New Aviva

A
PROJECT REPORT
ON
ANALYSIS OF FINANCIAL AND
PROFITABILITY RATIO OF
AVIVA LIFE INSURANCE
DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF BACHELORS IN BUSINESS ADMINISTRATION
SUBMITTED BY:- SUBMITTED TO:-
BHARATI VIDYAPEETH DEEMED UNIVERSITY

INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade A University
CRISIL Grading MBA Programme
A* - National Level
A**- State Level
1
TABLE OF CONTENTS
Certificate
Acknowledgement
Preface
Executive Summary
CHAPTER -1: INTRODUCTION 1-
27
Title
Objective of the Study
Scope of the Study
Significance of the Industry
Significance of the Research
Research Technique
Sampling Methodology
Sampling unit
Sampling Area
Sample Size
Limitations
CHAPTER -2: RESEARCH METHODOLOGY 28 -
31
CHAPTER -3: FINANCIAL STATEMENTS OF AVIVA 32
CHAPTER-4: FACTS AND FINDINGS 33
CHAPTER-5: DATA AND INTERPRETATION 34 - 51
CONCLUSION & RECOMMENDATIONS 52 - 53
QUESTIONNAIRE 54 - 60
BIBLIOGRAPHY 61
2
ACKNOWLEDGEMENT
First of fall I would like to thank the Management at Wall Street Finance Ltd .for
giving me the opportunity to do my 50 days project training in their esteemed
organization. I am highly obliged to Mr. Amit Arora (Relationship Manager) for
granting me to undertake my training at Jhandewalan branch.
I express my thanks to all Relationship Managers under whose able guidance and
direction, I was able to give shape to my training. Their constant review and excellent
suggestions throughout the project are highly commendable.My heartfelt thanks go to
all the executives who helped me gain knowledge about the actual working and the
processes involved in various departments
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PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated
debate for some years. The policy makers where in the catch 22 situation wherein for
one they wanted competition, development and growth of this insurance sector which
is extremely essential for channeling the investments in to the infrastructure sector. At
the other end the policy makers had the fears that the insurance premia, which are
substantial, would seep out of the country; and wanted to have a cautious approach of
opening for foreign participation in the sector.
As one of the rare occurrences the entire debate was put on the back burner and the
IRDA saw the day of the light thanks to the maturing polity emerging consensus
among factions of different political parties. Though some changes and some
restrictive clauses as regards to the foreign participation were included the IRDA has
opened the doors for the private entry into insurance.
Whether the insurer is old or new, private or public, expanding the market will present
multitude of challenges and opportunities. But the key issues, possible trends,
opportunities and challenges that insurance sector will have still remains under the
realms of the possibilities and speculation. What is the likely impact of opening up
Indias insurance sector?
The large scale of operations, public sector bureaucracies and cumbersome procedures
hampers nationalized insurers. Therefore, potential private entrants expect to score in
the areas of customer service, speed and flexibility. They point out that their entry will
mean better products and choice for the consumer. The critics counter that the benefit
will be slim, because new players will concentrate on affluent, urban customers as
foreign banks did until recently. This seems to be a logical strategy. Start-up costs-
such as those of setting up a conventional distribution network-are large and high-end
niches offer better returns. However, the middle-market segment too has great
potential. Since insurance is a volumes game. Therefore, private insurers would be
best served by a middle-market approach, targeting customer segments that are
currently untapped.
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EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and Wall Street
Finance Ltd being Corporate Agent of RELIANCE LIFE INSURANCE has given me
the opportunity to work and get experience in highly competitive and enhancing
sector.
The success story of good market share of different market organizations

depends upon the availability of the product and services near to the customer,
which can be distributed through a distribution channel. In Insurance sector,
distribution channel includes only agents or agency holders of the company. If
a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have
adequate agents in the market they can capture big market as compared to the
other companies.
Agents are the only way for a company of Insurance sector through which
policies and benefits of the company can be explained to the customer .
5
HISTORY OF INSURANCE IN INDIA
Ref: IRDA/GEN/06/2007
In India, insurance has a deep-rooted history. It finds mention in the writings of

Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ).
The writings talk in terms of pooling of resources that could be re-distributed in
times of calamities such as fire, floods, epidemics and famine. This was probably a
pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest
traces of insurance in the form of marine trade loans and carriers contracts.
Insurance in India has evolved over time heavily drawing from other countries,
England in particular.
1818 saw the advent of life insurance business in India with the establishment
of the Oriental Life Insurance Company in Calcutta. This Company however failed
in 1834. In 1829, the Madras Equitable had begun transacting life insurance business
in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and
in the last three decades of the nineteenth century, the Bombay Mutual (1871),
Oriental (1874) and Empire of India (1897) were started in the Bombay Residency.
This era, however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
London Globe Insurance and the Indian offices were up for hard competition from
the foreign companies.
In 1914, the Government of India started publishing returns of Insurance

