Professional Documents
Culture Documents
Research Project Report On: "To Study The Investor Perception Towards Life Insurance Policies"
Research Project Report On: "To Study The Investor Perception Towards Life Insurance Policies"
on
“TO STUDY THE INVESTOR PERCEPTION TOWARDS
LIFE INSURANCE POLICIES”
Submitted by
Umar Zaid Khan
MBA IV Semester
Roll No-1170672149
Session 2018-2019
School of Management
1
BONAFIDE CERTIFICATE OF DEAN -SCHOOL OF
MANAGEMENT
1
DECLARATION
I Umar Zaid Khan have successfully completed my research project report on TO STUDY THE
I hereby declare that all the information provided in this project report are true to the fullest of my knowledge
Place: LUCKNOW
Date:
1
ACKNOWLEDGEMENT
I would like to take this opportunity to express my profound gratitude and deep regard to my my college faculty
mentor Mrs. Anuradha Maurya for their exemplary guidance, valuable feedback and constant encouragement
throughout the duration of the project. Their valuable suggestions were of immense help throughout my project
work. Their positive criticism kept me working to make this project in a much better way.
Working under them was an extremely knowledgeable experience for me. I would also like to give my sincere
gratitude to all the friends and colleagues who co-operated with me during this project.
This research report is a result of contribution of distinct personalities whose guidance here made my effort a
1
CONTENT
Part I
1. Introduction
2. Industry profile
3. Company profile
a. About organization
b. Organization chart
Part II
6. Research Methodology
Part III
8. Findings
10. Suggestions/Recommendations
11. Conclusion
12. Bibliography
1
INTRODUCTION
Everyone is exposed to various risks. Future is very uncertain, but there is way to
protect one’s family and make one’s children’s future safe. Life Insurance companies
help us to ensure that our family’s future is not just secure but also prosperous.
Life Insurance is particularly important if you are the sole breadwinner for your
family. The loss of you and your income could devastate your family. Life insurance
will ensure that if anything happens to you, your loved ones will be able to manage
financially.
This study titled “Study of Consumers Perception about Life Insurance Policies”
enables the Life Insurance Companies to understand how consumer’s perception
differs from person to person. How a consumer selects, organizes and interprets the
service quality and the product quality of different Life Insurance Policies, offered by
various Life Insurance Companies.
1
WHAT IS INSURANCE?
More specifically, insurance may be defined as a contact between two parties, wherein
one party (the insurer) agrees to pay to the other party (the insured) or the beneficiary, a
certain sum upon a given contingency (the risk) against which insurance is required.
1
TYPES OF INSURANCE
Insurance occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of present day
economic system. The different type of insurance have come about by practice within
insurance companies, and by the influence of legislation controlling the transacting of
insurance business, broadly, insurance may be classified into the following categories:
a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance
1
THE IMPORTANCE OF INSURANCE
Insurance benefits society by allowing individuals to share the risks faced by many
people. But it also serves many other important economic and societal functions. Because
insurance is available and affordable, banks can make loans with the assurance that the
loan’s collateral (property that can be taken as payment if a loan goes unpaid) is covered
against damage. This increased availability of credit helps people buy homes and cars.
Insurance also provides the capital that communities need to quickly rebuild and recover
economically from natural disasters, such as tornadoes or hurricanes.
Not all effects of insurance are positive ones. The possibility of earning insurance
payments motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would think of arson, the
willful destruction of property by fire, as a potential source of money.
1
THE INSURANCE INDUSTRY TODAY
Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services businesses—
including insurance, banking, and securities trading—the roles, products, and services of
these formerly distinct businesses have become blurred. For instance, citizens in the U.S.
state of California voted in 1988 to allow banks to sell insurance in that state. In Canada,
banks may also soon be allowed to sell insurance.
1
EVOLUTION OF INSURANCE IN INDIA
The marine insurance is the oldest form of insurance. If we trace Indian history
there are evidence that marine insurance was practiced here about three thousand years
ago. The code of Manu indicates that there was the practice of marine insurance carried
out by the traders in India with those of Srilanka, Egypt and Greece .it is wonderful to see
that Indians had even anticipated the doctrine of average and contribution. Fright was
fixed according to season and was then very much at the mercy of the wind and other
elements. Travelers by sea and land were very much exposed to the risk of losing their
vessels and merchandise because of piracy on open seas and highway robbery of
caravans was very common. The practice of insurance was very common during the rule
of Akbar to Aurangzeb, but the nature and coverage of the insurance in this period is not
well known. It was the British insurer who introduced general insurance in India in the
modern form. The Britishers opened general insurance in India around the year 1700 .the
first company known as the sun insurance office was set up in Calcutta in the year 1710.
This was followed by several insurance companies like London assurance and royal
exchange assurance (1720), Phoenix Assurance Company (1782). Etc. General insurance
business in the country was nationalized with effect from 1st January 1973 by the
General Insurance Business (Nationalization) Act, 1972. More than 100 non-life
insurance companies including branches of foreign companies operating within the
country were amalgamated and grouped into four companies, viz., the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta,
Bombay, New Delhi and Madras, respectively.
1
Life insurance in the current form came in India from united kingdom
with the establishment of a British firm, oriental life assurance company in 1818 followed
by Bombay life assurance company in 1823, the madras equitable life insurance society
in 1829 and oriental life assurance company in 1874.prior to 1871, Indian lives were
treated as sub standard and charged an extra premium of 15% to 20%. Bombay mutual
life assurance society, an Indian insurer that came in to existence in 1871, was the first to
cover Indian lives at normal rates. The Indian insurance company Act 1923 was enacted
inter alia, to enable the government to collect statistical information about life and non-
life insurance business transacted in India by Indian and foreign insurer, including the
provident insurance societies.
