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Security and constant search for security have been an unending endeavor of human race since the beginning of the civilization. From the Rock man to Iron Age man, from the Medieval Conservative to today Longhair and Techniques, this search has brought out innovative ideas. 'The irony of man's condition is that the deepest need is to be free of the anxiety of death and annihilation; but it is life itself which awakens it, and so we must shrink from being fully alive." -EARNEST DRUCKER Financial stability of an individual is a vital factor for the successful running of a family. A family depends on the income of its breadwinner for its sustenance and for maintaining a chosen standard of living. Every family will have certain aspirations- to have a decent life, to provide a standard education to children leading to their worth while employment, to arrange and celebrate suitable marriage for daughter, to own a roof to lie under and to have good medical facilities to all the family members. All these depends on the regularity with which the earning members of the family, especially the breadwinner, bring income to the family and the family's spending and savings habit. Though death, natural or otherwise, takes the breadwinner permanently away from the family, what is inevitable to consider is the Economic Death of the person. "Security can be thought of as peace of mind and freedom from uncertainty. Insecurity implies feelings of doubt, fear and apprehension. Security is measured by the probability. Security has been a universal desire, right from the earliest
civilizations. This quest for security has been a major motivating force in the progress of mankind. Gradually, as lifestyles changed and as man progressed into a modern industrialized setup, this comprehensive quality of the family vanished. One had to look for other ways of providing economic security and somewhere along the line was born the concept of "Insurance". Although the modern version of insurance was far to seek, there had been several ways of looking for partial or total relief from potential financial losses, or in a nutshell, for transfer of risk. The word 'Insurance' instills a sense of security in the minds of people. Insurance is a part of financial system that takes care of the financial consequences of certain specific contingencies both in case of individuals and corporate bodies. Insurance neither prevents risks non-altars the probability of its occurrence, but reduces the extant of financial loss by transferring risks from one individual to a group. Economic activity and growth are greatly facilitated by the market in mobilizing the savings and allocating them among competing users. Economic needs institutions that impartially enforce property rights and contracts. Economic growth depends on the existence of a well functioning financial market, it is essential that the financial infrastructure is developed sufficiently so that the market operations are efficient.
Need for the Study:
The new liberalized and reformed insurance sector has a great fui New companies have shown a real scope for improvement in the insurance market in the past few months Visakhapatnam. The city has seen companies entering into the market . The companies have seen great pott in the unexplored market and they have brought about intensive penetrate the field. This has brought about competition for LIC of India which was only player in the life insurance market. The study is focused to find out the buying behaviour and the factors influencing the purchase of Life Insurance policy by an individual. Also the study is to find out the perception of the individuals of the companies operating in Visakhapatnam. The study is to elaborate the purchase pattern competitors strategies adopted but the companies in the city.
Objectives of the project
To analyze the service mix. offered by the different insurance companies with special reference to ICICI Prudential Life Insurance services. To understand the customer requirement, make a need analysis and offer him a customized solution. To understand the extent of usage of insurance as a savings and investment option To know the response of people regarding private insurance companies and its products.
Collection of data:
Marketing research depends on two kinds of data i.e.. primary and secondary. Primary data consists of observing phenomena and subsequently surveying respondents. The study requires primary data for learning the customers' perception about private life insurance. The company supplies the database required for the study.
Primary data collection involves the following steps:
• • • • Meeting the clients as per the information provided by the database. Scheduling the appointments from customers through call convenience. Trying to know customers perception towards private life insurance. Convincing them about the benefits of life insurance. Secondary data marks the beginning of the marketing research process. Information is gathered from both internal and external sources. Secondary data is required to gain an insight into the private life insurance products. Secondary data is gathered through journals, magazines, brochures and web sites.
The research instruments and techniques used are as follows: Questionnaire: A structured questionnaire has been used to conduct the survey, which consists of a set of questions related to the company and the basic questions relating to the insurance industry. Sampling plan: The next step after the survey is to decide upon the sample size, sample unit, and procedure.
Reporting research findings: This phase of the survey includes the research findings. the business agents all are taken into account. As the time is short. the geographical limitation is restricted to the city of Visakhapatnam. hence shortage of time is a big limitation for this survey. which requires large sample and lot of time. Sample unit: The sampling unit consists of who is to be choosing as a target to commence the survey. According the survey done all the area covered is to be taken as the sample unit. The research findings help in the decision making of the gathered facts. . The marketers give the research findings to speed up the decision making process. The sample of the entire insurance sector has been taken into consideration in the Visakhapatnam area. It is not restricted to one area or a single individual but also the employees. a probability sample of the population should be drawn. which may not be true in all responses. One big factor to consider is the assumption that the Respondents will be honest while responding to the questionnaire. Sampling procedure: To get a sample representative of the entire population. LIMITATIONS The survey is conducted to know the consumer perception.
000 of other expenses and profits i.000/ 1000 = Rs.00..000. interest of the insured. group of people who are subject to an insurable risk contribute regularly and the fund so created is utilized to compensate those unfortunate few members .00. but the pecuniary. This means that insurance provides a pool to which many people contribute a certain sum of money cal the premium and out of which the insurer compensates the few who suffer losses. valued at two crores of rupees and total number of ships expected to be on voyage per year is calculated to be say 1000 shi] them the premium for each ship may be at 2. 20. Rs. It involves pooling of risks.000 Say Rs 2. Thus it can be se that insurance is a device by which an insured person can protect himself from the heavy loss likely to be caused by an uncertain event in exchange of money as premium. Insurance therefore does not protect the material property which is the subject matter of insurance. 22. Nature of Insurance: Insurance is a means of spreading risks.e. It can merely provide financial compensation for t effects of misfortune. For example the likely loss of ships on voyage on a particular route estimated to be ships per year. It may be noted that insurance cannot prevent loss of property of good by fire or other perils. By insurance the risk is transferred from individual to the insurer w takes into account the total likely loss in a certain period and then fixes 1 premium to be charged from each person insured.CHAPTER-II INDUSTRY PROFILE Evolution of Insurance: Insurance may be defined as a cooperative device to spread the caused by a particular risk over a number of persons who are exposed to it a who agree to insure themselves against that risk.
40 lakhs by fire during the period of insurance then the owners of those houses will be indemnified out of "the fund. In this way all members share the loss of a few as an equitable basis. For instance. Classification of Insurance: The risks. Rest of the money will be utilized to meet the expenses and profits of the insurance company. Thus. insurance may be defined as a contract in writing under which one party agrees in referrer for a consideration to indemnify the other party against the loans or "damage suffered an account of an uncertain future event or contingency or to pay a specified such on the happening of a specified event. let us assume that in a city 1000 house . Every house-owner will make same payment for the insurance cover. Suppose the total insurance fund created by contributions is Rs. 50 lakhs and ten houses suffer a total loans of Rs. It plays in role in the life of every citizen and has developed in recent times enormous scales leading to the evolution of many different types insure Even singers can insure their voice and dancing girls can get their legs ins so that their singing or dancing skill declines the insurance company pays the policy amount. In other words there must be valid of the acceptance and free consent the parties must be competent. which can be insured.of the group who actually suffer a lone due to same unexpected calamity. Insurance can be broadly divided into: •Life Insurance •General Insurance Governance of Insurance Business: The insurance business in India is governed by the following Acts: - .owners decide to insure their houses against fire. Insurance is a sock device for pooling and dividing risks among a large number of persons. Contract of insurance must fulfill all essential requirements of a valid co as defined in the law of contracts. Some houses are likely to get fire but the probability that all will burn is very remote. have increased in number and owing to the growing complexity of the present day economics Insurance thus occupies an important place in the modern world.
So much good following from this arrangement that the trades adopted the idea in many lands and gradually there come into existence groups of men who specialized in managing the funds and studied the rates of loss which occurred in the different types of marine ventures. This was the beginning of insurance and is called as 'Marine Insurance'. 1956 •The Marine Insurance Act. •The General Insurance Business (Nationalization) Act. HISTORY OF LIFE INSURANCE: In early times men who engaged in trade by sea attempted to minimize the largest which resulted from the perils of the sea by spread in the largest amongst a large number of persons who are similarly engaged. The earliest available reference to some form of insurance is found in the codes of Hammurabi and Manu.C. however the early history of insurance is hidden the mists of antiquity. scientific life assurance is a heritage from England the 'American Society' granted fluctuating sum on death. 1938 •The Life Insurance Corporation Act. The development of morality tables was a land mark in the history of life assurance with this development life assurance acquired a scientific character. Naturally many ships arrived safely in port and it was only a few that suffered loss.•The Insurance Act. Rhodesians and Greeks about the middle of third millennium B. The early development of insurance was spasmodic and was restricted mostly to the fields other than life.. 1963. 1972. The many who did not suffer loss contributed to mitigate the sufferings of the few who did. . The term YOGAKSHEMA is used in the Rigveda suggestion that same form of community insurance as participated by the Aryans in India over 3000 years ago. Evidence is available about crude forms of maritime contracts made by the baby larians. The equitable society found in 1762 was the first to be founded on a scientific basis with premiums computed according to age and period of insurance on the lives of the humans.