Companies in India. The Indian Life Assurance Companies Act, 1912 was the first
statutory measure to regulate life business. In 1928, the Indian Insurance Companies
Act was enacted to enable the Government to collect statistical information about
both life and non-life business transacted in India by Indian and foreign insurers
including provident insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was consolidated and amended
6
by the Insurance Act, 1938 with comprehensive provisions for effective control over
the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However,

there were a large number of insurance companies and the level of competition was
high. There were also allegations of unfair trade practices. The Government of India,
therefore, decided to nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The LIC
absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245
Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the
Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the
west and the consequent growth of sea-faring trade and commerce in the 17 th
century. It came to India as a legacy of British occupation. General Insurance in
India has its roots in the establishment of Triton Insurance Company Ltd., in the year
1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was
set up. This was the first company to transact all classes of general insurance
business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance
Associaton of India. The General Insurance Council framed a code of conduct for
ensuring fair conduct and sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act,
general insurance business was nationalized with effect from 1 st January, 1973. 107
insurers were amalgamated and grouped into four companies, namely National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd and the United India Insurance Company Ltd. The General
7
Insurance Corporation of India was incorporated as a company in 1971 and it
commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to
nearly 200 years. The process of re-opening of the sector had begun in the early
1990s and the last decade and more has seen it been opened up substantially. In
1993, the Government set up a committee under the chairmanship of RN Malhotra,
former Governor of RBI, to propose recommendations for reforms in the insurance
sector.The objective was to complement the reforms initiated in the financial
sector. The committee submitted its report in 1994 wherein , among other things, it
recommended that the private sector be permitted to enter the insurance industry.
They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA
include promotion of competition so as to enhance customer satisfaction through
increased consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up to
26%. The Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging
from registration of companies for carrying on insurance business to protection of
policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India

were restructured as independent companies and at the same time GIC was
converted into a national re-insurer. Parliament passed a bill de-linking the four
subsidiaries from GIC in July, 2002.
8
Today there are 24 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 23 life insurance companies
operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-
20%. Together with banking services, insurance services add about 7% to the
countrys GDP. A well-developed and evolved insurance sector is a boon for
economic development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking ability of the country.
9
CHAPTER 1
INTRODUCTION TO THE INDUSTRY

