Prathibha

A PROJECT REPORT ON
“A STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS LIFE

INSURANCE IN SHRIRAM LIFE INSURANCE LTD”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE AWARD OF THE DEGREE OF
MASTER OF COMMERCE IN ACCOUNTING AND TAXATION

For the academic year 2020-21
BY
Ms. PRATHIBHA M
Reg No: CM192813
UNDER THE GUIDANCE OF
PROF RAFEEK AHMED KHAN
FACULTY, VIJAYA COLLEGE, RV ROAD, BENGALURU
VIJAYA COLLEGE
R V ROAD, BASAVANAGUDI, BENGALURU
STUDENT DECLARATION
I, PRATHIBHA M student of IV Semester M.Com, Vijaya College, RV Road, Basavanagudi,

Bengaluru - 560 004, hereby declare that the project report entitled “A STUDY ON
CONSUMER BUYING BEHAVIOR TOWARDS LIFE INSURANCE IN SHRIRAM LIFE
INSURANCE LTD ”, is the result of the project work carried out by me under the guidance of
Prof .Rafeek Ahmad Khan , Head of the Department, M.Com Department, Vijaya College.
I also declare that this project work is towards the partial fulfilment of the university regulations
for the award of the degree of Masters of Commerce by Bangalore City University, Bangalore.
I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university for the award of any other degree or diploma certificate.
NAME: PRATHIBHA M
SEMESTER: IV
REGNO: CM192813
DATE: Signature:
PLACE: BANGALORE
GUIDE CERTIFICATE
This is to certify that this major project titled ‘A STUDY ON CONSUMER BUYING
BEHAVIOR TOWARDS LIFE INSURANCE IN SHRIRAM LIFE INSURANCE
LTD’ is a record of the original and independent work carried out by PRATHIBHA M
under my guidance and supervision.
DATE:
PLACE: BANGALORE (Signature of the guide)

ACKNOWLEDGEMENT
I would like to express my sincere thanks to our Principal Prof.H.S Balakrishna, Vijaya
College, RV Road, Basavanagudi, Bangalore for providing indispensable assistance
during this project.
I would like to express my sincere thanks to our HOD Prof. Rafeek Ahmed Khan,
VijayaCollege, RV Road, Basavanagudi, Bangalore for providing immense support to
complete my project report.
I would like to express my sincere thanks to my guide Prof. Rafeek Ahmed Khan, Faculty,
VijayaCollege, RV Road, Basavanagudi, Bangalore, for providing indispensable guidance
during this project.
I am very grateful to the management department of Vijaya College, RV Road,

Basavanagudi, for their cooperation to complete this project.
I extend my deep sense of gratitude towards my respected parents and friends for their
constant help and support to success fully complete the project report.
Date: PRATHIBHA M
Place: Bengaluru (CM192813)

TABLE OF CONTENT
Chapters Particulars Page No.
List of Tables i
List of Figures ii
Executive Summary iii
Chapter I Introduction and Industry Overview
Industry Over view
Global Scenario
Indian Scenario
Industry Structure
Industry Outlook
Chapter II Company Overview
Company Overview
Financial Performance
The Vision and Mission Statement
Market STP Model
SWOT Analysis
Products
Chapter III Research Methodology
Methodology
Objectives of the Study
Sources of Data Collection
Sampling Technique
Sample Design
Data Collection, Interpretation and Analysis
Results
Chapter IV Key Learnings and Recommendations
Observations
Expectations and Achievements
Learning Outcome
Recommendations
Findings and Conclusions
Bibliography
LIST OF TABLES
Sl. No. Table No. Title of table Page No.
1 1.1 List of Life Insurance companies in India
2 1.2 Different private players in the life insurance sector
2 2.1 SWOT Analysis of Shriram life insurance company
3 NIL NIL NIL

LIST OF FIGURES
Sl. Figure No. Title of Figure Page No.
No.
1 1.1 History of Insurance
1 1.2 Life insurance and Non- Life Insurance
1 1.3 Types of Insurance
1 1.4 Indian scenario
1 1.5 Growing share of private sector
1 1.6 Life Insurance market

2 2.1 Shriram venture limited
2 2.2 The milestone of Shriram group
2 2.3 Shriram Life Insurance
2 2.4 Shriram Life Insurance
2 2.5 STP Model
3 2.6 Assured income plus
3 3.1 Gender
3 3.2 Age
3 3.3 Occupation
3 3.4 Income level
3 3.5 Awareness about Shriram life Insurance
3 3.6 Awareness about the available investment options
3 3.7 For new policy will people choose Shriram Life

Insurance
3 3.8 People who have life insurance policies
3 3.9 Why do you want to invest in insurance
3 3.10 Perception about the insurance

3 3.11 Do you think insurance agents/ online portal give
authentic information about the policy?
3 3.12 How do you clarify your query?
3 3.13 Like to pay the Premium
3 3.14 Rate the overall satisfaction with the insurance

policy.
4 4.1 Findings
A STUDY ONCONSUMER BUYING BEHAVIOUR TOWARDS
LIFE INSURANCE IN SRIRAM LIFE INSURANCE LTD
Executive Summary
Life of human is a completely essential asset and existence insurance is very essential as
it insures the life of human i.e. Offers protection to an individual and his circle of relatives
when uncertainty arises. Life Insurance is not only a protection it is also a savings.
Shriram Life Insurance plays a very critical position in the person welfare by way of
offering coverage to thousands and thousands of people while the human life is at hazard
or at uncertainty time. The study at present has been selected with an objective of
examining the consumer behaviour and various factors affecting the buying behaviour of
Life insurance in Shriram Life Insurance. The data collected for the study is a primary
data and the sample size is 208 respondents. Insurance policy should spread awareness
about their policy, returns, premium, goodwill etc. and also they should have innovative
products where this information was provided by the previous research papers. Insurance
is not only for tax saving but also for financial security, risks, uncertainty etc.
VIJAYA COLLEGE R V ROAD BANGALORE-04

CHAPTER - 1
OVER VIEW OF INDUSTRY

1
Industry Profile:
INTRODUCTION
INVESTOR; An individual who commits money to investment products with the

expectation of financial return. Generally, the primary concern of an investor is to minimize
risk while maximizing return, as opposed to a speculator, who is willing to accept a higher
level of risk in the hopes of collecting higher-than-average profits.
Investors ‘behavior is the study of how individual make decision to spend their available
resources (time, money and efforts) on investment related items. It helps the marketers to
understand what, why, where, when and how an investor behaves with respect to products
and services. Knowing answer to this question let marketers to design their marketing
strategies accordingly.
Perception; A conscious or unconscious state of awareness or understanding of one’s

surroundings that exists within the mind and formed through sensory signals stimulated by
current conditions, expectations and past memories. The confluence of complex sensory inputs
often times creates a perception that is unreliable or unverifiable
Consumer behavior;
Consumer behavior is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to
the actions of the consumers in the marketplace and the underlying motives for those actions.
Consumer behavior is very important to understand what influences the buying decisions of
the consumers and why does it so.

2
Stages of this training program
Some of the concerns and challenges interns face seem to occur in a predictable order.
Each stage has its own obstacles and opportunities. These concerns must be resolved for
them to move forward and continue learning and growing
ANTICIPATION
DISILLUSIONMENT
CONFRONTATION
COMPETENCE
CULMINATION

3
1.1 Meaning of Insurance
Insurance is providing protection to an individual or entity which is represented by means of

policy. It is a legal agreement between two parties i.e., the insurance company (insurer) & the
individual (insured). The company pools client’s risks to make payments more affordable for
the insured. The amount of money charged by the insurer to the policyholder for the coverage
set forth in the insurance policy is called the premium.
Insurance is a tool by which fatalities of a small number are compensated out of funds (premium
payment) collected from plenteous. Insurance is a safeguard against uncertain events that may
occur in the future.
It is an arrangement where the losses experienced by a few are extended over several who are
exposed to similar risks. It is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premium to provide security for the purpose.
Loss is paid out of the premium collected from people and the insurance companies act as
trustees to the amount so collected. These companies have proposal forms which are filled to
give details of insurance required. Depending upon the answers in the proposal form insurance
companies assess the risk and decide on the premium.
Insurance companies are risk bearers. They underwrite the risk in return for an insurance
premium. the function of insurance is to provide protection, prevent losses, capital formation
etc. hence insurance can be defined as a tool in which a sum of money as a premium is paid by
the insured in consideration of the insurer’s bearing the risk of paying a large sum .it may also
be defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or
his beneficiary, a certain sum upon a given contingency against which insurance is required.

