LIFE INSURANCE

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

Shaikh Afroze Faiyaz Ahmed

Under the Guidance of

Prof. Akshata Pai

Vivek Education Society’s

Vivek College of Commerce

Affiliated to University of Mumbai

Siddharth Nagar, Goregaon West

Mumbai-400104

March 2022 (A.Y. 2021-2022)

 LIFE INSURANCE

A Project Submitted to

University of Mumbai for partial completion of the degree of

Master in Commerce

Under the Faculty of Commerce

By

Shaikh Afroze Faiyaz Ahmed

Under the Guidance of

Prof. Akshata Pai

Vivek Education Society’s

Vivek College of Commerce

Affiliated to University of Mumbai

Siddharth Nagar, Goregaon West

Mumbai-400104

March 2022 (A.Y. 2021-2022)

 Vivek Education Society’s

Vivek College of Commerce

Affiliated to University of Mumbai

Siddharth Nagar, Goregaon West

Mumbai-400104

CERTIFICATE

This is to certify that Ms. Shaikh Afroze Faiyaz Ahmed has worked and duly completed her
Project Work for the Degree of Master in Commerce under the faculty of Commerce in the
subject of Project work her project is entitled “ Life Insurance” undermy supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and investigations.

Prof. Akshata Pai

COLLEGE
SEAL

Name & Signature of

Guiding Teacher

Signature of External Examiner:

Date of Submission:
 DECLARATION BY LEARNER

I the undersigned Ms.Shaikh Afroze Faiyaz Ahmed hereby, declare that the work embodied
in her Project work titled “Life Insurance” forms my own contribution to the research work
carried out under the guidance of Prof. Akshata Pai is a result of my own Research Work and has
not been previouslysubmitted to any other University for any other Degree / Diploma to this or any
other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the Bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with rules and ethical conduct.

Shaikh Afroze Faiyaz Ahmed

Name and Signature of Learner

Certified by

Name and Signature of Guiding Teacher

Prof Akshata Pai

 ACKNOWLEDGEMENT

To list who have helped me is difficult because they are so numerous, and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr. Vijetha Shetty for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Prof Pradeep Hathi for his moral support
and guidance.

I would also like to express my sincere gratitude towards my project Guide Prof. Akshata Pai
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly and directly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.
 INDEX

SR. NO. PARTICULARS PAGE NO.

1 CHAPTER - 1 INTRODUCTION
1.1 History of Insurance 1
1.2 Meaning of Insurance 2-3
1.3 Life Insurance 3-4
1.4 Top 10 Insurance company in india 5
1.5 Introduction of LIC 6-7
1.6 History of LIC 8-10
1.7 Introduction of TATA Group 11-13

2 CHAPTER 2 - RESEARCH METHODOLOGY

2.1 Objectives of the study 27
2.2 Scope of the study 27
2.3 Limitation of the study 28
2.4 Sample Size 28
2.5 Data Collection 28

3 CHAPTER 3 - DATA ANALYSIS, INTERPRETATION & 29-43

PRESENTATION

4 CHAPTER 4 - CONCLUSION &SUGGESTIONS 44

BIBLIOGRAPHY 45

APPENDIX 46-48
 Chapter : 1
Introduction
1.1 HISTORY OF INSURANCE

The Indian life insurance industry has its own origin and history, since its
inception. It has passed through many obstacles, hindrances to attain the
present status. Insurance owes its existence to 17th century England. In fact, it
took shape in 1688 at a rather interesting place called Lloyd's Coffee House in
London, where merchants, ship-owners and underwriters met to discuss and
transact business. The first stock companies to get into the business of
insurance were chartered in England in 1720. The year 1735 saw the birth of
the first insurance company in the American colonies in Charleston. In 1759,
the Presbyterian Synod of Philadelphia sponsored the first life insurance
corporation in America for the benefit of ministers and their dependents.

Life insurance in its modern form came to India from England in 1818 with the
formation of Oriental Life Insurance Company (OLIC) in Kolkata mainly by
Europeans to help widows of their kin. Later, due to persuasion by one of its
directors (Shri Babu Muttyal Seal), Indians were also covered by the company.
However, it was after 1840 that life insurance really took off in a big way.
By1868, 285 companies were doing business of insurance in India. Earlier
these companies were governed by Indian company Act 1866.

By 1870, 174 companies ceased to exist, when British Parliament enacted

Insurance Act 1870. These companies however, insured European lives. Those
Indians who were offered insurance cover were treated as sub-standard lives
and were accepted with an extra premium of 15% to 20%. By the end of the
18th century, Lloyd's had brewed enough business to become one of the first
modern insurance company.

1
1.2 MEANING OF INSURANCE

Life is a roller coaster ride and is full of twists and turns. Insurance policies are
a safeguard against the uncertainties of life. As in all insurance, the insured
transfers a risk to the insurer, receiving a policy and paying a premium in
exchange. The risk assumed by the insurer is the risk of death of the insured in
case of life insurance.

