A SUMMER TRAINING REPORT ON

“STUDY OF LIFE INSURANCE POLICIES AND INVESTMENT STRATEGIES IN AVIVA LIFE INSURANCE COMPANY INDIA LIMITED” AT

SUBMITTED IN THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSSINESS ADMINISTRATION U.P.Technical University 2008-10 SUBMITTED BY KULDEEP BHATI MBA (2008-2010) (Enrollment No- 0809470050)

GALGOTIAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY, GREATER NOIDA

COMPANY CERTIFICATE
(LETTER HEAD of the Company)

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TO WHOM IT MAY CONCERN

This is to certify that KULDEEP BHATI, a student of Galgotias Institute of Management and technology, G.Noida , undertook a project on “STUDY OF LIFE INSURANCE POLICIES AND INVESTMENT PORTFOLIO IN AVIVA LIFE INSURANCE COMPANY INDIA LIMITED” at AVIVA Life Insurance Ltd. Ghaziabad from 18th May, 2009 to 18th July, 2009. KULDEEP BHATI has successfully completed the project under the guidance of Mr. Deep Bansal (Branch Training Manager). He is a sincere and hard-working student with pleasant manners. We wish him all success in his future endeavours.

Signature (Deep Bansal) (Branch Training Manager) (AVIVA Life Insurance India Ltd., Ghaziabad)

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CERTIFICATE Of ORIGIN

This is to certify that Kuldeep Bhati , a student of Post Graduate Degree in MBA (International Business), Galgotias Institute of Management and Technology,G.Noida has worked in AVIVA Life Insurance India Ltd., under the able guidance and supervision of Deep Bansal, designation Branch Training Manager, Company AVIVA Life Insurance India Ltd. (Ghaziabad). The period for which he was on training was for 8 weeks, starting from 18th May, 2009 to18th July, 2009. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature (Faculty Guide)

Signature (Student)

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ACKNOWLEDGEMENT
I would like to thank AVIVA Life Insurance India Ltd. (Ghaziabad) & Deep Bansal,Branch Training Manager for providing me with this unique opportunity to explore my academic interests in the field of Marketing & Sales.

It has been a highly enriching experience to do my Internship at AVIVA Life Insurance India Ltd., during the summers of 2009. It has been possible to achieve the perfect blend of the valuable experience gained from the work place and the indispensable knowledge gathered from there. My initial days at AVIVA Life Insurance India Ltd., has given me a new experience in life. The corporate culture was all new to me.

I wish to thank my Industry Guide Naveen Aggarwal, Sales Manager AVIVA Life Insurance India Ltd. (Ghaziabad) for giving me this chance to work on this project and extending all support to me during my internship. With his persistent guidance, motivation and encouragement in all my ventures I could successfully complete my project.

I would like to express my sincere gratitude towards my faculty guide for guiding me throughout the project and providing me constant moral support & invaluable feedback.

I would also like to thank entire team of AVIVA Life Insurance India Ltd. (Ghaziabad) who have been a pillar of support for me. Signature (Student) 4

OBJECTIVE I had made some extensive objectives for my study which are as listed below. To find out the customers response towards Aviva Life Insurance Company. 2. To study the satisfaction level of customers in different attributes of Aviva Life Insurance Company. 1. 5 . 3. To determine the current status of the Aviva Life Insurance Company.

TABLE OF CONTENTS Chapters 1. 5. 10. 7 24 55 62 79 83 86 88 90 96 98 6 . 2. 4. COMPANY PROFILE OVERVIEW OF INSURANCE HISTORY RESEARCH METHODOLOGY DATA ANALYSIS FINDINGS RECOMMENDATIONS AND SUGGESTION LIMITATION CONCLUSION GLAOSSARY BIBLIOGRAPHY ANNEXURE Page No. 7. 8. 11. 6. 9. 3.

Dabur is the country's leading producer of traditional healthcare products. Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to establish its credibility in the market. A professionally managed company. Depending on the life stage and 7 . one of India's oldest. and largest Group of companies.COMPANY PROFILE Aviva is UK’s largest and the world’s fifth largest insurance Group. Aviva has a joint venture with Dabur. Aviva has a long history dating back to 1834. With a strong sales force of over 12. It has more than £332 billion of assets under management. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With a history dating back to 1696. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. The FHC is a free service administered by the FPAs for a need-based analysis of the customer’s long-term savings and insurance needs. Aviva was also the first foreign insurance company in India to set up its representative office in 1995. Aviva has a 35 million-customer base worldwide.000 Financial Planning Advisers (FPAs). In India. In India. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva has initiated an innovative and differentiated sales approach to the business.

endowment (Life Saver.earnings of the customer. Jammu & Kashmir. West Bengal and Maharashtra and one regional Bank in Sikkim. It has been among the first companies to introduce the more modern Unit Linked Products in the market. Aviva products are modern and contemporary unitised products that offer unique customer benefits like flexibility to chose cover levels. Aviva pioneered the concept of Bancassurance in India. transparency and value for money. and has leveraged its global expertise in Bancassurance successfully in India. indexation and partial withdrawals. Rajasthan. Its products include: whole life (Life Long). The Lakshmi Vilas Bank Ltd. Operating from Mumbai. fixed term protection plan (Freedom Life Plan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Aviva has an experienced team of fund managers and the range of fund options includes 8 . Aviva’s Fund management operation is one of its key differentiators. When Aviva entered the market. and Punjab & Sind Bank. Centurion Bank of Punjab. American Express Bank. Easy Life Plus). creating a unique differentiation. the FHC assesses and recommends the right insurance product for them. Currently. Aviva has Bancassurance tie-ups with ABN Amro Bank. Aviva started by offering the more modern Unit Linked and Unitised With Profit products to the customers. and child policy (Young Achiever) single premium (Life Bond and Life Bond Plus). Canara Bank. Aviva’s products have been designed in a manner to provide customers flexibility. most companies were offering traditional life products. 15 Co-operative Banks in Gujarat. Bihar. Term (Life Shield). Pension (Pension Plus).

Aviva products are available in 378 towns and cities across India. Inc. Secure Fund.Protector Fund. 2006 and 2007.Unitised With-Profits Fund and four Unit Linked funds: . Aviva has had relatively high scores on the parameters of Credibility. along with Great Places to Work® Institute. and Business World magazine. 9 . Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Respect. Through its Bancassurance partner locations. Pride and Camaraderie in the survey administered by Grow Talent Company Ltd. Through its association with Basix (a micro financial institution) and other NGOs. Aviva has 112 Branches in India (including rural branches) supporting its distribution network. For three consecutive years in 2005. it has been able to reach the weaker sections of the society and provide life insurance to them. Balanced Fund and Growth Fund. Fairness.

