EXPANSION OF DITRIBUTION NETWORK AND BUSINESS LEAD GENERATION

A PROJECT REPORT
Submitted to the

SRM SCHOOL OF MANAGEMENT

In partial fulfillment of the OF MASTER OF BUSINESS ADMINISTRATION

BY ARVIND KUMAR (Reg. No. - 35080070) Under the guidance of Dr. T. RAMACHANDRAN

SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR 603203 MAY 2010

BONAFIDE CERTIFICATE

Certified

that

this

project

report

titled

EXPANSION BUSINESS

OF

DITRIBUTION

NETWORK

AND

LEAD

GENERATION-IN BIKANER (RAJ.) is the bonafide work by Mr. ARVIND KUMAR who carried out research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not from part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Dr. T. Ramachandran (project guide)

Dr. Jayshree Suresh (Head of department)

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DECLARATION
I am Arvind Kumar student of MBA IV Semester of SRM School of Management Chennai, hereby declare that the report titled Expansion

of distribution network and Business lead generation

the Masters of Business Administration Degree.

is

submitted by me in the line of partial fulfillment of course objectives for

I assure that this project is the result of our own efforts and that any other institute for the award of any degree or diploma has submitted it.

Date: Place:

Arvind Kumar MBA (IV SEM.) Reg. No.-35080070

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ACKNOWLEDGEMENT

I owe everything in my life to other. A person single headed can achieve nothing. In my attempt to do the project many people have graciously extend their guidance, advice and criticism to improve our work. I wish to express my heartful thanks to our Dean Dr.Jayashree Suresh and my project internal guide Dr. T. RAMACHANDRAN for providing infinite facilities and gave me an opportunity to do this project work to be successful, guidance and valuable suggestions, which made this project, a successful one.

I express my heartful gratitude to IFFCO-TOKIO General Insurance Pvt. Ltd. For providing me the opportunity to undertake this project in their esteemed organization.

My gratitude also extends to the staffs of departments whose words of encouragements kept the spirits high throughout the course of my project.

Arvind Kumar

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ABSTRACT

The project report of the company IFFCO-TOKIO General Insurance Company Limited is prepared to understand EXPANSION OF DITRIBUTION NETWORK AND BUSINESS LEAD GENERATION at Bikaner (Rajasthan). With this research survey, it is tried to figure out to find out about the awareness of insurance in people mind. Insurance is not purchased it is sold by channel of distribution so before selling it has to be made known to the people by making them aware. The belief that Insurance is necessary for ones life is to be made inculcate in them. Research objective is to find out new Insurance Advisor and follow them up and to find out new way of recruitment of Insurance Advisor as through Internet, Walk-In Interview or Past Experience basis.

What factors as a consumer will a normal person have in his/her mind, which will compel him/her to buy insurance policy. In this descriptive type of research the random selection process is used to collect primary data with the help of Questionnaire. The data from ITGI Company Limited was also available and helpful for the completion of the project.

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CONTENTS
CHAPTER NO. 1 TITLE INTRODUCTION 1.1 Executive Summary 1.2 Introduction 1.3 Purpose of study 1.4 Objective and scope of study 1.5 Limitation of study 2 PROFILE 2.1 Company profile 2.2 Theoretical background 2.3 Services & features 3 RESEARCH DESIGN 3.1 Research methodology 3.2 Method of data collection 4 FINDING & ANALYSIS 4.1 Finding of Study 4.2 Table and Charts 4.3 Statistical data analysis & interpretation 5 CONCLUSION 5.1 Recommendation 5.2 Conclusion 6 Annexure 61 62 63 37 42 59 29 34 17 18 26 9 11 14 15 16 PAGE NO.

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LIST OF TABLES

S.No

TITLE OF THE TABLE

Page No.

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

Number of respondent Age of respondent Family income per month Desire to become financial consultant Interest to buy different polices Influencing factor to interest for ITGI Contributing factor to become insurance advisor Size of social contract Having other General Insurance polices Current occupation Education qualification

37 39 41 43 45 47 49 51 53 55 57

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LIST OF CHARTS

S.No

TITLE OF THE CHART

Page No.

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

Number of respondent Age of respondent Family income per month Desire to become financial consultant Interest to buy different polices Influencing factor to interest for ITGI Contributing factor to become insurance advisor Size of social contract Having other General Insurance polices Current occupation Education qualification

38 40 42 44 46 48 50 52 54 56 58

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1.1 EXECUTIVE SUMMARY

Liberalization, Privatization and Globalization has brought unprecedented changes in the economy, trade and industrial scenario. LPG has exposed various organizations including the service sector to the challenges of competition; service quality, cost and the competitive environment will help organization to modernize. Insurance industry is not side apart. Since its privatization on November 2000, it has been facing the flux of competition. 13 Insurance companies battling their way out to sustain in this sever competition. And the only way to fight this competition is to adopt unique promotional activities like advertisement, sales promotional techniques and direct marketing. Life Insurance products are not purchased it is sold. So a lot of promotional activities have to be taken up by Insurance Companies.

