Project On The New India Assurance Com. by Sandeep Vaishnav

THE NEW INDIA ASSURANCE COM.
LTD
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A Project Report On
CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT
(With special reference to NEW INDIA

ASSURENCE)
In The Partial Fulfillment Of The

BBA PROGRAM
2006-2009
Under the guidance of:
Mr. Anil Chouhan Prof. Anil

Bhatt
Branch Manager, SIBM,
Nathdwara
The New India Assurance,
Udaipur.
SUBMITTED BY:
SANDEEP
VAISHNAV
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SHREENATHJI INSTITUTE OF BIO-TECHNOLOGY AND

MANAGENT, NATHDWARA,
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CERTIFICATE
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ACKNOWLEDGMENT
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ACKNOWLEDGMENT
I believe that no success is possible without teamwork. Many

people have made valuable contribution in making this project a
success.
I would like to thank my God , My parents and the entire staff

of SIM, Nathdwara, and entire staff of The new India Assurance,
Udaipur and my all friends for their support and cooperation extend
to me during the execution of the project.
Owe the successful completion of this project guide Pro. Anil
Bhatt for their personal attention and expert guidance provided to me
during the execution of the entire project, which enable me to
complete this challenging assignment.
sincerely express my gratitude to Mr. ANIL CHOUHAN, project

guide, "THE NEW INDIA ASSURANCE COMPANY" and Mr.
PARKASH JOSHI, for grating me the opportunity to be associate with
such a high repute. He always had been a great support. The
cooperation, knowledge and insight provided by him for the project
have been enormous. This project would not have been possible
without him.
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SANDEEP VAISHNAV
INDEX
S. No. TOPIC PAGE NO.
1. EXECUTIVE SUMMARY 7
2. INTRODUCTION 9
3. COMPANY PROFILE 17
4. PRODUCT PROFILE 29
5. OBJECTIVE OF THE COM. 47
6. SCOPE OF STUDY 48
7. RESEARCH METHODOLOGY 49
8. INFORMATION & ANALYSIS 53
9. FINDINGS & CONCLUSION 57
10. LIMITATIONS 60
11. BIBLIOGRAPHY 60
12. ANNEXURES 61
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Executive Summary
Organization- “THE NEW INDIA ASSURANCE COMPANY, UDAIPUR.”
Reporting officer- Mr. ANIL CHOUHAN, MANAGER OF THE NEW

INDIA ASSURANCE COMPANY, Udaipur.
Faculty Guide- PROF. ANIL BHATT
Student Name- SANDEEP VAISHNAV
Objective- To study of Derivative Research on” CUSTOMER

VIEW FOR MARKET POTENTIAL IN INVESTMENT”
Scope-
1. Sample for the research project were investor in Udaipur and Nathdwara.
2. Time period – 25-06-2008 to 10-08-2008
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RESEARCH METHODOLOGY
Meaning Of Research Methodology-
1. Research design used was descriptive.

2. Data was collected by using interview technique using questionnaire as a
tool.
3. Sample size was 100.
4. Sampling technique used was random sampling.
Major Findings-
1. Performance liked by the respondents. The various performance

features they liked in the order of preference are as follows-
• Consistency
• Flexibility
• Stability
• Services
• Securities
2. The Core features are as follows

3. Money Diversification
4. Risk and Return
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ASSURANCE
Introduction-
LO
Assurance industry has always been a growth-oriented industry globally.
On the Indian scene too, the assurance industry has always recorded noticeable
growth vis-à-vis other Indian industries.
The new India assurance Co. Ltd. was the first general assurance company
to be established in India in 1850, which was a wholly British-owned company.
The new India assurance company to be set up by an Indian was Indian
Mercantile assurance Co. Ltd., which was established in 1907. There emerged
many a assurance player on the Indian scene thereafter.
The general assurance business was nationalized after the promulgation of
General Insurance Business (Nationalization) Act, 1972. The post-nationalization
general assurance business was undertaken by the assurance Corporation of
India (GIC) and its 3 subsidiaries:
1. New India Assurance Company Limited
2. National Insurance Company Limited
3. United India Insurance Company Limited
Towards the end of 2000, the relation ceased to exist and the four
companies are, at present, operating as independent companies.
The Life assurance Corporation (AIC) was established on 01.09.1956 and had
been the sole corporation to write the life assurance business in India.
The Indian assurance industry saw a new sun when the assurance
Development Authority invited the applications for registration as assurors in
August, 2000. With the liberalization and opening up of the sector to private
players, the industry has presented promising prospects for the coming future.
The transition has also resulted into introduction of ample opportunities for the
professionals including Chartered Accountants.
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The Indian assurance industry is featured by the attributes:

Low market penetration;
 Ever-growing middle class component in population.

Growth of consumer
 Movement with an increasing demand for better assurance products;
 Inadequate application of information technology for business.
Adequate
 Fillip from the Government in the form of tax incentives to the assured,
etc.
The industry formations need to keep vigil on these characteristics of the

Indian market and formulate their strategies to entail maximum contribution to
the output of the sector.
The Indian life and non-life assurance business accounted for merely
0.42 percent of the world's life and non-life business in 1997. The figures of
the basic parameters of the industry's performance viz. assurance Density
and assurance Penetration also are evident of the hitherto existing low-yield
Indian market conditions.
The term "assurance Penetration" broadly measures the contribution of
the assurance industry in relation to a nation's entire economic productivity.
The figure of premium vis-à-vis the GDP of 1999 stood at 0.54 percent for
non-life assurance business and 1.39 percent for the life assurance business.
The term "assurance Density" reflects the assurance purchasing power. The
premium per capita in India amounted to US $ 2.40 for assurance and US $
6.10 for life assurance in 1999 but with the deregulation of the sector, a sea
change in the scene is most likely.
The assurance sector in India has come a full circle from being an open
competitive market to Nationalization and back to a liberalized market again.
Tracing the developments in the Indian assurance sector reveals the 360-
degree turn witnessed over a period of almost two centuries.
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W CHARSTRUCTURE OF THE ASSURANCE INDUSTRY
The structure of the assurance industry comprises of the Operating

department, Administrative department and the finance department. The
Operating Department generally performs the basic functions pertaining to the
designing of products, marketing thereof, servicing the insured, the insured,
management of portfolio, etc.
The Administrative Department looks after the day-to-day affairs of the

company. The Finance Department backs the operations and administration of
the company by accounting for the transactions, streamlining the flow of funds,
materializing the management decisions, etc.
The Administration Department as well as the Finance Department,

usually, functions through in-house setup. The Finance Department functions in
the areas of accounting, financial and management reporting, budgeting and
controlling, etc. and thus renders enormous scope for finance professionals. The
new entrants in the assurance sector are likely to call for the services of the
Chartered Accountants for their financial setup requirements. The Chartered
Accountants have engaged themselves in the audit of assurance Companies
since long. With the transition in the insurance sector, the horizons for their
contribution have broadened.
There has, emerged a king-size pool of opportunities that the Chartered

Accountants can explore and apply their professional wisdom and experience to.
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BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