4
Insurance industry commands massive funds through sales of insurance products to large
number of clients. Insurers also create liabilities and commit themselves to compensate for
losses occurring to the policyholders on future date. It also plays an important role in process
of capital formation.
2. NATURE OF INSURANCE
a) Risk sharing and risk transfer: Insurance is used to share the financial losses that
might occur to an individual or his family on the happening of specified events. The loss arising
from such events are shared by all the insured in the form of premium.
Example: suppose in a village, there are 250 houses, each valued at Rs. 200000.
Every year one house gets burnt, resulting into a total loss of Rs 200000. If all the
250 owners come together and contribute Rs.800 each, the common fund would be Rs.200000.
This is enough to pay to the owner whose house gets burnt. Thus, the risk of one owner is spread
over 250 house owners of the village.
b) Risk assessment in advance: Insurance companies are risk bearers. They assess the
risk before insuring to charge the amount of premium.
c) Its not gambling or charity: The uncertainty is changed to certainty by insuring

property and life because the insurer promises to pay a definite sum at damage or death.
Insurance is antithesis of gambling. Failure of insurance amounts to gambling because the
uncertainty of loss is always looming. Moreover, insurance is not possible without premium.
So it is different from charity because charity is given without consideration.
d) Huge number of insured people: It is essential to insure larger number of people or

property to make cost of insurance less premium would also be less.

5
e) Assists in capital formation: Insurance provides capital to society.

Accumulative funds are invested in productive channels.
3. SEMANTICS
1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in

or disappearance of value arising from contingency.
2. Policy: It is the document which embodies the insurance contract
3. Whole life policy: It is the policy under which the amount of policy will be paid only
on death of the insured. Premiums may be payable throughout the life or for a limited
period.
4. Endowment policy: Endowment policies entitle the insured to receive the amount of
the policy on his reaching a certain age and premiums also stops. If death occurs earlier,
amount of the policy will be paid at that time and payment of premium will also stop at
that time.
5. Claim: It is the amount which an insurer has to pay against a policy.
6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer.
The object is to reduce the possible loss to be borne by the original insurer, who pays
premiums at the ordinary rates to the reinsurer. Reinsure must pay commission to the
original insurer.
7. Premium: A periodic payment made on an insurance policy.
8. Insurance penetration: It is defined as insurance premium as a share of gross domestic

product.
9. Insurance density: Insurance density is defined as per capita expenditure on insurance
premium i.e. premium per capita.
10. Actuary: The actuary is a specialist who combines an understanding of risks and
mathematical technique to develop financial products to manage these risks, price these
products. He helps in designing insurance plans and then evaluates the financial risk of
the company which it takes while selling an insurance policy.

6
1.2 HISTORY OF INSURANCE GLOBAL
For now, we know the meaning of insurance, different types of insurance. Now let us know the
history and reasons for and behind different types of insurance.
Insurance has existed for thousands of years. The first ever type of insurance was
Property Insurance. It became popular about 3000 BC in China. It all started when Chinese
merchants, as well as their investors, wanted to ensure that they would see a profit from their
goods that they shipped overseas. In the event that a ship was lost at sea, an insuring partner
would reimburse the owners of the ship and goods. To pay for the loss the merchant would be
sold into slavery to the insurer until the debt was repaid. This was so because, a merchant could
not afford to pay for the lost goods or even to buy a ship unless someone invested.
By the middle of the 14th century, marine insurance was one of the most popular types of
insurance among nations of Europe. Things changed dramatically in the 17th century in Europe.
In 1666, the Great Fire of London bought the need for fire insurance. The Great Fire of London
burned for four days and nights. It destroyed 436 acres, 13,200 houses, 89 churches (including
Saint Paul's Cathedral), the Custom House, the Royal Exchange and dozens of other public
buildings. Only six people were victims in the flames, but hundreds died from shock and
exposure.
By 1688, Edward Lloyd was running a coffeehouse in London. Where, London merchants and
bankers met informally to do business. There financiers who offered insurance contracts to
seafarers wrote their names under the specific amount of risk that they would accept in exchange
for a certain payment, called premium. These insurers came to be known as underwriters.
Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew as an
insurance company.
The concept of insurance developed at a fast pace with the growth of British commerce in the
17th and 18th century. The first stock companies to engage in insurance were chartered in
England in the year 1720.

7
The Workmen's Compensation Act of 1897 in Britain required employers to insure their
employees against industrial accidents. Public liability insurance, fostered by legislation, made
its appearance in the 1880s.It attained major importance with the advent of the automobile.
Until the 1950s, most insurance companies in the United States were restricted to provide only
one type of insurance, but then legislation was passed to permit fire and casualty companies to
underwrite several classes of insurance. Many firms have since expanded and also were
responsible for many mergers.
From this brief accounting of history, we can see how insurance came into existence.
Fortunately for us we no longer have to sell ourselves into slavery if our car is stolen nor we
have to be scared of losses due to absence of reserves. However, we can be confident that we
will be compensated for our loss. Without people wanting to secure their investments and great
tragedies throughout history we may not have insurance as we know it today resulting in peace
of mind.
History of Insurance
Insurance companies came to India in the year 1818. Oriental Life Insurance Company started
its business in Kolkata. In the year 1871 Bombay Mutual Life Assurance Society came into
existence to cover Indian life insurance.
There were no rules and regulations in India to regulate Insurance business. Insurance and
Provident Fund Act came into existence in the year 1912. Post independent of Indian has seen
many changes and growth with respect to Insurance Business. 57 Companies are doing business
of Insurance in India. Out of 57 24 are Life Insurance groups. And the balance 33 Insurance
companies are not Life Insurance. Out of 24 Life insurance companies, 1 is Public and the
balance 23 are Private Companies. And out of 33 non-life Insurance Companies 1 is Public and
balance 32 companies are private.

8
If any Insurance Company has to start business in India, the license fee will be Rs.12000
Crores. During 1956 Life Insurance Corporation of India was having 5 Zonal Offices. It has
212 branch and 33 Divisional offices across India. In the year 1919 Insurance companies come
with new ideas to give more services.
To facilitate IRDAI (Insurance Regulatory and Development Authority of India) was set up as
Independent regulatory body. It is established in the year 1999 and its Head office was in
Hyderabad. At that time the chairman was Subhash Chandra Kuntia and its Committee was
having 10 members. This regulatory body was responsible for the growth of Insurance Business
in India.

9
Figure 1.1
Life Insurance
(24 players)
Insurance Regulatory
and Development
Ministry of Finance
Authority of India
(Govt. of India)
Non - Life Insurance
(24 players)

10
Figure 1.2
Non - Life
Life Insurance
Insurance
Public (1)
Life insurance
(24 players) Private (23)
Public (6)
Non-Life
insurance
(24 players)
Private (22)

11
FIGURE 1.3

12
INDIAN SCENARIO

13
1.3 LIFE INSURANCE
This policy was stared in the year 1956. The moto of this policy is to give financial freedom to
their family.
After the entry of new players and increase in the penetration levels, could see the insurance
sector cross the Rs 2,00,000-core mark in business by 2010.The current size of the sector is
estimated to be at Rs 50,000 crore, which has seen a compound annual growth rate (CAGR) of
around 175 percent in the last few years.
The insurance sector, both life and non-life, is likely to grow by over 200 percent, and private
insurers are expected to achieve a growth rate of 140 percent as a result of aggressive marketing
technique. It added that state owned insurance companies are likely to be 35-40 percent

14
A STUDY ONCONSUMER BUYING BEHAVIOUR TOWARDS LIFE
INSURANCE IN SRIRAM LIFE INSURANCE LTD
On account of intense marketing strategies adopted by the private insurance players, the market
share of state-owned insurance companies like GIC, LIC and others has come down to 70
percent in last 4-5 years from over 97 percent. Despite regulation, the private players are
offering 35 percent rate of return to is policy holders against 20 percent by public-sector
insurers.
The industry body also noted that India’s life insurance premium is 1.8 percent as a percentage
of GDP whereas it is 5.2 percent in the US, 6.5 percent in the South Korea.
The services sector offers immense opportunities for expansion opportunities for expansion
opportunities and the rural market, also, offers tremendous growth opportunities for insurance
companies.
1.4 TYPES OF LIFE INSURANCE POLICEIS
1. Term Plan: It is called term insurance policy. It gives benefit for specific period of
time. Normally it gives benefit from the 40th year from date of purchase of policy.
Risk is covered and there will be an option to include riders. In case the insured
person dies, the sum assured will be given to the nominee.
2. Endowment Plan: In this Life insurance Policies benefits will be given to the insured
person if he is alive at the time maturity date of policy. In this Endowment policies
benefits will be there like monthly Bonus. But this will be paid at the time of maturity
if he or she is alive. But in case the insured person dies before maturity, these benefits
go to the nominee. It is known as Traditional Insurance Policies. Risks are very low in
this kind of policies.
3. ULIP: in this kind of Insurance policies, part will go to mutual fund investments. And
the balance goes to the Insurer as death benefit. Any Individual can invest in different
kinds of funds offered by the insurance companies. Risk management varies
according to each policy.
VIJAYA COLLEGE , R.V ROAD ,BENGALURU-04