The first half of the 20th century marked by two world war, the adverse affects
of the World War I and World War II on the economy of India, and in between them the
period of world wide economic crises triggered by the Great depression. The first half of
the 20th century was also marked by struggles for India’s independence. The aggregate
effect of these events led to a high rate of bankruptcies and liquidation of life insurance
companies in India. This had adversely affected the faith of the general public in the
utility of obtaining life cover
In this background, the Parliament of India passed the Life Insurance of India Act on
19th June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, by consolidating the life insurance business of 245 private life insurers
and other entities offering life insurance services.
1
Since 1972, the insurance sector has been totally under the control of
government of India through LIC and GIC and its subsidiaries. As a result, revenue of
both of them increased in the last years .the amount of savings pooled by LIC increased
from Rs.2704 crores in 1974 to Rs .57670 in 1994 with an annual growth rate of 16.53%
.similarly premium underwritten by GIC rose from 280 crores in 193 to 7647 crores in
1998 showing an annual growth rate of 25.18%.
Despite increase in premium collected by both LIC and GIC their were inefficiency
and red tapeisum creeped in to the insurance sector. Apart from that a major policy shift
by the Narasimha Rau government during 1990’s.the Indian economy opened for foreign
competition .In this background The government of India in 1993 had set-up a high
powered committee by R.N Malhothra ,former governor reserve bank of India, to
examine the structure of Indian insurance sector and recommended changes to make it
more efficient and competitive keeping in view structural changes in other part of the
financial system of the country.
Insurance sector has been opened up for competition from Indian private insurance
companies with the enactment of Insurance Regulatory and Development Authority Act,
1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and
Development Authority (IRDA) was established on 19th April 2000 to protect the
interests of holder of insurance policy and to regulate, promote and ensure orderly growth
of the insurance industry. IRDA Act 1999 paved the way for the entry of private players
into the insurance market, which was hitherto the exclusive privilege of public sector
insurance companies/ corporations.
1
EVOLUTION OF INSURANCE ORGANIZATION
With a view to serve the society, the insurance organizations have been developed
in different forms with innovation of insurance practice for social welfare and
development; some of these forms are outlined here.
a) Self-insurance
The arrangement in which an individual or concern sets up a private fund to meet
the future risk. If some losses happened in the future the firm meets the loss out of the
fund. While it may be called ‘self insurance’ it is not a single matter of fact, insurance at
all because there is no hedge, no shifting, or distributing the burden of risk among larger
Persons. It is merely a provision to meeting the unforeseen event. Here the insured
become the insurer for the particular risk. But it can be effectively worked only when
there is wide distribution of risks subjected the same hazard.
b) Partnership
A partnership firm may also carry on the insurance business for the sake of profit. Since it
is not an entity distinct from the persons comprising it, the personal liability of partners in
respect to the partnership debts is unlimited. In case of huge loss the partners may have to
pay from their own personal funds and it will not be profitable to them to starts insurance
business .in the early period before the advent of joint stock companies many insurance
undertakings were partnership firms or unincorporated companies
1
d) Mutual fund companies
The mutual fund companies are co- operative association formed for the
purpose of effecting insurance on the property of its members. The policyholders are
themselves the shareholders of the companies each member is insured as well as insured.
They have power to participate in management and in the profit sharing to the full extent.
Whenever the income is more than the expenses and claims, it is accumulated I the form
of saving and is entitled in reducing the rate of premium. Since the insured are insurers
also, they always try to reduce the management expenses and to keep the business at
sound level.
f) Lloyd’s Association
1
g) State Insurance
The government of a nation, some times, owns the insurance and runs the
business for the benefit of the public. The sate insurance is defined as that insurance
which is under public sector. In Brazil, Japan and Mexico, the insurance are largely
nationalized. Previously, the state undertook only those insurances, which were regarded
as vital for the national interest.
Having looked at the insurance sector, the efforts made by the government to
make the industry more dynamic and customer friendly. To begin with, the Malhotra
committee was set up with the objective of suggesting changes that would achieve the
much required dynamism.
1
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each stat
1
Few Life Insurance policies are:
Whole life policies - Cover the insured for life. The insured does not receive money
while he is alive; the nominee receives the sum assured plus bonus upon death of the
insured.
Endowment policies - Cover the insured for a specific period. The insured receives
money on survival of the term and is not covered thereafter.
Money back policies - The nominee receives money immediately on death of the
insured. On survival the insured receives money at regular intervals during the term.
These policies cost more than endowment with profit policies.
Pension schemes - are policies that provide benefits to the insured only upon retirement.
If the insured dies during the term of the policy, his nominee would receive the benefits
either as a lump sum or as a pension every month. Since a single policy cannot meet all
the insurance objectives, one should have a portfolio of policies covering all the needs
1
BACKGROUND OF THE STUDY
“Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against”. Usually the insurance contract provides for the
payment of an amount on the date of maturity or at specified dates at periodic intervals or
at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this
benefit. Among other things the contracts also provides for the payment of premiums, by
the assured.
Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty
for uncertainty and ensure timely aid for the family in the unfortunate event of the death
of the breadwinner. In other words, it is the civilized world’s partial solution to the
problems caused by death. Life insurance helps in two ways dealing with premature
death, which leaves dependent families to fend for themselves and old age without visible
means of support.
The most common types of life insurance are whole life insurance and term life
insurance. Whole life insurance provides a lifetime of protection as long as you pay the
premiums to keep the policy active. They also accrue a cash value and thus offer a
savings component. Term life insurance provides protection only during the term of the
policy and the policies are usually renewable at the end of the term
1
There are many Life Insurance Companies like
1
1
INDUSTRY PROFILE
Life Insurance, in its present form, came to India from the United Kingdom with
establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,
followed by Bombay Life Assurance Company in 1823, the Madras Equitable Life
Insurance society in 1829 and Oriental Government security Assurance Company in
1874. Prior to 1871, Indian Lives were treated as sub-standard and charged an extra
premium of 15% to 20%. Bombay Mutual Life Assurance Society, a Indian insurer which
came into existence in 1871 was the first to cover Indian lives at normal rates.
The Indian life Assurance Companies Act, 1912 was the first statutory measure to
regulate life insurance business. Later, in 1928, the Indian Insurance Companies Act was
enacted, to enable the government to collect statistical information about both life and
non-life insurance business transacted in India by Indian and foreign insurers, including
the provident insurance societies. Comprehensive arrangements were, however, brought
into effect with the enactment of the Insurance Act, 1938.
By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies were
carrying online insurance business in India. On 19th January 1956, the management of the
entire life insurance business of 229 Indian insurers and provident insurance societies and
the Indian life insurance business of 16 non-Indian Life insurance companies then
operating in India, was taken over by the central Government and then nationalized on 1st
September 1956 when the Life Insurance Corporation came into existence.
With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services,
it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investments are 8 per cent of GDP.
1
Yet, nearly 80 per cent 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 subject to weak social security and pension
systems with hardly any old age income security. This itself is an indicator that growth
potential for the insurance sector is immense.
1
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA)
The Malhotra Committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body- The Insurance Regulatory and Development Authority.
Based on the Malhotra committee report in April 2000 IRDA was incorporated. Since
being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. Section 14 of the IRDA Act 1999, lays the duties, power
and functions of the authority .the authority shall have the duty to regulate, promote and
ensure orderly growth of the insurance business and reinsurance business.
1
Indian Partners International Partners
Bombay Dyeing General Accident, UK
Tata American Int. Group, US
Dabur Group Liberty Mutual Fund, US
ICICI Prudential, UK
Sundaram Finance Winterthur Insurance, Switzerland
Hindustan Times Commercial Union, UK
Ranbaxy Cigna, US
HDFC Standard Life, UK
CK Birla Group Zurich Insurance, Switzerland
DCM Shriram Royal Sun Alliance, UK
Godrej J Rothschild , UK
M A Chidambaram Met Life
Cholamandalam Guardian Royal Exchange, UK
SK Modi Group Legal and General, Australia
20th Century Finance Canada Life
Alpic Finance Allianz Holding, Germany
Kotak Mahindra Chubb, US
The likely impact of opening up of India’s insurance sector is that private players
may swamp the market. International insurers often derive a significant part of
their business from multinational operations. Multinational insurers are indeed
keenly interested as; perhaps there home markets are saturated while emerging
countries have low insurance penetration and high growth rates
1
Types of life insurance policies
1
There are a number of policies for specific insurance needs. Some of these include:
2. Family insurance.
A whole life policy that insures all the members of an immediate family --
husband, wife and children. Usually the coverage is sold in units per person, with
the primary wage-earner insured for the greatest amount.
4. Juvenile insurance.
This is life insurance on a child. Coverage is paid for by an adult, usually the
parents or guardians. Such policies are not considered traditional life insurance
because the child is not producing an income that needs to be protected. However,
by buying the policy when the child is young, the parents are able to lock in an
extremely low premium rate and allow many more years of tax-deferred cash
value buildup
.
1
5. Credit life insurance.
This insurance is designed to pay off the balance of a loan if you die before you
have repaid it. Credit life insurance is available for many kinds of loans including
student loans, auto loans, farm equipment loans, furniture and other personal
loans including credit cards. Credit life insurance can be purchased by an
individual. Usually it is sold by financial institutions making loans, like banks, to
borrowers at the time they take out the loan. If a borrower dies, the proceeds of
the policy repay the loan directly to the lender or creditor.
6. Mortgage insurance
This decreasing term coverage is designed to pay off the unpaid balance of a
mortgage if you die before the mortgage is paid off. Premiums are generally level
throughout the term of the policy. The policy is usually independent of the
mortgage, meaning that the financial institution granting the mortgage is separate
from the insurance company issuing the policy. The proceeds of the policy are
paid to the beneficiaries of the policy, not the mortgage company. The beneficiary
is not required to use the proceeds to pay off the mortgage
7. Annuity
An annuity is a form of insurance that enables you to save for your retirement.
Basically, you give the insurance company money for a certain period of time,
and then after you retire they will pay you a certain amount of money every year
until you die. There are many different forms of annuities. . Most people who buy
annuities are 55 or older.
1
PROFILE OF THE ORGANISATIONS:
Life Insurance Corporation of India was formed in September 1956 by passing LIC
Act, 1956 in Indian parliament. On the nationalization of the life insurance in 1956,
the premium rating of Oriental Government security life Assurance company were
adopted by LIC with a reduction of 5% of the tabular premium or Re. 1 per
thousand sum assured, whichever was less. This reduction was made in
anticipation of economies of scale that would emerge on the merger of different
insurers in a single entity.