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VISION Aviva . It has more than £332 billion of assets under management. Passion for winning. partners & employees at all times. Dabur is one of India's oldest and largest group of companies with consolidated annual turnover in excess of Rs 1.WHO IS AVIVA DABUR A professionally managed company. Customer centricity. Aviva has a 35 million-customer base worldwide. Embedded in this vision are the core values of Integrity. colleagues. With a history dating back to 1696. Innovation and Empowered team that we have collectively defined and committed to working towards.899 crores. AVIVA Aviva is UK’s largest and the world’s fifth largest insurance Group. it is the country's leading producer of Founded in 1884. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Traditional healthcare products. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers. 11 . shareholders.where exceeding expectations through innovative solutions is "the" way of life This is the compelling vision that Aviva India has created through the active contribution of its employees.

It is the constant endeavour to ensure that our customers have easy access to Aviva products and services at all times. Italy. Aviva is a leading bancassurer in countries such as France. Spain. Aviva also focuses on bancassurance worldwide and has a proven track record of successful bancassurance relationships. Aviva has pioneered bancassurance in the country through its tie-ups with 22 leading private and nationalised Banks in the country. 12 . Australia and New Zealand.PARTNERS Aviva is committed to helping our customers get 'Kal par Control' and make the most out of their lives. It has 40 major partnerships with leading banks across the globe.

The Bank is recognized as one of the most successful consumer banking outfits in the county. ABN India consumer banking pioneered the distribution of third party financial products like mutual funds. known for its innovation and aggression.ABN AMRO Bank ABN AMRO is a prominent international bank with European roots and a clear focus on consumer and commercial banking gaining a competitive edge on the chosen markets and client segments. Aviva's relationship with ABN India commenced in June 2002 under which the bank introduces its customers to Aviva for insurance and provides access to its affluent customer base across the country through its operations in 21 branches at 14 locations. 13 . ABN AMRO Bank (India) ventured into the Indian market in 1920 primarily to finance the diamond trading business and evolved by mid 1990’s into a fastest growing retail bank and a well-respected wholesale bank. bonds and life insurance.

across 10 states. is among the top private banks in India. based out of Karur. American Express provides high quality travel related and financial services in India. The American Express Inbound call center also pitches Aviva products to its callers. 14 . The retail card segment is being tapped through outbound calling to the Amex cardholders. based on purchase volume generated of nearly 55 million cards worldwide. The Lakshmi Vilas Bank Ltd The Lakshmi Vilas Bank Ltd. It has 221 branches with a customer base of 1.American Express Bank American Express Company is a diversified worldwide travel and financial services company founded in 1850. Present in India since 1921. It is the world’s largest single card issuer.2 million. Currently Aviva products are sold across 204 branches of LVB. Aviva offers tailor-made investment solutions to the high net worth clients of the Wealth Management channel. Aviva Life Insurance entered into a strategic alliance with American Express for distribution of Life Insurance in June 2002 to offer top-of the line saving-cum-protection plans to Amex bank and card customers.

765 employees. Punjab and Sindh Bank has a network of 759 branches and 132 extension counters all over the country with close to 9. With a net profit of INR 1110 Crores. Even after 96 years of its inception. High 15 . Punjab & Sind Bank Punjab & Sind Bank was established in the year 1908.Canara Bank Canara Bank is one of the largest retail banks in India with 2. The customer base of Canara Bank exceeds 27 million. 47389 employees for the year ending Mar 2005. Hire purchase. Based on the principles of social commitment to the people. The bank has also started their Rural Development Division. 42 per cent of its branches are in the rural and semi urban areas. Aviva products are currently offered in 1030 Canara Bank branches in 103 Cities. deposits of over INR 96. Leasing. In line with spirit of liberalisation the Bank has laid special emphasis on International banking.908 Crores. Tele-banking and Credit card facilities.513 branches spread across 25 States and 4 Union Territories. help the farmers. Canara Bank has tied up with Aviva as a Corporate Agent for its Life Insurance Products. Canara Bank is truly a Bank to be reckoned with for the sheer magnitude of coverage it offers its clients. Punjab & Sind Bank stands committed to honor the high ideals of its founding fathers. and the weaker sections of the society to raise their standard of living and play a significant role in the development of the country.

“Aviva’s key strength is its fund management capabilities with an experience of 30 years in money management.” EQUITY The much-awaited correction finally materialised in the quarter ended June 2006. The merged entity. With strengths in the retail.500 employees will continue to provide support and an enhanced banking experience to our customers. may see downsides too. It has been among the earliest banks to offer a technology-enabled customer interface that provides easy access and superior customer service. the recent correction has been a timely reminder that the markets. stronger bank. It holds leadership positions in retail twowheeler loans and commercial vehicle loans. Specialised Locker Branches. The BSE Sensex. named Centurion Bank of Punjab. has a strong nationwide franchise of 241 branches and extension counters and 389 ATMs. Compared to the rise in 16 . RBI has approved the merger between Centurion Bank and Bank of Punjab effective from October 1st. which peaked at 12612 levels on 10th May 2006. as part of a bigger. Industrial Finance and SSI branches. in the short term. After three years of sustained Bull Run. The combined bank’s 3. 2005. besides Housing Finance Branch for the convenience of its customers. Centurion Bank of Punjab Centurion Bank of Punjab is a new generation private sector bank offering a wide spectrum of retail and corporate banking products and services.Tech Agricultural Branches. SME and agriculture businesses the bank is well poised to capture the opportunities that exist in the Indian market. has corrected to around 10000 levels.

The India growth story remains intact and the GDP growth in the last few quarters is an evidence of this. the Sensex is up 12. the markets could continue to witness volatility as the direction would be determined by global liquidity. With the tightening of global liquidity and reduced risk appetite of investors. However. This much-needed correction has weeded out some of the euphoria and the focus on value is back. We believe.the market. Even post this 20% or so correction from its peak. The major reason for the correction has been liquidity moving out of the markets. rising global interest rates and high crude prices causing worries about inflation and a global meltdown. this resilience will only improve. Secondly. for the long-term investor. Does this correction reflect any change in the key fundamentals of India? We do not think so. there have been outflows from emerging markets including India.iJhansieasing working population and improved disposable income in the hands of the consumer. We expect GDP to grow by over 7% on a sustainable basis and hence India would continue to be an attractive investment destination. The three-year rally was in the first place due to appreciation of India’s sustainable growth story. the downtrend has not been very large though it has been quicker than expectations. One of the major fears globally is that of a slowing economy in the US and China.9% year to date. 17 . This has been caused by fall in the commodity prices from their peak. progress of monsoons and the quarterly results for June 2006. India is highly resilient to global meltdowns as private consumption accounts for 62% of our GDP and exports account for only 12% of GDP. this correction would provide a good opportunity to participate in the India growth story. In the short term. This coupled with superior growth and demographics will drive flows back to India in the long term. With a favourable demographic profile. expectations of returns from equity should be moderate with stock returns tracking earnings growth. The second reason was an improvement in the global liquidity as investor’s appetite for risk iJhansieased. valuations in India were among the highest in emerging markets and hence witnessed a greater compression.