THE HISTORY OF INDIAN INSURANCE INDUSTRY
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were
made with the introduction of the Indian Life Assurance Companies Act in 1912. A
number of amendments to this Act were made until the Insurance Act was drawn up in
1938. Noteworthy features in the Act were the power given to the Government to
collect statistical information about the insured and the high level of protection the
Act gave to the public through regulation and control. When the Act was changed in
1950, this meant far reaching changes in the industry. The extra requirements included
a statutory requirement of a certain level of equity capital, a ceiling on share holdings
in such companies to prevent dominant control (to protect the public from any
adversarial policies from one single party), stricter control on investments and,
generally, much tighter control. In 1956, the market contained 154 Indian and 16
foreign life insurance companies. Business was heavily concentrated in urban areas
and targeted the higher echelons of society. Unethical practices adopted by some of
the players against the interests of the consumers then led the Indian government to
nationalize the industry. In September 1956, nationalization was completed, merging
all these companies into the so-called Life Insurance Corporation (LIC). It was felt
that nationalization has lent the industry fairness, solidity, growth and reach.
10
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: EaALIer legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance companies.
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MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise peoples savings for
nation-building activities. LIC with its central office in Mumbai and seven zonal
offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal,
operates through 100 divisional offices in important cities and 2,048 branch offices.
LIC has 5.59 lakh active agents spread over the country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental
Assurance Company Limited, Kuala Lumpur; and Life Insurance Corporation
(International), E.C. Bahrain. It has also entered into an agreement with the Sun Life
(UK) for marketing unit linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion
while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's
income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent
growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement
ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of
40 per cent. Compounded annual growth rate for Life insurance business has been
19.22 per cent per annum
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IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE
BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have
given immense competition to the on time monopoly of the market LIC. Since the
advent of the private players in the market the industry has seen new and innovative
steps taken by the players in this sector. The new players have improved the service
quality of the insurance. As a result LIC down the years have seen the declining phase
in its career. The market share was distributed among the private players. Though LIC
still holds the 75% of the insurance sector but the upcoming natures of these private
players are enough to give more competition to LIC in the near future. LIC market
share has decreased from 95% (2002-03) to 82 %( 2004-05).
1. HDFC Standard Life Insurance Company Ltd.
Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between
Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance
institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private
insurance companies, offering a range of individual and group insurance solutions, in India. Being a
joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to
manage long-term investments safely and resourcefully.
HDFC Standard Life Insurance offers a range of individual and group solutions, which can be easily
personalized to specific needs. Its group solutions have been planned to offer complete flexibility,
together with a low charging structure. As of 31 December, 2008, the Company's new business
premium income stood at Rs. 1,839.70 Crores; it has covered over 812,811 lives so far. Given below is
a comprehensive list of policies and products on offer by HDFC Standard Life Insurance:
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2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture between Max India Limited, which
is a one of India's leading multi-business corporate, and New York Life International, which is a
Fortune 100 company & global expert in life insurance. Max New York Life Insurance started its
commercial operations in India in 2001. It is the first life insurance company in India to be awarded the
IS0 9001:2000 certification. The company has around 133 offices all over the country.
Max New York Life offers a variety of flexible products covering both life and health insurance
including 8 riders that can be customized to over 800 combinations which enable the customers to
choose the policy that suits their needs. Max New York Life also offers 6 products and 7 riders in group
insurance business. The company has a plan for every need, designed as to meet your long term
financial goals & aspirations.
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of
India's foremost financial services companies, and Prudential plc, which is a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential began the operations
in December 2000. Today, this company has over 2100 branches, which include 1,116 micro-offices,
over 290,000 advisors and 18 banc assurance partners.
ICICI Prudential Life Insurance Company is the first life insurer in India that received a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as
India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance
Company has various insurance plans that have been designed for different individuals, as every
individual has different insurance needs. Given below is a list of plans provided by ICICI Prudential
Life Insurance Company:
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4. .Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla Group, an Indian
multinational corporation, and Sun Life Financial Inc, a leading global insurance company. Birla Sun
Life Insurance is distinguished as the first company in the sector of financial solutions to begin
Business Continuity Plan. This insurance company has pioneered the unique Unit Linked Life
Insurance Solutions in India. Within 4 years of its launch, BSLI became one of the leading players in
the industry of Private Life Insurance Scheme.
Birla Sun Life Insurance believes in passion, integrity, speed, commitment and seamlessness. The
mission of the company is to help people with risk management. It also helps in managing the financial
situation of firms as well as individuals. Here is given a comprehensive list of policies and products
offered by Birla Sun Life Insurance Co. Ltd.
5 Tata AIG Life Insurance Company Ltd.
Tata AIG Life Insurance Company Limited, which is a joint venture between Tata Group and American
International Group, Inc. (AIG), offers a number of standard and custom-made life insurance policies.
Tata is one of the oldest and leading business groups of India. Tata Group has had a long association
with India's insurance sector being the largest insurance company in India prior to the nationalisation.
American International Group, Inc (AIG) is the leading U.S. based international insurance and financial
services organization.
6 ING Vysya Life Insurance Company Private Limited
Established in India in September 2001, ING Vysya Life Insurance Company Limited is a joint venture
between Vysya Bank, which is one of the largest private sector banks in India, and ING Insurance Co.,
which is the world's second largest life insurance company. This private life insurance company has
around 140 branches all over India, with head office in Bangalore. ING Vysya Life Insurance Co. has
around 3000 employees with over 21,000 sales insurance agents and brokers. ING Vysya Life presently
has around 4.5 lakh customers, and is making a total income of Rs. 400 crore.
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ING Vysya Life Insurance gives you an opportunity to fulfill your responsibilities towards your family.
The ING Vysya Life protection plans provide financial security to your family in your absence. This
company also provides special policies, such as, Children's Plans; Retirement Plans; Investment Plans
and Savings Plans, which help you to secure your future financially. It also provides Life Insurance,
Medical Insurance, General Insurance, Long-Term Care Insurance, Group Insurance, Company
Insurance and Financial Services Insurance Products.
7 Bajaj Allianz Life Insurance Company Ltd.
Established in India in September 2001, ING Vysya Life Insurance Company Limited is a joint venture
between Vysya Bank, which is one of the largest private sector banks in India, and ING Insurance Co.,
which is the world's second largest life insurance company. This private life insurance company has
around 140 branches all over India, with head office in Bangalore. ING Vysya Life Insurance Co. has
around 3000 employees with over 21,000 sales insurance agents and brokers. ING Vysya Life presently
has around 4.5 lakh customers, and is making a total income of Rs. 400 crore.
ING Vysya Life Insurance gives you an opportunity to fulfill your responsibilities towards your family.
The ING Vysya Life protection plans provide financial security to your family in your absence. This
company also provides special policies, such as, Children's Plans; Retirement Plans; Investment Plans
and Savings Plans, which help you to secure your future financially. It also provides Life Insurance,
Medical Insurance, General Insurance, Long-Term Care Insurance, Group Insurance, Company
Insurance and Financial Services Insurance Products.
16
8 Metlife India Insurance Company Pvt. Ltd.
MetLife India Insurance Co. Pvt. Ltd is a joint venture between MetLife Group and its Indian partners,
including J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities,
Way2Wealth, and Mini Muthoothu. MetLife is insuring the lives of the people for around 140 years.
MetLife is 88 of the top one-hundred FORTUNE 500 companies. MetLife entered Indian insurance
sector in 2001.
MetLife was the first insurance company which established a financial holding company with a
nationally chartered bank. In 2005, Working Mother Magazine honored MetLife Insurance Co. as one
of the "100 Best Companies for Working Mothers". In 2005, the company was listed among the Top 50
Companies for Diversity. In 2006, MetLife was named to the National Association for Female
Executives' annual list of Top 30 Companies for Executive Women. Today, when people are feeling a
greater financial burden than ever before, MetLife is helping millions of its customers in creating their
own personal safety net by taking insurance plans. The plans provided by MetLife Insurance are listed
below:
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Marketing of Insurance In India
Insurance is in a manner of speaking the last frontier in the financial sector to open. It
is also a sector, which leads to benefits across the full spectrum, from the individual
who now have wider choices, to the economy, which see increased savings, to the
infrastructure sector, which can look forward to long term funding being available. In
an under-insured economy, newer channels of distribution have to be utilized to
intensify the reach of insurance both in urban and rural markets. This will create huge
employment opportunities not only within insurance companies but also as agents and
consultants of insurance companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence the
Marketing Mix is different. However, there are certain common characteristics that
one can cull out from the possible strategies that companies adopt.
Product:
The development of flexible products to suit individual requirements is what will

differentiate the winners from the also-rans. The key to success is in providing
insurance solutions, not standardized insurance products. The concept of
riders/optional benefits has already been a huge innovation brought about by the new
players, which has led to customization of products for individual needs. However,
companies may differentiate themselves on the basis of product segments that they
choose to focus on and excel in.
Place:
Different companies may however choose different channels and different