1. Risk Perception and Evaluation:
The fundamental function of an insurer is to provide a cover against the

detriment caused to the insured due to the happening of certain specified and
agreed events. Thus, prior to providing such umbrella through a product, the
insurer has to assess the risk involved in the transaction. The insurer has to
identify the element of risk prevalent in the concerned industry or a particular
unit. The perception of risk requires the study of variables through various
methods including the application of scientific and statistical techniques and
correlation thereof with the industry or unit under study in light of their basic
environmental and infra-structural characteristics.
2. Designing the Insurance Product:

On the basis of the risks perceived, the insurer develops a product to cover
the stipulated risks. While designing an insurance product, an insurer decides
its cost to be charged from the insured in the form of premium, reduction
thereof in certain cases like not lodging any claim during the previous covered
period(s), suggesting the implementation of risk-mitigating measures, etc.
3. Marketing of the Product:
The core function of the marketing force of an insurance company is to

generate awareness about the insurance products among the target market. But
in the Indian scenario, where the insurance penetration is too low as compared to
the other nations, the marketing force needs to perform the pro-active role in
developing an insurance culture. It is through the efficiency of the sales force of
an insurance company that the desirability and the success of a product are
determined.
Adequate knowledge of the insurance industry, products and the modalities

attached therewith. Further, the marketing personnel should be adequately
backed by the back-office setup.
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4. Selling of the Products:
The term selling in the context of Assurance industry connotes the

issuance of policies to the applicant proposer. The Assurance basically embodies
the covenant between the insurer and the insured wherein the former agrees to
indemnify the latter for the loss caused to him on the happening of the certain
agreed events up to a specified limit. The life insurance policy generally contains
the agreement whereby the insurer agrees to pay to the insured or the
beneficiary of the policy an agreed amount on the expiry of the term of the policy
or in the event of the death of the insured respectively. The additional benefits in
the shape of Riders viz. Accidental Death Benefit, Double Sum Assured, Critical
Illness benefits; Waiver of Premiums, etc. can also be appended with the policy
on the payment of an additional premium.
5. Management of Portfolio:
The management of the portfolio includes the assessment of requirement

of funds, identification of various sources of finance, the evaluation of the
sources in the light of their cost, availability, timing, etc., reconciling the features
of various sources with the needs of the company and the selection of
appropriate conjunction of sources. The insurer possesses huge amount of
funds, which need proper management. The management of the portfolio of an
insurance company requires the identification of investment avenues, evaluation
thereof and the selection of the most appropriate mix of alternatives where the
funds of the company can be invested. The selection requires the knowledge of
finance related functions and techniques apart from the in-depth know of the
patterns of requirement of funds in the company as well as in the industry as a
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whole.
TYPES OF ASSURANCE SCHEMES-
There are a wide variety of assurance schemes that cater to your needs,
whatever your age, financial position, risk tolerance and return expectations.
Whether as the foundation of your investment programmed or as a supplement,
assurance schemes can help you meet your financial goals?
(A) By Structure
Open-Ended Scheme
These do not have a fixed maturity. You deal with the assurance for your
investments and redemptions. The key feature is liquidity. You can conveniently
buy and sell your units at Net Asset
Value(NAV) related prices, at any point of time.
Close-Ended Schemes
Schemes that have a stipulated assurance period (ranging from 2 to 15

years) are called close ended schemes. You can invest in the scheme at the time
of the initial issue and thereafter you can buy or sell the units of the scheme on
the stock exchanges where they are listed. The market price at the stock
exchange could vary from the schemes on account of demand and supply
situation, unit holders' expectations and other market factors.
One of the characteristics of the close-ended schemes is that they are

generally traded at a discount to NAV; but closer to maturity, the discount
narrows. Some close-ended schemes give you an additional option of selling
your units to the assurance company through periodic repurchase at NAV related
prices. SEBI Regulations ensure that at least one of the two exit routes are
provided to the investor under the close ended schemes.
Interval Schemes
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These combine the features of open-ended and close-ended schemes.

They may be traded on the stock exchange or may be open for sale or
redemption during predetermined intervals at NAV related prices.
(B) By Investment Objective
Growth Schemes
Aim to provide capital appreciation over the medium to long term. These
schemes normally invest a majority of their funds in equities and are willing to
bear short term decline in value for possible future appreciation.
These schemes are not for investors seeking regular income or needing
their money back in the short term.
Ideal for:
• Investors in their prime earning years.

• Investors seeking growth over the long term.
Income Schemes
Aim to provide regular and steady income to investors. These schemes

generally invest in fixed income securities such as bonds and corporate
debentures. Capital appreciation in such schemes may be limited.
Ideal for:
• Retired people and others with a need for capital stability and regular
income.
• Investors who need some income to supplement their earnings.
Balanced Schemes
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Aim to provide both growth and income by periodically distributing a part

of the income and
Capital gains they earn. They invest in both shares and fixed income
securities in the proportion indicated in their offer documents. In a rising stock
market, the NAV of these schemes may not normally keep pace or fall equally
when the market falls.
Ideal for:
• Investors looking for a combination of income and moderate growth.
Money Market / Liquid Schemes
Aim to provide easy liquidity, preservation of capital and moderate income.

These schemes generally invest in safer, short term instruments such as treasury
bills, certificates of deposit, commercial paper and inter bank call money. Returns
on these schemes may fluctuate, depending upon the interest rates prevailing in
the market.
Ideal for:
• Corporate and individual investors as a means to park their surplus funds
for short periods or awaiting a more favorable investment alternative.
Other Schemes-
Tax Saving Schemes (Equity Linked Saving Scheme - ELSS).
Special Schemes-
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• Fixed Maturity Plans

• Exchange Traded Funds (ETFs)
• Capital Protection Oriented Schemes
• Gold Exchange Traded Funds (GETFs)
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COMPANY PROFILE
OF
THE NEW INDIA ASSURANCE COM. LTD.
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COMPANY PROFILE
About - New India Assurance Company Limited

New India Assurance Company is a leading global insurance group, with
offices and branches throughout India and various countries abroad. The
company services the Indian subcontinent with a network of 1068 offices,
comprising 26 Regional offices, 393 Divisional offices and 648 branches. With
approximately 21000 employees, New India has the largest number of specialist
and technically qualified personnel at all levels of management, who are
empowered to underwrite and settle claims of high magnitude.
New India has been rated "A-" (Excellent) by A.M.Best Co., making it the
only Indian insurance company to have been rated by an international rating
agency. Rating based on following factors:
Superior Capital Position
Strong Operating Performance
Only Company to develop significant International operations, long record
of successful trading outside India.
Shri M. D. Mallaya, Chairman & Managing Director, Bank of Baroda, has
been appointed as Director The New India Assurance Company limited.
Since its inception in 1994, has emerged as TATA Financial Services Inc.
One of India's leading financial managing assets of a large investor base. The
fund offers a range of investment options, which include diversified and sector
specific equity schemes, fund of fund schemes, hybrid and monthly income
funds, a wide range of debt and treasury products and offshore funds.
New India Assurance Company Limited follows a long-term, fundamental
research based approach to investment. The approach is to identify companies,
which have excellent growth prospects and strong fundamentals. The
fundamentals include the quality of the company's management, sustainability of
its business model and its competitive position, amongst other factors TATA
Financial Services Inc. Company has one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest
in.
TATA Financial Services Inc. Strives to provide transparent, ethical and
research-based investments and wealth management services.
International presence
Overseas operations commenced in 1920. Operations in 24 countries in

the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies
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and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs.