Insurance policies cover the risk of life as well as other assets and valuables
such as home, automobiles, jewelry etc. On the basis of the risk they cover,
insurance policies can be classified into two categories:
(a) Life Insurance
(b) General Insurance

Life insurance products cover risk for the insurer against eventualities like
death or disability. Non-life insurance products cover risks against natural
calamities, burglary, etc.
Insurance is system by which the losses suffered by a few are spread over
many, exposed to similar risks. With the help of Insurance, large numbers of
people exposed to a similar risk make contributions to a common fund out of
which the losses suffered by the unfortunate few, due to accidental events, are
made good. Insurance is a protection against financial loss arising on the
happening of an unexpected event. Insurance policy helps in not only
mitigating risks but also provides a financial cushion against adverse financial
burdens suffered.

Insurance is defined as a co-operative device to spread the loss caused by a

particular risk over a number of persons who are exposed to it and who agree to
ensure themselves against that risk. Risk is uncertainty of a financial loss.
Insurance is also defined as a social device to accumulate funds to meet the
uncertain losses arising through a certain risk to a person injured against the

risk.

Insurance provides financial protection against a loss arising out of

happening of an uncertain event. A person can avail this protection by paying

2
premium to an insurance company. A pool is created through contributions

made by persons seeking to protect themselves from common risk. Any loss to

the insured in case of happening of an uncertain event is paid out of this pool.

Life insurance has come a long way from the earlier days when it was

originally conceived as a risk-covering medium for short periods of time,

covering temporary risk situations, such as sea voyages. As life insurance

became more established, it was realized what a useful tool it was for a number

of situations that includes temporary needs, threats, savings, investment,

retirement etc. Insurance is a contract between two parties whereby one party

agrees to undertake the risk of another in exchange for consideration known as

premium and promises to pay a fixed sum of money to the other party on

happening of an uncertain event (death) or after the expiry of a certain period in

case of life insurance or to indemnify the other party on happening of an

uncertain event in case of general insurance. The party bearing the risk is

known as the 'insurer' or 'assurer' and the party whose risk is covered is known

as the 'insured' or 'assured'.

1.3 LIFE INSURANCE

The insurance functions of life insurance companies deal with human life values.The

risk in life insurance is measured in terms of monetary value of the life. Man, within

himself, represents great worth that creates all utility in tangible property. After

nature, everything we have in this universe springs from man. Life value, therefore,

is the basic value. There is so much financial value on the human life. Ideas and

energy make money in our life and both come from man himself. Man is endowed

with highly intellectual ability and he makes untiring efforts for the betterment and

advancement of his life, which gives him the highest happiness and comfort, also

benefiting in that process all those who depend on him for economic security.

Insurance is an effective device which promotes stability, prosperity and happiness

3
to the individual and the society at large The money paid by the insured public by

way of premium does not remain idle in the coffer. World over, it is used for

promoting industries, business, commerce and developmental programs, particularly

in developing countries like India. Indirectly, the insured community contributes for a

noble cause – nation building activity.

It can, therefore, be said that insurance is a multi faceted tool in the hands of

mankind for a number of purposes. The people of the developed countries like the

US, the UK, and Japan have long back accepted the concept of insurance whole-

heartedly. 90% to 95% of insurable people of these countries are insured (in India it

is not more than 30% even on a liberal estimation). About 10% of the GDP of these

developed countries comes from insurance premium (in India it is a little over 4%).

Insurance as a business activity is a driver of economic development. Insurance is

an effective device which promotes stability, prosperity and happiness to the

individual and the society at large. Development and insurance are also

complementary to each other. Prudent men will realize the importance of insurance

and will accept it as an integral part of the way of financial planning in life.

4
 1.4 TOP 10 INSURANCE COMPANY IN INDIA

• 1) LIC Insurance Corporation Of India.

• 2) ICICI Prudential Life Insurance.

• 3) SBI Life Insurance.

• 4) HDFC Standard Life Insurance.

• 5) Max Life Insurance.

• 8) Reliance Nippon Life Insurance.

• 9) TATA AIA Life Insurance.

• 10) PNB Metlife India Insurance.

5
Main two companies I have focused in the project

• Life Insurance Corporation Of India

• Tata AIA life insurance

1.5 INTRODUCTION OF LIC

Life insurance is actually an agreement between the insured and the

insurer in which the policy holder accepts to pay regular premium to the

insurer. In return, the insurer guarantees monetary protection to the insured in

case of any accident or mishaps. If the insured dies in accident, financial help

is provided to his family members. Thus, life insurance is necessary as it

provides protection to not only you but also to your family in case of any

unwanted disaster.

A thriving insurance sector is very important to every modern

economy. Firstly because it encourages the habit of saving, secondly

because it provides a safety net to rural and urban enterprises and productive

individuals. And perhaps most importantly it generates long- term invisible

funds for infrastructure building. The nature of the insurance business is such

that the cash inflow of insurance companies is constant while the payout is

deferred and contingency related. This characteristic feature of their business

makes insurance companies the biggest investors in long-gestation

infrastructure development projects in all developed and aspiring nations.

This is the most compelling reason why private sector (and foreign)

companies, which will spread the insurance habit in the societal and

6
consumer interest are urgently required in this vital sector of the economy.

Opening up of insurance to private sector including foreign participation has

resulted into various opportunities and challenges in India.