Life Insurance in short is concerned with two hazards that stand across the life path of every person. The contract also provides for the payment of premium periodically to the corporation by the assured life insurance universally acknowledged to be an institution.MEANING OF LIFE INSURANCE: Life Insurance is a contract under which the insurer in consideration of a premium paid either in lump sum or by monthly. has an insurable interest in the life of his . half-yearly or yearly installments undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. but should death suddenly intervene the family may be left in very difficult situation and some times in stake poverty Uncertainly of death is inherent in human life. •Person has an unlimited insurable interest in his own life •A •A •A husband/wife wife/husband father creditor has has an on interest his on his and son/daughter a further on has whom interest he on is dependent. The subject matter of insurance is human life. It is a contingent and not a contract of indemnity. quarterly. substituting certainly for uncertainty. A family is generally dependent on the income brought in at regular intervals by the breadwinner of the family for its food. clothing and shelter. which eliminates 'risk'. that of dying prematurely leaving a dependent family to fend for itself and that living to old age without visible means of support. debtor his copartner. As long as the income is received steadily that family is secure.
improves the continuity. Provision for old age: Through life insurance. Funds for investment: It mobilizes the public savings and channelises th productive investment for the economic development of the country. It en person to provide for education and marriage of children and for constru* . Life Insurance provides protection to the dependents of th assured in case of his untimely death. I important institution for the mobilization and investment of small saving Commercial Value: Life collateral insurance seci policy can It be used as a raise loans. The dependents get a large sum in case c the death of their breadwinner. Promotion of Thrift: Life insurance encourages people to save money compulsorily Once a life policy is taken. the assured has to pay premiums regularly to keep the policy in force and he cannot get back the premium. Social Utility: Life Insurance has significance for the society aiso. a person can make provisions for hi old age. After is substantially reduced. He cannot maintain his standard o living without substantial livings.ADVANTAGES OF LIFE INSURANCE: Protection against premature death: . and credit worthiness of business. In workers and other poor people can save through life insurance.
house. In case of death the full sum assured is made available under assurance policy. it affords full protection against death. Superior to an Ordinary Savings Plan: Unlike other savings. .
|jclisttabTax Relief: Income tax act allows deduction from tax payable. General Insurance: It is known as non-life insurable. It is the contract under which on party in return I consideration agrees to indemnify the other party for the financial loans. a£ . which is diverted to payment of premiums. We can classify general insurance three branches. he can tide over a temporary difficulty by taking a loan on the sole security. in the manner and to the extent thereby agreed. a certain percentage of portion of the taxable income. Ready Marketability: After an initials period. if the policyholder finds himself to continue payment of premiums he can surrender the policy for ca Alternatively. Marine Insurance: It is an agreement under which the insurer undertakt indemnify the insured. v the latter may suffer due to damage to the property insured by fire during specific period of time and up to an agreed amount.
marine losses or loses incidental to marine adventure. Miscellaneous Insurance: Some of the other types are: • • • • Personal accident insurance Burglary insurance Credit insurance Workmen's compensation insurance .
the policy. it must present at the time the HISTORY AND EVOLUTION OF LIC INDIA: There has been life insurance business in India since 1818 till 195( insurance business was mixed and decentralized.COMPARISON OF LIFE INSURANCE AND OTHER FORMS: Subject matter: Life insurance is related to Life insurance is a human life and others . Surrender Value: Life Insurance has surrender value i. related to property. the question of surrender value d not arise. In other forms. Periods of Contract: Life insurance is a continuing contract while others are shortterm contracts. value before maturity in other forms of insurance. Nature of Contract: contingent contract and others contracts of indemnify. Insurable Interest: In life insurance.e. There were a large numb . Purpose: The basic aim of life insurance is to provide protection against premature death and the purposes of other forms is to protect property against loans or damage. it must be present at the time of taking loans occurs.
which conducted only life insurance business and there were some companies whose r business was general insurance but they did life insurance also. In 1956. So: British officers issued the lives of its officers. The swadeshi movement of 1905 provided impetus to the formulation of general companies such as the “Hindustan Co-Operative” the “United India” the “Bombay Life” and the “India mercantile”. Since that day the corporation is having the exclusive privilege of carrying on Life Insurance business in India. This has been established by an act or parliament which received the assert of the president and corporation begin to function on September 1956. the life insurance business of all companies was national: and a single monopolistic organization. The first organized effort establish a life insurance office in India was made in 1870 with the formation the Bombay Mutual Assurance Society Ltd. A few years later the “Bharat” (1896) and the “Empire of India” (1897) were established. sizes and pattern of organization. The early history of modern insurance in India is some what obscure. . the Life Insurance Corporation (LIC India was set up. 1 earliest references are traceable to the days of the East India Company.companies of different ages.
Ii addition to these insurers. t few of these were foreign companies with their head offices outside India. government enacted tl insurance act. it was found that the concept of trusteeship of life which should seemed be the cornerstone insurance entirely .The Government began to exercise a certain measure of control ( Insurance Business with the passing of the first Insurance act in 1921 with view to establishing closer supervision and control. approximately 170 insurance offices and 80 provider societies had been registered for transacting Life Insurance business in India. a large number of other insurers who had registered themselves for transaction of Life Assurance Business had either gone into liquidation or had been taken over by the existing insures. This act was amended in 1950. In the year 1955. The government of India took the first step towards nationalization of Lil Insurance Business in India on the 19lh January 1956. REASONS FOR NATIONALIZATION: In the year 1955. 1938. approximately 170 insurance offices and 80 provide! societies had been registered for transacting Life Insurance business in Indi. From a study conduct.
Avoiding wasteful efforts wasteful efforts in completion companies.lacking and most management's had no appreciation of the clear and vital distinction that exists belonged to joint stock companies owned by the shareholders. 4. 2. Therefore it was felt necessary to nationalize insurance business in India with a view to: 1. Saving the dividends paid to shareholders to insurance. Ensuring the use of life insurance funds for nation building activities. 6. Providing for cent percent security to Policy – holder. Spreading the gospel of insurance beyond the more advanced urban areas well into the higher to neglected rural areas. 3. Evolution Insurance Market of Lets have a brief look into the evolution of the . Avoidance of certain undesirable practices adopted by some of the Insurance Companies Management. 5.
the life insurant business was nationalized & monopoly vested with Life Insurance Corporation (LIC). But then in 1956. 1938: Earlier legislation was consolidated and amended by the Insurance Ac with the objective of protecting the interests of the insuring public. 1956: 245 Indian and taken foreign over insurers the and provident societies by Central in Kolkata. LIC Act. a large number of organizations were managing lift insurance and general insurance businesses. with a capital contribution of Rs. LIC formed by an Act of Parliament viz. 1928: The Indian Insurance Companies Act enabled the government to collect statistical information about both life and non-life insurance businesses. Similarly in 1972.. Some of the important milestones in the life insurance business in India Government were nationalized. which has come a long way starting 1818. .. 1956.org ) Prior to 1956. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.insurance market.ciionline. (Source: www. 5 cr from the Government of India.
