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A Study on Customers Perception With reference to Life Insurance Products, Anand Rathi Securities Pvt. Ltd. In Partial Fulfillment of Internship of Master of Business Administration (MBA)
S.V.S. Sidhardha Regd. No. 1225111355
Under the esteemed Guidance of Dr. M. Jyothsna Associate Professor GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY (Established U/S 3 of UGC Act, 1956) VISAKHAPATNAM
Certificate by the company on their letter head
This is to certify that S.V.S.SIDHARDHA , MBA student (Enrollment No 1225111355), GITAM Institute of Management, GITAM University has done the project from 14 May 2012 to 19 June 2012 on “A Study On Customers Perception With reference to Life Insurance Products, Anand Rathi Securities Pvt. Ltd.” in our Organization for submission in partial fulfillment for the award of Post Graduate Degree of Master of Business Administration by GITAM University and his/her work has been satisfactory.
It is my pleasure to acknowledge and express my gratitude to all those who helped me throughout in the successful completion of this project. I am very thankful Sri. Vivek Vardhan Vice President, of Anand Rathi Securities
Pvt. Ltd (Hyderabad), Banjara Hills, Hyderabad, for extending support throughout
the project. I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal, GITAM Institute of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to experience the work culture in an organization. I am grateful to Dr M . Jyothsna, Associate department , GITAM Institute of Professor of Marketing GITAM University,
Visakhapatnam for his/her continuous guidance to accomplish this project work, successfully.
S.V.S.Sidhardha Roll No. 122511355
I S.V.S.Sidhardha a student of Masters of Business Administration (M.B.A.), GITAM Institute of Management (GIM), GITAM University, hereby declare that the project work initiated on at ANAND RATHI SECURITIES LTD, HYDERABAD is a genuine work done by me in partial fulfillment for the requirement of the degree of Masters of Business Administration. I confirm this has not been published or submitted elsewhere for the award of any degree in part or in full.
Name of the student: S.V.S.Sidhardha Date:
This is to certify that the project Report titled “A Study On Customers Perception With reference to Life Insurance Products, Anand Rathi Securities Pvt. Ltd.” is an original work carried out by S.V.S. Sidhardha (Enrollment No 1225111355), under my guidance an supervision, in partial fulfillment for the award of the degree of Masters of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2011-12. This report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.
Signature of Guide Name and Address of the Guide: Name of Faculty: Dr M. Jotshna Designation: Associate Professor of Marketing Department GITAM Institute of Management Visakhapatnam
CONTENTS OF PROJECT REPORT 1. Title Page 2. Company Certificate 3. Declaration by Student 4. Certificate by Guide 5. Acknowledgement 6. Report i. Chapter -1: Theoretical Framework – 1. (a) Topic related concepts
2. (b) Review of Literature
ii. Chapter-2: Organisational Profile 1. (a) Industry Profile 2. (b) Organisational Profile iii. Chapter-3: The Present Study/Methodology 1. Need//significance of Study 2. Objectives of study 3. Scope of study 4. Research design 5. Data collection method 6. Limitations of the study iv. Chapter-4: Analysis of Study v. Chapter-5: Findings, Suggestions & Conclusions 7. Bibliography* 8. Annexure
Chapter -1: Theoretical Framework (a) Topic related concepts (B) Review of Literature
1.1 CUSTOMER PERCEPTION
Customer perceptions are dynamic. First of all, with the developing relationship between customer and company, his perceptions of the company and its products or services will change. The more experience the customer accumulates, the more his perceptions will shift from factbased judgments to a more general meaning the whole relationship gains for him. Over time, he puts a stronger focus on the consequence of the product or service consumption. Moreover, if the customers’ circumstances change, their needs and preferences often change too. In the external environment, the offerings of competitors, with which customer compares a product or service will change, thus altering his perception of the best offer around. Another point is that the public opinion towards certain issues can change. This effect can reach from fashion trends to the public expectation of good corporate citizenship. Shells intention to dump its Brent Spar platform into the ocean significantly altered many customers perception of which company was worth buying fuel from. Research has been donning on the impact of market share on the perceived quality of a product Depending on the nature of the product and the customers’ preferences, increasing market share can have positive or negative effects on how the customer perceives the product. In these days customer perception is very important .When compared to customer perception of the insurance company to other insurance company. The customer perception is showing the problems of company. One company to other company will be show the difference of the customer services like high quality, low price, offering door delivery service and sometimes company offering free demo class regarding some electronic products. That’s why many people are attracted to private organization. Customer perception is an important component of our relationship with our customers.