geographies to focus on. The channel options are - tied agency force, corporate agents
and brokers and this is an area where different companies will make different choices.
Many companies like HDFC Standard Life are focusing on all channels whereas
companies like Max New York Life are focusing on the tied agency force only.
Customer interface will be a key challenge for life insurance companies and includes
every that interaction that the customer has with the company, such as sales, new
business underwriting, policy servicing, premium payments, claim processing and so
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on. Technology can play a crucial role in delivering the highest standards of service
set by the company and it will be imperative for any serious player to excel in all of
these.
Price:
Price is a relevant differentiator only in two segments - pure term insurance and in
pure annuities. Here too, service delivery and financial strength will need to be
present at a minimum acceptable level for price to be a relevant differentiator. In case
of savings oriented products, long-term returns generated are more relevant than just
the price of the product. A focus on generating good investment performance and
keeping a tight control on costs help in generating good long-term maturity value for
customers. Norms have been laid down on all of these by IRDA and adhering to these
while delivering good returns will be a challenge.
Promotion and Advertising:
The level of demand is latent and will have to be activated considerably. The market
needs to be developed. Greater awareness of insurance and the need to have it as a
protection tool rather than as a tax planning measure needs to be appreciated by the
Indian people. Various communication tools including advertising, direct marketing
and road shows contribute to all this and different companies take different
approaches on these.
Process:
Cashless settlement: One of the most defining and customer-friendly changes that
weve seen in recent years relates to the way claims settlements are made. The advent
of the third-party administrator (TPA) regime has facilitated the transition to the
hugely convenient era of cashless settlement of health and auto insurance claims.
TPAs are entities who process claims on behalf of insurers: the IRDA licenses them
after it is satisfied that they have the financial strength, the trained manpower, the
infrastructure and the skills to undertake this activity.
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Likewise, with auto insurance, the TPA ties up with garages and authorized service
centers for cashless settlement of auto insurance claims.
Lower premiums: The spirit of competition and the broadening of the risk
experience of insurance companies have contributed to a fall in premiums over the
years. Thats because, other things being equal, an insurer who covers the lives just of
10 people bears a higher risk than an insurer who covers the lives of, say, 100 people.
Further, a broader base will provide greater efficiencies on costs such as distribution,
management and claims. A broad basing of the mortality experience, therefore, gives
insurers the elbowroom to compete by lowering premiums, and that trend is expected
to continue.
Premium payment flexibility: Insurers have imparted certain flexibility to premium

payment options in order to address this concern. For instance, one now have the
option to pay your premiums upfront, which is then carried forward for the tenure of
the policy. The yearly premiums are drawn from the initial corpus. Insurers have also
introduced the concept of automatic cover maintenance to protect your policy from
lapsing owing to your omission to pay your premium on time. Under this, in the event
of your not paying the premium, the insurer dips into your investment account to the
extent of the premium. Of course, this comes with an in-built drawback: your
investment portion diminishes year on year to the extent of the amount paid to cover
your risk.
Physical Evidence:
This can play a significant role for marketing in the Indian scenario. Since Internet
users are comparatively lesser than countries such as US, the offline mode will be
preferred in India. Although the distribution model is largely agent-based, wherever
the customer is in contact with the company, this factor can play a significant role in
luring the customer.
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People:
The most important factor that materializes sales and maintains customer
relationships on a long-term basis is this factor. No matter what distribution
strategy a company adopts, customer relationship has to be taken care of in order
to maintain the customer base on a long-term basis.
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SWOT ANALYSIS
The SWOT analysis of Insurance sector is as follows:-

1. Strength-Very good policies of life coverage.
2. Weaknesses:-unable to convince the people about the products. There are not
much advisors for the insurance companies.
3. Opportunities:-Untapped rural sector and small towns.
4. Threats:-growing competition from larger MNC's.
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INTRODUCTION TO THE COMPANY
Aviva Life Insurance India is a private insurance company formed from a

collaboration between the Aviva insurance group of UK and the Dabur group, one of
India's oldest and top producer of traditional health care products . Aviva's products
are meant to provide customers flexibility, transparency and value for money.
Bancassurance in India
Aviva is also accredited to the introduction of Bancassurance in India. Aviva has

Bancassurance tie ups with the leading Banks in India including ABN AMRO Bank,
American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The Lakshmi
Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan,
Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and
regional Banks.
HISTORY
Aviva insurance group in UK with a history dating back to 1696, today stands as one
of the leading provider of life and pension products to Europe and other parts of the
world. The history of Aviva Life Insurance India starts at 1834 during nationalization
when Aviva was the largest foreign insurance group in terms of the compensation paid
by the Indian Government. In 1995 Aviva was the first foreign insurance company to
start its representative office in India. At present in Aviva Life Insurance India, the
Aviva group is a 26% share holder and the Dabur group holds 74% shares in the joint
venture.
Programme highlights of today
Aviva Life Insurance India has 40 Branches in India, including rural branches
supporting its distribution network. With over 27,000 Financial Planning
Advisers (FPAs) and the Financial Health Check (FHC) programme it has
been successful in setting up its position in the Indian market. The FHC is a
23
free service administered by the FPAs which analyses the customer's long-
term savings and insurance needs and depending on the life stage and earnings
of the customer it selects the proper insurance product for them.
Aviva Life Insurance India initiated the concept of Bancassurance in India and
at present it has Bancassurance tie-ups with ABN Amro Bank, American
Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas
Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat,
Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and
Maharashtra and one regional Bank in Sikkim. This has helped to distribute
Aviva products in nearly 378 towns and cities across India.
Aviva Life Insurance India offers more modern Unit Linked and Unitized With
Profit money products to the customers. Following the IRDA guidelines, with
effect from 1 July 2006, these unit - linked products have been modified.
The products of Aviva insurance group of India are:
LifeLong
LifeSaver or EasyLife Plus
Young Achiever
LifeBond and LifeBond Plus
PensionPlus
LifeShield
Freedom LifePlan
LifeBond
The fund management operations of Aviva Life Insurance India is controlled