6 bn).44%.5 bn being accounted for by portfolio inflows.7 bn with $5. RBI seems committed to containing inflation and would thus act accordingly. that is. has picked up a bit in comparison to last year.FIXED INCOME Is virtuous cycle turning vicious? Inflation has touched one year high of 5. This was essentially due to strong invisibles (private remittance and net software exports) providing cover for a trade deficit. This has led to a few banks raising lending rates in addition to getting reflected in the money and bond markets. and INR has touched 2 year low of 46. RBI chose to iJhansiease rates to manage inflationary expectations and in response to various central banks hiking rates globally. monetary tightness will weigh on the interest rate outlook and it is expected to remain firm. helped by a less-than-expected deficit on the current account ($10. Though headline inflation recently has picked up with prices of food and non food articles in the ‘primary goods’ category rising. Aligning with these movements. 18 . propped up by improved agriculture performance. excluding the more volatile primary and fuel categories. For 2006-07 also. GDP growth for 2005-06 came in at a better than expected 8. the government has taken short-term measures in the form of liberalizing imports of wheat and sugar and banning exports of pulses in order to ease the supply situation. Net inflows on the capital account stood at $24.04. despite inflationary pressures.4%. The latest balance of payments numbers for 2005-06 show an overall balance of $15 bn. Recently. Going forward. However it is expected to remain in a manageable range. yield on benchmark 10 year Government Bond also went up to a four year high of 8. the GDP is expected to grow at over 7%. Core inflation.10%.7 bn coming from net FDI and $12. which was itself moderated by a strong 28% y-o-y growth in exports.

OVERVIEW OF INSURANCE HISTORY Origin of Insurance Almost 4.. Burial expenses and support in times of sickness and poverty were other services offered. was how insurance made its beginning. European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice. where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments. As European civilization progressed. That's how old these concepts are. its social institutions and welfare practices also got more and more refined. Insurance as we know it today owes its existence to 17th century England. really. traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. sea routes and the consequent growth in trade. In 2100 BC. in Genoa. Medieval guilds took it upon themselves to protect their member traders from loss on account of fire. it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London. shipwrecks and the like. With the discovery of new lands. 19 .500 years ago.. Essentially. So these guilds even offered ransom for members held captive by pirates. all these revolved around the concept of insurance or risk coverage. In 1347. The first step. Since most of the trade took place by sea. in the ancient land of Babylonia. perhaps. there was also the fear of pirates. the Code of Hammurabi granted legal status to the practice that. Life insurance had its origins in ancient Rome. In fact.

In 1693. Back to the 17th century. it was after 1840 that life insurance really took off in a big way. with newer products being devised to meet the growing needs of urbanization and industrialization. By the end of the 18th century. SC. Joseph Dodson reworked the table. The growing years. ship-owners and underwriters met to discuss and transact business. Enter companies. the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. 20 . The 19th century saw huge developments in the field of insurance. Massachusetts became the first state to require companies by law to maintain such reserves.. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. In 1759. astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. was devised specifically for such situations. linking premium rate to age. Two years later.. Lloyd's had brewed enough business to become one of the first modern insurance companies. In 1756. The trigger: reducing opposition from religious groups.. Insurance and Myth. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. the infamous New York fire drew people's attention to the need to provide for sudden and large losses. However.. wherein the risks are spread among several companies..where merchants. The practice of reinsurance.. The first stock companies to get into the business of insurance were chartered in England in 1720. In 1835.

For instance. Many employers sponsor group insurance policies for their employees. the name of Life Insurance Corporation of India's corporate headquarters.There were more offshoots of the process of industrialization. By the mid21 . The Insurance Act was passed in 1912. the government began to exercise control on them. Other companies like Oriental. In the 19th century. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practised by the Aryans.With the advent of the automobile. expenditure and management of these companies' funds. In 1897. such fraternal orders continue to provide insurance coverage to members as do most labour organizations. yogakshema. the first Indian life assurance society. Employees contribute a certain percentage of the premium for these policies. many societies were founded to insure the life and health of their members. It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. providing not just life insurance. but sickness and accident benefits and old-age pensions. the British government passed the Workmen's Compensation Act. In India Insurance in India can be traced back to the Vedas. Bharat and Empire of India were also set up in the 187090s. protect widows and children. was formed in 1870. is derived from the Rig Veda. public liability insurance. Even today. As these companies grew.Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses. followed by a detailed and amended Insurance Act of 1938 that looked into investments. members-only insurance. which first made its appearance in the 1880s. while fraternal orders provided low-cost. Bombay Mutual Assurance Society. which made it mandatory for a company to insure its employees against industrial accidents. gained importance and acceptance.

has extensive powers to oversee the insurance business and regulate in a manner that will safeguard the interests of the insured. Insurance is a collective bearing of risk. It was only after seven years of deliberation and debate . The Insurance Regulatory & Development Authority. Insurance spreads the risks and losses of few people among a large number of people as people prefer small fixed liability instead of big uncertain and changing liability.1950s. Meaning of insurance: Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -that the sector was finally opened up to private players in 2001. However. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies. The other party called insured pays in exchange a fixed 22 . the government decided nationalise the life assurance business in India. Insurance is a scheme of economic cooperation by which members of the community share the unavoidable risks. an autonomous insurance regulator set up in 2000. For years thereafter. As a result. which may be certain or uncertain. insurance remained a monopoly of the public sector. Insurance can be defined as a legal contract between two parties whereby one party called insurer undertakes to pay a fixed amount of money on the happening of a particular event. scams and irregularities were almost a way of life at most of these companies. there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. in the absence of regulatory systems.

If this principle is absent. The insurer and the insured are also known as Assured. This duty of full disclosure rests more heavily on the insured than the insurer. the insurance contract degenerates into a wagering contract. respectively. ii) Principle of indemnity: This means that if the insured suffers a loss against which the policy has been made. The document which embodies the contract is called the policy. the insured is not entitled to make a profit on his loss. iv) Principle of cause proxima: The cause of loss must be direct and an insured one in order to claim for compensation. i) Principal of utmost good faith: It means maximum truth. he remains in the same old position. he shall be fully indemnified only to the extent of loss. and Assured. All material information regarding the subject matter of insurance should be disclosed by both the parties. In other words. The purposes of subrogation are to hold the negligent third party any loss payments made to the insured. v) Principle of insurable interest: The life or property insured. The insurer has a right to avoid the contract if the insured fails to make the full disclosure.the insurer and the insured. It is taken as given that an individual has insurable interest in his\her own life or 23 . or Underwriter. The purposes of subrogation are to hold the negligent persons responsible for the loss and prevent the insured from collecting twice for the same loss. Insurable interest is that interest which considerably alters the position of the assured in the event of loss taking place and if the event does not take place.sum known as premium. One who has to lose as a result of loss may be said to have insurable interest in the life or property insured. iii) Doctrine of subrogation: This means the insurer has the right to stand in the place of the insured after settlement of claims in so far as the insured right of recovery from an alternative source is involved.