15
4. Whole Life Insurance: This policy is not a fixed term. But it is for the whole life of
an individual. In this case the benefit goes to the nominee when the insured person
dies. The insurer is eligible to withdrawal but only after premium payment period.
5. Child’s Policy: This policy is to cover financial protection to the children for the
entire life by way of Investment plus Insurance policies. It is the best policy to
safeguard child’s future for the purpose of education and marriages. During the term
of the policy, if the parent of the child dies, the sum assured amount will be given to
the child immediately.
6. Money-Back: Once the insured policy is purchased, certain amount of sum assured is
given to the insurer as survival benefit.
7. Retirement Plan: In other words, it is called as pension plans. It is like two in one
policy, i.e investment and insurance. In this policy part amount will be given as
monthly pension and other part will be given at the time of retirement.
1.5 LIST OF LIFE INSURANCE COMPANIES:
Below is the list of Life Insurance Companies in India. There are 24 Companies.
Table 1.1
Life Insurance Companies in India
Company Name Founded Partners
Life Insurance Corporation of India 1956 Government of India
Aditya Birla Sun Life Insurance 2000 Aditya Birla Group and 1sun Life
Financial Insurance Investment Inc.
HDFC Standard Life Insurance 2000 HDFC Ltd. and Standard Life Ltd.
ICICI Prudential Life Insurance 2000 ICICI Bank Ltd. and Prudential
Corporation Holdings Ltd.

16
Max New York Life Insurance 2000 Max India Ltd. and Mitsui Sumitomo
Insurance Co. Ltd.
Bajaj Allianz Life Insurance 2001 Bajaj Finserv Ltd. and Allianz SE
Exide Life Insurance 2001 Exide Industries Ltd.
Kotak Life Insurance 2001 Kotak Mahindra Bank Ltd. and Old
Mutual.
PNB MetLife Insurance 2001 PNB Bank Ltd., J&K Bank Ltd., M.
Pallonji and Company Private Limited.
Reliance Life Insurance 2001 Reliance Capital and Nippon Life

Insurance Co. Ltd.
SBI Life Insurance 2001 State Bank of India and BNP Paribas
Cardif.
Tata AIA Life Insurance 2001 Tata Group and American International
Assurance Company.
Aviva Life Insurance 2002 Dabur Invest Corp. and Aviva
International Holdings Inc.

Sahara Life Insurance 2004 Sahara India Pariwar
Shriram Life Insurance 2005 Shriram Group and Sanlam Group
Future Generali India Life Insurance 2007 Future Group and Assicurazioni
Generali.

17
AEGON Life Insurance 2008 Bennett, Coleman & Company and

Aegon India Holdings BV.
Bharti AXA Life Insurance 2008 Bharti Enterprises and AXA India
Holdings
Canara HSBC OBC Life Insurance 2008 Canara Bank and Oriental Bank of
Commerce and HSBC Insurance
Holdings Ltd.
DHFL Pramerica Life Insurance 2008 Dewan Housing Finance Corporation
Ltd. and Prudential International
Insurance Holdings Ltd.
IDBI Federal Life Insurance 2008 IDBI Bank, Commercial Bank &
Federal Bank and Aegis Insurance

International NV.
Star Union Dai-Ichi Life Insurance 2008 Bank of India, Union Bank of India and
Dai-Ichi Life Insurance Co. Ltd.
IndiaFirst Life Insurance Company Ltd. 2009 Bank of Baroda, Andhra Bank and
Legal & General Middle East Ltd.
Edelweiss Tokio Life Insurance 2011 Edelweiss and Tokio
Marine and
Nichido Fire Insurance Co. Ltd.
(The aforesaid Table is taken from https://www.policyx.com/life-insurance/companies/)

18
1.6 PRIVATE SECTOR SHARE IS INCREASING IN LIFE INSURANCE

SEGMENT:
FIGURE 1.5
––(The aforesaid Table is taken from Yadnya Investment academy)

19
From the past many years, share of private sector of Life Insurance sector is keep on
growing.
It was 15% in the year 2004 but now it is 55.7% in the year 2019.
The different private players in the life insurance sector and their associations with foreign
companies are being given below:
Table 1.2
COMPANY INDIAN FOREIGN TOTAL FDI FOREIGN
PROMOTER/PARTNER INSURER CAPITAL CAPITAL

(%)
(RS MN.)
(RS MN.)
AMP RELIANCE None 2,170 0 0

SANMAR GROUP(ADAG)
Aviva Life Dabur Aviva (UK) 4,590 26 1193.4
Bajaj- Bajaj Auto Allianz 3680 26 960
Allianz (Germany)
Birla Sun Aditya Birla Group SunLife (Canada) 4,000 26 1,040
Life
HDFC HDFC Standard Life 2,500 18.9 470
Standard (UK)
ICICI ICICI Bank Prudential (UK) 10,850 26 2,820

Prudential
ING Vysya Vysya Bank ING 4,400 26 680
Ins.(Netherlands)

20
Kotak Kotak Mahindra Bank OldMutual (South 2,600 26 680
Mahindra Africa)
Old Mutual
Max Max India NewYorkLife 5,000 26 1,300

Newyork (US)
Met Life J&K Bank Met Life (US) 3,550 26 920
Sahara Life Sahara India None 1,000 0 0
Ins. I
SBI Life SBI Cardiff (France) 3,500 26 910
TATA AIG TATA Group AIG (US) 3,810 26 990
Shriram Shriram Sanlam Life Ins.
Bharti AXA Bharti Group AXA(Australia)
Some of the new companies who are waiting to come in to the life insurance sector
are:
a. IDBI-FORTIS.
b. Syndicate Bank

21
1.7 CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY
Some surveys have predicted that India and China will play a very vital role in the years to
come. Indian economy can be termed as an emerging economy as it is doubling its GDP in 3
to 5 years and moreover it is not dependent on any particular sector for its GDP.
If we look at the GDP of the Indian economy very closely over the years, we can easily come
to know the changing structure of the economy. We can also come to know the changing
contribution of the various sectors like agriculture, manufacturing and the service sector. In
the financial year 1993-94, agricultural sector contributed to 31%, manufacturing accounted
to 26.3% and the service sector contributed to 42.7% of the total GDP of the country. Thus,
over the years as India became an emerging economy in 2003-04 manufacturing sector
contributed for 21.7 %, manufacturing contributed for 26.8 whereas service sector contributed
for 51.4% of the total GDP.
There has been 7.5% growth in the total GDP of the country and is estimated to grow at 8.0%
in 2006-07. The Indian economy has shown signs of strong performance despite a rise in oil
prices, high inflation rate and abnormal rains in many parts of the country. The overall growth
of the Indian economy y has been equally supported by all the three sectors of the economy,
i.e. the agriculture, manufacturing and the service sector. Insurance, together with the banking
sector, contributes to about 7.3 % of the total GDP of India, and the gross premium collected
contributes to about 2% of the total GDP of the country
The insurance sector in India has completed a full circle from being an open competitive
market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost 200 years.

22
GOVERNMENT POLICIES REGARDING LIFE INSURANCE

Insurance Regulatory and Development Authority (IRDA) 1999
Reforms in the insurance sector were initiated with the passage of the IRDA bill in December
1999.it was set up as an independent body and it has been able to frame globally compatible
legislations.
The IRDA was set up to protect the interests of holders of insurance policies, to regulate
,promote and insure orderly growth of the insurance industry and for matters connected
therewith or incidental thereto.
This act extends to whole of India. With the establishment of this act, government amended
Insurance act 1938, Life Insurance Act 1956 and General Insurance Act 1972.
IRDA was formed on the recommendations of Malhotra Committee. In 1999 government of

India has set up Malhotra Committee to examine the structure of insurance industry and
recommend changes, under R.N Malhotra –former governor of RBI.

23
1.8 LIFE INSURANCE MARKET
FIGURE 1.6
(Source: IBEF)
Life insurance sector is having more growth in India. Survey states that in the year
2020, 35% of total savings in India will be invested in Insurance sectors. Business
Premium of life Insurance have increased from 14.44% of CAGR.