1998. and . Oriental Fire & General Insurance Company Limited & United India Company Limited. and that the promoter's stake in the otherwise widel. held company should not be less than 26 per cent and not more than 40 per cent. when an expert committee was set up under the chairmanship of late R. N. Central approved the Bill.the general insurance business was nationalized & started to be managed by General Insurance Corporation (GIC) and its four subsidiaries namely National Insurance Company Limited.opened up to private firm subject to the conditions that a private insurer should have a minimum paid u capital of Rs. Subsequent to the submission of its report by the Malhotra Committee to there were the several abortive In attempts November introduce the Insurance Cabinet Regulator Authority (IRA) Bill in the Parliament. The first sign of government concern about the state of the insurance industry was revealed in the early nineties. put Amongst in by the the various Malhotra recommendations Committee. the most important was recommending that the insurance industry be . 100 crore. New India Assurance Company Limited. which envisaged a ceiling of 40 per cent for non-Indian stakeholders: 26 per cent for foreign collaborators of Indian promoters. Malhotra.
in view of the widespread resentment about the 4( per cent ceiling among political parties. the Bill was referred to he standing has committee since of on finance. SHIFT PUBLIC OF TO INSURANCE FROM . However. 200 crore. Today.14 per cent for nonresident bodies Indians and (NRIs). the Indian Insurance market stands wide open and has attracted a host of global players. foreign overseas corporate (OCBs) institutional investors (FIIs). that for The each committee the three recommended business-lift private company be allowed to enter only one of areas foreign stakeholders in these companies be reduced to 26 per cent from the proposed 40 per cent. the amount proposed by the Malhotra Committee. due to these developments. The committee has also recommended that the minimum double paid up share capital of the new insurance companies be raised to Rs.
insurance the was formed and to evaluate the its Indian future Teforms industry of recommend direction.N. The Malhotra Committee was set up with objective complementing the initiated in the financial sector. The Malhotra . The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall .financial system where it was necessary to address the need for similar reforms. Malhotra.PRIVATE SECTOR: Malhotra Committee Reforms in the Insurance sector were taken up in 1993 when Malhotra Committee. headed by former Finance Secretary and RBI Governor R.
j. Structure Government stake in the insurance Companies to brought down to 50%.l bn should be allowed to enter the . in collaboratic with the domestic companies An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from paid up freedom capital operate Competition Private Companies with a of Rs. c.Committee's Report suggested: a. Government holdings of should GIC take over the and subsidiaries so that these subsidiaries can act as independent corporations. Foreign companies may be allowed to enter the industry i. All the insurance companies should be given greater minimum industry d. No Company should deal in both Life and General Insurance through single entity. b. e.
The IRDA since its incorporation as a statutory body in April 2000 has fastidiously regulations stuck and to its schedule the of framing sector registering private insurance companies. The Insurance Regulatory and Development Authority Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. proposed setting up an independent regulatory body. The approval would of institutions a for imparting workforce training to agents has ensured that the insurance companies have trained . it with had economic motives.the Finance independent k. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA's online service for issue and renewal of licenses to agents. Ministry) should be made Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% IRDA: The Malhotra committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent For this companies purpose.
Since being set up as an independent stat body the IRDA has put in a framework of globally compatible regulation the private sector 12 life insurance and 6 general insurance companies been registered. It is v with the power to make regulations consistent with the act to carry out the purpose of the act. Objectives: To provide for the establishment of an . employee's etc.insurance agents in place to sell their products. Insurance Regulatory And Development Authority(IRDA)Act.5 whole time members a part-time members. all with tenure of five years. consumers. • IRDA is constituted with one chairperson. • There will be an advisory committee consisting of 25 members to ac IRDA in its day-to-day activities representing commerce. which are expected I introduced by early next year. GOVERNMENT POLICY: IRDA: It's a statutory Autonomous board created to perform the role c effective watchdog and regulator for the insurance sector in India. industry agriculture. 1999.
Insurance business is opened up to private sector thus ending the monopoly of LIC/GIC. suspend c cancel such registration. to regulate. 5.Controller of insurance ceases to exist and all his function are vested wit IRDA.authority to protect the interests of holders of insurance policies.Participation of foreign companies in collaboration with Indian Insurance companies is allowed. Duties. 2. modify.Appointment of chief agents and special agents is revived. Important changes brought through IRDA act: 1. withdraw.The concept of insurance brokers is introduced. subject to the condition that the foreign Company's share capital shall not exceed 26% of the paid-up capital c the Indian Insured. renew.Issue certificate of registration. powers and functions of IRDA: 1. 2. 4. promote and ensure orderly growth i the insurance industry. 3.Protect the interest of policyholders in all matters concerning the term and conditions of contracts of insurance including settlement of .
Specify the form and manner in which books of connected with insurance accounts shall be maintained and statement of accounts be rendered by Insured. intermediaries advisory committee.Regulate investment of funds by insured.insuranc claims. 5. The Huge Potential .Specify requisite qualifications. 9. 6. insurance intermediaries and other organizations business.Undertaking inspections and conducting audit of insured.Promote efficiency in the conduct of insurance business. 8. code of conduct and practical training fo insurance intermediaries and agents. surrender value of policy etc. 3.Adjudicate dispute or between insurance Insurers and intermediaries 11. Specify the percentage of insurance business to be undertaken by Insured in the rural and social sector. 7.Promoting and regulating professional organizations connected with insurance and reinsurance business and specify percentage of Premium income to be spent by insured for this purpose. 4.
MAJOR PLAYERS: . industry. Global players have set their eyeballs on Indian market. there are prese around 12 life insurance and 10 general insurance companies operating in Ii with more players expected to come in.7 bn will grow to bn by the end of 2007.Though the sector has been opened for pri participation just a year ago. The Ini market is no doubt one of the biggest markets in the world. The third largest emerging market in the world today. With the opening of the insurance sector.of the Indian Market Insurance is u for the Taking: The fifth largest insurance market in Asia. Insurance sector accounting for 3% of GDP and we have a population more than one billion. According to experts of the. Indian Life Insurance Sector of $7. it has already witnessed a severe competi among the players.
The company has recorded premium during the year Apr 2002 to Mar 2003 in Rs. 170 crores number o policies issued 1. said about the company "We believe our adviser are our Brand Ambassadors".Different companies existing in life insurance sector: BIRLA SUN LIFE: Birla Sun Life Insurance Company was formed on 31.000 policies.01. 45. The unit- . Birla Sun Life has focused on unit-linked Insurance instead of traditional insurance. The CEO of Birla Sun Life is Mr. Nani Jhavari. Birla Sun Life is joined venture between Aditya Birh Group and Sun life Financials.2001 with the Registration number 109.
10. The company has recorded the premium during the year Apr 2002 to Mar 20( Rs. "Insurance is all about protection and then savings and investment ". The difference between HDFC Standard Life and other companies is it concentrated more in whole life and term plans. HDFC Standard Life gets the half of its business from term assurance plans.linked products where the premium is demarcated between "insurance and investment come with minimum guaranteed returns. 13'2. MAX NEWYORK . The consumer was given three investment options. which carry various levels c risk. Deepak Satwalekar said. where the sum assured is large but premiums are low. HDFC Standard: HDFC Standard life was formed on 23.2000 with Registration number 10 It is a joint venture between HDFC and Standard Life. The CEO of HDF Standard Life is Mr.7 crores and number of policies issued 142857.
Anuroop Singh says. SBI LIFE: SBI Life was formed on 30.5 lakhs account .000.03. The CEO of SBI Life Mr." SBI Life is piggybacking on the parent bank to sell its products it selling insurance products to SBI's deposits holders at rupees 25 a month for one lakh cover. R Krishna Murthy says "our strategy is to weave life under back of bank products as quick way to penetrate and avoid adverse selection.2000 with Registration number 104.8 crores and number of policies issued 1. 43. Max New York Life has more concentrated in whole life and term plans. "Whole life policies offer the right balance between protection and savings'1.2001 with Registration number 111. Max New York Life has recorded of premium in between Apr 2002 to Mar 2003 in Rupees 76.11.The CEO of Max New York Life is Mr.LIFE: Max New York Life was formed on 15. and has tapped 3.
holders so far. SBI Life has concentrated more on offering built around banking products. for villages rupees 10 per month for rupees 25. LIST OF INSURERS IN INDIA Life Insurance Corporation of India 1CICI Prudential Life Insurance HDFC Standard Life Insurance Birla Sun Life Insurance OM Kotak Mahindra Life Insurance Allianz Baiai Life Insurance Max New York Life TATA AIG Insurance SBI Life Insurance ING Vysya Life Insurance Aviva Life Insurance AMP Sanmar MetLife India Insurance .000 cover.
25 Company Name No of Policies Issued ICICI PRUDENTIAL 246827 BIRLA SUN LIFE 145000 HDFC STANDARD LIFE 142857 MAX NEW YORD 143000 SBI LIFE 18000 TATA AIG LIFE 91500 ALLIANZ BAJAJ LIFE 69656 OM KOTAK MAHINDRA 36836 ING VYSYA 25000 AVIVA LIFE 20000 AMP SANMAR 16000 (Source: IRDA website 2003) . Premium in crores 364.8 72.The performance of private Life Insurance Companies in terms premium and number of policies Issued.7 76.8 59.8 53.9 170 132.8 34 17 25 8.
