CHAPTER 1 INTRODUCTOIN 1

1.1 INTRODUCTION TO THE STUDY Everyone is exposed to various ris s. !uture is very un"ertain# $ut t%ere is &ay to prote"t one's (a)i*y and )a e one's "%i*dren's (uture sa(e. +i(e Insuran"e "o)panies %e*p us to ensure t%at our (a)i*y's (uture is not ,ust se"ure $ut a*so prosperous. +i(e Insuran"e is parti"u*ar*y i)portant i( you are t%e so*e $read&inner (or your (a)i*y. T%e *oss o( you and your in"o)e "ou*d devastate your (a)i*y. +i(e insuran"e &i** ensure t%at i( anyt%in- %appens to you# your *oved ones &i** $e a$*e to )ana-e (inan"ia**y. T%is study tit*ed .Study o( Consu)ers Per"eption a$out +i(e Insuran"e Po*i"ies/ ena$*es t%e +i(e Insuran"e Co)panies to understand %o& "onsu)er's per"eption di((ers (ro) person to person. Ho& a "onsu)er se*e"ts# or-ani0es and interprets t%e servi"e 1ua*ity and t%e produ"t 1ua*ity o( di((erent +i(e Insuran"e Po*i"ies# o((ered $y various +i(e Insuran"e Co)panies. Insuran"e is a too* $y &%i"% (ata*ities o( a s)a** nu)$er are "o)pensated out o( (unds 2pre)iu) pay)ent3 "o**e"ted (ro) p*enteous. Insuran"e "o)panies pay $a" (or (inan"ia* *osses arisin- out o( o""urren"e o( insured events e.-. in persona* a""ident po*i"y deat% due to a""ident# in (ire po*i"y t%e insured events are (ire and ot%er a**ied peri*s *i e riot and stri e# exp*osion et". %en"e insuran"e sa(e-uard a-ainst un"ertainties. It provides (inan"ia* re"o)pense (or *osses su((ered due to in"ident o( unanti"ipated events# insured &it% in po*i"y o( insuran"e. 4oreover# t%rou-% a nu)$er o( a"ts o( par*ia)ent# spe"i(i" types o( insuran"e are *e-a**y en(or"ed in our "ountry e.-. t%ird party insuran"e under )otor ve%i"*es A"t# pu$*i" *ia$i*ity insuran"e (or %and*ers o( %a0ardous su$stan"es under environ)ent prote"tion A"t. Et". 5

6HAT IS INSURANCE It is a "o))on*y a" no&*ed-ed p%eno)enon t%at t%ere are "ount*ess ris s in every sp%ere o( *i(e .(or property# t%ere are (ire ris 7 (or s%ip)ent o( -oods. T%ere are peri*s o( sea7 (or %u)an *i(e t%ere are ris o( deat% or disa$i*ity7 and so on .t%e "%an"es o( o""urren"es o( t%e events "ausin- *osses are 1uite un"ertain $e"ause t%ese )ay or )ay not ta e p*a"e. T%ere(ore# &it% t%is vie& in )ind# peop*e (a"in- "o))on ris s "o)e to-et%er and )a e t%eir s)a** "ontri$ution to t%e "o))on (und. 6%i*e it )ay not $e possi$*e to te** in advan"e# &%i"% person &i** su((er t%e *osses# it is possi$*e to &or out %o& )any persons on an avera-e out o( t%e -roup# )ay su((er *osses. 6%en ris o""urs# t%e *oss is )ade -ood out o( t%e "o))on (und .in t%is &ay ea"% and every one s%ares t%e ris .in (a"t t%ey s%are t%e *oss $y pay)ent o( pre)iu)# &%i"% is "a*"u*ated on t%e *i e*i%ood o( *oss .in o*den ti)e# t%e "ontri$ution )a e t%e a$ove8stated notion o( insuran"e DE!INITION O! INSURANCE Insuran"e %as $een de(ined to $e t%at in# &%i"% a su) o( )oney as a pre)iu) is paid $y t%e insured in "onsideration o( t%e insurer's $earin-s t%e ris o( payin- a *ar-e su) upon a -iven "ontin-en"y. T%e insuran"e t%us is a "ontra"t &%ere$y9 a. Certain su)# ter)ed as pre)iu)# is "%ar-ed in "onsideration# $. A-ainst t%e said "onsideration# a *ar-e a)ount is -uaranteed to $e paid $y t%e insurer &%o re"eived t%e pre)iu)# ". T%e "o)pensation &i** $e )ade in "ertain de(inite su)# i.e.# t%e *oss or t%e po*i"y a)ount &%i"% ever )ay $e# and d. T%e pay)ent is )ade on*y upon a "ontin-en"y 4ore spe"i(i"a**y# insuran"e )ay $e de(ined as a "onta"t $et&een t&o parties# &%erein one party 2t%e insurer3 a-rees to pay to t%e ot%er party 2t%e insured3 or t%e $ene(i"iary# a "ertain su) upon a -iven "ontin-en"y 2t%e ris 3 a-ainst &%i"% insuran"e is re1uired. :

TYPES O! INSURANCE Insuran"e o""upies an i)portant p*a"e in t%e )odern &or*d $e"ause o( t%e ris # &%i"% "an $e insured# in nu)$er and extent o&in- to t%e -ro&in- "o)p*exity o( present day e"ono)i" syste). T%e di((erent type o( insuran"e %ave "o)e a$out $y pra"ti"e &it%in insuran"e "o)panies# and $y t%e in(*uen"e o( *e-is*ation "ontro**in- t%e transa"tin- o( insuran"e $usiness# $road*y# insuran"e )ay $e "*assi(ied into t%e (o**o&in- "ate-ories9 1. C*assi(i"ation (ro) $usiness point o( vie& a3 +i(e insuran"e# and $3 ;enera* insuran"e 5. C*assi(i"ation on t%e $asis o( nature o( insuran"e a3 $3 "3 d3 e3 +i(e insuran"e !ire insuran"e 4arine insuran"e So"ia* insuran"e# and 4is"e**aneous insuran"e :. C*assi(i"ation (ro) ris point o( vie& a3 $3 "3 d3 Persona* insuran"e Property insuran"e +ia$i*ity insuran"e !ide*ity -enera* insuran"e <

THE I4PORTANCE O! INSURANCE Insuran"e $ene(its so"iety $y a**o&in- individua*s to s%are t%e ris s (a"ed $y )any peop*e. =ut it a*so serves )any ot%er i)portant e"ono)i" and so"ieta* (un"tions. =e"ause insuran"e is avai*a$*e and a((orda$*e# $an s "an )a e *oans &it% t%e assuran"e t%at t%e *oan's "o**atera* 2property t%at "an $e ta en as pay)ent i( a *oan -oes unpaid3 is "overed a-ainst da)a-e. T%is in"reased avai*a$i*ity o( "redit %e*ps peop*e $uy %o)es and "ars. Insuran"e a*so provides t%e "apita* t%at "o))unities need to 1ui" *y re$ui*d and re"over e"ono)i"a**y (ro) natura* disasters# su"% as tornadoes or %urri"anes. Insuran"e itse*( %as $e"o)e a si-ni(i"ant e"ono)i" (or"e in )ost industria*i0ed "ountries. E)p*oyers $uy insuran"e to "over t%eir e)p*oyees a-ainst &or 8re*ated in,uries and %ea*t% pro$*e)s. =usinesses a*so insure t%eir property# in"*udin- te"%no*o-y used in produ"tion# a-ainst da)a-e and t%e(t. =e"ause it )a es $usiness operations sa(er# insuran"e en"oura-es $usinesses to )a e e"ono)i" transa"tions# &%i"% $ene(its t%e e"ono)ies o( "ountries. In addition# )i**ions o( peop*e &or (or insuran"e "o)panies and re*ated $usinesses. In 1>>? )ore t%an 5.< )i**ion peop*e &or ed in t%e insuran"e industry in t%e United States and Canada. Insuran"e as an invest)ent t%at o((ers a *ot )ore in ter)s o( returns# ris "over @ as a*so t%at tax "on"essions @ added $onuses Not a** e((e"ts o( insuran"e are positive ones. T%e possi$i*ity o( earnin- insuran"e pay)ents )otivates so)e peop*e to atte)pt to "ause da)a-e or *osses. 6it%out t%e possi$i*ity o( "o**e"tin- insuran"e $ene(its# (or instan"e# no one &ou*d t%in o( arson# t%e &i**(u* destru"tion o( property $y (ire# as a potentia* sour"e o( )oney. A

THE INSURANCE INDUSTRY TODAY Sin"e t%e 1>BCs# t%e insuran"e $usiness %as -ro&n dra)ati"a**y and under-one tre)endous "%an-es. As a resu*t o( t%e dere-u*ation o( (inan"ia* servi"es $usinessesD in"*udin- insuran"e# $an in-# and se"urities tradin-Dt%e ro*es# produ"ts# and servi"es o( t%ese (or)er*y distin"t $usinesses %ave $e"o)e $*urred. !or instan"e# "iti0ens in t%e U.S. state o( Ca*i(ornia voted in 1>EE to a**o& $an s to se** insuran"e in t%at state. In Canada# $an s )ay a*so soon $e a**o&ed to se** insuran"e. Advan"es in "o))uni"ations te"%no*o-y %ave a*so a**o&ed traditiona**y distin"t (inan"ia* $usinesses to eep instantaneous tra" o( deve*op)ents in ot%er $usinesses and "o)pete (or so)e o( t%e sa)e "usto)ers. So)e insuran"e "o)panies no& o((er deposit a""ounts and )ort-a-es. In t%e United States# *i(e insuran"e "o)panies no& se** )ore pension p*ans and ot%er asset )ana-e)ent servi"es t%an t%ey do "onventiona* *i(e insuran"e. Deve*op)ents in "o)puter te"%no*o-y t%at %ave -iven insuran"e providers t%e a$i*ity to 1ui" *y a""ess and pro"ess in(or)ation %ave a**o&ed t%e) to "usto)8desi-n po*i"ies to (it t%e needs o( individua* "usto)ers. =ut t%e in"reasin- "o)p*exity o( po*i"ies %as a*so )ade so)e aspe"ts o( $uyin- and se**in- insuran"e )ore di((i"u*t. In addition# i)prove)ents in -eo*o-i"a* and )eteoro*o-i"a* te"%no*o-y %ave t%e potentia* to "%an-e t%e &ay property insurers "a*"u*ate ris s o( da)a-e. !or exa)p*e# as s"ientists i)prove t%eir a$i*ities to predi"t severe &eat%er patterns# su"% as %urri"anes# and -eo*o-i"a* distur$an"es# su"% as eart%1ua es# insurers )ay "%an-e %o& t%ey provide prote"tion a-ainst *osses (ro) su"% events ?

EFO+UTION O! INSURANCE IN INDIA T%e )arine insuran"e is t%e o*dest (or) o( insuran"e. I( &e tra"e Indian %istory t%ere are eviden"e t%at )arine insuran"e &as pra"ti"ed %ere a$out t%ree t%ousand years a-o. T%e "ode o( 4anu indi"ates t%at t%ere &as t%e pra"ti"e o( )arine insuran"e "arried out $y t%e traders in India &it% t%ose o( Sri*an a# E-ypt and ;ree"e .it is &onder(u* to see t%at Indians %ad even anti"ipated t%e do"trine o( avera-e and "ontri$ution. !ri-%t &as (ixed a""ordin- to season and &as t%en very )u"% at t%e )er"y o( t%e &ind and ot%er e*e)ents. Trave*ers $y sea and *and &ere very )u"% exposed to t%e ris o( *osin- t%eir vesse*s and )er"%andise $e"ause o( pira"y on open seas and %i-%&ay ro$$ery o( "aravans &as very "o))on. T%e pra"ti"e o( insuran"e &as very "o))on durin- t%e ru*e o( A $ar to Auran-0e$# $ut t%e nature and "overa-e o( t%e insuran"e in t%is period is not &e** no&n. It &as t%e =ritis% insurer &%o introdu"ed -enera* insuran"e in India in t%e )odern (or). T%e =ritis%ers opened -enera* insuran"e in India around t%e year 1BCC .t%e (irst "o)pany no&n as t%e sun insuran"e o((i"e &as set up in Ca*"utta in t%e year 1B1C. T%is &as (o**o&ed $y severa* insuran"e "o)panies *i e +ondon assuran"e and roya* ex"%an-e assuran"e 21B5C3# P%oenix Assuran"e Co)pany 21BE53. Et". ;enera* insuran"e $usiness in t%e "ountry &as nationa*i0ed &it% e((e"t (ro) 1st Ganuary 1>B: $y t%e ;enera* Insuran"e =usiness 2Nationa*i0ation3 A"t# 1>B5. 4ore t%an 1CC non8 *i(e insuran"e "o)panies in"*udin- $ran"%es o( (orei-n "o)panies operatin&it%in t%e "ountry &ere a)a*-a)ated and -rouped into (our "o)panies# vi0.# t%e Nationa* Insuran"e Co)pany +td.# t%e Ne& India Assuran"e Co)pany +td.# t%e Orienta* Insuran"e Co)pany +td.# and t%e United India Insuran"e Co)pany +td. &it% %ead o((i"es at Ca*"utta# =o)$ay# Ne& De*%i and 4adras# respe"tive*y. B

+i(e insuran"e in t%e "urrent (or) "a)e in India (ro) united in-do) &it% t%e esta$*is%)ent o( a =ritis% (ir)# orienta* *i(e assuran"e "o)pany in 1E1E (o**o&ed $y =o)$ay *i(e assuran"e "o)pany in 1E5:# t%e )adras e1uita$*e *i(e insuran"e so"iety in 1E5> and orienta* *i(e assuran"e "o)pany in 1EB<.prior to 1EB1# Indian *ives &ere treated as su$ standard and "%ar-ed an extra pre)iu) o( 1AH to 5CH. =o)$ay )utua* *i(e assuran"e so"iety# an Indian insurer t%at "a)e in to existen"e in 1EB1# &as t%e (irst to "over Indian *ives at nor)a* rates. T%e Indian insuran"e "o)pany A"t 1>5: &as ena"ted inter a*ia# to ena$*e t%e -overn)ent to "o**e"t statisti"a* in(or)ation a$out *i(e and non*i(e insuran"e $usiness transa"ted in India $y Indian and (orei-n insurer# in"*udin- t%e provident insuran"e so"ieties. T%e (irst %a*( o( t%e 5Ct% "entury )ar ed $y t&o &or*d &ar# t%e adverse a((e"ts o( t%e 6or*d 6ar I and 6or*d 6ar II on t%e e"ono)y o( India# and in $et&een t%e) t%e period o( &or*d &ide e"ono)i" "rises tri--ered $y t%e ;reat depression. T%e (irst %a*( o( t%e 5Ct% "entury &as a*so )ar ed $y stru--*es (or India's independen"e. T%e a--re-ate e((e"t o( t%ese events *ed to a %i-% rate o( $an rupt"ies and *i1uidation o( *i(e insuran"e "o)panies in India. T%is %ad adverse*y a((e"ted t%e (ait% o( t%e -enera* pu$*i" in t%e uti*ity o( o$tainin- *i(e "over In t%is $a" -round# t%e Par*ia)ent o( India passed t%e +i(e Insuran"e o( India A"t on 1>t% Gune 1>A?# and t%e +i(e Insuran"e Corporation o( India &as "reated on 1st Septe)$er# 1>A?# $y "onso*idatin- t%e *i(e insuran"e $usiness o( 5<A private *i(e insurers and ot%er entities o((erin- *i(e insuran"e servi"es. E