Usually the contract provides for – Payment of an amount on the date of maturity or at specified periodic intervals or at death. Subject to certain conditions. In cases of business and family relationships. Periodical payment of insurance premium by the assured.property. a policy can be taken on the life of a spouse or children. Cases where no proof of insurable interest is required are that of a husband’s interest in his wife’s life and wife’s interest in her husband’s life. Types of insurance contract  Life insurance  General insurance WHAT IS LIFE INSURANCE? Life insurance is a contract for payment of money to the person assured (or to the person entitled to receive the same) on the occurrence of the event insured against. Who can buy a life insurance policy? Any person above 18 years of age. to the corporation who provides the insurance. proof of insurable interest is required. who is eligible to enter into a valid contract. 24 . if it occurs earlier.

Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. you earn interest on the policy's cash value as the years roll by. they think of a traditional whole life policy. Many investors use endowment life insurance to fund anticipated financial needs. These are the simplest policies to understand: You pay a fixed premium every year based on your age and other factors. What is an Endowment policy? Unlike whole life. it is more of an investment than a whole life policy. The policy takes you into old age for the same premium you started out with. The surrender value gives you an extra source of retirement money if you need it. Premium for an endowment life policy is much higher than those for a whole life policy. such as college education or retirement.What is a Whole Life Policy? When most people think of life insurance. Endowment life insurance pays the face value of the policy either at the insured's death or at a certain age or after a number of years of premium payment. and your beneficiaries get a fixed benefit after you die. an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Endowment life insurance is a method of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death. 25 . Therefore.

Choosing the right plan Identifying the right plan basis your needs is the first crucial step towards insurance planning. before the maturity date. By choosing the right policy as per your needs i. You may also choose a plan for yourself by identifying the life stage you are at.e. SCOPE OF LIFE INSURANCE Why do one need Life Insurance? Life insurance is designed to protect you and your family against financial uncertainties that may result due to unfortunate demise or illness. the survival benefits are deducted from the maturity value.What is a Money Back policy? This is basically an endowment policy for which a part of the sum assured is paid to the policyholder in the form of survival benefits. If the policyholder survives till the end of the policy term. You can also view it as a comprehensive financial instrument – as a part of your financial planning offering you savings & investment facilities along with cover against financial loss. customized solutions. you will be able to plan for a secure future for yourself and your loved ones. at fixed intervals. 26 . At HDFC SLIC we help you through this decision by identifying your various needs and offering plans that are customized for you. The risk cover on the life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum assured.

27 . always remembering that the money belongs to the policy holders. To invest the funds to serve the best interests of both the policy holders and the nation. life stage and dependents Objectives of Life Insurance 1. 6. you need to then ascertain important factors such as type of cover. 4. 5. 2. 3. insurance amount as per one's income. To innovate and adapt to meet the changing life insurance needs of the community. To conduct business with maximum economy. To spread life insurance and provide life insurance protection to the masses at reasonable cost. To mobilize peoples savings through insurance-linked savings schemes.Analyzing Needs The following needs of a person can be fulfilled by insurance:Protection Need for a sound income protection in case of your unfortunate demise Investment Need to ensure long-term real growth of your money Saving Save for the milestones and protect your savings too Pension Need to save for a comfortable life post retirement Once you have analyzed your needs as per above classification. To act as trustees of the policy holders and protect their individual and collective interests.

marine insurance. motor insurance. voyage insurance 28 . Cargo in Transit. Upwards twice.GENERAL INSURANCE General (non-life) insurance provides a short-term coverage. b. It includes insurance of Marine Hull Insurance Inland Vessels. once in 1982 and then in1990 as the high cost of repairs coupled with third party claims had adversely affect the insured loss ratio. motor insurance due to third party liability claims has substantially contributed to underwriting losses. earth quake. floods.The coverage is : In motor insurance. Motor Insurance:. usually for a period of one year. It can be taken only by the owner of the premises to be insured. construction of ships. Moreover. riots. Motor vehicle insurance is compulsory in India and the motor insurance industry. ocean going Vessels. Motor insurance is Mandatory leading to good amount of premium collection but it is not being fancied upon as it could lead to litigation problem. the rates were revised. Cargo Declaration policy. • Marine Cargo Insurance: This covers: a. and malicious intent. General insurers transact fire insurance. and miscellaneous insurance business. General insurance Products • Fire insurance :Fire Insurance is a comprehensive policy which covers loss on account of fire. freight at risk. strikes. fishing and scaling vessels. Among these categories fire and motor insurance business are predominant.

2. other livestock. whose money it holder in trust. Conduct business with utmost economy and with the full realization that the money to the public.of various vessels. OBJECTIVE OF INSURANCE 1. without losing sight of the interest of the community as a whole. hut. Meet the various life insurance need of the community that would arise in the changing social and economical environment. including • oil and energy in respect of onshore construction risk. Involve all people working in the corporation to the best of their capability in furthering the interests of the insurance public by providing efficient service with courtesy. water pump for agriculture.Cattle/hens. Bear in mind. The main Objective Of insurance behind the nationalization: Life Insurance to the rural areas and to the Socially and economically backward classes with a view to reach all insurable persons in the country and providing them adequate financial cover of reasonable cost. the fund is to be deployed to the best advantage of the investors as the 29 . the investment of funds. general insurers introduced longer-term contracts such as deferred health insurance and project insurance erection risk cover and credit insurance. the primary obligation to its policy holders. 6. and offshore risks. Besides the traditional products. 4. ship breaking insurance. crop. No-Traditional/Rural: Including contractor’s all-risk cover and the marine-cum. 5. Maximize mobilization of peoples’ saving by making insurance – linked securing adequately attractive. 3.

insurance premia. (3) Liquidity: Loans can be raised on sole security of the policy which has acquired a paid-up value. (2) Safety: Saving through insurance guarantee financial Protection against risk of death of the police holder. quarterly half-yearly or yearly installment). BENEFITS TO THE INSURANCE POLICY HOLDER (1) Tax Benefits: Relief in income tax is available for amount paid by way of premium for life insurance. on death. Besides. In life insurance. only the amount (saved with interest) is payable. keeping in view national as well as the community attractive return. popularly known as SSS provide a convenient method if paying premium each month 30 . a Life Insurance policy is also generally accepted as security for even a commercial loan/housing loan.community as whole. investment qualifying for rebate viz. (4) Aid to Thrift: Life Insurance encourages ‘thrift’ Long term saving can be made in a relatively painless manner because of ‘easy installment facility’ (Premium can be made through monthly. premium paid toward annuity plans for life insurance are specified under section 88(2) of the income tax Act. the full sum assured is payable (with bonuses wherever applicable) whereas in other saving scheme. The salary saving scheme.