Objectives: To find out the awareness of insurance in people mind. As we have discussed that Insurance is not purchased it is sold by channel of distribution so before selling it has to be made known to the people by making them aware. The belief that Insurance is necessary for ones life is to be made inculcate in them. To find out new Insurance Advisor and follow them up. To find out new way of recruitment of Insurance Advisor as through Internet, Walk-In-Interview or Past Experience basis.

Findings and Analysis: Slowly the mindset of the people is changing towards the other sector of investment rather than the dependency on the fixed deposit and provident fund. The mindset of the people has not changed from taking life insurance as the means of saving tax. This factor must be noted to spread awareness. More stress of the product must be done towards children policy. All the promotional activities must be targeted to that target consumer segment. Insurance is taken to be for saving tax. This

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is the mindset of people, I have found in my project. Efforts should be carried out to minimize these thinking. IFFCO-TOKIO GENERAL INSURANCE COMPANY is very popular and familiar among mass people so It has been easier to convey people that ITGI is market leader and more advantageous to join as Insurance Advisor comparison to other companies.

Limitation: Limitations are the constraints that the company is facing. These constraints are making hindrance to the smooth running of the business. There are some limitation of ITGI which if overcome can reap the position of the market leader like spending less on advertisement, having shorter reach ability as the market is vast. LIC is covering almost 93% of the market share and only 7% is captured by these private life insurance companies. So a huge market potential lies there. Less promotional and recruitment activities are carried by IFFCO TOKIO GENERAL INSURANCE in which other companies are spending huge amount and also new techniques.

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(1.2) INTRODUCTION
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: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. Life InsurancePopular Products: Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products. General InsuranceFire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products (please visit website of GIC for details)

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CUSTOMER PROTECTION:Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.

INDIAN INSURANCE INDUSTRY: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 Reinsurer)

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.

Other life insurers

HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd.

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 SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Ltd. IDBI Fortis Life Insurance Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Insurance Company Ltd. Shriram Life Insurance Company Ltd. Bharti AXA Life Insurance Company Ltd. Future Generali India Life Insurance Company Limited Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd. Aegon Religare Life Insurance Company Ltd. DLF Pramerica Life Insurance Company Ltd. Star Union Dai-ichi Life Insurance Co. Ltd., OTHER GENERAL INSURERS Name of the Company Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited. Apollo DKV Insurance Company Limited Future Generali India Insurance Company Limited Universal Sompo General Insurance Company Ltd. Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd. Bharti Axa General Insurance Company Ltd. Raheja QBE General Insurance Co. Ltd

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(1.3) PURPOSE OF THE STUDY

This project report deals with the Expansion of Distribution Network and Business Lead Generation in Bikaner Area. IFFCO-Tokio General Insurance (ITGI). In addition, emphasize on business generation through the selling of policies by advisors. The main competitors are ICICI PRUDENTIAL LIFE, BAJAJ ALLIANZ LIFE, TATA AIG LIFE, BIRLA SUN LIFE, MAX NEW YORK LIFE, AVIVA LIFE etc. This study also strikes on how people reacted towards ITGI to become insurance advisor. Recruitment procedure was emphasized on target customers like Motor owners, Businessman, Housewife, VRS, Teachers, TAX Consultant, Financial Consultant, Student, Youth, and Insurance Agents. The main purpose was to get practical experience in the market. How should handle the different customers in target market on the presence of various constraints. This was also based on how to recruit people for Insurance with the help of marketing and communication techniques.

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(1.4) OBJECTIVE AND SCOPE OF THE STUDY

The objective of this study is to present a dissertation for the fulfillment of part of requirement for MBA from SRM University, Chennai. The broad objective of this study is to give practical knowledge and training to us. The main objective was to conduct summer training to recruit Insurance Advisor for IFFCO-Tokio General Insurance (ITGI) on the presence of various competitors and difficult traditional market situation. Objective Include: To find out the awareness of private insurance players and Brand image of ITGI in the mind of people. To penetrate the traditional market this is captured by GIC of India. To find out new insurance advisor to ITGI and find out new way of sales promotion techniques as well as recruitment techniques and also distribution network to generate business. To find out the attitude of new customers and existing customers towards ITGI.

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(1.5) LIMITATION OF STUDY

Some of the limitations of the project are listed as below:1. The time period of just 2 months was the major limitation. 2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible. 3. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the yearly expenses on printing. 4. To convince the people for a proper interviewing process was also difficult. 5. Compilation of data on competitor analysis was difficult due to nonavailability of correct information.