Sin"e 1>B5# t%e insuran"e se"tor %as $een tota**y under t%e "ontro* o( -overn)ent o( India t%rou-% +IC and ;IC and its su$sidiaries. As a resu*t# revenue o( $ot% o( t%e) in"reased in t%e *ast years .t%e a)ount o( savin-s poo*ed $y +IC in"reased (ro) Rs.5BC< "rores in 1>B< to Rs .AB?BC in 1>>< &it% an annua* -ro&t% rate o( 1?.A:H .si)i*ar*y pre)iu) under&ritten $y ;IC rose (ro) 5EC "rores in 1>: to B?<B "rores in 1>>E s%o&in- an annua* -ro&t% rate o( 5A.1EH. Despite in"rease in pre)iu) "o**e"ted $y $ot% +IC and ;IC t%eir &ere ine((i"ien"y and red tapeisu) "reeped in to t%e insuran"e se"tor. Apart (ro) t%at a )a,or po*i"y s%i(t $y t%e Narasi)%a Rau -overn)ent durin- 1>>C's.t%e Indian e"ono)y opened (or (orei-n "o)petition .In t%is $a" -round T%e -overn)ent o( India in 1>>: %ad set8up a %i-% po&ered "o))ittee $y R.N 4a*%ot%ra #(or)er -overnor reserve $an o( India# to exa)ine t%e stru"ture o( Indian insuran"e se"tor and re"o))ended "%an-es to )a e it )ore e((i"ient and "o)petitive eepinin vie& stru"tura* "%an-es in ot%er part o( t%e (inan"ia* syste) o( t%e "ountry. Insuran"e se"tor %as $een opened up (or "o)petition (ro) Indian private insuran"e "o)panies &it% t%e ena"t)ent o( Insuran"e Re-u*atory and Deve*op)ent Aut%ority A"t# 1>>> 2IRDA A"t3. As per t%e provisions o( IRDA A"t# 1>>># Insuran"e Re-u*atory and Deve*op)ent Aut%ority 2IRDA3 &as esta$*is%ed on 1>t% Apri* 5CCC to prote"t t%e interests o( %o*der o( insuran"e po*i"y and to re-u*ate# pro)ote and ensure order*y -ro&t% o( t%e insuran"e industry. IRDA A"t 1>>> paved t%e &ay (or t%e entry o( private p*ayers into t%e insuran"e )ar et# &%i"% &as %it%erto t%e ex"*usive privi*e-e o( pu$*i" se"tor insuran"e "o)paniesI "orporations. >

EFO+UTION O! INSURANCE OR;ANIJATION 6it% a vie& to serve t%e so"iety# t%e insuran"e or-ani0ations %ave $een deve*oped in di((erent (or)s &it% innovation o( insuran"e pra"ti"e (or so"ia* &e*(are and deve*op)ent7 so)e o( t%ese (or)s are out*ined %ere. a3 Se*(8insuran"e T%e arran-e)ent in &%i"% an individua* or "on"ern sets up a private (und to )eet t%e (uture ris . I( so)e *osses %appened in t%e (uture t%e (ir) )eets t%e *oss out o( t%e (und. 6%i*e it )ay $e "a**ed Kse*( insuran"e' it is not a sin-*e )atter o( (a"t# insuran"e at a** $e"ause t%ere is no %ed-e# no s%i(tin-# or distri$utin- t%e $urden o( ris a)on- *ar-er Persons. It is )ere*y a provision to )eetin- t%e un(oreseen event. Here t%e insured $e"o)e t%e insurer (or t%e parti"u*ar ris . =ut it "an $e e((e"tive*y &or ed on*y &%en t%ere is &ide distri$ution o( ris s su$,e"ted t%e sa)e %a0ard. $3 Partners%ip A partners%ip (ir) )ay a*so "arry on t%e insuran"e $usiness (or t%e sa e o( pro(it. Sin"e it is not an entity distin"t (ro) t%e persons "o)prisin- it# t%e persona* *ia$i*ity o( partners in respe"t to t%e partners%ip de$ts is un*i)ited. In "ase o( %u-e *oss t%e partners )ay %ave to pay (ro) t%eir o&n persona* (unds and it &i** not $e pro(ita$*e to t%e) to starts insuran"e $usiness .in t%e ear*y period $e(ore t%e advent o( ,oint sto" "o)panies )any insuran"e underta in-s &ere partners%ip (ir)s or unin"orporated "o)panies "3 Goint sto" "o)panies T%e ,oint sto" "o)panies are t%ose# &%i"% are or-ani0ed $y t%e s%are%o*ders &%o su$s"ri$e t%e ne"essary "apita* to start t%e $usiness. T%ese are (or)ed (or earnin- pro(its (or t%e sto" %o*ders &%o are t%e rea* o&ners o( t%e "o)panies. T%e )ana-e)ent o( a "o)pany is entrusted to a $oard o( dire"tors &%o is e*e"ted $y t%e s%are%o*ders (ro) a)on-st t%e)se*ves. T%e "o)pany "an operate insuran"e $usiness and po*i"y%o*ders %ave not%in- to do &it% t%e )ana-e)ent o( t%e "on"ern. =ut in *i(e insuran"e it is t%e pra"ti"e to s%are "ertain portion o( pro(it a)on- t%e "ertain po*i"y%o*ders. 1C

d3 4utua* (und "o)panies T%e )utua* (und "o)panies are "o8 operative asso"iation (or)ed (or t%e purpose o( e((e"tin- insuran"e on t%e property o( its )e)$ers. T%e po*i"y%o*ders are t%e)se*ves t%e s%are%o*ders o( t%e "o)panies ea"% )e)$er is insured as &e** as insured. T%ey %ave po&er to parti"ipate in )ana-e)ent and in t%e pro(it s%arin- to t%e (u** extent. 6%enever t%e in"o)e is )ore t%an t%e expenses and "*ai)s# it is a""u)u*ated I t%e (or) o( savin- and is entit*ed in redu"in- t%e rate o( pre)iu). Sin"e t%e insured are insurers a*so# t%ey a*&ays try to redu"e t%e )ana-e)ent expenses and to eep t%e $usiness at sound *eve*. e3 Co8operative insuran"e or-ani0ations Cooperative insuran"e or-ani0ations are t%ose "on"erns# &%i"% are in"orporated and re-istered under Indian "ooperative so"ieties A"t. T%e "on"erns are a*so "a**ed K"o operative insuran"e so"ieties' t%ese so"ieties *i e )utua* (und "o)panies are non pro(it or-ani0ation .t%e ai) is to provide insuran"e prote"tion to its )e)$ers at t%e *o&est reasona$*e net "ost .t%e Indian insuran"e A"t. 1>:E# %as provided spe"ia* provisions (or t%e "o8operative insuran"e so"ieties# $ut a(ter nationa*i0ation t%e so"ieties %ave "eased to exist. (3 +*oyd's Asso"iation +*oyd's asso"iation is one o( t%e -reatest insuran"e institutions in t%e &or*d. Ta in- its na)e (ro) t%e "o((ee %ouse +*oyd &%ere under&riters asse)$*ed to transa"t $usiness and pi" 8up ne&s. T%e or-ani0ation tra"es its ori-ins to t%e *atter part o( t%e seventeent% "entury .so it is t%e o*dest insuran"e or-ani0ation in existin- (or) in t%e &or*d. In 1EB1#+*oyds A"t &as passed in"orporatin- t%e )e)$ers o( t%e asso"iation into a sin-*e "orporate $ody &it% perpetua* su""ession and a "orporate sea* .t%e po&ers o( +*oyds "orporation &ere extended (ro) t%e $usiness o( )arine insuran"e to t%e ot%er insuran"e and -uarantee $usiness. T%e +*oyds Asso"iation a*so pu$*is%es# +*oyds *ist and re-ister o( s%ippin- (or t%e in(or)ation o( insurin- pu$*i" and t%e insurers 11

-3 State Insuran"e T%e -overn)ent o( a nation# so)e ti)es# o&ns t%e insuran"e and runs t%e $usiness (or t%e $ene(it o( t%e pu$*i". T%e sate insuran"e is de(ined as t%at insuran"e &%i"% is under pu$*i" se"tor. In =ra0i*# Gapan and 4exi"o# t%e insuran"e are *ar-e*y nationa*i0ed. Previous*y# t%e state undertoo on*y t%ose insuran"es# &%i"% &ere re-arded as vita* (or t%e nationa* interest. INSURANCE SECTOR RE!OR4S Havin- *oo ed at t%e insuran"e se"tor# t%e e((orts )ade $y t%e -overn)ent to )a e t%e industry )ore dyna)i" and "usto)er (riend*y. To $e-in &it%# t%e 4a*%otra "o))ittee &as set up &it% t%e o$,e"tive o( su--estin- "%an-es t%at &ou*d a"%ieve t%e )u"% re1uired dyna)is). T%e 4a*%otra Co))ittee Report In 1>>:# 4a*%otra Co))ittee# %eaded $y (or)er !inan"e Se"retary and R=I ;overnor R. N. 4a*%otra# &as (or)ed to eva*uate t%e Indian insuran"e industry and re"o))end its (uture dire"tion. In 1>><# t%e "o))ittee su$)itted t%e report and -ave t%e (o**o&in- re"o))endations9 Stru"ture ;overn)ent sta e in t%e insuran"e Co)panies to $e $rou-%t do&n to ACH ;overn)ent s%ou*d ta e over t%e %o*din-s o( ;IC and its su$sidiaries so t%at t%ese su$sidiaries "an a"t as independent "orporations A** t%e insuran"e "o)panies s%ou*d $e -iven -reater (reedo) to operate 15

Co)petition Private Co)panies &it% a )ini)u) paid up "apita* o( Rs.1$n s%ou*d $e a**o&ed to enter t%e industry No Co)pany s%ou*d dea* in $ot% +i(e and ;enera* Insuran"e t%rou-% a sin-*e entity !orei-n "o)panies )ay $e a**o&ed to enter t%e industry in "o**a$oration &it% t%e do)esti" "o)panies. Posta* +i(e Insuran"e s%ou*d $e a**o&ed to operate in t%e rura* )ar et. On*y one State +eve* +i(e Insuran"e Co)pany s%ou*d $e a**o&ed to operate in ea"% stat Re-u*atory =ody T%e Insuran"e A"t s%ou*d $e "%an-ed. An Insuran"e Re-u*atory $ody s%ou*d $e set up. Contro**er o( Insuran"e 2Current*y a part (ro) t%e !inan"e 4inistry3 Invest)ents 4andatory Invest)ents o( +IC +i(e !und in -overn)ent se"urities to $e redu"ed (ro) BAH to ACH. ;IC and its su$sidiaries are not to %o*d )ore t%an AH in any "o)pany 2T%ere "urrent %o*din-s to $e $rou-%t do&n to t%is *eve* over a period o( ti)e3. Custo)er Servi"e +IC s%ou*d pay interest on de*ays in pay)ents $eyond :C days. Insuran"e "o)panies )ust $e en"oura-ed to set up unit *in ed pension p*ans. Co)puteri0ation o( operations and updatin- o( te"%no*o-y to $e "arried out in t%e insuran"e industry. Overa**# t%e "o))ittee stron-*y (e*t t%at in order to i)prove t%e "usto)er servi"es and in"rease t%e "overa-e o( t%e insuran"e industry s%ou*d $e opened up to "o)petition. =ut at t%e sa)e ti)e# t%e "o))ittee (e*t t%e need to exer"ise "aution as any (ai*ure on t%e part o( ne& p*ayers "ou*d ruin t%e pu$*i" "on(iden"e in t%e industry 1:

!e& +i(e Insuran"e po*i"ies are9 6%o*e *i(e po*i"ies 8 Cover t%e insured (or *i(e. T%e insured does not re"eive )oney &%i*e %e is a*ive7 t%e no)inee re"eives t%e su) assured p*us $onus upon deat% o( t%e insured. Endo&)ent po*i"ies 8 Cover t%e insured (or a spe"i(i" period. T%e insured re"eives )oney on surviva* o( t%e ter) and is not "overed t%erea(ter. 4oney $a" po*i"ies 8 T%e no)inee re"eives )oney i))ediate*y on deat% o( t%e insured. On surviva* t%e insured re"eives )oney at re-u*ar interva*s durin- t%e ter). T%ese po*i"ies "ost )ore t%an endo&)ent &it% pro(it po*i"ies. Annuities I C%i*drenLs po*i"ies 8 T%e no)inee re"eives a -uaranteed a)ount o( )oney at a pre8deter)ined ti)e and not i))ediate*y on deat% o( t%e insured. On surviva* t%e insured re"eives )oney at t%e sa)e pre8deter)ined ti)e. T%ese po*i"ies are $est suited (or p*annin- "%i*drenLs (uture edu"ation and )arria-e "osts. Pension s"%e)es 8 are po*i"ies t%at provide $ene(its to t%e insured on*y upon retire)ent. I( t%e insured dies durin- t%e ter) o( t%e po*i"y# %is no)inee &ou*d re"eive t%e $ene(its eit%er as a *u)p su) or as a pension every )ont%. Sin"e a sin-*e po*i"y "annot )eet a** t%e insuran"e o$,e"tives# one s%ou*d %ave a port(o*io o( po*i"ies "overin- a** t%e needs 1<

1.5 =ACM;ROUND O! THE STUDY .+i(e Insuran"e is a "ontra"t (or pay)ent o( a su) o( )oney to t%e person assured on t%e %appenin- o( t%e event insured a-ainst/. Usua**y t%e insuran"e "ontra"t provides (or t%e pay)ent o( an a)ount on t%e date o( )aturity or at spe"i(ied dates at periodi" interva*s or at un(ortunate deat% i( it o""urs ear*ier. O$vious*y# t%ere is a pri"e to $e paid (or t%is $ene(it. A)on- ot%er t%in-s t%e "ontra"ts a*so provides (or t%e pay)ent o( pre)iu)s# $y t%e assured. +i(e Insuran"e is universa**y a" no&*ed-ed as a too* to e*i)inate ris # su$stitute "ertainty (or un"ertainty and ensure ti)e*y aid (or t%e (a)i*y in t%e un(ortunate event o( t%e deat% o( t%e $read&inner. In ot%er &ords# it is t%e "ivi*i0ed &or*d's partia* so*ution to t%e pro$*e)s "aused $y deat%. +i(e insuran"e %e*ps in t&o &ays dea*in- &it% pre)ature deat%# &%i"% *eaves dependent (a)i*ies to (end (or t%e)se*ves and o*d a-e &it%out visi$*e )eans o( support. T%e )ost "o))on types o( *i(e insuran"e are &%o*e *i(e insuran"e and ter) *i(e insuran"e. 6%o*e *i(e insuran"e provides a *i(eti)e o( prote"tion as *on- as you pay t%e pre)iu)s to eep t%e po*i"y a"tive. T%ey a*so a""rue a "as% va*ue and t%us o((er a savin-s "o)ponent. Ter) *i(e insuran"e provides prote"tion on*y durin- t%e ter) o( t%e po*i"y and t%e po*i"ies are usua**y rene&a$*e at t%e end o( t%e ter) 1A

T%ere are )any +i(e Insuran"e Co)panies *i e +I!E INSURANCE CORPORATION O! INDIA =AGAG A++IANJ +I!E INSURANCE CO4PANY ICICI PRUDENTIA+ +I!E INSURANCE CO4PANY HD!C STANDARD +I!E INSURANCE CO4PANY =IR+A SUN8+I!E INSURANCE CO4PANY IN; FYSYA +I!E INSURANCE CO4PANY 4ET+I!E INSURANCE CO4PANY TATA AI; +I!E INSURANCE CO4PANY 4AN NE6 YORM +I!E INSURANCE CO4PANY O4 MOTAM 4AHINDRA +I!E INSURANCE CO4PANY 1?

