Summer Training

Project Report
On
INSURANCE INDUSTRY

Submitted to,

In partial fulfillment of the requirements

For the degree of

Master of Business Administration

2009-11

Of

Kurukshetra University
Kurukshetra

Submitted by,

Chandni

Center of Training
HDFC standard life insurance, Mohali
2
 ACKNOWLEDGEMENT

It gives me tremendous pleasure in acknowledging the

valuable assistance to my various personalities in the

successful completion of this project.

I am very grateful to Miss.GEETIKA, Channel

Development Manager for providing me an opportunity to
undertake training from HDFC Standard Life Insurance
Company.
My just and foremost thanks go to my training

Supervisor Mr. Gurdeep Singh (Business

Development Manager) under whose guidance and

supervision the present study was conducted. His

sympathetic and encouraging attitude was the

basis, which made

The study possible.

I am obliged to all the respondents for their support

by providing valuable Information, which provides a

milestone for the study.

Last but not least, I would also like to thanks a host

of other officials for their Active help and

3
cooperation at each stage of the study. I would like

to thanks my respected and loving parents, who

kept motivating me in completing the summer

training and report, with their Valuable suggestions

and guidance.

Thank you.

CHA
NDNI

4
EXECUTIVE SUMMARY.

As a part of degree of Masters in Business

Administration (M.B.A.), every student has to undergo
training in an industrial or commercial organization. By
training one comes to know about the functioning of the
actual business and working conditions under which they
have to work in future. I underwent my summer training in
HDFC Standard Life Insurance Company Ltd, S.C.O-659,
Sector-70, Mohali. The duration of the training was 45
Days. During training I tried to understand the functioning
of the organization. I was also given the general training
regarding the working of the Organization. I was assigned
the fieldwork of talking to the potential clients on telephone
and thus generating business for the company. The basic
aim of this study was to find out the Life Insurance
Awareness of the people in Chandigarh and Mohali city.
For this study, the population was the investors who invest
in various schemes in Chandigarh, Mohali city. A sample
size was 100 chosen and the source of data was both
Primary and Secondary .Secondary data was collected in

5
the form of information from Internet sites, literature and
from the help of company. A structured questionnaire was
prepared then was made to be filled from the peoples of
Chandigarh and Mohali city. After the collection of data,
Statistical techniques like mean, score, averages, and
percentages were used to analyze the data. On the basis
of the analysis, certain conclusions are made.

6
S.NO TABLE OF CONTENTS

EXECUTIVE SUMMARY

CHAPTER 1 INTRODUCTION

CHAPTER 2 PROFILE OF HDFC STANDARD

LIFE INSURANCE

CHAPTER 3 PRODUCT &POLICIES OF HDFC

STANDARD LIFE INSURANCE

CHAPTER 4 OBJECTIVE &RESARCH

METHODOLOGY

CHAPTER 5 DATA ANALSIS &

INTERPRETATION

CHAPTER 6 CONCLUSION

CHAPTER 7 FINDINGS & RECOMMENDATIONS

CHAPTER 8 BIBLIOGRAPHY

CHAPTER 9 ANNEXURE(QUESIONARY)

7
CHAPTER NO .1

INTRODUCTION.

8
  EVOLUTION OF INSURANCE INDUSTRY

 Insurance in India

1818 The British introduction life insurance to India,

with the
Establishment of the “oriental life insurance
Company in Calcutta.

1850 Non-life insurance debuts, with triton insurance.

1870 Bombay Mutual Life Assurance Society is the first

Indian owned
Life insurance.

1907 Indian Mercantile Insurance is the first Indian

Non
Life insurer.

1912 The Indian Life Assurance Companies Act

enacted to regulate the
Life Insurance business.

1938 Insurance Act, which forms the basis for most

current insurance
Laws, replaces earlier acts.

1956 Life insurance nationalized; Government takes

over companies and
Foreign insurers and provident societies.

1956 Government steps up L.I.C.

1972 Non life insurer nationalized; G.I.C. set up.

9
1973 Malhotra committee recommends re entry of
private players,
Autonomy to PUS insurers.

1997 Insurance regulator IRDA (Insurance regulatory

and development
Authority) set up.

2000 IRDA starts giving licenses to private insurers;

HDFC Standard
Insurance and ICICI Prudential were first private
life insurance to
Sell Policy.

2001 Royal Sundaram first non life insurer to sell

policy.

2002 Banks allowed to sell insurance plans.

………………

10
  INTRODUCTION TO
INSURANCE

 WHAT IS INSURANCE?
• Insurance is the method of spreading and transfer of
risks.
• Losses of unfortunate few are shared by and spread
over to many exposed to the same risk.
• Assets created by the owner in expectation of future
needs or benefits have a value.
• Loss of assets for any reasons deprives the owner of
the expected benefit.
• Insurance in this context is a mechanism that helps to
reduce the adverse consequences due to loss of
assets.

 PURPOSE AND NEED FOR INSURANCE

•Assets are likely to be destroyed or made non-
functional due to perils
Like fire, floods, breakdowns, lightning and
earthquake.
• Damage to assets caused by any peril is the risk that
assets are exposed to.
• Insurance becomes relevant only if there are
uncertainties of occurrence of event leading to loss.
• We can say that human life is an income generating
assets which can be lost on early death or disabilities
caused by accidents.
• Insurance does not protect the assets but only
compensates the economic or financial loss.

 ROLE OF INSURANCE IN ECONOMIC

DEVELOPMENT

11
 • Investments are necessary for economic
development.
• Life insurance plays a major role in mobilization of
public savings.
• Savings out of life insurance funds are utilized in
investments for growth.
• Looking to general insurance business, industry, trade
would be seriously handicapped in the absence of
insurance cover relating to fire and engineering risks.

 CLASSIFICATION OF INSURANCE
Life is full of uncertainty. Trials and tribulations abound in
each and every aspect of life. No one can truly predict or
even estimate what the future has in store for him. Life
offers no guarantees by itself, except the incidences of
death and taxation.
This lack of security present throughout life can be
overcome partially through insurance. Insurance can never
replace or repair a loss. But the monetary value offered by
insurance helps in adjusting to the new circumstances.
Despite offering innumerable options and immense
scope, insurance can be classified into four main
categories.

• Insurance of Person

• Insurance of Property

• Insurance of Interest

• Insurance of Liability

 Insurance of Person

12
Under the purview of this class of insurance, the risks
associated with human life in general can be covered up to
the limit specified. A person can insure his or her life and
his health against any unplanned contingencies.

In event of his death, his dependants will be reimbursed to

the full amount that he was insured for. Or if the insured
person meets with an accident or suffers from an illness
that cripples him forever, he will be compensated with the
complete sum assured anyway since he may not be able
to lead a normal life again.

In case, the accident is not that severe, he should be able

to recover after medical treatment and rehabilitation. If he
has opted for medical cover, then his medical expenses,
treatment and medication will be paid for by his insurance
policy.

