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A project on Product Positioning of various insurance instruments

as an efficient tool to growth and savings

IDBI Federal Life Insurance Company Limited

SIP project report submitted in partial fulfillment of the requirements for the
PGDM Programme


Debanjana Dasgupta

Supervisors: 1. Mr.ChandanPuri (Company Guide)

2. (Faculty Guide)


It is often said that life is a mixture of achievements, failures, experiences, exposures and efforts
to make ones dream come true. There are people around us who help us realize our dream. I
acquire this opportunity with much pleasure to acknowledge the invaluable assistance of IDBI
Federal Life Insurance Co. Ltd. and all the people associated who have helped me in the course
of my journey towards the successful completion of this project.

I wish to express my sincere gratitude to my Company Guide, Mr.ChandanPuri(Agency

Leader) for his guidance, help and motivation. Apart from the subject of my study, I learnt a lot
from him, which I am sure, will be useful in different stages of my life.

Lastly I would like to thank Mr.ChandanPuri for providing me with this wonderful opportunity
to work at IDBI Federal Life Insurance Co. Ltd. and for his kind cooperation during the period of
my Summer Internship Programme.



The project with respect to IDBI Federal Life Insurance Co. Ltd. is being done as a part of
Summer internship program of Institute of Management Technology, Nagpur. This project is
required for the successful completion of the PGDM program of the institute.


The focus of the study is to know the customer perception about IDBI Federal Life Insurance.
The study also aims to know the customer mind-set and perception towards insurance policies.
The data is collected from different parts of West Bengal. The study also focuses to know the
possible ways to maintain a long term relationship with the customers.


To maintain relationship between customers and IDBI Federal Life Insurance.

To have better understanding of customer mind-set.
To know the features considered by the people while taking an insurance policy.
Segmentation of customer on the basis of various factors.
Product positioning of various Life insurance products


What is insurance?

Insurance may be considered as a process by which the losses of a few, who are unfortunate to
suffer such losses, are shared amongst those exposed to similar uncertain events or situations.

The idea of how insurance works?

1. Firstly, there must be an asset, which has an economic value. It can be categorized in three
Non Physical
2. The asset may lose its value if a certain event happens. This chance of loss is called a risk.
Such an event is termed as peril.
3. There is a principle known as pooling. According to this process similar set of individuals
who may be exposed to similar set of risks, contributes premiums to build a lump sum fund.
4. This pool of fund is used to compensate the few who might suffer the losses as caused by a
5. This process of pooling funds and compensating the unlucky few is carried out through an
institution known as the insurer.
6. The insurer enters into an insurance contract with each person who seeks to participate in the
scheme. Such a participant is known as insured


Insurance can be defined as the business of socio-economic activity, therefore planned to be

bailed out through the system of assurance by the other party. Insurance in legal sense it is a
contract by which one party in consideration of the price paid to him proportionate to the risk
provides security to other party that he shall not suffer loss, damage or prejudice by the
happening of certain specified events. Insurance is meant to protect the insured against uncertain
events which cause disadvantage to him.
India have 53 insurance companies of which 24 are in life insurance business and 29 are in non-
life insuring business. Among the life insurers, Life Insurance Corporation (LIC) is a
government entity. Apart from that, among the non-life insurers there are six public sector
insurers. General Insurance Corporation of India (GIC Re), is a sole national re-insurer. Other
stakeholders in Indian Insurance market include agents (individual and corporate), brokers,
surveyors and third party administrators servicing health insurance claims.

Five private sector insurers have permission to underwrite policies exclusively in health,
personal accident and travel insurance segments. They are Star Health and Allied Insurance
Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health Insurance
Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK Health Insurance
Company Ltd. Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance, are also few of the public sector entity
entitled to do business in their section of concerned.


IDBI Federal Life Insurance is one of Indias growing life insurance companies and offers a
diverse range of wealth management, protection and retirement solutions to individual and
corporate customers.

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier
development and commercial bank, Federal Bank, one of Indias leading private sector banks

and Ageas, a multinational insurance giant based out of Europe.

Having commenced operations in 2008, IDBI Federal was able to achieve break-even within just
5 years; the Companys passion for innovation and growth helped it achieve this feat.

Through a nationwide network of 2,964 branches of IDBI Bank and Federal Bank, and a sizeable
network of advisors and partners, IDBI Federal Life Insurance has achieved presence across the
length and breadth of the country. As on March 31, 2017, the company has issued nearly 10.29
lakh policies with a sum assured of over Rs. 58,653.76 crore. IDBI Federal Life Insurance has
total assets under management of 6,090 crore and a robust capital base of over 800 crores, as on
March 31, 2017.