1.1.2 Perception and reality
In the case of visual perception, some people can actually see the percept shift in their mind's eye. Others, who are not picture thinkers, may not necessarily perceive the 'shape-shifting' as their world changes. The 'simplistic' nature has been shown by experiment: unambiguous image has multiple interpretations on the perceptual level. The question, "Is the glass half empty or half full?" serves to demonstrate the way an object can be perceived in different ways. Just as one object can give rise to multiple percepts, so an object may fail to give rise tony percept at all: if the percept has no grounding in a person's experience, the person may literally not perceive it. The processes of perception routinely alter what humans see. When people view something with a preconceived concept about it, they tend to take those concepts and see them whether or not they are there. This problem stems from the fact that humans are unable to understand new information, without the inherent bias of their previous knowledge. A person’s knowledge creates his or her reality as much as the truth, because the human mind can only contemplate that to which it has been exposed. When objects are viewed without understanding, the mind will try to reach for something that it already recognizes, in order to process what it is viewing. That which most closely relates to the unfamiliar from our past experiences, makes up what we see when we look at things that we don’t comprehend. This confusing ambiguity of perception is exploited in human technologies such as camouflage, and also in biological mimicry, for example by European Peacock butterflies, whose wings bear eye markings that birds respond to as though they were the eyes of dangerous predator. Perceptual ambiguity is not restricted to vision. For example, recent touch perception research Robles-De-La-Torre & Hayward 2001 found that kinesthesia basedhaptic perception strongly relies on the forces experienced during touch.
Review of Literature
Chapter-2: Organisational Profile Industry Profile Organisational Profile
Life is full of risk and uncertainties. Since we are the social human being we have certain responsibilities too. Indian consumers have big influence of emotions and rationality on their buying decisions. They believe in future rather than the present and desire to have a better and secured future, in this direction life insurance services have its own value in terms of minimizing risk and uncertainties. Indian economy is developing and having huge middle class societal status and salaried persons. Their money value for current needs and future desires here the pendulum moves to another side which generate the reasons behind holding a policy. Here the attempt has been made in this research paper to study the buying behavior of consumers towards life insurance services. Life insurance is one of the best known insurance products today. People buy these products as investment tools and also as protection for themselves and their families. All the insurance companies the world over are looking at
attracting the eye balls of customer and positioning their solutions innovatively to cater to niche and specific markets. One of the most critical aspects both from the view point of the customer and the insurer is getting important and relevant leads that can be beneficial for both.
2.1 Origin of Insurance: Almost 4,500 years ago, in the ancient land of Babylonia, 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. In 2100 BC, the Code of Hammurabi granted legal status to the practice that, perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, 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, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon themselves to protect
their member traders from loss on account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage.
The first step:
Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.
The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups.
Indian Insurance Industry: Insurers
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
Life Insurance Corporation of India (LIC)
General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National insurer) GIC had four subsidiary companies, namely (with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent insurance companies.
The Oriental Insurance Company Limited The New India Assurance Company Limited National Insurance Company Limited United India Insurance Company Limited
Insurance Industry in the year 2000-2001 had 16 new entrants, namely:
2.1.1 Meaning of Insurance:
Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk. 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. Insurance is a scheme of economic cooperation by which members of the community share the unavoidable risks.
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, which may be certain or uncertain. The other party called Insure or Insurant pays in exchange a fixed sum known as premium. The insurer and the insurant are also known as Assurer or Underwriter and Assurant, respectively. The document which embodies the contract is called the policy.
2.1.2 Types of insurance contract: Life insurance General insurance 2.1.3 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 an event insured against. Usually the contract provides for –
Payment of an amount may be on the date of maturity or at specified periodic intervals or after death, if it occurs earlier. Periodical payment of insurance premium can be done by the assured to the corporation who provides the insurance.
Who can buy a life insurance policy?
Any person above 18 years of age and who is eligible to enter into a valid contract. Subject to certain conditions, a policy can be taken on the life of a spouse or children.
What is a Whole Life Policy?
When most people think of life insurance, they think of a traditional whole life policy. These are the simplest policies to understand: You pay a fixed premium every year based on your age and other factors, you earn interest on the policy's cash value as the years roll by, and your beneficiaries get a fixed benefit after you die.
The policy takes you into old age for the same premium you started out with. 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. The surrender value gives you an extra source of retirement money if you need it.
What is an Endowment Policy?
Unlike whole life, an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy. 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.
Endowment life insurance is a method of accumulating capital for a specific purpose and protecting this savings program against the saver's premature death. Many investors use endowment life insurance to fund anticipated financial needs, such as college education or retirement. Premium for an endowment life policy is much higher than those for a whole life policy.
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, at fixed intervals, before the maturity date. 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. If the policyholder survives till the end of the policy term, the survival benefits are deducted from the maturity value.
Why does 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. 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. By choosing the right policy as per your needs i.e. customized solutions, you will be able to plan for a secure future for yourself and your loved ones.
Choosing the right plan:
Identifying the right plan basis your needs is the first crucial step towards insurance planning. At RLIC we help customer by identifying their various needs and offering plans that are customized for you. You may also choose a plan by identifying the life stage you are at.
The following needs of a person can be fulfilled by insurance:
Need for a sound income protection in case of your unfortunate demise.
Need to ensure long-term real growth of your money.
Save for the milestones and protect your savings too.
Need to save for a comfortable life post retirement.
Objectives of Life Insurance:
1. To spread life insurance and provide life insurance protection to the masses at reasonable cost. 2. To mobilize peoples savings through insurance-linked savings schemes. 3. To invest the funds to serve the best interests of both the policy holders and the nation. 4. To conduct business with maximum economy, always remembering that the money belongs to the policy holders.