10% 7.20% 5.10% 7.50% 6.50% 15.80% 13.30% .40% 1.T H E PR IVAT E LIFE IN S U R AN C E C O M PAN Y VALU E 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 ICICI Max New York Life HDFC Standard Life BSL Bajaj Allianz CM Kotak SBI Life ING Vysya Met Life AMP Sanmar Tata AIG Aviva Life 37.10% 1.80% 0.50% 3.60% 0.
Branding : The companies have started branding their . Roya Sundaram Alliance & Birla Sun Life have started call centers with toll-free numbers. Players have also been able to respond to changing customer needs by developing innovative online life insurance products. ICICI Prudential Life. Tata AIG & ICICI Prudential also have an arrangement with rediff.com by which one can e-mail a request for a visit by agents. Some of these services can be listed down as: E-service: A number of companies like Tata AIG. almost half of the people out of the total number when have dialed end up taking a policy. Through this. like new community offerings to target customers such as worksite marketing. affinity groups and SME portals.Add-On Services: All players are trying to give various add-on services in an attempt to boost their brand image.
Branding the products & serviced have become important to fuel growth. Birla-5 Life's portfolio has unit-linked products which incorporate various guarantee ICICI-Prudential and Old Mutual Kotak Mahindra have launched unit-linked and unitized . and guarantees insurability. waiver premium. critical illness. and most companies are offering a choice riders. Max New York Life's brand aims to provide comprehensive risk protection in a country where a large population is either un-insured or underinsured. they represent over 90% of r business for Max New York Life). covering benefits such as accidental death. Several the new companies have launched unitlinked products (for instance. total and permanent disability.products in order to sustain in an increased competitive environment. Protection plans are being sold abundance by some companies (for instance. Innovative Products : New companies have introduced a wider range of products along with more needs-based selling techniques.
.with profit products respectively.
only a very small percentage of it is actually having insurance cover. which attracting a host of foreign Moreover. Downward pressure on core banking business is forcing ban to increase non-interest income.Distribution: Before liberalization. banks. players need to integrate their multiple distribution channels. integration of information systems with external partners is also a significant . Undoubtedly there is a large untapped market. to provide a single view o the customers across all the channels. and so to seek fee generation from to provision of other services such as credit cards. The Indian Insurance Industry is still at its nascent stage. With i population of over a billion. cash management service distributors of insurance products. However. with several seeking also to become holder of equity in insurance joint ventures. to succeed in future. One of the greatest challenges is to integrate customer information collected from all channels. distribution was entirely via agencies. issue. T objective of many of the new entrants is to implement multichannel strategies including selling of a significant insurance bancassurance produce through element.
3.66 crore loss in 2001-02 against profit of Rs.Pending cases in third party claims stood at 2. Ltd Bajaj Allianz General Insurance Co. Ltd Tata AIG General Insurance Co. Ltd 1.74. . Ltd Royal Sundaram Alliance Insurance Co. Ltd Oriental Insurance Co.Loss in motor third party portfolio stood at Rs 246. NON-LIFE (General insurance company's) National Insurance Co. LTD. United India Insurance Co. 2. Ltd IFFCO Tokyo General Insurance Co. Ltd Reliance General Insurance Co.22 lakh.and private players.Incurred Rs 235.4 crore. Ltd New Indian Assurance Co.18 crore in 2000-01. It has become extremely important to take a favourable position by the insurance companies to grab i significant market. Ltd ICICI Lombard ^General Insurance Co.
In the yea ended March 31.000 crore and premium income in excess of Rs 980 crore. as well as 11 banc assurance tie-ups .000 policies . for j total sum assured of over R. a leading international financial services group headquarters in the United Kingdom ICICI Prudential was amongst the first private sector insurance companies t begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 30. Today the company is the # 1 private life insurer in the country.CHAPTER-III COMPANY PROFILE INTRODUCTION: ICICI PRUDENTIAL LIFE INSURANCE: ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. 8. the company had issued over 430. . 2004 .75 billion with ICIC Bank and Prudential pic holding 74% and 26% stake respectively. 6.000 advisors . a premier financial powerhouse and Prudential plc. ICICI Prudential's equity base stands at Rs.
Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policy holders. We do believe that we are on the there hold of an exciting new opportunity. the qualities of our people and the way we work. which has today emerged as one of the leading mutual funds in India.Vision: To make ICICI Prudential the dominant life and Pensions player built on trust by world-class people and service. This we hope to achieve by : Understanding the needs of customers and offering them superior products and service. Given the quality of our parentage and the commitment of our team. .Integrity . with a commitment to provide leadingedge life insurance solutions. ICICI Bank has 74% stake in the company. building transparency in all our dealings The success of the company will be founded in its unflinching commitment to 5 crore values . excellent quality of service and long term commitment to YOU. where we the sector. Each of the values describe what the company stands for . Ownership And Passion. Providing an enabling environment to foster growth and leaning for our employees. Leveraging technology to service customers quickly. known for their professionalism. the two companies joined hands once more in 2000. there are no limits to our growth. The two companies bring together two of the strongest financial service brands in Asia. And above all. efficiently and conveniently. and Prudential plc has 26%. PARTNERS: ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company. Customers First Boundryless . to form ICICI Prudential Life Insurance. Riding on the success of this relationship.
Hong Kong. Mark Norbom Mrs.206crore for the year ended March 31. K.ICICI Bank: ICICI Bank (NYSETBN) is India's second largest bank with an asset base of Rsl06812crore. India.l . credit and debit cards. investment management and general insurance. 2001. Lalita D. Gupte . 1675 ATMs. (www. The Bank services a growing customer base of more than 7 million customer accounts and 5 million bondholders accounts through a multi-channel access network. MANAGEMENT: Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Singapore. This includes about 450 branches and extension counters. Malaysia.China. Prudential has championed customer-centric products and services. Taiwan. and more than 16 million customers worldwide. Indonesia. ICICI Bank posted a net profit of Rs. Prudential plc is a leading international financial services company in the UK. Chairman Mr. banking.V. Prudential is UK"s largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries . mutual funds. This includes mortgages. Japan.000 staff and agents across the region. supported by over 60. PRUDENTIAL PLC: Established in 1848. Korea. Prudential has brought to market an integrated range of financial services products that now includes life assurance. In Asia. call centre's and Internet banking. ICICI Bank provides a broad spectrum of financial services to individuals and companies. corporate and agricultural finance. pensions. the Philippines. Since 1923. car and personal loans. Mr. Thailand and Vietnam. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. ICICI international rating agency Moody"s and the only Indian company to be awarded an investment grade international credit rating. Kamath. with around US$250 billion funds under management.com ).icicibank.
Chief Operations & Underwriting Mr. Bhatinda. Managing Director Management Team Ms. Kanpur.*Shikha Sharma. Rajkot. R Narayanan Ms. Kevin Holmgren Mr.675 crore with ICICI bank and prudential plc holding 74% and 26% stake respectively.Investments Ms. Nagpur. Mitra. Head Information Technology FACT SHEET: The Company: ICICI Prudential life insurance company is a joint venture between ICIC bank. Balgalore. Hubli. Kalpana Morparia Mrs. M. for a total sure assured of over Rs.Mrs. Kochi. Head . Puneet Nanda. V. Managing Director Mr. Kottayam. Goa.Sales & Marketing Mr. Gutur. Sandeep Batra. Chandigarh. Dehradun. a leading internal financial services group headquartered in the United Kingdom. Ludhiana. Modi Mr. Chennai. Shubhro J.Human Resources Mr. Mangalore. Kolkata. Nasik. Jalndhar.8. ICICI Prudential's equity base stands at Rs. 980 crore. Ahmedabad. Anil Tikoo. Chief Financial Officer & Company Secretary Mr. . Jodhpur. having commenced operations in 54 cites and town in India.P. Noida. Karnal. Amritsar. Jaipur. Chanda Kochhar Mr. Allahabad. ICICI prudential was amongst the first private sector insurance companies to begin operations ii December 2000 after receiving approval from insurance regulator} development authority (IRDA). Bhopal. Shridhar Sethuram. New Delhi. Appointed Actuary Mr. 2004. In the year ended March 31. Hyderabad. These are: Agra. Chief .. Jamnagar. Jamshedpur. DISTRIBUTION: ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. a premier financial powerhouse and prudential plc. Today the company is the #1 private life insurer in the country. Mumbai. Kota. Anita Pai. Indore. Ajmer.000 crore and premium income in excess of Rs. Chief . Pune. the company had issued over 430. Gurgaon. Coimbatore.Lucknow. Patials. Rajagopalan. Aurangabad. Shikha Sharma. Bhubaneswar. Madurai.000 policies. Meerut.