from Mumbai and the fund options includes Unitized With-Profits Fund and
four Unit Linked funds:
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Protector Fund - The fund comprises of debt securities in the range of 60-
100%, equities in the range of 0-20% and money market and cash in the range
of 0-20%.
Secure Fund - The fund comprises of debt securities in the range of 50-100%,
equities in the range of 0-20% and money market and cash in the range of 0-
20%.
Balanced Fund - The fund comprises of debt securities in the range of 50-
of 0-10%.
Growth Fund - The fund will comprise of debt securities in the range of 0-
of 0-20%.
These funds provide investment security to the capital of the customers.
Through their association with Basix (a micro financial institution) and other NGOs,
Aviva Life Insurance India have been able to reach out to those underprivileged who
had no access to insurances till day.
In Aviva Life Insurance India , thus , by combining protection and long term savings
the customers can safeguard and provide life products for their family with their
changing needs.
25
Aviva Life Insurance Products
Whole Life
o Life long
Endowment:
o LifeSaver
o EasyLife Plus
o LifeSaver Plus
Child Policy
o Young Achiever
o SaveGuard Junior
o Aviva Little Master
Single Premium
o LifeBond
o LifeBond Plus
Pension Policies:
o Pension Plus
Term
o LifeShield
o Freedom LifePlan (fixed term protection plan)
o LifeBond 5 (a tax efficient & limited premium payment term investment plan)
Aviva has 176 branches in rural and urban cities included. The Aviva Bancassurance
collaborations offer 500 towns and cities connectivity.
Some special services by Aviva that deserve mention are:
26
Aviva's Fund Management Service:
Aviva provides unitized with-profits fund and four unit-linked funds that are Protector
Fund, Secure Fund, Balanced Fund and Growth Fund.
Social Service:
Aviva, in association with Basix - a micro financial institution, works towards
providing insurance facilities to the underprivileged.
27
Insurance Companies in India
Top Insurance Companies
Life Insurance Companies
Home Insurance Companies
GIC
AMP Sanmar
Bajaj Allianz
Bharti AXA
Birla Sun Life
Canara HSBC OBC
Citibank Travel Insurance
Citifinancial Auto Insurance
GE Money
HDFC Life Insurance
ICICI Insurance Co.
ICICI Insurance Schemes
ICICI Prudential
ICICI Lombard
ICICI Life Insurance
ING Vysya
Kotak Mahindra
Max New York
Metlife
Reliance General Insurance
Reliance Life
Reliance Standard Life
Reliance Standard Insurance
Royal Sundaram
Sahara Life
SBI Life
Shriram Life
Tata AIG
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CORPORATE OBJECTIVE
At Aviva Life Insurance, we strongly believe that as life is different at every stage, life
insurance must offer flexibility and choice to go with that stage. We are fully prepared
and committed to guide you on insurance products and services through our well-
trained advisors, backed by competent marketing and customer services, in the best
possible way.
It is our aim to become one of the top private life insurance companies in India
and to become a cornerstone of ALI integrated financial services business in
India.
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CORPORATE MISSION
To set the standard in helping our customers manage their financial future.
BELOW ARE FEW OF THE PLANS THAT ARE OFFERED BY AVIVA LIFE
INSURANCE
INSURANCE PLANS AVAILABLE
ABOUT AVIVA
Aviva Life Insurance Company Limited offers you Products that fulfill your savings
and protection needs.Our aim is to emerge as a transational Life Insurer of global
scale angd standard.
Aviva Life Insurance Company Limited is a group company of Aviva Capital

Limited, a part of Aviva -Anil Dhirubhai Ambani Group.Aviva Capital is one of
India's leading private sector financial services companies.Aviva Capiital has
interests in assets managements and mutual funds,stock brocking,life and general
insurance and other activities of financial services.
The Premiums paid inUnit linked Life Insurance policies are subject to investment
risks associated with capital markets and net asset values of the units may go up or
down based on the performance of fund and factors influencing the capital market and
the insured is responsible for his/her decisions.
Tax laws are subject to changes with retrospective effect and consulting a tax expert
for an opinionis recommended.
Why do I need Protection Plans?
Protection Plans help you shield your family from uncertainties in life due to financial
losses in terms of loss of income that may dawn upon them incase of your untimely
demise or critical illness. Securing the future of ones family is one of the most
important goals of life. Protection Plans go a long way in ensuring your familys
financial independence in the event of your unfortunate demise or critical illness.
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They are all the more important if you are the chief wage earner in your family. No
matter how much you have saved or invested over the years, sudden eventualities,
such as death or critical illness, always tend to affect your family financially apart
from the huge emotional loss.
1Protection Plans
In todays uncertain world, there could be calamity at every step of the life. It is up to
you to ensure that your family stays protected always.
Aviva Protection Plans helps you do exactly the same. You have a wide range of
options to choose a plan from. Right from limited period plans to lifetime protection
plans, you can opt for the one that suits your lifestyle.
While we understand that nothing can compensate for the loss of a life, we intend to
provide you the peace of mind. Investing in Aviva Protection Plans would mean your
familys future is in safe hands.
Type of Protection Plans
Aviva Term Plan

