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CHAPTER 1
-PROFILE




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1.1 INTRODUCTION
IDBI Fedral Life Insurance Co Ltd, is a joint venture between three leading
financial conglomerates – India’s premier development and commercial bank, IDBI,
India’s leading private sector bank, Federal Bank and Europe’s premier Bank
assurer, Ageas, each of which enjoys a significant status in their respective business
segments. In this venture, IDBI owns 48% equity while Federal Bank and Fortis
own 26% equity each.
Let us have a brief look over these three companies:
1.1.1 IDBI Bank Limited
Development Banking emerged after the Second World War and the Great
Depression in 1930s. The demand for reconstruction funds for the affected nations
compelled in setting up of national institutions for reconstruction. At the time of
Independence in 1947, India had a fairly developed banking system. The adoption of
bank dominated financial development strategy was aimed at meeting the sectoral
credit needs, particularly of agriculture and industry. Specialised development
financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc.,
with majority ownership of the Reserve Bank were set up to meet the long-term
financing requirements of industry and agriculture.
The Industrial Development Bank of India (IDBI) was established in 1964 under an
Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In
1976, the ownership of IDBI was transferred to the Government of India and it was
made the principal financial institution for , promoting and developing industry in
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India. But after the public issue of IDBI in July 1995, the Government shareholding
in the Bank came down from 100% to 75%.
IDBI, formally entered the portals of banking business as IDBI Ltd. from 1 October 2004. In
2006, IDBI Bank acquired United Western Bank in a rescue. By acquiring UWB, IDBI Bank
more than doubled the number of its branches from 195 to 425.
1.1.2 Fedral Bank
Federal Bank Limited is a major Indian commercial bank in the private sector,
headquartered at Aluva, Kochi, Kerala. It is the fourth largest bank in India in terms
of capital base. As of 2 June 2014, Federal Bank has 1174 branches spread across 24
states and 1371 ATMs across the country. Its balance-sheet stood at Rs 1.03 trillion
as of end March 2014 and its net profit stood at Rs 839 crore for the full fiscal .
In 1931, Travancore Federal Bank began operations at Pattamukkil Varattisseril
house near Nedumpuram, near Thiruvalla, Kerala. The home functioned as the bank
office for nearly 15 years. A lawyer from Perumbavoor named K.P.Hormis, and his
acquaintances, bought the bank and took over the management. In 1945 they moved
the bank's registered office to Aluva and Hormis became the Managing Director. In
1947, the bank's name was shortened from Travancore Federal Bank to Federal
Bank.
Between 1963 and 1970, Federal Bank took over Chalakudy Public Bank, Cochin
Union Bank (1963) in Trichur, Alleppey Bank (1964) in Alappuzha, St. George
Union Bank (1965) in Puthenpally, and Marthandam Commercial Bank (1968)
in Thiruvananthapuram. In 1970, it became a scheduled commercial bank and came
out with itsinitial public offering in 1994.
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In January 2008 Federal Bank opened its first overseas representative office in Abu
Dhabi.
In August 2013 Federal Bank introduced FedBook, the first electronic passbook
launched by any bank in India. FedBook is a mobile app through which customers
can view their passbook details.
1.1.3 AGEAS
Ageas Insurance Company (Asia) Limited is an insurance company based
in Hong Kong. It was acquired by Fortis, the Belgium and Netherlands based public
finance group in 2007
Prior to then the company was called Pacific Century Insurance Holdings Limited
and was controlled by Pacific Century Regional Developments Limited.
Ageas Insurance Company (Asia) Limited ("Ageas") ranks one of the largest life
insurance companies in Hong Kong. it offers the Hong Kong market a diversity of
financial protection products and wealth management services. Ageas is an
international insurance group with a heritage spanning 190 years. Ranked among
the top 20 insurance companies in Europe
Ageas operates successful partnerships in Belgium, the UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in
France, Hong Kong and the UK. Ageas is the market leader in Belgium for
individual life and employee benefits, as well as a leading non-life player through
AG Insurance. In the UK, Ageas is the second largest Motor insurer and has a
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strong presence in the growing over 50’s market. and has annual inflows of more
than EUR 23 billion.
The literal meaning of AGEAS is:
AG - reflects roots-the creation of AG Leven in 1824
EA - two key markets-Europe and Asia
AS - Assurance, our single minded focus on our core insurance business
Having started in March 2008, in just five months of inception, IDBI Federal became one of the
fastest growing new insurance companies by garnering Rs.100 Cr in premiums.The company
offers its services through a vast nationwide network 2,308 partner bank branches of IDBI Bank
and Federal Bank in addition to a sizeable network of advisors and partners. As on 31st
December 2013, the company has issued nearly 5.5 lakh policies with a sum assured of over Rs.
32,110.48 crores.
1.2 Company’s vision:
To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives.
1.3 Company’s mission:
 To continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery while
striving to interact with our customers in the most convenient and cost effective
manner.
 To be transparent in the way we deal with our customers and to act with integrity.
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 To invest in and build quality human capital in order to achieve our mission.
 To deliver world-class wealth management, protection and retirement solutions that
provides value and convenience to the Indian customer.
1.4 Companies values and believes:
 Transparency: Crystal Clear communication to our partners and stakeholders
 Value to Customers: A product and service offering in which customers perceive value
 Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims
 Customer-friendly: Advice and support in working with customers and partners
 Profit to Stakeholders: Balance the interests of customers, partners, employees,
shareholders and the community at large
1.5 Company Information
Full name : IDBI Federal Life Insurance Co Ltd.
Legal Address: 1st Floor, Trade view Building, Oasis Complex, Kamala City, Pandurang
Budhkar Marg, Lower Parel ( W ); Mumbai; Maharashtra; 400013 14
Legal Form: Other non-liability limited
Type Joint Venture
Industry Life insurance
Founded March 2008
Headquarters Headquaters in Mumbai India