7
1.6 HISTORY OF LIC

In India, insurance has a deep-rooted history. It finds mention in the

writings of Manu, (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya

(Arthasastra). The writings talk in terms of pooling of resources that could be

re-distributed in times of calamities such as fire, floods, epidemics and

famine. This was probably a pre-cursor to modern day insurance. Ancient

Indian history has preserved the earliest traces of insurance in the form of

marine trade loans and carriers’ contracts. Insurance in India has evolved.

over time heavily drawing from other countries, England in particular.

The process of insurance has been evolved to safeguard the interests

of people from uncertainty by providing certainty of payment at a given

contingency. Life insurance in its modern form came to India from England in

1818 with the formation of Oriental Life Insurance Company (OLIC) in

Calcutta mainly by Europeans to help widows of their kin. Later, due to

persuasion by one of its directors (Shri Babu Muttyal Seal), Indians were also

covered by the company. By 1868, 285 companies were doing business of

insurance in India. Earlier these companies were governed by Indian

company act 1866. By 1870, 174 companies ceased to exist, when British

parliament enacted insurance Act 1870. These companies were however,

insuring European lives. Those Indians who were offered insurance cover

were treated as sub-standard lives and were accepted with an extra premium

of 15% to 20%.

First Indian Company -Pioneering efforts of reformers and social workers

like Raja Ram Mohan Ray, Dwarakanath Tagore, Ramatam Lahiri, Rustomji
8
Cowasji and other led to entry of Indians in insurance business. First Indian

insurance company under the name “Bombay Life Insurance Society” started

its operation in 1870, and started covering Indian lives at standard rates.

Later “Oriental Government Security Life Insurance Company”, was

established in 1874, with Sir Phirozshah Mehta as one of its founder directors

and later emerged as a leading Indian insurance company under the name

“Bombay Life Assurance Society” started its operations in 1870.

Pre-Independence Scenario -With the patriotic fervour of Non-Corporation

Movement (1919) and Civil Disobedience Movement (1929), number of Indian

companies entered the insurance arena. Eminent figures in political area like

Mahatma Gandhi and Pandit Nehru openly encouraged Indians to enter the

fray. In 1914 there were only 44 companies; by 1940 this number grew to

195. Business in force during this period grew from Rs.22.44 crores to

Rs.304.03 crores (1628381 polices). Life fund steadily grew from Rs.6.36

crores to Rs.62.41 crores. In 1938, the insurance business was heavily

regulated by enactment of insurance Act 1938(based on draft bill presented

by Sir N.N.Sarcar in Legislative Assembly in January 1937). From here

onwards the growth of life insurance was quite steady except for a setback in

1947-48 due to aftermath of partition of Indian. In 1948, there were 209

insurances, with 712.76 crores business in force under 3,016, 000 policies.

The life fund by then grew to 150.39 crores.

Nationalization of Life Insurance (1956) - Despite the mushroom growth of

many insurance companies per capita insurance in Indian was merely

Rs.8.00 in 1944(against Rs.2, 000 in US and Rs.600 in UK), besides some

9
companies were indulging in malpractices, and a number of companies went

into liquidation. Big industry houses were controlling the insurance and

banking business resulting in inters looking of funds between banks and

insurance companies. This shook the faith of insuring public in insurance

companies as custodians of their savings and security. The Government of

India nationalized the life insurance industry in January, 1956 by merging

about 250 life insurance companies and forming Life Insurance Corporation of

India (LIC), which started functioning from 01.09.1956.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on

Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute

to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over

by the central government and nationalized. LIC formed by an Act of

Parliament. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the.

Government of India
10
1.7 INTRODUCTION OF TATA GROUP , AIA ,AIG TO AIA AND TATA AIA

• Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30
companies across ten verticals.

• The group operates in more than 100 countries across six continents, with a mission 'To improve the quality of
life of the communities we serve globally, through long-term stakeholder value creation based on Leadership
with Trust’.

• Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of
the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health,
livelihood generation and art and culture.

• In 2018-19, the revenue of Tata companies, taken together, was USD 113.0 billion (INR 792,710 crore). These
companies collectively employ over 720,000 people.

• Each Tata company or enterprise operates independently under the guidance and supervision of its own board
of directors. There are 28 publicly-listed Tata enterprises with a combined market capitalisation of about USD
160 billion (INR 11, 09,809 crore) as on March 31, 2019

• Companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer
Products, Titan, Tata Capital, Tata Power, Tata Advanced Systems, Indian Hotels and Tata Communications.

AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly
listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly owned branches and
subsidiaries in Hong Kong SAR, Thailand, Singapore, Malaysia, Mainland China, South Korea, the Philippines,
Australia, Indonesia, Taiwan (China), Vietnam, New Zealand, Macau SAR, Brunei, Cambodia, Myanmar, a 99 per cent
subsidiary in Sri Lanka, and a 49 per cent joint venture in India.

11
The business that is now AIA was first established in Shanghai a century ago in 1919. It is a market leader in the
Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its
markets. It had total assets of US$284 billion as of 31 December 2019.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services
including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits,
credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees
across Asia-Pacific, AIA serves the holders of more than 36 million individual policies and over 16 million
participating members of group insurance schemes.