IDBIBankLtd. continues to be, since its inception, Indias premier industrial development bank.
It came into being as on July 01, 1964 to support Indias industrial backbone. Today, it is
amongst Indias foremost commercial banks, with a wide range of innovative products and
services, serving retail and corporate customers in all corners of the country from 1717 branches
and 3000 ATMs.

Federal Bank is one of Indias leading private sector banks, with a dominant presence in the
state of Kerala. It has a strong network of over 1,247 branches and 1,485 ATMs spread across
India. The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network.

Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the
top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in
Europe and Asia, which together make up the largest share of the global insurance market. These
are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and
served through a combination of wholly owned subsidiaries and partnerships with strong
financial institutions and key distributors around the world. 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 India, IDBI is recognized among the top 10 nationalized banks and it has got 48% share in
IDBI Federal Life Insurance along with 26% by Federal bank and another 26% by Aegis. Hence
it generates a factor of trust among the minds of Indians which is an important factor for the
generation of business and growth of any insurance industry.

IDBI Federal in numbers (till 31 March 2016):

Over 3000 branches pan India including IDBI Bank and Federal Bank
Total 8.23 lakh policies issued
Total sum insured is Rs.51256.76 crore
Assets under management is Rs. 4893 crore
Have over 9000 advisors
Have over 2149 employees


Vision is to be the leading provider of protection, wealth management and retirement solutions
that meet the customer needs and add value to their lives.


To enhance customer experience

To be transparent and maintain integrity
To build quality human capital from investment




Individual new business premium grew by 40.34%

Maintained 13th rank in new business (individual life) successfully
Companys total market share amongst private players rose to 1.44% from 1.39%
75% persistency for 13th month among the best in the industry
Operating cost to gross premium stood at 18.7%
Total premium went up 16%
80 new HR initiatives are launched
Renewal premium grew 11%



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The Recruitment process of IDBI federal completely through the Internship method. Based on
the Real time experience the candidates are recruited to the organization. The selected candidates
are proposed to Achieve target policies. The Target of the each employee is 5 products sale. So,
each candidate should sell 5 products to make him as the employee of the organization. This is
the selection method where the organization is recruiting the lower level managers which are
based on the task performing.


Training is must for every individual when he enters into the organization. Even though
the candidate has experience he also should get training. Why because the organization culture,
values and beliefs are different from one organization to other. Thats why the training program
plays a key role in every organization.
Training program following by IDBI Federal is different at various levels. Mainly in
training program the company concentrates on sales managers, agents, operations executives and
tele-callers. A special training is conducted known as IC38, which deals mainly with traing about
insurance industry and then a exam is conducted by IRDAI. On passing this exam the trainee is
provided with license to sell insurance officially.


The training program duration for the sales manager is 15 20 days. The company
Motivating and encouraging Advisors during the training period. During the period they are get
training on product knowledge. Here the company helps the managers, how to approach different
customers and how to handling the objection etc.


They will get training on customer database files. They will teach how to taking care of the
customer files. So the company provides them training in product information and
documentation. The renewals will be informed periodically.


The Performance appraisal of IDBI federal is based upon 2 types.
1. Employees Appraisal. 2. Agents Appraisal. EMPLOYEES APPRAISAL:

The Employee appraisal is based upon the target system. There are three levels in the
performance appraisal.

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Lower level: For the Post of Manager level, the employee must achieve the product sales worth
of 7.2lakhs at the Annual period of the year.
Higher level: For the Post of Senior Manager Level, the employee must achieve the product
sales worth of 22.2lakhs at the Annual period of the year. AGENTS APPRAISAL:

The Agents are paid with commission percentage for every sale which is depending upon the

4.5.6 AWARDS:

The awards and the other grievances are provided only based upon the individual
performance. The Company Provides free foreign trip for the employees all the year and best
performer Awards of the year.
Example: One of the employees awarded for created best Advertisement award for the
childsurance Plan.



There are around 34 sites to manage them, IDBI Federal uses Tulip Proactive Managed CE
solution. The solution includes device management, proactive troubleshooting and notification
support. With the implementation of the solution, IDBI has reported improvement of network
performance and availability, with a faster, more effective change and configuration

To enhance independency and have a healthy culture in the organization IDBI Federal has no
in-house Human Resource personnel present in the offices, instead it has an advanced MIS
solution named Pulse HR connect.