 Insurance of Property

Everyone possesses material value in the form of tangible

assets. Assets can be in the form of a landed estate or a
vehicle, share holdings or plain old paper money.

Since tangible property has a physical shape and

consistency, it is subject to many risks ranging from fire,
allied perils to theft and robbery. An individual's lifetime of
hard work can be wiped out in a blink of an eye.

But if a person judiciously invests in insurance for his

property prior to any unexpected contingency then he will
be suitably compensated for his loss as soon as the extent
of damage is ascertained.

 Insurance of Interest

Every individual has to discharge certain specific duties.

Everyone is expected to maintain a standard of conduct.

13
But then, it is an intrinsic part of human nature to err. No
one is infallible and no one will ever be.

Owing to an occasional error or omission committed by us,

our clients or customers might suffer a loss. In turn we
might have to pay those damages or compensation out of
our own personal resources.

However, if our chosen profession qualifies for insurance

of interest, then our insurance policy will more than suffice
in arranging for the funds and court formalities that might
ensue in the aftermath of legal libel.

 Insurance of Liability

Every person has to regulate his actions and behavior so

as not to cause injury or damage to other people and their
property. Everyone is personally responsible and liable for
his actions.

If due to lack of control over his actions or prejudiced

behavior, a person incurs any liability then he has to
provide compensation out of his personal resources.
Liabilities: legal, civil or criminal can have severe
repercussions on social standing and prestige besides the
financial status.

By investing in liability insurance, an individual can ward off

any liabilities he might incur due to his actions and
behavior. Besides, the premiums payable on liability
insurance are fairly minimal when compared to the
damages that have to be compensated in the long run.

----------------

14
 LEGISLATIVE AND REGULATORY
MATTERS.

INSURANCE REGULATORY & DEVELOPMENT

AUTHORITY
(IRDA) ACT, 1999.

• Under this Act an authority called IRDA has been set

up.
• This is a corporate body established for the purpose
and objects as set out in the explanation to the title.
• The Authority replaces “Controller” under Insurance
Act 1938.
• The first schedule amends Insurance Act 1938.
• It states that if Authority is superseded by Central
Government, the Controller of Insurance may be
appointed till such time as “Authority” is
reconstituted.

15
 • .

 CONSTITUTION OF IRDA.

The Insurance Regulatory and Development Authority

consist of the following members:

1. Chairperson.
2. Less than five whole time members.
3. Less than four part time members.
• Members should be persons of Ability, Integrity &
Standing.
• They should have experience in the fields of
1. Life Insurance
2. General Insurance
3. Actuarial Science
4. Finance
5. Economics
6. Law
7. Accountancy
8. Administration
• Chairperson, members, officers and other
employees of Authority shall be public servants.

 FUNCTIONS OF IRDA

1. To issue certificate of registration, renew, withdraw,

suspend or cancel such registration.

16
 2. To protect the interest of policyholders/insured in the
matter of insurance contract with the insurance
company.
3. To specify requisite qualification, code of conduct and
training for insurance intermediaries and agents.
4. To specify code of conduct for surveyors/loss
assessors.
5. To promote efficiency in the conduct of insurance
business.
6. To promote and regulate professional organizations
connected with the insurance and reinsurance
business.
7. To undertake inspection, conduct enquiries and
investigations including audit of insurers and
insurance intermediaries.
8. To control and regulate the rates, terms and
conditions to be offered by the insurer regarding
general insurance business not so controlled by Tariff
Advisory Committee u/s 604 of Insurance Act, 1938.
9. To regulate investment of funds by the insurance
companies.
10. To adjudicate dispute between insurers and
intermediaries of
Insurance.

 LIFE INSURANCE CORPORATION OF INDIA ACT,

1956

• Life insurance business was nationalized in India

with effect from 19th January 1956.
• The life insurance business of 154 Indian life offices
constituted by 16 non-Indian insurers operation in
India and 75 Provident Societies was taken over by
the Government of India.

17
• LIC of India Act was passed by the Parliament on
18th June 1956 and it came into effect from 1st July
1956.

----------

18
 MAJAR MARKET PLAYERS

Birla Sun life Insurance Company

Birla Sun Life Insurance Company is a 74:26 joint venture

between birla
Birla group and Sun Life Financial. It is a private sector
company. The
Company was registered on 31/1/2001.The market share
for FY 2006-07
Was 4%.

HDFC-Standard Life

HDFC-Standard is a 74:26 joint venture between HDFC

and Standard
Life .it is a private sector company .The company was
registered on 23/10/2000.The market share for FY 2006-07
were 2%.

ICICI Prudential Life Insurance

ICICI Prudential Life is a joint venture between ICICI and

Prudential.
It is a private sector company. The company was
registered on
24/11/2000.The market share for FY 2006-07 was 3%.

Kotak Mahindra Old Mutual

Kotak Mahindra Old Mutual is a 74:26 joint venture

between Kotak
Mahindra bank and Old Mutual. It is a private sector
company. The
Company was registered on 10/1/2001. The market share
for FY
2006-07 was 2%.

19
Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India is a 100% government

held Public
Sector Company. Being the first to be established LIC is
the forerunner in the life insurance sector. The market
share for FY 2006-07 was 44 %.

Max New York Life

Max New York Life is a 74:26 joint venture between J&K

Bank, Pallonji
& Co. and MetLife. It is a private sector company. The
company was
Registered on 6/8/2001.The market share for FY 2005-06
was 6%.

Aviva Life Insurance India

Aviva Life insurance is a 74:26 joint venture between Aviva

and dabur.
It is a private sector company. The company was
registered on 14/5/2002.
The market share for FY 2006-07 was 2%.

ING Vysya Life Insurance

ING Vysya Life Insurance is joint venture between Exide

(50%)
Gujarat Cements (14.87%), Enam (9.13%) and ING
(26%).It is a
Private sector Company. The company was registered on
2/8/2001.

20
The market share for FY 2006-07 was 3%.

MetLife India

MetLife India is a 74:26 joint venture between 74:26 JV

between J & K
Bank, Pallonji & Co and MetLife. It is a private sector
Company. The company was registered on 6/8/2001. The
market share for FY 2006-07
Was 5%.

Bajaj Allianz Life Insurance Co.

Bajaj Allianz Life Insurance Company is a 74:26 joint

venture between Bajaj Auto limited and Allianz AIG.The
Company was registered on 3/8/2001.The market share for
FY 2006-07 were 3%.

SBI Life Insurance Company

SBI Life Insurance Company is a 74:26 joint venture

between SBI
And Cardiff S.A. The company was registered on
31/3/2001.It is a
Private sector Company. The market share for FY 2006-07
was 4%.

The TATA AIG Group

TATA AIG Group is a 74:26 between Tata Group and AIG.

It
Belongs to the private sector. The company was registered
On 12/2/2001. The market share for FY 2006-07 was 4%.

