A Project report On

“Evaluation of Insurance sector through comparison of AVIVA Life Insurance with Life Insurance Corporation (LIC)”

SUBMITTED TO: Dr. UDITA TANEJA

SUBMITTED BY: CHANDAN SINGH (73) NARESH SANDHU (75) JYOTI NAGAR (79) ASHISH SHANDILYA (81) PRASHANT BEDWAL (94) KHUSHBOO PANDITA (97)

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INDEX
Serial No. Particulars Page No.

1 2. 3. 4. 5. 6. 7. 8 9. 10. 11. 12. 13.

Introduction to Insurance Company profile Various life insurance plans of AVIVA Various plans of LIC Objectives Research Methodology Data Analysis Findings Suggestions Limitations Conclusion Bibliography Annexure

3 9 11 13 18 19 20 29 31 33 34 35 36

INTRODUCTION
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The business of insurance is related to the protection of the economic values of assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated by it is sold and income is generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income. Both are assets and provide benefits. Every asset is expected to last for a certain period of time during which it will provide the benefits. After that, the benefit may not be available. There is a life – time for a machine in a factory or a cow or a motor car. None of them will last forever. The owner is aware of this and he can so manage his affairs that by the end of that period or life – time, a substitute is made available. Thus, he makes sure that the benefit is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it incapable of giving the benefits. An epidemic may kill the cow suddenly. In that case, the owner and those enjoying the benefits there from would be deprived of the benefits. The planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effects of such adverse situations. It promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs.

BRIEF HISTORY OF INSURANCE
Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders, travelling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost would be partial and shared, and not total. The Babylonian traders would agree to pay additional sums to lenders, as the price for writing off the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the principle of ‘general average’, whereby, if goods are shipped together, the owners would bear the losses in proportion, if loss occurs, due to jettisoning during distress. The Greeks had started benevolent societies in the late 7th century AD, to take care of the funeral and families of members who died. The friendly societies of England were similarly constituted. The great Fire of London in 1666, in which more than 13000 houses were lost, gave a boost to insurance and the first fire insurance company, called the Fire Office, was started in 1680. The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee House in London. Traders, who used to gather in the Lloyd’s coffee house in London, agreed to share the losses to their goods while being carried by ships. The losses used to occur because of pirates who robbed on the high seas or because of bad weather spoiling the goods or sinking the ship. In India, insurance began in 1818 with life insurance being transacted by an English company, the Oriental Life Insurance Co. Ltd. The first Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed in 1870 in Mumbai. This was followed by the Bharat Insurance Co in 1896 in Delhi, the Empire of India in 1897 in Mumbai, the United
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sixteen new life insurers had been registered and were transacting life insurance business in India. Perils are the events. After the amendments to the relevant laws in 1999. when the life insurance business was nationalised and the Life Insurance Corporation of India (LIC) was formed on 1st September 1956. By the year 1956. the National Indian and the Hindustan Cooperative in Kolkata. Examples of non – economic losses are love and affection of parents.C. through accidental occurrences. Insurance only compensates for the losses – and that too. insurance may not be possible. etc. the contents in it and the extent of damage. through better safety and damage control measures. Insurance is relevant only if there are uncertainties. sentimental attachments to family heirlooms. • • • CLASSIFICATION OF RISKS 4 . By 31. the Bombay Life (originally called the Swadeshi Life). the Indian Mercantile. not fully. breakdowns. Risks are the consequential losses or damages. innovative and creative abilities. are perils.8. Later. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. If the loss is not financial.I. it cannot be insured against.India in Chennai. were established the Cooperative Assurance in Lahore. lightning. These were all Indian companies started as a result of the swadeshi movement in the early 1900s. The risk can sometimes be avoided. They are the ones who benefit from the asset and therefore. earthquakes. If such perils can cause damage to the asset. floods. If there is no uncertainty about the occurrence of an event. PURPOSE & NEED OF INSURANCE • Assets are insured. leadership of managers. because of the peril of an earthquake. we say that the asset is exposed to that risk. The risk to a owner of a building. would lose. Only economic consequences can be insured. depending on the cost of the building. the National. the L. Fire. Such possible occurrences are called perils. may be a few lakhs or a few crores of rupees. because they are likely to be destroyed or made non – functional before the expected life time. there were 170 companies and 75 provident fund societies transacting life insurance in India. The peril cannot be avoided through insurance. It does not prevent its loss due to the peril. etc. did not have the exclusive privilege of doing life insurance business in India.2007. the New India and the Jupiter in Mumbai and the Lakshmi in New Delhi. when the asset is damaged. Insurance does not protect the asset.