To involve employees in the decision making process and also to have transparency in the
organization where employees are called upon to discuss an idea with the CEO, Mr. Vighnesh
Shahane on a cup of coffee. Its known as CEO Connect.


The term insurance marketing refers to the marketing of services related to tax consultation and
understanding of each customer well and sound with the aim generate profit through customer
satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance
business so that the Insurance organization survives and thrives in the right perspective.

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The marketing mix is the combination of marketing activities that an organization engages in so
as to best meet the needs of its targeted market. The Insurance business deals in selling services
and therefore due weight age in the formation of marketing mix for the Insurance business is
The marketing mix includes sub-mixes of the 4 Ps of marketing i.e. the product, its price, place,
promotion. The above mentioned 4 Ps can be used for marketing of Insurance products, in the
following manner:


5.1.1 IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 6 pay (UIN

IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 6 pay is a savings
tools that will help its customers or patrons to achieve achieve their financial goals with
its systematic and steady approach with an assurance of guaranteed income.
The investment for this plan requires the customer to pay for 6 years and he can get back
his investment from 8th year on till 13th year
This plan actually protects the insurer from critical illness, during the entire span of
premium years and as well us covers death benefit.
Saving money in IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 6
pay (hereinafter referred to as Incomesurance 6 pay) is a good way to keep it secure and
help it grow

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Particulars Minimum Maximum
Age at entry(as on last birthday) 10 years* 50 years
Age at Maturity(as on last birthday) 23 years 63 years
Premium Rs. 35,000 Rs. 20,00,000

Premium Payment Term 6 years(fixed)

Policy Term 13 years(fixed)

Premium payment mode Annual

NOTE: * Policies taken on lives of minors, that is an individual who is yet to attain the age of 18
should be done only by their parents/grandparents or their legal guardian.

Why will anyone invest in this plan?

After going through all these one might ask why should they invest their hard earned money in
buying this policy and not any other financial investment product(s) available in the market?
Well, like its name it has 6 major benefits which is illustrated below in details:
1. Pay for only 6 years of the policy term or period
2. Enjoy regular annual pay-out or return from the 8th year onwards to the 13th year or the
maturity year
3. Protection of your family with a life coverage of 13 years
Get comfort and peace of mind with the added benefit of critical illness protection: In an
age of growing health concerns and uncertainties
A lump sum amount is paid out to help in treatment and other expenses; subject to
completion of survival period of 30 days from the diagnoses of critical illness.

Plus the life cover continues till the end of the policy term

Waiver of premium without any added or hidden charges: No further premiums are
payable under the plan
5. Tax Benefits under section 80C of Income Tax Act, 1961: The premiums that you pay
are eligible for deduction under section 80C of the Income Tax Act, 1961. For the Financial
year FY 2016 17 deduction can be claimed under Section 80C up to Rs. 1, 50,000 for the total
payments, contributions made under Sections 80C, 80CCC and 80CCD.
6. The returns are also tax-free income: Incomesurance 6 pay also helps you plan your
taxes, which are eating into your hard-earned money by providing you avenues through which
you can save your income. The benefits received under the plan are tax-free under section
10(10D) of the Income Tax Act, 1961.

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5.1.2 IDBI Federal Lifesurance Savings Insurance Plan (UIN: 135N029V01)

IDBI Federal Lifesurance Savings Insurance Plan is a fixed term non-linked participating plan
that provides with twin benefits of long-term savings and life coverage. With the help of
Lifesurance Savings, small savings of its customer will help them to full fill the big dreams that
they have for himself\herself and his\her family. This plan can offer them the benefit of life
coverage that will provide financial security to their family in his\her absence.

Why should Lifesurance savings plan?

Lump sum pay out at Maturity

Guaranteed Additions to safeguard your savings
Bonuses to boost your savings
Flexibility to plan for your needs
Double Protection Accidental Death Benefit
High Sum Insured Rebate
Lifesurance offers attractive premium discounts, if you opt for a maturity sum insured of
Rs. 10 lac and above.

Advantage Women
Lifesurance offers an additional premium discount for female lives. The premium
payable for a female policyholder will be equivalent to the premium for a corresponding
3 year younger male policyholder.

Exclusive funds for loved ones

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By endorsing your Lifesurance policy under Married Womens Property Act, 1874, you
can create an exclusive fund for your loved ones which is legally protected from creditors
and claimants.

The policy has loan provision of up to 85% on the policys surrender value.

