Summer Internship Project

Investment Perception and Behaviour of Customers towards Insurance policies of

Shriram Life Insurance

Prepared by

Harshlata Madavi

Enrollment Number:

MBA Batch 2020-22

Under the guidance of

Santosh Pullewar

ACADEMIC YEAR

2021-22

Submitted To

Shree Chanakya Education Society’s

Indira Institute of Management, Pune

Affiliated To

An Autonomous Institute affiliated to

Savitribai Phule Pune University

1
Investment Perception and Behaviour of Customers towards Insurance
policies of Shriram Life Insurance

Prepared by

Harshlata Madavi

Enrollment no:

MBA Batch 2020-22

Under the guidance of

Santosh Pullewar

ACADEMIC YEAR 2020-22

Submitted To

Shree Chanakya Education Society’s

Indira institute of management, Pune

Affiliated To

An Autonomous Institute Affiliated to

Savitribai Phule Pune University

2
Certificate of completion

3
 Student’s Declaration

I undersigned Harshlata Raju Madavi student of Indira Institute of Management, Pune MBA
3rd semester, declare that summer internship project titled “Investment perception and
Behaviour of Customers towards Insurance policies of Shriram Life Insurance” is a result
of my/our own work and my/our indebtedness to other work publications, references, if any,
have been duly acknowledged. If I/we are found guilty of copying any other report or published
information and showing as my/our original work, I understand that I/we shall be liable and
punishable by Institute or University, which may include ‘Fail’ in examination, ‘Repeat study
& re- submission of the report’ or any other punishment that Institute or University may decide.

Name of Student: Harshlata Raju Madavi

Enrollment Number: Marketing

Signature:

4
 Acknowledgement

The project titled “Investment perception and Behaviour of Customers towards Insurance policies of
Shriram Life Insurance” which is part of the summer internship program of the MBA course has been
successfully completed. I take this opportunity to thank all the people involved directly or indirectly in making
this project a success.

Firstly, I would like to thank my external project guide Ms Pranita Bhavar for giving me an opportunity to
showcase my skills and talent by contributing in favor of the organization. I would also like to thank him for
providing all the necessary facilities and support within the organization during the internship tenure.

I would like to thank my internal project guide Prof. Girish Kulkarni of IIMP for his timely & valuable
guidance throughout the project. I am very thankful to the Director Dr. Pandit Mali who has been guiding
lighthouse for me. I am also thankful to Dr. Pallavi Sajanapwar, Dy. Director, Indira Institute of Management
Pune for approving my Project. Their constant motivation accelerated my performance and helped me produce
great results.

I would like to express my sincere gratitude towards all the components of Shriram life Insurance. which made
the internship journey an unforgettable one.

Ms Harshlata Madavi

Indira Institute of Management, Pune

MBA – Marketing

5
 Table of Content

Sr. No Contents Page No

Executive Summary 8
1. Introduction and Rationale of the study 10
1.1 Introduction to the title 10
1.2 Significance of the study 11
2. Industry/Sector Profile 12
2.1 Overview of the industry/sector 12
2.2 Contribution of sector towards GDP 13
2.3 Major Players 14
2.4 Regulatory framework 15
3 Company Overview 23
3.1 History 23
3.2 Mission and Vision Statement of Company 25
3.3 Registered Address 25
3.4 Composition of Board 26
3.5 Major Customers 26
3.6 Financial Performance 27
3.7 Achievements 27
3.8 Organogram 28
3.9 Functional Overview 29
3.10 Products 29
4 Review of literature (research project) 35
5 Application of management framework (management models as 37
applicable)
5.1 SWOT Analysis 37
5.2 PESTEL Analysis 38
5.3 Five PORTER Forces Model 39
6 Objectives and scope of project 40
6.1 Objectives of the Project 40
6.2 Scope of the Project 40
7 Research Methodology 41
6
 7.1 Rational for the study 41
7.2 Statement of problem 41
7.3 Significance of the Problem 41
7.4 Research Objectives 41
7.5 Scope of the study 42
7.6 Research design (Research Type) 42
7.7 Data sources (Primary and secondary sources) 42
7.8 Data Collection Instrument (for e.g. Questionnaire) 43
7.9 Sampling Design 43
7.10 Outline of Analysis 43
7.11 Limitations of the Project 43
8 Data Analysis 44
8.1 Data Analysis and Interpretation 44
9 Findings 53
10 Conclusions and Suggestions 54
11 Bibliography/References 55
12 Appendix 58

7
 Executive Summary

Title of the project and organization where project was undertaken

Investment perception and Behaviour of Customers towards Insurance policies of Shriram Life Insurance

Importance of the project

Purpose of this project was to find investment perception and behaviour of customers towards Shriram life
Insurance. With the help of this project company will find and understand their customers perception and their
investment behaviour towards insurance products. Ultimately, increase the company value and position in
market. The company will know customers better and what they look for. They can provide services and
products better. The growth of company and performance will increase. The company will gain more
prospects. This will be advantages for them as compare to their competitors.

Objectives

Primary objective
• To study various factors responsible for consumer behaviour and Investment towards life Insurance
Secondary objective
• To know the reach of various Insurance product of Shriram life insurance to people
• Lead generation and sell products of Shriram Life Insurance company

Methodology adopted

Research methodology helps to know the research methods use in the context of our research study and explain
why we are using a particular method or technique. Mix Research methodology used in this proposal at both
the qualitative and quantitative aspects. It focuses on the numerical data as well as the exploratory nature of
the mixed methodology. The qualitative data would help us in aspects such as individual behaviour, factors
etc. Whereas the quantitative aspects like age, prices, etc. with the numerical side of the research. The
methodology that is followed includes primary data collection. Primary data collection is including a simple
questionnaire. This questionnaire helps to reach various awareness products and services as a platform for
investment and customer preference regarding life insurance companies.

• Research Design: Descriptive research

• Sample size:155
• Research Approach: Both Qualitative and Quantitative research

8
 • Sampling Technique: Convenience Sampling (due to covid-19 restriction)

Learning from the project

• The Importance of insurance in Individual life

• Networking and communication skills are important.
• Analyse the data from google form in excel format and its interpretation.
• The pitching to customers about insurance products. Don’t get disheartened by negative response of
people. Have patience and

Utility to the organization

During my 2 months Summer Internship, I work on various aspects like, I have been given training program
in which mentor told the importance of insurance, History, types, advantages, company products and services
of company. The senior executive of company teach us demo of pitching products. Our seniors who got PPO
were also in one session they guided me. I was divided into various teams about progress of lead. I started
pitching the products as per training. I got some lead for the company.

I made google forms based on buying and investment behaviour of customers. Collected data of customers on
basis of google form. And according to their nature

Conclusion

As a finding we saw that Based on Findings some conclusion and suggestion can be drawn as there is
unawareness about life Insurance benefits and about Shriram life insurance, company must do public campaign
as personal interaction impacts more rather than any other platforms. Company should go for TV commercials
and advertisement as to attract huge audience. As people don’t know much about Shriram life insurance
product. The premium should be low so that customers are willing to buy from Shriram life insurance. An
returns should be high Company should focus on better after services to gain trust among people. People
preferences are changing regarding insurances nowadays, earlier Insurance was a means for wealth creation
and that too for a longer period as returns were comparatively low but as compared with the data in the current
past it can be said that people are shifting towards Insurance sector not only for tax saving but for future
planning, life covering risk against security, etc. But again when compared with other investment options
people still prefer stock markets, Bank Deposits, Equity & Mutual Funds because they provide a higher
percentage of return when compared with Insurance Sector.