(7) Insurance Eliminate Dependency At the death of husband or the father or any lead person. loans are granted to policy holders for house or for purchase of flats. (6) Insurance affords peace of mind: The security is the prime motivating factor.through deduction from one’s salary. The insurance is here to assist then like to provide adequate amount at the time of suffering. (5) Money at the tine of Requirements: A suitable insurance plan or a combination of different plans can be taken to meet specific needs that are likely to arise in future such as children’s education. the family would suffer a lot. policy money can be so arranged to be used for other investments subject to certain conditions. Alternatively. (8) Insurance encourages savings: 31 . The salary saving scheme can be introduced in an institution of establishment subject to specified terms and condition. The security ends the tension and finally leads to peace to mind. start in-life or marriage provision or even periodical needs for cash ones a predetermined stretch of tine. The economic dependency if the family is reduced.

From the insurance government get more financial resource and utilize strengthen the economic condition of the country. element of saving is predominant. Saving with insurance has certain extra advantage.In most of the life policies. this policies combine of programme of Insurance and saving. Brief overview of Indian insurance industry Other Insurance companies in India            Aviva Bajaj Allianz Birla sun life ICICI prudential ING vysya Life insurance corporation Max New-York life Metlife India Om Kotak Mahindra Reliance life insurance SBI life insurance 32 . (9) Economic Growth of the country: For the growth of the country insurance provides string hand and mid to protect against loss of death.

It is one of the leading providers of life & pension products to Europe and has substantial business elsewhere around the world. Is a joint venture between Allianz AG.350 corers. Founded in 1890 in Berlin. Allianz is now present in over 70 countries with almost 174.000 employees. 8000 crores Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. ING Vysya 33 . and Bajaj Auto. Aviva Plc is UK’s largest and the world’s fifth largest insurance group. one of the biggest 2 & 3 wheeler manufacturer in the world. Bajaj Allianz Bajaj Allianz Life Insurance co. Bajaj Auto Ltd. At the top of the holding company. Ltd. the Flagship Company of the Rs. Dabur is one of the India’s oldest and largest group of companies with consolidated Annual turnover in excess of Rs 1. Tata AIG AVIVA The life insurance joint venture company between Dabur india and the Aviva UK. Allianz Allianz group is insurers and financial service providers. with its head office in Munich. country’s leading producer of traditional Healthcare products. Allianz AG.

and Egypt. 2000 totaling more than CDN billion. attractive and customer friendly product portfolio and a professional advisor force. US. With assets under management as on September 30. METLIFE INDIA MetLife India was incorporated as a joint venture between MetLife International Holdings. MetLife India is headquartered in Bangalore with offices and presence in major Indian cities. UK. Indonesia. a multinational conglomerate has over 75 business units in India and Overseas with operations in Canada. ICICI Prudential Life Insurance 34 . has excellent rating with the world’s top rating agencies. Thailand. inc. and in a short span pf 3 years has established itself as a distinctive Life insurance brand with an innovative. Malaysia. Jammu & Kashmir Bank. it ranks amongst the largest international financial service organizations in the world. It also distributes products in close cooperation with the ING Vysya Bank network. The company is headquartered at Bangalore Birla sun life insurance company Limited Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial of Canada to enter the Indian insurance sector. sun life financials primary insurance business. Philippines. and an additional 1000 outreach points through its channel partner. To name a few Foreign partner: Sun life assurance.ING Vysya Life Insurance company private Limited entered the private life insurance industry in India in September 2001. M Pallonji & Co and other private investors. The Aditya Birla Group.

New York Life pioneered then unheard-of-concept of insuring women at the same rate as men. Prudential plc.ICICI Prudential Life insurance is a joint venture between the ICICI group and Prudential Plc. Of U. consumer finance . NEW YORK Life New York Life has grown to be a fortune 100 company and an expert in life insurance. ICICI standard off its operation in 1955 with providing finance for industrial development. Has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries.K. and since then it has diversified into housing finance. Their largest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life. It is also the service-oriented businesses of healthcare. MAX NEW YORK LIFE MAX India Max India Limited is a multi-business corporation that has business interest in telecom service. electronic components and specialty products. It was the first insurance company to offer cash dividends to policy owners. bulk pharmaceuticals. mutual funds to being a Universal Bank and its latest venture Life insurance. Foreign Partner Established in 1848. ICICI and prudential came together in 1993 to provide mutual fund product in India and today are the largest private sector mutual fund company in India. of the UK. Prudential plc. life insurance and information technology.K has grown to be the largest life insurance and mutual fund Company in U. In 1894. 35 . Prudential is the largest Life Insurance company in the United Kingdom.

New York Life is a leading provider of insurance in a host of countries worldwide. At the apex. With over 3 million policyholders. seven zonal Training Centre and 35 sales Training Centers. enjoyed a monopoly status and become synonymous with life insurance. Today New York Life has over US billion in assets under management and over 30. At the industry level. Pensions. 36 . A monolith then. social security schemes and Life Insurance business. it continued to introduce a series of firsts – a disability benefit clause in 1920. Life insurance corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life.Thereafter.000 crore Annually to 5.000 agents and employees worldwide. At all levels.6 million policyholders.LIC has hundred divisional offices and has established extensive training facility. grants housing loans through its subsidiary and markets savings and Investment products through its mutual fund. the corporation. is the Management Development Institute.048 branches and Over six lakh agency force. Its main asset is its staff strength of 1. it has helped establish the National Insurance Academy. It presently transacts individual group Insurance business.24 lakh employed and 2. The October 2000 fortune survey named New York Life amongst the top three most admired life and health insurance companies worldwide. along with the Government and the GIC. it pays off about Rs 6. unemployment insurance in 1992 and complete customer care of the web in 1998.

Om kotak mahindra life insurance
Established in 1985 as Kotak capital management finance promoted by Uday kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. the company got its name Kotak Mahindra as industrialists Harish and Anand Mahindra picked a stake in the company. Kotak mahindra is today one of India’s leading Financial institute.

OLD Mutual:Old mutual plc is an international Financial service group in london with expanding operations in life assurance, asset management, banking and general insurance. OLD Mutual is listed on the London Stock Exchange and also on the south-African, Namibian, Malawi, and Zimbabwe stock exchanges. It has 156 years of experience in life insurance business.

OM Kotak Mahindra:OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd. and Old Mutual plc to enter the Indian insurance arena to offer a wide rang of innovative life insurance products.