Aviva Term Plan is a pure life insurance Plan that offers you comprehensive and
affordable coverage for a limited period of time to suit your needs.
Key Features
Get higher insurance protection at economical rates
Optional Accidental and Disablement Rider to enhance protection
Economical way to protect your family against financial liabilities Like loss of
income and outstanding loans etc
Discount on premium rates for women
Suitable for business owners who want to cover the life of their key employees
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Aviva Special Term Plan is a pure life insurance plan that offers you comprehensive
and affordable coverage for a limited period
of time to suit your needs.
Key Features
Get higher insurance protection at economical rates
Basic premiums paid will be refunded at maturity
Choose to pay Regular or Single Premium
Discount on premium rates for women
Choose to add the Benefits of two riders to your Policy-Critical Illness and Accidental
Death Benefit and Total and Permanent Disablement Rider
Aviva Endowment Plan gives you just the financial independence to realise your
dreams in the future. It lets you decide how much you would like to set as your Sum
Assured based on your current financial position and your expected future expenses.
Key Features
On maturity receive Sum Assured plus bonuses
Wealth creation through bonus additions
More Value for your money by way of High Sum Assured Rebate
Choose to add the Benefit of three Riders-Aviva Term Life Insurance Benefit Rider,
Aviva Critical Conditions Rider and Aviva Accidental Death and Total and Permanent
Disablement Rider
Choose to avail of Policy Loan after three years
Why do I need Savings & Investment Plans?
You have always given your family the very best. And there is no reason why they
shouldnt get the very best in the future too. As a judicious family man, your priority
is to secure the well-being of those who depend on you. Not just for today, but also in
32
the long term. More importantly, you have to ensure that your familys future
expenses are taken care, even if something unfortunate were to happen to you
2 Saving &Investment Plans
Aviva Super Automatic Investment Plan is an enhanced Unit Linked plan addressing
comprehensive needs to strike that perfect balance of Protection and Savings with full
flexibility as you grow in your career. Aviva Super Automatic Investment Plan gives
you full flexibility to choose just the right investment mix to reap higher benefits.
Key Features Aviva Super Automatic Invest Plan
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Two plan options to choose from Ready-made & Tailor-made.
Life Stage asset allocation to ensure automatic change in investment patterns - under
Ready-made Plan option. Freedom to decide your own fund mix based on your risk
profile under Tailor-made Plan Allows Systematic transfer plan to average out the cost
of unit purchases in equity.
Regular, limited, single premium paying options Unmatched flexibility through our
Exchange Option to move between Aviva suite of unit linked products Liquidity in
the form of partial withdrawal. Option to package policy with Aviva Major Surgical
Benefit Rider, Aviva Critical Conditions (25) Rider, Aviva Term Life Insurance
Benefit Rider, Aviva Accidental Death and Total and Permanent Disablement Rider
With Aviva Super Market Return plan you can have the twin advantage of insurance
protection as well as reaping the benefits of investment growth. It is a flexible plan
which works all through your life and meets the changing requirements like additional
protection, liquidity through cash, option to invest in different asset class, steady
golden years and many more.
Key Features Aviva Super Market Return Plan:
Twin benefit of market linked return and insurance protection. A Unit Linked Plan,
different form traditional Life Insurance products, with maximum maturity age of 80
years Option to create your own portfolio depending on your risk appetite Choose
form eight different investment funds Flexibility to switch between funds Option to
pay regular as well as single premium & Top-ups Option to package policy with Aviva
Major Surgical Benefit Rider, Aviva Critical Conditions (25) Rider, Aviva Term Life
Insurance Benefit Rider, Aviva Accidental Death and Total and Permanent
Disablement Rider Liquidity through partial withdrawals the Aviva Money Guarantee
Plan is Unit Linked product addressing comprehensive need to strike that perfect
balance of Protection and Savings, that you deserve as you grow successfully. The
Aviva Money Guarantee Plan is a Regular Premium Unit Linked Policy which
guarantees the entire premium (including premiums for top-ups) paid by you. This is a
plan which helps you reap all the benefits of a rising market simultaneously protecting
34
you from the downside risk of the market.
Key Features
Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on

death before the maturity.
Capital Guarantee is available on both the basic premiums as well as on top-up