9
 CHAPTER I

INTRODUCTION AND RATIONALE OF THE STUDY

1.1 Introduction to the title: Investment Perception and Behaviour of

Customers towards Insurance policies of Shriram Life Insurance

Key Objective behind this project was to find out Investment Perception and Behaviour of Customers towards
Insurance policies of Shriram Life Insurance. Insurance is a means of protection individual and families from
any financial loss. It is basically risk management from any adversities or uncertain loss. An entity which
provides insurance is known as an Insurer, an insurance company, an insurance carrier or an underwriter. A
person who buys insurance is known as an insured or as a policyholder. In this study shows what the various
factors are responsible for customer behaviour like premium, good will of company, returns. Also, we can
consider other factors like age, emotional stability etc are responsible for customer behaviour. Do people aware
of various insurance plans of Shriram life insurance plans.
People can consider insurance as a platform for investment. Other Investment platforms like share market,
mutual funds etc. do people prefer this over Insurance. This study shows how investment perception and
behaviour of customers towards insurance policy of Shriram life insurance. And how company should improve
their strategies based on the analysis of this factors and satisfy customer needs.
For better understanding of customers google form was circulated a analysis was done. Based on that analysis
company could modify according to the customers need. The company could adopt various strategies. This
will help grow their business at the faster rate.

10
1.2 Significance of the study

• Investment perception of people towards life Insurance of Shriram Life insurance. Which are the other
Investment platforms they prefer like Stock market, mutual funds etc. how their buying needs differ
towards life insurance policy. With the help of this company should adopt various changes to increase and
attract customers.
• Factors responsible for their perception like premium, good will of company, returns etc other factors like
Emotional stability, Income, occupation. People buying behaviour changes. By considering these factors
company should strategies according to customer behaviour.
• Awareness plays important role for new customers and engage for existing customers. Every consumer
buying behaviour responsible for companies’ success. People aware of Shriram life insurance policy.

11
 CHAPTER II:
INDUSTRY/ SECTOR PROFILE

2.1 Overview of the Industry/ sector

History of insurance

• Insurance history reflects Indian economy. During pre-liberalisation in India the company were
nationalised to protect policy holders. In 1956 and 1972 two state owned insurance company as the life
insurance cooperation and general insurance cooperation respectively.

• Industry opened up during post liberalization. IRDAI The Insurance Regulatory and Development
Authority of India in year 1999 to control insurance in india. Private players how interest it causes foreign
players collaborate with Indian enties. Due to increase in insurance companies, it creates affordability and
varieties for customers.

Insurance in India

Insurance in India refers to the market for insurance in India which covers both the public and private sector
organisations. It is listed in the Constitution of India in the Seventh Schedule as a Union List subject, meaning
it can only be legislated by the Central Government only.

What is Life Insurance?

A Life Insurance policy is a contract-drawn arrangement between the insurer and a beneficiary. The working
law behind such an arrangement is that the insurer promises to pay the beneficiary a specified sum of money
factoring in the:
• The date of maturity/completion of the policy.
• Any other pre-determined date at periodic intervals, if part of the agreement.
• The untimely death of the beneficiary, in which case the payment is made towards the nominees of the
policyholder by the insurer.
What is General Insurance?
The term ‘General’ offers many variants offering safeguards against wide-ranging issues. It can be used to
ensure the property against natural disasters such as floods, storms, earthquakes, landslides, etc.
Additionally, it also covers man-made disasters like riots, burglary, terrorism, etc. and extends the same
12
towards personal insurance that in turn covers, health, travel and accidents, and liability insurance. Some
examples of General Insurances in India are:
1. Health Insurance
Health insurance plans allow the policyholder to be treated for ailments (that are included in the policy)
without paying any cash. Customers could opt for individual health insurance plans, family health insurance
plans, and senior citizen health insurance plans.
2. Motor Insurance
Motor Insurance is designed to cover on-road and off-road damages to a vehicle. A user-centric motor
insurance policy often includes damages incurred from both natural and man-made disasters..
3. Travel Insurance
A travel insurance cover is targeted towards travelers who’d like to secure their belongings against
unexpected losses whether traveling internationally or domestically
4. Home Insurance
It is also referred to as homeowner’s insurance. A home insurance policy generally covers private property.
The home insurance coverage could include damages to property, appliances, furniture or any other contents
stored at home due to man-made or natural disasters.
Present scenario
There are currently 57 insurance companies in India, of which 46 are from the private sector. There are 24 life
insurance and 33 non-life insurance companies in India. The major names in the sector are:
Life insurance:
Life Insurance Corporation (LIC)
HDFC Standard Life
SBI Life Insurance
ICICI Prudential Life Insurance
Non-life insurance:
New India Assurance
United India Assurance
National Insurance Company
ICICI Lombard
Oriental Insurance Company
Bajaj Allianz

13
Market Size
In India, the overall market size of the insurance sector is expected to US$ 280 billion in 2020.
The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. India’s
insurance penetration was pegged at 3.76% in FY20, with life insurance penetration at 2.82% and non-life
insurance penetration at 0.94%. In terms of insurance density, India’s overall density stood at US$ 78 in FY20.
The market share of private sector companies in the general and health insurance market increased
from 47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a market share
of 33.78% in premium underwritten services in FY20.
In FY21 (until March 2021), premium from new business of life insurance companies in India stood at US$
31.9 billion.
In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21 (between April 2020
and March 2021), from US$ 26.49 billion in FY20 (between April 2019 and March 2020), driven by strong
growth from general insurance companies.
In March 2021, health insurance companies in the non-life insurance sector increased by 41%, driven by rising
demand for health insurance products amid COVID-19 surge.
According to S&P Global Market Intelligence data, India is the second-largest insurance technology market
in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurtech-focused venture investments made in
the country.
Investments and Recent Developments
The last few years have seen a lot of activity in the sector. This is a testament to the vibrancy of the industry
in India. Here are a few examples from different categories of deals/ developments:
Strategic deals: HDFC ERGO General Insurance Co. is in talks to acquire Apollo Munich Health Insurance
(Reported valuation: $ 370 mn)
Financial investors: A consortium of private equity firms- Westbridge Capital and Madison Capital, as well
as billionaire investor Rakesh Jhunjhunwala, are in discussions to acquire over 90% stake in Star Health and
Allied Insurance. (Estimated deal size: $ 1 bn)
Initiatives by non-sector players: Indian e-commerce giant Flipkart has tied up with Bajaj Allianz General
Insurance to provide customised insurance products for mobile phones sold on Flipkart.
New product offerings: HDFC ERGO launched a new product called E@Secure: a cyber insurance policy to
protect individuals and families from cyber-attacks.
Government Initiatives
The Government of India has taken number of initiatives to boost the insurance industry. Some of them are as
follows:

14
• Union Budget 2021 increased FDI limit in insurance from 49% to 74%. India's Insurance Regulatory and
Development Authority (IRDAI) has announced the issuance, through Digilocker, of digital insurance
policies by insurance firms.
• Under the Union Budget 2021, Finance Minister Nirmala Sitharaman announced that the initial public
offering (IPO) of LIC will be implemented in FY22, as part of the consolidation in the banking and
insurance sector.Though no formal market valuation has been undertaken, LIC’s IPO has the potential to
raise Rs. 1 lakh crore (US$ 13.62 billion).
• In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore (US$ 413.13 million) into
state-owned general insurance companies to improve the overall financial health of companies.
• Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has been allocated for crop
insurance scheme.

The Future Of Insurance Sector In India

Though LIC continues to dominate the Insurance sector in India, the introduction of the new private insurers
will see a vibrant expansion and growth of both life and non-life sectors in 2017. The demands for new
insurance policies with pocket-friendly premiums are sky high. Since the domestic economy cannot grow
drastically, the insurance sector in India is controlled for a strong growth. With the increase in income and
exponential growth of purchasing power as well as household savings, the insurance sector in India would
introduce emerging trends like product innovation, multi-distribution, better claims management and
regulatory trends in the Indian market.

The government also strives hard to provide insurance to individuals in a below poverty line by introducing
schemes like the

• Pradhan Mantri Suraksha Bima Yojana (PMSBY),

• Rashtriya Swasthya Bima Yojana (RSBY) and

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).

Introduction of these schemes would help the lower and lower-middle income categories to utilize the new
policies with lower premiums in India.

With several regulatory changes in the insurance sector in India, the future looks pretty awesome and promising
for the life insurance industry. This would further lead to a change in the way insurers take care of the business
and engage proactively with its genuine buyers. Some demographic factors like the growing insurance
awareness of the insurance, retirement planning, growing middle class and young insurable crowd will
substantially increase the growth of the Insurance sector in India.