calamities. By this method. sinking of the vessel. It will become bearable when the community shares the burden. wiping out everything. lightning. HOW INSURANCE WORKS The mechanism of insurance is very simple. technology. The second is that the peril should occur in accidental manner. 2. hailstorms. piracy. 3. People who are exposed to the same risks come together and agree that. under the control of the person concerned. Static risks are more suited to management through insurance. Insurance helps to spread the costs and risks. Life Insurance business deals with particular risks. etc. Static risks are caused by perils which have no consequence on the national economy. burglary. Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. to some extent. like inflation. It would happen if the loss is total. Dynamic & Static Risks: Dynamic risks are caused by perils which have national consequence. Pure & Speculative Risks: The latter are in the nature of betting or gambling where the risk is. different kinds of risks can be identified and separate groups made. Dynamic risks are less likely to occur than static risks. In other words. as many persons will be affected at the same time. which are related to water damage. political upheavals. Insurance deals with only pure risks and not speculative risks. All people who send goods by ships are exposed to the same risks. Fundamental & Particular Risks: Fundamental risks are those that affect large populations while Particular risks affect only specific persons. There are certain principles. but are also less predictable. This would be taking unfair advantage of an 5 . etc. none in the group should set fire to his assets and ask others to share the loss.1. while a pure risk is not so. which make it possible for insurance to remain a preferred and fair arrangement. like a fire or theft or misappropriation. flood or riot. if any one of them suffers a loss. 4. Those owing factories are not exposed to these risks. It is more in the nature of an Act of God. A train crash is a fundamental risk while a theft is a particular risk. when there is an earthquake. the others will share the loss and make good to the person who lost. Like this. the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all. like in a tsunami. but they are exposed to different kind of risks like fire. the heavy loss that anyone of them in the group may suffer is divided into bearable small losses by all the others in the group. Financial & Non – Financial Risks: Insurance is concerned with the financial status of the risk. The first is that it is difficult for anyone individual to bear the consequences of the risks that he is exposed to. 5. etc. but fundamental risks affect the life insurance company’s experience. It can also happen if the deceased person was heavily in debt. Nobody should be in a position to make the risk happen. In other words. including those exposed to such risks. Critical Risks: It is based on the extent of the damage likely to be caused. earthquakes.

It can be equal among all. Accidents may or may not happen. the person concerned could have made some other arrangements to meet the continuing needs. may suffer losses. at the time of admission to the group. on the basis of past experiences. But if it happens much earlier when the alternate arrangements are not in place. The occurrence has to be random. The concept of Human Life Values provides scientific ways to determine the asset value of the human life and therefore. If it happens around the time of one’s retirement. like other techniques related to selling. on an average. The share (that each member of the community has to pay) could be collected from the members after the loss has occurred or the likely shares may be collected in advance. the risks in the case of a human being are related to: • • • • • Early death Living too long Disabilities Sickness Unemployment 6 . problem solving. These techniques. THE HUMAN ASSET A human being is a income generating asset. Death will happen. etc). Insurance companies collect in advance and create a fund from which the losses are paid. will have to be learnt from the job. The value of the asset can be measured by considering the income that is generated by the person concerned. These assets also can be lost unexpectedly early death or through sickness and disabilities caused by accidents. there can be losses to the person and dependents. and not the deliberate creation of the insured person. While it may not be possible to tell before – hand which person will suffer. Both are risks which need to be safeguarded against. One’s income generating ability depends on one’s skills. by insurance. when it could be expected that the income will normally cease. Thus. professional. the amount of life insurance required. The collection to be made from each person in advance is determined on the basis of assumptions. accidental. Those depend on the income are helped to overcome their difficulties. Insurance take care. entrepreneurial.arrangement put into place to protect people from the accidental risk they are exposed to. (manual. it may be possible to tell. It can also be proportional to the risk that each person is exposed to. but the timing is uncertain. Living too long can be as much a problem as dying too young. how many persons. These are the assets. The manner in which the loss is to be shared can be determined before – hand.