24
REVIEW OF LITERATURE
The review of literature has been made to seek out the research gap and to spot the relevant
issues on the subject . it's important for a researcher to review the related literature so as to
possess a clear knowledge about the subject and understand the research gap so as to draw
the scope for the study.
Athma. P and Kumar. R (2007) within the research paper titled “an explorative study of
life assurance purchase decision making: influence of product and nonproduct factors".
The empirical based study conducted on 200 sample size comprising of both rural and
concrete market. the varied product and non-product related factors are identified and their
impact on life assurance purchase decision making has been analyzed. supported the
survey analysis; urban market is more influenced with product based factors like risk
coverage, tax benefits, return etc. Whereas rural population is influenced with non-product
related factors such as:
credibility of agent, company’s reputation, trust, customer services. Company goodwill
and a refund guarantee attracts many people for all times insurance.
Girish kumar and eldhose (2008), published in insurance chronicle icfai monthly
magazine august 2008 in their paper titled "customer perception on life assurance services:
a comparative study of public and personal sectors", well explained the importance of
quality services and its significance in raising customer satisfaction level. A comparative
study of public and personal sectors help in understanding the customer perception,
satisfaction and awareness on various life insurance services
Sahu et al, (2009); conducted a survey on 150 respondents to work out the attributes
affecting buying behavior of consumers, investment pattern in life assurance services and
compare the differences in consumer perception of male and feminine consumers. In their
study they found that there 6 factors which affect the buying behavior while purchasing
life assurance policies namely consumer loyalty, service quality, simple procedures,

25
satisfaction level, company image and company client relationship. there's no difference
between the perception of male and feminine preferences.
Yadav and Tiwari (2012); the study area is restricted to Jabalpur district, of Madhya
Pradesh and sample size of 150 policyholders is taken and therefore the sample are selected
through a satisfied and purposive sampling method. The study has been conducted to seek
out out factors influencing customer investment decision, impact of varied demographic
factors, preferences of consumers while taking the choice , and ranking of things liable for
the choice life assurance as an investment option. The study was conducted on 150
respondents in their study on factors affecting customer investment in life assurance policies
and located the age, gender and income level. Out of 150 samples 54.6% of policy holders
have invested in LIC followed by SBI life assurance amongst private players.
Singh (2014); conducted a sample survey on 255 respondents of Uttar Pradesh to research
life insurance consumer behavior. Main purpose that the study was conducted was to assess
the socio-economic status of respondents and to look at the impact of status on insurance
purchasing capacity. The study shows that maximum people invest for the aim of tax rebates
and family safety. He found that major insurance products be child plan and pension account
. He even found that maximum people wish to get insurance product directly from insurance
agents followed by banks, financial institutions, and brokers. it had been found that
government servicemen of 26-45 years aged buymore insurance products and middle
income group 100000-300000 people buy more insurance policies.
Sandeep Chaudhary (2016); has extracted six factors that influencing consumer behavior
namely customized and timely services, better company reputation, customer convenience,
better service quality, tangible benefits and effective customer relationship management.
This study revealed that new and innovative products will enhance better customer
relationship management basing on sample study of 100 respondents.

26
CHAPTER II
COMPANY PROFILE

27
Insurance Industry;
Insurance in India was started within the year of 1956, when life assurance Corporation
came into place. Post liberalization, the insurance industry in India has recorded significant
growth. The Indian insurance industry is predicted to grow to US$280 billion by FY2020,
due to the solid economic process and better personal disposable incomes within the
country. Premium income of the life assurance segment had increased 14.04% in FY17 to
RS4.18 trillion (US$ 64.92 billion). The total insurance market expanded from US$ 23
billion in FY05 to US$ 84.72 billion in FY17. There are 24 life assurance and 33 non-life
insurance companies within the Indian market who compete on price and services to draw
in customers. There are more than six reinsurance companies. The industry has been
spurred by product innovation, vipant distribution channels, including targeted publicity
and promotional campaigns by the insurers. Private sector companies hold 48.01% market
share in the general insurance segment and 28.93% market share in the life insurance
segment.
IRDAI governs the Indian insurance sector:
IRDAI is responsible for regulating, promoting and ensuring orderly growth of the
insurance and reinsurance business in India.

28
2.1 Shriram Group:
Shriram Group company was incorporated in 5th April, 1974. Its founder name is
R. Thyagarajan. Its Head office is in Chennai. 45000 employees are working in Shriram
Group.
And its total revenue is 75952.60 Crores. It is doing business with respect to finance and
Insurance. Its group first business was Chit Fund business in Chennai. From the past 30
years the company is providing financial services like providing loans and chit funds.
Padmabushan award has been given to the founder in the year 2013. Its Business is mainly
in the south India and total customers are more than one crore.
Shriram Venture Limited and Shriram Capital Limited are subsidiaries of Shriram group.
SHRIRAM VENTURE LIMITED:
This holding company is mainly providing non-financial service like construction,

infrastructure and real estate.

29
FIGURE 2.1

30
Years to remember:
1974-Shriram Chits began operations in 1974 with one branch and has since then grown into
a trusted household name, making Chits a viable sort of saving and borrowing for all segments
of society. With a network of 465 branches spread across Tamil Nadu, Andhra Pradesh,
Karnataka and Maharashtra; Shriram Chits employs on the brink of 5000 people. the corporate
has successfully built a reputation for timely disbursement and excellent customer service.
1979-Shriram Transport financial institution was founded in 1979 with the aim to finance
the much-overlooked Small Truck Owner. it's registered as a ‘Deposit Taking NBFC’ with the
Federal Reserve Bank of India under section 45IA of the RBI Act,1934. The Shriram Group
had the foresight to base their marketing supported aspiration, much before the concept became
a well known one.
1986-Shriram City established in 1986 is India’s premier financial services company

specializing in retail finance. Its Consumer Finance business unit was found out in 2002 to cater
to chit fund customer needs. the corporate offers a comprehensive range of products making it
a dominant player. With over 1000 business outlets country-wide, it is listed on the BSE, NSE,
Madras Stock Exchanges and enjoys a high credit rating.
2005-Shriram life assurance commenced operations in 2006. Synonymous for its efficient
use of capital and low operational costs, SLIC has been faithful the Group‘s philosophy of
monetary inclusion. A venture between Sanlam and Shriram Group,
SLIC’s aim is to supply life assurance plans and solutions that cater to a wider demographic.
it's a network of 630 offices and 75,000 agents across India. 2009-Identifying the opportunities
including India’s flourishing consumer markets, Shriram Group made a raid General Insurance.

31
SGI’s specialise in addressing customer needs, nurturing talent and developing a home-grown
technology platform for the underserved segments of the economy has ensured the group’s
sustainable growth for over three decades. SGI received the Excellence in Growth Award in
2011 and 2012.
2011-Set up with the aim to supply financial assistance to prospective homeowners who remain
underserved, SHFL commenced operations in December 2011. Keeping in line with their core
philosophy of Finding Ways to Funding Homes; the corporate has developed several innovative
mortgage products.
Serving the underserved thereby creating wealth within the community:
Mr. R. Thyagarajan has exceptional commitment in serving the underserved category of

consumers (referred to as “aam-admi”), as this segment of consumers are usually neglected by
the organized financial sector. These segments of consumers have become the target
marketplace for all Shriram Group companies within the financial services space.
Mr. Thyagarajan’s philosophy is that the group should only run enterprises which add value to
the community. MrThyagarajan once said “Unless we've a useful role for the community and
customer, we'll not enter the business. the companies we enter must meet the requirements of
the underserved sections of the economy”. for instance , he felt that commercial vehicle buyers
should are given a good chance of survival and not be burdened with high interest rates. He
understood that they might be ready to repay loans and it had been just a matter of your time .
Hence he realised that because these segment of customer were neglected by other financial
institutions, someone had to increase credit to them at reasonable rates.
This is how Shriram Transport came into business, with specialise in the owner operators (be
it new or used vehicles). This segment has always been perceived as a high risk segment to
cater too. Today, Shriram Transport has grown to an AUM in more than Rs 40,000 crore, a
PAT in more than Rs 1,200 crore, market capitalisation in more than Rs 13,000 crore, and a
customer base of 8, 00,000. In similar vain, one among the opposite NBFCs of Shriram

32
(Shriram City Union Finance) has over the last 10 years focused on SME’s (small medium
enterprises- an underserved segment), and has today grown to become a corporation with AUM
in more than Rs 13,000 crore, PAT in more than Rs 350 crores, and a customer base of quite
3.7 million, re-enforcing RT’s philosophy of “serving the underserved
Empowerment:
Empowerment and freedom of operation are deployed effectively across the Group, leading to
an environment that's conducive to nurturing talent and allowing the exceptional performance
to blossom. This philosophy of the group has, over the years, created a win-win situation for
the group and its employees and continues to feature unique value to the Group. Mr.
Thyagarajan has always encouraged those that have an entrepreneurial spirit as he has always
supported those that believe starting a replacement business. This has allowed the managers to
make a business by being fully empowered, with the commitment of the group.
Investor relations:
Transparency levels are high within the group which has over the years increased investor
comfort and trust. Mr. Thyagarajan has always ensured that the group focuses not only on
providing a onetime transaction with its partners & investors, but on building a relation with
them within the end of the day . The group has high levels of transparency, unique values and
philosophies and provides importance to investor relations while offering high returns. Mr.
Thyagarajan has managed to draw in 90 year Old South African Insurance giant, Sanlam Group,
to partner with both the Life and General insurance businesses of the group. Both these
companies have managed to form profits within the previous couple of years, unlike other
insurance players within the country. Mr. Thyagarajan has often stated “Our Company isn't
supported transactions, but on relations with our financial and strategic partners”. The group
has quite 20 Private Equity investors who all have significant shares in group companies.

