ANALYSIS OF LIFE INSURANCE POLICIES AT

SHRIRAM LIFE INSURANCE

SUMMER INTERNSHIP PROJECT REPORT

AIMA POST GRADUATE DIPLOMA IN MANAGEMENT (AIMA PGDM)

Finance Aditya M Galugade

2022-2024 Roll No. 28

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI 400706

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ANALYSIS OF LIFE INSURANCE POLICIES AT SHRIRAM
LIFE INSURANCE
SUMMER INTERNSHIP PROJECT REPORT

SUBMITTED

AS A PARTIAL FULFILMENT OF THE CURRICULUM

FOR THE DIPLOMA

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM-

AIMA)

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI

BY

ADITYA GALUGADE

ROLL NO: 28

FINANCE

2
 Declaration

I, Mr. ADITYA GALUGADE, studying in the second year of Post Graduate

Diploma in Management (AIMA) at SIES College of Management Studies,
Nerul, Navi Mumbai, hereby declare that I have completed the Summer
Internship Project titled “ANALYSIS OF LIFE INSURANCE POLICIES AT
SHRIRAM LIFE INSURANCE” as a part of the curriculum requirement for
PGDM AIMA.

I also declare that the work undertaken by me is original and has not been
copied from any source. I further declare that the information presented in this
project report is true and has not been submitted to SIESCOMS or any other
Institute for any other examination.

Signature of the Student Date:

Name of the Student: Aditya Galugade

Roll No.: 28

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4
 Certificate by Faculty Guide

This is to certify that Mr. Aditya Galugade, studying in the second year of Post
Graduate Diploma in Management (AIMA) at SIES College of Management
Studies, Nerul, Navi Mumbai, has completed the Summer Internship Project
titled “ANALYSIS OF LIFE INSURANCE POLICIES AT SHRIRAM
LIFE INSURANCE” as a part of the curriculum requirement for PGDM
AIMA.

Signature of the Faculty Guide

Name: Dr. Christina Shiju

Date:

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 ACKNOWLEDGEMENT

I would like to take this moment to extend my heartfelt appreciation to all those who provided
unwavering support during my internship at Shriram Life Insurance. I am truly thankful for
their invaluable guidance and amiable advice throughout the project. I sincerely appreciate
their candid and enlightening perspectives on various aspects of the study. I am deeply grateful
to my mentor, Dr. Christina Shiju, for her thorough guidance and constant support throughout
the duration of the study.

I extend my heartfelt gratitude to my company guide, Ms. Sharmishtha Tiwari, who served as
my mentor during the internship, offering invaluable insights and necessary resources that
contributed to the successful culmination of my study. Their guidance and assistance at Shriram
Life Insurance enabled me to grasp and appreciate the evolving potential of the digital platform
in the years to come. I am profoundly thankful to my family and dear friends for their
unwavering cooperation and support.

Signature:

Name: Aditya Galugade

Date

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 EXECUTIVE SUMMARY

Shriram Life Insurance Company Limited (SLIC) is a private insurance company in India that
started in 2005 and began operating in 2006. It has more than 1,000 branches and 100,000
agents all over India. SLIC offers different types of life insurance plans like term, endowment,
whole life, and pension. Life insurance is like a deal between you and the insurance company.
You pay them a certain amount of money called a premium, and in return, they promise to give
a certain sum of money to your family if something happens to you, like if you pass away or
after a specific time. This internship helped me learn a lot about the insurance field. I got to
understand how they figure out the cost you pay (premium), how they sell insurance, and how
they handle questions from customers about their different plans.

Possessing an extensive distribution system, SLIC covers all of India and has achieved
profitability for three consecutive initial years. The company strongly prioritizes
comprehensive progress by offering life insurance to the Common People segment, receiving
commendation from the insurance committee of the Rajya Sabha.

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 TABLE OF CONTENT
Page No

Acknowledgement 6

Executive Summary 7

Chapter 1 – Company Overview

1. Introduction of the Company
2. History
3. Leaders of the Organization
4. Industry Analysis Industry
5. Organizational Hierarchy

Chapter 2 - The Assignments

1. Assignment at glance

2. Roles & Responsibilities

Chapter 3 – The Project

1. Objective of the Report
2. Scope
3. Methodology
4. Methods

Chapter 4 – Data Analysis, Findings, Recommendations & Limitations

1. Data Analysis
2. Findings
3. Recommendations
4. Limitations

Chapter 5 – Conclusion

Reference

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 CHAPTER 1- COMPANY OVERVIEW