Reliance Life Insurance:Reliance Life Insurance Company Ltd is a part of Reliance Capital Ltd. of the Reliance –

Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector Financial services Companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance capital has interests in asset management

37

and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking Financial company (NBFT) registered with the Reserve Bank Of India under section 45-1A of the Reserve Bank of India Act, 1934.Reliance Capital sees immense Potential in the rapidly growing Financial service sector in India And aims to become a dominant player in this Industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and corporate.

SBI Life Isurance:SBI Life Insurance Company Ltd is a joint venture between India’s largest bank, State Bank Of India and Cardiff S.A. a leading Life Insurance Company in France. State bank of India is a household name, and it stands as the last world for financial strength and security in the country. SBI’s background dates back to the year 1806 when it started business, as a presidency bank, known as bank of Bengal. Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years. Cardiff came into being in the year 1973. Since then it has grown into a vibrant insurance company specializing in personal lines such as long-term saving, protection products and creditor insurance. Cardiff had a premium income of over US$ 4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has been specializing in the art of selling insurance products through Commercial bank in France and 23 other countries. SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance Regulatory & Development Authority of India and has been issued License number 111 on

38

29th March 2001. the Company’s authorized capital is Rs. 250 crore, and the paid up capital at present Is Rs.125 crore. SBI owns 74% of the total equity , and Cardiff the balance 26%.

TATA AIG:The TATA AIG joint venture is a tie up between the established Tata Group and American International Group Inc. The TATA Group is one of the largest and most respected industrial houses in the country, while AIG is a leading US based insurance and financial service company with a presence in over 130 countries and jurisdiction around the world.

ABOUT IRDA

About the IRDA
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of (a) A Chairman; (b) five whole-time members; 39

(c) four part-time members, (all appointed by the Government of India)

Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. (1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include,

(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; (c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; (d) (e) Specifying promoting the code of in conduct the for surveyors of and loss assessors; business;

efficiency

conduct

insurance

(f) promoting and regulating professional organisations connected with the insurance and reinsurance business;

40

(i) control and regulation of the rates. undertaking inspection of. conducting enquiries and investigations including audit of the insurers. (k) (l) regulating regulating investment of funds of by margin insurance of companies.(g) Levying fees and other charges for carrying out the purposes of this Act. (n) supervising the functioning of the Tariff Advisory Committee. insurance intermediaries and other organisations connected with the insurance business. (h) Calling for information from. maintenance (m) adjudication of disputes between insurers and intermediaries or insurance intermediaries. solvency. (o) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f). intermediaries. (j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act. 1938 (4 of 1938). and (q) Exercising such other powers as may be prescribed 41 . advantages. (p) Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector.

CHAPTER – 3 RESEARCH METHODOLOGY 42 .

43 . the first step determines the native of the last step to be undertaken. infect research is an art of scientific investigation. It is a plant or organizing framework for doing the study and collecting the data. sampling plan and contact methods. Research Methodology is a scientific way to solve research problem. The research problem consists of series of closely related activities. research approaches. Designing a research plan requires decisions all the data sources.RESEARCH METHODOLOGY Research is a common language refers to a search of knowledge. At times. It is necessary for researchers to know not only know research method techniques but also technology. as the specification of methods and procedures for acquiring the Information needed. The project is a study where focus is on the following points: RESEARCH DESIGN A research design is defined. Research instruments. Why a research has been defined. Research is scientific & systematic search for pertinent information on a specific topic. It may be understood as a science of studying how research is don’t scientifically. In it we study various steps that are generally adopted by researchers in studying their research problem. The scope of Research Methodology is wider than that of research methods. what data has been collected and what a particular methods have been adopted and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.

Perhaps as a Result of an exploratory study. CASUAL OR EXPERIMENTAL DESIGN A casual design investigates the cause and effect relationships between two or more variables. The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity. DESCRIPTIVE STUDIES Descriptive research in contrast to exploratory research is marked by the prior formulation of specific research Questions. III. Descriptive research is also characterized by a Preplanned and structured design. the more precise Formulation of problems and the formulations of new alternative courses of action.Research design is mainly of following types: 1. Casual studies EXPLORATORY RESEARCH The major purposes of exploratory studies are the identification of problems. The hypothesis is tested and the experiment is done. Exploratory research. II. before the project is initiated. Descriptive studies 3. 2. The investigator already knows a substantial amount about the research problem. There are following types of casual designs: I. After only design Before after design Before after with control group design 44 .

six studies design After only with control group design. Four groups. sophistication. It is a process requiring care. VII.IV. Consumer panel design Exposit facto design B) DATA COLLECTION METHOD PRIMARY SECONDARY Direct personal Interview Indirect personal Interview Information from correspondents Mailed questionnaire Question filled by enumerators. Published Sources Unpublished Sources Govt. business judgment. 45 . and imagination for which there can be no mechanical substitutes.publication Report Committees & Commissions Private Publication Research Institute Period of Study: This study has been carried out for a maximum period of 8 weeks. Area of study: The study is exclusively done in the area of marketing. V. VI. experience.

Sampling Design: The random sampling is done because any probability sampling procedure would require detailed information about the universe. Random sampling is preferred because of some limitation and the complexity. which is not easily available further. Here. Method of the Sampling: Probability Sampling It is also known as random sampling. 46 . Sample Procedure: In this study “random sampling procedure is used. every item of the universe has an equal chance or probability of being chosen for sample.g. give everyone on the Electoral register a number) and then use random numbers to select the required sample. Area sampling is used in combination with random sampling so as to collect the data from different regions of the city and to iJhansiease reliability. it being an exploratory research. Probability sampling may be taken inform of: Simple Random Sampling A simple random sample gives each member of the population an equal chance of being chosen. It is not a haphazard sample as some people think! One way of achieving a simple random sample is to number each element in the sampling frame (e. Sampling Size: The sampling size of the study is 100.

Stratified Random Sampling With stratified random sampling. It is often used in marketing research. the variable of interest is the citizen's attitude to the redevelopment scheme. the total population is divided into these groups (or clusters) and a sample of the groups is selected. Then the required information is collected from the elements within each selected group. This may be done for every element in these groups or a subsample of elements may be selected within each of these groups. a starting point is chosen at random. a spreadsheet.Random numbers can be obtained using your calculator. In this technique. and the stratification factor will be the values of the respondents' homes. chosen to be related to the major variables being studied. and thereafter at regular intervals. This factor was chosen because it seems reasonable to suppose that it will be related to people's attitudes Cluster and area Sampling Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical population. printed tables of random numbers. or by the more traditional methods of drawing slips of paper from a hat. Systematic Random Sampling This is random sampling with a system! From the sampling frame. For this survey. 47 . the population is first divided into a number of parts or 'strata' according to some characteristic. tossing coins or rolling dice.