33
Frugal management:
Mr. Thyagarajan may be a model to several. He leads by exception during a relatively simple
life, and has transformed this to a philosophy of the group.
Shriram Group doesn’t pay fancy salaries to its employees, doesn't spend extravagantly, and
tries to always optimize costs. Mr. Thyagarajan believes that empowerment and freedom retain
people within the group instead of large salaries. This philosophy has been inculcated by the
employees of the group so well, that they need used an equivalent philosophy to create simple
offices and branches, as against spending extravagantly on the looks of offices and branches.
All the operating companies of the group have a number of the simplest Cost/Income ratios
within their respective industries.

34
SHRIRAM CAPITAL LIMITED:
Shriram Capital Limited (SCL) is that the overarching company for the Financial Services and
Insurance entities of the Shriram Group. Shriram Capital was created with the first objective of
optimizing synergies across Group companies, apart from playing a big role within the Risk
Management and Leadership development of those entities.
SCL is that the main promoter of the 2 high-growth listed companies of Shriram Group, namely
Shriram Transport financial institution Ltd, the most important asset financing company in
India, and Shriram City Union Finance Ltd, a pacesetter in Retail Finance across a good range
of products. SCL is additionally the promoter of Shriram life assurance 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 market
these companies, induct and strengthen leadership teams, provide strategic inputs and direction
to assist and nurture them to grow into large and profitable enterprises. On a consolidated basis,
SCL has an overall customer base of seven .5 million, 35,000 employees across 2,800 offices,
with Assets under Management (AUM) of around US$ 11 billion

35
This company is providing service and insurance. The main purpose of the company is to bring
interaction between group companies. It is one of the main promoters of two growing
companies in Shriram Group. Shriram Transport Finance Company Limited is the largest
financing asset. And Shriram City Union Finance Limited is the leader in Retail Finance.

36
2.2 THE MILESTONES OF SHRIRAM GROUP

FIGURE 2.2

37
2.3 THE VISION AND MISSION STATEMENT
“Serving the Under-served”, “Creating Value at the Bottom of the pyramid”,

“Striving to serve the largest number of common people”.
“People First” is the mantra of Shriram Group.
2.2 SHRIRAM LIFE INSURANCE
FIGURE 2.3
Shriram Life Insurance is a private company and it was incorporated in the year 2005. And
it operations started in the year 2006. Shriram Financial Services Limited is having a Head
office at Hyderabad. And the partner is Sanlam Group. Mr. Casparus J H Kromhout is the
Managing Director, Chairman is MR. T. S. Krishna Murthy, Managing Director is Smt.
Akhila Srinivasan and Mr. Manoj Vijaya college. All over India there are 550 branches.

38
After the incorporation of the Company, Shriram Life Insurance has made profits
continuously for 3 years. This is the only private company in India which achieved
distinction performance. The motto of the company is to give variety of plans in the Life
insurance and also to provide solutions in wide locations. Financial planning through
mutual funds, Deposits, Life Insurance, General Insurance services started in the year
2006. Shriram Life Insurance is the most profitable made in India in the first seven years
of operations. Shriram Life Insurance Company has made more than 40% earnings by
providing life insurance to AAM AAMI. They are particularly from Rural areas. Shriram
Life Insurance company is efficiently using its resources and its cost of operation is very
less. Shriram Life Insurance started its Digital Marketing in the year 2017. In the year
2018-19 Shriram Life Insurance has growth of 11% in Business Premium.

39
FIGURE 2.4
(Source: Annual Report 2018-19)

40
2.3 THE VISION AND MISSION STATEMENT:
Reaching out to the “Common Man” with the more varieties of products and
services which would be helpful to the common man in his path of prosperity.
CEO of Shriram Life Insurance:
Mr. Kromhout CEO of Shriram life assurance . With over 25 years of experience,
Mr. Casparus Kromhout is currently the director and CEO of Shriram Life
Insurance, an edge which he has held since December 2015. Having begun his career in
South Africa in 1991, he worked as an Industrial Engineer with Iscor Mining (Kumba)
where he focused on optimization projects and business cases for brand spanking new
mine development.
He joined the life assurance industry with the chance to be a part of the massive
strategic program to re-engineer a number of Sanlam’s processes and policy
administration systems. He worked as a Business Consultant and Project Manager
with both Sanlam and Old Mutual, delivering multiple strategic projects. He later
focused on project portfolio value management which incorporates value tree work,
concept development, business case governance and benefit realization. Early 2010
Sanlam requested Mr. Kromhout to require the COO assignment with Shriram Life
Insurance in Hyderabad; where he has been supporting and building the
organizational capabilities of this company, which is extremely successful in
profitably reaching bent a really tough market segment where the loss of a
breadwinner can have disastrous financial impacts on the family.
Based on his understanding of the insurance business of a matured life insurer like
Sanlam and therefore the hands on experience in nurturing and developing the

41
operations functions of Shriram life assurance Co Ltd (SLIC), he was the proper
choice for the position of the CEO.
Apart from being an exquisite person , his main strengths dwell ability to think ahead.
He never shies faraway from taking over new and innovative ideas; and executes them
during a practical and planned way. As a CEO Mr. Kromhout has been instrumental in
developing and executing strategy and is leading the drive towards further innovation,
the utilization of digital technologies and strategic ecosystem partnerships to expand
the reach and business growth of SLIC.
PARTNERS OF SRIRAM LIFE INSURANCE
SANLAM
Mr. Johan van Zyl, Chairman of SanlamGroup. Sanlam may be a South African
financial services group headquartered in Bellville, Western Cape, and listed on the
Johannesburg stock market and therefore the Namibian stock market . Established in
1918 as a life assurance company, Sanlam Group has developed over time into a
diversified financial services business.Through its business clusters – Sanlam Personal
Finance, Sanlam Emerging Markets, Sanlam Investments, Sanlam
Corporate and Sanlam – the group provides financial solutions to individual and institutional
clients across all market segments. The group's areas of experience include insurance, financial
planning, retirement, trusts, wills, short-term insurance, asset management, risk management,
capital market activities, investment and wealth. The group operates in South Africa , Namibia,
Botswana, Swaziland, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Ghana, Nigeria,
Mozambique,
India, Malaysia and therefore the UK and has business interests within the US, Australia
and therefore the Philippines. it's a stake in leading global micro-insurance specialists;
UK- based Micro-Ensure Holdings Limited, which features a footprint across Africa and
India servicing quite 10 million enrolled clients.

42
Piramal Group
Mr. Ajay Piramal, Chairman of Piramal Group. The group calls themselves a worldwide
, diversified conglomerate focussed on doing business with purpose. Valued at US$ 10
Billion, Piramal Group may be a global business conglomerate with interests in pharma,
Financial Services, Information Management, Glass Packaging and land . With 76,000+
staff and over 100 million customers, Piramal operates in India, US, UK, European
Union , Japan and South Asia.The Group’s flagship company, Piramal Enterprises
Limited, generates quite 51% of its revenues from international markets. Piramal
Foundation runs sustainable development programs across healthcare, education and
water resources. Piramal Sarvajal and Piramal Swasthya, initiatives of the inspiration ,
are case studies at the Harvard graduate school . By 2018, Piramal tends to carve out
the financial services business from Piramal Enterprises, which is dominated by the
healthcare business. After selling his stake in Vodafone, Piramal spent Rs. 2,014 crore
to shop for a 20% stake in Shriram Capital Ltd, an arm of the Chennai-based Shriram
Group. the acquisition was made additionally to a Rs. 1,636 crore investment in Shriram
Transport Finance Co. Ltd, for a 9.9% stake. Mr. Ajay Piramal also is the Chairman of
Shriram Group.
HIGHLIGHTS OF SHRIRAM life assurance
• Shriram Life has quite 528 branches with over and above 1.45 crore customers. ∙ Shriram
Life clocked Rs.1020 crore gross premiums in 2015-2016.
• the corporate features a network of 609 offices and 75,000 agents across India.
• Shriram has an impressive Underwriting Record and has awarded as ‘Underwriting
Initiative of the Year.’
• Shriram life assurance generates quite 40% business through providing insurance to
country and weaker segment individuals - ‘AAM AADMI’ of India.
• The founding father of Shriram Group, Mr R Thyagarajan, has been awarded with Padma
Bhushan award.