Sahara Indian Life Insurance Company Ltd.

First Wholly Indian Owned Private Life Insurance

Company. The

21
Company commenced operation from 30th October 2004.
The market
Share for FY 2006-07 was 12 %.

Shriram Life Insurance Company Ltd.

Shriram Life is a recent entrant into the life insurance

sector it is a 74:26
Joint venture between the Shriram groups through its
Shriram financial
Holdings and Sanlam Life Insurance Limited, South Africa.
The
Company expects to start operations soon.

--------------

22
 Market Shares (%) of Private Insurance Companies:

M a r k e t S h a r e ( % ) o f P r iv a t e In LsICu r a n c e
IC IC I P r u d e n tia l
c o m p a n ie s .
S B I L ife
H D F C S ta n d a r d L ife
12% 0% B ir la S u n L if e
6%
3%
R e lia n c e L ife
44%
5% T a ta A IG
K o ta k M a h in d r a L ife
2% B a ja j A llia n z
3%
2%
4%
A v iv a
6% 3% M e t L ife
4% 2% 4%
IN G V y s y a
M a x N e w Y o rk
S a h a r a L if e
B h a r ti A x a L ife
S h r ir a m L ife

23
 COMPETITORES:-

Indian Promoter Foreign Promoter

ICICI Prudential Plc UK

Aditya Birla Group Sun life Financial, Canada

Kotak Mahindra Finance Old Mutual Plc, South Africa

Max Indian New York Life, USA

Tata Group American International group,

USA
Vyasa Bank ING Group, Nether land

Bajaj Auto Allianz AG

Sanmar Group AMP, Australia

Dadur India Aviva Plc

State Bank Of Indian Cardiff , France

J&K Bank , Pallonji & Co. Metropolitan Life Insurance

24
 CHAPTER NO .2

Profile of HDFC Standard Life

Insurance.

25
 HDFC Standard life Insurance

HDFC Standard Life Insurance Company is a joint

venture between
India’s largest housing finance provider, HDFC, and
Europe’s largest
Mutual life Assurance Company. Standard life
assurance company UK.

 The partnership

 Incorporation of HDFC Standard Life Insurance

Company limited.

 Our Mission.

 Our Values.

 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 sharesd 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

26
 Development Authority) Act passed in parliament.
Despite this 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 advice
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 the
core project team,
Based in Mumbai.Around this time Standard Life
purchased a further 5%
Stake in HDFC and a 5% stake in HDFC Bank. In a
further development
Standard Life agreed to participate in the Asset
Management Company
Promoted by HDFC to enter the mutual fund market. The
Mutual Fund was
Launched on 20th July 2000.

 Incorporation of HDFC Standard Life Insurance

Company Limited:

The company was incorporated on 14th August 2000

under the name of
HDFC Standard Life Insurance Company Limited. Our
ambition from as far

27
Back as October 1995 was to be the first private company
to re-enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realized when HDFC
Standard Life was the only life company to be granted a
certificate of Registration.

HDFC are the main shareholders in HDFC Standard Life,

with 81.4%, while Standard Life owns 18.6%. Given
Standard Life’s existing investment in the HDFC Group,
this is the maximum investment allowed under current
regulations. HDFC and Standard Life have a long and
close relationship built upon shared values and Trust. The
ambition of HDFC Standard Life is to mirror the success of
the parent Companies and be the yardstick by which all
other insurance company’s in India are measured.

 Our Mission:

We aim to be the top new life insurance company in the

market .This does not just mean being the largest or the
most productive company in the market, it is a combination
of several things like –

 Customer service of the highest order.

 Value for money for customers.

 Professionalism in carrying out business.

 Innovative products to cater to different needs of

different customers

 Use of technology to improve service standards.

 Increasing market share.

 Our Values:

28
 SECURITY: Providing long term financial security to
our policy holders will
Be our constant endeavor. We will be do this by offering
life insurance and
Pension products.

TRUST: We appreciate the trust placed by our policy

holders in us.
Hence, we will aim to manage their investments very
carefully and live up
To this Trust.

INNOVATION: Recognizing the different needs of our

customers, we will
Be offering a range of innovative products to meet
these needs.

Our mission is to be the best new life insurance

company in India and
These are the values that will guide us in this.

-----------------

29
 GROUP COMPANIES:

HDFC was incorporated in 1977 with the primary

objective of meeting a social Need- that of promoting
home ownership by providing long-term finance to
Households for their housing needs. HDFC was
promoted with an initial share Capital of RS.100 million.
HDFC is a professionally managed organization with a
Board of directors consisting of eminent person who
represent various fields Including finance, taxation,
construction and urban policy & development.

 HDFC BANK LIMITED:

The housing development finance corporation limited

(HDFC) was
Amongst The first to receive an ‘in –principle’ approval
from the reserve
Bank of India (RBI) to set up bank in the private
sector, as part of RBI’s
Liberalization of The Indian banking industry in 1994.
The bank was
Incorporated in august

1994 in the name of ‘HDFC BANK LIMITED’, with its

registered
Office in Mumbai, India. Bank’s aim is to build sound
customer franchises
Across distinct businesses so as to be the preferred
provider of
Banking services in the segments that the bank
operates in and to
Achieve healthy growth in profitability, consistent with
the bank’s risk
Appetite.

 HDFC ASSET MANAGEMENT COMPANY

30
 LIMITED:

A mutual fund is a common pool of money in to which

investors with
Common Investment objective place their contributions
that are to be
Invested in Accordance With the stated investment
objective of the
Scheme. The investment Manager would invest the
money collected from
The investor in to assets that are Defined/ permitted by
the stated
Objectives of the scheme. For example, an

Equity fund would invest Equity and equity related

instruments and a
Debt fund would invest in bonds, Debentures, gilts etc.
The mission is to
Provide Customers with the most useful Investment
guidance and
Investment – related Service available in the country. It
is a one –stop
Solution for all investment Needs, one that will help you
get the most out
Of your money.

 HDFC SECURITIES LIMITED:

HDFC securities is a brand brought by HDFC

Securities Ltd, which has
Been promoted by the HDFC Bank & HDFC with the
objective of
Providing the Diverse Customer bases of the HDFC
Group and other
Investors a capability to Transact in The stock
exchanges & other financial
Market transactions. HDFC Securities will equip with
the necessary tools

31
 To allocate, select and manage Investments wisely,
and Support it with
The highest standards of service, Convenience and
hassle-free trading
Tools.

 HDFC REALTY LIMTED:

HDFC realty.com is a real estate site that aims to

bring credibility and
Trust to Property dealers. At HDFC realty.com one
can meet Customer
Relationship Manager for any assistance one may
require stages of
Property dealing.

 HDFC CHUBB GENERAL INSURANCE COMPANY

LIMITED:

It’s a partnership that leverages the strengths of

financial powerhouse combining The Trust and local
experience of HDFC, with the 120 years’ proven
expertise Of Chubb. Individually, you can count on
specialized products that cover not Only You and Your
family (Personal Accident, Travel and Health
Insurance) but Also Your Possessions (Motor and
Home Insurance).