AIA Group Limited is listed on the Main Board of the Stock Exchange of Hong Kong Limited under the stock code
“1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol:
“AAGIY”).

Tata AIG Life is now Tata AIA Life Insurance

Tata AIG Life Insurance is now renamed as Tata AIA Life Insurance Company. This comes three years after AIA
separated from American International Group (AIG) as part of a global deal.

AIG which is an American multinational insurance corporation suffered from a liquidity crisis in September 2008 and
has since then sold a number of its subsidiaries and other assets to pay off loans. Hong Kong based American
International Assurance (AIA) was a member of AIG and it separated from the AIG group in 2009

Tata AIA

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt.
Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s
presence as the largest, independent listed Pan-Asian life insurance group in the world spanning 18 markets in the
Asia Pacific region. Tata AIA Life has written retail new business weighted premium of Rs. 2,232 crores for the
financial year 2018-19. For the same period, the 13th month persistency of the company was at 83.3% and, the
individual death claims settlement ratio was 99.07%. One of the fastest growing companies in the Life Insurance
sector, Tata AIA Life is now ranked at no. 5, based on individual weighted new business premium.

12
1.8 BENEFITS OF BUYING FROM LIC LIFE INSURANCE COMPANY

• Industry leader: You are assured of being associated with a leader which has a technologically
advanced network to provide you the most advanced and efficient services.
• An array of plans: Innovative plans are designed to ensure the maximum benefit of the policyholder
and their family. LIC provides a complete basket of plans from Endowment plans to Money Back
plans cover to its customers.
• Easy claim procedure: LIC provides a simplified claim procedure. This is the reason perhaps why it
provided the highest percentage of Claim Settlement Ratio across the industry for the year 2015-16.
• Unmatchable customer support: The customer support of LIC is one of the best in the industry. It
provided 100% grievances settlement for the year 2015-16.
• Simplified process: Simplified processes, especially the online customer services are configured to
make life easier for the policyholders. You can get the complete detail of your policy sent on an
SMS.
• Most trusted: LIC is the most trusted insurance company with hundreds of recognitions and awards
including the likes of Golden Peacock Award-2015, India’s Most Trusted Brand-2015 and Brand
Icon Award among many others.

13
1.9 BENEFITS OF TATA AIA LIFE INSURANCE

• Avail tax benefits under section 80C and 10(10D) of the Income Tax Act, 1981
• Makes any individual right from 18 to 70 years of age eligible for applying for insurance covers
• Offers the flexibility to select from a wide range of comprehensive life, health and group insurance
plans, which can be customised to meet your unique needs
• Includes riders and add-on benefits on additional payment of premiums
• Provides flexible policy term and payment of premiums on monthly, quarterly, half-yearly and yearly
basi
• Includes the option of a free look period, and return of policy within 15 to 30 days of purchase on
being dissatisfied with the policy opted for
• Loyalty addition and bonuses to boost your savings
• Simplified enrolment and fast claim settlement process available both online and offline
• Competent customer service on a 24*7 basis

14
1.10 SWOT ANALYSIS OF THE ORGANISATIONS

INTRODUCTION

SWOT analysis is conducted to analyze internal and external environment of any

organization. This analysis comprises four components i.e. strengths,

weaknesses, opportunities and threats. Strengths and weaknesses are considered

to be internal positive and negative factors, whereas, opportunities and threats

are confined to external environment. This specific analysis is helpful in deciding

a unique and effective strategy to meet competitive challenges. If an organization

wants to lead in today’s competitive scenario, it has to sharpen its strengths and

overcome its weaknesses in the light of opportunities and threats.

Strengths in the SWOT analysis of LIC :

Strengths are defined as what each business does best in its gamut of operations which can give it an upper
hand over its competitors. The following are the strengths of LIC are:

India’s largest Insurance service provider: LIC currently has pan India operations with 2048 fully
computerized branch offices, 8 zonal offices, around 113 divisional offices, 2,048 branches and 1381
satellite offices and corporate offices. The entire country is classified under 54 customer zones and 25 metro-
area service hubs based across various cities and towns of India. Currently, LIC has 1,337,064 individual
agents, 242 Corporate Agents, 89 Referral Agents, 98 Brokers and 42 Banks for selling life insurance to the
general public.

Brand Image: LIC has a strong branding in India. Its tagline Yogakshemam Mahamyaham which means
welfare for all is well recognized. The Economic Time Brand Equity Survey of the year 2015 voted LIC as
the most trusted Insurance provider in India.

Fund Base: LIC has a huge found base of around 150 billion USD and is also India’s biggest investor
making it immensely powerful in the domain of finance in India.

A network of Agents: LIC has around 1,337,064 individual agents, 242 Corporate Agents, 89 Referral
Agents, 98 Brokers and 42 Banks across India who cover each nook and corner of the country.

15
Weaknesses in the SWOT analysis of LIC :

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key
weaknesses of LIC are:

Culture: LIC has been strongly associated with the government and thus follows a very slack and slow paced
work culture. This works as a weakness when compared to modern-day private insurance players who are
adept at strategy.