892.35 cores in the year 2004-05, which accounts for more than 80% of total
overseas premium in India.
Company Strengths
Largest number of Offices - In India and Abroad Trained and technically

qualified staff 1068 fully computerized offices across India. "A-" (Excellent) rating
by A.M.Best & Co (Europe) First domestic company to be rated by an
International Rating Agency Rating based upon following factors: Superior capital
position Strong operating performance Strong market position Only company to
develop significant International operations, long record of successful trading
outside India
Pioneers
• First company to set up an Aviation Insurance Department in 1946.

• First company to handle the Hull Insurance requirements of the Indian
Shipping Fleet.
• First company to establish its own Training School.
• First company to introduce the concept of 'Model Office Training'.
• First company to create department in Engineering insurance.
Vision
To be the most trusted name in investment and wealth management, to be
the preferred employer in the industry and to be a catalyst for growth and
excellence of the asset management business in India. The vision is to make
assurance Company the dominant new insurer in the life insurance industry. This
it hopes to achieve through our commitment to excellence, focus on service,
speed and innovation, and leveraging our technological expertise. The success
of this organization will be founded on its strong focus on values and clarity of
purpose. These include:
• Understanding the needs of customers and offering them superior products and
• To be the first choice insurer for customers

• To be the preferred employer for staff in the insurance industry.
• To be the number one insurer for creating shareholder value.
• Leveraging technology to service customers quickly, efficiently and conveniently
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Mission
GOAL- THE PHILOSOPHICAL GOAL.
The assurance Company collects money in the form of premium from
individuals (A, B, C & D). The money collected from people is used to meet one
person's calamity.
The assurance Company enters into the process of canalizing by
disbursing the amount collected into the command economy. Thus a significant
part of the activities of the insurance industry of an economy entails mobilization
of domestic savings and its subsequent disbursal to investors.
The main risk faced by the assurance company is when all the Assurors
claim for the reimbursement at the same time. This situation is very rare to occur,
and is one of the major threat that the assurance company faces in its business
operations.
To provide financial security to individuals, trade, commerce and all other
segments of the society by offering insurance products and services of high
quality at affordable
To consistently pursue investor's wealth optimization by achieving superior
and consistent investment results. To develop general insurance Business in the
best interest
Creating a conducive environment to hone and retain talent.
 Providing customer delight.

 Institutionalizing system-approach in all aspects of functioning.
 Upholding highest standards of ethical values at all times.
Values
 Highest priority to customer needs
 High standards of public conduct
 Transparency in operations.
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Company Performance
New India Assurance Company is the largest non-life insurer in
India. The financial strength of the Company is reflected from the
following figures:-
(Rs. in Crores)
Gross
Gross Net Total
Premium Net Profit Net Worth
Year Premium Premium Assets
(Outside (Global) (Global)
(in India) (Global) (Global)
India)
2007-2008 5276.91 874.55 4914.28 1401.13 31944.14 6972.80
2006-2007 5017.20 919.58 4751.76 1459.95 27444.57 5972.55
2005-2006 4791.49 884.05 4342.66 716.38 27025.58 4706.87
2004-2005 4210.81 892.35 3895.11 402.23 19827.19 4161.69
2003-2004 4045.68 875.79 3634.94 590.21 17510.44 3735.22
2002-2003 3921.24 891.55 3516.43 255.81 12984.75 3404.00
2001-2002 3512.33 685.73 3068.23 142.00 12273.02 3189.39
2000-2001 3041.17 451.88 2671.48 173.54 8292.00 3067.39
1999-2000 2979.53 327.00 2477.45 287.29 7664.71 2859.86
1998-1999 2729.48 288.16 2186.92 375.00 6727.72 2524.23
1997-1998 2433.73 254.04 1945.00 470.94 6071.67 1462.52
BUSINESS FOCUS
The business focus is to position themselves as a leading corporate &

retail insurance company catering to the needs of our customers.
At General Assurance, the guiding principles are customer service and client
satisfaction. All efforts are directed towards understanding the culture, social
environment and individual insurance requirements of the customers so that they
can cater to their varied needs.
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They are working closely with leading intermediaries including corporate

agents; motor dealers; agents; banks; associations and other intermediaries to
focus on the corporate and retail business.
Assurance leverages the customer base and expertise of Tata Auto Ltd.
They are technology driven and strive to set up world-class technological

infrastructure. This will include a renowned insurance software; networking of all
offices and intermediaries as well as the ability to interface with customers via all
media.
Overview-
The new India assurance Co. charted a growth of 73.04% during the year
with the asset under management (AUM) as on March 31, 2008 increasing to Rs.
44863.89 crores from a level of Rs. 21,047 crores as on March 31, 2007. Debt &
Cash Schemes, together, grew by around 90% in this fiscal year. The Investor
base of the Fund grew from 11, 45,345 to 18, 90,102 in this fiscal year.
The new India assurance Co.- 3 & 5 Year Plan, a close ended capital
protection oriented scheme was launched on June 20, 2007 with an objective to
seek capital protection by investing in high quality fixed income securities
maturing in line with the tenure of the scheme and seeking capital appreciation
by investing in equity and equity related instruments.
Also, The new India assurance Co. Value, a 3-year close ended
diversified equity scheme with an automatic conversion into an open-ended
scheme upon maturity to generate consistent long-term capital appreciation by
investing predominantly in equity and equity related securities by following value
investing strategy, was launched on January 17, 2008.
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The new India assurance Equity Fund – Plan A & B, open-ended

diversified equity scheme with an objective to generate long-term growth of
capital, by investing predominantly in a diversified portfolio of equity and equity
related securities in the domestic and international markets, was launched
September 17, 2007. The new India assurance Co. Life Special Situations an
open-ended diversified equity scheme with an objective to generate long-term
capital by investing in a portfolio of equity and equity related securities. The
scheme would follow an investment strategy that would take advantage of
Special Situations & contrarian investment style.
The scheme was launched on December 17, 2003. The new India
assurance Co. Life Long Term Advantage Fund- Series 1; a 3-year close ended
Small and Midcap equity scheme with an automatic conversion into an open-
ended scheme upon maturity which seeks to generate consistent long-term
capital appreciation by investing predominantly in equity and equity related
securities of companies considered to be small and mid cap.
The Scheme may also invest a certain portion of its corpus in fixed income
securities including money market instruments, in order to meet liquidity
requirements from time to time. The scheme was launched on May 31, 2007. We
also launched 35 Fixed Term Plans (FTPs) of various maturities in this fiscal
year. On the Debt side most of the mobilizations were concentrated in FTPs.
Consistency:
We strive to deliver consistent results through our value-based investing
methodology, keeping alive the credo of the late doyen of the TATA Group, Mr. Sir
Dorab Tata that money received from the people should go back to them
several times over.
Flexibility:
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The new India assurance offers investors a broad range of managed

investment products in various asset classes and risk parameters, with
operational flexibility to suit their varied investment needs.
Stability:
Our commitment to the highest quality of service and integrity is the
foundation upon which we build trust with our clients.
Service:
We offer a wide range of services to assist investors have a fulfilling and
rewarding financial planning experience with us. We have designed our services
keeping in mind the needs of our investors, giving them a smooth and hassle-
free financial planning process.
A Proud Pedigree
The new India assurance is a part of the Govt. of India, one of India's
largest and most respected industrial groups, renowned for its adherence to
business ethics.
The Group has always believed in returning wealth to the society that it
serves. Thus, nearly two-thirds of the equity of Tata group, the Group's promoter
company, is held by philanthropic trusts, which have created a host of national
institutions in the natural sciences, medical care, energy and the arts. The trusts
also give substantial annual grants and endowments to deserving individuals and
institutions in the areas of education, healthcare and social uplift.
By combining ethical values with business acumen, globalization with
national interests and core businesses with emerging ones, the Tata Group aims
to be the largest and most respected global brand from India. This way, it fulfils
its long-standing commitment to improving the quality of life of its stakeholders.
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Leadership with Trust