6. The figures have been taken as approximations.

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CHAPTER II

(2.1) COMPANY PROFILE

IFFCO-Tokio General Insurance (ITGI) was incorporated on 4th December 2000 with a vision of being industry leader by building customer satisfaction through fairness, transparency, and quick response. It is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan. ITGI has Pan India presence with 51 Strategic Business Units and a wide network of over 110 offices. It offers a wide range of uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers. From a modest Rs 2130 Million of GWP (Gross Written Premium) in 2001-02 it has achieved an impressive Rs 12350 Million in 2007-08, thereby becoming one of Indias leading private players. ITGI has got the Technical Support for underwriting and reinsurance from Tokio Marine and on Risk Management from Tokio Risk Consulting (TRC). It is the first company in India to underwrite mega policies for a fertilizer and an automobile company. This comprehensive policy is based on international rates and optimizes the premium outflow for clients even as it offers a one-stop, all-risk cover. Other than the conventional products, it has been able to come out niche products like Credit Insurance, Fine Arts Insurance, P & I Insurance, and Errors & Omissions Policy for the IT Sector etc. At the same time it has steadfastly carried out its rural centric initiatives by launching products like Sankat Haran Bima Yojana, Mausam Bima Yojana, Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses. It is also the only insurance company in the country to have a 100%-owned distribution channel to service its retail customers called IFFCO-TOKIO Insurance Services Ltd (ITIS). Today, ITIS has a highly motivated workforce of over a 1000 employees in over 200 towns. As a customer focused company, it conducts bi-annual customer satisfaction surveys through independent agencies to gauge its operational efficiencies. This is backed by a robust IT infrastructure, which has enabled, among other things, speedy settlement of claims.

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(2.2) THEORETICAL BACKGROUND

Development of Insurance Sector:Insurance is one of the important instruments designed to deal with risk through sharing. Insurance is related to protection of the economic value of assets. Every asset has a value. The assets would have been created through the efforts of the owner in the expectation that either through the income generated there from or some other output, some of his needs to be met. However if the asset gets lost earlier, being destroyed or made non functional through an accident or other unfortunate event, the owner and those deriving benefits their from suffer. Insurance is a mechanism that helps to reduce such adverse consequences. In this simplest aspect it is imbued with two fundamental characteristics: It transfer risk from one person to a group, and It facilitates sharing of losses, on some equitable basis, by all members of group. The importance of insurance is two folds.

From individual point of view:Insurance is an economic device whereby the individual substitutes a small certain cost (the premium) for a large uncertain financial loss (the contingency insured against) that would exist if it were not for the insurance.

From the social point of view:Insurance may be perceived device to be an economic instrument, which reduce and eliminates risk through the process of combining a sufficient number of homogeneous exposure into a group and makes the losses predictable for a group as a whole.

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Chronological Development of Insurance Sector

1818 Establishment of British firm Oriental Life Insurance in Kolkata. 1823 Establishment of Bombay Life Insurance Company. 1912 The Indian Life Assurance Companies Act 1912. 1928 The Indian Insurance Companies Act was enacted the Government Collect statistical information about both life and non-life insurance business transacted in India-byIndia and foreign insurers. 1938 The 1928 Act was consolidated and amendment by the Insurance Act with effective control over the activities of insurance. 1950 The Act was amended resulting I in far reaching changes in the insurance sector, including a statutory requirement of equity capital for companies carrying on insurance business, ceiling on shareholdings in such companies, stricter control on investments submission of periodical returns relating to investments and such other information to the controller. 1956 154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on life insurance business in India mostly concentrated in Urban Areas On January 19 the management of life insurance business of 245 Indian and provident societies, then operating in India, was taken over by the Central Government. An Act of Parliament, viz. LIC Act 1956, with a capital contribution of Rs. 50 million, formed Life Insurance Corporation in September 1956. One justification of the nationalized was the need to raise the funds for rapid industrialization and this justification still

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hold for liberalization of Insurance Sector for a faster development of infrastructure and basic facilities in India. 1971 Management of Non-Life insurers was taken over by the Central Government as a prelude to nationalization. 1972 Watershed in the history of General Insurance Business in India. General Insurance business was nationalized with effect from Jan1, 1973 by the General Insurance Business (Nationalization) Act, 1972 Prior to 1973, general insurance was urban centric, catering, catering mainly to the needs of organized trade and industry. 107 insurers including branches of foreign companies operating the country were amalgamated and grouped into four companies, viz the National Insurance Company Ltd. The Oriental Insurance Company Ltd, The New India Assurance Company Ltd, and The United India Insurance Company Ltd, GIC was incorporated as a company in 1972 and commenced business on January 1st 1973. The Government subscribed to its capital that, in turn, subscribed to the capital of the four companies. GIC was designated as the reinsure under the Insurance Act, to which all the domestic insurers were obliged to cede 20% of gross direct premium in India. In order to ensure maximum retention in the country and to secure the best terms from foreign reinsures, GIC and its subsidiaries have a common program for reinsurance cessions.