1.1 Introduction to the Company

1.1.1 SHRIRAM GROUP

Originating more than three decades ago in Chennai, the Shriram Group, now valued at 76,000
Crores, had its modest start within the Chit Fund sector. The "three musketeers," namely Mr.
R. Thyagarajan, Mr. A.V.S. Raja, and Mr. T. Jayaraman, initiated this enterprise. Back then,
few within the financial services sector could foresee that this humble Chit Fund enterprise in
Chennai would serve as the bedrock for the extensive financial conglomerate that Shriram has
evolved into today.
The Shriram Group is dedicated to catering to a vast populace with its innovative and
personalized financial services. Over a span of more than 30 years, the relentless commitment
to enhancing financial accessibility for small and medium-sized entrepreneurs through loans
and chits has established a distinctive position for the Shriram Group in Southern India.

1.1.2 SHRIRAM CAPITAL

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Shriram Capital Limited (SCL) serves as the overarching holding entity responsible for
overseeing the Financial Services and Insurance divisions within the Shriram Group.
Established with the core aim of enhancing collaborative efficiencies among Group enterprises,
SCL also assumes a pivotal role in managing risk and cultivating leadership talent within these
entities. As the principal promoter, SCL drives the growth trajectory of two dynamic publicly
listed members of the Shriram Group: Shriram Transport Finance Company Ltd, recognized as
India's foremost asset financing company, and Shriram City Union Finance Ltd, a trailblazer in
Retail Finance across an extensive spectrum of offerings. Beyond this, SCL also holds the
mantle of promoter for Shriram Life Insurance Company Ltd, as well as the more recent
additions of Shriram General Insurance Ltd, Shriram Fortune Solutions, Shriram Insight Share
Brokers, and Shriram Wealth Management. Central to its role, SCL actively champions the
advancement of these entities, facilitating the infusion and reinforcement of adept leadership
teams, delivering strategic insights, and steering their growth journey towards achieving
substantial and profitable market presence.

1.1.3 SHRIRAM LIFE INSURANCE (SLIC)

Founded in 2005, Shriram Life Insurance began its work in 2006. It's known for using money
wisely and keeping costs low. The company believes in including everyone in financial matters.
They want to help lots of different people with their life insurance plans. They have many
offices all over India, around 550 of them. They are based in Hyderabad and work together
with the Sanlam Group. The people in charge are Mr. Casparus J H Kromhout, who is the CEO,
Mr. T. S. Krishna Murthy, the Chairman, and Smt. Akhila Srinivasan and Mr. Manoj Jain as
Managing Directors. They are special because they are the only private insurance company to
make profits for three years in a row since they started.
Shriram Life Insurance's main goal is to offer different types of life insurance plans that suit
many people. They started doing financial services in 2006, which means they help with money
matters like mutual funds, general insurance, deposits, and life insurance. They did really well
in their first seven years, becoming the most profitable in their industry in the whole country.
They're proud that more than 40% of their business comes from helping "AAM ADMI," which
means regular people, especially those in the countryside. They're known for using money
smartly and keeping their costs down.

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1.1.4 HIGHLIGHTS OF SHRIRAM LIFE INSURANCE
• With over 528 branches and a customer base exceeding 1.45 crore, Shriram Life boasts a
substantial presence.
• Shriram Life achieved a notable gross premium of Rs. 1020 crore during the fiscal year 2015-
2016.
• Its extensive network comprises 609 offices and 75,000 agents, covering a wide expanse
across India.
• Recognized for its outstanding underwriting practices, Shriram has earned the title of
'Underwriting Initiative of the Year.'
• Shriram Life Insurance thrives by catering to rural areas and individuals from the 'AAM
AADMI' category, contributing to over 40% of its business.
• The esteemed Founder of the Shriram Group, Mr. R Thyagarajan, was honoured with the
prestigious Padma Bhushan award.

1.1.5 AWARDS WON BY SHRIRAM LIFE INSURANCE

The Bizz Americas 2016 Award - Shriram Life Insurance.

Best Life Insurance Company- BFSI Award, ABP News.

International Arch of Europe’ award - Frankfurt 2015.

Indian Insurance Award for Non-Urban Coverage - Life Insurance - Finetelekt, SP Media Pvt.
Ltd.