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1.6 Key peoples:
Board of directors:
 Mr. R. M. Malla (Non-Executive Director)
 Mr. Suresh Kumar (Non-Executive Director)
 Mr. Bart De Smet (Non-Executive Director)
 Mr. R. K. Bansal (Non-Executive Director)
 Mr. Filip A. L. Coremans (Non-Executive Director)
 Mr. S. Santhanakrishnan (Independent (Non-Executive) Director)
 Mr. R. K. Thapliyal (Independent (Non-Executive) Director)
 Mr. Davinder Rajpal (Independent (Non-Executive) Director)
Senior management committee:
 Mr. Ajay Oberoi (Chief People Officer & Head – Administration)
 Mr. Ashley Kennedy (National Head – Agency & Alliances)
 Mr. Aneesh Khanna (Head – Marketing & Product Management)
 Mr. Aneesh Srivastava (Chief Investment Officer)
 Mr. Rajesh Ajgaonkar (Head – Legal, Compliance &Company Secretary)
 Mr. Vignesh Shahane (CEO & Whole – Time Director)
 Mr. George John (Corporate Controller)


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1.7 Products
1.7.1 Childsurance






IDBI Federal Childsurance Savings Protection Plan is a endowment plan that
ensures your child’s future financial needs are fulfilled. Childsurance Savings, is
designed to give you guaranteed annual payouts and aid the important milestones in
your child’s life. What’s more, in the unfortunate event of you not being around, the
policy will continue exactly as you had planned it, without any further premiums
being paid. .In other words, this plan ensures that your child gets to live his/her
dream exactly as you have planned, whether or not you are around.






Figure 1. 1 childsurence
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1.7.2 Group Microsurance Plan






The IDBI Federal Group Microsurance Plan provides affordable life insurance
cover to groupsThe plan is extremely useful to Micro Finance Institutions, Self
Help Groups and NGOs to insure the lives of their group members and thus provide
security to the group members’ families. The plan can also be used for providing
loan protection to the group members’ families

1.7.3 Incomesurence





DBI Federal Incomesuranc Guaranteed Money Back Insurance Plan is a non-
linked non-participating money back plan which gives you guaranteed
*
returns on
Figure 1. 2 Group Microsurance Plan
Figure 1. 3 Incomesurence
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your investment, so that you stop worrying about the future. With Incomesurance,
you can guarantee a secure future for your family even when you are not around.