Sahrma Rao Vithal Co-operative bank and Jalgaon people's Co-operativ bank. PRODUCTS: ICICI Pru life guard ICICI Pru Save'n'protect ICICI Pru Cash Bak ICICI Pru forever Life ICICI Pru Life Time pension ICICI Pru Re Assure ICICI Pru Cash plus ICICI Pru Life Link ICICI Pru Smart Kid ICICI Life Insurance ICICI Pru Secure plus ICICI Pru Life Time ICICI Pru Assurelnvest Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative. Thrissur.000 insurance advisor to interface with and advice customers. Further. Vashi. ICICI Prudential has recruited and trained over 30. Allahabad Bank. Federal bank. customer- . Thane. Manipal State Co-operativ Bank. and Punjab & Maharastra Co-operative Bank. Goa Stat co-operating Bank.Ranchi. The company has twelve bancassurance tie-ups. Vadodara. as well as some corporate agents it has also tied up with organization like Dhan for distribution of Salaam Zindagi. it leverages its stateof-art Y infrastructure to provide superior quality of service to customers. Trichy. Indoor Paraspar Sahakari Bank. Trivandrum. bank of Indk Lord Krishna Bank. having agreements wit ICICI bank. south Indian bank. a policy for the socially an economically under privileged section of society. Sujat. Vijayawada an Visakhapatnam.
level I assurance with return of premium and single premium. Cash Bank is an anticipated endowment policy ideal for meeting miles expenses like a child’s marriage. It offers 3 investment options . Its 17 products can be enhanced with up to 6 riders. Life Time offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. protection along with adequate returns. Market-linked Solutions: Life Link is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.Growth Plan. which offers life cove very low cost. It is available in 3 options . Income Plan and Balanced Plan Retirement Solutions . Child Solutions Smart Kid child plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy.centric products that meet the needs of customers at every life stage. feature-packed savings plan Save n Protect is a traditional endowment savings plan that offers life that offers levels of protection as well as liquidity options. Savings Solutions: Secure Plus is a transparent and feature-packed savings plan that offers 1 levels of protection.Cash Plus is a transparent. The policy is designed to provide money at important milestones in the child"s life. SmartKid child plans are also available with in unit-linked form .level term assurance.both single premium and regular premium. expenses for a child’s higher education purchase of an asset. Protection Solutions:-Life Guard is a protection plan. to create a customized solutior for each policyholder.
Group Gratuity Plan: ICICI Prudential group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. Group Insurance Solutions : ICICI Prudential also offers Group Insurance Solutions for company seeking to enhance-benefits to their employees. ICICI Prudential also launched "Salaam Zindagi". a social sector group insurance policy targeted at the economically underprivileged sections of the society. Secure Plus Pension is a flexible pension plan that allows one to select between 3 levels of cover. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.Forever Life is a retirement product targeted at individuals in tto thirties. . Market-linked retirement products: Life Time Pension is a regular premium market-linked pension plan Life Link Pension is a single premium market-linked pension plan.
which can be added to the basic policy at a marginal cost.Accident benefit: This rider option pays the sum assured under the rider death due to accident. to company's renewal . the beneficiary will be entitled twice the sum assured as additional benefit. 2. 1. New business income rose by 106 per cent to Rs. the beneficiary receives an additional amount equal to the sum assured under the policy. i ICICI Pru tops Premium Income Chart : Business Standard : April 15.Accident & disability benefit: If death occurs as the result of an accident during the term of the policy. 420 crore. This reflects a 135 per cent growth over last year's (2002-03) income of Rs. Flexible Rider Options:ICICI Pru Life offers flexible riders. depending on the specific needs of the customer. 989 crore in the financial year 20032004. It logged a premium income of Rs. The cover could be uniform or based designation/rank or a multiple of salary. If the death occurs while traveling in an authorized mass transport vehicle. Employees have option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. The benefit under the policy is paid the beneficiary nominated by the member on his/her death. Group Term Plan: ICICI Pru"s flexible group term solution helps provide affordable co to members of a group. Mumbai : ICICI Prudential Life Insurance Company has topped the premium income chart among private insurance players for her third year in a row. 2004.Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation such to provide a retirement kitty for each member of the group. 751 crore and despite a 15 percent lapse rate in policy renewals.
premium increased by 325 per cent to Rs. 238 crore. At present ICICI Prudential Life has around a 40 per cent share among the private insurance industry in retail sales. The total sum assured since its inception has risen to Rs. 16,000 crore with Rs. 8, 173 crore added in is 2004. ICICI Prudential Life Chief Executive Officer and managing direct Shikha Sharma said that over 80 per cent of the 4.36 lakh policies sold wt unit - linked plans, with pension plans accounting for just 28 per cent of no businesses. 'We intend to come out with more pension and annuity products in if current fiscal (2004-05) as we find this as an undeveloped market, Sharma. Not enough products exist in the market today as the industry continue to await tax reforms. Today policy holders can get total tax exemption up to Rs 10,000 under Section 10 CCC of the Income Tax act. As such , without tax reforms it is not conducive for customers to invesl more under pension plans, . On the group side, ICIC Prudential has not been as active as it has been a late entrant . 'We started targeting group insurance this year (2003-04) and have been able to tap around 100 clients. The premium has been minuscule as the sales cycle is long and varies between six-nine months to close a transaction , ' said Sharma. Moreover, with the rate war rampant in group term, ICICI Prudential has been choosy on the business it under writes. 'Group term is a commodity , and as business is purely rate driven , this is not our focus area, ' she added. ICICI Prudential Life hikes capital to Rs. 675 Cr. : The Economic Times : March 17, 2004 ICICI Prudential Life has hiked its capital by Rs. 675 crore in view of booming business. sa:
Hiking the capital for the ninth time since its inception in December 2000, the 74:26 joint venture between ICICI Bank and Prudential Plc said the additional capital would be used for meeting capital adequacy norms stipulated by the Insurance Regulatory and Development Authority. In the life insurance business, expenses were incurred up from while the revenue (in the form of premium) stream was staggered, and this necessitated a life insurance to regularly infuse capital during the first 5-7 yrs in order to support the growth of business. With an authorized capital of Rs. 1,200 crore, the second generation life insurer's premium mop up had crossed crossed Rs. 1,000 crore in December 2003. The Insurance company, which expanded to 54 locations across the country, so far sold over 5.50 lakh policies for a sum assured of over Rs. 13,000 crore. Prudential Seeks to replicate ICICI Pru success : The economic times: March 13, 2004: Mumbai: Prudential UK’s largest insurer is looking at replicating ICICI Prudential innovations in other parts of Asia. The parent company is impressed with the speed in which the Indian venture has been able to launch new products and build up a professional agency force. Speaking to ET Dan Bardin, Managing Director, South Asia and Greater China, Prudential Asia said, “Shikha (Sharma, MD ICICI Prudential Life) and her team have been able to manage growth and expenses. Her team has exceeded our expectations. He added that ICICI Pru was similar to companies that are mature and is looked up by its peers in the group for its multi channel distribution and for building up a large professional agency. ICICI Pro’s agency sales force of over 26,000 agents are one fourth of the Prudential Corporation’s network of 1.12 agents in Asia. Mr. Bardin said that Prudential expected its group companies to breakeven between seven and twelve years of operations, depending on local operations. Prudential Corporation Asia is expected to become a net contributor to the Group's capital position in 2006 as more of its business become net generators of cash after funding their own development.
Winner : ICICI Prudential : In the short span since the insurance sector was opened up, ICICI Prudential Life Insurance has literally dictated the market's evolution. Catering to all age and income segments , the company started out with the traditional insurance policies that were easy to understand . The idea was to entice customers used to LIC's style of functioning. Soon , ICICI Prudential began exploring new areas. It introduced modern products, like the market - linked product where returns are linked to the market performance of the underlying assets. ICICI Prudential leads in virtually all parameters: size of agent force, number of policies sold, total sum assured, premium income and productivity of agents. It has set exacting standards for its range of products, riders offered , quality of information in promotional material and even in the insurance awareness events organized. What has been in favour of ICICI Prudential is its range of products in each segment of life insurance - traditional, unit-linked and single - premium options, be they for retirement plans or child plans. With such as comprehensive bouquet, it caters to all financial goals of a customer. ICICI Prudential also has a strong sales network and tie-up with banks to offer banc assurance products. Its supplementary marketing channels contribute close to 30 per cent of its premium income. The company is now reaching out to new and untapped markets. ICICI Prudential works closely with NGO's and micro - finance institutions to spared awareness about the concept of insurance in rural areas. This helps meet the social obligations mandated by IRDA. but the company has gone a step ahead by actively involving the villagers and working closely with them. The gap between ICICI Prudential and the second - in - line private insurer is vast. In fact, this hiatus has led some analysts to wonder if the company isn't trifle too aggressive. But others say this has more to do with the company's customer centric focus, its pan India presence and superior risk management and investment strategies. ICICI Prudential is not however, resting on its laurels. The company will continue to innovate and set the standards.