Poor advertisement strategy: In comparison to its private counterparts LIC does not spend too much on
advertisement and this shows in the quality of ads that they release.

Too many restrictions: The Company has a lot of restriction imposed on ti being a government entity and
there is always red tape challenges. This makes decision making slow at LIC.

Labour overheads: LIC has a huge employees strength and most of them work from their own setups. Paying
their salaries and managing theme is often a huge challenge for the company

Opportunities in the SWOT analysis of LIC :

Opportunities refer to those avenues in the environment that surrounds the business on which it can
capitalize to increase its returns. Some of the opportunities include:

Cybersecurity: There are many cases of information threats and breaches in security systems. Thus at an age
where cybersecurity is a threat Insurance policies against this can prove to be a huge opportunity.

Online Services: As online services grown people have started looking more into options like insurance and
the awareness levels are also higher than the earlier days. This presents an opportunity for providers like LIC
which are labor intensive to cut down costs by replacing people with technology.

Shift from protection to prevention: There is a general shift of trend from protection to prevention which is a
pointer for insurance companies who should now be focusing on risk prevention than risk mitigation
policies.

More disposable income: Insurance today is seen not as a protection but also as a form of investment. By
capitalizing on this new approach insurance companies can design new products.

16
Threats in the SWOT analysis of LIC :

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of
the threats include:

Competition: With privatization of insurance LIC has lost its older glory and today faces stiff competition
from private insurance players who have brought in more glamour into the industry.

Change of governments: With every new government the fiscal and monetary policies change with the result
that policies need to be reworked accordingly. This creates a lot of hassles.

Technology: Today most financial services make technology an integral; part of their business through
online banking and financial broking services online. However, LIC still has a lot to achieve in terms of
staying abreast with technology

Strengths in the SWOT Analysis of Tata AIA:

1. Customised Insurance Solutions for customers

2. State of Art I.T Infrastructure

3. Products with emphasis on social aspects

4. Global Exposure with Expertise in Asian Markets in over 15 countries

Weaknesses in the Tata AIA SWOT Analysis:

1. Less penetration in rural areas

2. Small Agent Strength as compared to competitors

3. Cases of fraud agents have caused problems to the brand

17
Opportunities in Tata AIA SWOT Analysis:

1. Growing rural market

2. Earning Urban Youth

SWOT Analysis of Tata AIA are as mentioned:

1. Global economic crisis

2. Entry of new NBFCs in the sector

3. Growing competition and lower profitability

4. Increase

18
1.11 AWARDS

Life Insurance Corporation Of India

• ET Brand Equity Award for Top Brand in Insurance Category

• Outlook Money Award for Best Life Insurer
• AIMA High Performance Award
• Readers Digest Trusted Brand
• Power Brand Award
• Global Youth Marketing Award for Most preferred Life Insurance Company
• Shoppers & Consumers Insight Award
• MY FM Stars of Industry Award for Excellence in Life Insurance
• World Brand Congress Award for Brand Excellence
• World HRD Congress Award for Innovative HR practices
• ABCI Award for House Magazine Yogakshema
• INDY's Gold Award for House Magazine Yogakshema.
• Skoch Order of Merit CSR Excellence
• Indira Gandhi Award from President of India
• BFSI Vision CSR Award-Community Development
• BFSI Vision CSR Award-HealthCare and Combating Diseases
• NASEOH-Sri Vijay Merchant Memorial Award
• Greentech CSR Award
• Money Today FPCIL
• North East Consumer Awards
• ABP News Global CSR
• ABP News BFSI Awards
• 54th ABCI-WALLPAPER SILVER
• 54th ABCI-Bronze for Photofeature in Yogakshema Magazine
• ABCI 14-15 Mag Design
• My FM STARS OF THE INDUSTRY AWARDS-Brand Leadership
• My FM 14-15-Excellence in Life Insurance
• BFSI Leadership-LIC GJF
• Website of the Year India Awards-Most Popular Website
• Outlook Money Best Life Insurer

19
Tata awards

• 2016. Golden Peacock. Award. Tata AIA Life wins the Golden Peacock Award for Risk
Management.
• 2019. Aon Best Employer. Award. Tata AIA Life wins 2019 Aon Best Employers Award fourth time
in a row.

1.12 INVESTMENT PLANS

Five best lic plan to invest

New Jeevan Anand

New Jeevan Anand is an endowment plan offered by LIC. It is a participating non-linked plan that offers a
combination of protection as well as savings. It provides financial protection against death throughout the
life of the insured and also provides the provision of a lump-sum payment at the end of the policy tenure in
case of survival of the insured. This plan takes cares of liquidity needs through the facility of loan. Features
of the New Jeevan Anand plan are:

The death benefit in the form of sum assured along with vested simple reversionary bonuses is provided.

It offers to participate in the profits of LIC and receive bonus declared by the company

It provides maturity benefit as the basic sum assured and vested bonuses as well as an additional bonus at the
end of the term of the policy.

The plan offers an option of regular payment of premium to the insured individual

Jeevan Tarun

Jeevan Tarun is a participating non-linked Money Back Insurance Plan which offers a combination of
protection and savings for children. This plan is designed in order to meet the educational needs and other
needs of growing children through payments of annual survival benefits from 20 to 24 years of age and
maturity benefits at the age of 25 years. The features of this plan are:

This plan can be purchased by a parent or grandparent for a child of up to 12 years.