Life Insurance Corporation Of India - there are many things to consider as Life
Insurance Corporation of India offers various insurance products which are very
complex, but underlying this complexity is a simple fact. The building blocks for
all Life Insurance Corporation of India are (1) investment return; (2) mortality
experience; and (3) expense management; for your Life Insurance Corporation Of
India
1
Objectives of LIC
Spread Life Insurance much more widely and in particular to the rural areas and
to the socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective capacities.
Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation,
pride and job satisfaction through discharge of their duties with dedication towards
achievement of Corporate Objective
1
VISION
"A trans-nationally competitive financial conglomerate of significance to societies and
Pride 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”
1
4) Plan for needs of Children
Komal Jeevan
Jeevan Sukanya
Jeevan Kishore
Jeevan Balya
Jeevan Chaya
Marriage/educational annuity
Deffered Endowment
1
10) Investment plan
Bima Nivesh Triple cover
11) Capital market linked plan
Bima plus.
Term Assurance
Under the term assurance the risk cover is generally for specific short term. Such term
assurance is maximum for 2 years. Generally this type of assurance is useful for air
traveling.
1
Money Back Plans
Under this plan specific percentage of sum assured will be backed to the life assured
after specific period of time. This plan is of special interest to person who besides
desiring to provide for their own old age and family feels the need for lump sum
benefits at periodical intervals. Under these policies part of the sum assured is paid to
the life assured in installments at selected intervals.
Children Plan
Under the children plans the risk on the life of the children where covered generally
this type of plans are helpful in education and marriage of the children.
Jeevan Balya:
This plan is designed to enable a parent to provide for the child by payment of a very
low premium an Endowment Assurance Policy, the risk under which will commence
from the vesting date. In addition, Premium benefit and income benefit are included
as additional benefit by payment of appropriate additional premium during the
deferment period.
This policy shall be cancelled in case the life assured shall die before the deferred
dates and in such an event provided the policy is then in full force in for a reduced
cash option.
Marriage Endowment/ educational annual plan
Every father desires to see that his children are well settled in life through sound
education, leading to good jobs and happy marriage. These needs arise at ages which
can be approximately anticipated. Say when the children are between 18 to 25 year of
age. This plan provides for a sum assured to keep aside to meet marriage educational
expenses of children. Under this plan the S A along with the vested bonus shall be
payable at the end of the selected term either is lump sum or in ten half yearly
installment, at the option of the life assured nominee beneficiary.
Jeevan Mitra
This plan provides additional insurance cover equal to the sum assured in the even of
death during the term of policy so that the total insurance cover in the event of death
is twice the basic sum assured. i.e. The basic sum assured is doubled and the accrued
bonus is also paid.
1
TATA-AIG Life Insurance
Tata-AIG Life Insurance Company is a joint venture between the Tata Group
and American International Group Inc (AIG), the leading US-based international
insurance and financial services organization and the largest underwriter of
commercial and industrial insurance in America. Its member companies write a wide
range of commercial, personal and life insurance products through a variety of
distribution channels in approximately 130 countries and jurisdictions throughout the
world. AIG’s global businesses also include financial services and asset management,
including aircraft leasing, financial products, trading and market making, consumer
finance, institutional, retail and direct investment fund asset management, real estate
investment management, and retirement savings products. TATA holds 76% shares
and AIG holds 24% shares in the total share capital of TATA AIG.
Tata AIG Life Insurance Company Ltd. "Tata AIG Life" offers a broad array of
life insurance products to individuals, associations and businesses of all sizes, with a
wide variety of additional coverage to ensure our customers can find an insurance
product to meet their needs. Tata-AIG Life Insurance and Tata-AIG General Insurance,
both joint ventures between the Tata Group and American International Group (AIG),
provide life and general insurance policies and solutions to companies, institutions and
organizations across India. It is licensed to operation on 12th February 2001. TATA-AIG
life is spread over28 branch offices and 39 training offices across the country.
Tata-AIG Life offers a broad array of life insurance products and solutions to
corporate and other organizations. These products and solutions have various value-
added benefits and options that deliver flexibility and choice to the company's clients.
Tata AIG Life has completed its 4th year of operations and registered a Total Premium of
Rs. 497 Crores for the period April 2004 - March 2005.
1
The company has some 20 life insurance products with over 250 product combinations,
including endowment to term, pension to group life and credit life, money back to whole
life plans, etc. Tata-AIG Life uses different distribution channels, including direct
marketing, brokerage and banc assurance, to service client groups in 19 Indian cities.
Tata-AIG Life is the first private insurer in India to offer group retirement
schemes. Additionally, the company's group management division focuses on providing
employee benefit solutions.
PRODUCTS
➢ Maha life
➢ Invest Assure
➢ Health Protector
➢ Star Kid
➢ Shubh Life
➢ Nirvana
➢ Nirvana Plus
➢ Money Saver Plan
➢ Health First
➢ Assure Golden Life
➢ Assure 10, 20, 30 years – Security and Growth
➢ Assure Educate at 18, 21
➢ Assure Career Builder Plan at 27
➢ Assure Golden Years Plan
➢ Assure 21 Money Saver Plan
➢ Assure 1/5/10/15/20/25 years/ to age lifelines
➢ TROP
1
HDFC STANDARD LIFE INSURANCE
HDFC and Standard Life first came together for a possible joint venture, to enter the Life
Insurance market, in January 1995. It was clear from the outset that both companies
shared similar values and beliefs and a strong relationship quickly formed. In October
1995 the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the
relationship.