Managerial Excellence Award 2015 - For excellence in diverse areas - Madras Management
Association

1.1.6 AWARDS WON BY SHRIRAM LIFE INSURANCE

• Child Life Insurance Plans

• Terms Life Insurance Plans
• Pensions Life Insurance Plans
• Investments Linked Life Insurance Plans
• Combi Life Insurance Plans
• Endowment Life Insurance Plans
• Group Life Insurance Plans
• Mirco Life Insurance Plans

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1.2 History
1974 – Shriram Capital & Chit Fund

1979 – Shriram Transport Finance Company in South India

1986 – Shriram City for Specializing in Retail Finance

2005 - Shriram Life Insurance was introduced

2006- Shriram Life Insurance was established as Shriram Financial Services Limited
2006- Shriram Life Insurance was established as Shriram Financial Services Limited

2009- Nonconvertible Debenture & Commencement of Shriram Wealth Advisors Ltd

2011- Commencement of Business- Shriram Housing Finance Ltd. in December

2015- Shriram Transport approved the amalgamation of Shriram Equipment with itself

2017- Shriram Finance Bags The most promising brand by WCRC

2020- Shriram Transport Finance & Shriram City Union are now Shriram Finance

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Companies
• Shriram Finance is the flagship company of the Group which provides financial services
such as commercial vehicle finance, passenger vehicle finance, SME finance and retail
lending (personal loans, gold loans and two-wheeler loans). It was formed in 2022 as the
result of a merger of Shriram City Union Finance and Shriram Capital into Shriram
Transport Finance.

• Shriram Housing Finance is a subsidiary of Shriram Finance and mainly provides home
loan services.

• Shriram Life Insurance is the life insurance arm of the group, and a joint venture between
Shriram Group and South African company Sanlam.

• Shriram General Insurance is engaged in commercial and retail vehicle insurance, home
insurance and travel insurance. It is a joint venture between Shriram Group and Sanlam.

• Shriram Financial Ventures is the holding company and promoter of Shriram Group's
financial services and insurance businesses. It is jointly owned by Shriram Ownership
Trust (SOT) and Sanlam Group.

• Shriram Properties is a real estate developer focusing on mid-income housing projects,

primarily in South India.

• Shriram Fortune is the financial services distribution arm of the group.

• Shriram AMC is an asset management company focused on mutual funds.

• Shriram Insight is a retail stockbroker.

• Shriram Wealth provides wealth management advisory services.

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 1.3 Leaders of the Organization
MR. CASPARUS JACOBUS HENDRIK KROMHOUT (MD &
CEO)

Beginning his career as an industrial engineer at ISCOR mining, Mr. Kromhout became a part
of Sanlam in 1997, concentrating on project portfolio value management. In his capacity as
COO of Shriram Life since 2010, he has spearheaded pivotal initiatives aimed at enhancing the
company's organizational prowess and setting the stage for a more promising future. In
recognition of his contributions, Mr. Kromhout assumed the roles of Managing Director, CEO,
and Principal Officer in December 2015.

MR. T. S. KRISHNA MURTHY-Chairman

For more than 25 years, Mr. Karnam Ramachandra Sekhar has been an integral part of
the Shriram Groups, occupying significant roles within the organization. Holding a
degree in Commerce, his profound understanding of business, extensive experience, and
expertise in marketing and selling various financial products contribute to the company's
Vigor and adaptability. He is a member of the boards of Shriram Overseas Investment
Pvt. Ltd., Shriram Chits Tamil Nadu Pvt. Ltd.

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MR MANOJ KUMAR JAIN-Managing Director

In his role as the Managing Director of Shriram Life Insurance Ltd, Mr. Manoj Jain has been
instrumental in guiding the company to its recent achievements. Boasting an extensive
background in financial services spanning more than 27 years, with a specific focus of over 15
years in life insurance, he has garnered valuable experience. His professional journey includes
tenure at HDFC Standard Life, Tata Motor Finance, and the 20th Century Finance Group. In
recognition of his leadership, Mr. Jain received the esteemed 'CEO of the Year' award at the
ABP News - Banking, Financial Services & Insurance Awards in February 2015.

SMT. AKHILA SRINIVASAN- Director

Formerly serving as the Managing Director of Shriram Investments Ltd., Smt. Akhila
Srinivasan earned a noteworthy recognition as one of the top 25 influential businesswomen in
the nation according to Business Today magazine. Operating at a pivotal capacity within the
Group, she shoulders significant responsibilities and has played a pioneering role in
implementing various social welfare initiatives.