ICICI Prudential has 40% private life insurance market: The Economic Times: March 1, 2004: Mumbai: ICICI Prudential Life Insurance has increased its market share among private life insurers to nearly 40% from 33% as a end December. The company's first year premium income in the April - January period stood at Rs. 464.6 crores. Accounting for 39.3% of the Rs. 1,3645 crore premium booked by all private life insurers together. Considering the entire life market, including the s. 9780 crore booked by 4.17%. The life insurance market continuous to be dominated by LIC which has about 87.8% share. This is only a marginal dip from its 88.2% share in end-December. These comaparisons are only for first year or new business premium were to be take into account, LIC's share would increase further to over 96%. According to business figures br6ught out by the Insurance Regularity and Development Authority (IRDA), the first - year premium mobilised by ICICI Prudential Life Insurance in the first ten months of 2003-04 amounted to Rs. 464.4. This is more than twice the premium income generated by its 7 closest rival Birla Sun Life which raised Rs. 195 crore during the same period. HDFC Standard Life and Tata AIG have retained their third and fourth positions. Interestingly, there are three companies that are neck and - neck in the battle to be among the top five with a mare share of close to 7% - Allianz Bajaj, Max New York Life and SBI Life Insurance. In the group insurance market, LIC's share in the country is around 93%. Among the private companies, SBI Life, Birla Sun Life and HDFC Standard Life Dominate the group insurance segment. SBI Life, with its group policies fro mortgage loan protection and depositor insurance, has close to 45.8% of the group market among private companies. Birala sun life has a 23.4% share, followed by HDFC "Standard Life which has a 18.4% share. Except these companies, other players have a negligible presence in the group market. But, with over a month to go for the close of financial year, the rankings could still change dramatically. More so, because insurnce companies, particularly LIC, go into an overdrive in mobilising new business.
How does the nominee / legal heir make a death claim ? The claimant (Nominee / Legal / Heirs ) must send us : An intimation of the death of the life assured Death certificate Completed claim forms and other forms as required by the company Policy of life insurance Identification that the person is entitled to receive the payment What additional requirements are there for an accident claim ? Additional to the requirements for a death claim. the claimant should submit all the reports (police. If your policy has a surrender value. if not submitted earlier To whom is my death claim amount aid ? The death claim is paid to : The nominee. The appointee named by you. you can apply for a policy loan upto 80% of the surrender value. as declared by you in the proposal form The legal heirs. hospital etc) pertaining to the accident as required by the company. in case where the nominee is a minor at the time of claim. What condition apply to a policy loan? Loan is given if you have an ICICI Pru Save*'n' Protect Policy. You must send us within 6 months of the disability date . if required. in case you have not specified the nominee.FAQs : How do I make a maturity claim ? You must send us the Completed claim form Policy of Life Assurance Proof of age . Proof of your disability You will have to undergo one or more medical examinations conducted by medical practitioner/s appointed by us. This loan will carry an . Written notification of your disability arising out of the accident .
your policy terminated immediately. In the case where nominations has not been given at the time of proposal. The outstanding loan and interest will be deducted from the claim amount at the time of settlement How do I surrender my policy? Premia are paid for at least three consecutive years. In the case of ICICI Pru single premium Bond the policy can be surrendered after the first year. nomination can . can be surrendered for payment in cash. If the total outstanding amount owed to us under you policy exceeds the surrender value. if: You apply within 5 years from the date of the first unpaid premium and before the maturity date. Nomination establishes a clear title to the policy. We will notify our acceptance to you. you can re-apply reinstate it. This prevents dispute and also prevents delay in settlement of a death claim. How do I revive my policy that has lapsed ? Your policy has lapsed on account of non-payment of premium within the specified due date. You can repay the interest and the loan at any time. You pay all the required premiums and interest You give us satisfactory evidence of health at your own expense. The interest will be charged starting from the date of the loan. The Policy. which has acquired a surrender value.interest rate as decided by the company from time to time. Once the Policy is surrendered the contract is terminated. the Policy acquires a Surrender Value. The reinstatement will take effect only if we accept you application. What is nomination of the policy ? Section 39 of the Indian Insurance Act 1938 provides for nomination of a person who would receive the benefit of the claim on the death of the life assured.
Nomination can also be changed at any time during the tenure of the policy by intimating us ICICI Prudential . Can I assign a policy The policy can be assigned . you policy automatically : Lapses if there is no surrender value Convert to a paid up policy if there is enough surrender value. . Can I change my nomination ? Yes. How do I notify my change in address? You can call our customers service center or notify us through a letter about the change of address. To assign the policy you have to notify us regarding the assignment.be made at any time during the term of the policy. During this period the policy remains in will force and no interest is charged. It is 15 days from the due date from the due date for monthly payments. We shall confirm the change to you. You can change your nomination at any time till the maturity date. To get this document . you will have to send us a letter stating the circumstances under which the policy was lost. What if I lost my policy ? You can apply for a duplicate policy document. All you need to do is to inform us about the change through a specified form. This grace period in 30 days from the due date in case premium payments are made on quarterly. half-yearly or yearly basis. If you fail to pay a premium even during the grace period. What if I forget to make payment? We offer you a grace period for non-payment on due date.
CHAPTER – IV THEORETICAL FRAME WORK .
retailing and other facilitating function. one the PSYCHOLOGICAL oriented and the other is PHYSIOLOGICAL oriented.Customer Perception : The customer in marketing basically deals with two types of function. External and Internal Factors influencing attention: External factors: 1) Intensity & size 2)position 3)Contrast 4)Novelty 5)Repetition 6) Movement Internal factors: Differentation factor in marketing mix: The big advertisements in news papers ar magazines Placement of products Variation of products Which is the new innovation idea To create a strong desire for interest in purchase of the product Billboards & hoardings A few examples in the Indian context are Product Nirma differentiation Price . What is perception: Perception is the process of selecting. which are. organizing and interpreting or attaching meaning to events happening in the environment. These activities represents planned movement of products from the Retailer's to the final consumer in the most efficient manner. 2)Physiological oriented function: It is concerned with the physical products flow that is the supply of products. 1) Psychological oriented function: It is concerned with search for and stimulation of consumer demand that is those aspects which deal with wholesaling.
. and collects information 2. Selective attention: Inner needs of an individuals.Titan Dhara&Frooti Onida & magi Place Packing (Tetra Packs) Creative Advertisement 1. 4. Perceptual vigilance or defence: It refers to individual being vigilant and screening out of those elements which create conflict or may rise threatening situation.Selective exposure: People try to avoid any message that may go against which are strongly held belief 3. Selective retention: The information received by people will fit into the existing mind set.
a package. Sensitivity stimuli varies with the quality of an individual's sensory receptors (e. accommodated to a certain level of stimulation. Differential Threshold: becoming The minimal difference that can be detected between two similar stimuli is called the Differential Threshold or the Just Noticeable Difference. The just noticeable difference between two stimuli was not an absolute amount relative to the intensity of the first stimulus. Absolute Threshold: The largest level at which an individual can experience a sensation is Called the Absolute threshold. The point at which a person can detect a difference between "some thing" and "nothing" is that person's absolute threshold for that stimulus. In the field of perception. . a brand name). eye sight or hearing ) and the which he she is exposed .Subliminal Perception Differential Threshold Absolute Threshold Sensation Elements of Perception: Sensation: It is the immediate and direct response of the sensory organs to simple Stimuli (an advertisement. the term adaptation refers specifically to "getting used to" certain sensations.g.. The greater the additional intensity needed for the second stimulus to be perceived as different. Human sensitivity refers to the experience of sensation.
Subliminal Perception It falls under the below the level of perception 3 forms of subliminal perception: 1)a visual stimuli is presented in brief 2)speech given fast in low volume auditory messages 3)print ads or product labels.An additional level of stimulus equivalent to the just noticeable difference must be a difference between the resulting stimulus and the initial stimulus. .