1.7.4 Lifesurence









IDBI Federal Lifesurance® Savings Insurance Plan (UIN:135N029V01) is a
fixed term non-linked participating plan that provides you the twin benefits of
long-term savings and life cover. With Lifesurance Savings, your small savings
will help you realise the big dreams that you have for yourself and your family.
This plan also offers you the benefit of life cover that will provide financial
security to your family in your absence.





Figure 1. 4 Lifesurence
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1.7.5 Loansurance Group Insurance Plan








IDBI Federal Loansurance® Group Insurance Plan, hereafter referred to as
Loansurance®, is a group credit protection plan that helps protect your borrower’s
assets and savings. Through Loansurance® you extend peace of mind to your
clients, ensuring that their debt does not become a burden on their family in their
absence. In return, you are also protected from the risk of non-payment of the loan
dueatoadeathaofatheaborrower.
Loansurance® allows you to cover the persons who are directly liable for loan
repayment (and the partners, in case of a partnership) be it a loan taken by
individuals or by business. Thus, even a business entity will be protected against
loan default in case of death of the persons who are responsible for loan repayment.
Furthermore, with this product, you gain competitive edge while attracting new
customersdanddretainingdthedexistingdones..



Figure 1. 5 Loansurance Group Insurance Plan
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1.7.6 Termsurance









IDBI Federal Termsurance Group Insurance Plan is a pure group term plan
designed to cater to a wide variety of formal and informal groups such as the
employer-employee groups/bank-depositor groups/ customer-supplier
groups/professionals/affinity groups. It is a Group Term Insurance plan that
provides basic life insurance protection to the members of the plan.

1.7.7 Wealthsurance




Figure 1. 6 Termsurance
Figure 1. 7 Wealthsurance
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IDBI Federal Wealthsurance® Suvidha Growth Insurance Plan (UIN:
135L033V01) is a simple unit linked plan that helps you take your first step towards
wealth creation and that too, with ease. What’s more, the life cover with this plan
provides financial protection to your loved ones.
1.7.8 Retiresurance







IDBI Federal Retiresurance Group Insurance Plan is a non-linked non-participating
variable insurance plan, designed for employer-employee groups only. It enables
employers with more than 10 employees to outsource the management of their
employee’s gratuity, superannuation and leave encashment funds. It also provides
basic life insurance protection to the members of the plan.
1.8 size of firm
It is this commitment that has helped us achieve break-even in just the 5 year of
operation and declare a maiden profit of ` 9.24 crore. We offer our services through a
nationwide network of 2,186 bank branches of IDBI Bank and Federal Bank in addition to
Figure 1. 8 Retiresurance
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a sizeable network of our advisors. As on 31 March, 2013, IDBI Federal Life Insurance
issued over 5 lakh policies with a sum assured of more than ` 28,500 crore.
Moreover, IDBI fedral life insurance is a fast growing insurance company as achieving a
break-even in just 5 years is a great achievement for a insurance company. It also raised
100crores in just 6 mounts, and that’s something highlighting.
After declaring the maiden profit of RS.9.2 crores (approx.) (as on 31
st
march 2013), it took
a huge jump in reference to profits and declared 80 crores (8.6 times profit of the last year,
i.e., 2013), in 2014 as profit.
1.9 Market Share Of The Firm

Figure 1. 9 market share of the idbi fedral life insurance
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1.10 Organizational Structure
1.10.1 Sales Organizational Structure







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1.10.2 Human Resource Organizational Structure

1.10.3 Operational Organizational Structure

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1.11.1 Objective of study
 To compare my skills and knowledge with the requirement of corporate world
 To implement the concept studies in academics in real world
 To learn about various types of investment tools
 To compare the tools and find out the positives and negatives of every tool
1.11.2 Sources of data
 Primary data
Primary data was collected by my colleagues, seniors, and by
distributing the questionnaires to the people of different backgrounds. The
questionnaires were carefully designed under the supervision of my supervisor, Mr.
Sanjeev Malik, taking every parameter of my study in my mind.
 Secondary data
Data was collected from books, magazines, web sites, going through the
records of theorganisation, etc. It is the data which has been collected
by individual or someone else forthe purpose of other than those of our
particular research study.