construction. There is a certain amount of compulsion to go through the plan of savings. provident fund. which are related to human beings. In other forms. 3. in many other countries. because of the facility of nomination and assignment. Fire (dealing with all fire related risks) 2. People who suffer loss get relief because at least part of their loss is made good. It spreads losses of an individual over the group of individuals who are exposed to similar risks. aviation. Life insurance includes all risk related to lives of human beings and general insurance covers the rest. They can be protected against attachments by courts. crop. if one changes the original plan of savings. in 2005. In the event of death. In India. there is a loss. Miscellaneous (dealing with all others like liability. personal accident. but is classified as ‘life’. 2. People who do not suffer loss are relieved because they were spared the loss. the IRDA (Insurance Regulatory and development Authority) has. Marine (dealing with all transport related risks and ships) 3. etc) Personal accident and sickness insurance. issued regulations enabling micro – insurance (broadly meaning insurance for small Sums Assured. fidelity. Creditors cannot claim the life insurance moneys. there is no loss. Bring together persons with common insurance interest (sharing the same risks). In India. ADVANTAGES OF LIFE INSURANCE 1. motor. engineering. 2. 7 . A policy may be issued by a issued by a life insurer covering both life and non – life risks. The facility of nomination is now available for some bank accounts. General insurance has three classifications: 1. Pay out compensations (called claims) to those who suffer from the risks. Collect the share or contribution (called premium) from all of them. The business of insurance is one of sharing. is classified as ‘non – life’ in India. In insurance. The heirs can collect the moneys quicker. insurance is classified primarily as life and non – life or general. but premium on account of the non – life business will be passed on to a general insurer and the claim amount collected from the latter. the settlement is easy. The business of insurance is to 1. like 5 to 50 thousands) to be done by both life and general insurers on the basis of mutual tie – ups. What is ‘non – life’ in India is termed ‘Property and Casualty’ in some other countries.THE BUSINESS OF INSURANCE Insurance companies are called insurers. 3. etc.

It is possible to protect a life insurance policy from being attached by debtors.4. A life insurance policy is property and can be transferred or mortgaged. OBJECTIVES FOR RESEARCH The project had been undertaken with an objective to understand “the customer awareness about Insurance”. Who are the major Influencers in the purchase decision of insurance policy? 8 . The objective of the study also included identifying the determinant purchase factors. 6. What are different factors that influence the customer when she/he buys an insurance policy? III. Research Questions I. Loans can be raised against the policy. There are tax benefits. Marketability and liquidity are better. the customer segments and the sources of information they rely on. The brand loyalty and switching were also studied. The beneficiaries’ interests will remain secure. both in income tax and in capital gains. The existing positioning of AVIVA Life Insurance and the perceptions among different segments were also covered under the study. What is the perception of people towards AVIVA life insurance? II. 5.

LITERATURE REVIEW 9 .

we have been successful in reaching out to the underprivileged strata through our Micro insurance initiatives.000 locations Bank partners: ABN Amro Bank. including the concept of Bancassurance and Financial Health Check services. Our vision is to be amongst India’s leading life insurers with a quality business model.000 towns and cities in India. we are spread across nearly 3. With a strong sales force of over 30. Bank of Rajasthan and more than 30 Cooperative Banks and Regional Rural Banks. we have initiated and pioneered many innovative sales approaches. IndusInd Bank. 10 . A seasoned team of fund managers make our fund management one of the key differentiators. and Aviva plc. Dabur. FACT SHEET ABOUT AVIVA JV partner: Dabur (74% stake) Foreign partner: Aviva plc (26% stake). Retirement. We seek to build a robust product portfolio meeting all customer lifecycle needs related to – Savings.Aviva India is a joint venture between one of the country’s oldest and largest groups. close to 3. TR Ramachandran Paid up Capital: Rs 1. With a wide distribution network of 195 branches and close to 40 Bancassurance partnerships. The Lakshmi Vilas Bank Ltd. It is one of the leading providers of life and pensions products to Europe. the UK's largest insurance group. Aviva has a 50 million-customer base worldwide with £352 billion assets under management. focused on sustainable growth. Managing Director & Chief Executive Officer: Mr. Investments and Protection.000 Financial Planning Advisers (FPAs). Keeping with our commitment of social responsibility. whose association with India dates back to 1834. One of the world's top Insurance groups and the biggest in the UK. We are among the first companies to introduce the contemporary unit-linked products.888 crores Locations: 195 branches. Punjab & Sind Bank.