Tax Benefits
Lifesurance allows you to enjoy deductions under section 80C (of the Income Tax Act,
1961) on all premiums paid. The maturity benefit and the death benefit are also tax-free
under section 10(10D).(of the Income Tax Act,1961).

5.1.3 Childsurance Savings Protection Insurance Plan (UIN: 135N032V01)

It is a non-linked participating endowment plan that ensures a childs future financial needs are
fulfilled. Childsurance Savings, is designed to give guaranteed annual pay outs and aid the
important milestones in a childs life. In case of some predicament,that is the parent not being
around, the policy will continue exactly as they have planned it, and the further premiums will be
waived off. In other words, this plan ensures that a child gets to live his/her dream exactly as his
parent has planned, whether or not he/she is around.
Why should Childsurance savings protection plan?

Guaranteed annual pay outs for important milestones

Bonuses to add to your savings

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Immediate pay out of lump sum in case of your unfortunate death
Waiver of future premiums
Plan continues and benefits are paid as planned.
Two tax benefits
Childsurance allows you to enjoy deductions under Section 80C of the Income Tax Act,
1961 on the premiums you pay. It also gives you maturity amount that is tax-free under
section 10(10D). Childsurance offers you tax benefits for all the payouts.

Flexibility to plan for your needs

With Childsurance, you have the option of choosing the maturity sum assured, policy
term, premium payment term, and payment mode as per your childs future needs.

Exclusive fund for your loved ones

By endorsing your Childsurance policy under the Married Womens Property Act,
1874, you can create an exclusive fund for your loved ones which is legally protected
from creditors and claimants.

Loan facility
In case of emergency Loan facility is also available and it is available once the surrender
value is attained.

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5.1.4 IDBI Federal Wealthsurance Growth Insurance Plan (UIN:135L036V01)

This plan is a regular premium unit-linked insurance plan. A plan that gives you freedom to
decide how much you want to invest and for how long you want to stay invested. It gives you an
option to invest in one or more funds from a basket of 9 fund offerings, on the basis of the risk
appetite and financial goals. In addition, it comes with a life cover benefit that ensures financial
security for your loved ones. In a nutshell, a smart investment plan that helps you design your
investments, your way.

Why Wealthsurance growth insurance plan?

Wealthsurance Growth comes with a range of benefits that help you maximize returns on your

Choose how much you want to invest and for how long
Manage your investments as per your risk appetite
Get guaranteed loyalty additions to boost your investment
At the end of the 10th policy year and every 5 years thereafter, you get guaranteed loyalty
additions as a reward for staying invested in the plan. For more details on guaranteed
loyalty additions, please refer the product brochure.

Life Cover benefit to financially secure your loved ones

In case of an unfortunate event of your demise, your nominee will get the death benefit
which is the higher of the sum assured or the fund value at that time. The death benefit
will always be at least 105% of the total premium amount paid.

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Get tax benefits on the premiums paid as well as the benefits received
Tax benefits under section 80 C and 10(10D) are applicable as per provisions of the Income Tax
Act, 1961. You are advised to consult your tax advisor for details. Please note that tax laws may
change from time to time.

How does Wealthsurance growth insurance plan work?

Wealthsurance Growth works in a very simple way. The investment that you make towards your
policy is managed by way of two accounts - a. Investment Account and b. Insurance Account.

a. My Investment Account:
The premium that you pay (less applicable charges) is invested into the funds
chosen and in the proportion as specified by you. IDBI Federal Investment Basket
offers you 9 fund options to choose from, which helps you make an investment
decision as per your risk appetite.
From time to time a customer can check the growth of his wealth.
b. My Insurance Account:
The sum assured can be customized depending upon a clients financial needs.

5.1.5 IDBI Federal Wealthsurance Growth Insurance Plan Single Premium (Product UIN:

This is a single premium unit-linked insurance plan. The most unique feature of this plan is that
customer need to invest only once and then reap its benefit throughout the tenure of the policy
Why Wealthsurance growth insurance plan single premium?

Wealthsurance SP comes with a range of benefits that help you earn maximum returns on your
1. One-time premium payment
2. Choice of 9 funds and the freedom to switch among funds
From the basket of 9 fund offerings a customer can choose his desired fund and he can
even choose to manage that fund on his own. He also has the option to switch between
funds without any switching charges. The company allows an auto-switch option for fund
investments specially engineered for those customers who are unaware of markets.
3. Guaranteed loyalty additions to boost your investment

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At the end of the 5th policy year and every 5 years thereafter, you get guaranteed loyalty
additions as a reward for staying invested in the plan.
4. Easy access to your investment through partial withdrawal
In case of any emergency fund requirement, you can withdraw money from your
Wealthsurance SP policy through partial withdrawals. These partial withdrawals are free
of cost and can be availed of after the 5th policy anniversary. You can withdraw from a
minimum of Rs 10,000 to a maximum of 20% of your fund value at the beginning of
corresponding policy year.
5. Life cover for the financial protection for your loved ones
How does Wealthsurance growth insurance plan single premium work?

