A SYNOPSIS REPORT ON A STUDY OF INVESTMENT OPPORTUNITIES IN INSURANCE SECTOR SUBMITTED TO BANGALORE UNIVERSITY

IN THE PARTIAL FULFILLMENT FOR THE AWARD OF MASTER DEGREE OF BUSINESS ADMINISTRATION

SUBMITTED BY BANDANA KUMARI REG NO: 11SLCMA025

UNDER THE GUIDANCE OF Dr. BINA PANDEY

THE OXFORD COLLEGE OF BUSINESS MANAGEMENT HSR Layout, Sector-4, Bangalore-560102 Batch: 2011-2013

TITLE OF THE PROJECT

A Study on investment opportunities in insurance sector

INTRODUCTION OF THE STUDY

The life insurance industry in India dates back to 1818, when the Oriental life insurance company set up office in Kolkata in 1823, the Bombay Life Assurance Company stated operations in Mumbai, India. The Indian Life Assurance Companies Act was passed in 1912 the Indian Assurance Companies Act 1928 followed this. These acts allowed the government to collect data regarding life and non life businesses conducted by both Indian and foreign insurance companies later the 1928 act was amended and a new act the Insurance Act was passed in 1938. By the mid 1950s, 154 Indian insurers, 16 foreign insurers and 75 provident societies were operating in the country. The life insurance business was concentrated in urban areas and was confined to the higher strata of society. In 1956, the management of these companies was taken over the government of India LIC was formed in September 1956 through the LIC Act 1956 with a capital of Rs 50 million. One of the main objectives of forming LIC was to make insurance cover available to a larger number of people particularly to the lower segments of society. In 1972, the government took over management control of 106 private general insurance companies and formed the General Insurance Corporation (GIC) over the years; LIC expanded its network all over the country and become one of the largest corporations in India. LIC had seven zonal offices 100 divisional offices, 2048 branch offices and army of agents totalling 6, 28,031. Growth in Indian insurance industry was minimal in the 1960s and 1970s because of low savings and the low level of literacy. In addition the insurance industry lacked sufficient funding and infrastructure. However changes in the economy in the 1980s such as growth in the rate of industrialization improvement in infrastructure the capital markets increase in the savings rate and substantial capital formation resulted in tremendous growth in the life insurance industry over the years LIC launched several group insurance and social security schemes to enhance its reach in the rural areas.

STATEMENT OF THE PROBLEM

. The research undertaken is to understand and analyze awareness level of people towards
life insurance. The study also aims at creating to the people about the various plans of life insurance.

OBJECTIVE OF THE STUDY

To know the awareness level of the people towards life insurance. To highlight the picture of insurance sector and challenges faced by the insurance sector. To create awareness among the people in rural areas. To create awareness to the people about the various plans of life insurance.

SCOPE OF THE STUDY

The research is taken up as the insurance sector is doing very well. Many people in India are not aware of the insurance benefits so there are many investment opportunities in the insurance segment. It is taken up with the view of knowing the opportunities in the insurance sector.

RESEARCH DESIGN Type of Data:Primary Data will be collected through the questionnaire of 50 respondents.

The report will be prepared by using secondary data viz, 1. Company financial datas. 2. Newspaper, Quarterly and Annual Report from Internet. 3. Historical share value of the stock

Sampling Method: - Systematic sampling

Sample size -50

LIMITATIONS OF THE STUDY:

Due to time constraint the sample size is restricted to 50 members.

The study will limit to the trading securities for the long term investors, who have the willingness to minimize the risk.

CHAPTER SCHEME:

CHAPTER 1: INTRODUCTION
It provides insight into the industry. It consists of the history and the current scenario of the industry. It also consists of theoretical information related to the study.

CHAPTER 2: RESEARCH DESIGN

It consists of the detailed coverage of the manner in which the report is prepared. Research methodology helps to understand the practical steps adopted to reach the data and methods of analysis and interpreting the response.

CHAPTER 3: PROFILE OF THE INDUSTRY/COMPANY

It is concerned with industry profile and 5 company profiles, which gives detailed information about the origin, growth and development, present status, and future plans and funds.

CHAPTER 4: ANALYSIS AND INTERPRETATION OF THE DATA

It consists of analysis and interpretation of data collected through primary and secondary data.

CHAPTER 5: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSIONS

It is the last and final chapter, which contains all findings, suggestions and conclusions. BIBLIOGRAPHY:

This chapter includes the list of various books, articles, websites that are referred and used in the research
ANNEXURE: It consists of tables and diagrams for interpretation.