The role of malhotra committee:1993: First Step to Liberalization Malhotra Committee formed to recommend measures to deregulate Indian Insurance Sector. The following recommendation was forwarded to liberalize the Insurance sector. The private sector should be allowed to enter the insurance business, but no single company will be allowed to transact both life and general insurance business. The number of entrance should be controlled. The new entrants should write a specified portion of their business in rural areas. Minimum paid up capital of new entrant should be 100 crores. The promoters holding in a private business company should not exceed 40% of the total. However, if the

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promoters wish to start with a higher holding, they should be permitted to do so provided their holdings is brought down to 40% within a specified time through public offerings. If and when the entry of foreign insurance companies is permitted, it should be on a selective basis. They would be required to float an Indian company for the purpose, preferably as a joint venture with an Indian partner. The controller of insurance should effectively start functioning before the private sector is allowed to enter the insurance field. Regulatory and prudential norms as well as conditions for ensuring level playing fields among insurer should be finalized early so that intending entrants are aware of to insure that the life insurers do not neglect the small man or rural business and general insurers have balance portfolios and Though the nationalized insurance companies are in a position to face competition, it is essential that they quickly upgrade their technology, recognize themselves on more efficient lines. The Liberation of the insurance sector has been the subject of much debate for some years. The policy maker were in the catch of twenty-two situation where in for one they wanted competition, development and growth of this insurance sector which is extremely essential for channeling the investments in the policy makers had the fears that the insurance premea which are substantial, would slip cut of the country and wanted to have a cautious approach of opening for foreign particular in the sector. IRDA came into picture with its important provision.

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Insurance Regulatory and Development Authority:The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 laysdown 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, issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; 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; specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; specifying the code of conduct for surveyors and loss assessors; promoting efficiency in the conduct of insurance business; promoting and regulating professional organisations connected with the insurance and re-insurance business; levying fees and other charges for carrying out the purposes of this Act; calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business;

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 control and regulation of the rates, advantages, 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); 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; regulating investment of funds by insurance companies; regulating maintenance of margin of solvency; adjudication of disputes between insurers and intermediaries or insurance intermediaries; supervising the functioning of the Tariff Advisory Committee; specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (f); specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and exercising such other powers as may be prescribed

Licensing of insurance agent, (Regulation, 2000):-

The IRDA has announced regulation pertaining to licensing of insurance agent, which has come into force with effect from 14th July 2000. Qualification: An insurance agent should satisfy the following requirements Posses a minimum educational qualification of 12th standard or equivalent where the applicant resides in a place with a population of five thousand or more as per the last census. In any other place, the applicant should satisfy a minimum educational qualification of 10th standard or equivalent. Complete one hundred hours (100) of practical training in life insurance business, from an approved institution, where the applicant is seeking a license for the first

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timeto act as an insurance agent. This training requirement is relaxed in certain situation where the applicant possesses professional qualification. Pass the pre-recruitment test, based on an examination conducted by the Insurance Institute of India (III) or another approved body. Have the requisite knowledge to solicit and procure insurance business. Be capable of providing necessary service to the policyholders.

The agency system:Clause 3 of the regulation provide that an agent can represent only one life insurer or one general insurer or both, at a time. This implies that the agent will have to terminate his/her contract, if any, with an existing Life or general insurer before joining another life or general insurer. . A person having both agencies, life and general, shall be known as a Composite Agent. In addition to this, all licenses renewed prior to notification of the new regulations will be valid only for the period mentioned in the license. All new licenses issued thereafter shall be valid for a period of three years. The training referred to in the regulations, will be initially organized by HDFC STANDARD LIFE INSURANCE COMPANY LTD. This training will enable the applicants to qualify for the pre-recruitment examination to be conducted by the Insurance Institute of India (III) or any other approved examination body.

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Scope of Insurance Business in India:The Malhotra Committee estimated that the insurance operation penetration in India is to the extent of about 25% of insurable population. As of 1999-2000, LIC has about 10 crore policies in force, which contribute a Premium of about 6% of the GDS (Gross Domestic Savings) of household in India. Based on a report by the Confederation of Indian Industries (CII), it is anticipated that this figure of 10 crore policies in force is likely to double in the next decade. By the year 2010, the Premium Income is expected to account for 18% of the GDS, amounting to Rs. 5, 12,000 crore.