Wealthsurance SP works in a very simple way. The investment that you make towards your
policy is managed by way of two accounts - (a) Investment Account and (B) Insurance Account.


In the insurance business the pricing decisions are concerned with:

a) The premium charged against the policies

b) Interest charged for defaulting the payment of premium and credit facility, and
c) Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy
becomes significant. In a developing country like India where the disposable income in the hands
of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low pricing
keeping in view the level or standard of customers or the policyholders. The pricing in insurance
is in the form of premium rates.

The factors used for determining the premium rates under a life insurance plan are mortality,
expense and interest. The premium rates are revised if there are any significant changes in any
of these factors.

1. Human Life Value (HLV): The HLV concept considers human life as a kind of property
or asset that earns an income. It thus measures the value of human life based on an
individuals expected net future earnings.

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2. Mortality (deaths in a particular area): When deciding upon the pricing strategy the
average rate of mortality is one of the main considerations. In a country like South Africa
the threat to life is very important as it is played by host of diseases.
3. Expenses: The cost of processing, commission to agents, reinsurance companies as well
as registration are all incorporated into the cost of instalments and premium sum and
forms the integral part of the pricing strategy.
4. Interest: The rate of interest is one of the major factors which determine peoples
willingness to invest in insurance. People would not be willing to put their funds to
invest in insurance business if the interest rates provided by the banks or other financial
instruments are much greater than the perceived returns from the insurance premiums.
5. Risk: Life insurance provides protection against those risk events that can destroy or
diminish the value of human life as an asset. There are 3 kinds of situations where such
loss can occur- Dying too early, Living too long, Living with disability.
6. Level premium: The level premium is a premium fixed such that it does not increase with
age but remains constant throughout the contract period or policy term.

7. Commission: The commissions paid to the employees or the Agents also constitute in
the pricing strategy.


This component of the marketing mix is related to two important facets

1) Managing the insurance personnel, and

2) Locating a branch.

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The management of agents and insurance personnel is found significant with the viewpoint of
maintaining the norms for offering the services. This is also to process the services to the end
user in such a way that a gap between the services- promised and services offered is bridged
over. In a majority of the service generating organizations, such a gap is found existent which
has been instrumental in making worse the image problem. The transformation of potential
policyholders to the actual policyholders is a difficult task that depends upon the professional
excellence of these personnel, who acts as the face of the company.The insurance personnel
if not managed properly would make all efforts insensitive. Even if the policy makers make
provision for the quality up gradation, the promised services hardly reach to the end users.

It is also essential that they have rural orientation and are well aware of the lifestyles of the
prospects or users. They are required to be given adequate incentives to show their excellence.
While recruiting agents, the branch managers (Agency Leaders) need to prefer local persons and
provide them training and conduct seminars. In addition to the agents, the front-line staff also
needs an intensive training programmed to focus mainly on behavioral management. Another
important dimension to the Place Mix is related to the location of the insurance branches.


The insurance services depend on effective promotional measures. In a country like India, the
rate of illiteracy is very high and the rural economy has dominance in the national economy. It is
essential to have both personal and impersonal promotion strategies.

In promoting insurance business, the agents and the rural representatives play an important role.
Due attention should be given in selecting the promotional tools for agents and rural
representatives and even for the branch managers and front line staff. They also have to be given
proper training in order to create impulse buying. Advertising and Publicity, organization of
conferences and seminars, incentive to policyholders are impersonal communication. Arranging
Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive
through the mobile publicity van units would be effective in creating the impulse buying and the
rural prospects would be easily transformed into actual policyholders.