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CHAPTER 2
SWOT Analysis of
IDBI FEDRAL LIFE
INSURENCE








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2.1 Strengths & Weaknesses
2.1.1 Strengths
 skilled workforce
 reduced labor costs
 Superior customer service
 High degree of customer satisfaction.
 Dedicated workforce aiming at making a long-term career in the field.
 Large pool of technically skilled manpower with in depth knowledge and
understanding of the market
2.1.2 Weakness
 Management cover insufficient.
 Sectoral growth is constrained by low unemployment levels and competition for
staff.
 Low customer confidence on the private players
 Low or negative growth rate
2.2 Opportunities & Threats
2.2.1 Opportunities
 Insurable population : According to IRDA only 10% of the population is insured
whichrepresent around 30% of the insurable population.
 Due to new budget, FDI is possible due to which company can grow
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 Quick claim settlement (policy of claim settlement in 8 working days)
 Efficient R&D team to launch new products
2.2.2 Threats
 tax changes
 FDI increased the completion
 Threat from international players
2.3 Unique Selling Prepositions
the USP of IDBI FEDRAL LIFE INSURANCE PVT. Ltd is that it is a reliable
firm, as it constitute the combination of a government bank, a private but top most
(in south India) bank, and the second largest insurance firm, ageas. Moreover it has
a believe of ‘what we say, is what it is’ which is mostly missing in other insurance
firms.
And it also have highly R&D team which innovates its products to make it best.
The company has all unique products on which customers can relay. One such
product is INCOMESURENCE, Which gives GARUNTEED 138% cash back,
from 6
th
year, on the premium paid, first 5 years.
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Moreover it has a policy of paid-up, in which, if the customer is unable to pay
premium after two years, his policy will be converted according to the amount
paid.
All such products are reliable due to everything mentioned in the policy in writing.
Maximum firms promises such things but do not give these thing in writing ans
they are making virtual promises, but IDBI FEDRAL gives surety about the money
of the customer.










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CHAPTER 3
Comparative study on
various investment
instruments-
INSURENCE and MUTUAL
FUNDS



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4.1 Introduction
Saving is income not spent, or deferred consumption. Methods of saving include putting
money aside in a bank or pension plan. Saving also includes reducing expenditures, such as
recurring costs. In terms of personal finance, saving specifies low-risk preservation of
money, as in a deposit account, versus investment, wherein risk is higher.
Saving is closely related to investment. By not using income to buy consumer goods and
services, it is possible for resources to instead be invested by being used to producefixed
capital, such as factories and machinery. Saving can therefore be vital to increase the
amount of fixed capital available, which contributes to economic growth.
Investment is the purchase of an asset or item with the hope that it will generate income or
appreciate in the future and be sold at the higher price. The term investment is usually used
when referring to a long-term outlook. This is the opposite of trading or speculation, which
are short-term practices involving a much higher degree of risk.
the various types of investing tools are:
 Bank (FD, RD,SA)
 Shares
 Bonds
 Gold
 Insurance
 Post office
 Mutual funds
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All the instruments are good to be invested with some positives and negative factors. Let us
do a detailed study of insurance and mutual funds as the investment tools in current era
and compare both of them.
4.2 INSURANCE
insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment. It is a form of risk management. Insurance involves pooling funds
from many insured entities (known as exposures) to pay for the losses that some may incur.
The insured entities are therefore protected from risk for a fee, with the fee being
dependent upon the frequency and severity of the event occurring.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The amount of money to
be charged for a certain amount of insurance coverage is called the premium.
Methods for transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC,
respectively. Chinese merchants travelling treacherous river rapids would redistribute their
wares across many vessels to limit the loss due to any single vessel's capsizing. The
Babylonians developed a system which was recorded in the famous Code of Hammurabi, c.
1750 BC, If a merchant received a loan to fund his shipment, he would pay the lender an
additional sum in exchange for the lender's guarantee to cancel the loan should the
shipment be stolen or lost at sea.