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(2.3) SERVICES & FEATURES

ITGI product development team is constantly working to introduce products which are competent in meeting the customer needs. IFFCO Tokio emphasize on understanding the need from the market and offering the best possible products across the product lines. It approaches the market with products that have differentiated features / benefits / service offerings. IFFCO Tokio offers a wide range of uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers. ITGI making constant efforts to reach out the entire general insurance spectrum i.e. Commercial Lines, Retail lines and Specialty Lines. Innovations will keep on expanding to include customised offerings for various market segments and geographies. Commercial Lines IFFCO-TOKIO provides a wide variety of policies that are customized to customer needs are Standard Fire & Special Perils Consequential Loss Contractors All Risk Boiler & Pressure Plant Erection All Risks Industrial All Risks Machinery Breakdown Jeweller's Block Machinery Loss of Profit Product Liability Public Lia Industrial

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 Public Lia Non-Industrial Marine cargo Elrctronic equipment Bankers blanket Burglary insurance Fidelity guarantee Money insurance Workmens compensation

Retail Lines IFFCO-TOKIO provides a wide variety of policies that are customized to customer needs are Motor private car Home & family protector Industry protector Office professional establishment Home suvidha Trade suvidha Individual personal accident Group personal accident Swasthva kavach Critical illness policy All resk insurance

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Specialty Lines IFFCO-TOKIO provides a wide variety of policies that are customized to customer needs are Credit insurance Multi modal transport Marine hull & machinery Jewellers block Sagar bandhu bima policy Aviation insurance policy Errors and omissions (technology) policy

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CHAPTER III

(3.1) RESEARCH METHODOLOGY Marketing research is the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in market. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. The information can only be gathered by data collection and then analyzing the available data. Therefore, it can be said that the data collection is an important part of the project.

Data Raw numbers

Information

The projected objectives were considered and as per the requirement a market survey was done.

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Procedure:The procedure that followed can be enlisted as below: Reading about the product Deciding on the objective to proceed. Developing Survey instruments Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire. Finally analyzing the data of various Geographic areas and trying to study with the other players. Process adopted:1. Gaining knowledge about the product: Reading about the product was the first step undertaken. This gave not only in depth knowledge about what is been offered by other players but also proved useful while developing the questionnaire. 2. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below:

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Research objectives are being transformed into information objectives.

The Appropriate data collection methods have been determined

The information required by each objective is being determined.

Specific Questions/Scale Measurement format is developed.

The number of information needed is being determined.

11

Question/Scale Measurements is being evaluated.

13

Research objectives are being transformed into information objectives.

15

The questionnaire and layout is being evaluated.

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17

Revise the questionnaire layout if needed.

19

The Questionnaire format is being finalized.

FORMULATION OF OBJECTIVE:The first step in market research understands the problem. After defining the objective an efficient plan should be developed for gathering information. The researcher should have skill to design the research approach and research area. In my project with the help of my superiors in ITGI, I have formulated the objective and accordingly worked on it.

SAMPLE PLAN:A proper sampling plan is very important in the research process and it also makes the research process easy. It includes the sampling element, sample size and sample area.

SAMPLE ELEMENT:It includes those respondents who are going to fill up and answer the questionnaire. SAMPLE SIZE:Project worked on a sample size of fifty prospective people who showed interest in knowing the product and also becoming the Insurance Advisor.

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SAMPLE AREA:Research worked out at Bikaner (Rajasthan) area. Particular respondent Choosen are Business man, Motor owner, Financial Consultant, VRS, Housewife, Insurance Advisor, Student, Tour & Travel Agency, Teachers, and Young Unemployed Youth. Our main task was interviewing the people and to analyze their attitude towards ITGI.

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(3.2) METHOD OF DATA COLLECTION

A variety of collection methods can be employed, individually or in combination. Factors commonly influencing the choice between these designs include:

Nature and quality of the frame Availability of auxiliary information about units on the frame Accuracy requirements, and the need to measure accuracy Whether detailed analysis of the sample is expected

We conduct primary research by gathering original data. Secondary research is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher.

Research instrument:I used questionnaire as research instrument to collect the requisite information for the research. Questionnaire method was chosen because of its versality. Almost every market problems involves people. Therefore ideas relative to people and its solution can be obtained by asking them about their problems. This type has the advantage that the respondents do not know exactly what is being measured and hence are not biased their answer to some extent. My research design made it necessary for me to collect accurate data to achieve useful result. For this very reason I decided to use primary source of data. Designing of questionnaire-Questionnaires are designed according to project requirement and company need. So while designing the questionnaire we have to include both awareness about Insurance and Investment. But our main objective was to find new Insurance Advisor so that questionnaire was designed according to gather data and find out the prospective Insurance Advisor.