2.1.4 General Insurance:
General (non-life) insurance provides a short-term coverage, usually for a period of one year. General insurers transact fire insurance, motor insurance, marine insurance, and miscellaneous insurance business. Among these categories fire and motor insurance business are predominant. Motor vehicle insurance is compulsory in India and the motor insurance industry. Moreover, motor insurance due to third party liability claims has substantially contributed to underwriting losses.
General Insurance Products:
Fire Insurance: Fire Insurance is a comprehensive policy which covers loss on account of fire, earth quake, riots, floods, strikes, and malicious intent. It can be taken only by the owner of the premises to be insured.
Motor Insurance: This covers:
In motor insurance, the rates were revised. Upwards twice, 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 is mandatory leading to good amount of premium collection but it is not being fancied upon as it could lead to litigation problem.
Marine Cargo Insurance: This covers:
a. Cargo in Transit. b. Cargo Declaration policy. It includes insurance of Marine Hull Insurance Inland Vessels, Ocean going Vessels, fishing and
scaling vessels, freight at risk, construction of ships, voyage insurance of various vessels, ship breaking insurance, oil and energy in respect of onshore and offshore risks, including construction risk.
2.1.5 Objective of Insurance Policy:
1. Conduct business with utmost economy and with the full realization that the money to the public. 2. Meet the various life insurance need of the community that would arise in the changing social and economical environment. 3. Maximize mobilization of peoples ‟ saving by making insurance – linked securing adequately attractive.
2.1.6 Benefits to Insurance Policy Holder: (1) Tax Benefits:
Relief in income tax is available for amount paid by way of premium for life insurance. Investment qualifying for rebate viz. insurance premia, premium paid toward annuity plans for life insurance are specified under section 88(2) of the income tax Act. (2) Safety: In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other saving scheme, only the amount (saved with interest) is payable. (3) Liquidity: Loans can be raised on sole security of the policy which has acquired a paid-up value. Besides, a Life Insurance policy is also generally accepted as security for even a commercial loan/housing loan. (4) Money at the time 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, start in-life or marriage provision or even periodical needs for cash ones a predetermined stretch of time. Alternatively, policy money can be so arranged to be used for other investments subject to certain conditions, loans are granted to policy holders for house or for purchase of flats.
(5) Insurance affords peace of mind: The security is the prime motivating factor. The security ends the tension and finally leads to peace to mind. (6) Insurance encourages savings: In most of the life policies, element of saving is predominant, this policies combine of programmed of Insurance and saving. Saving with insurance has certain extra advantage.
In India : Life Insurers:
S.No. Registration Date of Number Reg. 1 2 3 4 5 6 7 8 9 10 101 104 105 107 109 110 111 114 116 117 Name of the Company
23.10.2000 HDFC Standard Life Insurance Company Ltd. 15.11.2000 Max New York Life Insurance Co. Ltd. 24.11.2000 ICICI Prudential Life Insurance Company Ltd. 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited 31.01.2001 Birla Sun Life Insurance Company Ltd. 12.02.2001 Tata AIG Life Insurance Company Ltd. 30.03.2001 SBI Life Insurance Company Limited . 02.08.2001 ING Vysya Life Insurance Company Private Limited 03.08.2001 Bajaj Allianz Life Insurance Company Limited 06.08.2001 Metlife India Insurance Company Ltd.
General Insurers :
S.No. 1 2 Registration Date of Name of the Company Number Registration 102 103 23.10.2000 23.10.2000 Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company
Limited. 3 4 5 6 106 108 113 115 04.12.2000 22.01.2001 02.05.2001 03.08.2001 IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited.
Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)
Insurance Industry in this year, so far has 5new entrants; namely
S.No. Registration Date of Number Reg. 1 121 Name of the Company
03.01.2002 Reliance Life Insurance Company Limited.
14.05.2002 Aviva Life Insurance Co. India Ltd.
General Insurers :
S.No. 1 2. 3. Registration Date of Name of the Company Number Registration 123 124 125 15.07.2002 27.08.2002 27.08.2002 Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.
Yr: 2003-2004: (From 1st Jan 2003 till Date)
Insurance Industry in this year, so far has 1new entrants; namely
S.No. Registration Date of Number Reg. 1 127 Name of the Company
06.02.2004 Sahara India Insurance Company Ltd.
Insurance Industry in this year, so far has 1new entrants; namely
S.No. Registration Date of Number Reg. 1 128 Name of the Company
17.11.2005 Shriram Life Insurance Company Ltd.
Insurance Industry in this year, had 1new entrants; namely
S.No. Registration Date of Number Reg. 1 130 14.07.2006 Name of the Company Bharti AXA Life Insurance Company Ltd.
Insurance Industry in this year, had 5 new entrants; namely
S.No. Registration Date of Number Reg. 1 2 133 135 Name of the Company
04.09.2007 Future Generali India Life Insurance Company Limited 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
3 4 5 131 132 134 03-082007 04-092007 16-112007 Apollo Munich Health Insurance Company Limited Future Generali India Insurance Company Limited Universal Sompo General Insurance Company Ltd.