15
2.2 Contribution of the sector towards GDP
Gross domestic product (GDP) is the total value of all final goods and services produced in the economy. The
GDP growth rate is the primary indicator of the state of the economy. In 2020 the insurance industry’s value-
added to GDP stood at 3.1 percent.
Insurance Sector's Share Of Gross Domestic Product (GDP), 2016-2020
($ billions)

Currently, the insurance penetration in India is 3.7 percent of the gross domestic product (GDP) as against the
world average which is 6.31 percent. The life insurance sector in India is growing at 11 percent to 12 percent.
General insurance is growing at 18 percent per annum. For standalone health insurance, the average growth
rate is 35 percent per annum. By cutting taxes in the Budget, the government can put more money in the hands
of the middle class and workers. This will benefit the insurance sector as well, though indirectly with hope of
greater penetration. The insurance sector experts are of the view that a rise in government spending in the
healthcare sector can help huge protection gap to come down and make insurance affordable.

2.3 Major players

There are 24 insurance company regulates by IRDAI. With growing competition major competitors of Shriram
life insurance are LIC, HDFC life, Max life, ICICI prudential, Bharti Bajaj, Kotak Life insurance SBI life
insurance etc and many more. Some of them are:

16
 • LIC

LIC is an Indian statutory insurance and investment corporation. It is under the ownership of Ministry of
Finance , Government of India .The Life insurance Corporation of India was established on 1 September 1956,
when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry
in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life
Insurance Corporation of India. As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3
trillion. The total value of sold policies in the year 2018–19 is ₹21.4 million. Life Insurance Corporation of
India settled 26 million claims in 2018–19. It has 290 million policy holders.

• HDFC Life Insurance Company Ltd.

HDFC Life Insurance Company Ltd. (d/b/a HDFC Life)[4] is a long-term life insurance provider with its
headquarters in Mumbai, offering individual and group insurance services and incorporated on 14 August
2000. The company is a joint venture between Housing Development Finance Corporation Ltd (HDFC), one
of India's leading housing finance institutions and Abrdn, a global investment company.[5] As on 31 March
2020, the promoters; HDFC Ltd. and Standard Life (Mauritius Holdings) 2006 Ltd. hold a 51.69% and 34.75%
stake in HDFC Life respectively.[5] The remaining equity is held by public shareholders.

17
 • Max Life Insurance Company Limited

Max Life Insurance Company Limited (formerly known as Max New York Life Insurance Company
Limited) is a life insurance company in India with a joint venture (JV) between Max India Ltd and Axis Bank
The company is a subsidiary of the publicly listed Max Financial Services and is the largest non-bank private-
sector life insurer in India. It was founded in 2000 after the liberalization of the insurance sector in India and
its operations began in 2001. Analjit Singh, founder of Max Healthcare, is the chairman of Max Life
Insurance.[1] The company is headquartered at New Delhi.

• ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited is a life insurance company in India. Established as
a joint venture between ICICI Bank and Prudential Corporation Holdings Limited, ICICI Prudential Life is
engaged in life insurance and asset management business. In 2016, the firm became the first insurance
company in India to be listed in the domestic stock exchanges.

18
 • Bharti AXA General Insurance and Life Insurance

Bharti AXA General Insurance Company Limited is a joint venture between Bharti Enterprises and AXA. The
joint venture company has a 51% stake from Bharti Enterprises and 49% stake of the AXA Group. They have
PAN India presence through 135 branches and offer insurance solutions for motor and two-wheeler, health
and critical illness, property and student, individual and family travel and crop insurance.

Bharti AXA General Insurance launched its new app ‘Krishi Sakha’ to cater to the specific needs of the farmers
in the country and guide them in adopting best farming practices and enhancing productivity.

• Bajaj Allianz Life Insurance

Bajaj Allianz Life Insurance is a joint venture between Bajaj Finserv Limited (formerly part of Bajaj
Auto Limited) owned by the Bajaj Group of India and Allianz SE, a European financial services company.
Being one of the private insurance companies in India, it offers insurance products for financial planning and
security. It is led by Tarun Chugh who is the Managing director and Chief Executive Officer of the company.

19
 • Kotak Mahindra Life Insurance Company Limited

Kotak Mahindra Life Insurance Company Limited is a private life insurance company in India. The
company was founded in 2001. It caters to 15 million customers and has 232 branches in around 167 cities
and towns in India with 99,275 agents.

Under the umbrella, the company offers various protection plans, savings and investment plans, child plans
and retirement plans.

• SBI Life Insurance

SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the
largest state-owned banking and financial services company in India, and BNP Paribas Cardif. BNP
Paribas is a French multinational bank and financial services company with global headquarters in Paris. SBI
has a 55.50% stake in the company and BNP Paribas Cardif owns a 22% stake. Other investors are Value Line
Pte. Ltd. and MacRitchie Investments Pte. Ltd., holding a 1.95% stake each while the remaining 12% is free
float stake with public investors. SBI Life Insurance has an authorized capital of ₹20 billion (US$280 million)
and a paid up capital of ₹10 billion (US$140 million). In 2007, CRISIL Limited, a subsidiary of global rating
agency Standard & Poor's, gave the company a AAA/Stable/P1+ rating.

20
2.4 Regulatory framework
IRDAI
1 Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under
an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for
overall supervision and development of the Insurance sector in India.
2. The powers and functions of the Authority are laid down in the IRDAI Act, 1999 and Insurance Act, 1938.
The key objectives of the IRDAI include promotion of competition so as to enhance customer satisfaction
through increased consumer choice and fair premiums, while ensuring the financial security of the Insurance
market.
3. The Insurance Act, 1938 is the principal Act governing the Insurance sector in India. It provides the powers
to IRDAI to frame regulations which lay down the regulatory framework for supervision of the entities
operating in the sector. Further, there are certain other Acts which govern specific lines of Insurance business
and functions such as Marine Insurance Act, 1963 and Public Liability Insurance Act, 1991.
4. IRDAI adopted a Mission for itself which is as follows:
• To protect the interest of and secure fair treatment to policyholders;
• To bring about speedy and orderly growth of the Insurance industry (including annuity and
superannuation payments), for the benefit of the common man, and to provide long term funds for
accelerating growth of the economy;
• To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and
competence of those it regulates;
• To ensure speedy settlement of genuine claims, to prevent Insurance frauds and other malpractices
and put in place effective grievance redressal machinery;
• To promote fairness, transparency and orderly conduct in financial markets dealing with Insurance
and build a reliable management information system to enforce high standards of financial soundness
amongst market players;
5. Entities regulated by IRDAI:
a. Life Insurance Companies - Both public and private sector Companies
b. General Insurance Companies - Both public and private sector Companies. Among them, there are some
standalone Health Insurance Companies which offer health Insurance policies.
c. Re-Insurance Companies
d. Agency Channel
e. Intermediaries which include the following:
• Corporate Agents

21
 • Brokers
• Third Party Administrators
• Surveyors and Loss Assessors.
6. Regulation making process:
• Section 26 (1) of IRDAI Act, 1999 and 114A of Insurance Act, 1938 vests power in the Authority to
frame regulations, by notification.
• Section 25 of IRDAI Act, 1999 lays down for establishment of Insurance Advisory Committee
consisting of not more than twenty five members excluding the ex-officio members. The Chairperson
and the members of the Authority shall be the ex-officio members of the Insurance Advisory
Committee.
• The objects of the Insurance Advisory Committee shall be to advise the Authority on matters relating
to making of regulations under Section 26.
• Accordingly the draft regulations are first placed in the meeting of Insurance Advisory Committee
and after obtaining the comments/recommendations of IAC, the draft regulations are placed before
the Authority for its approval.
• Every Regulation approved by the Authority is notified in the Gazette of India.
• Every Regulation so made is submitted to the Ministry for placing the same before the Parliament.
7. The Authority has issued regulations and circulars on various aspects of operations of the Insurance
companies and other entities covering:
• Protection of policyholders’ interest
• Procedures for registration of insurers or licensing of intermediaries, agents, surveyors and Third
Party Administrators;
• Fit and proper assessment of the promoters and the management
• Clearance /filing of products before being introduced in the market
• Preparation of accounts and submission of accounts returns to the Authority.