20
It is a flexible plan in which you can choose the proportion of survival benefits to be availed during the
policy tenure.

The death benefit shall not be less than 105% of the total premiums paid as on the date of the insured.

It also provides loan facility thereby taking care of your liquidity needs.

LIC’s Tech-Term

LIC’s Tech-Term is a Non-Linked and pure protection online term insurance plan. It is a plan without profit
and it provides financial protection with the family of the insured in case of his/her unfortunate death.
However, no benefits are provided if the policyholder survives the term of the policy. The features of this
plan are as follows-

The plan is available through the online application process only.

The plan offers the choice of a single premium or regular premium option

The plan provides the choice of two benefit options which include the Level sum assured and Increasing sum
assured.

This plan provides an option to increase your coverage by option for accidental benefit rider by paying
additional premiums.

New Endowment Plus

New Endowment Plus is a unit-linked non-participating endowment assurance plan they offer investment as
well as interest cover during the policy tenure. The plan is designed to provide a very good combination of
long term savings and protection. It provides financial support to your family in the event of your
unfortunate death and its greater flexibility which helps to build a life and live your dreams. Features of New
Endowment Plus are as follows:

The plan offers a choice of investing premiums in any one of the four types of investment funds available.

Death benefits are paid to the family of the insured if the insured dies during the tenure of the policy

Premiums can be paid regularly on monthly, half-yearly, quarterly or yearly basis.

Loan facility is also available provided premiums of three years have been paid.

21
LIC’s Jeevan Shanti

Jeevan Shanti Plan is a flexible pension annuity plan which has an option to choose an immediate or
deferred annuity plan. It offers nine different options to choose from to meet your different financial
circumstances and needs. It is a single premium plan and the rates of annuity in this plan are guaranteed at
the inception of the policy for both immediate as well as a deferred annuity plan. The main features of
Jeevan Shanti plan are the following:

This plan provides guaranteed lifelong incomes in one-time investment.

The plan can be availed either individually or as a joint insurance plan with a spouse, children, etc.

Loan facility is also available after expiry of one year

The plan can also be brought online from the website of LIC.

Tata AIA plans.

Sampoorna Raksha

TATA AIA Life Insurance Sampoorna Raksha

This is a non-linking, non-participating term plans that provides complete financial protection to your family
in the event of your unfortunate demise. It is a pure term insurance plan that gives you the flexibility to
choose various death benefit options.

Features:

Minimum entry age 18 years and maximum entry age is 70 years

Age of maturity- minimum is 28 years and maximum is 80 years

The minimum sum assured is 50 lakhs and maximum has no limit

Life cover for policy term up to 40 years to 80 years of age

Lower premium rates for non smokers and females

Offers you premium paying term of regular pay or limited pay

22
Premium payment mode can be monthly, quarterly, half-yearly and annually

Choice of regular or limited (5 or 10 years) premium paying term

Premiums paid under this plan are eligible for tax benefits under Section 80C and 10 (10D) of the Income
Tax Act, 1961

The plan has a free look period of 15 days

The policyholder has the flexibility to choose from 4 death benefit options:

Option 1- “Sum Assured on Death” as lump sum benefit on death

Option 2- “Sum Assured on Death” as lump sum benefit on death and monthly income for next 10 years

Option 3- “Enhanced sum assured on Death” as lump sum benefit on death

Option 4- “Enhanced sum assured on Death” as lump sum benefit on death and monthly income for next 10
years

The plan offers no maturity or survival benefit

Plan conversion is not allowed and no policy loan is available under this plan

TATA AIA Life Insurance Sampoorna Raksha+

This plan not only secures your family's financial future, but also gives you return of premium until the
maturity of the policy.

Features

The minimum entry age is 18 years and maximum for regular and limited 5-year pay is 70 years. For regular
and limited pay of 10 years is 65 years.

Life Cover for Policy Term of up to 30 years or up to Age 80 years

Choice of Regular or Limited (5 or 10 Years) Premium Paying Term

The plan offers you the return of your premium if you survive till the maturity

23
You can avail sum assured of minimum Rs. 50 lakhs and the maximum amount has no limit

Annualized premium is based on minimum or maximum basic sum assured

Premium payment mode can be monthly, quarterly, half-yearly and annually

The plan offers you the flexibility to choose two death benefit options:

“Sum Assured on Death" as Lump Sum benefit on Death

"Sum Assured on Death" as Lump Sum benefit on Death and Monthly Income for next 10 year

No increase/ decrease in the sum assured is allowed post the inception of the policy

With this policy, you can opt for Tata AIA Life Insurance Accidental Death and Dismemberment (Long
Scale) (ADDL) Rider

Plan conversion is not allowed and no policy loan is available under this plan

Surrender benefit:

For regular pay: No surrender benefit is offered

For limited pay: For the limited pay term of 5, if the premium is paid for at least 2 full years and for pay term
of 10 years, if the premium is paid in full for 3 years then the policy can be surrender any time till maturity.