The next three years were filled with uncertainty, due to changes in government and
ongoing delays in getting the IRDA (Insurance Regulatory and Development authority)
Act passed in parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional resource made
available. Around this time Standard Life purchased 2% of Infrastructure Development
Finance Company Ltd. (IDFC). Standard Life also started to use the services of the
HDFC Treasury department to advise them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level. Therefore,
in January 2000 an expert team from the UK joined a hand picked team from HDFC to
form the core project team, based in Mumbai.
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
1
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. Companies ambition from as far 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.
Products offered by the company are:
INDIVIDUAL PLAN
With Profit Endowment Assurance
With Profits Money Back
Single Premium Whole of Life
Term assurance Plan
Loan Cover Term Assurance
Personal Pension Plan
Children’s Plan
GROUP PLANS
Group Term Insurance
Development Insurance Plan
1
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
a premier financial powerhouse, and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the quarter ended June 30,
2005 , the company garnered Rs 335 crore of new business premium for a total sum
assured of Rs 2,619 crore and wrote 111,522 policies. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a
wide range of flexible products that meet the needs of the Indian customer at every step
in life.
1. Savings Plan
1) Smart kid
2) Life Time
4) Cash Bak
2. Protection plan
Life Guard
1
Extra Protection Through
Riders
3. Retirement Plans
Forever Life
Reassure
4. Investment Plans
Assure Invest
Life Link
5. Group plans
Group Superannuation
Group Gratuity
1
KOTAK LIFE INSURANCE COMPANY
Old Mutual plc is an international financial services group based in London with
expanding operations in life assurance, asset management, banking and general
insurance. Old Mutual is listed on the London Stock Exchange (where it is included on
the FTSE 100 Index) and also on the South African, Namibian, Malawi and Zimbabwe
stock exchanges. It has 156 years of experience in the life insurance business. The
Products offered by the Company are
Individual Plan
Riders
1
Group Plan
Riders
Rural
1
PNB MET LIFE INSURANCE COMPANY
PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life insurance
companies in India present since 2001. PNB MetLife has as its shareholders MetLife International
Holdings LLC (MIHL), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited
(JKB), M. Pallonji and Company Private Limited and other private investors, MIHL and PNB being
the majority shareholders. The company serves customers in over 7000 locations providing a range of
health, life and retirement insurance products.
History
PNB MetLife was initially launched as MetLife India Insurance Company Limited in 2001. In 2011,
PNB picked up a 30% stake in MetLife India Insurance. Both PNB and MetLife India approached the
Competition Commission of India (CCI) on 7 December 2012. In January 2013, PNB received full
approval for acquiring 30% stake in MetLife India Insurance. This new private sector life insurer was
re-branded as PNB MetLife India Ltd.
PNB MetLife is now present in over 150 locations across the country and serves customers in more
than 7,000 locations through its bank partnerships with PNB, Jammu and Kashmir Bank Limited
(JKB) and Karnataka Bank Limited.
Key People
The key people of PNB MetLife India Insurance Company Limited as defined by Insurance Regulatory
and Development Authority of India (IRDA) are as follows:
Awards
2016: PNB MetLife won the ‘Website of the Year’ award at the E-Commerce Summit & Awards in
Mumbai.
2016: PNB MetLife won ‘Celent Model Insurer Asia’ award for the most responsive eCommerce
platform on a mobile.
2016: PNB MetLife won honors at the prestigious Asia Training & Development Excellence Awards
2016 held in Singapore in two categories – Best Education Training Campaigns and Programs and
Best Sales Development Program
1
BIRLA SUN LIFE INSURANCE COMANY LIMITED
Birla Sun Life Financial Services offers a range of financial services for resident Indians
and Non Resident Indians. Brought together by two large, powerful and reputed business
houses, the Aditya Birla Group and Sun Life Financial , it is our aim to offer diverse and
top quality financial services to customers. The Mutual Fund and Insurance companies
provide wealth management and protection products to customers while the Distribution
and Securities companies provide brokerage and trading services for investment in
equities, debt securities, fixed deposits, etc.
Insurance is not about something going wrong. It's often about things going right. One of
the wonders of human nature is that we never believe anything can actually go wrong.
Surely, life has its share of ifs. At Birla Sun Life however, they believe it has its equally
pleasant share of buts as well. Birla Sun Life stand committed to help you realize those
happy moments which make a life. Be it living the same lifestyle in your post retirement
days or providing a secure future for your loved ones, in case something happens to you.
The life insurance products offered by the company are
Individual life
Premium Back Term Plan
Flexi Secure Life Retirement Plan
Single Premium Bond
Birla Sun Life Term Plan
Flexi Life Line Whole Life Plan
Flexi Cash Flow Money back Plan
1
Group Life
Pro Group Term Insurance
Group Superannuation Plan
Group Gratuity Plan
1
MAX NEW YORK LIFE INSURANCE COMPANY LTD.
Max New York Life today emerged as the country's leading private life insurance
company having recorded a sum assured of over Rs 2100 crore for the year ending March
31, 2002. This was the first full year of operations for Max New York Life.