43
2.5 BENEFITS OF SHRIRAM LIFE INSURANCE
• Virtual Plans: It reduces paper work. It is economical which

means it is cost-effective.
• Variety of Policies: It offers variety of policies in both online

& offline.
• Tax benefits: It is beneficial for the tax on premiums &

payouts. It is also exempt from Sec 80C.
• Flexibility: It has a very good pay-out. It protects financially

to their family and premium is also very flexible.
• ∙ Financial Protection: Plans which provide financial

protection to your family. ∙ Flexibility: Flexible premium and
payout options.
∙ Online plans: Specifically designed online plans that costs lower
∙ Variety: Offers a variety of online as well as offline plans
∙ Customer Service: Offers good, hassle-free pre-sales and post-sales services.

• ∙ Tax benefits: Save tax on all premiums and payouts under
the section 80C and 10(10D) of Income Tax Act, 1961
2.8 Documentation to apply for Shriram life Insurance
The required information of the document that should be provided to apply for
Shriram life Insurance is given in the website of Shriram life Insurance.
Official website of this company is shriramlife.com/download-forms.
• Proposal Form: This form should be filled by the person who is getting
insured. It can be filled in online or offline which means written in offline

44
to assist insurer to be protected from risk. The format which should be

filled has been approved by the authority.
• Know your customer (KYC): Customers information should be confidential

so that customers will have more reliability on the company. The
independent information or documents will help in identifying customers.
The KYC documents are, Aadhar card, , Driving license, MNREGA Job
card, Pan card, Voter ID. It is given to rural working people and farmers.
Full form of MNREGA is Mahatma Gandhi National Rural Employment
Government Authority.
Objective of KYC:
1. To Stop money laundering.
2. To Prevent risk in future.
3. To stop terrorist financing.

45
2.9 Market STP model, Full form of STP is Segmentation, Targeting &
Positioning
FIGURE 2.5

46
2.10 SWOT ANALYSIS OF SHRIRAM LIFE INSURANCE
STRENGTHS
* Policy is covered to all types of societies.

* They have expertise in foreign group such as they are partnered with Sanlam Group.
* They have across 750 offices in India and 30 lakh customer base and 75000 loyal agent
* Policies with consideration for social Impact
WEAKNESS
* They have low marketing and don't have brand presence when compared to other
competitors.
* When compared to big companies they have poor IT Infrastructure
* Insurance companies have a poor image when it comes to payment of dues Opportunity
OPPORTUNITIES
• They have rural market growth and good

• reach of AAM AADMI. Aam
Aadmi is where they are focusing on the growth by taking life insurance whom it
needs the most.
• To target the youths of urban who are earning to look for investments.
Selling to an existing customer through financial services like banking.
THREATS
• There will be entry from new competitors.
• There may be new rules and regulations from the

Government and IRDAI

47
2.12 Products of Shriram life Insurance
• term plan Child plan
• Online term plan
• Golden premier saver
• Saving plan
• Super income plan
• Unit linked insurance plan
• Growth plus plan
• Shriram life assured income plus
• Assured advantage plus
• Genius assured advantage plus
• Comprehensive cancer care
• ∙ Shriram life my spouse

49
EXPLANATION OF TWO PRODUCTS WHICH WE HAVE LEARNT IN THIS

INTERNSHIP
1. SUPER INCOME PLAN
Super income plan is a plan which helps to satisfy the financial needs and
wants of individual and their family.
KEY FEATURES
• There is a supplementary protection through riders
• It has a wide range of premium paying term
• It guarantees maturity sum assured till 75 years
• There is also flexibility extended in terms of premium paying term i.e., it is

allowed to increase or decrease the payment.
• It guarantees monthly income till 75 years
• Life is covered till 75 years.
SPECIFICATION
• Policy term is 75 minus the age of entry
• Premium paying term is 10-25 years
• Age – Minimum is 25 years & maximum is 50 years
• Minimum premium is Rs. 30000 and Maximum there is no limit.
• Sum assured is 10 times the annual premium
• Maturity age is 75 years fixed

50
Benefits:
• Maturity Benefit – Additional bonus will be given that is 5 times the annual
premium paid as lumpsum amount if the life insured is alive till the maturity
age 75 and also if the policy is still in force.
• Super income benefit- Fixed monthly amount will be given after the premium
paying term which ends at the age of 75 years or till his death if the insured
person is alive till the end of the premium paying term and the policy is still
in force.
• Death benefit – when the insured person dies during the premium paying term
and if the policy is in force then an amount of sum assured or the 105%of
premium for more than 10 years this benefit is given, so in this whichever is
higher will be given as lumpsum amount to the nominee and the policy will
be terminated
2. Assured income plus:
This is also one of the plans where an individual gets benefit for the 5 equal
installments after maturity. This benefit is given for those who are willing to pay
the premiums for 5 years.

51
KEY FEATURES
• It is a premium for those who are willing to pay it for 5 years
• It also assures income for 5 years.
• There is also an additional benefit through riders.
• Here the benefit you gain is higher than the premium the person pays.
• It covers insurance for 10 years
Benefits:
• This policy is considered as saving tool
• Returns are doubled based on the premium paid by the insured.
• It is a short-term policy
• It is considered as risk free policy.
Specifications:
• Policy term is like 5 years the premium should be paid and 5 years is
relaxation period. So, the whole policy term is for 10 years.
• Sum assured – Above 55 years it is it is 7 times the yearly premium paid and
for below 55 years it is 10 times the yearly premium paid
• Age - Maximum age is 65 years and Minimum is 8 years.

52
( FIGURE 2.6 )
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

53
ULIP or Growth plus plan
Investment + Protection
(Stock market + insurance)
Policy term- 10 years or 15 to 20 years
Entry age- 1 month to 60 years Maximum
maturity age- 70 years Options
∙ Single- 50k (one time)
∙ Regular- 30k annually
∙ Limited- 60k for 6 years
Death benefits
I. Sum assured + fund value
II. Sum assured or fund value (whichever is higher)
Observation
The core purpose of this study is to combine the qualitative and empirical results from the
data interpretation. This study will provide answers to primary research questions. The
objective is to highlight the contributions of research to the development of knowledge. The
consumer buying behaviour towards life insurance according to digital impact in life
insurance has 120% faster consumer decision making and 30% growth in product search
online. There are new technologies that are changing business i.e., internet of things, block
chain, machine learning, chatbots, advance data analytics. Shriram life insurance company
has very good distribution channel that is group insurance, direct sales, digital business
channel, retail agency model, bancassurance.

54
Achievements and honours
Digital SO won the Yodha contest with business head and team members.
National awards and honours

• Shriram life insurance company digital team won 2 awards in drivers of
digital @Mumbai 2018
• Mr. Casparus, MD & Mr.Manish Jha, Business head- digital business

55
CHAPTER – III
RESEARCH METHODOLOGY

56
3.1 Research Methodology
Research methodology help us to understand the research methods along the logic
behind the methods we use within the context of our research study and explain why
we are employing a particular method or technique. For recuperating understanding of
the investment perception and selection behavior of the customers towards products of
life assurance companies. the character of study is qualitative. The methodology that's
followed includes primary data collection. Primary data collection is includes an easy
questionnaire. Such questionnaire is help us to determine the reach of Shriram Life
Insurance products among people, the notice of insurance as a platform for investment
and customer’s preference regarding life assurance companies.
It is the great plan of the sequence of operations that a researcher intends to hold bent
achieve the specified research objective. it's an idea of action to be administered in
reference to a proposed research work. this study must sketch the investment
perception and customer behaviour regarding products of Shriram life assurance
Company
3.2 Objectives of the study
• To ascertain the different Life Insurance schemes offered by Shriram Life Insurance
company
• To evaluate the consumer satisfaction regarding where is insurance services offer by

Shriram Life Insurance company
• How the polices are suitable to the requirements of different investors
• To provide suggestions in the theories of sum assured and premium amount over the type
span selected for study

57
3.3 Sources of Data Collection
The task of knowledge collection begins after a search problem has been
defined. during this study data was collected through primary data source.
Primary Data: These are the info which are collected from some primary sources
i.e., a source of origin where the info generate. These are collected for the
primary time by an investigator or workplace for any statistical analysis.
Primary data is employed to seek out the answers of the objectives. The task of
knowledge collection begins after a research problem has been defined and
research design/plan chalked out. during this particular study primary data has
been collected from 208 respondents while keeping in mind the objectives of
the study. the first data was collected through a self administered questionnaire
that contained questions concerning the objectives of the study. The
questionnaire contains certain question regarding awareness level and therefore
the attributes that consumer consider while buying a life assurance policy.
3.4 Sampling Technique
Sampling is the most important factor which helps a lot while conducting the
research. Non- probability sampling technique has been used while
conducting this study. This technique is not so expensive. It is a simple
technique and easy to execute.