IDBI Federal has also adopted various promotional strategies like:

1. Commercial Ads
2. Print Ads
3. Events
4. Personnel selling
5. Word of mouth

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6. Viral and quirky marketing

IDBI Federal has a vision to inspire positive change that helps people shape a better future and
live their best lives. Their association with sports and fitness emerge from this vision of shaping
a better tomorrow. With their initiatives, they want to involve professional athletes, families and
anyone interested in sport, to get fit and healthier. They have actively associated themselves with
various events which revolves around cricket, mainly because of the immense love and respect
that the CEO, Mr. Vighnesh Shahane has for the game. As, he believes that in a diversified
country like India, cricket is the only thing that connects us all. Heres a list of all the initiatives
they have taken as a firm step towards their vision:

a) IDBI Federal Life Insurance Mumbai Half Marathon is a prestigious run through
Mumbais coveted landmarks which was held on August 21, 2016. The marathons first
edition saw over 15,000 participants across three categories, 21.1 km Half Marathon, 10
km Timed Run and 5km Run. To top it all, the face of the marathon is the cricket legend,
Sachin Tendulkar. The next edition of IDBI Federal Life Insurance Mumbai Half
Marathon will be held on August 20, 2017.
b) IDBI Federal Life Insurance brings to the City of Joy the first edition of the IDBI Federal
Life Insurance Kolkata Full Marathon. The marathon hopes to bring communities
together to celebrate the spirit of running. Like our Mumbai and Delhi marathons, Sachin
Tendulkar, is the face of this event as well. For more information visit:
c) IDBI Federal Life Insurance and Mumbai Cricket Association (MCA) announced the
launch of MCA-IDBI Federal Life Insurance Bowling Foundation. The foundation has
been established to hone meritorious talent and develop them into first-rate bowlers to
boost the domestic and international cricketing landscape in India.

IDBI Federal Life Insurance has partnered with the Cricket Association of Bengal (CAB) to
support its Vision 2020 project. The partnership will help strengthen state's cricket endeavors,
hone meritorious talent and develop them into high-class players to play for the national side.



It is very important for an insurance agent to know which product will appeal to the customer.
He should be aware of his competitors product in the same space to be an effective salesman
who can sell his company, the product and himself to the customers.

The private companies are looking for educated, aware individuals with marketing flair, an elite
group who can be attracted only with high remuneration and the lure of a fashionable job, all of
which may not be possible in this business with its price pressure and the complexity of selling

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insurance. This segment is not attractive since, they have started easing recruitment conditions as
against the stringent norms they had earlier, thereby diluting the process.


Bancassurance in India is a new concept. In our country the banking & insurance sectors are
regulated by two different entries.

Banking is fully governed by RBI and

Insurance sector is by IRDA

Bank assurance being the combination of two sectors comes under the purview of both the

Banks in India are all pervasive, especially the public sector banks. They became the foremost
channels for distribution of insurance. There are certain tie-ups between the Insurance companies
& banks are given at present days these tie-up are going well, running well & past in the field of


This is a new experience for the insurance customer, accustomed to brokers in financial services,
real estate and travel & tourism. For historical reasons the image that broker carries in the
minds of the customer is not very favorable. Thus the new breeds of insurance brokers face the
challenges of establishing credibility.

The positives are that brokers in the urban arena can attract the elite and the upper middle class
customer. Brokers represent the customer and can sell the products of more than one company.
They seek to determine the best fit for the client and can effectively address the mind block faced
by the public about the various companies. This is applicable in the case of life insurance for the
high-end and corporate/group segment.

Defining consumer behavior

Customer behavior is the study of people, groups, or associations and the procedures they use to
choose, secure, utilize, and discard products, services, experiences or even ideas to fulfill their
requirements and needs. It is likewise concerned with the social and economic effects that
procuring and consumption behavior has on both the individual purchaser and on more extensive
society. Consumer behavior mixes components from psychology, sociology, social
anthropology, marketing and economics, especially behavioral economics. It analyzes how
feelings, states of mind and inclinations influence or affects purchasing behavior.

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The study of consumer behavior is concerned with all stages of purchasing behavior - from pre-
purchase activities through to post-purchase consumption and assessment activities. It is likewise
concerned with all people included, either directly or indirectly, in purchasing decisions and
consumption activities including brand-influencers. It is a difficult task to predict the behavior of
a consumer, even for the experienced pioneers in this field.

Consumer behaviour explains the reasons and rationale that underlie obtaining decisions and
consumption patterns. It tries to explain the procedures or process through which purchasers
make their decisions. The study includes within it's purview, the transaction between cognition,
influence and behavior that goes hand in hand within the mind of a rational shopper during the
consumption process: from choosing or selecting, using and discarding goods and services.