Aviva New Young Scholar Aviva New Young Scholar is a comprehensive plan that enables you to secure your child’s future in any eventuality through: Attractive returns. through: - Option to reduce premium and increase / decrease Life Cover (Sum Assured) Option to cover husband and wife under the same policy Select from three riders – Accidental Death and Dismemberment Rider (AD&D) . in line with your changing needs. in addition to the Index-II fund Minimize the risk of market volatility with investment options such as AAA or STP Option to minimize the effect of inflation through Indexation - 11 . disability or on contracting a critical illness. CHILD . Comprehensive Health Benefit (CHB) Rider Hospital Cash Benefit Rider (HCB) Aviva Payor Plus Rider Indexation to protect savings & protection against inflation Limited premium paying term(PPT) including 3 & 5 years. with the option to pay premiums for as few as 3 years. so the policy continues even in the unfortunate event of the parent’s death.VARIOUS LIFE INSURANCE PLANS BY AVIVA 1. enhanced by loyalty additions every year starting end of 5th year and maturity addition to build the desired corpus of funds on maturity of the policy All future premiums being waived off and invested as a lump sum amount in to the funds. while the Sum Assured is paid out immediately Provision of a regular income for the minor child. with an option to increase the PPT (if PPT>=10) - 3. SAVINGS – Aviva freedom life plan Freedom Life Plan allows you to choose the proportion of savings and protection and change it. Retirement – Aviva new pension plus Aviva New Pension Plus is a best-in-class plan that helps you fund your post-retirement years : - Attractive returns enhanced by Loyalty Additions during the policy term and Maturity Addition Opportunity to invest in high growth sectors such as PSU. in the event of parent’s death Systematic Transfer Plan for safe entry and safer exit into equities Option to minimize the effect of inflation through Indexation - - 2. Infrastructure.

PROTECTION – Aviva life shield plus Aviva LifeShield plus provides comprehensive protection for your family at a nominal cost through: Payment of Life Cover (Sum Assured) to your family in the event of your death. 6. even if all health benefits are claimed. RURAL – Aviva Grameen Suraksha Aviva Grameen Suraksha is an ideal low cost solution to help you protect your loved ones through: Payment of Sum Assured to your family in the event of your death Premium payment for 2 years and benefits for full the policy term 12 . Immediate payment of the Life Cover in the case of critical illness or permanent total disability. while guaranteeing the return of a part of the premium on maturity through: Provision of a Life Cover (Sum Assured) on death and disability Protection against 18 critical illnesses A combined benefit of more than Rs 21 lakh. in case all health benefits are claimed Extended death and disability cover for 5 years after the health benefits cease Guaranteed maturity benefit on the date of maturity.4. with a provision of double the Life Cover in the case of an accidental death. while life cover continues till the policy term Most competitive rates 5. HEALTH – Aviva health plus Aviva Health Plus is a comprehensive health cum savings plan that covers you against death and ill health.