premiums
Unique Return Shield feature to protect your returns
Choice to invest from 3 pre-packaged investment fund options
Unmatched flexibility through our Exchange Option to move between the Aviva Life
Insurance Unit Linked products offered, as you grow up the ladder
Liquidity in the form of partial withdrawals from top-up fund
Option to package with Accidental Death & Disability and Term Insurance riders
Why do I need Retirement Plans?
Retirement Plans provide you with financial security so that when your professional
income starts to ebb, you can still live with pride without compromising on your
living standards. By providing you a tool to accumulate and invest your savings, these
plans give you a lump sum on retirement, which is then used to get regular income
through an annuity plan. Given the high cost of living and rising inflation, employer
pensions alone are not sufficient. Pension planning has therefore become critical
today.
Indias average life expectancy is slated to increase to over 75 years by 2050 from the
present level of close to 65 years. Life spans have been increasing due to better health
and sanitation conditions in the country. However, the average number of years of
employment has not been rising commensurately. The result is an increase in the
number of post-retirement years.
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3 Retirement Plans
Aviva Wealth + Health Plan, a health insurance plan underwritten by Aviva Life
Insurance Company Limited, is designed to work in conjunction with contributions
towards savings. The uniqueness of this plan is that it not only provides benefits for
covered injuries but also for other injuries by encashment from the unit fund. This
plan from Aviva Life offers the Hospitalization and Surgical Benefits and also covers
Critical Illnesses. In short this plan provides you with a personalised quality health
cover that fits your lifestyle.
Key Feature
A Unit Linked plan with Unique Savings Component
Twin benefit of market linked return and health protection
Choose from two different plan options
Flexibility to take care of your familys health
Option to pay Top-ups
Option to package with multiple riders
Liquidity through partial withdrawals
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UNDER THIS PLAN THE INVESTMENT RISK IN THE INVESTMENT
PORTFOLIO IS BORNE BY THE POLICYHOLDER.
Retirement means different things to different people, while some want to relax and
take a trip around the world, some want to start up a venture of their own, and pursue
a dream harnessed for years. The power to make your autumn years special lies only
with you. The Aviva Super Golden Years Plan gives you the power and the right kind
of solution - A retirement plan that allows you to save systematically and generate the
much-needed corpus to make your olden years look golden.
Key Features Aviva Super Golden Years Plan:
Invest systematically and secure your golden years
A flexible unit-linked pension product that is different from traditional life insurance
products with Vesting Age between 45 & 70 years
Eight different investment funds to choose from
Flexibility to switch between funds
Option to pay Regular, Single as well as Top-up premiums
Flexibility to advance / extend your Vesting Age
Aviva Life Insurance Company Limited promises to bring to you with its Total
Investment Plan Series II Pension. To know more, read further
We value your dreams in this journey of life. Aviva Total Investment Plan Series- II
Pension (TIPS-II Pension) are the eyes to let you see them becoming reality.
Your need for investment keeps changing at different stages of life. We promise to
walk through every need with you in the span spent with us and ever beyond that and
so on
Whether it is start of your career, your marriage, birth of child, education of children,
37
their marriage, your old age requirements everywhere you would find Aviva Total
Investment Plan Series II- Pension assisting you financially and thereby providing
relief mentally too in totality.
Utilize our multifarious flexibility options at par as per your convenience.
As you progress on this ladder of life we provide you the platform to increase your
investment component. With the Aviva TIPS- II Pension you can meet all your
financial needs, without the complexity of managing multiple products.
Key Features
This is a Single premium unit linked pension plan with options to purchase the same
plan with reduced allocation charges in subsequent policy years. Since more premium
is allocated towards investment due to lower allocation charges on subsequent
purchases greater would be the returns. Purchasing the same plan in the subsequent
years is an option.
1st purchase would be called as Classic
2nd purchase would be called as Silver
3rd purchase would be called as Gold
4th purchase would be called as Diamond
5th purchase would be called as Platinum
Once the client purchases the first policy there will full flexibility for the client as to
when second and subsequent purchase can be made and how much premium should
be paid for each purchase subject to the following -
1 The minimum premium on each purchase should be at least Rs. 25,000.
2 The maturity date on each purchase cannot exceed 70 years
3 All the polices should mature on maturity date of the first purchase.
4 The term of the polices purchased during second, third, fourth and fifth policy years
will be 9, 8, 7 and 6 respectively.
38
5 New policy can be purchased only if all the previous polices are in force on the date
of purchase of new policy.
Why do I need Child Plans?
Child Plans helps you save so that you can fulfill your childs dreams and aspirations.
These plans go a long way in securing your childs future by financing the key
milestones in their lives even if you are no longer around to oversee them. As a
parent, you wish to provide your child with the very best that life offers, the best
possible education, marriage and life style.
Most of these goals have a price tag attached and unless you plan your finances
carefully, you may not be able to provide the required economic support to your child
when you need it the most. For example, with the high and rising costs of education,
if you are not financially prepared, your child may miss an opportunity of a lifetime.
4 Child Plans
Aviva Child Plan
Aviva Child Plan helps you save systematically so that you can give your child the
much-needed financial security in the future. Simply put, Aviva Child Plan gives you
the freedom to enjoy every moment with your child today, without worrying about
his/her tomorrow.
Key Features
Risk protection for you during the term of the Policy
Accumulated bonus at the end of the Policy Term
25% of Sum Assured payable every year as lump sum Benefit during the last four
Policy Anniversaries
All future premiums are waived in the event of unfortunate loss of life
Guaranteed Fixed Benefits continue even after loss of life of the Policy holder
39
More value for your money by way of High Sum Assured Rebate
Choose to add the Benefit of two Riders - Critical Illness and Accidental Death
Benefit and Total and Permanent Disablement Rider
Policy participates in profit even after the loss of life of the life Assured
Aviva Secure Child Plan - a unique life insurance cum savings plan. Start saving from
now and secure the future of your child.
Key Features Aviva Secure Child Plan:
Insurance cover on the life of child
Money at critical milestones in your child's career path - college education, higher
education, marriage
Your child is completely protected - we will continue to pay the premiums even if you
are not alive
Life time income to child in the event of disability
Return Shield option to protect your investment returns
Liquidity in the form of partial withdrawals
Capital guarantee available on maturity and on death of the child under Regular
Premium basic policy
Option to package with Aviva Accidental Death and Total and Permanent Disablement
Rider, Aviva Critical Conditions Rider and Aviva Term Life Insurance Benefit Rider.
Loyalty addition of 1% of the premiums paid under basic plan and top ups
Aviva Super InvestAssure Plan
A plan that promises you, what you ought to deserve as you reach greater heights in
life. What more can you ask for except gifting yourself with Aviva Super
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InvestAssure Plan.
Key features Aviva Super InvestAssure Plan
Twin benefit of market linked return and insurance protection.
Guaranteed additions at the rate of 50% of your first years basic premium at interval
of every 5 years from 10th year till policy is in force.
Investment opportunity with flexibility -Choose from 8 pure investment fund options.
Option to pay Top-up premium(s).
Liquidity in the form of partial withdrawals.
A host of optional rider benefits to enhance protection cover.
41
Method Adopting of Data Collection
There are two types of data collection technique. i.e.
Primary Data and
Secondary Data.
In my research project there is no need to collect primary data. I want only secondary
data that I have been collected by different sources.
Internet- From the internet we have take the histories of companies for the
introduction
part. We search some data from the website of company and search engine like
Google.
Books- Books are also helpful us for the data research. We have taken help of books
to
calculate the ratios and analyzing the financial statements like Profit & Loss account
and
Balance sheet etc
42
KEY FINDINGS OF FINANCIAL ANALYSIS OF EXISTING BUSINESS
1 Financial Data
A synopsis of the financial position / performance (based on analysis of the