Once the choices have been assessed, the buyer is prepared to make a purchase. Often these
purchase decisions does not convert into a real buy or actual purchase. The degree to which
purchase decisions result in actual purchase is known as the sales conversion rate. Organizations
use several techniques to enhance conversion rates. The arrangement of simple credit or
installment terms may encourage purchase. Sales promotion techniques, for example, the chance
to get a premium or enter a competition may give a "push" to purchase now instead of
postponing purchases for a later date. Promoting messages with a strong "call-to-action" are yet
another strategy used to convert clients or customers. A call-to-action is a strategy intended to
encourage prompt and immediate sale. For instance, "happy hour", where two beverages can be
acquired at the cost of one, is a strong call-to-action since it urges buyers to purchase now
instead of postponing buying to a later time. As customers approach the actual purchase decision,
they will probably depend on personal sources of data. Thus, personal sales representatives,
agents or salesmen must be knowledgeable in providing sales pitches and in strategies used to
seal the deal. Techniques used may include: 'social evidence', where the sales representative
refers to past achievement and satisfaction from different clients purchasing the said product or
service. 'Scarcity attraction' is another strategy, where the salesperson specifies that the offer is
limited, as it forces the purchaser to settle on a quicker decision, and subsequently less time
assessing alternatives.

In the insurance industry both these above mentioned techniques plays a vital role in converting
a client.

After the actual purchase has been made, the shopper enters the last stage, to be specific post-buy
assessment. The shopper's buy and post-buy activities can possibly give vital feedback to the
producer or marketer. The post buy stage is where the purchaser examines and compares the
product features, for example, value, usefulness, and quality corresponding with their
expectations and desires. Post purchase assessment can be seen as the means taken by customers
to correspond their desires with perceived value, and therefore impacts the buyer's next buy
choice for that good or service. For instance, if a purchaser purchases a new shirt and his or her
post-buy assessment is positive, he/she will be urged to buy a similar brand or from a similar

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organization later on. This is otherwise called "post-purchase intention". On the contrary, if a
customer is disappointed with the new shirt, he or she may take actions to resolve the
disappointment. Consumer actions, in this scenario, could include asking for a refund, making a
complaint, choosing not to buy a similar brand or from a similar organization later on or even it
could escalate to severe damages to image of the organization as the customer might as well
spread negative product reviews to his/her peers and acquaintances, even using social media for
this purpose.

After procurement, consumption or disposition, customers may feel some uncertainty concerning
the choice made, giving rise to, sometimes regret.

In insurance industry, customer lifetime value (CLV) gives a strong competitive advantage and
helps in sustenance. And post-purchase services plays a vital role in it. Customer lifetime value
is a projection to estimate a customers monetary worth to a business after factoring in the value
of the relationship with a customer over time with respect to his/her past, present and future cash
flow. It helps the business in 3 basic ways:

1. To acquire more customers,

2. To retain more customers, and
3. To increase customers profitability

Purchasing behavior is additionally affected by a range of internal as well as external influences,

for example, psychological, demographic and personality factors. Demographic factors include
income level, lifestyle, age, occupation and socio-economic status. Personality factors include
knowledge, attitudes, individual values, beliefs, emotions and feelings. Psychological factors
include an individual's inspiration, states of mind. Other variables that may influence the
purchase decision include the environmental factors and the customer's prior experience with the
category or brand.

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Consumer decision-making style is defined as a mental orientation characterizing a consumer's
approach to making choices. Consumers decision making style can be ascertained using the
various factors, such as price-sensitivity, quality-consciousness, brand-consciousness, novelty-
seeking, fashion-consciousness and habit.


The main objective of this project is to study the consumer behavior and various reactions of
customers with reference to IDBI Federal Life Insurance Co. Ltd. And suggest ways to improve
its marketing efforts.

1. To analyze the investors perception about IDBI Federal.

2. To study the investors behavior with respect to IDBI Federal Life Insurance.
3. To study the ever-changing trends in life insurance market.


Sample Size: 32 respondents responded to the pre-designed questionnaire.

Period of Study: 45 days (12th April- 27th May, 2017)

Location of Study: Kolkata and adjoining region (Hooghly, Ichapore, etc.)

Methodology: Obtaining firsthand information by pitching to customers and getting the survey
filled from them about the insurance products of IDBI and acquiring their views and beliefs
about overall insurance products and hence picking up the areas where we are good and also the
areas where our way of working can be improved in order to enhance customer satisfaction and
increase the business.32 respondents responded to the pre-designed questionnaire.