The company has sold over 64,000 policies in the last financial year. The total annualized
first year premium for the financial year was over Rs 43 crore with the First Year
Premium Income amounting to over Rs 38 crore. This has exceeded the expectations of
the company and the projections as submitted to IRDA. Over 70 per cent of the premia
income was from protection-oriented Whole Life Policies, which reinforces the
company's focus on providing the true value of life insurance to the customer
The company has 11 offices, over 1900 Agent Advisors and over 490 employees. Max
New York Life believes in delivering top value to all its stakeholders. As part of the best
practices adopted, the Company instituted satisfaction survey's conducted by independent
agencies to measure the satisfaction levels of its customers, agents and employees. Max
New York Life has clearly emerged as delivering top value across all these stakeholders
Max New York Life offers a suite of flexible products. It has eight base products and
nine options & riders that can be customized to over 250 combinations enabling
customers to choose the policy that best fits their need
1
The products are –
Whole Life Participating d Convertible
Whole Life-Non-Participating,
Children Endowment at age 18,
Children Endowment at age 24,
20-year Endowment Participating Policy,
Endowment to age 60,
Five-year Term Renewable an,
Easy Term
1
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
Bajaj Allianz life Insurance Company Limited is a joint venture between Bajaj
Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability
and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and
Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to
conduct General Insurance business (including Health Insurance business) in India. The
Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74%
and Allianz, AG, holds the remaining 26% Germany.
In its first year of operations, the company has acquired the No. 1 status among
the private non-life insurers. As on 31st March 2003, Bajaj Allianz General Insurance
maintained its leadership position by garnering a premium income of Rs.300 Crores.
Bajaj Allianz also became one of the few companies to make a profit in its first full year
of operations. Bajaj Allianz made a profit after tax of Rs.9.6 crores
Bajaj Allianz today has a network of 42 offices spread across the length and
breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the
offices are interconnected with the Head Office at Pune.
In the first half of the current financial year, 2004-05, Bajaj Allianz garnered a
premium income of Rs. 405 crores, achieving a growth of 84% and registered a 52%
growth in Net profits of Rs.20 Crores over the last year for the same period. In the
financial year 2003-04, the premium earned was Rs.480 Crores, which is a jump of 60%
and the profit zoomed by 125% to Rs. 21.6 Crores
1
OBJECTIVE OF THE STUDY
o Ascertain the profile and characteristics of potential buyers.
1
RESEARCH METHODOLOGY
A research design is a basic plan, which guides the researcher in the collection and
analysis of data required for practicing the research. Infect the research design is the
conceptual structure where the research is conducted. It constitutes the ‘Blue Print’ for
the collection, measurement and analysis of the data. The study is carried out to
understand the Consumer Perception about life insurance companies in Lucknow city
.For this study the researcher used exploratory research design. This research covers 50
consumers in Luknow city, belonging to various age groups.
SAMPLE DESIGN:
The process of drawing a sample from a large population is called sampling. Population
refers to the total of items about which information is defined. Well-selected samples
may reflect fairly and accurately the characteristics of the population.
Sampling Unit:
The sample unit of this survey was the customers having life insurance policies in
Lcknow city.
Sample Size:
The sample size was 50 customers of different life insurance companies, from the
various parts of the Lucknow city.
SOURCES OF DATA:
After identifying and defining the research problem and determining specific information
required to solve the problem the researcher will look for the type and sources of data
which may yield the desired results, while deciding about the method of data collection to
be used for the study, there are two types of data.
1
Primary Data:
Primary data are those, which are collected for the first time. Primary data is collected by
framing questionnaires. The questionnaire contained questions, which are both open-
ended and closed-ended. Open-ended questions are questions requiring answers in the
responder’s own words. Closed-ended questions are those wherein the respondent has to
merely check the appropriate answer from a list of options available. Any doubts raised
by the respondents were clarified to get the perfect answers from the distributors. Open-
ended questions yielded more insightful information, whereas closed-Ended questions
were relatively simple to tabulate and analyze.
Secondary Data:
Secondary data means data that are already available i.e. they refer to the data which have
been collected and analyzed by someone and can save both money and time of the
researcher. Secondary data may be available in the form of company records, trade
publications, libraries etc. Secondary data sources are as follows:
Company
Reports Daily
Newspaper
Standard
Textbook Various
Websites
1
LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful planning there
are several limitations, which handicapped the research viz.
Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances that
some information might have been left out, however due care is taken to include all the
relevant information needed.
Sample size:
Due to time constraints the sample size was relatively small and would definitely have
been more representative if I had collected information from more respondents
.
Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents
tend to give misleading information.
1
ANALYSIS AND INTERPRETATION
1
4.1 INTRODUCTION TO ANALYSIS:
In order to extract meaningful information from the data them. The analysis can be
conducted by using simple statistical tools like percentages, averages and measures
of dispersion. Alternatively the collected data may be analyzed, the data analysis is
carried out. The data are first edited, coded and tabulated for analyzing by using
diagrams, graphs, charts, pictures etc. Data analysis is the process of planning the
data in an ordered form, combining them with the existing information and
extracting from them.
Interpretation is the process of drawing conclusions from the gathered data in the
study. In this research the researcher has analyzed the data using percentages and
graphs.
In this research the data analysis tools used are percentages and graphs. The
various attributes were analyzed separately and the importance to each was
calculated on the basis of the percentage. The rank having the maximum
percentage was taken to be preferred importance to the particular attribute.
After looking at each attribute separately, all the attributes were considered
together to develop a map on the most preferred rank for all the attributes.