22
 CHAPTER III:
Company Overview

3.1 INTRODUCTION
Shriram Life Insurance Company, also known as (SLIC) was founded in the year 2005 and commenced
operations in the year 2006. SLIC is well known for their efficient use of capital and low operational costs.
Shriram Life Insurance Company is a joint venture between Shriram Group founded in 1974, headquartered
in Chennai and Sanlam, a leading financial services group based in Cape Town, South Africa. Together,
Sanlam and Shriram‘s group aims to provide the best life insurance products to cater different segments of
Indian market. In 2016, Shriram Life Insurance Company received the Bizz Americas 2016 Awards. The
company‘s objective aims in ‗reaching out to the common man with products and services that would be
helpful to him/her as they set out on the path to prosperity.‘
THE JOINT VENTURE

Sanlam is a leading financial services group based in Cape Town, South Africa. Sanlam’s association with
Shriram Group began in 2005 with the emergence of Shriram Life Insurance Company (SLIC), a part of the
diversified Shriram Group. Over the years, the relationship has deepened significantly with Sanlam having a
stake in the Shriram Group and a stake of 23% in Shriram Life Insurance through its 100% subsidiary.

Working with the philosophy of financially empowering the underserved and thereby create wealth in the
community; the Shriram Group was founded in 1974 by Padma Bhushan Shri. R. Thyagarajan.
It is this guiding philosophy of putting people first that has brought the company closer to the grassroots and
made it a preferred choice for the Finance Services and Insurance requirements amongst the customers.
Shriram Group:
The 76,000 Cr Shriram Group had its humble beginnings in the Chit Fund business over three decades ago in
Chennai. Mr. R. Thyagarajan, Mr. A.V.S. Raja and Mr. T. Jayaraman were the “three musketeers” who
ventured into the business. Not many in the financial services industry thought at the time that this small Chit
Fund business in Chennai would become the foundation for the financial conglomerate that Shriram is today.
The subsidiaries of the Shriram Group are listed as: Shriram Capital Limited and Shriram Venture Limited.
Shriram Capital Limited (SCL) is the overarching holding company for the Financial Services and Insurance
23
entities of the Shriram Group. Shriram Capital was created with the primary objective of optimizing synergies
across Group companies, apart from playing a significant role in the Risk Management and Leadership
development of these entities. SCL is the main promoter of the two high-growth listed companies of Shriram
Group, namely Shriram Transport Finance Company Ltd, the largest asset financing company in India, and
Shriram City Union Finance Ltd, a leader in Retail Finance across a wide range of products. SCL is also the
promoter of Shriram Life Insurance Company Ltd, and more recently, Shriram General Insurance Ltd, Shriram
Fortune Solutions, Shriram Insight Share Brokers and Shriram Wealth Management. SCL’s main role is to
promote these companies, induct and strengthen leadership teams, provide strategic inputs and direction to
help and nurture them to grow into large and profitable enterprises. On a consolidated basis, SCL has an overall
customer base of 7.5 million, 35,000 employees across 2,800 offices, with Assets under Management (AUM)
of around US$ 11 billion. Shriram Venture Ltd. Shriram Venture Limited operates as a holding company which
provides services in non-financial businesses including power, infrastructure, construction, and real estate
sectors.

3.2 Mission, visions etc.

The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man”
with products and services that would be helpful to him as he sets out on the path to “prosperity”.

Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian , by offering
him high quality and cost-effective products and services, are the core values that drive the organisation. These
values have been strongly adhered to over the decades and are now an integral part of the organisation’s DNA.

The company prides itself on its deep understanding of the customer. Each product or service is tailor-made to
specifically suit the needs of the customer. It is this guiding philosophy of putting people first that has brought
the group company closer to the grassroots and has made it the preferred choice for all truck financing
requirements amongst the customers.

24
3.3 Management
• Managing director and ceo- MR. CASPARUS J H KROMHOUT
• Managing director- MR. MANOJ JAIN
• Executive director—MR.G. VAIDYANATHAN etc

3.4 Registered Address/ Number of branches

Shriram Life Insurance Company Limited,

Ramky Selenium, Plot No: 31 & 32,
Beside Andhra Bank Training Centre, Financial District,
Gachibowli, Hyderabad, TG,
India – 500032.
Branches: Major cities include Chennai, Mumbai, Bengaluru, Pune, Ahmedabad, Kolkata, Lucknow

25
3.5 Composition of Board .

Mr. T.S. KRISHNA MURTHY MR. CASPARUS J H KROMHOUT

CHAIRMAN MANAGING DIRECTOR AND CEO

MR. MANOJ JAIN SMT. AKHILA SRINIVASAN

MNAGINF DIRECTOR

Other Directors
Mr. S Lakshminarayan
Mr. R S Krishnam
Mr. Steven Phillipus Mostert
Mr. Umesh Govind Revankar
Mr. Duruvasun Ramachandra
Mr. Daniel Hermanus Gryffenberg
Mr. Sanjeev mehra

26
3.6 Major customers
Shriram Life has been focused on serving the protection needs of the rural segment and lower income
segments. These segments are most affected by the crisis due to the dual impact of the health emergency and
loss of income. Growth of 8 per cent in the number of policies sold underlines this commitment.

3.7 Financial performance

Highlights of the financial results of your Company for the year ended 31st March, 2020 are summarized
below:

# Expense ratio = All expenses(commission + operating expenses)/ Premium income The results in the Non
Linked business was a surplus of Rs 84.47 Crores after tax (Previous year: surplus of Rs.104.94 Crores); the
results in the linked business was a surplus of Rs. 10.78 Crores. (Previous year: Rs. 6.56 Crores). The Profit
& Loss Account (Shareholders' account) showed a profit of Rs. 106.19 Crores after tax which includes transfer
from Policyholders' Account of Rs. 79.60 Crores (for the previous year the profit was Rs. 35.30 Crores after
transfer of Rs. 88.57 Crores from Policyholders’ Account).

27
3.8 Achievements
• Gold Award for Customer Service Handling –CLAIMS during the 8 th Excellence Competition on
Best Practice Sharing Fest conducted by Confederation of Indian Industry on 28 & 29 August-2020
• Gold Award for Morale Boosting HR Practices during the 8 th Excellence Competition on Best
Practice Sharing Fest conducted by Confederation of Indian Industry on 28 & 29 August-2020
• Best Customer Experience in Financial Sector – Non-Banking, 2020 by Kamikaze B2B Media
• Recognition for Active Customer Engagement 2019 from Confederation of Indian Industry
• Shriram Life Insurance Company Limited MD Mr. Manoj Kumar Jain ranked amongst the
‘Topmost Influential BFSI Leaders’ – World BFSI Congress & Awards, 13th February 2018,
Mumbai.
• Shriram Life receives ‘India’s Greatest Brands Award 2017-18’ (3rd edition) – Pride of the Nation
Series Awards & Business Summit.
• The Golden Globe Tigers 2018 (For Excellence in Banking Finance, Services & Insurance) – Life
Insurance Leadership – Non-Urban Presence and Penetration in India, Kuala Lumpur City
• Shriram Life Insurance MD Mr. Manoj Jain receives the award at the ‘India’s Greatest Brands &
Leaders 2017-18 Awards & Summit’ held by Asia One Magazine and URS Media Consulting PL

3.9 Organogram

Board Of Directors

Chairman

Relationship Manager

Intern

28
3.10 Functional overview
Shriram Life Insurance is an insurance provider in rural market. The diverse insurance plans offered to cater
the need of insurance for mass public & economically weaker section of society. Shriram Group is a financial
services corporation founded on April 5, 1974, by Ramamurthy Thyagarajan, AVS Raja and T. Jayaraman.

3.11 Products
It is a matter of great pride that our products have always been rated amongst the best in the industry. These
products have been developed after extensive research of the Indian market and are designed to meet an
individual’s needs at every life stage.
• Shriram life growth plus plan
• Shriram life assured income plus
• Shriram life online term plan
• Shriram life assured advantage plus
• Shriram life genius assured advantage plus
• Shriram life comprehensive cancer care
• Shriram life my spouse term plan
Assured income plan
Entry age- 30 days to 50 years
Policy term- 8 years to 10 years
Sum assured- 10 lakh
Premium- 1 lakh annually
Maturity benefit
I. Lump sum- 118% of sum assured
II. Regular payout- 162% of annualized premium(factor rate 0.09)

Death benefit

I. Lump sum- 118%of sum assured

II. Regular payout- 162% of annualized premium
III. 50% lumpsum+50% regular payout

Assured income plus plan

It is also called as 555 plan.