CHAPTER 5 RESEARCH DESI;N 1B

RESEARCH DESI;N 5.1 STATE4ENT O! THE PRO=+E4 T%is Study &i** %e*p us to understand t%e "onsu)er's per"eption a$out *i(e insuran"e "o)panies. T%is study &i** %e*p t%e "o)panies to understand# %o& a "onsu)er se*e"ts# or-ani0es and interprets t%e Oua*ity o( servi"e and produ"t o((ered $y *i(e insuran"e "o)panies. 5.5 SCOPE O! THE STUDY T%is study is *i)ited to t%e "onsu)ers &it%in t%e *i)it o( =an-a*ore "ity. T%e study &i** $e a$*e to revea* t%e pre(eren"es# needs# per"eption o( t%e "usto)ers re-ardin- t%e *i(e insuran"e produ"ts# It a*so %e*p t%e insuran"e "o)panies to no& &%et%er t%e existin- produ"ts are rea**y satis(yin- t%e "usto)ers needs . 5.: NEED !OR THE STUDY 13 T%e deeper t%e understandin- o( "onsu)er's needs and per"eption# t%e ear*ier t%e produ"t is introdu"ed a%ead o( "o)petitors# t%e expe"ted "ontri$ution )ar-in &i** $e -reater .Hen"e t%e study is very i)portant. 53 Consu)er )ar ets and "onsu)er $uyin- $e%avior "an $e understood $e(ore sound produ"t and )ar etin- p*ans are deve*oped :3 T%is study &i** %e*p "o)panies to "usto)i0e t%e servi"e and produ"t# a""ordin- to t%e "onsu)er's need. <3 T%is study &i** a*so %e*p t%e "o)panies to understand t%e experien"e and expe"tations o( t%e existin- "usto)ers. A3 Apart (ro) "reatin-# )anu(a"turin- and distri$ution "apa$i*ities (or *i(e insuran"e produ"ts# an in dept% study o( t%e "onsu)ers# t%eir pre(eren"es and de)and (or t%eir produ"t is very ne"essary (or settin- up an e((i"ient )ar etin- net&or . 1E

5.< O=GECTIFE O! THE STUDY o As"ertain t%e pro(i*e and "%ara"teristi"s o( potentia* $uyers. o To %ave an insi-%t into t%e attitudes and $e%aviors o( "usto)ers. o To (ind out t%e di((eren"es a)on- per"eived servi"e and expe"ted servi"e . o To produ"e an exe"utive servi"e report to up-rade servi"e "%ara"teristi"s o( *i(e insuran"e "o)panies. o To a""ess t%e de-ree o( satis(a"tion o( t%e "onsu)ers &it% t%eir "urrent $rand o( Insuran"e produ"ts. 5.A. REFIE6 O! +ITERATURE9 T%e *iterature revie& se"tion "riti"a**y exa)ine t%e re"ent or %istori"a**y si-ni(i"ant studies# "o)pany data or industry reports t%at a"ts as a $asis (or proposed studies to $e-in &it% t%e resear"% dis"ussion o( t%e re*ated *iterature and re*evant se"ondary data (ro) a "o)pre%ensive prospe"tive# )ovin- to )ore spe"i(i" studies# t%at are asso"iate &it% resear"% pro$*e). =asi"a**y t%e *iterature s%ou*d $e app*ied to t%e study# t%an t%e resear"%er proposes. T%e *iterature )ay a*so exp*ain t%e needs (or t%e proposed &or to appraise t%e s%ort "o)in-s and in(or)ationa* -aps in se"ondary data sour"es. To "arry t%e resear"% &or t%e resear"%er %as -one t%rou-% a (e& reports# $oo s# ,ourna*s and &e$sites. T%e detai*s re-ardin- +i(e Insuran"e Industry# %istory# ori-in and -ro&t% o( t%e industry is a*so ta en (ro) so)e $oo s# )a-a0ines et". T%e sour"es o( t%is in(or)ation are as (o**o&s9 Cata*o-ues and =roa"%ers (ro) various *i(e insuran"e "o)panies. Arti"*es (ro) )a-a0ines and ne&s paper. In(or)ation (ro) various &e$sites. 1>

5.? RESEARCH DESI;N9 A resear"% desi-n is a $asi" p*an# &%i"% -uides t%e resear"%er in t%e "o**e"tion and ana*ysis o( data re1uired (or pra"ti"in- t%e resear"%. In(e"t t%e resear"% desi-n is t%e "on"eptua* stru"ture &%ere t%e resear"% is "ondu"ted. It "onstitutes t%e K=*ue Print' (or t%e "o**e"tion# )easure)ent and ana*ysis o( t%e data. T%e study is "arried out to understand t%e Consu)er Per"eption a$out *i(e insuran"e "o)panies in =an-a*ore "ity .!or t%is study t%e resear"%er used exp*oratory resear"% desi-n. T%is resear"% "overs AC "onsu)ers in =an-a*ore "ity# $e*on-in- to various a-e -roups. 5.B SA4P+E DESI;N9 T%e pro"ess o( dra&in- a sa)p*e (ro) a *ar-e popu*ation is "a**ed sa)p*in-. Popu*ation re(ers to t%e tota* o( ite)s a$out &%i"% in(or)ation is de(ined. 6e**8se*e"ted sa)p*es )ay re(*e"t (air*y and a""urate*y t%e "%ara"teristi"s o( t%e popu*ation. Sa)p*in- Unit9 T%e sa)p*e unit o( t%is survey &as t%e "usto)ers %avin- *i(e insuran"e po*i"ies in =an-a*ore "ity. Sa)p*e Si0e9 T%e sa)p*e si0e &as AC "usto)ers o( di((erent *i(e insuran"e "o)panies# (ro) t%e various parts o( t%e =an-a*ore "ity. Sa)p*in- Te"%ni1ue Adopted9 Convenient sa)p*in5.E SOURCES O! DATA9 A(ter identi(yin- and de(inin- t%e resear"% pro$*e) and deter)inin- spe"i(i" in(or)ation re1uired to so*ve t%e pro$*e) t%e resear"%er &i** *oo (or t%e type and sour"es o( data &%i"% )ay yie*d t%e desired resu*ts# &%i*e de"idin- a$out t%e )et%od o( data "o**e"tion to $e used (or t%e study# t%ere are t&o types o( data. 5C

Se"ondary Data9 Se"ondary data )eans data t%at are a*ready avai*a$*e i.e. t%ey re(er to t%e data &%i"% %ave $een "o**e"ted and ana*y0ed $y so)eone and "an save $ot% )oney and ti)e o( t%e resear"%er. Se"ondary data )ay $e avai*a$*e in t%e (or) o( "o)pany re"ords# trade pu$*i"ations# *i$raries et". Se"ondary data sour"es are as (o**o&s9 Co)pany Reports Dai*y Ne&spaper Standard Text$oo Farious 6e$sites Pri)ary Data9 Pri)ary data are t%ose# &%i"% are "o**e"ted (or t%e (irst ti)e. Pri)ary data is "o**e"ted $y (ra)in- 1uestionnaires. T%e 1uestionnaire "ontained 1uestions# &%i"% are $ot% openended and "*osed8ended. Open8ended 1uestions are 1uestions re1uirin- ans&ers in t%e responder's o&n &ords. C*osed8ended 1uestions are t%ose &%erein t%e respondent %as to )ere*y "%e" t%e appropriate ans&er (ro) a *ist o( options avai*a$*e. Any dou$ts raised $y t%e respondents &ere "*ari(ied to -et t%e per(e"t ans&ers (ro) t%e distri$utors. Openended 1uestions yie*ded )ore insi-%t(u* in(or)ation# &%ereas "*osed8Ended 1uestions &ere re*ative*y si)p*e to ta$u*ate and ana*y0e. 5.> !IE+D 6ORM9 An intervie&8s"%edu*e and &e**8stru"tured 1uestionnaire is ad)inistered to t%e tar-et respondents to "o**e"t pri)ary data 2Copy o( 1uestionnaire is atta"%ed in t%e appendix3 Open and "*ose8ended 1uestions are used in t%e 1uestionnaire. T%e orders o( t%e 1uestions are in su"% a )anner t%at t%ey $e-in &it% si)p*e 1uestions and *ead on t%e 1uestions t%at needed )ore invo*ve)ent (ro) respondents.T%e se"ondary data are "o**e"ted (ro) periodi"a*s# )a-a0ines# ,ourna*s and Internet. 51

OPERATIONA+ DE!INITIONS O! THE STUDY 4ar etin-9 4ar etin- is a so"ia* and )ana-eria* pro"ess $y &%i"% individua*s and -roup o$tain &%at t%ey need and &ant t%rou-% "reatin-# o((erin- and ex"%an-in- produ"ts o( va*ue &it% ot%ers . 4ar etin- 4ana-e)ent9 4ar etin- 4ana-e)ent is t%e pro"ess o( p*annin- and exe"utin- t%e "on"eption# pri"in-# pro)otion and distri$ution o( individua* and or-ani0ationa* -oa*s. 4ar etin- Resear"%9 4ar etin- resear"% is t%e syste)ati" and o$,e"tive sear"% (or# and ana*ysis o( in(or)ation re*evant to t%e identi(i"ation and so*ution o( any pro$*e)s in t%e (ie*d o( )ar etin-. Consu)er Resear"%9 Consu)er resear"% is t%e )et%odo*o-y used to study "onsu)er $e%aviour. Consu)er =e%aviour9 Consu)er $e%aviour is t%e study o( %o& individua*s )a e de"isions to spend t%eir avai*a$*e resour"es Pti)e# )oney# e((ortsQ on "onsu)ption re*ated ite)s . 4ar et Se-)entation9 4ar et se-)entation is t%e pro"ess o( dividin- a )ar et in t%e distin"t su$sets o( "onsu)er &it% "o))on needs or "%ara"teristi"s and se*e"tin- one or )ore se-)ents to tar-et &it% distin"t )ar etin- )ix. Positionin-9 Positionin- is t%e a"t o( desi-nin- t%e "o)pany's o((erin- and i)a-e so t%at t%ey o""upy a )eanin-(u* and distin"t "o)petitive position in t%e tar-et "onsu)er's )ind. 55

Per"eption9 Per"eption is t%e pro"ess $y &%i"% an individua* se*e"ts# or-ani0es# and interprets in(or)ation input to "reate a )eanin-(u* pi"ture o( t%e &or*d. !or a )ar eter to in(*uen"e a )otivated $uyer to $uy t%eir produ"ts rat%er t%an "o)petitors t%ey )ust $e "are(u* to ta e t%e per"eption pro"ess into a""ount &%i*e desi-nin- t%eir )ar etin- "a)pai-ns. Per"eption t%ere(ore in(*uen"e &%at produ"t "onsu)er $uys. Attitude9 An attitude is a person endurin- (avora$*e or un(avora$*e eva*uation# e)otiona* (ee*in-# and a"tion tenden"ies to&ards so)e o$,e"t or idea. Attri$utes9 Attri$utes are t%e stren-t%s and &ea nesses o( a $rand t%at "reate attitudes and are used $y "onsu)ers to "%oose $et&een $rands t%at are re*ative*y si)i*ar or (un"tiona**y e1uiva*ent. Fa*ues9 A va*ue is a "on"ept o( t%e desira$*e. An interna*i0ed standard o( eva*uation a person possession. T%is standard deter)ines or -uide an individua* eva*uation o( t%e )any o$,e"ts en"ountered in everyday *i(e. =rand9 A $rand is a na)e# ter)# si-n# sy)$o*# or desi-n or a "o)$ination o( t%e)# used to identi(y t%e -oods or servi"es o( one se**er or -roup o( se**er and t%e di((erentiate t%e) (ro) t%ose o( "o)petitors. 5:

5.1C +I4ITATIONS O! THE STUDY A*t%ou-% t%e study &as "arried out &it% extre)e ent%usias) and "are(u* p*annin- t%ere are severa* *i)itations# &%i"% %andi"apped t%e resear"% vi0. Ti)e Constraints9 T%e ti)e stipu*ated (or t%e pro,e"t to $e "o)p*eted is *ess and t%us t%ere are "%an"es t%at so)e in(or)ation )i-%t %ave $een *e(t out# %o&ever due "are is ta en to in"*ude a** t%e re*evant in(or)ation needed. Sa)p*e si0e9 Due to ti)e "onstraints t%e sa)p*e si0e &as re*ative*y s)a** and &ou*d de(inite*y %ave $een )ore representative i( I %ad "o**e"ted in(or)ation (ro) )ore respondents . A""ura"y9 It is di((i"u*t to no& i( a** t%e respondents -ave a""urate in(or)ation7 so)e respondents tend to -ive )is*eadin- in(or)ation. 5<

CHAPTER : PRO!I+E O! THE INDUSTRY 5A

:.1 INDUSTRY PRO!I+E History and Deve*op)ent o( +i(e Insuran"e +i(e Insuran"e# in its present (or)# "a)e to India (ro) t%e United Min-do) &it% esta$*is%)ent o( a =ritis% (ir)# Orienta* +i(e Insuran"e Co)pany in Ca*"utta in 1E1E# (o**o&ed $y =o)$ay +i(e Assuran"e Co)pany in 1E5:# t%e 4adras E1uita$*e +i(e Insuran"e so"iety in 1E5> and Orienta* ;overn)ent se"urity Assuran"e Co)pany in 1EB<. Prior to 1EB1# Indian +ives &ere treated as su$8standard and "%ar-ed an extra pre)iu) o( 1AH to 5CH. =o)$ay 4utua* +i(e Assuran"e So"iety# a Indian insurer &%i"% "a)e into existen"e in 1EB1 &as t%e (irst to "over Indian *ives at nor)a* rates. T%e Indian *i(e Assuran"e Co)panies A"t# 1>15 &as t%e (irst statutory )easure to re-u*ate *i(e insuran"e $usiness. +ater# in 1>5E# t%e Indian Insuran"e Co)panies A"t &as ena"ted# to ena$*e t%e -overn)ent to "o**e"t statisti"a* in(or)ation a$out $ot% *i(e and non8*i(e insuran"e $usiness transa"ted in India $y Indian and (orei-n insurers# in"*udin- t%e provident insuran"e so"ieties. Co)pre%ensive arran-e)ents &ere# %o&ever# $rou-%t into e((e"t &it% t%e ena"t)ent o( t%e Insuran"e A"t# 1>:E. =y 1>A?# 1A< Indian insurers# 1? non8Indian insurers and 1A provident so"ieties &ere "arryin- on*ine insuran"e $usiness in India. On 1>t% Ganuary 1>A?# t%e )ana-e)ent o( t%e entire *i(e insuran"e $usiness o( 55> Indian insurers and provident insuran"e so"ieties and t%e Indian *i(e insuran"e $usiness o( 1? non8 Indian +i(e insuran"e "o)panies t%en operatin- in India# &as ta en over $y t%e "entra* ;overn)ent and t%en nationa*i0ed on 1st Septe)$er 1>A? &%en t%e +i(e Insuran"e Corporation "a)e into existen"e. 6it% *ar-est nu)$er o( *i(e insuran"e po*i"ies in (or"e in t%e &or*d# Insuran"e %appens to $e a )e-a opportunity in India. It's a $usiness -ro&in- at t%e rate o( 1A85C per "ent annua**y and present*y is o( t%e order o( Rs <AC $i**ion. To-et%er &it% $an in- servi"es# it adds a$out B per "ent to t%e "ountry's ;DP. ;ross pre)iu) "o**e"tion is near*y 5 per "ent o( ;DP and (unds avai*a$*e &it% +IC (or invest)ents are E per "ent o( ;DP. 5?