For businesses, there’s a Range of Innovative

commercial and Specialty Insurance offerings that can
be Custom Designed to deliver peace of mind to your
employees and superior value
To Organization.

SWOT analysis is a tool for auditing an organization

and its environment.
It is The First stage of planning and helps marketers
to focus on key

32
 Issues. SWOT Stands for Strengths, weaknesses,
opportunities, and
Threats. Strengths And Weaknesses are internal
factors. Opportunities
And threats are external Factors.

STRENGTHS WEAKNESSE
S

OPPORTUNITIES THREATS

 In SWOT, Strengths and weaknesses are internal

factors. For examples:
A Strength could be:-

 Your specialist marketing expertise.

 A new, innovative product or service.

 Location of your business.

 Quality processes and procedures.

 Any other aspect of your business that adds values to

your product or
Service.

33
  A weakness could be::

 Lack of marketing expertise.

 Undifferentiated products or services (i.e. in relation to

your
Competitors).

 Location of your business.

 Poor quality goods or services.

 Damaged reputation.

 In SWOT, opportunities and threats are external

factors. For example:
An Opportunity could be:-

 A developing market such as the Internet.

 Mergers, joint ventures or strategic alliances.

 Moving into new market segments that offer improved

profits.

 A new international market.

 A market vacated by an ineffective competitor.

 A threat could be:

 A new competitor in your home market.

 Price wars with competitors.

34
 Price wars with competitors.

 A competitor has a new, innovation product or

service.

 Competitors have superior access to channels of

distribution.

 Taxation is introduced on your product or service.

 Simple rules for successful SWOT analysis

 Be realistic about the strengths and weaknesses of

your organization
When conducting SWOT analysis.

 SWOT analysis should distinguish between where

your organization
Is today, and where it could be in the future?

 SWOT should always be specific. Avoid grey areas.

 Always apply SWOT in relation to your competition i.e.

Better than or worse than your competition.

 Keep your SWOT short and simple. Avoid complexity

and over
Analysis.

 SWOT is subjective.

35
STREANGTHS WEAKNESSES

• Strong tie up. • Low customer

awareness.
• Brand Equity.
• Less promotion.
• Strong Network.

• Huge customer
database.

•Strong financial
base.
OPPORTUNITIES THREATS

• Large uninsured • Large uninsured

Population. Population.

• Network building. • Network building.

• Targeting the rural • Targeting the rural

Segment. Segment.

36
 CHAPTER NO .3

Products and policies of HDFC

Standard Life Insurance.

37
 Standard Life Insurance (HDFC STANDARD LIFE
PRODUCTS):

Saving Plans:

Endowment Assurance Life Insurance With Saving.

Plan.
Children’s Plan. Financial Security For Your
Child.

Money Back Plan. Life Insurance With Saving.

Investment Plan:

Single Premium Whole Of Investment With Life

Life Insurance.
Plan.

Protection Plan:

Term Assurance Plan. Life Insurance At An

Affordable Price.

Loan Cover Term Life Insurance Customized

Assurance. For Home
Loans.

Retirement Plans:

38
Personal Pension Plan. Saving For Retirement.

Unit Linked Plan:

Unit Linked Pension Plan. Making your money work, for

Young Star Plan.
Unit Linked Endowment
Plan.
a comfortable retired life.
Build up your investment for
your child’s future.
Life insurance with saving.

 SAVING PLANS:

Endowment Assurance Plan:

It is a participating (with profits) insurance plan that

offers the following
Features:

 Provides financial support to the family by way of a lump

sum payment in case of the unfortunate death of the life
assured within the term of policy.

 Provides a lump sum payment to the life assured on

survival up to
Maturity.

The lump sum payment to the basic sum assured plus

any bonus
Additions. This Plan is a wish profits saving plan and is
well suited for

39
 Saving money for your Long-term financial goals. This
Plan also helps
Provide for the Needs of your family in your absence
by paying death
During term of the Policy.

Min. term: 10 years.

Max. Term: 30 years

40
 Children’s Plan:

 Children’s Plan gives you:

• Invaluable financial support to your child.

• Helps you customize an ideal plan for your child.

• Provides you multiple options for multiple benefits.

Children’s plan is designed to secure your child future by

giving your child a
Guaranteed lump sum, on maturity or in case of your
unfortunate demise,
Early in the policy term. The premiums, paid by you, are
invested by the company to give you good term returns.

The plan receives simple reversionary bonuses, which are

usually added annual.

 You will have the choice of 3 options at the start of

the policy.

PLAN DEATH BENEFIT. MATURITY

OPTION. BENEFIT.

Maturity Future premiums Sum assured

Benefits waived bonuses
Plan. And the policy Paid.
continues
Till maturity.
Accelerated Sum assured + On the survival of
Benefit Bonuses paid and the insured parent
Plan. the policy stops. to the maturity date,

41
 Sum assured +
Bonuses paid.

Double Sum assured paid, Sum assured

benefits future premiums bonuses
Plan. waived, and the Paid.
policy continues till
maturity.

The eligibility ages for the life assured under the plan are
as
Follows:

Minimum Age at Entry 18

years.

Maximum Age at Entry 60

years.

Maximum Age at Maturity 75

years.

Minimum Term: 10 years Maximum

Term: 25 years.

 Money Back Plan:

It is a participating (with profits) insurance plan that

offers the following
Features:

 Payment of cash lump sums, each of which is a

proportion of the basic sum assured, at 5 year intervals
during the term of policy.

 On survival up to maturity, equal to the basic sum

assured plus any bonus

42
 An addition less the cash lump sum paid earlier is
provided. In case of the

Unfortunate death of life assured within the term of the

policy, the basic
Sum Assured plus any bonus additions is provided.
This is over and
Above The earlier Payouts.

 INVESTMENT PLAN:

SINGLE PREMIUM WHOLE OF LIFE INSURANCE

PLAN

Single Premium Whole of life Insurance Plan is well

suited to meet
Your long – term investment needs. This participating
(with profits)
Plan offers you the following benefits:

 A sound investment:

Your money will be invested in our with profits fund. The

Fund aims to provide secure and stable long-term
growth. Normally, we will declare a compound
reversionary bonus for your policy every year and add it
to your policy on its anniversary. In addition, on death,
surrender or on the Guaranteed dates, a terminal bonus
might be payable. You pay a single premium and the
policy will pay you a lump sum.

 Flexibility of term:

 Even after choosing your policy, you can decide on

The policy Term. For 4 weeks after may one of the 10th,
15th, 20th, and

43
 Subsequent five-year Anniversaries, you can choose to
receive the sum
Assured Plus any attaching Bonuses, in full. Once the
money has been
Received, your Policy will cease.