Our purpose at The new India assurance is to improve the quality of life of
the communities we serve. We do this by attaining leadership positions in sectors
of national economic significance, to which the Group brings a unique set of
capabilities.
This requires us to grow aggressively in focused areas of business.
Our heritage of returning to society what we earn evokes trust among
consumers, employees, shareholders and the community. It is an ongoing
process, continuously enriched by the formalization of the high standards of
behavior that we expect from employees and companies.
The Tata name is a unique asset, representing leadership with trust.
Leveraging this asset to enhance Group synergy and becoming globally
competitive is the route to sustained growth and long-term success.
RURAL-URBAN MIX CUSTOMER VIEW”S

It must be borne in mind that India is a predominantly rural country and will
continue to be so in the near future. New players may tend to favor the "creamy"
layer of the urban population. But, in doing so, they may well miss a large chunk
of the insurable population. A strong case in point is the current business
composition of predominant market leader – the Life Insurance Corporation of
India. The lion's share of its new business comes from the rural and semi-rural
markets. In a country of 1 billion people, mass marketing is always a profitable
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and cost-effective option for gaining market share. The rural sector is a perfect
case for mass marketing.
Competition in rural areas tends to be "kinder and gentler" than that in
urban areas, which can easily be termed cutthroat And the generally smaller
policy amounts in rural areas would be more than offset by the higher volume
potential in these areas in contrast with urban areas. Identifying the right agents
to harness the full potential of the vibrant and dynamic rural markets will be
imperative.
Rural insurance should be looked upon as an opportunity and not an
obligation. A smaller bundle of innovative products in sync with rural needs and
perception and an efficient delivery system are the two aspects that have to be
developed in order to penetrate the rural markets.
History-
History of The New India Assurance Company Limited-
Incorporated on July 23rd, 1919 Founded by Sir Dorab Tata in 1919, New
India is the first fully Indian owned insurance company in India.
New India was a pioneer among the Indian Companies on various fronts,
right from insuring the first domestic airlines in 1946 to satellite insurance in
1980. The latest addition to the list of firsts is the insurance of the INSAT-2E.
With a wide range of policies New India has become one of the largest
non-life insurance companies, not only in India, but also in the Afro-Asian region.
These consisted of LIC, GIC and public-sector bank backed Indian mutual
funds. SBI Mutual fund was the first of this kind. 1981 saw the entry of private
sector players on the Indian Mutual Funds scene. Mutual fund regulations were
revised in 1990 to accommodate changing market needs.
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With the Sensex on a scorching bull rally, many investors prefer to trade
on stocks themselves. Mutual funds are more balanced since they diversify over
a large number of stocks and sectors.
In the rally of 2000, it was noticed that mutual funds did better than the
stocks mainly due to prudent fund management based on the virtues of
diversification.
First Phase – 1919-85 Stabilized

Unit Trust of India (UTI) was established on 1919 by an Act of
Parliament. It was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India. In 1928 UTI
was de-linked from the RBI and the Industrial Development Bank of India (IDBI)
took over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700 crores of assets under management
Second Phase – (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec
87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov
89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004 crores.
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Third Phase – (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were to be registered
and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in July 1993
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign
mutual funds setting up funds in India and also the industry has witnessed
several mergers and acquisitions. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with
Rs.44, 541 crores of assets under management was way ahead of other mutual
fund.
Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963
UTI was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with assets under management of Rs.29,835 crores as at
the end of January 2003, representing broadly, the assets of US 64 scheme,
assured return and certain other schemes. The Specified Undertaking of Unit
Trust of India, functioning under an administrator and under the rules framed by
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Government of India and does not come under the purview of the Mutual Fund
Regulations.
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Product Profile
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Product Profile
A. Products & Policy
1. Commercial Products Policy
1.1 Jewellers Block Policy
1.2 Bankers Indemnity Policy
1.3 Shopkeepers Policy
1.4 Marine Cargo Policy
1.5 Plate Glass Insurance
1.6 Special Contingency Policy
1.7 Neon Sign Insurance
1.8 Multi Peril Policy for L.P.G. Dealers
1.9 Fidelity Guarantee Insurance Policy
1.10 Marine Hull Policy
1.11 Aviation Insurance
2. Personal Products Policy

2.1. Pravasi Bharatiya Bima Yojana Policy
2.2. Personal Accident Policy
2.3. Householders Policy
2.4. Motor Policy
2.5. Money Insurance
2.6. Rasta Apatti Kavach (Road Safety Insurance)
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2.7. TV/VCR/VCP Insurance

2.8. Mobile/Cellular Phone Insurance
2.9. Other Personal Insurance
3. Liability Policy
3.1. Public Liability Policy
3.2. Products Liability Policy
3.3. Professional Indemnity Policy
3.4. Directors and Officers Liability Policy
3.5. Lift (Third Party) Insurance
3.6. Employers' Liability Policy
3.7. Carrier's Liability Insurance
3.8. Liability Insurance Act Policy
3.9. Golfers Indemnity Insurance
4. Industrial Policy
4.1. Fire Policy
4.2. Burglary Policy
4.3. Machinery Breakdown Policy
4.4. Electronics Equipment Policy
4.5. Consequential Loss Policy
4.6. Contractors All Risk Policy
4.7. Marine cum Erection / Storage cum Erection Policy
4.8. Advanced Loss of Profit / Delay in Startup Policy
4.9. Contractor Plant and Machinery Policy
4.10.Mega Package Policies
5. Social Policy
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5.1. Universal Health Insurance Scheme