TATA AIA Life Insurance iRaksha Supreme

Designed to be a pure term insurance plan, TATA AIA Life Insurance iRaksha Supreme stands by its name
by helping you take care of your family’s financial needs. This is one of the most attractive and affordable
term plan offered by TATA AIA.

Features:

Minimum entry age is 18 years and maximum age is 70 years . The maturity age is 80 years

The minimum sum assured is Rs. 50 lakh and maximum has no limit

You can opt for premium payment option-regular pay, single or limited pay (5 to 10 years)

You can pay the premium on an annual and semiannual basis

24
Low premium rates are offered for female lives

Non-smokers and healthy living individuals can enjoy preferential premium rates

This plan ensures complete life protection by providing financial protection against the unfortunate demise
of the policyholder.

Rate benefits for customers opting for higher level of protection (Sum Assured of Rs. 75 Lacs & above)

Tax benefits u/s 80C & 10(10D) of the Income-Tax Act, 1961

There is no maturity benefit offered under this plan

A free look period of 30 days is provided

Death benefit payable will be higher the sum assured, 10 times the annualized premium or 105% of the total
premiums paid.

Surrender benefit:

For regular pay: No surrender benefit is offered

For limited pay: For the limited pay term of 5, if the premium is paid for at least 3 full years and for pay term
of 10 years, if the premium is paid in full for 7 years then the policy can be surrender any time till maturity.

TATA AIA Life Insurance Maha Raksha Supreme

This is a term plan that provides pure protection to your family's financial needs. Offering you an array of
choices, the plan lets you fulfill your family’s financial needs in the most convenient and affordable ways.

Features:

The minimum entry age is 18 years and maximum is 70 years. The maturity age is 80 years.

The basic sum assured can be 50 lakhs and maximum has no limits

The policy term can be for tenure of 10-40 years

You can opt for premium payment option-single and regular pay

You can pay the premium on annual, semi-annual, quarterly and monthly basis

25
You can enhance the cover by opting for an additional rider- Tata AIA Life Insurance Accidental Death and
Dismemberment (Long Scale) (ADDL)

Discounts are offered to non-smokers and females

No maturity benefit is available for this plan.

No policy of loan is applicable

You can also enhance your protection by option for the below options

Life stage plus option: With this, you can increase your sum assured in accordance to the future events in
your life. These lifestyle events include- your marriage, birth of a child or legal adoption of a child. This
does not require you to opt for a fresh medical underwriting. Also, you are required to submit the documents
of your marriage, the birth certificate of your child or the adoption papers.

Inbuilt payout accelerator provides you with 50% sum assured in case you are diagnosed with terminal
illness. This Benefit will commence after 2 years of continuous cover since inception date.

Surrender benefit:

The Surrender Value for Single Pay Option = 75% x (PolicyTerm less Policy duration in complete
years)/Policy Term x Single Premium.

26
 CHAPTER 2

RESEARCH METHODOLOGY

Objectives of study

The main objective of this study is to compare plans of Tata AIA and LIC and other objectives of the study
are as follows.

To know the customer behavior towards their Insurance company.

To know on what parameters both companies differ.

To understand satisfaction level of customers of Tata AIA and LIC.

To analyze the return patterns of both the companies.

To know customer benefits regarding different saving plans offered by both the

companies

To understand the quality of service provided by the companies to their customers.

To know customer satisfaction towards services provided by advisors of their insurance

company

SCOPE OF THE STUDY

This thesis aims at making an in depth study of Life Insurance Companies and Tata AIA life insurance

This topic is based on a brief study private and public insurance policy

Analyze customer satisfaction through Insurance

Understand the benefits of customers through Insurance

27
Limitations of the study

The limitation of study are as follows :

The sample size of only 55 was taken from the large population for the purpose of study, so there can be
difference between results of sample from population.

Some respondents were reluctant towards giving accurate information while filling questionnaire.

There is lack of prior research studies on the topic.

There is lack of sufficient information from both the companies

Due Covid pandemic there was no physical survey was taken

Sample size

Samples of 55 are selected by applying the logic of collecting small percentage of the total population who
has knowledge about the subject

Data collection

Data is collected through primary as well as secondary data. Primary data was collected by the survey.
Questionnaire is prepared in English consisting of close ended question

The secondary data was collected from official records, similar projects and journals

28
 CHAPTER 3
DATA ANALYSIS, INTERPRETATION & PRESENTATION

Age

The total respondents are 55 from which 16.36% are from below 20 age group i.e. 9 respondents are from
below 20 group.

• There are 72.73% respondents between 20-30 age group i.e. 40 respondents.

• Lastly there are 10.91% respondents that are of 30 & above age group i.e. 6 respondents.

• According to the survey, the age group of 20-30 has the highest respondents.

29
Gender

• The above data shows that 27.27% respondents were male i.e. 15 male respondents.

• There were 72.73% female respondents i.e. 40 female.

• Maximum respondents are female.

30
Education

According to the survey, 70.91% respondents are graduate i.e. 39 respondents.

• There are 12.73% respondent which are post graduate i.e. 7 respondents.

• 16.36% respondent are neither graduate nor post graduate i.e. 9 respondents.