58
3.5 Sample Design
Sample design acts as a guideline that serves as the basis for the selection of survey
sample. It also serves as a plan to execute sampling technique.
3.6 Sample Size
The presume study is carried on at selected year ofd study Shriram Life Insurance
private limited
3.7 Data analysis and interpretation
The data collected to Secondary source is analysed by applying statistical

techniques such as tables, graphs and trend analysis

59
Demographic characteristics:
I. Gender
FIGURE 3.1
GENDER PERSON IN NUMBERS PERSON IN %

MALE 117 56.2%
FEMALE 91 43.8%
TOTAL 208 100%
GENDER
44% MALE
56% FEMALE
This is the gender of respondents which is taken into the study of consumer buying
behaviour with Shriram life Insurance. It indicates that Male candidates are the
highest respondent to the study.

60
II. Age
FIGURE 3.2
AGE PERSON IN NUMBERS PERSON IN In Percentage

(%)
BELOW 30 114 54.8%
31-45 84 40.4%
46-60 7 3.6%
60 & ABOVE 3 1.2%
TOTAL 208 100%
AGE
1.2
3.6 , 4, %
1%
BELOW 30
31-45
40.4, 40%
54.8, 55% 46-60
60 & ABOVE

61
In this study of a survey, age group of respondents are taken. This chart shows that
below 30 age group has responded the highest in this study.
III. Occupation
Occupation In Percentage (%)

Service 45%
Business 23%
Retired 2%
Student 29%
MNC 1%
Occupation
1%
Service
29%
Business
45%
Retired
2% Student
MNC
23%
This is the occupation taken in this survey. It says that service and students
comprise the highest percentage of response to this study.

62
IV. Income level
FIGURE 3.4
Income level PERSON IN NUMBERS PERSON IN In Percentage
(%)
10000-15000 56 29.3%
15000-25000 88 46.1%
25000-50000 33 17.3%
50000& above 14 7.3%
Income Level 191 responses
7%
30% 10000-15000
17%
15000-25000
25000-50000
50000 & above
46%
This chart shows the income of respondents in this study. This study tells that
15000-25000 per month of those people comprises the highest percentage of the
response this study.

63
1. Awareness about Shriram life Insurance
FIGURE 3.5
Response PERSON IN NUMBERS PERSON IN In Percentage

(%)
Yes 154 74%
No 54 26%
Aware about Shriram life insurance

208 responses
26%
YES
NO
74%
This study shows that maximum number of people know about Shriram companies. There
are only few people who don’t know about this company.

64
2. Awareness about the available investment options
FIGURE 3.6

(%)
Yes 94 74%
No 14 7%
Have some Knowledge 100 48%
Awareness about the available investment

options
208 response
Yes
48% 45% No
Have some Knowledge
7%
This chart indicates that many people know about investment options.

65
3. For new policy will people choose Shriram Life

Insurance?
FIGURE 3.7

(%)
Yes 61 29%
No 52 25%
Maybe 95 46%
For new policy will people choose

Shriram Life Insurance?
208 Response
29% Yes
46% No
Maybe
25%
In this survey, it is clear that many of them are not sure whether to buy Shriram life
insurance or not.

66
4. PEOPLE WHO HAVE LIFE INSURANCE POLICIES
FIGURE 3.8
Insurance policy PERSON IN NUMBERS PERSON IN In Percentage

(%)
Yes 198 95%
No 10 5%
Do you have insurance Policy?

208 response
5%
Yes
No
95%
In this study we get to know that how many people have life insurance policies. It
indicates that many of the respondents are covered through life insurance policies.

67
5. Why do you want to invest in insurance?
FIGURE 3.9
Response Person in Numbers In Percentage (%)
Returns 67 32%
Need to have tax 43 21%
Scheme 6 3%
Other benefits like 92 44%
Investment+insurance+tax
Why do you want to invest in

insurance?
208 response
Returns
32% Need to save tax

44%
Scheme
3% 21%
Other benefits like
investment+insurance+tax
This chart indicates the reason why people want to invest in insurance. Many of the
respondent feel that they are saving their beloved family person’s life. They also feel
that it is beneficial and risk free.

68
6. Perception about the insurance
FIGURE 3.10
Perception Person in Numbers In percentage (%)
Saving tool 91 44%

Tax saving device 44 21%
Tool to protect the family 73 35%
What is your perception about the

insurance
208 response
Saving tool
35%
44% Tax saving device
Tool to protect the fanily
21%

69
Chart Title
6
5
5
4.4 4.5
4.3
4
3.5
3
3 2.8
2.4 2.5
2 2
2 1.8
0
Category 1 Category 2 Category 3 Category 4
Series 1 Series 2 Series 3
Person in Numbers In percentage (%)

Saving tool 96 44.2%
Tax saving device 42 21.2%
Tool to protect the family 70 34.6%
As mentioned above many people insurance is a saving tool. This is the perception about the
insurance.

70
7. Do you think insurance agents/ online portal give authentic information about
the policy?
FIGURE 3.11
Response Person in numbers In percentage (%)
Yes 171 82.2%
No 37 17.8%
This indicates that agents or online portal give proper and correct information about
the policy like rules and regulation, policy tracking etc. People feel that they give
proper and exact information.

71
8. How do you clarify your query?
FIGURE 3.12
Person in numbers In percentage (%)
Advisor 63 30.3%
Customer care 90 43.3%
Company website 15 7.2%
Branch manager 40 19.2%
This chart shows that people clarify their query by advisor and branch manager.

72
9. Like to pay the Premium
FIGURE 3.13
Period Person in numbers In percentage (%)
Yearly 59 28.4%
Half yearly 7 3.4%
Quarterly 76 36.5%
Monthly 66 31.7%
In the above diagram it shows that insurer like to pay the premium yearly.

73
10. Rate the overall satisfaction with the insurance policy.
FIGURE 3.14
Aforesaid diagram shows the overall satisfaction of the customers with the
insurance policy. Major respondents of the opinion that they are satisfied with their
insurance policy. Few people are not satisfied with insurance policy.

74
3.8 RESULTS
Below is the summary of my survey.
1. 48.1% of respondents have few knowledges about investment options

available in the market. 45.2% of the respondents have full knowledge about
investment options which are available in market. And 6.7% people do not
have any knowledge of any investment option.
2. 73.6% of the respondent are well aware of Shriram Life Insurance. In other
words, it is understood that Shriram Life Insurance is performing much better.
3. Many respondents of the opinion that they are totally confused whether to buy
Shriram Life Insurance as the new insurance policy. But 29.3% of respondents
of the opinion that they are ready to select Shriram Life Insurance as their new
Insurance policy.
4. About 44.2% and 34.6% of the opinion that Insurance is nothing but a saving
tool to protect their family members than the as a Tax saving tool.
5. 44.2% of respondents are of the opinion that Insurance is nothing but

Investment, Insurance and also a Tax saving options. 31.7% of the
respondents of the opinion that insurance as returns options. And further
20.7% of the opinion that it is a Tax saving tool. Therefore, we can say that
Insurance as tax saving, investment and also protection tool.

75
6. 95.2% of the respondents have taken Life Insurance Policy as a protection tool
as well as investment tool. And just 4.8% have not taken any Life Insurance
Policy.
7. 82.2% of the respondents of the opinion that agent or Portal services are
providing correct information.
8. About 43.3% like to take advise to clarify their queries. 30.3% of the
respondents like to take clarification from the Branch Manager. But very few
people would like to clarify their doubts with the customer care officers.
9. 36.5% respondents would like to pay their premium by yearly. 31.7%

respondents would like to pay their premium by half yearly.
10. It is seen from the above analysis that only 60.6% of respondents are satisfied
with their insurance policy. 26.9% of the respondents are neutral, in other
words they are satisfied nor dissatisfied.

76
CHAPTER – IV
Key Learnings and Recommendations Learning outcome

77
The most important things that we gain from an internship is newfound knowledge.
This helps us to know how to complete the tasks that are relevant which helps us
design our career path and sharpening the skills that we already possess.
Many students feel an internship mainly consists of making coffee and running
errands for superiors all day, but that is not true. And really, it shouldn’t be like that.
An internship is an opportunity to test out all the skills that you developed in
varsity/college and see how they work in the real world.
In this internship we get to know about digital marketing and how it affects business
and influence customer decision making.
Internship digital marketing consists of
• Email marketing
• Ad words
• Blogs
• Websites
• Social media
• Digital analytics

78
The company has various departments that works efficiently and make sure
optimum utilization of resources has been done. Those departments are:
• Sales
• IT
• Administration
• Investments
• Marketing
• Actuarial
• Finance & Accounting
• Operations & underwriting
In this internship I also learnt about mutual funds in depth. The value of
mutual fund company depends on the performance of the securities it decides
to buy. There is also a major difference from investing in shares of stocks and
investing in shares of mutual funds. This is the reason why price of a mutual
fund is called as net asset value per share which is expressed as NAVPS.
I also learnt about systematic investment plan. It is a plan where investors

make regular, equal payments into a mutual fund, trading account, or
retirement account.
It also allows investors to save regularly with smaller amount of money while
benefiting from long term.
Most of the brokerages and mutual fund companies offer SIPs.