5.2. Jan Arogya Bima Policy
5.3. Raj Rajeshwari Mahila Kalyan Yojana
5.4. Bhagyashree Child Welfare Policy
5.5. Janata Personal Accident Insurance
5.6. Student Safety Insurance
5.7. Ashrya Bima Yojana
5.8. Rural Insurance
THE TOTAL PRODUCT CONCEPT
The Total Product Concept (TPC), which implied that a product had three
levels of features and the consumption, was in totality.
LEVEL¬ 1:
Core Product:
In the Insurance Industry the core product is the policy that provides
protection to the consumers against the risks. This is the main reason for which
the Insurance Company is in existence. It provides protection by way of various
riders viz. Accidental Death Benefit, Double Sum Assured, Critical Illness
benefits, Waiver of Premiums, etc.
On the basis of the risks perceived, the insurer develops a product to
cover the stipulated risks. While designing an insurance product, an insurer
decides its cost to be charged from the insured in the form of premium, reduction
thereof in certain cases like not lodging any claim during the previous covered
period(s), suggesting the implementation of risk-mitigating measures, etc. The
features of a product should be flexible enough to provide for the determination
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of premiums, rebates, additional premiums, etc. depending upon the risk

benchmarks as determined.
LEVEL¬ 2:
Formal Product:
When the customers expectations grow synchronized with increased
competition the marketer offers some tangibility to the existing core product to
differentiate itself from the competitors.
1. Brand:
In order to distinguish itself from the competitors, the Insurance Company
gives a brand name to its policy. This brand name gives an identity to the
product (policy) offered by the insurance company.
2. Attributes:
Just giving a brand name to the policy may not be enough for the
insurance company to distinguish its offerings. The product offering must also
have attributes that will attract the consumers to take the policy. The attributes
must suit and satisfy the needs wants and desires of the various types of
consumers that the company is targeting at.
Thus ICICI's investment plans suit the consumers who want to secure
their family through insurance or invest money for growth. And its retirement
plans suit the ones who want to enjoy their fruits of labor after retirement or want
to go for a dream vacation.
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3. Instruction Manual:
To make the service consumption easier for the consumers, the instruction
manual with the policy becomes very important. The instruction manual gives an
overview to the consumers as to how to go on with the filling of the application
form. It also gives information about the various formalities that have to be
adhered to at the time of submission of the application form.
LEVEL¬ 3:
Augmented product:
With further expectation of the consumer – again synchronized with
intense competition – marketers offer more and more intangible features.
1. Post-sales service:
The insurance company must not consider it as the end of the service
providing the consumer has taken once the policy. The functions of an insurance
company include the provision of the Post-sales services to the consumer.
Among the services rendered by the insurance company is the service of
processing and release of claims. The insurance company needs to verify the
accuracy of the facts presented in relation to the insurance claim and the
documents produced in support thereof.
2. Delivery points:
The delivery points can be the branches that the insurance company has
at the discretion of the of the consumers' location. The delivery points can also
be mobilized with the presence of the insurance agents. The agents can cover a
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wide area and get in contact with the consumers to provide the service to him.
3. Customer education and training:

The customer education and training is very important for the insurance
company. The agents play a vital role in this context. The customer can be
educated on various benefits that can be accrued in his future life by taking a
policy. This is where the agents' communication skills come into the picture. The
insurance company has to play an active role in enabling the agents to impart
the best customer education through appropriate training given to the agents.
4. Customer complaint management:

Customer complaints management with regards to delay in discharge of
claims must be effectively handled by the insurance company to have
competitive edge over its competitors. The complaint management will help the
company to get the consumers closer to the organization as the consumers feel
that their grievances are taken care of.
Thus LIC has an online feedback system where the consumers of the
policy can register their grievances.
5. Payment options:
The insurance company can offer payment options to the consumers with
regards to payment of premium – the mode of payment and the period within
which the premium amount has to be paid.
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* India’s Offices
Corporate
Corporate Head office Address:

The New India Assurance Co. Ltd.
87, M.G. Road, Fort,
Mumbai 400 001.
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Domestic offices
Ahmedabad
Bangalore
Baroda
Bhopal
Bhubaneshwar
Chandigarh
Chennai
Coimbatore
Delhi RO I
Delhi RO II
Ernakulam
Guwahati
Hyderabad
Jaipur
Kanpur
Kolkata
Ludhiana
Mumbai RO I
Mumbai RO II
Mumbai RO III
Mumbai RO IV
Nagpur
Patna
Pune
Surat
Vishakhapatnam
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Overview of Product-
At The new India assurance Company, we believe that your investment
needs depend on personal and financial goals. Identifying your financial goals is
the key to achieving the big things in your life, be it your child's education or a
carefree and comfortable retired life.
After identifying and defining your financial goals, you now need to plan
for each of them in an organized and a professional way. Investment experts
around the world advise instruments like equity funds and stocks for long-term
(more than 5 years), income funds for medium-term and liquid funds for short-
term needs.
The investment matrix here depicts the entire available variety of
investment options. Those at the top provide for a greater opportunity for long-
term capital growth while those at the bottom take care of current income and
reasonable return & liquidity. Tata Fund offers a wide range of funds for different
investment instruments designed to cater to your individual profile and life-stage.
Systematic Investment Plan

The Systematic Investment Plan (SIP) is a simple and time honored
investment strategy for accumulation of wealth in a disciplined manner over long
term period. The plan aims at a better future for its investors as an SIP investor
gets good rate of returns compared to a one time investor.
A specific amount should be invested for a continuous period at regular
intervals under this plan. SIP is similar to a regular saving scheme like a
recurring deposit. It is a method of investing a fixed sum regularly in a mutual
fund.
SIP allows the investor to buy units on a given date every month. The
investor decides the amount and also the mutual fund scheme.
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While the investor's investment remains the same, more number of units
can be bought in a declining market and less number of units in a rising market.
The investor automatically participates in the market swings once the option for
SIP is made.
SIP ensures averaging of rupee cost as consistent investment ensures
that average cost per unit fits in the lower range of average market price. An
investor can either give post dated cheques or ECS instruction and the
investment will be made regularly in the mutual fund desired for the required
amount. SIP generally starts at minimum amounts of Rs.1000/- per month and
upper limit for using an ECS is Rs.25000/- per instruction. For instance, if one
wishes to invest Rs.1, 00,000/- per month, then they need to do it on four
different dates.
Fund Product are divided in following scheme
Pure value fund Income plus

EF Balance fund Income fund
Frontline Eqt. Fund 95'Fund Short term opportunity
Midcap fund Monthly Income fund
Tax Relief -96 Asset allocation fund Dynamic Bond fund
Special situation fund Protection oriented Gilt plus liquid plan
Inter Equity fund fund Govt. security fund
Top 100 fund Liquid plus
Advantage fund Term advantage fund Short term fund
series-1 Floating rate fund
Long term advantage fund Cash fund
Dividend yield plus
Tax plan
Index fund
Commodity equity fund
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TYPES OF SCHEMES
Wide variety of Fund Schemes exists to cater to the needs such as
financial position, risk tolerance and return expectations etc.
The table below gives an overview into the existing types of schemes in
the Industry
FREQUENTLY USED TERMS
Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its
liabilities. The per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the Valuation Date.
Sale Price
Is the price you pay when you invest in a scheme? Also called Offer Price.
It may include a sales load.
Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it
may include a back-end load. This is also called Bid Price.
Redemption Price
Is the price at which open-ended schemes repurchase their units and
close-ended schemes redeem their units on maturity. Such prices are NAV
related.
Sales Load
Is a charge collected by a scheme when it sells the units. Also called,
'Front-end' load. Schemes that do not charge a load are called 'No Load'
schemes.
Repurchase or 'Back-end’ Load
Is a charge collected by a scheme when it buys back the units from the
unit holders.
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Last 10 year
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PERFORMANCE HIGHLIGHTS FOR THE YEAR 2002-03

2002-03 was yet another year of impressive growth and improved
results.
• GLOBAL GROSS PREMIUM