♦ Surrender value:

♦ You can terminate the policy any time, after it has been
in
Force for at least 6 months and receive a surrender
value. In case of
Unfortunate Death. Your nominee gets the sum
assured secured by your
Premium, plus any Attaching bonuses. No medical
requirements: We do
Not require you to undergo any medical test for this
plan.

Minimum age at entry : 18

years.
Maximum age at entry : 70
years.

44
♦ PROTECTION PLANS:

1. Term Assurance plan:

Under this plan, a sum assured is payable in case of

the contact. One can
Choose the lump sum that would replace the income
lost to one’s family in
The Unfortunate Event of one’s death. Since this non-
participating (without
Profits) Plan is a pure risk cover plan, no benefits are
payable on survival
To the end of the term of the policy.

Why should you buy this product?

If you have a family that you care for, you should

consider what would
Happen In case of your unfortunate death. The
emotional void cannot be
Filled, but Financial insecurity can be avoided. By
taking this affordable life
Insurance Plan, you can provide for the well benign of
your family in case
Of your Unfortunate death. This plan comes to you at a
minimum cost and
Is well-suited for the value-conscious customer.

Minimum Age: 18
Maximum: 60

2. Loan covers Term Assurance Plan:

Loan Cover term Assurance (LCTA) Plan provides a

lump sum on the
Unfortunate death of the life assured during the term of
the plan. The lump

45
 Sum will be a decreasing percentage of the initial sum
assured. As the
Outstanding Loan decreases as per the loan schedule,
the cover under
The Policy decreases as per the loan schedule. Since
this is a non-
Participating (Without profits) pure risk Cover plan, no
benefits are
Payable on survival to the end of the term of the Policy.

♦ Retirement Plan :

This participating (with profits) plan is basically a savings

contract, which is
Designed to provide an income for life from retirement. It
dose this by
Accumulating a notional lump sum on retirement,
comprising of sum assured plus any attaching bonus.
Subject to the prevailing regulations, part of this lump
Sum can be taken in form of cash and the rest
converted to an annuity at the rate then offered.
Alternatively, if it is permitted by the prevailing
regulations, the Notional lump sum can be used to buy
an annuity with any other insurance Company who will
accept such business.
On earlier death after the first year, for Regular Premium
policies all premiums Paid to date will be returned with
compound interest calculated at 8% per annum Subject
to a maximum of the sum assured plus bonuses
declared to date. For Single premiums, it is sum assured
plus bonuses declared to date. Normally, we will declare
a reversionary bonus once a year. Once added, it
cannot be reduced. Reversionary bonus will take the
from of a simple addition to your Policy benefits. In
addition, on maturity, a terminal bonus, reflecting the
period since the last addition of reversionary bonus, also
be payable.

46
♦ Unit Linked Plans:

1. Unit linked Pension Plan:

The Unit Linked Pension Plan is an insurance policy

that is designed to
Providing a retirement income for life with the freedom
to maximize
Your investment returns by providing a choice of
thoroughly researched
And selected investments. You can choose your
premium and selected
Investment Funds. At the end of the policy term, you
will receive the
Accumulated value of your funds, which will be used to
provide your
Pension income.

In the event of your unfortunate demise during the

policy term, your
Spouse Will receive a cash lump sum to help him or her
manage their
Retirement years.

♦ Benefits :-

o Provides a post retirement income for life.

o Gives you the flexibility to plan your retirement

date.

o Gives you the freedom to invest premiums as

per your preference.

o Offers you potentially higher market linked

returns.

47
 o Gives you tax benefits on your premiums and on
receiving the lump Sum.

Your investment will buy in any of 6 funds designed to

meet your risk
Approach. All units in a particular fund are identical.
You can choose
From all or any of the following 6 funds:-

a) Liquid fund:-

 Extremely low capital risk.

 Very stable returns.

The liquid fund invests 100% in bank deposits and

high quality short-term
Money market instruments.

b) Secure Managed:-

 More capital stability than equity funds.

 Higher potential fund than liquid fund.

The Secure Managed fund invests 100% in

Government Securities and
Bonds Issued By companies or other bodies with a high
credit standing.
However, a Small Amount Of working capital may be
invested in cash to
Facilitate the day-to-Day Running of The fund. This
fund has a low level of
Risk but unit prices may Still go or down.

c) Defensive Managed:-

48
  Access to better long-term returns through equities.

 Significant bond exposure keeps risk down.

15% to 30% of the Defensive Managed fund will be

invested in high quality
Indian Equities. The remainder (70% to 85%) will be
invested in
Government Securities and Bonds issued by companies
or other bodies
With a high credit standing. In Addition, a small amount
of working capital
May be invested in cash to facilitate the Day-to-day
running of the fund.
The fund has a moderate level of risk with the
Opportunity to earn higher
Returns in the long term from some equity investment
Unit price may go up
Or down.

d) Balance Managed:-

 Further increased exposure to equities to give a

greater long-term
Return.

 A smaller bond holding will aid diversification and

provide a little
Stability.

The day-to-day running of the fund. The fund has high

level of risk with the
Opportunity to earn higher returns in the long term from
some equity
Investment. Unit price may go up or down.

49
e) Equity managed fund:-

 Further increased exposure to equities to give a

greater long-term
Return.

 A smaller bond holding will aid diversification

and provide a little
Stability.

The fund has very high level of risk 60% to 90% of the
equity Managed
Fund will be invested in high quality Indian equities.
The remainder will be
Invested in Government Securities and Bonds issued
by companies or
Other Bodies With a high credit standing.

f) Growth fund:-

 For those who wish to maximize returns.

 100% investment in high level of risk with the

opportunity to
Maximize the returns.

2. Unit Linked Young Star Plan:

Young Star Plan Gives You:

o An outstanding investment opportunity by

providing a choice of

50
 Thoroughly researched and selected
investments.

o Valuable protection in case of the insured

parent’s unfortunate demise.

o Very flexible benefits combinations and payment

options.

o Flexible additional benefits options such as

critical illness cover.

You can choose your premium and the investment fund

or funds. Your
Premium will then be invested, net of charges in your
chosen funds in the
Proportion you specify. At the end of the policy term,
you will receive the
Accumulated value of your funds. In case of your
unfortunate demise
During the policy term, company will continue the
policy and continue to
Pay the original premiums you had Chosen. Your
family will receive the
Sum assured you had chosen plus the Fund build up
by your and
Company’s contributions. Your investment will buy in
any of 5 funds
Designed to meet your risk approach.

All units in a particular fund are identical. You can

choose from all or any
Of the Following 5 funds:-

I. Liquid fund.

II. Secure managed fund

51
 III. Defensive managed fund.

IV. Balance managed fund.

V. Growth fund.

 Type of benefits providing by unit linked young star

plan:-

♦ Death benefits:

a) We will pay the sum assured to the beneficiary.

b) Your family need not pay any future premiums.

c) We will pay future premiums on your behalf.

d) Any critical illness cover terminates immediately.