Yet# near*y EC per "ent o( Indian popu*ation is &it%out *i(e insuran"e "over &%i*e %ea*t% insuran"e and non8*i(e insuran"e "ontinues to $e $e*o& internationa* standards. And t%is part o( t%e popu*ation is a*so su$,e"t to &ea so"ia* se"urity and pension syste)s &it% %ard*y any o*d a-e in"o)e se"urity. T%is itse*( is an indi"ator t%at -ro&t% potentia* (or t%e insuran"e se"tor is i))ense. A &e**8deve*oped and evo*ved insuran"e se"tor is needed (or e"ono)i" deve*op)ent as it provides *on-8ter) (unds (or in(rastru"ture deve*op)ent and at t%e sa)e ti)e stren-t%ens t%e ris ta in- a$i*ity. It is esti)ated t%at over t%e next ten years India &ou*d re1uire invest)ents o( t%e order o( one tri**ion US do**ar. T%e Insuran"e se"tor# to so)e extent# "an ena$*e invest)ents in in(rastru"ture deve*op)ent to sustain e"ono)i" -ro&t% o( t%e "ountry. INSURANCE AND =USINESS ENFIRON4ENT Insuran"e is "onsidered as one o( t%e i)portant se-)ent o( t%e e"ono)y (or its -ro&t% and deve*op)ent. T%is industry provides *on- ter) (unds &%i"% are essentia* (or t%e -ro&t% and deve*op)ent o( t%e nation .so t%e -ro&t% o( insuran"e industry *ar-e*y depends up on t%e environ)ent in &%i"% t%ey exists. Here I &ou*d *i e to )ention a$out Indian $usiness environ)ent and t%eir i)pa"t on insuran"e se"tor. T%ere are t&o type o( environ)ent &%i"% a((e"t t%e $usiness one is environ)ent &%i"% is interna* to t%e or-ani0ation 2interna* environ)ent3 and t%e ot%er one &%i"% is externa* to t%e or-ani0ation 2externa* environ)ent3. Interna* environ)ent in"*udes )ana-e)ent# te"%no*o-y# "o)petitors# e)p*oyees# s%are%o*ders# po*i"y%o*ders# )ar etin- inter)ediary et". T%e externa* environ)ent o( insuran"e $usiness %as $een "*assi(ied in (our parts# na)e*y *e-a*# e"ono)i"# (inan"ia*# and "o))er"ia*. *et us dis"us t%e) in detai* $y ta in- one $y one. 5B

THE INSURANCE RE;U+ATORY AND DEFE+OP4ENT AUTHORITY 2IRDA3 T%e 4a*%otra Co))ittee (e*t t%e need to provide -reater autono)y to insuran"e "o)panies in order to i)prove t%eir per(or)an"e and ena$*e t%e) to a"t as independent "o)panies &it% e"ono)i" )otives. !or t%is purpose# it %ad proposed settin- up an independent re-u*atory $ody8 T%e Insuran"e Re-u*atory and Deve*op)ent Aut%ority. =ased on t%e 4a*%otra "o))ittee report in Apri* 5CCC IRDA &as in"orporated. Sin"e $einset up as an independent statutory $ody t%e IRDA %as put in a (ra)e&or o( -*o$a**y "o)pati$*e re-u*ations. Se"tion 1< o( t%e IRDA A"t 1>>># *ays t%e duties# po&er and (un"tions o( t%e aut%ority .t%e aut%ority s%a** %ave t%e duty to re-u*ate# pro)ote and ensure order*y -ro&t% o( t%e insuran"e $usiness and reinsuran"e $usiness. Re(or)s and I)p*i"ations T%e *i$era*i0ations o( t%e Indian insuran"e se"tor %as $een t%e su$,e"t o( )u"% %eated de$ate (or so)e years. T%e se"tor is (ina**y set to open up to private "o)petition. T%e Insuran"e Re-u*atory and Deve*op)ent Aut%ority $i** &i** "*ear t%e &ay (or private entry into insuran"e# as t%e -overn)ent is een to invite private se"tor parti"ipation into insuran"e. To address t%ose "on"erns# t%e $i** re1uires dire"t insurers to %ave a )ini)u) paid8up "apita* o( Rest. 1 $i**ion# to invest po*i"y%o*der's (unds on*y in India7 and to restri"t internationa* "o)panies to a )inority e1uity %o*din- o( 5? per"ent in any ne& "o)pany. Indian Pro)oters &i** a*so %ave to di*ute t%eir e1uity %o*din- to 5? per"ent over a 1C8 year period. Over t%e past t%ree year# around :C "o)panies %ave expressed interest in enterin- t%e se"tor and )any (orei-n and Indian "o)panies %ave arran-ed a**ian"es. 6%et%er t%e insurer is o*d or ne&# private or pu$*i"# expandin- t%e )ar et &i** present "%a**en-es. A nu)$er o( (orei-n Insuran"e Co)panies %ave set up representative o((i"es in India and %ave a*so tied up &it% various asset )ana-e)ent "o)panies. So)e o( t%e Indian "o)panies# &%i"% %ave tied up &it% Internationa* partners# are. 5E

Indian Partners =o)$ay Dyein- Tata Da$ur ;roup ICICI Sundara) !inan"e Hindustan Ti)es Ran$axy HD!C CM =ir*a ;roup DC4 S%rira) ;odre, 4 A C%ida)$ara) C%o*a)anda*a) SM 4odi ;roup 5Ct% Century !inan"e A*pi" !inan"e Fysya =an Mota 4a%indra Internationa* Partners ;enera* A""ident# UM A)eri"an Int. ;roup# US +i$erty 4utua* !und# US Prudentia*# UM 6intert%ur Insuran"e# S&it0er*and Co))er"ia* Union# UM Ci-na# US Standard +i(e# UM Juri"% Insuran"e# S&it0er*and Roya* Sun A**ian"e# UM G Rot%s"%i*d # UM 4et +i(e ;uardian Roya* Ex"%an-e# UM +e-a* and ;enera*# Austra*ia Canada +i(e A**ian0 Ho*din-# ;er)any IN; C%u$$# US T%e *i e*y i)pa"t o( openin- up o( India's insuran"e se"tor is t%at private p*ayers )ay s&a)p t%e )ar et. Internationa* insurers o(ten derive a si-ni(i"ant part o( t%eir $usiness (ro) )u*tinationa* operations. 4u*tinationa* insurers are indeed een*y interested as7 per%aps t%ere %o)e )ar ets are saturated &%i*e e)er-in- "ountries %ave *o& insuran"e penetration and %i-% -ro&t% rates 5>

Type o( *i(e insuran"e po*i"ies 6%o*e *i(e insuran"e 6%o*e *i(e is a (or) o( per)anent insuran"e# &it% -uaranteed rates and -uaranteed "as% va*ues. It is t%e *east (*exi$*e (or) o( per)anent insuran"e. Universa* *i(e insuran"e Universa* *i(e is si)i*ar to &%o*e *i(e# ex"ept t%at you "an "%an-e t%e deat% $ene(it 2t%e )oney paid to t%e $ene(i"iary &%en t%e insured person dies3# t%e a)ount o( pre)iu)s and %o& o(ten you pay t%e pre)iu)s. Faria$*e *i(e insuran"e Faria$*e *i(e insuran"e is t%e ris iest (or) o( per)anent insuran"e# $ut it "an a*so -ive you t%e $est return (or your )oney. Essentia**y# t%e *i(e insuran"e "o)pany &i** invest your insuran"e pre)iu)s (or you. I( t%e invest)ents do &e**# t%e deat% $ene(it and "as% va*ue o( t%e po*i"y -o up. I( t%ey do poor*y# t%ey -o do&n. ItLs a *itt*e *i e puttin- your savin-s into t%e sto" )ar et. ;roup *i(e insuran"e 4any "o)panies a**o& t%eir e)p*oyees to $uy -roup *i(e insuran"e t%rou-% t%e "o)pany. Usua**y# you "an -et very -ood rates (or t%is insuran"e $ut you %ave to -ive t%e insuran"e up &%en you stop &or in- t%ere. !or t%at reason# -roup insuran"e "an $e a -ood &ay to $uy a *itt*e extra *i(e insuran"e# $ut it does not )a e sense to )a e it your )ain po*i"y. :C

T%ere are a nu)$er o( po*i"ies (or spe"i(i" insuran"e needs. So)e o( t%ese in"*ude9 1. !a)i*y in"o)e *i(e insuran"e. T%is is a de"reasin- ter) po*i"y t%at provides a stated in"o)e (or a (ixed period o( ti)e# i( t%e insured person dies durint%e ter) o( "overa-e. T%ese pay)ents "ontinue unti* t%e end o( a ti)e period spe"i(ied &%en t%e po*i"y is pur"%ased. 5. !a)i*y insuran"e. A &%o*e *i(e po*i"y t%at insures a** t%e )e)$ers o( an i))ediate (a)i*y 8%us$and# &i(e and "%i*dren. Usua**y t%e "overa-e is so*d in units per person# &it% t%e pri)ary &a-e8earner insured (or t%e -reatest a)ount. :. Senior *i(e insuran"e. A*so no&n as -raded deat% $ene(it p*ans# t%ey provide (or a -raded a)ount to $e paid to t%e $ene(i"iary. !or exa)p*e# in ea"% o( t%e (irst t%ree to (ive years a(ter t%e insured dies# t%e deat% $ene(it s*o&*y in"reases. A(ter t%at period# t%e entire deat% $ene(it is paid to t%e $ene(i"iary. T%is )i-%t $e appropriate i( t%e $ene(i"iary is not a$*e to %and*e a *ar-e a)ount o( )oney soon a(ter t%e deat%# $ut &ou*d $e in a $etter position to %and*e it a (e& years *ater. <. Guveni*e insuran"e. T%is is *i(e insuran"e on a "%i*d. Covera-e is paid (or $y an adu*t# usua**y t%e parents or -uardians. Su"% po*i"ies are not "onsidered traditiona* *i(e insuran"e $e"ause t%e "%i*d is not produ"in- an in"o)e t%at needs to $e prote"ted. Ho&ever# $y $uyin- t%e po*i"y &%en t%e "%i*d is youn-# t%e parents are a$*e to *o" in an extre)e*y *o& pre)iu) rate and a**o& )any )ore years o( tax8de(erred "as% va*ue $ui*dup . :1

A. Credit *i(e insuran"e. T%is insuran"e is desi-ned to pay o(( t%e $a*an"e o( a *oan i( you die $e(ore you %ave repaid it. Credit *i(e insuran"e is avai*a$*e (or )any inds o( *oans in"*udin- student *oans# auto *oans# (ar) e1uip)ent *oans# (urniture and ot%er persona* *oans in"*udin- "redit "ards. Credit *i(e insuran"e "an $e pur"%ased $y an individua*. Usua**y it is so*d $y (inan"ia* institutions )a in- *oans# *i e $an s# to $orro&ers at t%e ti)e t%ey ta e out t%e *oan. I( a $orro&er dies# t%e pro"eeds o( t%e po*i"y repay t%e *oan dire"t*y to t%e *ender or "reditor. ?. 4ort-a-e insuran"e T%is de"reasin- ter) "overa-e is desi-ned to pay o(( t%e unpaid $a*an"e o( a )ort-a-e i( you die $e(ore t%e )ort-a-e is paid o((. Pre)iu)s are -enera**y *eve* t%rou-%out t%e ter) o( t%e po*i"y. T%e po*i"y is usua**y independent o( t%e )ort-a-e# )eanin- t%at t%e (inan"ia* institution -rantin- t%e )ort-a-e is separate (ro) t%e insuran"e "o)pany issuin- t%e po*i"y. T%e pro"eeds o( t%e po*i"y are paid to t%e $ene(i"iaries o( t%e po*i"y# not t%e )ort-a-e "o)pany. T%e $ene(i"iary is not re1uired to use t%e pro"eeds to pay o(( t%e )ort-a-e B. Annuity An annuity is a (or) o( insuran"e t%at ena$*es you to save (or your retire)ent. =asi"a**y# you -ive t%e insuran"e "o)pany )oney (or a "ertain period o( ti)e# and t%en a(ter you retire t%ey &i** pay you a "ertain a)ount o( )oney every year unti* you die. T%ere are )any di((erent (or)s o( annuities. . 4ost peop*e &%o $uy annuities are AA or o*der :5

:.5 PRO!I+E O! THE OR;ANISATIONS9 +I!E INSURANCE CORPORATION O! INDIA +i(e Insuran"e Corporation o( India &as (or)ed in Septe)$er 1>A? $y passin- +IC A"t# 1>A? in Indian par*ia)ent. On t%e nationa*i0ation o( t%e *i(e insuran"e in 1>A?# t%e pre)iu) ratin- o( Orienta* ;overn)ent se"urity *i(e Assuran"e "o)pany &ere adopted $y +IC &it% a redu"tion o( AH o( t%e ta$u*ar pre)iu) or Re. 1 per t%ousand su) assured# &%i"%ever &as *ess. T%is redu"tion &as )ade in anti"ipation o( e"ono)ies o( s"a*e t%at &ou*d e)er-e on t%e )er-er o( di((erent insurers in a sin-*e entity. +i(e Insuran"e Corporation O( India 8 t%ere are )any t%in-s to "onsider as +i(e Insuran"e Corporation o( India o((ers various insuran"e produ"ts &%i"% are very "o)p*ex# $ut under*yin- t%is "o)p*exity is a si)p*e (a"t. T%e $ui*din- $*o" s (or a** +i(e Insuran"e Corporation o( India are 213 invest)ent return7 253 )orta*ity experien"e7 and 2:3 expense )ana-e)ent7 (or your +i(e Insuran"e Corporation O( India ::