79
This internship was also helpful in getting knowledge about how GST is
implied on life insurance premium. GST rate will vary depending on the plan
purchased. 18% is charged on basic premium for a term insurance policy. For
a traditional endowment insurance plan, you need to pay GST of
4.5% in the first year and 2.5% in the second year.
Recommendation
Shriram life insurance company has a very good technology to provide quality
services to the customers and is very flexible in terms of policy and also in terms of
premium paying term i.e customers are allowed to increase or decrease the premium.
It has variety of policies and customers can also get most out of it. customers will not
only get benefit through the policies which they offer but also get supplementary
benefit through riders. It guarantees maturity sum assured till 75 years. There are
various insurance plans that helps customers to fulfil their financial needs and wants.
This also help them to retain their customers. There are also various marketing
strategies that are implemented according to the change in economic scenarios.
Shriram life insurance company has one speciality that it give various premium slabs.
In other words, there are policies which offer for lesser term period. Or the other one
is with lesser premium. There are various payments models like PPM or CPM, CPA
etc, which are collectively called PPC.

80
Findings
1. Shriram life insurance company has an excellent organizational structure.
2. Shriram life insurance company employees selected professionals not just for their
knowledge and experience but for their zeal to make a difference to the world of
Insurance sectors
.
3. Shriram life insurance company focuses on the excellent service quality of its employees
who are working up to the required standards of the market.
4. Shriram life insurance company is focused towards developing new strategies of

marketing, improving existing service as well as customer support systems.
5. Shriram life insurance company being a good corporate citizen is an integral part of
Shriram Group.
6. Shriram life insurance company gives insurance policies at affordable prices.
7. Shriram life insurance company in a humanitarian effort to support their customers.
8. Shriram life insurance company made a breakthrough in reducing the premium which are
affordable even for the poor class.
Shriram Life Insurance is in the group of Sanlam which is one of the leading financial
service company based in Cape Town, South Africa. Sanlam’s associated with
Shriram Group since 2005. Since then the relationship between the two companies
has deepend very significantly

81
Sanlam having a stake of 23% in Shriram Life Insurance. Shriram Group companies
having branches all over India and there are 2600 branches across India. And the
company ha employed more than 60000 employees. Shriram life Insurance company
is having a motto of simplifying the process is excellent. Their hassle frees service
has made them to attract more customers. Claim settlements are done very efficiently.
All these services are given in the interest of Customers
Shriram Life Insurance is in the group of Sanlam which is one of the leading financial
service company based in Cape Town, South Africa. Sanlam’s associated with
Shriram Group since 2005. Since then the relationship between the two companies
has deepend very significantly. Sanlam having a stake of 23% in Shriram Life
Insurance. Shriram Group companies having branches all over India and there are
2600 branches across India. And the company has employed more than 60000
employees.
Shriram life Insurance company is having a motto of simplifying the process is

excellent. Their hassle frees service has made them to attract more customers. Claim
settlements are done very efficiently. All these services are given in the interest of
Customers.

82
Figure 4.1
In case of the death of the insured person, the nominee can approach the nearest
Branch of Shriram Life insurance and they can submit the mandatory documents for
registration of death claim. In this way they are showing social responsibility.
There are many instances where the customers have received the claims within 48
hours.
Claims have been processed within 48 business hours for more than 3 years from the
date of inception. But to do this process the insured person or nominee has to submit
all the relevant documents.

83
In the interest of the customers the Shriram Life insurance company has Grievance
cell, so that any one can raise their complaint or grievance. For this purpose, they
have toll free number 1800-3000-6116. Any customer who are having complaint or
query or grievance can write to Customer care Department, Shriram Life Insurance
Company Limited, Head office Ramky Selenium, Plot No. 31 & 32, Beside Andhra
Bank Training Centre, Financial District, Gachibowli, Hyderabad -500032. And
their phone numbers are 040-23009400.
3.9 CONCLUSION
Insurance is tool to safeguard our future. Shriram Life Insurance is the only company who made
continuously made profit from the date of incorporation. This is definitely a distinctive
achievement. Comparing with the 7 years of operational data, Shriram Life Insurance is the most
profit-making company in the life insurance industries. It also increased its image. The specialty
of Shriram Life Insurance is that they have low premium product and also premium paying term
is very less compare to their competitors. Shriram Life Insurance also have an option to protect
against the disability and will compensate in case of critical illness or surgeries.
Day by day competition is increasing in the Insurance industries. Customers’ needs different
and flexible options with a customize option. It is required to fulfil their needs. In today’s world
customers are changing for Insurance. And people are interested to invest money in insurance
policies and to make it as a tool to save tax. Insurance also gives them financial security. Many
of the customers are prefer to clarify their doubts with the manager or insurance advisors. I
conclude that the consumer needs are changing for insurance nowadays, and is also said that
people are moving towards the Insurance sector that it is not only for tax saving but also for
financial security, risks, uncertainty etc. Most of the consumer prefers to clarify their doubts
through their advisors and branch manager where they need to provide proper and authentic
information about the policy.

84
Bibliography
http://www.shriramcapital.com/about-us.html
https://www.policyx.com/lifeinsurance/companies/
https://en.wikipedia.org/wiki/Insurance_in_India
https://www.shriramlife.in/slp/PublicPdf/2018-2019/2018-
2019%20Annual%20Report/Annual%20Report%20FY%202018-19.pdf
https://shriramlife.com/
https://www.coverfox.com/life-insurance/life-insurance-companies/shriram-life-
insurance/ https://shodhganga.inflibnet.ac.in/bitstream/10603/50603/5/ch-2.

85
VIJAYA COLLEGE (1827), R.V.ROAD, BANGALORE-560004

POST GRADUATION DEPARTMENT OF COMMERCE
PROJECT REVIEW REPORT
Name of the Project Guide: Student Reg.No:

Project Starting Project Completion Date
Name of the Student: Date
Project Title:
Signature
Chapter Comments by the Student
No. Date Progress of the Project Project Guide Guide
Chapter I
Chapter II
Chapter
III
Chapter
IV
Chapter
V
Blue Print
of the
Report
Final
Report
86

Prathibha

Uploaded by

Copyright:

Available Formats

You might also like

Prathibha

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Prathibha

Uploaded by

Copyright:

Available Formats

A PROJECT REPORT ON

“A STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS LIFE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

MASTER OF COMMERCE IN ACCOUNTING AND TAXATION

I, PRATHIBHA M student of IV Semester M.Com, Vijaya College, RV Road, Basavanagudi,

PLACE: BANGALORE (Signature of the guide)

I am very grateful to the management department of Vijaya College, RV Road,

Place: Bengaluru (CM192813)

Executive Summary iii

Chapter I Introduction and Industry Overview

Industry Over view

Chapter II Company Overview

The Vision and Mission Statement

Market STP Model

Chapter III Research Methodology

Objectives of the Study

Sources of Data Collection

Data Collection, Interpretation and Analysis

Expectations and Achievements

Findings and Conclusions

Sl. No. Table No. Title of table Page No.

1 1.1 List of Life Insurance companies in India

2 1.2 Different private players in the life insurance sector

2 2.1 SWOT Analysis of Shriram life insurance company

3 NIL NIL NIL

Sl. Figure No. Title of Figure Page No.

1 1.2 Life insurance and Non- Life Insurance

1 1.3 Types of Insurance

1 1.4 Indian scenario

1 1.5 Growing share of private sector

1 1.6 Life Insurance market

2 2.2 The milestone of Shriram group

2 2.3 Shriram Life Insurance

2 2.4 Shriram Life Insurance

2 2.5 STP Model

3 2.6 Assured income plus

3 3.4 Income level

3 3.5 Awareness about Shriram life Insurance

3 3.6 Awareness about the available investment options

3 3.7 For new policy will people choose Shriram Life

3 3.9 Why do you want to invest in insurance

3 3.10 Perception about the insurance

3 3.12 How do you clarify your query?

3 3.13 Like to pay the Premium

3 3.14 Rate the overall satisfaction with the insurance

VIJAYA COLLEGE R V ROAD BANGALORE-04

OVER VIEW OF INDUSTRY

VIJAYA COLLEGE R V ROAD BANGALORE-04

INVESTOR; An individual who commits money to investment products with the

Perception; A conscious or unconscious state of awareness or understanding of one’s

VIJAYA COLLEGE R V ROAD BANGALORE-04

Stages of this training program

VIJAYA COLLEGE R V ROAD BANGALORE-04

1.1 Meaning of Insurance

Insurance is providing protection to an individual or entity which is represented by means of

VIJAYA COLLEGE R V ROAD BANGALORE-04

c) Its not gambling or charity: The uncertainty is changed to certainty by insuring

d) Huge number of insured people: It is essential to insure larger number of people or