• Maximum response is from graduates.

31
Occupation

From the above data, 80% of respondents were student i.e. 44 students.

• There is 1.82% respondent of business i.e. only 1 respondent.

• 2 respondents i.e. 3.64% respondents are homemakers.

• 12.73% respondents are from service / job i.e. 7 respondents.

• There is no respondent who is included in any profession.

• 1.82% respondent are from others category i.e. only 1 respondent.

32
Have you heard about LIC or TATA AIA life insurance?

According to the survey, 98.18% respondents have heard about LIC or TATA Life Insurance.

• 1.82% respondent have not heard about it i.e. only respondent.

• Maximum people know about LIC or TATA Life Insurance.

33
If yes,

then in which company do you have your insurance?

• From the above given pie diagram, 80% respondent have their insurance in LIC company i.e. 44
respondents.

• 1.82% respondents have their insurance in TATA AIA i.e. 1 respondent.

• 18.18% respondents are from other category company’s i.e. 10 respondents.

34
How many policies have taken?

From the above pie diagram, 75.5% respondents have taken only 1 policy i.e. 37 respondents have taken
only 1 policy.

• There are 18.4% respondents have taken 2 policies i.e. 9 respondents.

• 6.1% respondents have taken 3 policies i.e. 3

35
Insurance policies are for?

According to the survey, 26.00% respondents were for child policies i.e. 13 respondents.

• 64.00% respondents were for Adult Policies i.e. 32 respondents.

• 10.00% respondents were for Senior Citizen Policies i.e. 5 respondents.

36
Are you satisfied with the policy?

The above given data shows that 94.55 % respondents are satisfied with their policies i.e. 52 respondents.

• There are 5.45% respondents i.e. 3 were not satisfied with their policies.

• Here we can conclude that maximum respondents are satisfied with their policies.

37
How do you feel after investing in Insurance Plans?

From the above pie diagram, 10.9% respondents feel much better after investing in their insurance plan i.e. 6
respondents.

• 52.73% respondents feel better after investing in insurance plans i.e. 29 respondents.

• 34.55% respondents are in average state i.e. 19 respondents.

• 1.82% respondents are dissatisfied and feel somewhat worse i.e. only 1 respondent.

• Maximum people feel better after investing in their plans.

38
Have you received any claims on time?

According to the survey, 56.36% respondents have received their claims on time i.e. 31 respondents.

• 43.64 respondents have not received their claims on time i.e. 24 respondents.

• Maximum respondents have received their claims on time.

39
Media used by your insurance company to know about the plans?

According to the above pie diagram, 10.9% respondents were aware by newspaper i.e. 13 respondents.

• 22.7% respondents were aware from television i.e. 27 respondents.

• Whereas 21.8%, 30.3% and 14.31% respondents were made aware through Social Media, Agents and
Relative i.e. 26, 36 and 17 respectively.

40
Did you surrender any policy?

From the above data, 27.27% respondents have surrendered their policies i.e. 15 respondents

• 72.73% respondents have not surrendered their policies i.e. 40 respondents.

• We conclude that majority of respondents have not surrendered their policies.

41
Have you encountered any fraud?

According to this survey, 5.45% respondents have encountered in fraud i.e. 3 respondents.

• 94.55% respondents have not encountered in any fraud i.e. 52 respondents.

42
Do you make premium payments through online?

• According to the survey, 40% respondents make payment through online i.e. 22 respondents.

• 60% respondents does not make online payment i.e. 33 respondents.

• Maximum people are not interested in online payments.

43
 CHAPTER 4

CONCLUSION AND SUGGESTION

Tata AIA and LIC Company both are different Insurance company, they have their own characteristics,
advantages, limitation etc,so it is little difficult to compare.

Both companies have kept on bringing new innovative Plans or policies to expand their market and also
provide better service to the needs of their customers.

LIC has gained a lot of reputation because it is owned by the government as well as their plans or policies
are affordable to the needy customers.

Most of people are prefer to LIC company

Most people thinks that government sector of Insurance are safe to invest their plans rather than investing in
private sector.

According to this survey I conclude that LIC is better than TATA AIA Company to Invest their plans.

44
BIBLIOGRAPHY

www.shodhganga.inflibnet.ac.in

www.policybazaar.com

www.wishpolicy.com

www.tataaia.com

www.coverfox.com

www.melicagent.com

45
APPENDIX

. Have u heard about lic or tata life insurance?

• Yes

• No

2. If yes, In which company you have insurance? If

• Lic

• tata

• Others

3. How many policies you have taken?

•1

•2

•3

• others

4. Insurance polices are for?

• Child

• adult

• senior citizens

• others

5. Are you satisfied with the policy?

• Yes

• no

6. How do you feel after investing in insurance plans?

• Much better

46
• Better

• Average

• Somewhat worse

• Worse

7. Have you received any claim on time ?

• Yes

• no

8. Media used by your insurance company to know about the plans?

• Newspaper

• Television

• Hoardings

• social media

• Broker

• relative

• others

9. Did you surrender any policies?

• Yes

• No

10. Have you encountered any fraud?

• Yes

• No

47
11. Do you make premium payments through online?

• Yes

• No

48