It is of following type: Convenience Sampling A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy. chance of being included in a sample. every item in the universe does not have an equal. The total sample size is 100. Quota Sampling In quota sampling the selection of the sample is made by the interviewer. Convenience sampling does not represent the entire population so it is considered bias. Specific questionnaire is prepared for colleting data. who has been given quotas to fill from specified sub-groups of the population. In this type of sampling. Data is collected with mere interaction and formal discussion with different respondents and we collect data in Aviva Life Insurance Company India Ltd.Non Probability Sampling It is also known as deliberate or purposive or judge mental sampling. 48 . Data Collection : Data is collected from various customers through personal interaction. Judgment Sampling The sampling technique used here in probability > Random Sampling.

The information obtained are first hand or original in character.and face to face contact with the persons from whom the information is to be obtained (known as informants). and contact the workers and obtain the information.. The interviewer asks them questions pertaining to the survey and collects the desired information. we worked at Aviva Life Insurance Company India Ltd. the we collect data about the working conditions of the workers of Aviva Life Insurance Company India Ltd. Thus. 49 .

CHAPTER – 4 DATA ANALYSIS 50 .

Respondent age group 14% 22% 18-30 30-45 45-60 36% 28% 60< 51 .1.DATA ANALYSIS Q.

000-1.00.000 27% 33% 52 .00. Respondent income group (per year) 23% 17% Below 50.Q.000 >2.000 50.000 1.000-2.2.00.00.

Q. Respondent’s Profession 20% 22% Serviceman Businessman Professionals 31% 27% others 53 .3.

Q. Are you aware about life insurance? 37% Yes No 63% 54 . 4.

Do you know about IRDA? 29% Yes No 71% 55 . 5.Q.

6. How many numbers of companies in life insurance are you aware of? 18% 27% One Two to Four 21% Four to Eight Less then Eight 34% 56 .Q.

Q. Do you know about AVIVA LIFE INSURANCE? 33% Yes No 67% 57 .7.

8.Q. Sources of awareness of AVIVA LIFE INSURANCE? 31% 27% Advertisement Friend circle Family member FC of AVIVIA 19% 23% 58 .

Q. Do you have any life insurance policy in any company? 27% Yes No 73% 59 . 9.

Do you have any life insurance policy in AVIVA LIFE INSURANCE? 32% Yes No 68% 60 .10.Q.

Q. Which type of life insurance policy do you have? 13% 23% Protection Plan Pension Plan Investment Plan 33% 31% Saving Plan 61 .11.

12.Q. Are you satisfied with AVIVA LIFE INSURANCE Plans? 12% 29% Dissatisfied 26% Average Satisfied Highly Satisfied 33% 62 .

Q. Are you satisfied with customer services given by the AVIVA LIFE INSURANCE? 7% 23% 33% Dissatisfied Average Satisfied Highly Satisfied 37% 63 .13.

14.Q. Rank the AVIVA LIFE INSURANCE with other Insurance Companies in Noida. 10% 21% Best Good Average Bad 32% 37% 64 .

Q.C. of AVIVA LIFE INSURANCE? 28% Yes No 72% 65 . 15. Do you know about any F.

Why do you invest in life insurance? 28% 22% For risk cover For investment For safe future return For tax benefits 21% 29% 66 .16.Q.

CHAPTER – 5 FINDINGS 67 .

68 . According to this peoples are more devoted in insurance sector. The findings are as under. Alternate Hypothesis: The alternate assumption was right. b. CA and serviceman While interacting with people of rural areas I found that a large portion of market i. approx.e. The awareness of IRDA in JHANSI is very low. more than 80% of people are interested in insurance sector. Null Hypothesis: Null hypothesis is rejected because it says that “Most of the population in the areas of JHANSI has no awareness about AVIVA. The people who know about the IRDA these are mostly professional like as Advocate. i. 85% is aware of insurance sector. because it says that 70% population which has awareness about AVIVA. Only 8% of people know about the IRDA. 1. HYPOTHESIS: Null Hypothesis: The null hypothesis is rejected because the result of survey in areas of JHANSI shows that people have much more interest in insurance sector then our assumption.e. a.” Alternate Hypothesis: Alternate hypothesis is accepted.FINDINGS After analyzing and interpreting the collected data.

50% of the surveyed people have satisfied perception regarding AVIVA. In the JHANSI there are percentage of people who know the AVIVA is very high but ratio of people have the life insurance policy are very low only 19% of people have the policy of AVIVA and rest 81% don’t have the policy of AVIVA but they have the life insurance policy of other companies.Till today people do not have a right concept about insurance sector. Out of which only 70% are aware about an AVIVA life insurance company. have dissatisfied perception. 69 . they relate it with death. Although a big percentage of population is aware about the private insurance companies. The people who have the life insurance policy of any company their percentage is very high it is 69% and only 31% people in JHANSI don’t have any type of insurance policy of any company. besides as a security and investment for future etc. while 29% have average perception.15% of the surveyed people have highly satisfied perception and Rest 6%.

RECOMMENDATIONS AND SUGGESTIONS CHAPTER – 6 70 .

1. Training and development of F. Co-operation with agents and branch managers: The Company must full co-operate with branch managers and agents. 2. 4.RECOMMENDATIONS AND SUGGESTIONS Followings are the recommendations and the suggestions not only for the Aviva life insurance company but also for other private life insurance companies if the want to complete with public/government life insurance companies. Concern towards customers: Serious concern must be given to the customers as in today’s scenario it regarded as “Customer is a king”. Agency holder must be well educated: The Company should give agency to that person who is well educated and can convince the customer b handling his queries and doubts. Creating positive image: Private companies should try their level best to create positive and favorable image in the minds of people i. 3.: Company must provide training to their agents and financial so that the can satisfy customer and doubts effectively. In formal words we can say that if can customers more loyal towards the company. 5. 71 . in the minds of their target customers.C.e.

areas.6. Availability of branch offices: There must be the branch offices in each20-30 Km. Incentive schemes and permanency in job: There must be good incentive schemes to be designed as these can acts as good motivators for the agents. 9. Solution of Grievances: There must regular meetings with the financial consultants and agents to motivate them and to solve grievances if there are any. Efficient management: The management appointed must be that much capable that it can control the whole team and improve the goodwill and image of the company. and agents who have shown extra ordinary performance. Sales promotion and marketing: The marketing department must be so aggressive that it can have a close watch on the competitors’ activities. The scheme of permanent job placement must be introduce for those F.C. Not only this but also it must take care of the need and wants of the customers also. 8. 7. 10. 72 .