Insurance Industry in this year, so far has 3 new entrants in Life and 1 new entry in General namely
S.N o. 1 2
Registrati on Number 136 138
Date of Reg. 08.05.20 08 27.06.20 08 27.06.20 08
Name of the Company
Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. Aegon Religare Life Insurance Company Ltd.
3 4 5
140 142 143
DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd.,
IndiaFirst Life Insurance Company Ltd.
S.No. Registration Date of Number Reg. 1 2 3 137 139 141 8.05.2008 Name of the Company Shriram General Insurance Company Limited,
27.06.2008 Bharti Axa General Insurance Company Ltd. 15.12.2008 Raheja QBE General Insurance Co. Ltd
Insurance business is divided into four classes : 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law.
LEGISLATION (as on 1.4.2000) : Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.
INFORMATION About the insurance industry, the following documents may be helpful: Malhotra Committee Report (The Report of the Committee on Reforms in the Insurance Sector); IRDA's First Annual Report - 2001
2.2 ABOUT ANAND RATHI
AnandRathi (AR) AnandRathi is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. In year 2007 Citigroup Venture Capital International joined the group as a financial partner.
To be India's first Multinational providing complete financial services solution across the globe
Providing integrated financial care driven by the relationship of trust and confidence.
2.2.1 AR CORE STRENGTHS
Breadth of Services: In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of financial services ranging from brokerage services in equities and commodities, distribution of mutual funds, IPOs and insurance products, real estate, investment banking, merger and acquisitions, corporate finance and corporate advisory. Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs.
2.2.2 MANAGEMENT TEAM
AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience.
In-Depth Research: Our research expertise is at the core of the value proposition that we
offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common - to go far deeper than others, to deliver incisive insights and ideas and be accountable for results. Management Team:
Our senior Management comprises a diverse talent pool that brings together rich experience from across industry as well as financial services. 1. Mr. Anand Rathi - Group Chairman, Chartered Accountant, Past President, BSE; Held
several Senior Management positions with one of India's largest industrial groups
2. Mr. Pradeep Gupta - Vice Chairman; Plus 17 years of experience in Financial Services.
3. Mr. Amit Rathi - Managing Director; Chartered Accountant & MBA; Plus 11 years of experience in Financial Service
2.2.3 ANAND RATHI – HISTORY FILE
1994: Started activities in consulting and Institutional equity sales with staff of 15 1995: Set up a research desk and empanelled with major institutional investors 1997: Introduced investment banking businesses Retail brokerage services launched 1999: Lead managed first IPO and executed first M & A deal 2001: Initiated Wealth Management Services 2002: Retail business expansion recommences with ownership model
1994: Started activities in consulting & Institutional equity sales with 15 staff.
1995: Set up a research desk and empanelled with major institutional investors 1997: Introduced investment banking businesses; Retail brokerage services launched 1999: Lead managed first IPO and executed first M & A deal 2001: Initiated Wealth Management Services 2002: Retail business expansion recommences with ownership model 2003: Wealth Management assets cross Rs1500 crores; Insurance broking launched; Launch of Wealth Management services in Dubai; Retail Branch network exceeds 50 2004: Commodities brokerage and real estate services introduced; Wealth Management assets cross Rs3000crores; Institutional equities business relaunched and senior research team put in place; Retail Branch network expands across 100 locations within India 2005: Real Estate Private Equity Fund Launched; Retail Branch network expands across 200 locations within India 2006: AR Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange (DGCX); Ranked amongst South Asia's top 5 wealth managers for the ultra-rich by Asia Money 2006 poll; Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net worth Individuals (HNI) Category; Ranked 9th in the Retail Category having more than 5% market share; Completes its presence in all States across the country with offices at 300+ locations within India 2009: Citigroup Venture Capital International picks up 19.9% equity stake; Retail
customer base crosses 100 thousand; Establishes presence in over 350 locations
2.2.5 PRIVATE WEALTH MANAGMENT Introduction
Affluent individuals need sophisticated advice and strategic guidance to capitalize on opportunities to preserve, grow and transfer their wealth. In addition, a desire exists within wealthy families to simplify the management of multigenerational needs and lessen the profound emotional impact of wealth on family members. AR offers the most extensive
platform of customized servicing, individual strategies and products to help meet the requirements of the affluent private investor. We provide comprehensive, integrated investment strategies to address your wealth management needs. Working closely with specialists across firm PWM offers an array of products & services, which includes AR's highly-rated research. Process We realize the need to simplify the complexities of the investment strategies and we achieve this by offering highly customized wealth management product - LaXmi TM (let your Assets go the Xtra Mile TM). Our Personalized Relationship Managers along with the expert team of analysts and advisors will assist you in analyzing all your investment needs and advice you on specialized solutions created exclusively for you. We have a dedicated research team who constantly screens the market for investment prospects. The team provides support in fine-tuning the investment strategy & suggests how to capitalize on these opportunities. Research Our research expertise is at the core of the value proposition that we offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common - to go far deeper than others, to deliver incisive insights and ideas and be accountable for results. AR research processes incorporate quantitative areas well as qualitative analyses. This multi-pronged approach helps us to provide superior risk- adjusted returns for our clients. AR analysts provide objective and decisive research that is designed to enable clients to make informed investment decisions. The team covers entire spectrum of financial markets from equities, fixed income, and commodities to currencies. They also cover the global markets, to give clients an unparalleled macro-view of the investment opportunities across the globe.