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3.2.1 Types of insurance

Types Of
Insurence
life insurance
non- life insurance
Fire
Miscellaneous
Motor
Health
travell
Property
Marine
re-insurance
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3.2.1 Life Insurance
Life insurance provides a monetary benefit to a decedent's family or other designated
beneficiary, and may specifically provide for income to an insured person's family,
burial, funeral and other final expenses. Basically, the insured person pay premiums
according to the policy, when he is alive, and gets the grantee of payback the total
premium amount with increment in amount in form of interest, bonuses etc, to his
family after his death. Life insurance policies often allow the option of having the
proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
3.2.2 Reinsurance
Reinsurance is insurance that is purchased by an insurance company from one or
more other insurance companies
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4.3 MUTUAL FUNDS
A mutual fund is a type of professionally managed collective investment scheme that
pools money from many miscellaneous investors to purchase securities. While there is no
legal definition of the term mutual fund, it is most commonly applied only to those
collective investment vehicles that are regulated and sold to the general public. They are
sometimes referred to as "investment companies" or "registered investment
companies". Most mutual funds are open-ended, meaning stockholders can buy or sell
shares of the fund at any time by redeeming them from the fund itself, rather than on an
exchange. Hedge funds are not considered a type of mutual fund, primarily because they
are not sold publicly.
Mutual funds have both advantages and disadvantages compared to direct investing in individual
securities.
The fund manager, also known as the fund sponsor or fund management company, trades(buys and
sells) the fund's investments in accordance with the fund's investment objective. A fund manager
must be a registered investment advisor. Funds that are managed by the same fund manager and
that have the same brand name are known as a fund family orfund complex.
Advantages and disadvantages
Mutual funds have advantages compared to direct investing in individual securities.These
include:
 Increased diversification: A fund must hold many securities. Diversifying reduces risks
compared to holding a single stock, bond, other available instruments.
 Daily liquidity: This concept applies only to open-end funds. Shareholders may trade
their holdings with the fund manager at the close of a trading day based on the closing net
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asset value of the fund's holdings. However, there may be fees and restrictions as stated
in the fund prospectus. For holders of individual stocks, bonds, closed-end funds, ETFs,
and other available instruments, there may not be a buyer/seller for that instrument every
day, making such investments less liquid.
 Professional investment management: A highly variable aspect of a fund discussed in the
prospectus. Actively managed funds may have large staffs of analysts who actively trade
the fund holdings. Management of an index fund may just passively re-balance holdings
to match a market index like the Standard and Poors 500 Index.
 Ability to participate in investments that may be available only to larger investors:
Foreign markets, in particular, are rarely open and affordable for individual investors.
Moreover, the research required to make sensible foreign investments may require
knowledge of another language and the rules of regulations of other markets.
 Service and convenience: This is not a feature of a mutual fund, but rather a feature of the
fund management company. Increasingly in recent years, there are funds, notably
Exchange Traded Funds (ETFs) that are purely investment instruments without any
additional services from the fund management company.
 Government oversight: Largely, the US government's role with mutual funds is to require
the publication of a prospectus describing the fund. No such document is required for
stock, bonds, currencies, and other investment instruments. There is no governmental
oversight of a fund's investment success/failure.
 Ease of comparison: Since mutual funds are available from many providers, it is
generally easy to find similar funds and compare features such as expenses.

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Mutual funds have disadvantages as well, which include
 Fees
 Less control over timing of recognition of gains
 Less predictable income
 No opportunity to customize
4.4 Comparison of Banks And Mutual Funds
BASIS BANKS MUTUAL FUNDS
Returns low better
Administrative
exp.
high low
Risk low moderate
liquidity At a cost better
Quality of assets Not transparent transparent
Investment
options
less more
4.5 LESSON LEARNT
This summer training project taught me a lots of thing about the real cooperate
world, I learnt how the basic concept we studied are used in day to day
operations. Moreover, I personally experienced the pressure of completing the
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targets, the same pressure my parents experiences every day at there work
place.