♦Maturity benefits:

a) We will pay to the beneficiary the value of the

accumulated fund.

b) The fund value will include all contributions paid by

you and the life
Insurance company, plus all investment growth, less
charges.

52
 I. Liquid fund:

The Liquid fund invests 100% in bank deposits and high

quality short-term
Money Market instruments. The fund is designed to be
cash secure and has
A very low level of risk; however, unit price may
occasionally go down due to
The use of short-term Money market instruments. At
inception, investments
Up to 20% can be allocated to this fund.

II. Secure Managed:-

The Secure Managed fund invests 100% in Government

Securities and
Bonds Issued By companies or other bodies with a high
credit standing.
However, a small Amount of working capital may be
invested in cash to
Facilitate the day-to-day Running of the fund. This fund
has a low level of
Risk But unit prices may still go up or down.

III. Defensive Managed:-

15% to 30% of the defensive Managed found will be

invested in high quality
Indian Equities. The remainder will be invested in
Government Securities
And Bonds issued by companies or other bodies with a
high credit standing.
In addition, a small Amount of working capital may be
invested in cash to
Facilitate the day-to-day Running of the fund. The fund
has a moderate level

53
 Of risk with the opportunity to earn higher returns in the
long term some
Equity investment. Unit price may go up or down.

IV. Balanced Managed:-

30% to 60% of the Balanced Managed fund will be

invested in high qualities Indian Equities. The remainder
will be invested in Government Securities and Bonds is
Issued by companies or other bodies with a high credit
standing. In addition, a small Amount of working capital
may be invested in cash to facilitate the day-to-day
Running of the fund. The fund has a high level of risk with
the opportunity to earn higher returns in the long term
from some equity investment. Unit prices may go or
Down.

V. Growth fund:-

The Growth fund invested 100% in high quality Indian

equities. In addition, a
Small Amount of working capital may be invested in cash
to facilitate the
Day-to-day Running of the fund. The fund has very high
level of risk with the
Opportunity to earn higher returns in the long term from
the investment in
Equities. Unit prices May go up or down.

3. Unit Linked endowment Plan:-

♦Unit Linked endowment plan gives you:-

54
 • An outstanding investment opportunity by providing
a choice of thoroughly Researched and selected
investments.

• Valuable protection in case of the insured life’s

unfortunate death.

• Flexible benefits combinations and payment options.

• Flexible additional benefits options such as critical

illness cover.

• Access to your accumulated fund before maturity.

You can choose your premium and investment fund or

funds. Your premium will then be invested, net of
charges in your chosen funds in the proportion you
specify. At the end of the policy term, you will receive
the accumulated value of your funds. In case of your
unfortunate demise during the policy term, company will
pay the greater of your sum assured (less any with
drawls you have made) and your total fund value to your
family. Your investment will buy in any of 5 funds
designed to meet your risk approach. All Units in a
particular fund are identical. You can choose from all or
any of the Following 5 funds:-

a) Liquid Fund:-

 Extremely low capital risk.

 Very stable returns.

55
 The liquid fund invests 100% in bank deposits and high
quality short-term
Money Market instruments.

b) Secure Managed:-

 More capital stability than equity funds.

 Higher potential than liquid fund.

The Secure Managed fund invests 100% in Government

Security and Bonds issued by companies or other
bodies with a high credit standing. However, a small
Amount of working capital may be invested in cash to
facilitate the day –to- day running of the fund. This fund
has a low level of risk but unit price may still go up or
down.

c) Defensive Managed:-

 Access to better long-term returns through equities.

 Significant bond exposure keeps risk down.

15% to 30% of the defensive Managed found will be

invested in high quality Indian equities. The remainder
(70% to 85%) will be invested in Government Securities
and Bonds issued by companies or other bodies with a
high credit standing. In Addition, a small amount of
working capital may be invested in cash to facilitate the
Day-to-day Running of the fund. The fund has a
Moderate level of Risk with the opportunity to earn
higher returns in the long Term some equity Investment.
Unit Price may go up or down.

d) Balance Managed:-

56
  Increased equity exposure gives better long-term
return.

 Bond exposure providing some stability.

The fund has a high level of risk with opportunity to earn

higher returns in
The long from some equity investment. Unit price may
go up or down.

e) Growth fund:-

 For those who wish to maximize their returns.

 100% investment in high quality Indian equities.

The fund has very high level of risk with the

opportunity to maximize the Returns.

♦The past performance of any of the fund is not

necessarily an
indication of future performance.

♦ There are no investment guarantees on the returns of

unit linked
Funds.

57
 CHAPTER NO .4
OBJECTIVE & RESEARCH

METHODOLOGY.

♦ PROJECT OBJECTIVE:-

The insurance industry has never been in such lime

light as it is now. It is

58
 Witnessing an unprecedented boom. The massive
upheaval in insurance
Sector Has Opened Gates for private insurance as well.
The Indian market
Of life Insurance is flooded with private companies
vying with each other to
Create a Niche for them. This Project undertaken is a
market survey
Pertaining to Mind set and Inclination towards the life
insurance.

♦ The project undertaken shall meet the following

objectives:-

♦ To know the awareness of life Insurance among the

peoples of Chandigarh and Mohali city.

♦ Most Important Investment Area.

♦Research Methodology and Data Base:-

Research methodology is a way to systematically solve

the research problem. It May be understood as a
science of studying how research is done scientifically.
In it we study the various steps, the research process
that is generally adopted to Study the research problem
and marketing research is a systematic and objective of
study problems pertaining to the marketing of goods and
services. Market research specifies the information
required to address these issues; designs the method of
collecting information; analyses the results and
communicating the findings and their implications. The

59
 basic steps in this Research are shown in the chart
below:-

♦ The Research Process:-

Define the research problem and its

objectives

Review concepts and theories

Research design including sample

design

Collection of data survey

Analysis of data

Interpretation and report writing

♦ Data Collection:-

60
 Data has been collected both from primary as well as
secondary sources
As Described below:

♦ Primary sources:-

The primary source of data was Questionnaires

conducted as part of the
Survey. This data forms the backbone of the analysis of
the customers
Requirements. The survey is described in detail in the
following section:
The sample size of 100 was taken and almost all
questionnaires were
Filled And Source of Income was salaried class,
Businessmen &
Professional, Student and Age group was 20 to 55
years.

♦ Secondary sources:-

The secondary sources of data were the various

websites and insurance
Manuals. This mainly provided information about the
insurance sector and
The company’s profile. These helped in
gaining knowledge about the
Industry. These sources are listed in
References.

♦ Statistical Method Used For Analysis:-

The data collection was done through Filling of

Questionnaires mostly
Based in Chandigarh and Mohali. And the
questionnaire was designed in

61
 Such a way that It is self-explanatory. The
questionnaire of 12 questions
Regarding awareness of Life insurance and private
insurance companies.
And the various methods were Used to Analyses the
data as under:-

1. Percentages.

2. Bar Graphs.

3. Tables And.

4. Figures.

----------------

CHAPTER

62
 NO .5

DATA ANALYSIS

&

INTERPRETATION.