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1.4 Industry Analysis

1.4.1 What is Insurance?

Insurance could be characterized as a societal mechanism aiming to minimize or eliminate

potential losses to life and property. It operates as a collective way of managing risk,
distributing the burdens of risk and loss across a larger group of individuals, as people often
prefer a consistent small responsibility over an unpredictable and fluctuating one. Insurance
essentially represents a framework of collaborative economic efforts, enabling community
members to jointly address inevitable risks. This concept can be defined as a legal agreement
between two parties, where the Insurer commits to providing a predetermined sum upon the
occurrence of a specific event, whether certain or uncertain. In return, the other party, referred
to as the Insurance or Insurant, offers a set fee known as a premium. The terms Assurer or
Underwriter and Assurant are also used to describe the insurer and insurant respectively. The
written manifestation of this agreement is termed the policy.

1.4.2 Origin of Insurance

Around 4,500 years ago, in ancient Babylonia, traders managed the risks of caravan trade by
providing loans that were to be repaid with interest when goods arrived safely. In 2100 BC, the
Code of Hammurabi recognized this practice as a legal concept, possibly marking the
beginning of insurance. Life insurance traces back to ancient Rome, where citizens formed
burial clubs to cover funeral expenses and aid survivors with payments. As European
civilization evolved, its social structures and welfare practices became more refined. The
expansion of trade through new lands and sea routes led medieval guilds to safeguard their
trader members from losses due to fire, shipwrecks, and more. Given the sea-based trade,
concerns about pirates arose, and guilds even offered ransom for captured members. They also
provided support during illness and poverty. All these aspects cantered around the foundational
idea of insurance or risk coverage.
This illustrates the age of these concepts. In 1347, in Genoa, maritime nations of Europe
initiated the earliest documented insurance contract, embracing marine insurance as a practice.

1.4.3 The First Step

The insurance we are familiar with today traces its roots back to 17th century England.
Specifically, it began to take form in 1688 within an intriguing establishment known as Lloyd's
Coffee House in London. This venue served as a meeting point for merchants, ship-owners,
and underwriters to converse and conduct business. As the 18th century ended, Lloyd's had
facilitated sufficient business to evolve into one of the earliest examples of a modern insurance
company.

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1.4.4 Enter Companies

The initial stock companies venturing into the insurance realm were granted charters in
England around 1720. The emergence of the first insurance company in the American colonies
occurred in Charleston, SC, in 1735. In 1759, the Presbyterian Synod of Philadelphia initiated
the inaugural life insurance corporation in America, aimed at assisting ministers and their
families. However, it was post-1840 when life insurance experienced significant growth, a
catalyst being the lessening of opposition from religious groups.

1.4.5 The Growing Years

The 19th century witnessed significant strides in insurance, introducing novel products tailored
to the demands of urbanization and industrial progress. The notorious New York fire of 1835
highlighted the necessity to address sudden and substantial losses. Massachusetts pioneered the
requirement for companies to maintain reserves by law just two years later. The devastating
Chicago fire of 1871 further underscored the potential for extensive losses in densely populated
cities, leading to the establishment of reinsurance practices to distribute risks among various
companies. The era's industrialization also sparked other developments, including the British
government's 1897 Workmen's Compensation Act, making employee insurance against
industrial accidents compulsory. With the rise of automobiles, public liability insurance, which
emerged in the 1880s, gained significance and wider recognition.

In the 19th century, societies insured members' lives and health, while fraternal orders provided
affordable member-exclusive coverage. Today, labour groups and fraternal orders continue this
tradition. Employers also offer group insurance with life, health, and retirement benefits, often
with employee contributions.

1.4.6 Growth in India

Insurance's origins in India can be traced back to the Vedas, where the term "Yogakshema"
from the Rig Veda suggests early community insurance practices around 1000 BC. Burial
societies, akin to ancient Rome, emerged during the Buddhist era to support families with
housing and protect widows and children. The country's first life assurance society, Bombay
Mutual Assurance Society, emerged in 1870, followed by Oriental, Bharat, and Empire of India
in the 1870-90s. During the Swadeshi movement in the early 20th century, India witnessed an
insurance surge with more companies established. Government control was initiated through
the Insurance Act of 1912 and the more comprehensive 1938 version. Amidst irregularities, the
government nationalized the sector in 1956, establishing the Life Insurance Corporation of
India. Public sector dominance persisted until 2001 when private players entered after the RN
Malhotra Committee's 1994 report. The Insurance Regulatory & Development Authority,
formed in 2000, oversees the industry and safeguards policyholders' interests.