O$,e"tives o( +IC R Spread +i(e Insuran"e )u"% )ore &ide*y and in parti"u*ar to t%e rura* areas and to t%e so"ia**y and e"ono)i"a**y $a" &ard "*asses &it% a vie& to rea"%in- a** insura$*e persons in t%e "ountry and providin- t%e) ade1uate (inan"ia* "over a-ainst deat% at a reasona$*e "ost. R 4axi)i0e )o$i*i0ation o( peop*eLs savin-s $y )a in- insuran"e8*in ed savin-s ade1uate*y attra"tive. R =ear in )ind# in t%e invest)ent o( (unds# t%e pri)ary o$*i-ation to its po*i"y%o*ders# &%ose )oney it %o*ds in trust# &it%out *osin- si-%t o( t%e interest o( t%e "o))unity as a &%o*e7 t%e (unds to $e dep*oyed to t%e $est advanta-e o( t%e investors as &e** as t%e "o))unity as a &%o*e# eepin- in vie& nationa* priorities and o$*i-ations o( attra"tive return. R Condu"t $usiness &it% ut)ost e"ono)y and &it% t%e (u** rea*i0ation t%at t%e )oneys $e*on- to t%e po*i"y%o*ders. R R A"t as trustees o( t%e insured pu$*i" in t%eir individua* and "o**e"tive "apa"ities. 4eet t%e various *i(e insuran"e needs o( t%e "o))unity t%at &ou*d arise in t%e "%an-in- so"ia* and e"ono)i" environ)ent. R Invo*ve a** peop*e &or in- in t%e Corporation to t%e $est o( t%eir "apa$i*ity in (urt%erin- t%e interests o( t%e insured pu$*i" $y providin- e((i"ient servi"e &it% "ourtesy. Pro)ote a)on-st a** a-ents and e)p*oyees o( t%e Corporation a sense o( parti"ipation# pride and ,o$ satis(a"tion t%rou-% dis"%ar-e o( t%eir duties &it% dedi"ation to&ards a"%ieve)ent o( Corporate O$,e"tive :<

FISION SA trans8nationa**y "o)petitive (inan"ia* "on-*o)erate o( si-ni(i"an"e to so"ieties and Pride o( India . 4ISSION SExp*ore and en%an"e t%e 1ua*ity o( *i(e o( peop*e t%rou-% (inan"ia* se"urity $y providin- produ"ts and servi"es o( aspired attri$utes &it% "o)petitive returns# and $y renderin- resour"es (or e"ono)i" deve*op)ent/ Farious po*i"ies o((ered $y *i(e insuran"e "orporation o( India are 13 6%o*e +i(e S"%e)es R 6%o*e *i(e &it% pro(it R R R +i)ited pay)ent &%o*e *i(e Sin-*e Pre)iu) &%o*e *i(e Converti$*e &%o*e *i(e p*an 53 Endo&)ent S"%e)es R R R R R R R Endo&)ent p*an &it% pro(it +i)ited pay)ent Endo&)ent Geevan 4itra 2Dou$*e Cover3 Geevan 4itra 2Trip*e "over3 =%avis%ya Geevan Geevan Anand Ne& Gana Ra s%a :3 Ter) Assuran"e P*an R R R R An)o* Geevan 5 Year Ter) Assuran"e Coverti$*e Ter) Ne& =i)a Miran :A

<3 P*an (or needs o( C%i*dren R R R R R R R Mo)a* Geevan Geevan Su anya Geevan Mis%ore Geevan =a*ya Geevan C%aya 4arria-eIedu"ationa* annuity De((ered Endo&)ent A3 Periodi" 4oney =a" P*an R R R R R Geevan Sa)rid%i Geevan Re %a P*an 4oney =a" P*an Geevan Sura$%i Geevan $%arat%i ?3 4edi"a* $ene(its *in ed insuran"e R R As%a Deep II Geevan As%a II B3 !or $ene(its to Handi"apped R R Geevan Aad%ar Geevan Fis%&as E3 P*ans to "over %ousin- *oans R 4orta-a-e rede)ption >3 Goint *i(e p*an R Geevan sat%i :?

1C3 Invest)ent p*an R =i)a Nives% Trip*e "over 113 Capita* )ar et *in ed p*an R =i)a p*us. Des"ription o( t%e +IC Po*i"ies 6%o*e *i(e p*an9 6%o*e *i(e p*an are t%ose po*i"ies &%i"% *i(e assured %as to pay pre)iu)s ti** %is deat% t%e su) assured &i** $e paid to %is dependent -enera**y BC years is assu)ed as a )axi)u) a-e (or pay)ent o( pre)iu). Under t%e &%o*e *i(e pre)iu) are paya$*e t%rou-%out t%e *i(e ti)e o( t%e *i(e assured and t%is is t%e "%eapest (or) o( po*i"y. T%is p*an is idea**y suited to person &%o &ants )axi)u) provision (or %is (a)i*y at )ini)u) "ost. It a*so )eets t%e needs (or (unds re1uired (or (unera*# re*i-ious rites and "ere)onies to $e per(or)ed# tax *ia$i*ities i( any and expenses "onne"ted &it% t%e *ast si" ness and %ospita* "%ar-es et". Endo&)ent Assured P*an9 Endo&)ent p*ans are not "overin- t%e ris (or &%o*e *i(e o( t%e *i(e assured. T%e ter) o( ris "over under t%is p*an is as per t%e need o( *i(e assured. Endo&)ent assuran"e p*an are t%e )ost popu*ar. T%ey are e)inent*y Suited to )eet it one po*i"y t%e t&in de)ands o( o*d a-e provision and ris "over (or (a)i*y. T%e su) assured is paya$*e on )aturity or at deat% i( ear*ier. T%us an Endo&)ent Assuran"e Po*i"y provides (or retire)ent and a*so serves as a )eans o( (a)i*y provisions. Ter) Assuran"e Under t%e ter) assuran"e t%e ris "over is -enera**y (or spe"i(i" s%ort ter). Su"% ter) assuran"e is )axi)u) (or 5 years. ;enera**y t%is type o( assuran"e is use(u* (or air trave*in-. :B

4oney =a" P*ans Under t%is p*an spe"i(i" per"enta-e o( su) assured &i** $e $a" ed to t%e *i(e assured a(ter spe"i(i" period o( ti)e. T%is p*an is o( spe"ia* interest to person &%o $esides desirin- to provide (or t%eir o&n o*d a-e and (a)i*y (ee*s t%e need (or *u)p su) $ene(its at periodi"a* interva*s. Under t%ese po*i"ies part o( t%e su) assured is paid to t%e *i(e assured in insta**)ents at se*e"ted interva*s. C%i*dren P*an Under t%e "%i*dren p*ans t%e ris on t%e *i(e o( t%e "%i*dren &%ere "overed -enera**y t%is type o( p*ans are %e*p(u* in edu"ation and )arria-e o( t%e "%i*dren. Geevan =a*ya9 T%is p*an is desi-ned to ena$*e a parent to provide (or t%e "%i*d $y pay)ent o( a very *o& pre)iu) an Endo&)ent Assuran"e Po*i"y# t%e ris under &%i"% &i** "o))en"e (ro) t%e vestin- date. In addition# Pre)iu) $ene(it and in"o)e $ene(it are in"*uded as additiona* $ene(it $y pay)ent o( appropriate additiona* pre)iu) durin- t%e de(er)ent period. T%is po*i"y s%a** $e "an"e**ed in "ase t%e *i(e assured s%a** die $e(ore t%e de(erred dates and in su"% an event provided t%e po*i"y is t%en in (u** (or"e in (or a redu"ed "as% option. 4arria-e Endo&)entI edu"ationa* annua* p*an Every (at%er desires to see t%at %is "%i*dren are &e** sett*ed in *i(e t%rou-% sound edu"ation# *eadin- to -ood ,o$s and %appy )arria-e. T%ese needs arise at a-es &%i"% "an $e approxi)ate*y anti"ipated. Say &%en t%e "%i*dren are $et&een 1E to 5A year o( a-e. T%is p*an provides (or a su) assured to eep aside to )eet )arria-e edu"ationa* expenses o( "%i*dren. Under t%is p*an t%e S A a*on- &it% t%e vested $onus s%a** $e paya$*e at t%e end o( t%e se*e"ted ter) eit%er is *u)p su) or in ten %a*( year*y insta**)ent# at t%e option o( t%e *i(e assured no)inee $ene(i"iary. Geevan 4itra T%is p*an provides additiona* insuran"e "over e1ua* to t%e su) assured in t%e even o( deat% durin- t%e ter) o( po*i"y so t%at t%e tota* insuran"e "over in t%e event o( deat% is t&i"e t%e $asi" su) assured. i.e. T%e $asi" su) assured is dou$*ed and t%e a""rued $onus is a*so paid. :E

IN; FYSYA +I!E INSURANCE IN; Fysya +i(e Insuran"e Co)pany Private +i)ited entered t%e private *i(e insuran"e industry in India in Septe)$er 5CC1# and in a s%ort span o( 1E )ont%s %as esta$*is%ed itse*( as a distin"tive *i(e insuran"e $rand &it% an innovative# attra"tive and "usto)er (riend*y produ"t port(o*io and a pro(essiona* advisor (or"e. It a*so distri$utes produ"ts in "*ose "ooperation &it% its sister "o)pany IN; Fysya =an t%rou-% =an assuran"e. Current*y# it %as over :CCC advisors &or in- (ro) 55 *o"ations a"ross t%e "ountry and over :CC e)p*oyees. IN; Fysya +i(e Insuran"e Co)pany is %ead1uartered at =an-a*ore and %as esta$*is%ed a stron- presen"e in t%e "ities o( De*%i# 4u)$ai# Mo* ata# Hydera$ad and C%ennai. In addition IN; Fysya +i(e operates in Fi0a-# Fi,ay&ada# 4an-a*ore# 4ysore# Pune# Na-pur# C%andi-ar%# +ud%iana and Gaipur. IN; Fysya +i(e %as pioneered produ"t innovations in t%e Indian *i(e insuran"e )ar et &it% "usto)er8oriented "as% $onus endo&)ent and )oney $a" produ"ts. 2Reassurin- +i(e and 4axi)isin+i(e3# t%e (irst anti"ipated &%o*e *i(e produ"t 2!u*(i**in- +i(e3 and t%e (irst Ter)ICriti"a* I**ness "o)$ination produ"t 2Con1uerin- +i(e3. Con1uerin- +i(e is an innovative ter) and "riti"a* i**ness produ"t t%at %as $een *aun"%ed re"ent*y. Con1uerin- +i(e provides a((orda$*e ter) "over and "riti"a* i**ness "overa-e (or 1C "riti"a* i**nesses o( upto ACH o( t%e Su) Assured. IN; Fysya +i(e de"*ared a $onus in Septe)$er 5CC5 o( AH 2"as% $onus 8 paya$*e i))ediate*y3 and <H 2reversionary $onus paya$*e at t%e end o( t%e ter)3. :>

T%e "o)pany %as over 5A#CCC "usto)ers at t%e end o( 5CC5 and %as a"%ieved a (irst pre)iu) in"o)e o( Rs. 1B "rores in 5CC5. IN; Fysya +i(e Insuran"e is a ,oint venture $et&een IN; Insuran"e Internationa* =F a part o( IN; ;roup# t%e &or*dLs *ar-est *i(e insuran"e "o)pany 2!ortune ;*o$a* ACC# 5CC53# IN; Fysya =an # &it% 1.A )i**ion "usto)ers and over <CC out*ets and ;4R Te"%no*o-ies and Industries +i)ited# part o( ;4R ;roup a*so $ased in =an-a*ore and invo*ved in t%e (ie*d o( po&er -eneration# in(rastru"tura* deve*op)ent and severa* ot%er $usinesses. IN; Fysya +i(e %as a paid up "apita* o( Rs.1<C "rores and an aut%orised "apita* o( Rs. 5CC "rores. +i(e insuran"e produ"ts o((ered $y t%e "o)pany are9 13 Prote"tion p*an R R Criti"a* i**ness p*an Endo&)ent p*an 53 Savin-s p*an R R R Endo&)ent p*an C%i*d prote"tion p*an 4oney $a" p*an

:3 Invest)ent P*an R 6%o*e *i(e p*an R +i)ited pay)ent endo&)ent p*an R Anti"ipated &%o*e *i(e p*an <C

TATA8AI; +i(e Insuran"e Tata8AI; +i(e Insuran"e Co)pany is a ,oint venture $et&een t%e Tata ;roup and A)eri"an Internationa* ;roup In" 2AI;3# t%e *eadinUS8$ased internationa* insuran"e and (inan"ia* servi"es or-ani0ation and t%e *ar-est under&riter o( "o))er"ia* and industria* insuran"e in A)eri"a. Its )e)$er "o)panies &rite a &ide ran-e o( "o))er"ia*# persona* and *i(e insuran"e produ"ts t%rou-% a variety o( distri$ution "%anne*s in approxi)ate*y 1:C "ountries and ,urisdi"tions t%rou-%out t%e &or*d. AI;'s -*o$a* $usinesses a*so in"*ude (inan"ia* servi"es and asset )ana-e)ent# in"*udin- air"ra(t *easin-# (inan"ia* produ"ts# tradin- and )ar et )a in-# "onsu)er (inan"e# institutiona*# retai* and dire"t invest)ent (und asset )ana-e)ent# rea* estate invest)ent )ana-e)ent# and retire)ent savin-s produ"ts. TATA %o*ds B?H s%ares and AI; %o*ds 5<H s%ares in t%e tota* s%are "apita* o( TATA AI;. Tata AI; +i(e Insuran"e Co)pany +td. STata AI; +i(eS o((ers a $road array o( *i(e insuran"e produ"ts to individua*s# asso"iations and $usinesses o( a** si0es# &it% a &ide variety o( additiona* "overa-e to ensure our "usto)ers "an (ind an insuran"e produ"t to )eet t%eir needs. Tata8AI; +i(e Insuran"e and Tata8AI; ;enera* Insuran"e# $ot% ,oint ventures $et&een t%e Tata ;roup and A)eri"an Internationa* ;roup 2AI;3# provide *i(e and -enera* insuran"e po*i"ies and so*utions to "o)panies# institutions and or-ani0ations a"ross India. It is *i"ensed to operation on 15t% !e$ruary 5CC1. TATA8AI; *i(e is spread over5E $ran"% o((i"es and :> trainino((i"es a"ross t%e "ountry. Tata8AI; +i(e o((ers a $road array o( *i(e insuran"e produ"ts and so*utions to "orporate and ot%er or-ani0ations. T%ese produ"ts and so*utions %ave various va*ueadded $ene(its and options t%at de*iver (*exi$i*ity and "%oi"e to t%e "o)panyLs "*ients. Tata AI; +i(e %as "o)p*eted its <t% year o( operations and re-istered a Tota* Pre)iu) o( Rs. <>B Crores (or t%e period Apri* 5CC< 8 4ar"% 5CCA. <1

T%e "o)pany %as so)e 5C *i(e insuran"e produ"ts &it% over 5AC produ"t "o)$inations# in"*udin- endo&)ent to ter)# pension to -roup *i(e and "redit *i(e# )oney $a" to &%o*e *i(e p*ans# et". Tata8AI; +i(e uses di((erent distri$ution "%anne*s# in"*udin- dire"t )ar etin-# $ro era-e and $an" assuran"e# to servi"e "*ient -roups in 1> Indian "ities. Tata8AI; +i(e is t%e (irst private insurer in India to o((er -roup retire)ent s"%e)es. Additiona**y# t%e "o)panyLs -roup )ana-e)ent division (o"uses on providin- e)p*oyee $ene(it so*utions. PRODUCTS T%e produ"t ran-e o( TATA8AI; +i(e is &ide8spread a"ross di((erent se-)ents. So)e o( t%e produ"ts are )entioned $e*o&. 4a%a *i(e Invest Assure Hea*t% Prote"tor Star Mid S%u$% +i(e Nirvana Nirvana P*us 4oney Saver P*an Hea*t% !irst Assure ;o*den +i(e Assure 1C# 5C# :C years T Se"urity and ;ro&t% Assure Edu"ate at 1E# 51 Assure Career =ui*der P*an at 5B Assure ;o*den Years P*an Assure 51 4oney Saver P*an Assure 1IAI1CI1AI5CI5A yearsI to a-e *i(e*ines TROP <5