CHAPTER –7 LIMITATION 73 .

in some cases separate accounts of division are not separately maintained thereby. 74 .  Confidential Information: As the company on account of confidential report has not disclosed some figures.  Unawareness: Executives were unaware of many terms related to same while asking to them. still some relevant information could not be gathered. leading to restrictions in study.LIMITATIONS Although every effort has been in to collect the relevant information through the sources available.  Time: The time duration could not provide ample opportunity to study every detail of the company.  Busy Schedule of Concerned Executives: The concerned executives were having very busy schedule because of which they were reluctant to give appointment. Moreover.

CHAPTER – 8 CONCLUSION 75 .

CONCLUSION The size of the market has grown and size of the insurable population in India is needed vast and the existing player has managed to cover amount one – fourth of it. 76 . therefore. The opportunities before the players are therefore a plenty in terms of target audience. Urge of people to have Insurance and strong marketing can really make the industry reach the sky. Life Insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. People used to buy Insurance for tax exemption but time has changed now. advertising has made the people understand the need of Life Insurance in their lives and people are taking initiatives to buy it. A well – regulated Life Insurance industry which moves with the times by offering its customers tailor made products to satisfy their financial needs is. essential if we desire to progress towards a worry free future.

GLOSSORY 77 .

executive remuneration. self-regulation and codes of best practice may set standards. A bull market is a period of rising share prices. Bull An investor who expects share prices to rise or. 78 . and how and when important information is shared with the market. including the structure of boards. The opposite of bear. Capital Money invested typically in buildings and machinery. such as shares or property. has an optimistic outlook. more generally. Critical illnesses cover a life insurance policy with the benefits payable on diagnosis of one of a number of specified medical conditions. Capital gains tax the tax paid on any profit or gain made by selling something for more than it was bought. In particular.GLOSSORY Contract The common name for a scheme or policy Corporate Governance A term used to describe the way in which rights and responsibilities are shared in the business world. Statutory bodies. the duties of directors. how companies are managed. Capital Gain The profit made on the sale of investments.

trademarks.Capital growth price. normally in return for selling an insurance or investment policy. current assets (cash. A call by a policyholder to the benefits payable under an insurance policy or Commission Payment made to a salesman. and intangible assets (goodwill. patents. Compliance The requirement to operate in accordance with statutory or regulatory guidelines. Most insurance companies have compliance teams whose role is to ensure that the company follows all the necessary rules and Assets Anything of value owned by a business that can be set against its liabilities. Assets are usually divided into four types: fixed assets (typically land. agent or other intermediary. IJhansiease in the value of an investment reflected in the higher selling Claim scheme. work in progress and payments owing). buildings and machines). etc 79 . liquid assets (cash or funds held in a form that can be quickly converted into cash). the most important compliance rules come from the Insurance Regulatory Development Authority (IRDA). In the insurance industry. stock. investments.

Auditor A firm of accountants who check ("audit") a company’s accounts and decide whether the published report is accurate. or what a seller will receive. See also bull. for a particular share 80 . since assurance implies the certainty of an event (such as death) and insurance only the probability. A bear market is a period of falling share prices. Assurance A term sometimes used instead of "insurance". Banc assurance An arrangement whereby banks sell insurance and investment products to their customers on behalf of other financial providers.Asset Management Investment management service provided by financial institutions on behalf of their clients. or what it owes). Balance Sheet A statement showing the financial position of a business on a specific date by listing its assets (what it owns) and its liabilities (the claims on its assets. generally in connection with life business. more generally. Bear An investor who expects share prices to fall or. Bid Price What the market will pay. has a pessimistic outlook about the market.

often with a fixed rate of interest and a fixed repayment date. Blue Chip A description usually applied to the biggest and most highly regarded companies quoted on the stock market. Also called the bid/ask spread. 81 . Broker A professional intermediary who arranges insurance on behalf of an individual or company with an insurance company. The mid-price is the middle point between the two and is often the price quoted in newspapers. shares in whom are considered a reliable and profitable investment.Bid/offer spread the difference between the buying price (bid) and the selling price (offer) of units in an investment. Bond Technically a certificate of debt issued to raise funds. An example is gilt-edged securities ("gilts") issued by the government to borrow from investors via the stock market (also known as fixed interest securities). and represents the policyholder in negotiations and administration of that insurance with the insurer.

BIBLIOGRAPHY 82 .

com. Tull.com • Other site www.bimaonline.aviva.com. www. Donald S.msn. Green.BIBLIOGRAPHY/REFERENCE Books Referred • Marketing Management • Research and Market Decisions by Rama Swamy by Paul E. www.com www.com Company Resources • Product Brochures and Company Manuals • Inputs from company personnel • Aviva Investor 83 . Gerald • Financial Management by Khan & Jain Internet Resources • • Search Sites Websites of the organization www.google.avivaindia.

ANNEXURE 84 .

000( ) >2.000-1.00.000( ) 1.00.000( ) 50.00.00.000( ) • Respondent’s Profession Serviceman( ) Professionals( ) Businessman( ) others( ) 85 .000-2.QUESTIONNAIRE NAME OF RESPONDENT:……………………………………………………………… GENDER:…………………………………………………………………… ADDRESS:………………………………………………………………… CONTACT NUMBER:…………………………………………………… RESERCHER NAME: RANJIT SINGH • Respondent age group 18-30( ) 45-60( ) 30-45( ) 60<( ) • Respondent income group(per year) Below 50.

• Are you aware about life insurance Yes( ) No( ) • Do you know about IRDA Yes( ) No( ) • How many numbers of companies in life insurance are you aware of 1( ) 4-8( ) 2-4( ) >8( ) • Do you know about AVIVA LIFE INSURANCE Yes( ) No( ) • Sources of awareness of AVIVA LIFE INSURANCE Advertisement ( ) Family member( ) Friend circle( ) FC of AVIVIA ( ) • Do you have any life insurance policy in any company Yes( ) No( ) 86 .

C. Best ( ) Average ( ) Good ( ) Bad ( ) • Do you know about any F. of AVIVA LIFE INSURANCE? Yes ( ) No ( ) • Why do you invest in life insurance? 87 .• Do you have any life insurance policy in AVIVA LIFE INSURANCE Yes ( ) No( ) • Which type of life insurance policy do you have Protection Plan ( ) Investment Plan ( ) Pension Plan ( ) Saving Plan ( ) • Are you satisfied with AVIVA LIFE INSURANCE Plans? Dissatisfied ( ) satisfied () Average () highly satisfied ( ) • Are you satisfied with customer services given by the AVIVA LIFE INSURANCE? Dissatisfied( ) satisfied () Average () highly satisfied ( ) • Rank the AVIVA LIFE INSURANCE with other Insurance Companies in Noida.

DatePlaceRespondent signature 88 ..For risk cover ( ) For investment ( ) For safe future return ( ) For tax benefits ( ) Remarks………………………………………………………………………………… …………………………………………………………………………………………… …………………………………….

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