1
TABLE 1
AGE OF RESPONDENTS
1. 19 – 28 24 48 %
2. 29 – 38 13 26 %
3. 39 – 48 6 12 %
4. 49 – 58 6 12 %
5. 59 – 68 0 0%
6. 69 – 78 1 2%
TOTAL 50 100 %
INFERENCE: The above table classified the respondents according to their age group.
The majority of the respondents belong to the age group 19 to 28 years with 48% and the
1
GRAPH 1
AGE OF RESPONDENTS
60%
50% 48%
40%
30% 26%
20%
12% 12%
10%
2%
0%
0%
19 - 28 29 - 38 39 - 48 49 - 58 59 - 68 69 - 78
YRS YRS YRS YRS YRS YRS
1
TABLE 2
FEMALE 16 32%
RESPONDENTS
TOTAL 50 100 %
INFERENCE: This table helps us to understand that there are more number of
male consumers with 68% market share than the female consumers with 32%
Market share.
1
GRAPH 2
80%
70% 68%
60%
50%
40%
32%
30%
20%
10%
0%
1
TABLE 3
1. STUDENTS 2 4%
2. GOVERNMENT 20 40 %
EMPLOYEES
3. PRIVATE 24 48 %
EMPLOYEES
4. HOUSE WIVES 2 4%
5. RETIRED 2 4%
PERSONS
TOTAL 50 100 %
are private employees with 48% and Government employees with 40%, followed by
1
GRAPH 3
60%
50%
40%
30%
20%
10%
0%
1
TABLE 4
1. LESS THAN 5 10 %
5000
2. 5001 – 10,000 16 32 %
3. 10001 – 15000 17 34 %
4. 15001 – 20000 8 16 %
5. 20001 – 25000 2 4%
6. GREATER 1 2%
THAN 30000
7. NIL 1 2%
TOTAL 50 100 %
INFERENCE: The majority of dominant income group having life insurance policies
belong to the income group of 10,001 to 15,000, which is middle class group. Followed
1
GRAPH 4
40%
35%
30%
25%
20%
15%
10%
5%
0%
<5000 5001 - 10001 - 15001 - 20001 - >25000 NIL
1000 15000 20000 25000
1
TABLE 5
OWNED
1. HOUSE 19 38 %
2. TWO 25 50 %
WHEELER
3. CAR 6 12 %
TOTAL 50 100 %
INFERENCE: This table helps us to know that most of consumers with life insurance
policies own two wheelers with 50%, 38% of consumers own house and12% of the
1
GRAPH 5
60%
50%
50%
40% 38%
30%
20%
12%
10%
0%
HOUSE TWO CAR
WHEELER
1
TABLE 6
LIC 39 78 %
TATA AIG 1 2%
HDFC 3 6%
ICICI 4 8%
MAX LIFE 1 2%
INSURANCE
KOTAK MAHINDRA 1 2%
ALLIANCE BAJAJ 1 2%
INFERENCE: This table helps us to understand the market share of different life
insurance companies. LIC has a major share of 78 %, followed by ICICI Prudential with
1
GRAPH 6
90%
78%
80%
70%
60%
50%
40%
30%
20%
6% 8%
10%
2% 2% 2% 2%
0%
1
TABLE
CHART
16
14
12
10
8
6
4
2
0
Term Plans Life Plans Sr. Ctzn Income Child Plans
Plans Plans
INFERENCE: It has been found that majority of respondents are using Income insurance & Money
1
TABLE 7
1. RETURN ON 17 1
INVESTMENT
2. COMPANY 13 2
REPUTATION
3. PREMIUM 10 3
OUTFLOW
4. SERVICE 7 4
QUALITY
5. UNIQUENESS 3 5
INFERENCE: This table shows the strengths and weaknesses of the company, and what
are the important criteria or attributes on which decision making is done. From this table
we can infer that consumers give more importance for Return on investment, secondly
they prefer company reputation, and then premium outflow followed by service quality
and uniqueness.
1
GRAPH 7
18 17
16
14 13
12
10
10
1
TABLE 8
1. PERSONAL INTEREST 25 1
2. FAMILY 11 2
3. FRIENDS 6 3
4. AGENTS 5 4
5. ADVERTISEMENT 2 5
6. OTHERS 1 6
INFERENCE: This table is helpful in knowing which media is best suitable for
promoting a life insurance company. It can be seen that personal factor influences a
consumers to select a life insurance company, followed by family, friends , agents and
advertisements.
1
GRAPH 8
30
25
25
20
15
11
10
1
TABLE 9
1. < 10000 0 0%
2. 10000 – 25000 5 10 %
3. 25000 – 50000 8 16 %
4. 50000-100000 15 30 %
5. > 100000 22 44 %
INFERENCE: It can be inferred that majority of consumers buy the life insurance policy
which costs more than Rs. 1,00,000 followed by Rs. 50,000 to Rs.1,00,000, followed by
1
GRAPH 9
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
> 10000 10000 - 25000 - 50000 - > 100000
25000 50000 100000
1
TABLE 10
NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
INSURANCE 24 48 %
COMPANY
BANK 26 52 %
TOTAL 50 100 %
INFERENCE: From the table it is clear that majority of people (52%) prefer to invest in
1
GRAPH 10
53%
52%
52%
51%
50%
49%
48%
48%
47%
46%
INSURACE BANK
COMPANY
1
TABLE 11
YES 47 94 %
NO 3 6%
TOTAL 50 100 %
INFERENCE: From this table it could be inferred that 94% of the consumers are
satisfied with the service and quality of products of their life insurance companies. Only
1
GRAPH 11
100% 94%
90%
80%
70%
60%
50%
40%
30%
20%
10% 6%
0%
YES NO
1
TABLE 12
EXCELLENT 7 14 %
VERY GOOD 12 24 %
GOOD 20 40 %
AVERAGE 11 22 %
POOR 0 0%
TOTAL 50 100 %
INFERENCE: From this table it could be inferred that 40% of the consumers have rated
service offered as good, 24% of them have rated them as very good, 22% of them have
1
GRAPH 12
45%
40%
40%
35%
30%
24% 22%
25%
20%
14%
15%
10%
5%
0%
0%
1
TABLE 13
YES 39 78 %
NO 11 22 %
TOTAL 50 100 %
INFERENCE: From this table it can be noted that the majority of consumers (78%)
would like to communicate to others about the service offered by life insurance
companies and 22% of consumers would not like to communicate the service offered.