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First part of the questionnaire deals with the data of the person I am interviewing that consist of personal detailsName of the concerned person- So that the person could be identified when contacted later. Address of person-For direct contact or useful in mailing some of the pamphlets. Phone No. This is the important part of the questionnaire as it is code by which a person can contacted directly. Employment details- So that persons status can be found out and also his premium paying ability. Family details- This is very useful information as the need of that human being can be traced. Second part of the questionnaire Investment awareness- First we are catching the investment awareness of the person by asking him that whether he thinks investment planning is necessary or not for managing his wealth. Categorized the need- Next what we did was to rank his investment in priority wise like in Fixed Deposit, Life Insurance, Provident Fund, Mutual Fund, Jewellary etc. It helps to understand the people motive in investment whether he isProtector Builder Enhancer Family Income -It includes the family background of person. This was basically emphasized on monthly income person. Educational Qualification It was more important to know about persons educational qualification to become an Insurance Advisor. So minimum qualification was mentioned 10th pass and maximum was post-graduation.

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Current Occupation It was necessary to know that persons source of income i.e. they were self-employed, salaried, student or housewife. It also clarified that person had any insurance agency or not. Size of Social Contract -It was very important element. Because for a insurance advisor, social contract is very necessary. Insurance advisor sells policies to customers and policies are sold also on the basis of believeness. So social contract is very important. It may be either relatives or friends. Reason for taking insurance Policy - It was a general question just to know the awareness of the different needs of a human being while taking an insurance policy. Now the important part of the questionnaire, which was mainly designed from the companys point of view to find new customer. Questions like-Have you done a insurance planning? -Is any advisor from any company does come to suit his needs and whether he wants to meet any body from our company? Insurance awareness - Firstly it was asked whether the person has any insurance policy of any other company, the name of the company, sum assured, and purpose. This is mainly asked to know whether the people mind has changed towards the insurance players in the market or it is sticked to the old players. Another purpose was to decipher whether the person is able to afford another premium, which is judged by the sum assured and his monthly income.

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CHAPTER IV

(4.1) FINDING OF STUDY

(1.) Number of respondents

TABLE 1

S. NO

SEX

NO. OF RESPONDENT

FREQUENCY IN %

MALE

36

72%

FEMALE

14

28%

GRAND TOTAL

50

100.0

INFERENCE:

The above data shows that there are fifty respondents. In which the number of female respondent in % frequency is 28%. The male respondent in % frequency is 72%.

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CHART 1

28%
M ale

72%

Fem ale

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(2.) Age of respondents

TABLE 2

S.NO.

AGE

NO. OF RESPONDENT 2 9 19 17 3 50

FREQUENCY IN % 4% 18% 38% 34% 6% 100.0

1 2 3 4 5

BELOW 18 18-25 25-40 40-60 ABOVE 60 GRAND TOTAL

INFERANCE: Above data shows that only two persons were minor and rest were major. 38% respondents were belonging to age between25-40. There were only 3 persons belong to above 60 years. Data shows that sharing of youth were 18%. Recruitment of Insurance Advisor came under the age between40-60.

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CHART 2

6% 34%

4% 18% 38%

Below 18 18-25 25-40 40-60 Above 60

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(3.) Family Income per month

S.NO.

FAMILY INCOME PER MONTH 0-6,000 6,000-10,000 10,000-15,000 MORE THAN 15,000 GRAND TOTAL

NO. OF PERCENTAGE RESPONDENT 5 13 21 11 50 10 26 42 22 100.0

1 2 3 4

INFERANCE:

Maximum numbers of respondent were belonging to Rs. 10,000-15,000 family income per month. Percentage of frequency was 42%. There were only five respondents whose income was below 6,000.

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CHARTS 3

10% 22% 42% 26%

0-6,000 6,000-10,000 10,000-15,000 More than 15,000

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(4.) Desire to become financial consultant

TABLE 4

S.NO.

DESIRE TO BECOME FINANCIAL CONSULTANT YES

NO. OF FREQUENCY RESPONDENT OF % 32 64

NO

18

36

GRAND TOTAL

50

100%

INFERANCE: There were 50 respondents in which 32 persons were highly interested to become financial consultant of ITGI. These data shows the brand image of ITGI among people not only Metros but also in suburban

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CHART 4

36%
Yes

64%
No

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(5.) Interest to buy Different policies

TABLE 5

S.NO

NO. OF RESPONDENT

RESPONSE

30

YES

20

NO

INFERANCE:

According to data 60% of respondents were interested to buy different policies of ITGI, 40% respondents were not interested to buy policies.

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CHART 5

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(6.) Influencing Factor to interest for ITGI

TABLE 6

S.NO.