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1. Age distribution

Age(as on the last birthday)

15-18 19-25 26-30 31-35 36-55 56-60 61-80

Number of Respondents

2. Gender

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Male Female Others

3. Occupation

12 11

6 5

4 3
2 1
0 0
0 Number of Respondents

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4. Gross Annual Income

Annual Income
12 Lakhs and above
15% Below 1 Lakh
8-12 Lakhs 23%
Below 1 Lakh

5-8 Lakhs 1-3 Lakhs

3-5 Lakhs
5-8 Lakhs
8-12 Lakhs
12 Lakhs and above
1-3 Lakhs

3-5 Lakhs

5. How do you come to know about various life insurance products?

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Source of Information




Direct mail



Agents/Field sales representatives



0 2 4 6 8 10 12

Number of Respondents

6. Do you currently have an insurance policy?

Number of Respondents




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7. Reasons for not possessing an insurance policy

The only respondent who did not have an insurance policy feels that purchasing an insurance
policy is not affordable with his income. And moreover, he presently, does not have anyone who
is financially dependent upon him.

8. If yes, then which companys?

While conducting this survey, I found out that several people had multiple number of insurance
policies from various companies, while almost everyone in my survey list had atleast one LIC

Kotak Mahindra Old LIC
Mutual Life Insurance 4%
8% ICICI Prudential
IDBI Federal
4% Bajaj Allianz
2% HDFC Stanard

SBI Life
Birla Sun Life


SBI Life
Birla Sun Life LIC
6% 57%

IDBI Federal

HDFC Stanard
9% Kotak Mahindra Old Mutual Life
Bajaj Allianz ICICI Prudential
2% Other

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9. What prompted you to buy policy from that company?

Brand image and trust


Past record of performance


My friends/acquaintances have bought from there


Marketing personnel/Agent convinced me to buy


Desire to try out a new company



10. Are you a customer of IDBI Federal Life Insurance Co. Ltd.?

Customer of IDBI Federal




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11. If NO why not?


I am not in the financial condition to invest right now

I already have 1 or more policies and I am satisfied with


I get better returns in other policies

0 2 4 6 8 10 12 14 16 18

I already have 1 or more policies and I I am not in the financial condition to

I get better returns in other policies
am satisfied with them invest right now
Reason 4 17 10

12. If YES, what do you like about our policies?

Feedback No. of respondents

It gives me good return 2

It has short policy term period available 2

Tax benefits are good 2

Claim settlement period is quite fast 1

13.What suggestions would you provide to make our products better?

Suggestions No. of respondents

Minimum premium amount should be lesser 5

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Monthly payment option should be available 6

14. Suggestions for better functioning of IDBI Federal

Suggestion Number of Respondents

More marketing/promotions should be done 5

Policies should have something unusual, as people 8

already possess policies from other companies, so
they are not attracted by yours.

Should open more branches at remote locations. 3

Limitations of Study:

1. The study was conducted only in Kolkata and adjoining areas, hence the results can
be somewhat biased.
2. The survey was to be conducted on 50 odd respondents but due to time constraint and
unavailability of large number of respondents, the survey was filled by 32 people
3. The survey includes more number of responses of people within the age group of 18-
30. Hence, the study may be biased, and may not be completely accurate. Because at
that age, income is significantly less and people dont have anyone who is financially
dependent upon them, thus they take life insurance lightly.

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1. There is a good amount of people in the age group 18-30 who have not bothered to buy a
life insurance policy because they are very sure that nothing would happen to them as
they are fit and fine.
2. People prefer to buy a policy which has less years of premium payment term.
3. More than life insurance, people are interested in a savings scheme. The better savings
plan they get, the more is their tendency to buy the policy.
4. Very less people are interested in a pure life insurance policy.
5. Tax benefits are also a major factor why people like to buy a policy.
6. Customers are willing to pay through easy payment options such as ECS and online
payment so that their valuable time gets saved.
7. They are interested more in monthly premium payment options rather than annually or
half yearly.
8. Friends and family are major influencers on customers when it comes to the decision of
buying a life insurance policy.
9. LIC is still the market leader in life insurance sector.
10. Brand image and past record of performance are major stimuli in buying decision.
11. IDBI Federal has limited reach to prospective customers as compared to other companies.


Minimum premium is higher in context to Indian customers

For promoting child plan , drawing competition can be conducted in play schools
Person of high values can be influenced to join IDBI Federal as Agents, to promote the
brand more efficiently


4. The study was conducted only in Kolkata and adjoining areas, hence the results can be
somewhat biased.
5. The survey includes more number of responses of people within the age group of 18-30.
Hence, the study may be biased, and may not be completely accurate. Because at that age,

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income is significantly less and people dont have anyone who is financially dependent upon
them, thus they take life insurance lightly.

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