HD!C STANDARD +I!E INSURANCE T%e Partners%ip9 HD!C and Standard +i(e (irst "a)e to-et%er (or a possi$*e ,oint venture# to enter t%e +i(e Insuran"e )ar et# in Ganuary 1>>A. It &as "*ear (ro) t%e outset t%at $ot% "o)panies s%ared si)i*ar va*ues and $e*ie(s and a stronre*ations%ip 1ui" *y (or)ed. In O"to$er 1>>A t%e "o)panies si-ned a : year ,oint venture a-ree)ent. Around t%is ti)e Standard +i(e pur"%ased a AH sta e in HD!C# (urt%er stren-t%enin- t%e re*ations%ip. T%e next t%ree years &ere (i**ed &it% un"ertainty# due to "%an-es in -overn)ent and on-oin- de*ays in -ettin- t%e IRDA 2Insuran"e Re-u*atory and Deve*op)ent aut%ority3 A"t passed in par*ia)ent. Despite t%is $ot% "o)panies re)ained (ir)*y "o))itted to t%e venture. In O"to$er 1>>E# t%e ,oint venture a-ree)ent &as rene&ed and additiona* resour"e )ade avai*a$*e. Around t%is ti)e Standard +i(e pur"%ased 5H o( In(rastru"ture Deve*op)ent !inan"e Co)pany +td. 2ID!C3. Standard +i(e a*so started to use t%e servi"es o( t%e HD!C Treasury depart)ent to advise t%e) upon t%eir invest)ents in India. To&ards t%e end o( 1>>># t%e openin- o( t%e )ar et *oo ed very pro)isin- and $ot% "o)panies a-reed t%e ti)e &as ri-%t to )ove t%e operation to t%e next *eve*. T%ere(ore# in Ganuary 5CCC an expert tea) (ro) t%e UM ,oined a %and pi" ed tea) (ro) HD!C to (or) t%e "ore pro,e"t tea)# $ased in 4u)$ai. Around t%is ti)e Standard +i(e pur"%ased a (urt%er AH sta e in HD!C and a AH sta e in HD!C =an . In a (urt%er deve*op)ent Standard +i(e a-reed to parti"ipate in t%e Asset 4ana-e)ent Co)pany pro)oted $y HD!C to enter t%e )utua* (und )ar et. T%e 4utua* !und &as *aun"%ed on 5Ct% Gu*y 5CCC <:

In"orporation o( HD!C Standard +i(e Insuran"e Co)pany +i)ited9 T%e "o)pany &as in"orporated on 1<t% Au-ust 5CCC under t%e na)e o( HD!C Standard +i(e Insuran"e Co)pany +i)ited. Co)panies a)$ition (ro) as (ar $a" as O"to$er 1>>A# &as to $e t%e (irst private "o)pany to re8enter t%e *i(e insuran"e )ar et in India. On t%e 5:rd o( O"to$er 5CCC# t%is a)$ition &as rea*i0ed &%en HD!C Standard +i(e &as t%e on*y *i(e "o)pany to $e -ranted a "erti(i"ate o( re-istration. HD!C are t%e )ain s%are%o*ders in HD!C Standard +i(e# &it% E1.<H# &%i*e Standard +i(e o&ns 1E.?H. ;iven Standard +i(eLs existin- invest)ent in t%e HD!C ;roup# t%is is t%e )axi)u) invest)ent a**o&ed under "urrent re-u*ations. HD!C and Standard +i(e %ave a *onand "*ose re*ations%ip $ui*t upon s%ared va*ues and trust. T%e a)$ition o( HD!C Standard +i(e is to )irror t%e su""ess o( t%e parent "o)panies and $e t%e yardsti" $y &%i"% a** ot%er insuran"e "o)panyLs in India are )easured. Produ"ts o((ered $y t%e "o)pany are9 INDIFIDUA+ P+AN R R R R R R R 6it% Pro(it Endo&)ent Assuran"e 6it% Pro(its 4oney =a" Sin-*e Pre)iu) 6%o*e o( +i(e Ter) assuran"e P*an +oan Cover Ter) Assuran"e Persona* Pension P*an C%i*dren's P*an ;ROUP P+ANS R R ;roup Ter) Insuran"e Deve*op)ent Insuran"e P*an <<

ICICI PRUDENTIA+ +I!E INSURANCE CO4PANY ICICI Prudentia* +i(e Insuran"e Co)pany is a ,oint venture $et&een ICICI =an # a pre)ier (inan"ia* po&er%ouse# and prudentia* p*"# a *eadin- internationa* (inan"ia* servi"es -roup %ead1uartered in t%e United Min-do). ICICI Prudentia* &as a)on-st t%e (irst private se"tor insuran"e "o)panies to $e-in operations in De"e)$er 5CCC a(ter re"eivin- approva* (ro) Insuran"e Re-u*atory Deve*op)ent Aut%ority 2IRDA3. ICICI Prudentia*'s e1uity $ase stands at Rs. >5A "rore &it% ICICI =an and Prudentia* p*" %o*din- B<H and 5?H sta e respe"tive*y. In t%e 1uarter ended Gune :C# 5CCA # t%e "o)pany -arnered Rs ::A "rore o( ne& $usiness pre)iu) (or a tota* su) assured o( Rs 5#?1> "rore and &rote 111#A55 po*i"ies. !or t%e past (our years# ICICI Prudentia* %as retained its position as t%e No. 1 private *i(e insurer in t%e "ountry# &it% a &ide ran-e o( (*exi$*e produ"ts t%at )eet t%e needs o( t%e Indian "usto)er at every step in *i(e. Produ"ts o((ered $y ICICI Prudentia* are 1. 13 53 :3 <3 Savin-s P*an S)art 5. R Prote"tion p*an +i(e ;uard <A id +i(e Ti)e Save Kn' Prote"t Cas% =a

R R :. R R R R <. R R A. R R R Extra Prote"tion T%rou-% Riders Retire)ent P*ans !orever +i(e +i(e *in pension +i(e ti)e pension Reassure Invest)ent P*ans Assure Invest +i(e +in ;roup p*ans ;roup Superannuation ;roup ;ratuity ;roup Ter) Assuran"e <?

O4 MOTAM 4AHINDRA +I!E INSURANCE CO4PANY Esta$*is%ed in 1>EA as Mota Capita* 4ana-e)ent !inan"e pro)oted $y Uday Mota t%e "o)pany %as "o)e a *on- &ay sin"e its entry into "orporate (inan"e. It %as da$$*ed in *easin-# auto (inan"e# %ire pur"%ase# invest)ent $an in-# "onsu)er (inan"e# $ro in- et". T%e "o)pany -ot its na)e Mota 4a%indra as industria*ists Haris% 4a%indra and Anand 4a%indra pi" ed a sta e in t%e "o)pany. Mota 4a%indra is today one o( IndiaLs *eadin- !inan"ia* Institutions O*d 4utua* p*" is an internationa* (inan"ia* servi"es -roup $ased in +ondon &it% expandin- operations in *i(e assuran"e# asset )ana-e)ent# $an in- and -enera* insuran"e. O*d 4utua* is *isted on t%e +ondon Sto" Ex"%an-e 2&%ere it is in"*uded on t%e !TSE 1CC Index3 and a*so on t%e Sout% A(ri"an# Na)i$ian# 4a*a&i and Ji)$a$&e sto" ex"%an-es. It %as 1A? years o( experien"e in t%e *i(e insuran"e $usiness. T%e Produ"ts o((ered $y t%e Co)pany are Individua* P*an R R R R R R R R R Mota Endo&)ent P*an Mota Ter) P*an Mota Retire)ent In"o)e P*an Mota C%i*d Advanta-e P*an Mota Pre(erred Ter) P*an Mota Capita* 4u*tip*ier P*an Mota Sa(e Invest)ent P*an Riders Ex"*usions Under Riders <B

;roup P*an Mota Ter) ;roup p*an Mota ;ratuity ;roup p*an Mota ;roup p*an Riders Ex"*usions Under Riders Rura* Mota <E ;ra)ina =i)a Yo,ana

Credit Ter)

4ET +I!E INSURANCE CO4PANY 4et+i(e !or a*)ost 1:B years# 4etropo*itan +i(e Insuran"e Co)pany %as $een insurin- t%e *ives o( t%e peop*e &%o depend on t%e). T%eir su""ess is $ased on t%eir *on%istory o( so"ia* responsi$i*ity# stron- *eaders%ip# sound invest)ents# and innovative produ"ts and servi"es. 4et+i(e =e-ins T%e ori-ins o( 4etropo*itan +i(e Insuran"e Co)pany 24et+i(e3 -o $a" to 1E?:# &%en a -roup o( Ne& Yor City $usiness)en raised U1CC#CCC to (ound t%e Nationa* Union +i(e and He*pin- and Hea*in- Peop*e In 1>C># 4et+i(e Fi"e President Ha*ey !is e announ"ed t%at Sinsuran"e# not )ere*y as a $usiness proposition# $ut as a so"ia* pro-ra)S &ou*d $e t%e (uture po*i"y o( t%e "o)pany Supportin- Country and Co))unity Over t%e years# 4et+i(e %as )ade a di((eren"e $y supportin- ur$an rene&a* pro,e"ts and "o))unity (inan"in-. T%e "o)panyLs so"ia* "o))it)ent and its "o))it)ent to t%e se"urity o( its po*i"y%o*ders %ave proven to $e -ood $usiness. 4et+i(e Today In 5CC1 4et+i(e &as t%e (irst insuran"e "o)pany to esta$*is% a (inan"ia* %o*din"o)pany &it% a nationa**y "%artered $an . Produ"ts O((ered $y t%e "o)pany are 13 6%o*e +i(e R R R 4et 1CC Non par 4et 1CC ;o*d par 4et 1CC P*atinu) par <>

53 Endo&)ent R R R R 4et ;o*d par 4et P*atinu) par 4et Gunior par 4et ,unior Non par :3 4oney =a" R R 4et Su % 4et Gunior 4=

<3 Ter) R R R 4et 4orta-a-e Prote"tor 4et Riders A""identa* deat% AC

=IR+A SUN +I!E INSURANCE CO4ANY +I4ITED =ir*a Sun +i(e !inan"ia* Servi"es o((ers a ran-e o( (inan"ia* servi"es (or resident Indians and Non Resident Indians. =rou-%t to-et%er $y t&o *ar-e# po&er(u* and reputed $usiness %ouses# t%e Aditya =ir*a ;roup and Sun +i(e !inan"ia* # it is our ai) to o((er diverse and top 1ua*ity (inan"ia* servi"es to "usto)ers. T%e 4utua* !und and Insuran"e "o)panies provide &ea*t% )ana-e)ent and prote"tion produ"ts to "usto)ers &%i*e t%e Distri$ution and Se"urities "o)panies provide $ro era-e and tradin- servi"es (or invest)ent in e1uities# de$t se"urities# (ixed deposits# et". Insuran"e is not a$out so)et%in- -oin- &ron-. ItLs o(ten a$out t%in-s -oinri-%t. One o( t%e &onders o( %u)an nature is t%at &e never $e*ieve anyt%in- "an a"tua**y -o &ron-. Sure*y# *i(e %as its s%are o( i(s. At =ir*a Sun +i(e %o&ever# t%ey $e*ieve it %as its e1ua**y p*easant s%are o( $uts as &e**. =ir*a Sun +i(e stand "o))itted to %e*p you rea*i0e t%ose %appy )o)ents &%i"% )a e a *i(e. =e it *ivin- t%e sa)e *i(esty*e in your post retire)ent days or providin- a se"ure (uture (or your *oved ones# in "ase so)et%in- %appens to you. T%e *i(e insuran"e produ"ts o((ered $y t%e "o)pany are Individua* *i(e R R R R R R Pre)iu) =a" Ter) P*an !*exi Se"ure +i(e Retire)ent P*an Sin-*e Pre)iu) =ond =ir*a Sun +i(e Ter) P*an !*exi +i(e +ine 6%o*e +i(e P*an !*exi Cas% !*o& 4oney $a" P*an ;roup +i(e R R R Pro ;roup Ter) Insuran"e ;roup Superannuation P*an ;roup ;ratuity P*an A1

4AN NE6 YORM +I!E INSURANCE CO4PANY +TD. 4ax Ne& Yor +i(e today e)er-ed as t%e "ountryLs *eadin- private *i(e insuran"e "o)pany %avin- re"orded a su) assured o( over Rs 51CC "rore (or t%e year endin4ar"% :1# 5CC5. T%is &as t%e (irst (u** year o( operations (or 4ax Ne& Yor +i(e. T%e "o)pany %as so*d over ?<#CCC po*i"ies in t%e *ast (inan"ia* year. T%e tota* annua*i0ed (irst year pre)iu) (or t%e (inan"ia* year &as over Rs <: "rore &it% t%e !irst Year Pre)iu) In"o)e a)ountin- to over Rs :E "rore. T%is %as ex"eeded t%e expe"tations o( t%e "o)pany and t%e pro,e"tions as su$)itted to IRDA. Over BC per "ent o( t%e pre)ia in"o)e &as (ro) prote"tion8oriented 6%o*e +i(e Po*i"ies# &%i"% rein(or"es t%e "o)panyLs (o"us on providin- t%e true va*ue o( *i(e insuran"e to t%e "usto)er ;iven t%e $etter8t%an8expe"ted per(or)an"e o( t%e "o)pany# t%e s%are%o*ders %ave in"reased t%eir invest)ent in t%e "o)pany to Rs 5AC "rore &it% an aut%ori0ed s%are "apita* to Rs :CC "rore )a in- 4ax Ne& Yor +i(e Insuran"e Co)pany a)ont%e %i-%est "apita*i0ed *i(e insuran"e "o)panies in India 4ax Ne& Yor +i(e a*so )et its "o))it)ent (or t%e rura* and so"ia* se"tors. T%e "o)pany %as 11 o((i"es# over 1>CC A-ent Advisors and over <>C e)p*oyees. 4ax Ne& Yor +i(e $e*ieves in de*iverin- top va*ue to a** its sta e%o*ders. As part o( t%e $est pra"ti"es adopted# t%e Co)pany instituted satis(a"tion surveyLs "ondu"ted $y independent a-en"ies to )easure t%e satis(a"tion *eve*s o( its "usto)ers# a-ents and e)p*oyees. 4ax Ne& Yor +i(e %as "*ear*y e)er-ed as de*iverin- top va*ue a"ross a** t%ese sta e%o*ders 4ax Ne& Yor +i(e o((ers a suite o( (*exi$*e produ"ts. It %as ei-%t $ase produ"ts and nine options @ riders t%at "an $e "usto)i0ed to over 5AC "o)$inations ena$*in- "usto)ers to "%oose t%e po*i"y t%at $est (its t%eir need A5

T%e produ"ts are T 6%o*e +i(e Parti"ipatin- d Converti$*e 6%o*e +i(e8Non8 Parti"ipatin-# C%i*dren Endo&)ent at a-e 1E# C%i*dren Endo&)ent at a-e 5<# 5C8 year Endo&)ent Parti"ipatin- Po*i"y# Endo&)ent to a-e ?C# !ive8year Ter) Rene&a$*e an# Easy Ter) A:

=AGAG A++IANJ +I!E INSURANCE CO4PANY +I4ITED =a,a, A**ian0 *i(e Insuran"e Co)pany +i)ited is a ,oint venture $et&een =a,a, Auto +i)ited and A**ian0 A; o( ;er)any. =ot% en,oy a reputation o( expertise# sta$i*ity and stren-t%. =a,a, A**ian0 ;enera* Insuran"e re"eived t%e Insuran"e Re-u*atory and Deve*op)ent Aut%ority 2IRDA3 "erti(i"ate o( Re-istration 2R:3 on 4ay 5nd# 5CC1 to "ondu"t ;enera* Insuran"e $usiness 2in"*udin- Hea*t% Insuran"e $usiness3 in India. T%e Co)pany %as an aut%ori0ed and paid up "apita* o( Rs 11C "rores. =a,a, Auto %o*ds B<H and A**ian0# A;# %o*ds t%e re)ainin- 5?H ;er)any. In its (irst year o( operations# t%e "o)pany %as a"1uired t%e No. 1 status a)ont%e private non8*i(e insurers. As on :1st 4ar"% 5CC:# =a,a, A**ian0 ;enera* Insuran"e )aintained its *eaders%ip position $y -arnerin- a pre)iu) in"o)e o( Rs.:CC Crores. =a,a, A**ian0 a*so $e"a)e one o( t%e (e& "o)panies to )a e a pro(it in its (irst (u** year o( operations. =a,a, A**ian0 )ade a pro(it a(ter tax o( Rs.>.? "rores =a,a, A**ian0 today %as a net&or o( <5 o((i"es spread a"ross t%e *en-t% and $readt% o( t%e "ountry. !ro) Surat to Si*i-uri and Ga))u to T%iruvanant%apura)# a** t%e o((i"es are inter"onne"ted &it% t%e Head O((i"e at Pune. In t%e (irst %a*( o( t%e "urrent (inan"ia* year# 5CC<8CA# =a,a, A**ian0 -arnered a pre)iu) in"o)e o( Rs. <CA "rores# a"%ievin- a -ro&t% o( E<H and re-istered a A5H -ro&t% in Net pro(its o( Rs.5C Crores over t%e *ast year (or t%e sa)e period. In t%e (inan"ia* year 5CC:8C<# t%e pre)iu) earned &as Rs.<EC Crores# &%i"% is a ,u)p o( ?CH and t%e pro(it 0oo)ed $y 15AH to Rs. 51.? Crores A<

CHAPTER < ANA+YSIS AND INTERPRETATION AA

<.1 INTRODUCTION TO ANA+YSIS9 In order to extra"t )eanin-(u* in(or)ation (ro) t%e data t%e). T%e ana*ysis "an $e "ondu"ted $y usin- si)p*e statisti"a* too*s *i e per"enta-es# avera-es and )easures o( dispersion. A*ternative*y t%e "o**e"ted data )ay $e ana*y0ed# t%e data ana*ysis is "arried out. T%e data are (irst edited# "oded and ta$u*ated (or ana*y0in- $y usin- dia-ra)s# -rap%s# "%arts# pi"tures et". Data ana*ysis is t%e pro"ess o( p*annin- t%e data in an ordered (or)# "o)$inin- t%e) &it% t%e existin- in(or)ation and extra"tin- (ro) t%e). Interpretation is t%e pro"ess o( dra&in- "on"*usions (ro) t%e -at%ered data in t%e study. In t%is resear"% t%e resear"%er %as ana*y0ed t%e data usinper"enta-es and -rap%s. <.5 DATA ANA+YSIS TOO+S USED9 In t%is resear"% t%e data ana*ysis too*s used are per"enta-es and -rap%s. T%e various attri$utes &ere ana*y0ed separate*y and t%e i)portan"e to ea"% &as "a*"u*ated on t%e $asis o( t%e per"enta-e. T%e ran %avin- t%e )axi)u) per"enta-e &as ta en to $e pre(erred i)portan"e to t%e parti"u*ar attri$ute. A(ter *oo in- at ea"% attri$ute separate*y# a** t%e attri$utes &ere "onsidered to-et%er to deve*op a )ap on t%e )ost pre(erred ran (or a** t%e attri$utes. A?

TA=+E 1 A;E O! RESPONDENTS S+.NO A;E IN YEARS NU4=ER O! RESPONDENTS 5< PERCENTA;E O! RESPONDENTS <E H 1. 1> T 5E 5. 5> T :E 1: 5? H :. :> T <E ? 15 H <. <> T AE ? 15 H A. A> T ?E C CH ?. ?> T BE 1 5H TOTA+ AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 T%e a$ove ta$*e "*assi(ied t%e respondents a""ordin- to t%eir a-e -roup. T%e )a,ority o( t%e respondents $e*on- to t%e a-e -roup 1> to 5E years

&it% <EH and t%e se"ond a-e -roup is 5> to :E years &it% 5?H# (o**o&ed $y :> to <E years and <> to AE years &it% 15H ea"%. AB

;RAPH 1 A;E O! RESPONDENTS ?CH <EH ACH <CH :CH 5?H 5CH 15H 1CH CH CH 1> 8 5E YRS 5> 8 :E YRS :> 8 <E YRS <> 8 AE YRS A> 8 ?E YRS ?> 8 BE YRS 5H 15H AE

TA=+E 5 DI!!ERENCIATION O! THE RESPONDENTS INTO 4A+E AND !E4A+E TYPES O! RESPONDENTS NU4=ER O! RESPONDENTS PERCENTA;E O! RESPONDENTS 4A+E RESPONDENTS :< ?EH !E4A+E RESPONDENTS 1? :5H TOTA+ AC 1CC H SOURCE9 8 SURFEY DATA IN!ERENCE9 T%is ta$*e %e*ps us to understand t%at t%ere are )ore nu)$er o( )a*e "onsu)ers &it% ?EH )ar et s%are t%an t%e (e)a*e "onsu)ers &it% :5H 4ar et s%are. A>

;RAPH 5 DI!!ERENCIATION O! THE RESPONDENTS INTO 4A+E AND !E4A+E ECH BCH ?CH ACH <CH :5H :CH 5CH 1CH CH ?EH TS D EN R ES PO N 4 A +E !E 4 A +E R ES PO N D EN TS ?C

TA=+E : DI!!ERENCIATION O! RESPONDENTS =ASED ON THEIR OCCUPATION S+.NO OCCUPATION NU4=ER O! RESPONDENTS PERCENTA;E O! RESPONDENTS <H 1. STUDENTS 5 5. ;OFERN4ENT E4P+OYEES PRIFATE E4P+OYEES HOUSE 6IFES 5C <C H :. 5< <E H <. 5 <H A. RETIRED PERSONS TOTA+ 5 <H AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 It "ou*d $e in(erred t%at )a,ority o( "onsu)ers o( *i(e insuran"e po*i"ies are private e)p*oyees &it% <EH and ;overn)ent e)p*oyees &it% <CH# (o**o&ed $y students# %ouse &ives and retired persons &it% < H ea"%. ?1

;RAPH : DI!!ERENCIATION O! RESPONDENTS =ASED ON THEIR OCCUPATION ?CH ACH <CH <CH <EH :CH 5CH 1CH <H CH ES YE ES EN TS ES 6 IF SO N ED PE R ET IR R YE S <H <H E4 P+ O D E4 P+ U O ST T 4 EN N ; O FE PR R IF A TE ?5 H O U SE

TA=+E < TA=+E SHO6IN; INCO4E ;ROUP O! RESPONDENTS S+.NO INCO4E ;ROUP NU4=ER O! RESPONDENTS PERCENTA;E O! RESPONDENTS 1C H 1. +ESS THAN ACCC ACC1 T 1C#CCC A 5. 1? :5 H :. 1CCC1 T 1ACCC 1B :< H <. 1ACC1 T 5CCCC E 1? H A. 5CCC1 T 5ACCC 5 <H ?. ;REATER THAN :CCCC NI+ 1 5H B. 1 5H TOTA+

AC 1CC H SOURCE9 8 SURFEY DATA IN!ERENCE9 T%e )a,ority o( do)inant in"o)e -roup %avin- *i(e insuran"e po*i"ies $e*on- to t%e in"o)e -roup o( 1C#CC1 to 1A#CCC# &%i"% is )idd*e "*ass -roup. !o**o&ed $y t%e in"o)e -roup o( A#CC1 to 1C#CCC. ?:

;RAPH < ;RAPH SHO6IN; INCO4E ;ROUP O! RESPONDENTS <CH :AH :CH 5AH 5CH 1AH 1CH AH CH VACCC ACC1 1CCC 1CCC1 8 1ACC1 8 5CCC1 8 W5ACCC 1ACCC 5CCCC 5ACCC NI+ ?<

TA=+E A DI!!ERENCIATION O! RESPONDENTS ACCORDIN; TO THE ASSETS O6NED S+.NO ASSETS NU4=ER O! RESPONDENTS PERCENTA;E O! RESPONDENTS 1. HOUSE 1> :E H 5. T6O 6HEE+ER CAR 5A AC H :. ? 15 H TOTA+ AC 1CC H SOURCE9 8 SURFEY DATA IN!ERENCE9 T%is ta$*e %e*ps us to no& t%at )ost o( "onsu)ers &it% *i(e insuran"e po*i"ies o&n t&o &%ee*ers &it% ACH# :EH o( "onsu)ers o&n %ouse and15H o( t%e "onsu)ers o&n "ar. ?A

;RAPH A DI!!ERENCIATION O! RESPONDENTS ACCORDIN; TO THE ASSETS O6NED ?CH ACH ACH <CH :EH :CH 5CH 15H 1CH CH HOUSE T6O 6HEE+ER CAR ??

TA=+E ? 4ARMET SHARE O! DI!!ERENT +I!E INSURANCE CO4PANIES CO4PANIES NU4=ER O! RESPONDENTS :> PERCENTA;E O! RESPONDENTS BE H +IC TATA AI; 1 5H HD!C : ?H ICICI < EH 4AN NE6YORM 1 5H MOTAM 4AHINDRA 1 5H A++IANCE =AGAG 1 5H SOURCE9 8 SURFEY DATA IN!ERENCE9 T%is ta$*e %e*ps us to understand t%e )ar et s%are o( di((erent *i(e insuran"e "o)panies. +IC %as a )a,or s%are o( BE H# (o**o&ed $y ICICI Prudentia* &it% EH )ar et s%are# (o**o&ed $y HD!C Standard +i(e &it% ?H )ar et s%are. ?B

;RAPH ? 4ARMET SHARE O! DI!!ERENT +I!E INSURANCE CO4PANIES >CH ECH BCH ?CH ACH <CH :CH 5CH 1CH CH 5H ?H EH 5H 5H 5H BEH A I; IC IC I +I C R M R A !C H D N E6 YO A H IN D TA TA N M O ?E A ++ IA 4 A TA M N C E 4 = A GA G

TA=+E B TA=+E SHO6IN; ATTRI=UTES !RO4 RESPONDENTS S+.NO ATTRI=UTE RESPONDENTS RANM 1. RETURN ON INFEST4ENT CO4PANY REPUTATION PRE4IU4 OUT!+O6 SERFICE OUA+ITY PRODUCT OUA+ITY 1B 1 5. 1: 5 :. 1C : <. B < A. : A SOURCE 98 SURFEY DATA IN!ERENCE9 T%is ta$*e s%o&s t%e stren-t%s and &ea nesses o( t%e "o)pany# and &%at are t%e i)portant "riteria or attri$utes on &%i"% de"ision )a in- is done. !ro) t%is ta$*e &e "an in(er t%at "onsu)ers -ive )ore i)portan"e (or Return on invest)ent# se"ond*y t%ey pre(er "o)pany reputation# and t%en pre)iu) out(*o& (o**o&ed $y servi"e 1ua*ity and produ"t 1ua*ity. ?>

R ET U RN O N IN 1C 15 1< 1? 1E C 5 < ? E C O 4 PA T4 EN T 1B FE S NY R EP U TA TI O 1: PR E4 IU 4 N O U T! +O 6 SE R FI C E O U A+ I TY ;RAPH B ;RAPH SHO6IN; ATTRI=UTES !RO4 RESPONDENTS BC PR O DU CT O U A+ IT Y B : 1C

TA=+E E !ACTORS 6HICH IN!+UENCED TO SE+ECT +I!E INSURANCE CO4PANY S+.NO !ACTORS RESPONDENTS RANM 1. PERSONA+ INTEREST 5A 1 5. !A4I+Y 11 5 :. !RIENDS ? : <. A;ENTS A < A. ADFERTISE4ENT 5 A ?. OTHERS 1 ? SOURCE 98 SURFEY DATA IN!ERENCE9 T%is ta$*e is %e*p(u* in no&in- &%i"% )edia is $est suita$*e (or pro)otin- a *i(e insuran"e "o)pany. It "an $e seen t%at persona* (a"tor

in(*uen"es a "onsu)ers to se*e"t a *i(e insuran"e "o)pany# (o**o&ed $y (a)i*y# (riends # a-ents and advertise)ents. B1

;RAPH E !ACTORS 6HICH IN!+UENCED TO SE+ECT A +I!E INSURANCE CO4PANY :C 5A 5A 5C 1A 11 1C ? A A 5 1 C I+ Y EN TS ES T S T FE RT IS E4 EN D 4 IE N ER O TH S TE R !A !R NA + IN A ; SO PE R B5 A D

TA=+E > FA+UE O! RESPONDENTS +I!E INSURANCE PO+ICY S+.NO A4OUNT NU4=ER O! RESPONDENTS C PERCENTA;E O! RESPONDENTS CH 1. V 1CCCC 5. 1CCCC T 5ACCC A 1C H :. 5ACCC T ACCCC E 1? H <. ACCCC81CCCCC 1A :C H A. W 1CCCCC 55 << H SOURCE 98 SURFEY DATA IN!ERENCE9 It "an $e in(erred t%at )a,ority o( "onsu)ers $uy t%e *i(e insuran"e po*i"y &%i"% "osts )ore t%an Rs. 1#CC#CCC (o**o&ed $y Rs. AC#CCC to Rs.1#CC#CCC# (o**o&ed $y Rs. 5A#CCC to Rs. AC#CCC. B:

;RAPH > FA+UE O! RESPONDENTS +I!E INSURANCE PO+ICY ACH <AH <CH :AH :CH 5AH 5CH 1AH 1CH 1CH AH CH W 1CCCC 1CCCC 5ACCC 5ACCC ACCCC ACCCC 1CCCCC W 1CCCCC CH 1?H :CH <<H B<

TA=+E 1C RESPONDENTS PRE!ERENCE TO INFEST THEIR 4ONEY NU4=ER O! RESPONDENTS INSURANCE CO4PANY 5< PERCENTA;E O! RESPONDENTS <E H =ANM 5? A5 H TOTA+ AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 !ro) t%e ta$*e it is "*ear t%at )a,ority o( peop*e 2A5H3 pre(er to invest in =an and ot%ers 2<EH3 pre(er to invest in Insuran"e "o)panies. BA

;RAPH 1C RESPONDENTS PRE!ERENCE TO INFEST THEIR 4ONEY A:H A5H A5H A1H ACH <>H <EH <EH <BH <?H INSURACE CO4PANY =ANM B?