2.2.6 BROKERAGE & DISTRIBUTION SERVICES
Equity & Derivatives Brokerage: AnandRathi provides end-to-end equity solutions to institutional and individual investors. Consistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established us a competent and reliable research unit across the country. Clients can trade through us online on BSE and
NSE for both equities and derivatives. They are supported by dedicated sales & trading teams in our trading desks across the country. Research and investment ideas can be accessed by clients either through their designated dealers, email, web or SMS. Mutual Funds: AR is one of India's top mutual fund distribution houses. Our success lies in our philosophy of providing consistently superior, independent and unbiased advice to our clients backed by in-depth research. We firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. We have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas, picking best performing funds across asset classes and providing insights into performances of select funds. Depository Services: AR Depository Services provides you with a secure and convenient way for holding your securities on both CDSL and NSDL. Our depository services include settlement, clearing and custody of securities, registration of shares and dematerialization. We offer you daily updated internet access to your holding statement and transaction summary. Commodities: Commodities broking - a whole new opportunity to hedge business risk and an attractive investment opportunity to deliver superior returns for investors. Our commodities broking services include online futures trading through NCDEX and MCX and depository services through CDSL. Commodities broking is supported by a dedicated research cell that provides both technical as well as fundamental research. Our research covers a broad range of traded commodities including precious and base metals, Oils and Oilseeds, agric-commodities such as wheat, chana, guar, guar gum and spices such as sugar, jeera and cotton. In addition to transaction execution, we provide our clients customized advice on hedging strategies, investment ideas and arbitrage opportunities. Insurance Broking: As an insurance broker, we provide to our clients comprehensive risk management techniques, both within the business as well as on the personal front. Risk management includes identification, measurement and assessment of the risk and handling of the risk, of which insurance is an integral part. The firm deals with both life insurance and general insurance products across all insurance companies. Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover the least possible
cost. The entire sales process and product selection is research oriented and customized to the client's needs. We lay strong emphasis on timely claim settlement and post sales services.
Our services: Risk Management Due diligence and research on policies available Recommendation on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement
IPO: We are a leading primary market distributor across the country. Our strong performance in IPOs has been a result of our vast experience in the Primary Market, a wide network of branches across India, strong distribution capabilities and a dedicated research team. We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. 2.2.7 Products Equity & Derivatives Mutual Funds Depository Services Commodities Insurance IPOs 2.2.8 Client List ACC Bayer Tata Iron & steel
Century Textiles Clariant CRISIL Crompton Greaves Dabur Datamatics GE Shipping Godrej Goodlass Nerolac Grasim Gujarat Ambuja Cements Gujarat Pipavav Port Heinz India Hindalco
Chapter-3: The Present Study/Methodology
• • • • • •
Need//significance of Study Objectives of study Scope of study Research design Data collection method Limitations of the study
NEED FOR THE STUDY
This study is also useful to the organization (ANAND RATHI FINANCIAL SERVICES LTD) Through this th customer base can be increased basing on the needs of the customers and their perception towards life insurance products and their performance. To analyze the customers perception of life insurance products and satisfaction regarding the ser vices To know what type of insurance policies the customers need. To find out the customers awarenes of life insurance product To increase the customer base.
OBJECTIVES OF THE STUDY:
Following are the main objectives of the study a) To know the customers awareness regarding the life insurance. b) To know the customers awareness regarding the various life insurance companies in the insurance sector. c) To know the customers preference towards the private or public insurance sector. d) To know the different promotion strategy used by companies to aware their customers. e) To evaluate the factors underlying consumer perception towards investment in life insurance policies. f) To develop and standardize a measure to evaluate investment pattern in life insurance services.
SCOPE OF STUDY:
During the summer training I have done my work through questionnaire. In the entire work I have interviewed people of with different back ground who is a sol business trader , a person who is working in the organization . I found that most of persons prefer insurance policies for taxes exceptions, life time saving . This project will help to understand the current market scenario and marketing in stiff competition.
Research design states the whole procedure of collecting the data’s from the sample. What type of research design has been taken or opted to complete this project worthwhile, that has been described below. The research design consists of – selecting the sample, collecting the data’s from those samples and most importantly the process has been taken to take those data’s from the sample (research methodology), everything. So to submit a good project report, one’s research design should be very properly set. A descriptive-analytic research design is adopted in this study. This study will give a clear idea about the customers satisfaction about the life insurance products . This will make company suggest the insurance companies enable to develop new strategies for the current scenario of the market.
RESEARCH DESIGN: (a) Sampling Technique: The technique is used in the study is Simple Random sampling procedure. (b) Sample Unit: In the study of research has been done towards the respondents . (c) Sample Size: Sample size is 100 respondents (d)Are of sample: Hyderabad
SOURCE OF DATA:
(a) Primary Data:
Primary data was collected by preparing questionnaire for customers. The questionnaire was filled through directly interviewing the customer.
(b) Secondary Data:
Secondary data will consist of different literatures like books which are published, articles, internet , the company manuals and websites of company.