Policy term- 10 years

29
Entry age- 8 years

Minimum entry age- 8 years

Maximum entry age- 60 years

Maximum maturity age- 70 years

Minimum premium- 25000

Paying period- 1 to 5 years

Waiting period- 6 th to 10th year

Returns- 11th to 15th year(double)

Death benefits

I. At the time of entered in this plan age is upto 50 years, 10 timesreturn of annualized premium. II. If the age
is more than 50 years, 7 times return of annualized premium

3.12 Overview of different departments etc.

FINANCE DEPARTMENTS
Something must be direct the how of economic activity and facilities its smooth operation. Finance is the
agent that produces this result. Nature of financial management refers to its functions, scope and objectives.
Financial management is that managerial activity which is concerned with the planning and controlling of the
firm’s financial resources. In modern times finance is the life-blood of the business. No matter, whether the
business is big or small financial is the equally important. The financial resources must proper planned and
control in order to achieve the best out of available. So, financial resources should be very properly Generally,
financial planning means deciding in advance, the financial activities are to be carried on to achieve the
objective of the firm. In broader séance, in the words of Walker and Boughn as; “financial planning includes
the determination of firm’s financial objectives, formulating and promulgating financial polices and
developing and procedures.” Financial planning is necessary to achieve both long term and short term
objectives.

30
CAPITALIZATION
At the time of incorporation of any business, it is the first problem before the promoters to decide how much
capitalization should be made in a business. The amount of capital of any time should not exceed nor less than
the amount required. So, it is necessary to have proper capitalization for the success of the enterprise. But
Gerstenberg defines it as; “The total accounting value of all capital regularly employed in business, it includes
owner’s capital, borrowed capital and any other sources.” Thus term includes; 1. The value of ordinary and
preference shares 2. The value of all surplus earned and capital 3. The value of bonds and security still not
redeemed 4. The value of long term loans However the modern view includes short term funds or liabilities
under the firm. It should be properly capitalized. Shriram Life Insurance issue shares. So, all these terms do
apply.

MARKETING DEPARTMENT
Traditionally, insurance products have been promoted and sold principally through agency systems in most
countries. With new developments in consumer behaviour, evolution of technology and deregulation, new
distribution channels have been developed successfully and rapidly in recent years. Shriram Life
Insurancemake use of various distribution channels:
 Career Agents
 Advertisements
 Direct Response
 Internet
The main characteristics of each of these channels are: 
Career Agents:
Career Agents are full-time commissioned sales personnel holding an agency contract. They are generally
considered to be independent contractors. Consequently an insurance company can exercise control only over
the activities of the agent, which are specified in his contract. Despite this limitation on control, career agents
with suitable training, supervision and motivation can be highly productive and cost effective.
Direct Response: In this channel no salesperson visits the customer to induce a sale and no face-to-face contact
between consumer and seller occurs. The consumer purchases products directly by responding to the
company's advertisement, mailing or telephone offers. This channel can be used for simple packaged products,
which can be easily understood by the consumer without explanation.
Advertisements: This very popular medium among the entire medium any person can see this advertisement
of the products and buy the product from nearest branch.
Internet: Internet banking is already securely established as an effective and profitable basis for conducting
banking operations. The reasonable expectation is that personal banking services will increasingly be delivered

31
by Internet banking. Company can also feel confident that Internet banking will also prove an efficient vehicle
for cross selling of insurance savings and protection products. It seems likely that a growing proportion of the
affluent population.
HUMAN RESOURCE MANAGEMENT
“Human Resource Management function that helps managers recruits select, train and develop members for
an organization. Obviously, HRM is concerned with the people’s dimension in organizations
In all business concerns, there is one common element. i.e. HUMAN RESOURCE. Work force of an
Organization is one of the most important inputs of components. It is said that people are our single most
important assets. Because of the unique importance of HUMAN RESOURCE and its complexity due to ever
changing psychology, behavior and attitudes of men and women at work, personnel function, i.e., manpower
management function is becoming increasingly specialized. The personnel function or system can be broadly
defined as the management of people at work- management of managers and management of workers.
Personnel function is particularly interested in personnel relationship and interaction of employees-human
relations.
In a sense, management is personnel administration
MANPOWER PLANNING
Human Resource Planning is the process by which an organization ensures that it has the right number and
kind of people, at the right place, at the right time, capable of effectively and efficiently competing those tasks
that will help the organization achieve its overall objectives. Human Resource Planning translates the
organization’s objectives and plans into the number of workers meet those objectives.
Shriram Life Insurance follows the following process: The first step is forecasting the need of man power in
terms of divisions, department or functions. Along with the estimate of the number of the people required in
different departments it is also decided that at which level they will be needed. After estimating the man power
requirement, next step is to have a look at the current human resource. The current human resource is assessed
so as to know whether the requirement can be filled by the existing personnel or not. At last detailed policies
for recruitment, selection, training, promotion, retirement, replacement etc.
EXCLUSIVE EMPLOYMENT
The employee position is that of full time employed with Shriram Life. The company strictly prohibits the
employees from seeking employment of any nature with any other entity. The employees have to take prior
approval from the superior and the Human Resource department before engaging in activities like addressing
seminars, teaching etc. and ensure that these official duties do not suffer on this account and no monetary
benefit is derived there from.
RECRUITMENT & SELECTION
The upper level members like zonal managers, regional managers, branch managers and senior executives are
recruited by publishing recruitment advertisement in leading national level newspaper. The qualified applicant

32
are then called for interview and selected. The regional manager has authority to select lower level employee
like peon, marketing executives, financial accountant etc. by approval of zonal manager.
PERFORMANCE APPRAISAL
Objective of Performance appraisal if for Developmental uses for agents and financial consultants, for wages,
transfer, promotion, for documentation and for organizational purpose like Human Resource Planning, Job
analysis and for training and development.
TRAINING Continuous training and upgrading technical, behavioral and managerial skills is a way of life in
Shriram. Shriram Life encourages agent or sub-broker to hone their skills regularly to enable them to face the
challenges of the changing requirements of customers that fit market up and down The successful candidates
of the AMFI Exam are given the product training. The primary purpose is to become quite conversant with the
product that one sells. In other words, product knowledge is very important for any advisor. Product knowledge
is not just about knowing the broad terms and conditions of the various schemes of policies.

3.13 Business segment- income, asset size and profitability.

Income
• Shriram Life Insurance generates more than 40% business through providing insurance to rural area
and weaker segment individuals - ‘AAM AADMI’ of India.
• The domestic life insurance industry registered 7% growth for new business premium in financial year
2020-21, largely driven by growth in Individual & Group Single premium policy. While private
insurers saw their growth at 16 %, Life Insurance Corporation of India (LIC) registered growth at 3 %
in last financial year.
• On Individual New Business, Company saw a growth of around 15% as compared to 14% growth for
private industry and 10% growth for LIC. On Individual APE, your Company grew from Rs.453 Crores
to Rs. 513 Crores, growth of 13%, as compared to 8% growth for Private Industry & 3% de-growth for
LIC. The total premium income of the company was Rs. 2019 Crores (Previous Year Rs. 1729 Crores).
Asset Size

The effective and consistent focus on fundamentals also yielded strong results with the assets under
management (AUM) growing at 30 per cent to Rs 6,261 crore.

Profitability

The company's profit after tax has grown three-times to Rs 106 crore in FY20-21, backed by technology
adoption and an increase in rural penetration as the company continues to serve the community at large,
Shriram Life Insurance Company (SLIC). Its profit stood at Rs 35 crore in FY20.
Even during these unprecedented times, the company was able to grow its gross premium by 23 per cent,
crossing the milestone of Rs 2,000 This growth was supported by a 25 per cent growth on total new business

33
premium and 24 per cent growth on retail renewals.

