a broker with IRDA and ranks among the top five insurance agent in the country.
Registered with AMFI as a corporate agent, karvy is also among top mutual fund
mobilize with over Rs 5000 crores under management. Karvy realty services, which
started in 2006, have quickly established itself as a broker, who adds value in the realty
sector. Karvy global offer niche off to off shoring services to U.S clients.
Karvy has 575 offices in 375 locations across India and overseas at Dubai and New
York. Over 9000 highly qualified people staff karvy.
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Quality Policy
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
Page 25
Achievements
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:-
Page 26
7. 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.
Page 27
8. 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.
Page 28
9. 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 Insurance is the second largest non life insurer in India having a large market
presence in Northern and Eastern India.
Page 29
10. 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 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.
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12. RESEARCH METHODOLOGY
12.1 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:-
Secondary survey
Secondary survey included of consulting books, magazines, journals, internet and also
taking reference from:-
library.
Internet.
karvy the finapolis.
Page 31
12.2 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.
Sample Size: I did a survey among 100 people by taking two categories in
consideration of 50 each; that is
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
Page 32
the insurance market and would help us in analyzing and interpretation of the
primary data.
Page 33
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.
Page 34
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
Page 35
Birla sun life insurance Tata AIG life
Purpose Purpose
A simple, hassle free plan it helps you The plan provides a platform ensuring
strike the right proportion between the upside potential of the equity
protection and savings. markets while safeguarding the
investors interest by offering a
guaranteed maturity unit price (GMUP).
Type of policy
This is a non-participating unit linked Type of policy
savings plan. This is a unit linked life insurance plan.
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6. Minimum sum fund value.
assured:5*annual premium 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
Nil Tata AIG life accidental death
benefit rider.
Tata AIG life accidental death and
dismemberment rider
Tata AIG life critical illness rider
Eligibility Eligibility
18 to 70 years of age. 18 to 70 years of age.
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National Insurance Reliance General
Company ltd. Insurance
Name of the scheme Name of the scheme
The National health plan Reliance health wise policy
Purpose Purpose
To provide financial support , To provide financial support,
spiraling cost of health care, spiraling cost of health care,
protect your savings from protect your savings from
unforeseen circumstances unforeseen circumstances.
Page 38
additional coverage up to covered
Rs.75000 per family for
5. Double sum insured is
hospitalization in case of
automatically available as
heart surgery, neuro
soon as any of the listed
surgery, organ transplant,
critical illness is diagnosed.
cancer, road traffic
accidents. 6. Discount on renewal
premium for claim free
5. No medical test required.
policy
Payment of premiums
Payment of premiums Premium has to be paid yearly
Premium has to be paid yearly and and the amount depends on the
the amount depends on the sum sum insured and the number of
insured and the number of dependents in the family
dependents in the family
Eligibility
Eligibility 3 months to 65 years of age
3 months to 65 years of age
Term of maturity
Term of maturity One year, that is, the policy has to
One year, that is, the policy has to be renewed yearly.
be renewed yearly.
Tax benefits
Tax benefits Avail of tax benefit under section
Avail of tax benefit under section 80D of Income Tax Act, 1961
80D of Income Tax Act, 1961
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14. 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.
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.
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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.
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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.
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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 .
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Preference of insurance sector according to age
group:-
Age group beyond 40
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Pie Chart
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Age Group Between 25 40
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Pie-chart
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15. 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.
4. More returns.
6. Quicker settlement
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16. 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.
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17. 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).
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.
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18. Limitations
2. Due to time constraint sufficient research on all the investment tools is difficult.
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.
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19. Attachments.
Questionnaire
1. Sex :
2. Age :
3. Occupation :
4. Income :
5. Marital status :
7. Mobile no. :
|----------------|-----------------------|------------------|-----------------------|
13. In which of the insurance plan have you invested the money?
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14. Rank the insurance co. according to your preference:
a) LIC/GIC _____
b) BIRLA _____
d) AVIVA _____
e) RELIANCE _____
f) _______ _____
a) Service
b) Return
c) Information
d) Varity
e) Easy claim
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.
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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
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