TOOLS FOR ANALYSIS:
The collected data is furnished in the form of purposeful tables. The tabulated data is further analyzed with the help of percentage. Bar diagrams and pie charts are constructed for quick and easy understanding of data.
LIMITATION OF THE STUDY:
The study has got certain limitations of which a few are listed below 1. The Study is under taken only in twin cities. So the information does not resembles the overall market potential. 2. Is the availability of respondents are less the survey has been done on 100 customers. 3. There may be an error due to market fluctuation. In spite of all these limitations the project can definitely be helpful for ANAND RATHI FINANCIAL SERVICES LTD in understanding the customers perception regarding life insurance products and their satisfaction with the services which would thereby help the company in implementing new scenarios according to the current situation and helps in increasing the customer base. 4. The time period alooted for the study was only 6 weeks which h may provide deceptive picture in comparison to a study based on longer term.
Chapter-4: Analysis of Study
Age(in years) Table1:
Age Below 18 18-35 35-50 Above 50 No.of responses Percentage 0% 0 54% 54 36% 36 10% 10
0% 10% Below 18 18-35 36% 54% 35-50 Above 50
Interpretation : The above pie chart deals with the age factor of the respondents to my
project .54% of the respondents were between 18-35, 36% of the respondents were between 3550, 10% were above 50%.
Annual income Less than Rs. 1,00,000 Rs. 1, 00,001 to Rs. 3, 00,000 Rs 3, 00,001 to Rs. 5, 00,000 Rs. 5, 00,001 and Above NO.of responses Percentage 1% 1 43% 43 49 7 49% 7%
1% 7% Less than Rs. 1,00,000 Rs. 1, 00,001 to Rs. 3, 00,000 Rs 3, 00,001 to Rs. 5, 00,000 Rs. 5, 00,001 and Above
Interpretation : The above pie chart deals with the annual income of the respondents . 1%
respondents annual income was less than Rs 1,00,000. 7% respondents annual income was above Rs 5,00,001. 49% respondents annual income was between Rs 3,00,001 to Rs 5,00,000 and 43% between Rs 1,00,000 to 3,00,000.
Are you currently insured?
Currently insured Yes No No.of responses Percentage 100% 100 0% 0
120 100 80 60 40 20 0 No Yes No.of responses 0 100 Percentage 0% 100%
Interpretation: The above graph deals with the no of respondents who are insured and who
are not insured . 100 % of the respondents were insured as the survey was conducted on the customers who are already insured to know the perception and satisfaction level with the services.
Are you satisfied with your current insurer ?
satisfied Yes No no.of responses Percentage 92 92% 8 8%
Satisfaction with your current insurer
120 100 80 60 40 20 0 no yes no.of responses 8 92 percentage 8% 92%
From the above graph it was found that 92 % of the customers were satisfied with their current insurer . 8% of the customers were unsatisfied with their insurer .
Which is your favoured insurance company ?
Insurance company LIC ICICI HDFC Birla Sun Life Baja Allianz Others No.of responses percentage 25% 25 33% 33 26% 26 5% 5 4% 4 7% 7
Graph 5 :
Favored insurance company
4% 5% 7% 25% LIC ICICI HDFC 26% 33% Birla Sun Life Baja Allianz Others
Interpretation : From the above study it was found that ICICI was the most favored
insurance company then it was LIC and HDFC .
How did you come to know about insurance policy and insurance company ?
Table 6: No.of responses 0 Percentage 0%
Through ANAND RATHI FINANCIAL SERVICES LTD Through advertisements Friends Internet Others
62 36 2 0
62% 36% 2% 0%
70 60 50 40 30 20 10 0 0 62 36
Interpretation : 62% of the customers have come to about the insurance policy company through
advertisements and 36 % through friends
Most of the customers have taken life insurance in LIC ,HDFC, Jeevan Anand policy,childrens bright future,money plus plan.
Would you like to review your financial goals with an expert, who will be assisting you in achieving your financial goals?
Review of finacial goals
No.of responses 72 28
percentage 72% 28%
120 100 80 60 40 20 0 No Yes No.of responses 28 72 percentage 28% 72%
Interpretation : 72% of the customers like to review their financial goals with the help of
expert and the rest 28% customers would not like to review their financial goals.
What is your main concern while taking an insurance policy ?
View points No.of responses Percentage Tax Benifit 70% 70 Security 69% 69 Investment/savings 20% 20 Others 0% 0
80 70 60 50 40 30 20 10 0 70% 69%
Percentage 20% 0% No.of responses
Interpretation : From the above study it was found that 70% of the customers take insurance
policy for tax benefit and 69% consider security as the option where as 20 % consider investment and savings as the best option. Here the respondent can choose multiple options .