New India posted a total Global premium of Rs.4812.79 Crs (US $1.01
billion) achieving a growth rate of 14.64%
• DOMESTIC
Indian Direct Premium of Rs.3921.24 Crs as against Rs.3512.33 Crs
registering an accretion of 11.64%. In absolute term Rs.408.91 Crs were added.
• FOREIGN
Outside India a premium of Rs.891.55 Crs was booked in the year 2002-
03 as against Rs.685.73 Crs clocking a growth of 30.01%
• INCURRED CLAIMS
Ratio of incurred claims to net premium dropped from 83.28%
(Rs.2555.14 Crs.) to 76.77% (Rs.2699.51 Crs)
• OPERATING EXPENSES
Operating expenses have shown a marginal increase of 0.76% i.e. from
24.69% to 25.45% of the net premium.
Quantum increase is of Rs.137 Crs. This includes provision of Rs.43 Crs
towards leave encashment and Rs.73 Crs for doubtful debts.
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Acquisition costs have accounted for Rs.193 Crs as against Rs.80 Crs of
previous year due to steep increase of commission payment. Commission
percentage to net premium increase to 5.49% from 2.60%.
The increase in commission outgo due to revision in commission rate and
introduction of new categories of intermediaries in the market.
• MANAGEMENT EXPENSES
Company continues to be within section 40C limits. Against allowable
expenses of Rs.767 Crs (19.56% of GDP) the actual expenses are Rs.727 Crs.
(18.53% of GDP)
• SOLVENCY MARGIN
Solvency Margin of the Company is 3.35 times of required margin.
(Against RSM of Rs.906 Crs. As ASM is Rs.3126 Crs)
• NET FINANCIAL RESULTS

Net underwriting loss after credit of investment income (Less provision)
apportioned to policyholders has come down from Rs.88 Crs to Rs.24 Crs.
The main reason being decrease in incurred claims in Motor Dept. from 119% to
85%.
Net Investment income of Rs.762 Crs. (includes Rs.466.17 Crs.
Apportioned to Policyholders and Rs.295.97 Crs to Shareholders) could off set
the underwriting deficit. Net Profit after tax has shown an increase of 80% i.e.
from Rs.142 Crs to Rs. 255.81 Crs.
Net worth per share appreciated to Rs.340.40 from Rs.318.94.
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Total Technical Reserve (unexpired risk reserve plus provision for outstanding
claims duly valued by Appointed Actuaries as stipulated by IRDA) stands at
Rs.5737.51 Crs., an increase of Rs.763.97 Crs over Rs.5023.57
DIVIDEND
Rs. 40 crores (40%) has been declared as dividend, which is highest quantum
paid.
Financial Rating
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Company is rated as 'A' (Excellent) by A.M. Best & Co. for the fourth year in
succession.
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PLANS FOR 2003-04

Domestic-
For the year 2003-04 we have planned for a target of Rs.4100 Crs.
Foreign-
The premium objective for 2003-04 is aimed at Rs.935 Crs gross.
Information Technology
New India is all set to embark on the implementation of GENISYS
ENTERPRISE- the customized enterprise solution being procured from CMC.
GENISYS ENTERPRISE is an umbrella application that will address to enterprise
wide requirements of the Company.
Wide Area Network connecting all our Regional Offices (except Nagpur)
with Head Office through leased lines is already in place. Currently being used
for voice transfer and data transfer. Today, the database across the organization
is a distributed one. With GENISYS ENTERPRISE, the data from operating
offices will be replicated at a repository at Regional Office and through WAN
connectivity, at the Central repository at the Head Office. GENISYS
ENTERPRISE WILL ENABLE Operating Office data exchanges, data
integration with lateral and higher office and enterprise wide data consolidation. It
will enable business intelligence and multi-dimensional analysis of data.
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Objective
Objective of the project-
Primary Objective-
"A Study Of Derivative Research On

” CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT “
Secondary Objectives-
1. Sales promotion of The New India Assurance Fund Products.
2. To convert the normal savers into Investors.
3. To identify the potential of Mutual fund product in today's environment.
4. Compare the product of The New India Assurance Fund with different Product
& to recommend the suggestion on The New India Assurance Fund products.
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Scope of Study
Scope of the work-

This chapter covers the scope of the research project. The time frame in
which the research study was conducted, the area specified for the project, the
sample interviewed.
Scope-
The scope is the boundaries with in which the researcher is to be
conducted. The scope of the research ensures that the researcher does not
deviate in term of the data collection, does not consume time in the excess that
may not be acceptable to the company. The scope also specifies what
information to be collected form the sample which ensures quality of the data.
The samples to be interviewed by the questionnaire are defined as
Investors in Udaipur and Nathdwara region.
The scope of the "sample frame" which is the existing list of investors in
Udaipur and Nathdwara region.
The sample for the study at hand were defined with respect to the
following aspect-
Nature of samples-
1. Location of the samples was restricted to the Udaipur and Nathdwara region.
2. Sample size – 100
3. The data was collected between 01/07/08 to 31/08/08.
4. Information about product as mention in the product profile.
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Research Methodology
Research methodology-
Research methodology is a way to systematically solve the research
problem. It may be understood as the science of studying how research is done.
Research in the common parlance refers to a search for knowledge.
Research as the systematic & objective analysis & recording of controlled
observation that may lead to the generalization principle or the theories, resulting
in the prediction & possibly ultimate control of events.
Research design-
"A research design is the logical & systematic planning & directing of
a piece of research."
It is the plan, structure & strategies of investigation conceived so as to
obtain answer to research question. There is the following type of research
design-
1. Exploratory Research Design
2. Descriptive Research Design
1. Exploratory Research Design-

An exploratory design aims at discovering more about various dimensions
of the research problem & its associated aspects. It aims at helping the
researcher to formulate a more precise & structured problem.
Descriptive research design-
Descriptive studies, concern themselves with describing the
characteristics of a particular individual, group, community or people. Descriptive
studies often help the researcher to do a lot of spade work & act as launch pads
of the further researcher. Descriptive research describes a behavior or condition.
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Importance of data-
Data-
Data is facts figures & other relevant materials, past and present serving
as bases for study and analysis. It is based on observation.
Data is primarily of two kinds-
1. Primary data
2. Secondary data
Primary data-
Data that is collected for the specific purpose at hand is called as primary
data. Data collected by the researcher specifically for the research
Primary data-
Data that is collected for the specific purpose at hand is called as primary
data. Data collected by the researcher specifically for the research project.
New gathered data to help and solve the problem at hand. As compared to
secondary data which is previously gathered data.
Primary data includes-

1. Questionnaire-The respondent is questioned directly about the
perception of the product by the designed questionnaire.
2. Secondary data-
Secondary data is the data that has been collected earlier for some purpose
other than purpose of the present study.
Data obtain indirectly from source such as the book or computer database.
Data that have already been collected for some purpose other than the
current study.
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Secondary data includes-