CHAPTER IV: REVIEW OF LITERATURE (RESEARCH PROJECT)

Dr. Praveen Sahu, Gaurav Jaiswal and Vijay Kumar Pandey on topic A STUDY OF BUYING
BEHAVIOUR OF CONSUMERS TOWARDS LIFE INSURANCE POLICIES (2009)
In Indian market, continues changing investment habits of Indians according to their individual factors. The
study shows Investment perception and consumer’s behaviour towards Life Insurance Services. The
consumer’s perception towards Life Insurance Policies is optimistic. In insurance policies developed a positive
mind sets for their investment pattern, some changes are required in plans according to the current need. Many
major factors playing the role in developing consumer’s perception towards Life Insurance Policies are
consumer Loyalty, service Quality, Ease of Procedures, satisfaction Level, company Image, and company-
Client Relationship. Insurance industry is continuously growing. Still opportunities are waiting. This research
will help in developing the market share, loyalty and further development in insurance sector.

Vijay Victor 1, Jose Joy Thoppan , Robert Jeyakumar Nathan and Fekete Farkas Maria on topic Factors
Influencing Consumer Behavior and Prospective Purchase Decisions in a Dynamic Pricing
Environment—An Exploratory Factor Analysis Approach (2018)
This study has identified, measured and classified various online dynamic pricing environment. This measures
into seven factors which could influence consumer behaviour and prospective purchase decisions in a dynamic
pricing situation. The results of the exploratory factor analysis identified shopping experience, awareness about
dynamic pricing, privacy concerns, buying strategy, fair price perceptions, reprisal intentions and self-
protection intentions as factors which could have a significant influence on consumer behaviour and their
prospective purchase decisions. This study, in agreement with previous studies, points out that dynamic pricing
decisions must be made carefully by figuring out their impact on consumer reactions.

Lim Phui Guan , Dayang Hasliza Muhd Yusuf , and Mohd Rosli Abdul Ghani on Factors Influencing
Customer Purchase Intention Towards Insurance Products 2020
The study finds that external state of marketing mix employed by life insurance marketers have a positive
influence on purchase decision. The factor that influences most of customer intend to purchase insurance is
price of the insurance, product features, promotion, and the distribution channel. Customers are willing to
34
purchase insurance with lower price as long as the insurance can provide some coverage for them. The 4 Ps of
marketing mix are also responsible for their buying decision. Thus, company should be aware of the
importance of customers’ attitude in influencing buying decisions and therefore aims towards marketing
activity that can influence customers’ attitude. Future studies looking into these additional factors would be
beneficial to add more literature and empirical data about how marketing mix affect life insurance purchase
intention in Malaysia.

Ms. Anitha and D. Phani Bhargavi on topic Investors’ Perception Towards Investment (2014)
In this study, different demographic variables are considered on decision making behaviour. It is a risky
situation. The direct effects of these demographic factors on risk perception and propensity ultimately on risky
decision making have been established in this study. This study covers that old age investors have more risk
perception and younger. Gender effects the decision in a manner that females have less risk preferences than
males and thus affects the risky decision-making behaviour negatively and are reluctant to take risky decision.

J.Pavithra , Rajan singh on topic A STUDY ON CUSTOMER’S PERCEPTION TOWARDS

FINANCIAL PRODUCT IN I SEC, CHENNAI (2018)
In this project this study shows that the awareness level are high with the present youngsters and the middle-
aged group which can be observed as a positive sign for the growth of the industry. The effectiveness of the
other supporting instrument like client relationship can be further improved so that the impact will be high.

CHAPTER V:
APPLICATION OF MANAGEMENT FRAMEWORK
5.1 SWOT ANALYSIS
Strength:
• Quality of products
• Quality of services
• Highly cooperative and efficient staff & crew members
• Wide distribution network across the whole country.
Weakness:
• Less promotional activities

35
• Less advertising efforts
• Low market share compared to PSUs
Opportunities:
• By making some good promotional efforts Shriram can gain more number of customers who will be loyal.
• Increasing awareness will result in increase in customer base.
• Company has already proved it’s strength in market so, soft work required to launch this product • Huge
potential of insurance business in India.
Threats:
• Challenges posed by other competitor in the market.
• Lower customer base may hinder prompt service
• Social scenario.
• Government policies
• Aggressive Marketing strategy by competitors

5.2 PESTEL analysis

A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing an
organization. The letters stand for Political, Economic, Social, Technological, Environmental and Legal.

Political factors:
• Business processes heavily depend on type of the government in the nation. An open-
minded government and stable political environment present promising opportunities for business
and growth.
• The Government of India has taken number of initiatives to boost the insurance industry.
and that will indirectly help to Shriram life insurance company.

Economic Factors:
• Factors include interest rate, employment and unemployment rate, savings, low return,
inflation rate.
• Other factors which contribute to the insurance industry are the natural factors like earthquakes,
monsoons etc.

36
Social Factors:
• Factors include population, lifestyle, and the third factor is the level of education.
• Shriram Group entered the insurance business to serve people in bottom of the pyramid and
provide better value and wider range of services to its customers.

Technological Factors:
• Factors include changes in digital or mobile technology, using social media campaign.
• Shriram life insurance in partnership with digital consulting and solution firm Left Right Mind
(LRM) has focused on reaching the common man.

Environmental factors:

• Recycling and waste management the growing environmental pollution has adopted business
to adopt innovative recycling and waste management.
• Attitude towards eco-friendly products prioritize and focus on eco-friendly nature of their
products.

Legal Factors:
• An organization must understand what is legal and allowed within the territories they operate
in. They also must be aware of any change in legislation and the impact this may have on business
operations.
• Shriram has partner with Sanlam and Piramal group have facilitated a steady growth of the
insurance companies.

5.3 Porters Five Forces

Competitive rivalry • High competitive industry
• Low premium
• High advertisement
• Premium mode
• Offer Similar products

37
 Bargaining power of suppliers
Bargaining power of Buyers
• Raising prices, lowering quality, or
tightly controlling product/service
availability
• Distributing risk and reducing capital
constraints
• Increase competition and lower rates,
creating profitability pressure in the
reinsurance market
• Individual customer is not major
factor
• Brokers and distributors have more
bargaining power

Threats of Substitute • High as competitors have same

products at low cost
• Bank or other financial institute
products
Treats of New Entrants • Difficult to enter insurance industry
• Increase competition and lower rates,
creating profitability pressure in the
reinsurance market

CHAPTER VI: OBJECTIVES AND SCOPE OF PROJECT

6.1 OBJECTIVES:
Primary objective
• To study various factors responsible for consumer behaviour and Investment towards life Insurance
Secondary objective
• To know the reach of various Insurance product of Shriram life insurance to people
• Lead generation and sell products of Shriram Life Insurance company

38
6.2 Scope of the project
• Factors responsible for consumer behaviour towards life Insurance like pricing, returns, goodwill of
company, duration of policy etc. Other factors includes the emotional, age so considering this thing in mind
company can develop their strategies to influence their customers.
• Awareness regarding insurance product to people to secure their life and family from financial loss or any
adversities.
• Can Insurance as a platform for investments are people willing to pay as insurance is best secure plan rather
than other investment platforms. Because Insurance secure life more appropriately than any other investment
like stock market etc. It gives full coverage life to you and your family.

CHAPTER VII:
METHODOLOGY FOLLOWED FOR THE PROJECT
Overview
Research methodology helps to know the research methods use in the context of our research study and explain
why we are using a particular method or technique.
7.1 Rational for the study
The project aim was to study Investment perception of people towards life Insurance of Shriram Life insurance.
Which other investment platforms they prefer and why. What are factors like ROI, premiums responsible for
customer behaviour towards insurance policy. To get maximum information about it.
7.2 Statement of problem
People generally prefer other investment tools rather than insurance policy. People buying behaviour over
insurance policy and factors responsible for that which will ultimately help company.
7.3 Significance of the Problem
As for any company people are asset of company. Customer Investment perception plays vital role in any
company. With the help of this study company understands customers perspective and reduce the gap between
them.
7.4 Research Objectives
Primary objective
• To study various factors responsible for consumer behaviour and Investment towards life Insurance
Secondary objective
• To know the reach of various Insurance product of Shriram life insurance to people
• Lead generation and sell products of Shriram Life Insurance company

39
 7.5 Scope of the study
• Factors responsible for consumer behaviour towards life Insurance like pricing, returns, goodwill of
company, duration of policy etc. Other factors includes the emotional, age so considering this thing in
mind company can develop their strategies to influence their customers.
• Awareness regarding insurance product to people to secure their life and family from financial loss or any
adversities.
• Can Insurance as a platform for investments are people willing to pay as insurance is best secure plan
rather than other investment platforms. Because Insurance secure life more appropriately than any other
investment like stock market etc. It gives full coverage life to you and your family
7.6 Research design (Research Type)

Descriptive research is defined as a research method that describes the characteristics of the population or
phenomenon studied. This methodology focuses more on the “what” of the research subject than the “why” of
the research subject. When a study is designed primarily to describe what is going on or what exists. Public
opinion polls that seek only to describe the proportion of people who hold various opinions are primarily
descriptive in nature.