Does this policy satisfy your financial needs? (Please rate on the scale of 1 to 10 with 1 being least satisfied)
Financial needs 10 9 8 7 6 5 4 3 2 1 No.of responses Percenatge 0% 0 2% 2 17% 17 37% 37 26% 26 15% 15 3% 3 0% 0 0% 0 0% 0
Graph 9 :
50 45 40 35 30 25 20 15 10 5 0 1 2 3 scale 4 5 6 No.of responses 0% 0 10 2% 2 9 8 7 6 17 15 3% 3 5 4 7 Percenatge 0% 0 3 8 0% 0 2 9 0% 0 1 10 17% 37 26 15% 26% 37%
Interpretation : 37% of the customers rated 7 regarding the policy satisfying their financial
needs , 26 % of them rated 6 , 15% of the customers rated 5 and 2 % of the customers rated 9.
Please express your opinion for the premiums paid for the above policy?
Table 10 :
Premiums Very High High Moderate Low Very Low No,of responses 0 14 86 0 0 Percenatge 0% 14% 86% 0% 0%
Graph 10 :
0% 0% 0% 14% Very High High Moderate Low Very Low 86%
Interpretation : 86% of the customers said that the premiums paid were moderate and 14 %
said that the premiums paid were high.
What is your saving as percentage (%) of annual income?
Table 11: Saving 10 to 20 21 to 30 31 to 40 41 to 50 No.of responses 21 78 1 0 Percenatge 21% 78% 1% 0%
1% 0% 21% 10 to 20 21 to 30 31 to 40 41 to 50 78%
Interpretation : From the above study it was found that 78 % of the customers save
inbtween 21 to 30 percent . 21% of the customers save between 10 to 20 percent.
How much money do you want to invest in insurance plans?
Investment Rs. 10,000 to Rs. 15,000 Rs. 15,001 to Rs. 20,000 Rs. 20,000 to Rs. 25,000 Rs. 25,001 t0 Rs. 30,000 Rs. 30,001 to Rs. 35,000 No.of responses Percenatge 25% 25 32% 32 24% 24 12% 12 7% 7
7% 12% 25% Rs. 10,000 to Rs. 15,000 Rs. 15,001 to Rs. 20,000 Rs. 20,000 to Rs. 25,000 24% 32% Rs. 25,001 t0 Rs. 30,000 Rs. 30,001 to Rs. 35,000
Interpretation : 32% of the customers invest between Rs 15,000 to Rs 20,000 . 24% of the
customers invest between Rs 20,000 to Rs 25,000 . 25% of the customers invest between Rs 10,000 to Rs 15,000 .
On which company do you believe most?
Company Private insurance company Public insurance company
No.of responses Percenatge 67% 67 33% 33
120 100 80 Public insurance company 60 40 20 0 No.of responses Percenatge Private insurance company
67% of the customers prefer private insurance company where as 33% of
the customers prefer public insurance company.
How do you pay your premium?
Table 13: Premium Cash Cheque Credit Card Demand Draft No.of responses Percenatge 49 44 7 0
49% 44% 7% 0%
0% 7% Cash 49% 44% Cheque Credit Card Demand Draft
Interpretation: 44% of the customers prefer to pay through cheque . 49 % prefer to pay
Do you think that insurance policy is necessity of today’s life?
Table 14: Necessity Yes No No.of responses Percenatge 98 2
120 100 80 60 40 20 0 No.of responses Percenatge No Yes
Interpretation: 98% of the customers in the sample think that insurance policy is a necessity
in today’s life.
In what interval do you want to pay your premium?
Table15: Interval Monthly Half Yearly Yearly No.of responses Percenatge 81 19 0
81% 19% 0%
0% 19% Monthly Half Yearly Yearly 81%
Interpretation : 81 % of the customers want to pay their premiums monthly/ 19% of the
customers want to pay half yearly.
According to you, in what areas should the insurance companies work upon?
Table 16: Areas Less complicated procedures Fewer premiums More Returns Transparency No.of responses Percenatge 22 25 46 7
22% 25% 46% 7%
Graph 16 :
7% 22% Less complicated procedures Fewer premiums More Returns 46% 25% Transparency
From the above study it was found that 46% of the customers suggest that the
insurance companies should work on more returns and 25% of the customers on fewer premiums .
Do You think that services have improved after allowing private players in insurance sector ?
Improvement Yes No No.of responses Percenatge 79 21
120 100 80 60 40 20 0 No Yes No.of responses 21 79 Percenatge 21% 79%
Interpretation : 79% of the customers think that services have improved after allowing
private players in insurance sector.
Are you aware with the services of ANAND RATHI FINANCIAL SERVICES LTD?
Table 18: Aware Yes No No.of responses Percenatge 18 82
120 100 80 60 40 20 0 No.of responses Percenatge No Yes
Interpretation : 18% of the customers were aware of the services of ANAND RATHI
INNCIAL SERVICES LTD.
What type of OTHER financial services you preferred most?
Table 19 : Other services Equity & Derivatives Mutual Funds Depository Services Commodities IPOs No.of responses Percenatge 35 41 23 0 0
35% 41% 23% 0% 0%
Equity & Derivatives Mutual Funds Depository Services Commodities IPOs
Interpretation : From the above study 42% of the respondents prefer mutual funds and 35 %
of the respondents prefer equity and derivates and 23% prefer depository services.