In this plan premium payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the premiums payable in subsequent years. 3. This plan provides a benefit which not only takes care of the risk cover of the child during the policy but also after 7 years of the policy being expired. It pays the maturity amount on survival to the end of the term. 2. Jeevan Mitra (Triple Cover Endowment Plan): Is an endowment plan where thrice the Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured. The Endowment Assurance Policy-Limited Payment: In this policy the payment of premium can be limited either to a single payment or to a term shorter than the policy. 5. Komal Jeevan: Is a Money Back Plan which can be bought by the parent or grand parent for their child from the age of 0-10years. It is an endowment assurance plan for children of less than 12 years of age. Besides this benefit one-fourth of Sum Assured is payable at the end of each of last four years of policy term irrespective if the life assured dies or survives the duration of the policy. This plan gives financial protection against death during the duration of the plan with periodic payments on survival at specified durations. Jeevan Chhaya: It is a plan where financial protection is given against death during the term of the plan. New Janaraksha Plan: Is an Endowment Assurance plan that provides financial protection against death throughout the term of plan. 3. Jeevan Anurag: Is plan designed for the children educational requirements . 13 . This plan can be taken on the parent’s life. Child Future Plan: A policy where the future needs like education. Children Plans 1. 4.Various Plans offered by LIC are as follows: Endowment Assurance Plans 1. Jeevan Mitra (Double Cover Endowment Plan): Is an endowment plan which takes care of the financial needs even if death of the policyholder for the whole term of the plan. The Endowment Assurance Policy: This policy has a provisions for the family of the Life Assured in event of his early death and also assures a lump sum at a desired age. Jeevan Amrit: This plan is designed for a higher cover at a lower cost. 6. 5. The basic sum assured is given immediately on the death of the life assured during the term of the policy. 4. Jeevan Kishore: Is a plan which can be availed by the parent or grand parents of the children. It is an Endowment Assurance plan. 2. marriage and other requirements are taken care of.

I: Is a deferred annuity plan. 7. Child Fortune Plan: Is a unit linked plan which offers long term capital appreciation. Money Back 25 years: Is the same as the above plan only in this plan the 40% accrued bonus is payable at the 25th year. 8.I: is a Deferred Annuity plans that allows the policyholder to make provision for regular income after the selected term. 3. 2. Child Fortune Plus: Is a plan for children and to meet their educational needs. Money Back Plan 1.VI: By paying a lump sum amount this immediate annuity plan can be bought. New Jeevan Dhara . Marriage Endowment Or Educational Annuity Plan: This is an Endowment Assurance plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational expenses of the named child. It provides the risk cover on the life of child during the policy term as well as 7 years after the policy has expired. There are also Survival benefits given to the life assured at the end of a specific duration. 3. Fortune Plus: It is a unit linked assurance plan where premium payment term (PPT) is 5 years and the premium payable in the first year will be 50% of total premium payable under the policy. 2.6. Child Career Plan: A plan to meet the educational and other needs of the child. Unit Plans 1. Bima Bachat: Is a money-back policy which offers financial security and assurance to the policy holder and his family. Jeevan Akshay .10. 2. Jeevan Nidhi: Is a deferred annuity plan with profits. Pension plans 1.15 years and the balance 40% accrued bonus is payable at the 20th year. 4. Its a unit linked plan with long term capital appreciation. New Jeevan Suraksha . Money Back-20 years: Is an endowment plan where periodic payments of partial survival benefits are paid during the term of the policy till the policy holder is alive. The policy holder has to pay only one premium.As the policy name goes this plan 20% of the sum assured is payable after 5. 14 .

Market Plus: Is a unit linked pension plan where after a specific period the pension is paid. Golden Jubliee Plan New Bima Gold: Where the premiums are paid back during the policy term in installments . Jeevan Anand: Is a combination of two plans. 4. besides that life insurance cover is given during the also at the extended term of the plan. Money Plus . 5. Jeevan Tarang: This is a with-profits whole of life plan which provides for annual survival benefit at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period.Endowment Assurance and Whole Life plan. Whole Life Plans 1. 4 or 5 years.3. 2.I: Is a unit linked Endowment plan which has investment plus insurance during the term and you can pay regular premiums. 3. The Whole Life Policy: Is a plan mainly to provide for payment of sum assured plus bonuses on the death of the policyholder. or uniformly over 3. 15 . Profit Plus: It is a unit linked Endowment plan where the premium payment term (PPT) is limited to single lump sum.