INFLUENCING FACTOR BRAND NAME MARKET VALUE QUALITY & SERVICE GRAND TATAL

NO. OF FREQUENCY RESPONDENT OF % 26 14 10 50 52 28 20 100.0

1 2 3

INFERANCE:

Above data shows that people are aware about ITGI through Brand image in market that means influencing factors to interest for ITGI is Brand Name of Company. Second factor is Market Value of company and third is best Qualities and Services, which are provided by ITGI

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CHART 6

20% 28% 52%

Brand Name Market Value Quality & Service

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(7.) Contributing Factor to become Insurance Advisor

Table 7

S.NO.

NO. OF RESPONDENT

FREQUENCY OF %

FRIENDS ADVICE

18

36

ADVERTISEMENT

10

20

COMPANY'S REPUTATION GRAND TOTAL

22

44

50

100.0

INFERANCE:

Above chart shows that the most important contributing factor to become Financial Consultant was the Friends Advice. The second contributing factor was the Companys Reputations in market. Advertisement was the third contributing factors.

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CHART 7

Friends Advice

44%

36%
Advertisement Company's Reputation

20%

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(8.) Size of Social Contract

TABLE 8

S.NO.

SOCIAL CONTRACT NO. OF FREQUENCY RESPONDENT OF % RELATIVES FRIENDS 32 18 64 36

1 2

INFERANCE:

Above data shows that the size of social contact of respondents were 64% Relatives and 36% Friends.

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CHART 8

36% 64%

Relatives Friends

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(9). Having any other General Insurance Policy

TABLE 9

S.NO.

RESPONSE

NO. OF FREQUENCY RESPONDENT OF % 14 36 50 28 72 100.0

1 2

YES NO GRAND TOTAL

INFERANCE:

In 50 respondents, only 14 persons having the different type of General Insurance Policies. 36 persons have not any Policies. That means there is a little bit awareness about private insurance companies among people.

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CHART 9

28% 72%

Yes No

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(10.) Current Occupation

TABLE 10

S.NO.

OCCUPATION

NO. OF FREQUENCY RESPONDENT OF % 12 6 22 10 50 24 12 44 20 100.0

1 2 3 4

SALARIED STUDENT SELF-EMPLOYED HOUSE-WIFE GRAND TOTAL

INFERANCE:

Current Occupation shows that the different working activities of persons in societies. There were 44% people belonging to either self-employed or own business. Housewives were only 20%. Salaried based only 24%.

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CHART 10

Salaried

20% 44%

24%

Student Selfemployed House-wife

12%

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(11.) Educational Qualified

TABLE 11

S.NO. EDUCATIONAL QUALIFIED 1 2 3 4 10TH PASS 10+2 PASS GRADUATION POSTGRADUATION GRAND TOTAL NO. OF FREQUENCY RESPONDENT OF % 4 12 24 10 50 8 24 48 20 100.0

INFERANCE:

Educational Qualification is very important factor to become Insurance Advisor. Above data shows that there were 48% respondents belonging to Graduation. It has maximum contribution in total number of respondents. Only 8% people were belonging 10th Pass. The minimum criteria to become Insurance Advisor are 10+2 Pass. So 24% people belonging minimum qualification to become Insurance Advisor.

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CHART 11

8% 20% 48% 24%

10th Pass 10+2 Pass Graduation Post-Graduation

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(4.2) STATISTICAL DATA ANALYSIS AND ITS INTERPRETATION

TABLE -3 Chi- Square test as a test of Goodness of Fit. Its evaluating the relationship between frequency of respondent interested and income of respondent.

HYPOTHESIS: Null hypothesis (H0) There is no significant relationship between the attributes.

Alternative hypothesis (Ha)There exist significant relationships between the attributes.

STEP 1:DATA following data was obtained from table 3 S.NO. INCOME FREQUANCY

1 2 3 4

0-6000 6000-10000 10000-15000 15000<

5 13 21 11

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STEP 2 Observed and Accepted frequencies S.NO. 1 2 3 4 TOTAL O 5 13 21 11 50 E 12.5 12.5 12.5 12.5 O-E -7.5 0.5 8.5 -1.5 (O-E)2 56.5 0.25 72.25 2.25 (O-E)2/E 4.5 0.02 5.78 0.18 10.48

DEGREE OF FREEDOM: d.f =k-1 =4-1 =3

STEP 3 Here the calculated value is 10.48. Tabulated value at 3 d.f and at 5% level of significant level is 7.815. So the calculated chi-square value is greater than the table value.

INFERENCE: Since the calculate value is more than the tabulated value, and falls in critical region, the null hypothesis is rejected i.e income of respondent is associated with frequency of respondent.