Chapter-5 : Findings sUggestions conclusion
1. From the above study it was found that 92 % of the customers were satisfied with their current insurer . 8% of the customers were unsatisfied with their insurer . 2. From the above study 42% of the respondents prefer mutual funds and 35 % of the respondents prefer equity and derivates and 23% prefer depository services. 3. 46% of the customers suggest that the insurance companies should work on more returns
and 25% of the customers on fewer premiums .
4. 67% of the customers prefer private insurance company where as 33% of the customers prefer public insurance company. 5. Most of the customers have taken life insurance in LIC ,HDFC, Jeevan Anand
policy,childrens bright future,money plus plan.
6. Customers think that services have improved after allowing private players in insurance sector. 7. Most of the respondents are satisfied by the services offered by there insurance company while some says that they are not satisfied by the services. 8. Most of the respondents want more More returns from the side of the company. 9. Most of the people buy life insurance as just a tax benefit tool or as a life cover while only a few of the respondent take it as a saving option.The reason for this is lack of knowledge of insurance benefits among the people.
CONCLUSION: After observing the all situations that boosted a number of Pvt.
Companies associated with multinational in the Insurance Sector to give befitting competition to the established in private sector, we come at the conclusion that There is a very tough competition among the private insurance companies on the level of new trend of advertising to a major part of Customers.
The entry of more Pvt. players in the Insurance Sector have expanded the product
segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.
The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations: More returns should be provided on Insurance plans. Company can recruit sales promoters so that maximum information can be provided to the potential client. By showing additional and alternative income source along with various schemes for Financial Consultant in the company so that more and more FC can be recruited. Free life cover for every active Financial Consultant. Discounted rate premium for its family members. Make people understand about the meaning of the IRDA authorization and its validity. Company should organize the program in the society, so that people will be aware about the company Separate time slot for Working Professionals, House Wives and Retired people. Agency of non-life products should also be provided along with life. Company should open more branches in different cities
Websites www.irda.net www.theconomictimes.com www.indiabudget.nic.in www.outlookmoney.com www.moneycontrol.com www.scrib.com www.dotdoc.com www.slideshare.com Used literature “The Times of India” “The economic times” Valuable information from corporate guide and faculty guide
“Study On Customers Perception Towards Life Insurance Products And Customer Satisfaction Regarding Services”
Declaration: It is purely for academic purposes and the data given will not be passed to anyone. (A) Personal Information: .................................................................................................................................................................... a. Name: ................................................................................... b. Gender: a) Male b) Female c. Age (in years) a) Below 18 c) 35-50 b)18-35 d) Above 50
Occupation: ............................................................................. Annual Income: a) Less than Rs. 1,00,000 b) c) d) Rs. 1, 00,001 to Rs. 3, 00,000 Rs 3, 00,001 to Rs. 5, 00,000 Rs. 5, 00,001 and Above
(B) Questions: ....................................................................................................................................................................
Q.1 Are you currently insured? a) Yes b) No Q.2 Are you satisfied with your current insurer ? a) Yes b) No
Q.3 Which is your favoured insurance company ? LIC ICICI HDFC Birla sun life Bajaj Allianz Others
Q.4 How did you come to know about insurance policy and insurance company ? a) Through ANAND RATHI FINANCIAL SERVICES LTD. b) Through advertisements. c) Friends. d) Relatives. e) Internet. f) Others Q.5 What plan you have taken pleases help me by sharing reasons? ------------------------------------------------------------------------------------------------------------------------------Q.6 Would you like to review your financial goals with an expert, who will be assisting you in achieving your financial goals? a) Yes b) No Q.7 What is your main concern while taking an insurance policy ? Tax benefit Security Investment/Savings others the scale of 1 to 10
Q.8 Does this policy satisfy your financial needs? (Please rate on with 1 being least satisfied)
Q.9 Please express your opinion for the premiums paid for the above policy? a) Very high b) High c) Moderate
d) Low e) Very Low Q.10 What is your saving as percentage (%) of annual income? a) 10 to 20 b) 21 to 30 c) 31 to 40 d) 41 to 50 Q.11 How much money do you want to invest in insurance plans? a) Rs. 10,000 to Rs. 15,000 b) Rs. 15,001 to Rs. 20,000 c) Rs. 20,000 to Rs. 25,000 d) Rs. 25,001 t0 Rs. 30,000 e) Rs. 30,001 to Rs. 35,000 Q.12 On which company do you believe most? a) Private insurance company b) Public insurance company Q.13 How do you pay your premium? a) Cash b) Cheque & Credit card c) Demand draft Q.14 Do you think that insurance policy is necessity of today‟s life? a) Yes b) No Q.15 In what interval do you want to pay your premium? a) Monthly b) Half yearly c) Yearly Q.16 According to you, in what areas should the insurance companies work upon? a) Less complicated procedures b) Fewer premiums c) More returns
d) Transparency Q.17 Do You think that services have improved after allowing private players in insurance sector ? a) Yes b) No Q.18 Are you aware with the services of ANAND RATHI FINANCIAL SERVICES LTD? a) Yes b) No Q.19 What type of OTHER financial services you preferred most? a) Equity & Derivatives b) Mutual Funds c) d) e) Depository Services Commodities IPOs
Q.20 Any suggestions: ……………………………………………………………........……………………………………… …………………………
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