ì °ól360|cgrid CHAPTER – V ANALYSIS AND INFERENCE .
36% of the customers having 20-30 ages. 50% of the customers having 30-40 aged.Table : 1 20-30 30-40 40-50 Total 36 50 14 100 36% 50% 14% 100% 14% 36% 20-30 30-40 40-50 50% Inference: The above table shows that According to the customers opinions regarding the ages are between and distinguished as 20-30. . 30-40 and 40-50. 14% of the customers having 40-50 ages.
50% of the customers are earning 1-1.5-5 > 5 lakhs 22 50 16 12 22% 50% 16% 12% Gross Income per Annam of the Customers 12% 22% < 1 lakh 1-1.Table : 2 < 1 lakh 1-1. the gross income per annum have been categorized into < 1 lakh. 1.5 1.5-5. 12% of the customers are earning > 5lakhs.5-5 > 5 lakhs 50% 16% Inference: The above table shows that the gross income per annum of the customers. 16% of the customers are earning 1.5. . > 5 lakhs.5.5 1. 1-1.5-5. 22% of the customers are earning < 1 lakh .
. 60% say that it is an average and 8% of the customers are not aware about the products. 32% of the customers had good view.Table : 3 Good Average Bad No Idea 32 60 0 8 32% 60% 0% 8% FIRST IMPRESSION ON INSURANCE 8% 0% 32% Good Average Bad No Idea 60% Inference: The above table shows that there has been a varied range of customer perceptions towards ICICI Prudential life insurance products.
Table : 4 Yes No Not Interested 36 44 20 36% 44% 20% LIFE ASSURED 20% 36% Yes No Not Interested 44% Inference: The above table explains regarding the interest of the customers to know about life insurance. . 44% of the customers were totally disinterested and remaining did not want to give their opinion. 36% of the customers have shown an interest to understand the various contents of life insurance.
10% of the customers have shown an interest to understand the various contents of life insurance.Table – 5 Yes No Not Interested 10 60 30 10% 60% 30% NUMBER OF PROSPECTS 10% 30% Yes No Not Interested 60% Inference: The above table explains regarding the interest of the customers to know about life insurance. . 60% of the customers were totally disinterested and remaining did not respond to this point.
Table – 7 High Moderate Low No Idea 50 30 20 0 50% 30% 20% 0% PREMIUM COLLECTED 20% 0% High 50% Moderate Low No Idea 30% Inference: The above table shows that according to the customers opinions regarding the premium collected by the private insurance companies have been distinguished as high. . moderate and low. 50% of the customer’s opted high. 30% of them have chosen moderate and 20% have declared it to be low.
30% of the customers had a opinion that there should be 10% of returns. 20% and above 30%. . the returns have been categorized into 10%. 35% of the customers opted 20% of returns and 20% of the customers had an opinion that the expected returns should be above 30%.Table – 8 10% 20% Above 30% No Idea 30 35 20 15 30% 35% 20% 15% RETURNS EXPECTED 15% 30% 10% 20% 20% Above 30% No Idea 35% Inference: The above table shows that the general perception of the customers. 15% of the customers do not have any opinion regarding the returns.
20% of the customer having Excellent view. 60% are having satisfactory. 10% of customer are having poor and don’t know about the services provided by ICICI Prudential. .Table – 12 Excellent Satisfactory Poor Don’t Know 20 60 10 10 20% 60% 10% 10% PERCEIVE CUSTOMER SERVICES PROVIDED BY ICICI PREDENTIAL LIFE INSURANCE 10% 10% 20% Excellent Satisfactory Poor Don’t Know 60% Inference: The above table shows that there has been a varied range of perceive customer services provided by ICICI Prudential.
. 42% say that it is an average and 24% of the customer are have bad view about the products.Table – 13 Good Average Bad 34 42 24 34% 42% 24% BELIEF IN PRIVATE LIFE INSURANCE 24% 34% Good Average Bad 42% Inference: The above table shows that there has been a varied range of belief in private life insurance and their various insurance products. 34% of the customers had good view.
BIBLIOGRAPHY & GLOSARY . SUMMARY & ANNEXURE.CHAPTER – VI FINDINGS & SUGGESTIONS.
Today every individual is in a position to get insured some way or the . Security can be provided through insurance. The report is on the existence of the insurance sector in the Indian history and the various reasons. Every human being wants to lead a happy and peaceful life for what security is the most important. Insurance and the various need for insurance and the reasons for . Without security the word insurance might not have been aroused. No Individual can have an idea of what is the life span. why the insurance plays a vital role in today's life of the human beings. this search has brought out innovative ideas.SUMMARY The current section of the report deals with the essence of the entire report. Hence security and insurance go hand-in-hand with each other. Before entering into the insurance let us discuss on the term "life". But certainly every individual has the curiosity to know how much but unfortunately it is destined before hand "What may happen tomorrow no one can judge". which are the pillars of the report. LIC admits itself as the leading insurance company. The objectives of what to be done and the limitations for the study are the most important in the report. Achieving the targets and ranking as number one in the Insurance frame. From the Rock man to Iron age man. Life is the most important and unknown to human race. The report also consists of various policies of the insurance and their uses. The major leader in the insurance sector being the "Life Insurance Corporation" plays the most vital role in the insurance scenario. Security and constant search for security have been an unending endeavor of human race since the beginning of the civilization. from the Medieval Conservative to today Longhair and Techies. The LIC has achieved the major monopoly till the private insurers have come into the existence. finer aspects of life all can be clearly understood in the forthcoming aspects of the project. But to avoid something that is unforeseen one must be insured first.
other But they are specific about the private life insurance companies whether to invest in those or not. . Thanks to the invent of new frame work of the insurances companies coming into the scenario as people will have a great knowledge in these fields also and an understanding of the insurance motto.
1. What is your first impression. your gross income per annum is — a) less than 1 lakh b) 1 -1. There is no right or wrong answers. You are between the age of — a) 20-30 years b) 30-40 yearsc) 40-50 Years e-mail: Occupation: 2. Is your life insured? a) YES b) NO b) Average c) Bad d) No Idea 5..5 lakh c) 1.ANNEXURE Name: Address: Phone/mobile: Dear Sir. when you hear about Life Insurance? a) Good 4. The following are the set of questions designed to understand your respectable view points on the Insurance sector in particularly understanding the roles of private players in the changing times. Please read this article.5-5 lakh 3. Suppose I were to tell you to sit with me for a few minutes and discus life insurance would you be interested? a) YES b) NO 6. and now let me know whether you would be interested in discussing insurance with me? a) YES b) NO . therefore kindly give your opinion on the same..
a) Yes b) No c) No Idea b) satisfactory d) don't know b) Average c) Bad 13.In your opinion. How do you perceive customer services provided by ICICI Prudential life insurance? a) Excellent c) Poor a) Good savings. Coming to todays business market are you ready to invest for Thanking you for your valuable time and input. Are you aware of ICICI Prudential Life Insurance? a) Highly aware c) Somewhat aware 11. how do you perceive your ideal Life Insurance policy to 10. Generally how much do-you expect investment returns when you invest in private life insurance policies? a) 10% be? a) Purely as Tax Saver c) Investment oriented b) Risk point of view d) All the above b) 20% c) More than 30% 9. Your belief in private life insurance and their various products? 14.7.Please indicate the medium through which you are aware? a) Television commercial c) Internet b) press advertising d) others (specify) b) Moderately aware 12. . What do you think about the premiums collected by private life insurance firms? a) high b) Moderate c) Low 8.
Destitution . we would like to present to you ICICI Prudential life insurance co. But.there is much more to insurance.INSURANCE/ INVESTMENTS AND TAX PLANNING What is insurance? As a layman understands insurance today.Death 2.Disease 3. It's a powerful Financial product. it's not all . An insurance plan helps you answer the problems faced by a human life (referred to as the 4D's of insurance) i. it's a tool used to secure or protect a person's family's financial needs in case of an unfortunate event like death were to happen to the life assured.Disability 4.e. which can be used as: 1)a good returns yielding investment 2)a security for life assureds dependents 3)a savings tool 4)a tax savings tool In this context. 1 . ltd's insurance solutions.