63
Question (1): –

Do you know about the term ‘Life Insurance’?

1. Yes [ ] 2. No [ ]

YES 100%

NO 0%

64
 AWARENESS IN LIFE-INSURANCE

120%
100%
100%
Percentage

80%
60%
40%
20%
0%
0%
YES NO
Opinion

♦ 100% of people said ‘yes’ it means that all people are

very well aware about Life insurance. So a life insurance
company has done well to inform general Public.

65
Question (2):–

From where did you come to know?

1. Newspaper [ ] 2. Magazines [ ]
3. Electronic Media [ ] 4. Other Sources [ ]

Newspaper 28.34%
Magazines 4.17%
Electronic Media 15.87%
Other Sources 51.62%

66
 SOURCE OF AWARENESS

60.00%
51.62%
50.00%

40.00%
Persentage

28.34%
30.00%

20.00% 15.87%

10.00% 4.17%
0.00%
Newspaper Magazines Electronic Media Other Sources

Sources

♦ Most of people have come to know about it from other

source which includes Agents, relatives, friends etc.
Newspapers are doing fairly well. A magazine has not
proved a good source.

67
Question (3):-

Life Insurance is necessity of Life?

1. Completely Agree [ ]
2. Partially Agree [ ]
3. Disagree [ ]

Completely Agree 95%

Partially Agree 49%

Disagree 1%

NEEDS OF INSURANCE

Disagree
1%

Partially
Agree
4%
Completel
y Agree
95%

68
♦ Approximately all people (95%) agree with the view that
it is necessity of

Life, because it has lot of uncertainties.

69
 Question (4):-

Why would you go for “Life Insurance”?

1. Risk Coverage [ ] 2. Investment [ ]

3. Tax Benefits [ ] 4. All of above [ ]

Risk Coverage 36.57%

Investment 3.11%

Tax Benefits 12.81%

All of above 47.51%

50.00% 47.51%
45.00%
40.00% 36.57%
35.00%
Percentage

30.00%
25.00%
20.00%
15.00% 12.81%
10.00%
5.00%
3.11%
0.00%
Risk Coverage Investment Tax Benefits All of above
Opinion

♦ So approximately half of people (47.51%) will go for

insurance for all benefits Like risk coverage, tax benefits

70
and investment. After that risk coverage was Main logic
for getting policy (36.57%).

71
Question (5):-

A) Are you insured? If yes, then with which

Company?

1. Yes [ ] 2. No [ ]

Yes 85.20%

No 14.80%

14.80%

Yes
No

85.20%

♦ Maximum people of sample area (85.20%) were

ensured.

B) Insurance Preference:-

72
 L.I.C 86.20%
Others 13.18%

Others,
13.18%

L.I.C
Others

L.I.C,
86.82%

♦ LIC is big leader in the insurance industry with share of

86.82%, other

Companies like HDFC Standard life Insurance, ICICI

prudential, Max

New York, Tata AIG, ING Vyasa etc. have total of just
13.18% share.

73
74
 Question (6):-

Are you satisfied with the service of your insurance

Agent/company?

1. Yes [ ] 2. No [ ]

YES 74%

NO 26%

COUSTOMER SATISFACTIONS
74%
80%
70%
60%
Percentage

50%
40%
30%
26%
20%
10%
0%
YES NO

Opinion

♦ Whole sample of people was satisfied, so no company

has left any weak spot, on which other company can
take advantage.

75
 Question (7):-

Which sector would you prefer to get insured from?

1. Govt. [ ] 2. Private. [ ]

Government 81.89%

Private 18.11%

PREFRENCE OF COUTOMERS
18.11%

Government
Private

81.89%

♦ 81.89% of people are preferring to Govt. Sector for

insurance i.e. LIC, because they think that it is more
safe. With other private companies there is risk.
Question (8):-

76
 In what type of instruments would you prefer to
Invested?

1. Property [ ] 2. Banks [ ]
3. Security [ ] 4. Insurance [ ]
5. Others [ ]

Property 41.87%
Banks 27.70%
Securities 7.21%
Insurance 18.66%
Others 4.54%

MOST PREFERABLE INVESTMENT AREA

45.00% 41.87%
40.00%
35.00%
Percentage

30.00% 27.70%
25.00%
18.66%
20.00%
15.00%
10.00% 7.21%
4.54%
5.00%
0.00%
Property Banks Securities Insurance Others

Investment opinions

♦ Good proportion of people (41.87%) would like to invest

in property. On
Second preferences are Banks (27.72%).Insurance got
(18.66%)

77
 Preference.Securities got least preference, as people
thought, they are
Risky & Includes lot of fluctuations in values.

78
Question (9):-

Do you have Pension Plan?

1. Yes [ ] 2. No [ ]

Yes 6%

No 94%

6%

Yes
No

94%

79
♦ It means most of people don’t have any pension plan
except Govt. pension-plan.

80
Question (10):-

Should life insurance be made compulsory?

1. Yes [ ] 2. No [ ]

Yes 71.60%
No 28.40%

28.40%

No
Opinion

71.60%

Yes

0.00% 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00

% % % %
Percentage % % % %

♦ 4/5 of people said that life insurance should be made

compulsory, provided People should be able to pay
premiums. 28.40% says it should not be made
Compulsory; it depends on their own wish.

81
♦ AGE COMPOSITION:-

AGE COMPOSITION NO. OF PEOPLE

More than 20 years 9

20-30 30
30-40 47
40 and above 14
TOTAL 100

AGE C OMPOSITION
47
50
40 30
NO. OF 30
PEOPLE
20 14
9
10
0
More than 20-30 30-40 40 a nd
20 ye ars a bove
AGE GROUP

 In this market survey most of the people are

between the age group of 20-40yrs which
indicates that this report has most of the
emphasis (84%) on those people who are well
established in their related field i.e. Business,
profession, job, etc.

82
INCOME SCENARIO:-

ANNUAL INCOME PERCENTAGE

LESS THAN
Rs.10,000 30
Rs.10,000 -
Rs.20,000 22
Rs. 30,000 –
Rs.40,000 35
Above Rs. 50,000 13
TOTAL 100

INCOME SCENARIO

40
35
35
30
PERSANTAGE

30
22
25
20
15 13
10
5
0
LESS THAN Rs.10,000 - Rs. 30,000 – Abov e Rs.
Rs.10,000 Rs.20,000 Rs.40,000 50,000
INCOM E GROUP

83
 More than half of the people have annual
income below 20,000 thousand (52%) and rest
of the people belongs to high annual income
group (48%). It indicates that this report has
balanced research and findings without focusing
on any specific income group. People of diverse
income groups helped us to study the absolute
picture of life insurance as a tool of investment.