7.7 Data sources (Primary and secondary sources)

Primary data:
The primary data was collected by asking the respondents. For data collection, we have taken convenience
sampling. I have prepared the questionnaire among our peers to study Investment perception and Behaviour
of Customers towards Insurance policies of Shriram Life Insurance. Data collection can be done through
surveys to understand the typical characteristics or opinions of people regarding insurance policies and factors
responsible for their investment in insurance plans. A questionnaire to a sample selected through convenience
through online google form. The questionnaire is completely anonymous so that people can answer the
questions without any form of guilt or sense of judgement.
Secondary data:
Secondary data are the information which is attained indirectly. They are the data collected by someone else
and which has already passed through statistical process. For the literature review of I have referred the data
some related article to the topic.

40
7.8 Data Collection Instrument (for e.g. Questionnaire)
Questionnaire through Google forms
It includes basic question from their occupation, income to investment perception and factors through google
forms. By doing this clear responses can be calculated and understands better.
7.9 Sampling Design
o Sample Size- 155 responses
o Sampling Method- Convenience Sampling(due to covid-19 restriction)
o Sampling Unit- an individual person
7.10 Outline of analysis (a brief outline of tools and techniques to be used for analysis,
statistical tools and tests to be used)
Excel sheet was maintained as the number of responses occur the proper information about people in excel
sheet. With help of Microsoft excel features like insert, create, edit, copy, paste Pie chart, and Bar graph were
used for data analysis.
7.11 Limitations of the Project
• Lack of knowledge: As a student, I had no past practical experience of data collection, data processing, data
analysing, integrating, and presenting. So, it was a limiting factor for obtain accurate information.
• Less Sample size: Sample size was very less so the findings from its observations are not that accurate to
make it as valid conclusions.
• More Challenge due to work from home type: As compared to on field internship, work from home
internship was more challenging as there was no personal interaction with organization members and also
with the prospects and customers.
• Shortage of time: Since the summer internship project was of very less time, less areas were explored as
compared to the internship of more time. New roles, new type of work could be studied if the time would
have permitted.

41
 CHAPTER VIII: DATA ANALYSIS
Data Analysis and Interpretation

• Data analysis is a very important tool to understand any data as you need to interpret it. Basic idea for
formulation of Questionnaire was to understand overall scenario of Insurance sector and Investment
perception and behaviour of customers towards life Insurance.
• Questionnaire was framed with the questions includes age, occupation, customers preferences over other
Investment tools like mutual funds etc.
• In the wait of two months, I received responses of 155 from different students professionals etc. From
these responses I had collected sufficient data for analysis.

1. Age

Interpretation:
The above represents the age group of respondents. The maximum no of age is between 18-30 years with
76.1% with 118 respondents. Further age range of 31-40 years and 41-50 years with 12.3% and 7.1% with 19
and 11 respondents, respectively. The minimum only 4.5% are above age 51 years of age.

42
2. Gender
Gegender No of Respondents

Male 86

Female 69

Total 155

Percentage
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Male Female

Interpretation:
The above bar graph shows the gender of respondents. The percentage of male is 55.5%(86) is
comparatively higher then female which is 44.5%(69) of respondents.

3. City

City No of respondents
Nagpur 45
Pune 43
Akola 9
Solapur 16
Nashik 7
Wani 7
Mumbai 4
Others 20

43
 Total 155

Interpretation:
The above tabular format of data represents the various cities belong to respondents. The maximum number
of respondents are from Nagpur which is 29% of respondents that is 45. Next coms Pune city with 27.7% of
respondents with 43 number. Further Solapur with 10.35%(16 Respondents). Akola is city which is 5.8% that
is 9 respondents. Nasik and Wani have same percentage that is 4.5% with 7 respondents. The percentage of
Mumbai city is only 2.6% with 4 respondents. Other’s city includes Patna, Chandrapur, Amravati,
Ahmednagar and Jalgaon with only 2 respondents. The citities like Aurangabad, parbhani, delhi,Bandara,
nanded, ralegoan,Kolkata, goa, jalna, dhule, uttarakanhd, bakaro, Hyderabad have only 1 respondents with
0.6% only least percentage of respondents belong to this cities according to the data.

4. Occupation

Occupation

Businessman 1.2%

Home maker 1.9%

Farmer 1.9%

Entrepreneur 7.7%

Government Job 7.7%

Student 55.5%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

RESPONDENTS PERCENTAGE

Interpretation:
The above graph shows occupation of the respondents. Majority of it is from student with is 55.5% with 86
respondents. 23.2% of respondents do private job which is 36 respondents. Only 7.7.% of respondents either
have government job or entrepreneur With 12 respondents each. The percentage of farmer and homemaker is
same that is only 1.9%. The minimum percentage of respondents is 1.2%.

5. Income per month

44
 Income per month

33.30%
48%

11.40%
7.30%

Below 10,000 10,000- 20,000 20,000- 30,000 More then 30,000

Interpretation:
The above pie chart represents Income of respondents per month. The maximum with 48% of income is belove
10,000 with 59 responses. With 33.3%(41 responses) and 11.4%(14 responses) of respondents have income
range more than 30,000 and between 20,000 and 30,000 respectively. With only 7.3% of respondents have
income range 10,000 to 20,000 respectively with 9 responses.

6. Do you have Life Insurance policy?

People have life insurance ploicy

36.80%

63.20%

Yes No

Interpretation:
The above graph shows the percentage of respondents have insurance policy. The majority of
respondents have policy with 63.2% as compared to the respondents who do not have insurance with
only 36.8% with 98 and 57 respondents respectively.

45
7. Number of policies

Number of Policy respondents have ?

90.00%
80.00%
70.00%
60.00%
PERCENTAGE

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
One Two Three More than three
NO OF POLICY

The above chart shows number of policy respondents have. The minimum or negligible percentage have three
or more than three policies. With 21.6% of respondents have two number of policies which is 22 respondents.
The maximum 76.5% that is 78 respondents have only one policy.
8. Which company Insurance policy you prefer to buy?

Interpretation:
The above graphs describe the company preference of respondents. As from data LIC company is the highest
preferred with46.5% that is 72 respondents. After this Shriram life insurance company preferred which is
41.9% with 65 respondents. Third preferred company an be seen is Bajaj Allianz with 5.2% with 8 respondents.
The companies like ICICI predential and Max life insurance with 3.2% and 1.6% that is 5 and 2 respectively.

46
 9. What is/are the reason you should have Insurance policy ?

Reasons for Insurance

17.40%

12.30%

71.60% 12.90%

For future savings For securing your family For risk covering All of the above

Interpretation:
The above pie chart represents reasons person have insurance policy. Approximately 2/3 of it that is 71.6% of
respondents have All of the above which includes reasons like future savings, security of family and for risk
covering. 17.4% of respondent reason of insurance buying is for future savings. 12.3% and 12.9% of
respondents is approximately same reasons for security family and risk coverage for buying insurance.
10. Premium mode for payment
Payment mode No of Respondents

Yearly 49

Half Yearly 26

Quarterly 34

Monthly 46

Total 155

Interpretation:
The above tabular data shows the respondents premium mode. Maximum no of respondents that is 31.6% (49
respondents) prefer yearly or one time payment mode. The half yearly payment which is minimum prefer only
16.8% (26 respondents). The quarterly and monthly payment mode are 21.9%(34 respondents) and 29.7%(46
respondents). Respondents mostly preferred yearly and monthly premium paying mode.