Insurance plans can be broadly be classified as: a ) Pure risk plans (only for security or life cover. . Just take some time and meet our financial services consultant to further help you plan your finances. hence are the cheapest) b)Endowment plans (protection and savings. which gives you a huge sum called a maturity benefit at the end of the term) c)Unit linked plans (protection and a great returns yielding investment) d) Pension plans\ retirement solutions (to take care of your old age and give you a pension for life) We have solutions to answer the customized needs of all our customers. and i.
birlasunlife.iciciprulife.com www.com www.com www.org Journal: "Insurance chronicle" GVP COLLEGE FOR PG COURSES. Visakhapatnam COLLEGE JOURNAL .BIBLIOGRAPHY References Web sites: - www.com www.hdfcstandardlife.licindia.icfaipress.
age and mortality charges) Term : The period during which the life assured' life is covered. height etc. like weight. in a given age group (based on a study of a sample by the life insurance company) Sum assured : The guaranteed sum payable to the nominee of the life assured in the event of death of the latter. then it is to be considered a normal life and proposal accepted at normal rates. Non-standard life: if a human life is non-standard. the proposal is called non-standard and may be accepted at a higher premium (extra). that is if weight of a person according to a person's age and height exceeds normal definition of the actuary. Nominee : The person who gets the guaranteed financial amount on the event of death of the person whose life is covered. that is with a few expectations. mortality and morbidity to decide on the premium to be collected and also plays the prime role in designing insurance products.Glossary Life assured : The person whose life is financially covered by the insurance company. He decides whether the proposal has to be accepted or not. Actuary : is a person who makes a study of population. Mortality charges : A chart suggesting the number of lives under the threat of death. and if yes. Underwriter : is a person who assesses the risk on covering a life. . i f the proposal matches these expectations. Premium : The annual contribution made by the life assured or by another person towards a policy in order to cover the death risk (calculated based on term. in what conditions (medical/non-medical) and at what rates (standard/extra) Standard life: the actuary defines the risk associated on a normal life at a particular age.
a notice of assignment must be given to the insurance company. the insured receives a sum specified by the contract. Annuity : A policy under which an insurance company promises to make a series of periodic payments to a named individual in exchange for a premium or a series of premiums called the purchase price. To protect the person who is assigned a life insurance policy. the loss of a limb). mortgage or charge it or use it as the basis of a trust. or the . Assignments are actions taken which affect ownership of the policy. If bodily injury occurs (e. payment is made to the insured's beneficiary. transfer it to someone else.g. In the event of death. Its owner can retain the policy.. Beneficiary : An individual designated in a will to receive an inheritance.GLOSSARY: Accidental Death Insurance : Insurance that provides coverage in the event of death due to accidental injuries. but not illness. There are several types of assignments. A legal assignment must be followed by a notice to the insurance company. Assignment : A life insurance policy is regarded under the law as a form of personal property. Assignee : The party to whom an assignment (a transfer of property or rights to property) has been granted. the person to whom the policy has been assigned to has precedence over all other interests except for four cases: •Trustees in bankruptcy •Voluntary assignments between assignor and assignee Evidence of willful blindness on the part of the assignee Mortgage for unlimited amounts. Once notice is given.
retirement account. Cash Surrender Value : The amount that is available to the owner if a life insurance policy is surrendered any time before the maturity date. the creditor would receive proceeds or values only to the extent of his interest. or other asset. following acceptance of the risk by the insurer. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy. Collateral : A temporary assignment of the monetary value of a life insurance policy as security for a loan. Claim : Written request by an insured for the insurance company to cover an incurred loss.individual designated to receive the proceeds of an'insurance policy. A critical illness rider makes living benefits payable to the insured for medical expenses prior to death. Date of commencement : The date on whichever begins. Critical Illness Rider: A rider added to a life insurance policy to protect the insured against financial loss in the event of a terminal illness. In the event of default. trust. Accelerated (or living) benefits paid reduce the death benefit payable to the beneficiary (i. usually submitted on the company's standard form.e) upon death. . In an insurance policy the person who is nominated is normally the beneficiary.
plus any riders that are applicable.Dating Back : For non investment linked policies. less any outstanding loans. Grace Period : This provision offers the policy holder additional period of time after the due date. during which the premium can be paid. The policy continues tc remain in force during this grace period and the premium continues to be payable. The amount paid is the face value. Immediate annuity : An annuity that begins to make income payments immediately (or soon after) after the first premium is paid. Death Benefit : The amount payable. Endowment: Endowment insurance pays the sum assured upon the death of the life insured during the policy term or on survival to the end of the policy term. as stated in a life insurance policy. This enables the life assured to take advantage of the lower premium applicable to a younger age £fs the premiums is calculated with reference to the date of commencement. Extended Term Insurance: A provision in some policies which provides the option of continuing the insurance for a particular insured amount as per the policy condition as term insurance. Deferred Annuity : An annuity contract under which periodic benefits are scheduled to begin at some designated future date after the date on which the annuity was purchased. to the designated beneficiary(ies) upon the death of the insured. the commencement date of the policy can be backdated within the same financial year. The insurance cover will however begin only from the date of acceptance. The extra premium on account of dating back has to be paid upfront. as opposed to a deferred annuity. .
Life Assured : A person whose life is covered under a life insurance policy. Lapse: Termination of a life insurance contract because of non-payment of premiums. Life Expectancy Tables: • Mortality tables that are used to calculate life expectancy figures. life insurance premiums. etc. Maturity Date : The date on which an endowment insurance policy's face amount will be paid to the policy-owner if the life insured is still living. the policy lapses but may remain effective reduced paid-up insurance. The annuitant cannot outlive the payments.Insurance: Insurance is a policy a person buys and upon that person's death. the family will be able to get a certain sum of money. . Life Annuity : An annuity that makes regular (e. all income payments cease and there are no beneficiary benefits. and annual minimum distributions from IRAs.. however. If there are nonforfeiture values. Upon his/her death.g. Life Expectancy: The number of years a person is expected to live as determined by actuaries using mortality (actuarial) tables This information is used to calculate annuity payments. monthly.) income payments for the life of a person (the annuitant). quarterly.
Non-participating policy : Non-participating policy is also known as a without-profit or non-par policy. when the sum assured becomes payable) or when the life assured dies. Policy Loan: Some of the non-investment-linked whole life and endowment plans have a loan option. in the form of bonus allotted to the policy. Participating Policy : A participating policy is also known as a with-profits or par policy.Non-forfeiture Benefit : Benefit which prevents a life insurance policy that has built up a cash value from lapsing due to non-payment of premiums by the policy-owner.e. The policy owner does not share in any divisible surplus made by the life insurance company. the policy owner shares in the life insurance company's divisible surplus. Reversionary bonus is a guaranteed addition to your injured amount and is paid when the policy matures (i. there are two types of bonuses for insurance policies. This bonus is paid along with the basic sum assured. Interest is charged on the loan amount and compounded on a half yearly basis. Policy Term: The period of coverage„provided by an insurance policy. Premium : . It allows the policyholders to take a loan up to 90% of the surrender value of the policy without the need of a guarantor or security. No bonus is paid on this policy. In return. Policy Bonuses : In participating policies the company gives the policyholders a share in the profits of the company in the form of bonuses. Cash Bonuses are paid out at periodical intervals. The bonus is allotted in addition to the guaranteed sum assured. A participating policy charges a higher premium than a non-participating policy. Generally.
Sum Assured: The face amount of a policy payable upon a death or maturity claim. Additional premium is charged for each rider. . No Bonuses are paid under the rider. Rider : Riders are additional benefits that one can add on to the policy. Not all insurance policies have surrender or cash values. The rider can be opted for at the time of taking the basic policy. Reinstatement / Revival: The process by which an insurer puts back into force a life insurance policy that has been terminated for non-payment of premiums or a life insurance policy that has been continued as an extended term or reduced paidup insurance. Renewal Premiums : Premiums that are payable after the initial premium and that are a condition for the continuation of the policy. the insurance protection provided under the policy will also cease. Surrender Charge: Fee charged to a policyholder when a life insurance policy or annuity is surrendered for its cash value. Surrender or Cash Value: The surrender or cash value is the amount payable to the policyholder should the policyholder decide to discontinue the policy. However.A specified amount of money that the insurer receives in exchange for its promise to provide the policy proceeds when a specific loss occurs.
Term Insurance Rider: An endorsement or attachment to a life insurance policy that provides additional term coverage for the amount specified. Term Life Insurance : A form of life insurance which provides coverage for a specified period of time and does not build cash value.e) can receive death benefit proceeds. the designated beneficiary (i. If the insured dies during this time. Waiting Period: A specific time that must pass following the onset of a covered disability before any benefits will be paid under a disability income policy .