84
 OCCUPATION SCENARIO:-

OCCUPATION SCENARIO
STUDENT
13%

SERVICE BUSINESS
12% 53%

PROFESSION
22%

 In this market survey more than half of the

people are businessman
(53%) and rest of the people belongs to
profession and service. It
Indicates that this report has total emphasis
(98%) on those people
Who are well established, experienced,
decision makers?

85
CHAPTER

NO .6

Conclusion.

86
♦ CONCLUSION:-

Over the part three years, around 40 companies have

expressed interest in entering the sector and many foreign
and Indian companies have arranged Anticipatory
alliances. The threat of new players taking over the market
has-Been overplayed. As is witnessed in other countries
where liberalization took Players will continue to whole
strong market share positions, but there will be enough
business for new entrants to be profitable. Opening up the
sector will certainty mean new products, better packaging
and improved customer service? Both new and existing
players will have to explore new distribution and marketing
channels. Potential buyers for most of this insurance lie in
the middle class. New insurers must segment the Market
carefully to arrive at appropriate products and pricing.
Recognizing the potential, in the past three years, the
nationalized insurers have already begun to target niches
like pensions, women or children. There should be efforts
made by different Insurance companies to efforts Made by
different Investment companies to increase awareness
among general Public. This can be by doing advertising
through various Medias.

87
 CHAPTER

NO .7

Findings

And

Recommendations.

88
 I. When people of Chandigarh were asked to know about
life insurance all people Said yes this shows all people
are very well aware about life insurance. It also shows
that Life Insurance Companies has done well to inform
general public.

II. Most of people have come to know about it from different

a source which includes Agents, relatives; friend’s etc.
newspapers are doing fairly well. Magazines has not
Proved a good source.

III. Approximately all people (95%) agree with the view that it
is necessity of life,
Because it has lot of uncertainties.

IV. So approximately half of people (47.51%) will go for life

insurance for all benefits and investments. After that risk
coverage was main logic for getting policy (36.57%).

V. LIC is the big leader in the life insurance industry with

share of 86.82%, other Companies like HDFC Standard
Life Insurance, ICICI Prudential, and Max New York,
TATA AIG, ING Vyasa etc, have total of just 13.17%
share.

VI. Whole sample of people was satisfied, so no company

has left any weak spot, on which other company can take
advantage.

VII. 81.89% of people are preferring to govt. sector for

insurance i.e. LIC because they think that it is safer. With
other private companies their risk.

VIII. Good proportion of people would like to invest in property.

On second
Preferences are banks. Insurance got third rank in order
of preference to
Invest.

89
IX. Most of people don’t have pension plan expect govt.
pension plan.

X. 4/5 of people said that life insurance should be made

compulsory, provided
People should be able to pay premiums. 28.40% says it
should not be
Made Compulsory, it depends on their own wish.

♦ SUGGESTIONS AND RECOMMENDATIONS :-

♦ Very few people gave suggestions. Some important one

was:

♦ Bonus offered should be increased.

♦ Rural areas must be properly covered.

♦ More plans for common man and lower class.

♦ Tax benefits on life insurance premium should be

increased section 88.

♦ Premium should be less so that everybody can pay it.

♦ Put up ATM’s in different areas so that premium can be

collected across
The country.

♦ Organize some seminars regarding insurance sector in

which one should.

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♦ Come to know about insurance sector that why it is so
important for individual Life.

♦ FUTURE POSSIBILITIES:-

Job opportunities are likely to increase minified. The

number of people
Working in the insurance sector in India is roughly the
same as in the UK
With a population that is 1/7 India’s the US with a
population 1/4 the size
Of India has nearly 4 times the number. The
liberalization of the
Insurance Sector promises several new jobs
opportunities for those
Employed in the Finance sector who are equipped
with degrees in
Finance. There will be Demand for marketing
specialists, finance
Experts, Human resource Professionals, engineers
from diverse streams
Like the Petrochemical and Power sectors, systems
professionals,
Statisticians And even medical Professionals. There
could be a huge
Inflow of funds into the country. Given the industry’s
huge requirement of
Start- up Capital, the initial years after opening up are
bound to see a
Strong inflow of foreign capital. Substantial shift in the
distribution of
Insurance in India Is likely to take Place. Initially,
insurance is seen as a
Complex product with a high advice and service
component. Buyers

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 Prefer a face –to-face Interaction and place a High
premium on brand
Name and reliability. Finally, some potential Indian
entrants into
Insurance Hope to ride their Existing distribution
networks and customer
Based. For Example, Financial Organizations like
ICICI, HDFC or Kotak
Mahindar Intend to tap The Thousand of customers,
who already buy
Their deposits, Consumer Loans or Housing finance.
Other hopeful
Entrants anticipate Specific Alliances such as with
hospitals to provide
Health cover.

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 CHAPTER
NO.8

Bibliography.

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 ♦BIBILIOGRAPHY:-

1. www.licindia.com

2. www.hdfcinsurance.com

3. www.irdaindia.org

4. www.insurancefinder.com

5. www.bazazallianz.com

6. www.maxnewlife.com

7. www.iciciprudentiallife.com

8. www.tataaig.com

9. www.indianinline.com

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94
CHAPTER

NO.8

Annexure.

95
 ♦QUESTIONNAIRE:-

HDFC STANDARD

LIFE INSURANCE Respondent

No.:______

I am_________________ pursuing MBA from TERII. I am

doing a project on Life Insurance Awareness. The
information provided by you shall be kept confidential.
Please be honest in your answer. I shall be thankful for the
time and effort you spend in filling the questionnaire.

1. Do you know about the term “Life Insurance”?

 Yes  No
2. From where did you come to know?
 Newspaper.
 Magazines.
 Electronic Media.
 Other sources.
3. Life Insurance is necessity of life?
 Completely Agree.
 Agree.
 Partially Agree.
 Disagree.

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4. Why would you go for life Insurance?
 Risk Coverage.  Investment.  Tax Benefits.

 All of the above.

5. Are you insured? If Yes, then with which company?
 Yes  No

Company Name ------------------------------------------.

6.Are you satisfied with the service of your insurance
agent / corporation?
 Yes  No
7. Which Sector would you prefer to get insurance?
 Government.  Private.
8. In what type of instruments would you prefer to
invest?
 Property  Bank  Security
 Insurance  Others ------------------------
9. Do you have any pension plans?

 Yes  No
10. Should life insurance be made compulsory?

 Yes  No
11. Any suggestions from your side?

-------------------------------------------------------------------------
--------------------
----------------------------------------.

Personal Details

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Name: --------------------------------------------------

Age:  More then 20 years

 20-30 years
 30-40 years  40 and above.
Annual family income:
 Less than 10,000
 10,000 - 20,000
 30,000 - 40,000  Above 50,000

Occupation:  Salaried  Student

 Businessman  Profession.

Thanks for your response.

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