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1.4.7 Reguatory Body IRDAI

The Insurance Regulatory and Development Authority of India (IRDA) is the autonomous
regulatory body responsible for overseeing and regulating the insurance sector in India.

• Establishment: IRDA was established in 1999 as a statutory body under the Insurance
Regulatory and Development Authority Act, 1999.
• Regulatory Authority: IRDA is the primary regulatory authority for the insurance
industry in India, ensuring fair practices, consumer protection, and stability in the sector.
• Autonomy: IRDA operates independently and exercises its functions without undue
influence from external parties, ensuring impartial oversight.
• Functions: IRDA's main functions include issuing licenses to insurers, approving
insurance products, regulating premium rates, protecting policyholders' interests, and
ensuring solvency of insurance companies.
• Market Development: IRDA promotes market development and competition by
facilitating the entry of new players, encouraging innovation, and setting guidelines for
market conduct.
• Policyholder Protection: One of IRDA's key roles is to safeguard the interests of
policyholders. It monitors insurers' financial health to ensure they can meet their
obligations to policyholders.
• Product Approval: IRDA reviews and approves insurance products to ensure they are
transparent, fair, and suitable for customers' needs.
• Code of Conduct: IRDA establishes and enforces a code of conduct for insurers, agents,
intermediaries, and other entities in the insurance ecosystem.
• Consumer Grievances: IRDA provides a platform for consumers to voice grievances
against insurance companies and intermediaries, helping resolve disputes.
• Digitization and Technology: IRDA has been actively promoting the use of technology
in the insurance sector to enhance customer experience, improve efficiency, and increase
transparency.
• Annual Reports: IRDA publishes annual reports detailing the performance of the
insurance industry, regulatory developments, and trends.
• Education and Awareness: IRDA plays a role in educating consumers about insurance
products, raising awareness about their rights and responsibilities, and promoting financial
literacy.

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1.4.8 Life Insurance Company in India

Life Insurance Companies in Claim Settlement

India Ratio

Max Life Insurance Company 99.35%

Tata AIA Life Insurance Company 99.07%

HDFC Life Insurance Company 99.04%

ICICI Prudential Life Insurance 98.58%

Exide Life Insurance Company 98.54%

Pramerica Life Insurance Limited 98.42%

Life Insurance Corporation of

97.79%
India

Reliance Nippon Life Insurance 97.71%

Kotak Mahindra Life Insurance 97.40%

Bharti AXA Life Insurance 97.28%

Aditya Birla Sun Life Insurance 97.15%

Star Union Dai-ichi Life Insurance 96.74%

Aegon Life Insurance Company 96.45%

PNB MetLife India Insurance 96.21%

Aviva Life Insurance Company 96.06%

Edelweiss Tokio Life Insurance 95.82%

Ageas Federal Life Insurance 95.79%

Future Generali India Life

95.16%
Insurance

SBI Life Insurance Company 95.03%

Bajaj Allianz Life Insurance 95.01%

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 Life Insurance Companies in Claim Settlement
India Ratio

Canara HSBC OBC Life Insurance 94.04%

IndiaFirst Life Insurance 92.82%

Sahara India Life Insurance 90.16%

Shriram Life Insurance Company 85.30%

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Market Capitalization

Market capitalization
Rank Company (in INR)

1 Life Insurance Corporation of India (LIC) 3,62,000 crores

2 HDFC Life 1,95,000 crores

3 ICICI Prudential Life 1,56,000 crores

4 SBI Life 1,39,000 crores

5 Max Life 1,11,000 crores

6 Tata AIA Life 85,000 crores

7 Bharti AXA Life 68,000 crores

Canara HSBC Oriental Bank of Commerce
8 Life 51,000 crores

9 Aviva Life 41,000 crores

10 Nippon Life India Insurance 37,000 crores

11 Shriram Life Insurance 35,000 crores

12 Star Health and Allied Insurance 33,000 crores

13 Bajaj Allianz Life 29,000 crores

14 Reliance Life 27,000 crores

15 Aviva Life (UK) 25,000 crores

16 Aegon Life Insurance 23,000 crores

17 MetLife India 21,000 crores

18 HDFC Ergo 19,000 crores

19 Future Generali India Life Insurance 17,000 crores

20 Kotak Mahindra Old Mutual Life Insurance 15,000 crores

21 Amica Life Insurance 13,000 crores

22 DHFL Pramerica Life Insurance 11,000 crores

23 IndiaFirst Life Insurance 9,000 crores

24 ING Vysya Life Insurance 7,000 crores

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