1. Reference books: Every research study has its theoretical and practical part.
Theory part is usually compiled by reference of various books on concern topic.
2. Company records- The New India Assurance Com., Udaipur.
3. Magazine- Daksh.
Sample design –
Once the researcher has formulated the problem and developed a
research design including the questionnaire, he/she has to decide whether the
information is to be collected from all the people comprising the population.
The method used for the sampling is the Non probability sampling. Non
probability samplings are of following types-
1. Purposive or Judgmental sampling
2. Convenience or Accidental sampling
3. Quota sampling
4. Snow- balling
From the above methods the Purposive or Judgmental sampling method
was used for this project.
Purposive Sampling-
In this method, the sampling elements are selected deliberately, based on
certain predetermine criteria or judgments of the researcher. It is this purposeful
selection of element that gives it the name 'purposive sampling'.
Important terms-
1. Population- The population is the total of elements about which some
information is desired and inferences are to be drawn. Population is the target
group to be studied.
2. Sample- The term sample refers to that group of element of the population
specifically selected for study, so as to find out something about the population
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from which is taken. A sample is an intelligently & deliberately selected sub-set of

the population.
3. Sampling frame- It is the list, map or other specific information of the
sampling units that furnishes enough detail regarding all population element for a
specific sampling scheme. It is the list of all sampling units. The sampling frame
is constructed by the researcher specifically for his study or may be some
existing list of the population.
Sample size-
The size of the population from which the sample is to be drawn determines the
sample size required for a representative sample. A sample must be small
enough to prevent any uncalled costs and large enough to minimize the error to a
certain level.
Sample size of this study is 100 respondents-
30% of the sample is working in banks and business.
20% of the sample is working in profession job.
50% of the sample is young generation.
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Information & Analysis

Following question for analysis of research
1. Do you interested in investment?
A. Yes B. No,
INTERPRETESION-
Today’s each and every person, who are doing and related to business,
farmer, education and youth are also interested in investment plan.
According to my questionnaires today's 97% to 99% interested in
investment plan.
2. In which Investment do like and why?

A. NSC B. FD.
C. Mutual Fund D. In Share Market
INTERPRETATION-
The 3% people interested in NSC, 25% to 60% people interested in Fixed
Deposit, 35% to 85% peoples are interest in Mutual fund and Share Market
Schemes.
3. Why?
A. Earn Money B. Saving Money
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INTERPRETETION-
80% to 90% people said mutual fund investment is a better earning
instrument others instruments like Banking services and post office services,
And in Udaipur region 50% people invest money in mutual fund to save money
and get a good fixed interest rate like debt and balanced Market schemes.
And 15% to 20% people said mutual fund is best for tax saving and others
functions.
4. How much return you are getting by this particular investment

portfolio?
A. 1 – 5% B. 6 -10% C. 11-20%
D. 21-30% E. 31-50% F. Above 50%
INTERPRETETION-
In India with information and unaware people earn only 01 to 05% interest
on investment. And 06% to 10% people earn in Debt and Balanced market
schemes. And Mass people earn 11 to 20% in Balance and Equity schemes in
mutual fund. And only 05 to 10% peoples earn 31% and above interest in mutual
fund because these person are very aware about market and time period
schemes.
5. Which type of risk you like in Mutual Fund?

A. High B. Moderate C. Low
INTERPRETATION-
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In Udaipur region 85 – 95% investor are like to face High risk in

Investment schemes, And 60 – 80% investor like moderate risk and 15 – 20%
are like very low risk in mutual fund and other investment plans.
6. Which type of "Fund" you are like in investment plan?

A. Equity Fund B. Balance Fund
C. Debt Fund D. Liquidity Fund
INTERPRETATION-
60 – 75% investors and mostly youth invest our money in Equity market
because in this market investors get high interest rate return like 15% to 15%,
And 80 – 93% investor invest our money in Balance market because this market
divide investors money in Equity and Debt market in following ratio 65 :35.
And 25 -35% investor invest in Debt market because this market based on
government securities like bond and its provide a fixed rate of interest rate such
as 7% to 8.05%.
7. In which Mutual Fund House/Product you would like to invest?

A. Banks B. Constructions
C. Gas and petroleum D. Power Companies
INTERPRETATION-
28 -35% people invest in Services companies like Banks and financial
institution, and 80 and above investor like construction companies like
Infrastructure com. And 50 – 65% investors invest in gas and petroleum
companies because they are basic buildings of Indian infrastructure, and only 30
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-50% invest in Power and Energy companies.
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8. For how much time you can put year your money investment?
A. Less than 1 yrs. B. 1-2 yrs. C.1-3 yrs.
D. 1-5 yrs. E. More than 5 yrs.
INTERPRETATION-
In Udaipur region investor invest our money for above table time period
such as 5 – 15% invest for less than one year, 20 -35% invest for 1 to 2 years,
50% investor invest for 1 to 3 years and maximum people invest money for 1 to 5
year because they want a reliable profit.
9. What "Mutual Fund" is a better investment plan other investment

plans? (According your experience)
A. Yes B. No
INTERPRETATION-
By the above graph of investor experience of the product 97.37% is better
than other investment instrument and the services of mutual fund intermediaries
is excellent and well.
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Finding & Conclusion
Findings-
The main findings of this research for the perception of product are as
followings-
1. Professional Management:
You avail of the services of experienced and skilled professionals who are
backed by a dedicated investment research team which analyses the
performance and prospects of companies and selects suitable investments to
achieve the objectives of the scheme.
2. Diversification:
Funds invest in a number of companies across a broad cross-section of
industries and sectors. This diversification reduces the risk because seldom do
all stocks decline at the same time and in the same proportion. You achieve this
diversification through a Mutual Fund with far less money than you can do on
your own.
3. Convenient Administration
Investing in a Fund reduces paperwork and helps you
Avoid many problems such as bad deliveries, delayed payments and
unnecessary follow up with brokers and companies. Funds save your time and
make investing easy and convenient.
4. Return Potential:
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Over a medium to long term, Funds have the potential to provide higher
return as they invest in a diversified basket of selected securities
5. Low Costs:
A relatively less expensive way to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial and
other fees translate into lower costs for investors.
6. Liquidity
In open-ended schemes, you can get your money back promptly Net Asset
Value (NAV) related prices from the Fund itself. With close-ended schemes, you
can sell your units on a stock exchange at the prevailing market price or avail of
the facility of repurchase through Funds at NAV related prices which some close-
ended and interval schemes offer you periodically.
7. Transparency:
You get regular information on the value of your investment in addition to
Disclosure on the specific investments made by your scheme, the proportion
invested in each class of assets and the fund manager's investment strategy and
outlook.
8. Flexibility:
Through features such as Systematic Investment Plans (SIP), Systematic
Withdrawal Plans (SWP) and dividend reinvestment plans, you can
systematically invest or withdraw funds according to your needs and
convenience.
9. Choice of Schemes:
A variety of schemes to suit your varying needs over a lifetime.
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10. Well Regulated:

All Funds are registered with SEBI and they function within the Provisions
of strict regulations designed to protect the interests of investors. The operations
of Funds are regularly monitored by SEBI.
Conclusion-
Competition will surely cause the market to grow beyond current rates,
create a bigger "pie," and offer additional consumer choices through the
introduction of new products, services, and price options. Yet, at the same time,
public and private sector companies will be working together to ensure healthy
growth and development of the sector. Challenges such as developing a
common industry code of conduct, contributing to a common catastrophe reserve
fund, and chalking out agreements between insurers to settle claims to the
benefit of the consumer will require concerted effort from both sectors.
The market is now in an evolving phase where one can expect a lot of actions in
coming days. The current impediments for foreign participation – like 26% equity
cap on foreign partner, ill defined regulatory role of IRDA (Insurance Regulatory
development.
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LIMITATION
Limitation-
All investments whether in shares, debentures or deposits involve risk:
share value may go down depending upon the performance of the company, the
industry, state of capital markets and the economy; generally, however, longer
the term, lesser the risk; companies may default in payment of interest/principal
on their debentures /bonds/ deposits; the rate of interest on an investment may
fall short of the rate of inflation reducing the purchasing power.
While risk cannot be eliminated, skillful management can minimize risk.
Funds help to reduce risk through diversification and professional management.
The experience and expertise of Fund managers in selecting fundamentally
sound securities and timing their purchases and sales help them to build a
diversified portfolio that minimizes risk and maximizes returns.
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BIBLIOGRAPHY & REFERENCE
Bibliography –
1. The product manual of Tata Mutual Fund.
2. The product manual of the other Investment instrument and others funds.
References –
1. References taken from the project officer.
2. Research methodology book of prof. S.P. Kasande.
Website visited-
1. www.niacl.com
2. www.nia25.com
3. www.newindia.co.in
4. www.newindiaassurancearuba.com
- 68 -
LTD
ANNEXURE
Investment- Questionnaire
The India Assurance Company ltd.

Name: - …………………………………………………………………
Age ………………………………………………………………………
Contact No. Mo. …………………………Ph...……………………….
Occupation ……………………………………………………………….
E-mail …………………………………………………………….……….
- 69 -
LTD
QUESTIONARY
What is Insurance?
 It is a system by which the losses suffered by a few are spread over many,
exposed to similar risks. Insurance is a protection against financial loss
arising on the happening of an unexpected event.
Why do I need insurance?

 Insurance is a hedge against the occurrence of unforeseen incidents.
Insurance products help you in not only mitigating risks but also helps you
by providing a financial cushion against adverse financial burdens
suffered.
What is Premium?
 Premium is the fixed amount of sum paid over the period by the insured to
the insurance company to take insurance policy and to complete the
contract of insurance.
What is underwriting?
 It is the consideration of material fact to asses the risk and to take the
decision whether to accept the risk for insurance contract and if so at what
rate of premium.
What is Reinsurance?
 It is an arrangement by which insurance companies spread their risk with
other underwriters or reinsurance companies called Reinsurance.
What are the policies available for covering the vehicles?

 There are two policies: Motor Liability Only Policy and Motor Package
Policy.
Is it mandatory to have insurance for plying vehicles on the public place?

 As per Motor Vehicle Act, it is mandatory to have Motor Liability only
Policy for covering Third Party.
What is covered under liability only policy?

 Owners' liability towards Third Party Personal Injury and Property
Damage.
What is “No Claim Bonus”?

 It is a special discount given on premium for every claim-free year.
- 70 -
LTD
What is Solatium Fund Scheme?

 It is the Scheme formed by the Central Govt. to provide compensation to
the victims of "Hit and Run” motor accident. The amount of compensation
is Rs. 25,000/- in the event of death and Rs. 12,500/- for grievous hurt.
What types of risks are covered under Fire Policy?

 Fire, Lightning, Explosion/Implosion, Aircraft Damage, Storm, Cyclone,
Riot, Strike, Malicious Damage, Impact Damage, Subsidence, Land Slide,
Missile Testing Operation, Bush Fire etc.
What is Marine (Cargo) Insurance?

 The insurance of goods in transit from one place to another by any single
mode or combined modes of sea, rail, road, air and inland waterways.
What is covered under Marine (Hull) Insurance?

 It covers loss/damage suffered to a ship and machinery of vessel.
What does Burglary Insurance cover?

 It covers theft of property after actual forcible and violent entry or exit.
Which policy best suits to household?

 Householder's Insurance Policy comprising of 10 sections that covers
most of the risks faced by a household.
Is there any comprehensive policy available for a shopkeeper?

 Shopkeeper’s Insurance Policy.
Is there any policy available to cover the accompanied baggage during

travel?
 Baggage Insurance.
Others.......………..………………………………………………………. . ……….
………………………………………………………………………………………….
…………………………………………………………………………………………….
I am very grateful to you.
- 71 -

Project On The New India Assurance Com. by Sandeep Vaishnav

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THE NEW INDIA ASSURANCE COM.

CUSTOMER VIEW FOR MARKET POTENTIAL IN INVESTMENT

(With special reference to NEW INDIA

In The Partial Fulfillment Of The

Under the guidance of:

Mr. Anil Chouhan Prof. Anil

SHREENATHJI INSTITUTE OF BIO-TECHNOLOGY AND

I believe that no success is possible without teamwork. Many

I would like to thank my God , My parents and the entire staff

sincerely express my gratitude to Mr. ANIL CHOUHAN, project

S. No. TOPIC PAGE NO.

5. OBJECTIVE OF THE COM. 47

8. INFORMATION & ANALYSIS 53

9. FINDINGS & CONCLUSION 57

Organization- “THE NEW INDIA ASSURANCE COMPANY, UDAIPUR.”

Reporting officer- Mr. ANIL CHOUHAN, MANAGER OF THE NEW

Faculty Guide- PROF. ANIL BHATT

Student Name- SANDEEP VAISHNAV

Objective- To study of Derivative Research on” CUSTOMER

1. Research design used was descriptive.

1. Performance liked by the respondents. The various performance

2. The Core features are as follows

1. New India Assurance Company Limited

2. National Insurance Company Limited

3. United India Insurance Company Limited

The Indian assurance industry is featured by the attributes:

 Ever-growing middle class component in population.

The industry formations need to keep vigil on these characteristics of the

W CHARSTRUCTURE OF THE ASSURANCE INDUSTRY

The structure of the assurance industry comprises of the Operating

The Administrative Department looks after the day-to-day affairs of the

The Administration Department as well as the Finance Department,

There has, emerged a king-size pool of opportunities that the Chartered

BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

The fundamental function of an insurer is to provide a cover against the

2. Designing the Insurance Product:

3. Marketing of the Product:

The core function of the marketing force of an insurance company is to

Adequate knowledge of the insurance industry, products and the modalities

4. Selling of the Products:

The term selling in the context of Assurance industry connotes the

The management of the portfolio includes the assessment of requirement

TYPES OF ASSURANCE SCHEMES-

Value(NAV) related prices, at any point of time.

Schemes that have a stipulated assurance period (ranging from 2 to 15

One of the characteristics of the close-ended schemes is that they are

These combine the features of open-ended and close-ended schemes.

(B) By Investment Objective

• Investors in their prime earning years.

Aim to provide regular and steady income to investors. These schemes

Aim to provide both growth and income by periodically distributing a part

• Investors looking for a combination of income and moderate growth.

Money Market / Liquid Schemes

Aim to provide easy liquidity, preservation of capital and moderate income.

• Corporate and individual investors as a means to park their surplus funds

for short periods or awaiting a more favorable investment alternative.

Tax Saving Schemes (Equity Linked Saving Scheme - ELSS).

• Fixed Maturity Plans

THE NEW INDIA ASSURANCE COM. LTD.

About - New India Assurance Company Limited

Overseas operations commenced in 1920. Operations in 24 countries in

and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs.

Largest number of Offices - In India and Abroad Trained and technically