11. Factors for buying insurance policy

47
 FACTORS CONSIDER BUYING INSURANCE POLICY

All of above 71.60%

Process of purchasing and after services 11%

Factors

Good returns 29%

Affordable premium 15.50%

Percentage

Interpretation:
The above represents factors affects buying decision of customers towards insurance policies. 71.6% of
respondents that is 101 consider all of above which includes process of purchasing after services, good returns
and affordable premium. Good returns consider the second important factors with 29%. 15.5% respondents
consider as affordable premium as buying policy. The minimum that is only 11% consider process of
purchasing and after services as buying factor of insurance policy.

12. Insurance as a platform for Investment

Interpretation:
The above bar graph represent some generals services of insurance companies.
• Insurance as a platform for investment

48
 Maximum with 48 resondents agree with statement that insurance as a platform for investment. 41
respondents, 35 respondents and 18 respondents statements consider neutral, strongly disagree and strongly
agree. With minimum 13 respondents consider disagree with the statements.
• Insurance company provide better after services
52 respondents consider this statements neutral is highest among all.40 respondents consider with agree
statements. 32 and 19 respondents with strongly disagree and strongly agree. Only 12 resondents disagree
with the statements.
• Insurance company have extra benefits
The neutral is consider to be highest for this above statements. 42, 32, and 21 respondents consider agree,
strongly disagree and strongly agree with statement. Only 13 respondents consider it disagree statements.

13. Other Investment tools

Other Investments tools

0.60%

9.70%
16.10% 40%

33.50%

Investments tools Stock Market Mutual Funds Bank Schemes Real State None

Interpretation:
The above 3D pie chart shows that Besides insurance, other investments platforms people consider. Apart from
insurance, 40% of respondents that is 62 represents stock market is best investments tools. After that mutual
fund are considered with 33.5% respondents that is 52 respondents. 16.1(25 respondents) and 9.7%(15
respondents) finds bank schemes and real state respectively. Only 0.6% with minimum shows none investment
tools for investment purpose.

49
14. Will you recommend to your friend to buy Shriram life Insurance policy?

RECOMMEND TO BUY SHRIRAM LIFE INSURANCE

POLICY?

Maybe 28.40%

No 7.10%

Yes 64.50%

Percentage

Interpretation:
The above bar graph shows the recommendation of Shriram life insurance company. With 64.5% of
respondents shows they will accommodate their friends which is comparatively high than 28.4% and only
7.10% of maybe and no respectively. This shows that positive response of respondents towards Shriram life
insurance.

CHAPTER IX: FINDINGS

On the basis of the research project work I did, there are some findings and recommendations that have been
mentioned under.
• Public sector insurance companies have very large business as compared to private general insurance
companies. So private companies have to go long for more and increased business.
• Even in private companies like LIC, Birla Sunlife Insurance, Max New York life Insurance, TATA AIG
and HDFC with trusted name are more preferred to buy insurance.
• Major number of investors are from the age group of 20-30 which means that the people started investing
at a very young age.
• According to findings, 36% of people don’t have insurance policy need to spread awareness of insurance
among people.

50
• Awareness towards the advertisement of Shriram Life Insurance is found very less among the People and
most people know about the company through agents of reference. So it is advised to the company to go
for more advertisements through different medias to increase the awareness of the company.
• Consumer awareness of Shriram Life Insurance is less as compared to the PSUs. So efforts should be
made to increase the awareness of the company.
• This is clear from research that people more people want to invest in banks and mutual funds then
insurance, shares or other investments.
• Only 64.5% of people willing to buy Shriram life insurance policy which is worrying factor company
should change their services. 28.4% don’t know whether to invest here or not and 7.10% willing to not to
invest which is huge.
• Premium are high as compared to other competitors. People don’t want to pay high premium. Mostly
preferred is yearly policy and monthly. Company preferred to give yearly and half yearly policies.
• During covid19 many businessmen are affected drastically and it is assumed many people are not in
interest to buy any life insurance till next year.

CHAPTER X: CONCLUSIONS & SUGGESTIONS

Based on Findings some conclusion and suggestion can be drawn as

• As there is unawareness about life Insurance benefits and about Shriram life insurance, company must
do public campaign as personal interaction impacts more rather than any other platforms.

• Company should go for TV commercials and advertisement as to attract huge audience. As people don’t
know much about Shriram life insurance product.

• The premium should be low so that customers are willing to buy from Shriram life insurance. An returns
should be high

• Company should focus on better after services to gain trust among people.

• People preferences are changing regarding insurances nowadays, earlier Insurance was a means for
wealth creation and that too for a longer period as returns were comparatively low but as compared with
the data in the current past it can be said that people are shifting towards Insurance sector not only for
tax saving but for future planning, life covering risk against security, etc. But again when compared with
other investment options people still prefer stock markets, Bank Deposits, Equity & Mutual Funds
because they provide a higher percentage of return when compared with Insurance Sector

51
 CHAPTER XI: Annexure
Annexure - Questionnaire
1. Name ___________________
2. Age
• 18-30
• 31-40
• 41-50
• 51 above
3. Gender
• Male
• Female
4. City
• Pune
• Nagpur
• Akola
• Solapur
Other: ---------------------
5. Income
• Below 10,000
• 10,000-20,000
• 20,000-30,000
• More than 30,000
6. Occupation
• Private job
• Government job
• Entrepreneur
• Student
• Others -----------------
7. Do you have life insurance policy?
• Yes
• No
8. If yes, how many policy/policies do you have?

52
• One
• Two
• Three
• More than three
9. Which company policy you prefer to buy?
• LIC
• ICICI Prudential
• Shriram life insurance
• Bajaj Allianz Life Insurance
Others: _____________
10. What is/are the reason you should have insurance policy?
• For future savings
• For securing your family
• For risk covering
• All of the above
11. Which premium payment mode you like to pay for your policy?
• Yearly
• Half Yearly
• Quarterly
• Monthly
12. Which is/are factors you consider to buy insurance policy?
• Affordable Premium
• Good Returns
• Goodwill of company
• Process of purchasing and after services
• Others------------------------
13. Do you consider insurance as a platform of investment?
Strongly Agree neutral Disagree Strongly
Agree Agree
insurance as a
platform for
investment
insurance
company

53
 provide good
after services
Insurance
company have
extra benefits

14. If agree, which other platform you like to invest?

• Stock market
• Mutual funds
• Bank Schemes
• Real State
Others: ________________
15. Will you recommend to your friend buy life insurance?
• Yes
• No
• May be

Comment(if any)

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

54
 CHAPTER XII:
Bibliography
• https://www.questionpro.com/blog/descriptive-research/
• https://www.investindia.gov.in/sector/bfsi-insurance
• https://www.niit.com/india/knowledge-center/an-overview-of-the-insurance-industry
• https://www.technofunc.com/index.php/domain-knowledge/insurance-domain/item/overview-of-
insurance-sector
• https://www.ibef.org/industry/insurance-sector-india.aspx
• https://www.investopedia.com/ask/answers/051915/how-does-insurance-sector-work.asp
• https://www.myinsuranceclub.com/articles/insurance-industry-in-india-e28093-an-overview
• https://www.acko.com/articles/general-info/insurance-sector-india/
• https://www.investindia.gov.in/team-india-blogs/overview-insurance-industry-india
• https://www.turtlemint.com/life-insurance/articles/top-insurance-companies-in-
india/#:~:text=Top%20%2315%20insurance%20companies%20in%20India%3A%201%201.,5.%20Tat
a%20AIA%20Life%20Insurance%20Company.%20More%20items
• https://www.iii.org/publications/a-firm-foundation-how-insurance-supports-the-economy/driving-
economic-progress/contribution-to-gdp
• https://financialservices.gov.in/insurance-divisions/Insurance-Regulatory-&-Development-Authority
• https://paperap.com/paper-on-porter-five-forces-insurance-industry/
• https://iireporter.com/using-porters-five-forces-to-analyze-the-insurance-industry/
• https://en.wikipedia.org/wiki/Life_Insurance_Corporation
• https://en.wikipedia.org/wiki/HDFC_Life
• https://en.wikipedia.org/wiki/Max_Life_Insurance

55