is a joint venture between DLF Limited & Prudential International Insurance Holdings Limited. DLF pramerica Life Insurance Company Ltd.MAJOR PLAYERS OF INDIA IN INSURANCE Reliance Life Insurance is a part of the Reliance group. The company started its functionality in December 2006 and they always believe to be a strong financial institute HDFC Standard Life HDFC Standard Life Insurance is a joint venture between Housing Development Finance Corporation Limited & a Group of Standard Life Plc. insurance & etc and Allianz who provides financial services when came together they formed Bajaj Allianz Life Insurance Company. They have a range of various products to offer. The Company got its approval from IRDA in June 2008 and from that commencing its business. The Company started commencing its business in 2001. Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is known as Kotak Mahindra Old Mutual Funds.ICICI Prudential Life Insurance. The company started its operations in between 2000-2001.The company started there operations in 2001. HSBC Insurance (Asia pacific) & Oriental bank of Commerce.Future Generali in India is into both Life & Non Life businesses in India. Religare and Bennett. They have more than 4100 branches all over India. They offer insurance products which help you with savings as well as give you protection. 16 . The company is involved in Life & health products. Future Generali Life Future Generali is a joint venture between Future Group of India & Italy based Generali Group. DLF Pramerica believes in delivering a secure & enrich life to there customers. finance. AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture with AEGON. Reliance Capital is one India's most dominant private sector financial services companies. It is one of the partners of Reliance Capital Ltd which is a Anil Dhirubhai Ambani Group.The Company started commencing its business in December 2000. Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA. Bajaj Allianz Bajaj who are into iron & steel. The company wants to provide a financial security to all. AEGON Religare Life Insurance company was launched in July 2008. MetLife One of the fastest growing insurance company in India is MetLife. ICICI Prudential ICICI Bank with Prudential plc. Max New York Life Max India’s leading multi business corporation & New York Life joined there hands in 2000. The company aim is to help customers in making there financial decisions. Coleman & Company a part of Times Group. Canara HSBC Life is a joint venture of Canara Bank. both well known & strong financial institutions came together in December 2000 to form an insurance company .

They started their operations in April 2001 Aviva Aviva.V. 17 . they are IDBI Bank. (INGI). ING Vysya Bank Limited and GMR Industries Limited. TATA AIG The TATA Group and American International Group Inc together formed Tata AIG Life Insurance Co. IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three financial institutes. They introduced the concept of banc assurance in India. They introduced there plans in March 2008. At present. It is present in more than 41 countries across the world. one of UK's largest insurance company and world's 5th largest insurance group. IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each. INGI. Exide Industries Limited. Enam Group are the joint venture partners.Tata Group holds 74% stake in the insurance venture with AIG holding the balance 26%. Ambuja Cement Ltd.SBI Life SBI Life Insurance Company Limited is a joint venture between State Bank of India and BNP Paribas Assurance. SBI Life offers a variety of plans in life insurance and pension. Federal Bank and Fortis. ING VYSYA ING Life was established in 2001 as a joint venture between ING Insurance International B. Ltd. It was one of the first international insurance company to set up its office in India in the year 1995.

• To study and determine the competitor (LIC) position in the market. 18 .OBJECTIVES OF STUDY • To determine and analyze the Market Potential of AVIVA Life Insurance Company.

Sample size – 100 people were selected 19 . One can also define Research as a scientific and systematic search for pertinence information on a specific topic. It may be understood as a science of studying how research is done scientifically. are those which have already been collected by someone else and which have already been passing through the statistical process. MEANING OF RESEARCH METHODOLOGYResearch Methodology. it is a way to systematically solve the research Problem. Primary data The primary data are those data which are collected afresh and for the first time. & websites etc. It is necessary for the researcher to know not only the research. Data Collection: . research is an art of scientific investigation. Secondary data The secondary data on the other hand.The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. In fact.RESEARCH METHODOLOGYMEANING OF RESEARCHBefore understanding Research Methodology. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines. and thus happen to be original in character. newspapers. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with the logic behind them. Research in common parlance refers to a search for knowledge. we should understand the meaning of research. books.

DATA ANALYSIS 20 .

1) Do you think that investment in Insurance sector is good option? Particulars Yes No. of respondents 90 No 10 21 .

2) Which company’s policy do you have? Particulars No. of respondents AVIVA 40 LIC 60 22 .

of respondents LIC 20 10 18 6 6 60 No.3) Which type of policy you have? Particulars Whole life plan Retirement plan Children plan Health plan Golden jubilee plan Total No. of respondents AVIVA 10 4 22 4 0 40 23 .

Growth of the CO. of respondents LIC 8 12 18 10 12 No. Annual premium is reasonable Maturity benefits No.4) Why do you invest in this (LIC/AVIVA) company? Particulars High interest Good image of CO. of respondents AVIVA 12 4 12 4 8 24 .