TA=+E 11 SATIS!ACTION O! RESPONDENTS 6ITH CURRENT +I!E INSURANCE CO4PANY RESPONSE NU4=ER O! RESPONDENTS <B PERCENTA;E O! RESPONDENTS >< H YES NO : ?H TOTA+ AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 !ro) t%is ta$*e it "ou*d $e in(erred t%at ><H o( t%e "onsu)ers are satis(ied &it% t%e servi"e and 1ua*ity o( produ"ts o( t%eir *i(e insuran"e "o)panies. On*y ?H o( "onsu)ers are not satis(ied. BB

;RAPH 11 SATIS!ACTION O! RESPONDENTS 6ITH CURRENT +I!E INSURANCE CO4PANY 1CCH >CH ECH BCH ?CH ACH <CH :CH 5CH 1CH CH ><H ?H YES NO BE

TA=+E 15 RATIN;S O! THE SERFICES O!!ERED =Y THE RESPONDENT'S +I!E INSURANCE CO4PANY RATIN;S NU4=ER O! RESPONDENTS B PERCENTA;E O! RESPONDENTS 1< H ENCE++ENT FERY ;OOD 15 5< H ;OOD 5C <C H AFERA;E 11 55 H POOR C CH TOTA+ AC 1CC H SOURCE9 8 SURFEY DATA IN!ERENCE9 !ro) t%is ta$*e it "ou*d $e in(erred t%at <CH o( t%e "onsu)ers %ave rated servi"e o((ered as -ood# 5<H o( t%e) %ave rated t%e) as very -ood# 55H o( t%e) %ave rated as avera-e and 1<H o( t%e) %ave rated as ex"e**ent. B>

;RAPH 15 RATIN;S O! THE SERFICES O!!ERED =Y THE RESPONDENT'S +I!E INSURANCE CO4PANY <AH <CH :AH :CH 5AH 5CH 1AH 1CH AH CH O O D <CH 5<H 1<H 55H CH E FE R A ; PO O R O O D ; EC EN C E+ +E N T FE R Y ; A

TA=+E 1: CONSU4ERS 6I++IN;NESS TO CO44UNICATE THE SERFICE O!!ERED =Y THEIR +I!E INSURANCE CO4PANY RESPONSES NU4=ER O! RESPONDENTS :> PERCENTA;E O! RESPONDENTS BE H YES NO 11 55 H TOTA+ AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 !ro) t%is ta$*e it "an $e noted t%at t%e )a,ority o( "onsu)ers 2BEH3 &ou*d *i e to "o))uni"ate to ot%ers a$out t%e servi"e o((ered $y *i(e insuran"e "o)panies and 55H o( "onsu)ers &ou*d not *i e to "o))uni"ate t%e servi"e o((ered. E1

;RAPH 1: CONSU4ERS 6I++IN;NESS TO CO44UNICATE THE SERFICE O!!ERED =Y THEIR +I!E INSURANCE CO4PANY >CH ECH BCH ?CH ACH <CH :CH 5CH 1CH CH YES NO BEH 55H E5

TA=+E 1< NU4=ER O! +I!E INSURANCE CO4PANY MNO6N =Y RESPONDENTS NU4=ER O! +I!E INSURANCE CO4PANY MNO6N NU4=ER O! RESPONDENTS PERCENTA;E O! RESPONDENTS VA 1E :? H ATB 5> AE H E T 1C 5 <H W1C 1 5H TOTA+ AC 1CC H SOURCE 98 SURFEY DATA IN!ERENCE9 T%is ta$*e %e*ps us to no& t%e "onsu)er a&areness a$out t%e *i(e insuran"e "o)panies. AEH o( t%e "onsu)ers are a&are a$out A to B *i(e insuran"e "o)panies# (o**o&ed $y :?H "onsu)ers &%o no& *ess t%an A *i(e insuran"e "o)panies. E:

;RAPH 1< NU4=ER O! +I!E INSURANCE CO4PANY MNO6N =Y RESPONDENTS BCH ?CH ACH <CH :CH 5CH 1CH CH VA A TO B E to 1C W 1C AEH :?H <H 5H E<

TA=+E 1A SCORES O! DI!!ERENT +I!E INSURANCE CO4PANIES CO4PANIES SCORES RANM +IC :<A 1 ICICI PRUDENTIA+ 511 5 HD!C 1>< : TATA AI; 15: < IN; FYSYA 151 A =IR+A SUN+I!E 11E ? 4ET +I!E >C B OTHERS <1 E SOURCE98 SURFEY DATA IN!ERENCE9 !ro) t%e ta$*e &e "an ran t%e *i(e insuran"e "o)panies# +IC stands (irst# (o**o&ed $y ICICI Prudentia* (o**o&ed $y HD!C Standard *i(e# (o**o&ed $y TATA AI;.

EA

;RAPH 1A SCORES O! DI!!ERENT +I!E INSURANCE CO4PANIES > E B ? A < : 5 1 C + FY SY A +A SU N +I !E 4 ET +I !E +I C !C I; TI A H D ER O TH A E B ? A < : 5 1 EN TA D TA R U IP IN ; IC IC = IR E? S

CHAPTER A !INDIN;S# CONC+USION AND SU;;ESTIONS EB

A.1 !INDIN;S T%e )a,ority o( respondents $e*on-ed to t%e a-e -roup o( 1> to 5E years &%i"% (or)ed <EH (o**o&ed $y a-e -roup o( 5> to :E years &%i"% (or)ed 5?H. T%e )a*e "onsu)ers "apture t%e 4ar et s%are &it% ?EH# (o**o&ed $y t%e (e)a*e "onsu)ers &it% :5H. T%e )a,ority o( t%e "onsu)ers o( *i(e insuran"e "o)panies are private e)p*oyees &it% <EH and ;overn)ent e)p*oyees &it% <CH T%e do)inant in"o)e -roup %avin- *i(e insuran"e -roup $e*on- to t%e -roup o( 1CCC1 to 1A#CCC (o**o&ed $y A#CC1 to 1C#CCC. +IC %as a )a,or )ar et s%are o( BEH. T%e (a"tors &%i"% in(*uen"ed to se*e"t a *i(e insuran"e "o)pany is t%e persona* (a"tor# (o**o&ed $y (a)i*y# (riends# a-ents and advertise)ents. EE

T%e va*ue o( respondents *i(e insuran"e po*i"y "osts )ore t%an 1# CC#CCC (o**o&ed $y AC#CCC to 1#CC#CCC. 4a,ority o( t%e peop*e 2A5H3 pre(er to invest in $an invest in insuran"e "o)pany. ot%ers 2<EH3 pre(er to

4a,ority o( "onsu)ers are satis(ied &it% t%e servi"e and 1ua*ity o( produ"ts o( t%eir *i(e insuran"e "o)panies. 4a,ority o( "onsu)ers 2BEH3 &ou*d *i e to "o))uni"ate t%e servi"e o((ered $y *i(e insuran"e "o)panies. 4a,ority o( "onsu)ers 2AEH3 are a&are a$out A to B *i(e insuran"e "o)panies. +IC stands (irst (o**o&ed $y ICICI prudentia*# (o**o&ed $y HD!C Standard +i(e. E>

A.5 CONC+USION An Insuran"e po*i"y is an invest)ent oriented p*an. As "o)pared to ot%er invest)ent p*ans# t%e invest)ent port(o*io o( t%e Insuran"e Po*i"y (un"tions *i e a )utua* (und and ot%er invest)ent. It is invested in a port(o*io o( de$t and e1uity instru)ents# in "on(or)ity &it% t%e announ"ed invest)ent po*i"y. Hen"e it -ro&s or erodes in *ine &it% t%e per(or)an"e o( t%at port(o*io. !ro) t%is study it revea*s t%at t%e "onsu)er's attitude to&ards Insuran"e Po*i"y and Insuran"e Co)pany "%an-ed a *ot. A A years $e(ore t%e "onsu)ers and t%e -enera* pu$*i" &ere not interested to ta e an Insuran"e Po*i"y $ut no& days t%ere are )any options and "%oi"es in (ront o( t%e "usto)ers. T%ey are interested to ta e %i-% return po*i"ies in order to se"ure t%eir *ives. Peop*e are a&are o( a** t%e $ene(its and returns o( insuran"e po*i"ies. As a resu*t o( t%is ne& internationa* and do)esti" "o)panies are "o)in- to t%e Indian 4ar et. Sin"e t%ere are )any p*ayers in t%e Indian Insuran"e 4ar et t%e "o)petition *eve* is very %i-%. So t%e "o)panies are introdu"in- ne& s"%e)es. !ro) t%is it is (ound t%at T%e +IC is t%e )a,or )ar et s%are %o*der in t%e insuran"e (ie*d. Even i( t%ere are )any p*ayers in t%is (ie*d sti** it is an untapped )ar et. On*y a (e& portion o( Indian popu*ation is insured. >C

A.: RECO44ENDATIONS AND SU;;ESTIONS 6it% re-ard to insuran"e "o)panies# "onsu)ers respond at di((erent rates# dependin- on t%e "onsu)ers "%ara"teristi"s. Hen"e Insuran"e "o)panies s%ou*d try to $rin- t%eir ne& produ"t to t%e attention o( potentia* ear*y adopters. a3 Due to t%e intense "o)petition in t%e *i(e insuran"e )ar et# t%e *i(e insuran"e "o)panies %ave to adopt $etter strate-ies to attra"t )ore "usto)ers. $3 Meepin- t%e "ost# 1ua*ity and return on invest)ent in ta"t is ne"essary in order to ta" *e t%e "o)petition. "3 +i(e insuran"e produ"ts are ta en )ain*y $y )idd*e and %i-%er in"o)e -roup. Hen"e t%ey s%ou*d $e re-arded as )ai) tar-eted in"o)e -roups. +i(e insuran"e produ"ts &%i"% are suita$*e (or *o&er in"o)e -roup s%ou*d a*so $e re*eased so t%at t%e )ar et s%are in"reases. d3 Return on invest)ent# "o)pany reputation and pre)iu) out(*o& are )ost pre(erred attri$utes t%at are expe"ted $y t%e respondents. Hen"e -reater (o"us s%ou*d $e -iven to t%ese attri$utes. >1

e3 Private *i(e insuran"e "o)panies s%ou*d adopt e((e"tive pro)otiona* strate-ies to in"rease t%e a&areness *eve* a)on- t%e "onsu)ers. (3 +i(e insuran"e "o)panies s%ou*d as (or t%eir "onsu)er (eed$a" to no& &%et%er t%e "onsu)ers are rea**y satis(ied or dissatis(ied &it% t%e servi"e and produ"t o( t%e "o)panies. I( t%ey are dissatis(ied # t%en t%e reasons (or dissatis(a"tion s%ou*d $e (ound out and s%ou*d $e "orre"ted in (uture. -3 T%e +IC $rand na)e %as earned a *ot o( -ood&i** and en,oys a %i-% $rand e1uity. As t%ere is intense "o)petition in *i(e insuran"e )ar et# +IC s%ou*d &or %ard to )aintain its top position and o((er $etter servi"e and produ"t. >5

=I=+IO;RAPHY >:

=I=+IO;RAPHY 13 53 Dr. Sin-%# Avtar# Prin"ip*es o( Insuran"e +a&# S C%and @ Sons# De*%i#5CC:. +eon ;. S"%i(()an# +estie +a0ar Man& # Consu)er =e%aviour# Hi)a*aya Pu$*is%ers# De*%i#5CC< :3 Mot*er P%i*ip# 4ar etin- 4ana-e)ent# Pearson Edu"ation In". 11t% Edition. <3 Stanton 6i**ia) G# Et0e* 4i"%ae* G# 6a* er =ru"e G# !unda)enta*s o( 4ar etin-# 4";ra&8Hi** internationa*# Sin-apore# 5CC5 A3 ?3 B3 Ravi S%an ar# Servi"es 4ar etin-# Prenti"e Ha**# 5CCC. Fa*arie A0it%a)*# 4arry Go =ittner# Servi"es o( 4ar etin-# Prenti"e Ha**# 5CC1 Rut"%nee .T @ M.S.Arun Mu)ar#Consu)er pre(eren"e @ $uyin- per"eption o( ready )ade si* -ar)ents#P;DS4#Internationa* "enter (or trainin- @ resear"% in tropi"a* seri"u*ture# Ne&spapers9 R R E"ono)i" Ti)es =usiness +ine ><

6or*d 6ide 6e$9 R R R &&&.*i"."o) &&&.irda.or- &&&.&i ipedia."o) >A

ANNENURE >?

OUESTIONNAIRE A STUDY CONDUCTED TO UNDERSTAND THE CONSU4ER'S PERCEPTION A=OUT +I!E INSURANCE PO+ICIES 1. Na)e 9 5. A-e9 :. Address9 : a. P%one nu)$er9 <. O""upation9 A. 4ont%*y in"o)e9 VACCC 1A#CC185CCCC Ni* ACC181C#CCC 5C#CC185A#CCC 1C#CCC81A#CCC W5A#CCC ?. Do You O&n House T&o 6%ee*er Car B. Do you %ave a +i(e Insuran"e Po*i"y &it% any +i(e Insuran"eCa)panyX Yes No B.a3 I( yes# na)e t%e Co)panyYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY $3 Na)e t%e po*i"y &%i"% you o&nYYYYYYYYYYYYYYYYYYYYYYYYYYYYY >B

E. 6%at (a"tors do you "onsider &%i*e se*e"tin- a *i(e insuran"e "o)panyX Pre)iu) Out(*o& Servi"e Oua*ity Return on Invest)ent Co)pany Reputation Produ"t Oua*ity >. 6%at (a"tors in(*uen"ed to se*e"t a +i(e Insuran"e "o)panyX Persona* interest A-ents !riends Advertise)ents !a)i*y ot%ers 1C. 6%at is t%e va*ue o( your *i(e insuran"eX W1C#CCC AC#CCC81#CC#CCC 1C#CCC8 5A#CCC W1#CC#CCC 5A#CCC8AC#CCC 11. Do you pre(er to invest your )oney in a Insuran"e "o)pany or in a =an X Insuran"e Co)pany =an 15. Are you satis(ied &it% your "urrent +i(e Insuran"e Co)panyX Yes No I( Yes 6%yXYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY I( No 6%yX YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY 1:. Ho& do you rate t%e servi"e o((ered $y your +i(e Insuran"e Co)panyX Ex"e**ent Avera-e Fery ;ood Poor ;ood >E

1<. 6ou*d you *i e to "o))uni"ate t%e servi"e o((ered $y your +i(e Insuran"e Co)pany to ot%ersX Yes No 1A. Ho& )any +i(e insuran"e Co)pannies do you no&X VA A8B E81C W1C

1?. Ho& do you rate t%e (o**o&in- +i(e Insuran"e Co)paniesX +IC HD!C IN; FYSYA 4ET +I!E INDIA INSURANCE =IR+A SUN+I!E ICICI Prudentia* TATA AI; Ot%ers 1B. 6ou*d You *i e to "ontinue &it% t%e sa)e +i(e Insuran"e Co)panyX Yes No 1E. Any su--estions (or i)provin- t%e servi"e o((ered $y *i(e insuran"e "o)panies T%an >> You.