1
GRAPH 13
90%
78%
80%
70%
60%
50%
40%
30% 22%
20%
10%
0%
YES NO
1
TABLE 14
<5 18 36 %
5–7 29 58 %
8 – 10 2 4%
>10 1 2%
TOTAL 50 100 %
INFERENCE: This table helps us to know the consumer awareness about the life
insurance companies. 58% of the consumers are aware about 5 to 7 life insurance
companies, followed by 36% consumers who know less than 5 life insurance companies.
1
GRAPH 14
70%
60% 58%
50%
40% 36%
30%
20%
10%
4%
2%
0%
<5 5 TO 7 8 to 10 > 10
1
TABLE 15
COMPANIES RANK
LIC 1
ICICI PRUDENTIAL 2
HDFC 3
TATA AIG 4
SBI Life 5
BIRLA SUNLIFE 6
OTHERS 8
INFERENCE: From the table we can rank the life insurance companies, LIC stands
first, followed by ICICI Prudential followed by HDFC Standard life, followed by TATA
AIG.
1
GRAPH 15
1
FINDINGS, CONCLUSION AND
SUGGESTIONS
1
FINDINGS
➢ The male consumers capture the Market share with 68%, followed by
➢ The dominant income group having life insurance group belong to the
advertisements.
1
➢ The value of respondents life insurance policy costs more than
companies.
Standard Life.
1
RECOMMENDATIONS AND SUGGESTIONS
the consumers characteristics. Hence Insurance companies should try to bring their new
a) Due to the intense competition in the life insurance market, the life insurance
b) Keeping the cost, quality and return on investment in tact is necessary in order to
c) Life insurance products are taken mainly by middle and higher income group.
Hence they should be regarded as maim targeted income groups. Life insurance
products which are suitable for lower income group should also be released so
preferred attributes that are expected by the respondents. Hence greater focus
1
e) Private life insurance companies should adopt effective promotional strategies to
f) Life insurance companies should ask for their consumer feedback to know
whether the consumers are really satisfied or dissatisfied with the service and
product of the companies. If they are dissatisfied , then the reasons for
g) The LIC brand name has earned a lot of goodwill and enjoys a high brand equity.
As there is intense competition in life insurance market, LIC should work hard to
maintain its top position and offer better service and product.
1
CONCLUSION
An Insurance policy is an investment oriented plan. As compared to other investment
plans, the investment portfolio of the Insurance Policy functions like a mutual fund and
conformity with the announced investment policy. Hence it grows or erodes in line with
From this study it reveals that the consumer’s attitude towards Insurance Policy and
Insurance Company changed a lot. A 5 years before the consumers and the general public
were not interested to take an Insurance Policy but now days there are many options and
choices in front of the customers. They are interested to take high return policies in order
to secure their lives. People are aware of all the benefits and returns of insurance policies.
As a result of this new international and domestic companies are coming to the Indian
Market.
Since there are many players in the Indian Insurance Market the competition level is very
high. So the companies are introducing new schemes. From this it is found that The LIC
is the major market share holder in the insurance field. Even if there are many players in
this field still it is an untapped market. Only a few portion of Indian population is insured.
1
BIBLIOGRAPHY
1) Dr. Singh, Avtar, Principles of Insurance Law, S Chand & Sons, Delhi,2003.
Publishers, Delhi,2004
Edition.
tropical sericulture,
Newspapers:
Economic Times
Business Line
World Wide Web:
www.lic.com
www.irda.org
www.wikipedia.com
1
ANNEXURE
1
QUESTIONNAIRE
A STUDY CONDUCTED TO UNDERSTAND THE CONSUMER’S
PERCEPTION ABOUT LIFE INSURANCE POLICIES
1. Name :
2. Age:
3. Address:
3 a. Phone number:
4. Occupation:
5. Monthly income:
Nil
6. Do You Own
Yes No
1
8. What factors do you consider while selecting a life insurance company?
12. Are you satisfied with your current Life Insurance Company?
Yes No
If Yes Why?
If No Why?
13. How do you rate the service offered by your Life Insurance Company?
1
14. Would you like to communicate the service offered by your Life Insurance
Company to others?
Yes No
LIC
HDFC
SBI life
PNB MET LIFE INDIA
INSURANCE BIRLA SUNLIFE
ICICI Prudential
TATA AIG
Max life insurance
17. Would You like to continue with the same Life Insurance Company?
Yes No
18. Any suggestions for improving the service offered by life insurance companies
Thank You.