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CHAPTER V

(5.1) RECOMMENDATION
As we know that money investment is very sensitive and crucial decision. Each and every individual wants to minimum risk while investing the money in Insurance sector. Insurance Advisor sells policies, so, public faith on Insurance Advisor is very necessary to sell the policies. Till days, public believe on public sectors Insurance Advisor. They do not believe hundred percent on private Insurance Advisor. Recommendations are: To create awareness among people about private insurance companies not only in Metros but also in rural areas through advertisement activity. Public should be aware about IRDA Rules and Regulation about Private Insurance Companies through Advertisement in daily news paper as well as T. V & Radio. Insurance Advisor of ITGI must be trained technically and professionally so that they could be able to influence customers easily, for this company should give training of 15 days in 6 month to employees. ITGI should take help of Consultancy Company while recruitment of Insurance advisor. They should also take help of Newspaper while recruitment of Advisor.

People should be aware about the benefits while becoming the Insurance Advisor of IFFCO TOKIO GENERAL INSURANCE LTD. For this ITGI should start some public awareness programs in rural or suburban areas.

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(5.2) CONCLUSION
After analysis of various data and face-to-face conversation with people, it is found that maximum people want to take insurance policies of Private sector companies as ITGIs policies. Maximum people say that they interested in private sector to buy policies. Now they feel more risk free to invest money in private sector. Till days, people believe on General Insurance Corporation of India (GICs). Today General Insurance like motor insurance policies necessary, so people also interested to private players. They think that, for private insurance advisor, it is very tough task to generate business from those areas where awareness of private sector is very little. It is very tough to convince illiterate people. It is also found that, there is no problem to convince people in Metros as well as city, but in suburban and village area it is great problem to make Insurance Advisor.

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CHAPTER VI

ANNEXURE

QUESTIONNAIRE BIBLIOGRAPHY

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QUESTIONNAIRE

SURVEY FOR HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

Dear Sir/Madam, I am doing a project for HDFC Standard Life Insurance Co. Ltd. HDFC Standard Life is a joint venture of HDFC Ltd., Indias largest housing finance company and Standard Life is Europes largest mutual fund company, and is one of Indias leading Insurance company. Would you be willing to participate and answer a few questions? If yes please give me the following information: Personal Information: Name: __________________________________________________________ Age: ___________________________________________________________ Sex: ___________________________________________________________ Office Address: _________________________ _________________________ _________________________ Phone No. _______________ Residential Address : ________________________ ________________________ ________________________ Phone No. ______________

SECTION I Family background: How many members do you have in your family? ________________ How many dependents do you have? __________________________ How much of them are earning? ______________________________

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Are you interested in knowing more about our products? A Yes B No If yes what type of products you are interested in? A. Endowment B. Money Back C. Children Plan D. Pension Plan E. Term Assurance F. Unit-Linked What is your total family income? A. Less than Rs. 6000/B. Between Rs. 6,000 to 10,000/C. Between Rs. 10,000 to 15,000/- (D)More than Rs. 15,000/What is the likely amount you would like to invest? What existing insurance cover do you have? What type of plane you have already purchased? Do you have any tax liabilities? If yes, to what extent?

SECTION II Would you like to become a financial consultant with us? A. Yes B. No What is your educational qualification? Please tick. B. 10+2 Pass A. 10th Pass C. Graduation D. Post Graduation What is your current occupation? Please tick. A. Salaried B. C. Student D.

Self employed House wife

Do you have any sales related experience? Please tick. A. Yes B. No C. If yes, specify the number of years_______________________ Do you have any experience in selling financial products? If yes of what nature________________________________________________

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Do you currently have an agency for any life insurance company? A. Yes B. No C. If yes, which company_________________________________ What is the size of your social contacts? Gives number of families? A. Relatives B. Friends Are you interested in knowing more about becoming a financial consultant? A. Yes B. No

If yes we will get in touch with you.

Thank you for sparing few moments of your valuable time with us.

Signature of Prospect_____________

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BIBLIOGRAPHY

Books:1. Kotler Philip, Marketing Management 2. Business Research Methods(2004), Tata McGraw Hill Edition 3. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in Practice; Kogan Page limited, 1st South Asian edition 2004. 4. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. G Stasch; Marketing Research; All India Traveller Book Seller, 7th edition. 5. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook of Marketing Skills; SAGE Publications. 6. Malhotra Naresh, Marketing Research, Prentice Hall of India.

Websites: www.mimeo.com www.google.com www.hoovers.com www.wikipedia.org www.mouthshut.com www.fedex.com www.howstuffworks.com www.google.com www.isoft.com

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www.abnamro.com www.online printing.com www.irdaindia.org www.itgi.co.in

Insurance Journal: Magazines: -

Institute of Insurance India. Insurance, Business India.

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