5) Do you think that investment in AVIVA is better than LIC ? Particulars Yes No No. of respondents 44 56 25 .

6) If yes.V. then why? Particulars Guaranteed F. at maturity Growth rate More ULIP plan Risk covered All above No. of respondents 10 16 8 4 6 26 .

stake Brand loyalty of LIC Low A. then why? Particulars LIC have govt.7) If no. than AVIVA High return No. of respondents 24 14 12 6 27 .P.

8) In near future. do you think AVIVA will have high growth rate? Particulars Agree Neutral Disagree Can’t say No. of respondents 20 26 14 40 28 .

FINDINGS 29 .

 10 people of AVIVA have Whole life plan. 4 have health plan. Companies than the private.  Most of the people invest due to high interest of the policy in AVIVA  People have more faith in govt. 4 have retirement plan.  14 people invest in LIC due to its brand loyalty.  26 people saying that AVIVA growth will be neutral in near future 30 .  40 people have AVIVA policies and 60 have of LIC.  Most of the people of both LIC and AVIVA are getting rate of interest 812%  Most of the people have children plan of AVIVA. 90 people saying that investment in insurance sector is good option and 10 are saying no.  56 people are saying that investment in LIC is better than AVIVA. 22 have children plan. 44 are saying investment in AVIVA is better.

SUGGESTIONS 31 .

4) Company should target each and every class of the society. 3) At some level Company should provide information to the customers about the charges of the policy.1) Information regarding new product should be provided to the customers. 7) AVIVA Company should work in systematic way. of people who are not having any of the insurance plans through an intensive market research and motivate them to get insured. 2) The company should find out the no. 6) Annual premium should be reasonable. 32 . 5) Charges should be low of the policies.

LIMITATIONS • Some of the respondents were not cooperative. • The time was limited Area was limited 33 . • There are chances of biased information provided by the respondents. therefore there can’t be full accuracy. • As the sample size is small compared to the total population.

34 . People have more faith in govt.CONCLUSION Here in this study we see that people have more policies of LIC in comparison to AVIVA. can grow in future. Insurance sector is very wide and co. that it should give more attention to that points or that areas where it lacks for further future growth. companies than private. So it is necessary for AVIVA LIFE INSURANCE.

com  www.Bibliography  www.google.com  http://en.wikipedia.org/wiki/Aviva  http://en.org/wiki/Life_Insurance_Corporation_of_India  Newspapers 35 .com  www.avivaindia.licindia.wikipedia.

What percentage of interest you get from it? (a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12% 5. Do you think that investment in insurance sector is good option (a) Yes (b) No 2.ANNEXURE • NOTE: The information that you will provide will be kept confidential and will be used only for academic Purpose. Which company’s policy do you have? (a) AVIVA Life Insurance 3. GENERAL  Name_____________________________________________________________  Addres______________________________________________________________  Gender_________  Age _________ 1. Why do you invest in this company? (a) High interest (b) good image (c) Company growth (e) due to maturity benefits (d) Annual premium is reasonable (f) Any other please specify ______________________________ 36 . Which type of policy you have? (a)Whole Life Plan (e) Golden jubilee plan (b) Retirement Plan (c) Children Plan (d) Health Plan (b) LIC (f) any other please specify___________________ 4.

then any information is given to you about that product? (a) Yes (b) No (b) Brand loyalty of LIC (d) Investment return is higher than 10. (a) Agree (b) neutral (c) disagree (d) can’t say Any suggestions __________________________________________________ 37 . In near future AVIVA is having high growth rate.6. Whenever company launch new product. Do you think that investment in AVIVA is better than LIC? (a) Yes (b) No ( If your answer is no then jump to question no. If no then why? (a) Because LIC is having government stake. (c) It has low premium plans than AVIVA AVIVA (e) Any other (please specify)__________________________ 9. 8) 7. if yes then why? (a) Because AVIVA gives guaranteed fund value at maturity time (b) Growth rate of company is high (d) Risk factor is covered properly (c) AVIVA has more ULIP plans than LIC (e) all above (f) Any other (please specify)_____________ 8.

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