books of accounts provided to us by the client) is placed below.
(Amt. in Rs. Lakhs)
PARTICULARS 2005-06 2006-07 2007-08

Sales & Direct Income 695.35 547.01 540.14
Net Purchases 676.84 531.75 497.37
Cost of Goods Sold 672.49 525.40 499.30
Gross Profit 22.86 21.62 40.84
Indirect Income 1.92 0.00 0.00
Net Profit 3.05 2.31 2.66
Opening Stock 17.51 26.03 36.06
Closing Stock 26.03 36.06 39.20
Average Stock 21.77 31.04 37.63
Current Assets 123.34 136.89 109.62
Quick Assets 87.16 90.25 65.79
Other Current Liabilities 48.70 77.57 55.31
Working Capital Limit 39.66 34.97 39.94
External Liabilities 131.15 153.69 128.28
Own Funds 10.15 9.33 5.75
Long Term Debt Funds 7.13 3.48 1.20
Unsecured Debt Funds 35.66 37.67 31.82
Total Funds 141.30 163.02 134.02
Total Assets 141.30 163.02 134.02
Net Working Capital 34.98 24.35 14.37
Capital Employed 92.60 85.45 78.72
Debt/Owners Fund 4.21 4.41 5.75
Net Worth / Total Assets (%) 7.19 5.72 4.29
Total Assets / External Liabilities 1.08 1.06 1.04
Inventory Holding Period (in days) 12 22 28
Avg. Debtors Collection Period (in days)* **** 44 46
Avg. Payment Period (in days)* **** 41 46
* Average debtors collection period and average payment period for the financial year
2005-06 are not shown as the opening balances of debtors and creditors were not
available.
43
44
2 Comparative Common Size Statement
Balance Sheet (As a % of Total Funds)
PARTICULARS 2005-06 2006-07 2007-08
Owners Fund 7.19 5.72 4.29
Secured Long Term Debt 5.04 2.14 0.90
Unsecured Long Term Debt 25.23 23.11 23.75
Current Liabilities 62.54 69.03 71.07
TOTAL 100.00 100.00 100.00
Fixed Assets 12.71 16.03 18.21
Current Assets 87.29 83.97 81.79
TOTAL 100.00 100.00 100.00
The comparative common size statement of the Balance Sheet expresses the items of
the Balance Sheet as a percentage of total funds. The analysis of the above table
reveals the following :
1. Both in rupee terms as well as percentage term, the net-worth/own funds of the
unit have shown a decreasing trend in the financial years under study. The
proportion of current liabilities has shown an increasing trend. It may be
mentioned that the long term sources of funds were more than the long term
uses in all the FYs under study and debt-owners fund ratio was on the higher
side.
2. The major component of assets was comprised of current assets. The current
assets have shown a decreasing trend and fixed assets have shown an
increasing trend.
Income Statement (As a Percentage of Sales & Direct Income)
45
PARTICULARS 2005-06 2006-07 2007-08
SALES & DIRECT INCOME 100 100 100
Cost of Goods Sold 96.71 96.05 92.44
Gross Profit 3.29 3.95 7.56
Operating Expenses 1.94 1.94 4.63
Operating Profit 1.35 2.01 2.93
Non Operating Expenses (Other than Interest) 0.18 0.21 0.21
Indirect Income 0.28 0.00 0.00
EBIT 1.44 1.80 2.72
Interest 1.00 1.38 2.23
PBT 0.44 0.42 0.49
Tax 0.00 0.00 0.00
PAT 0.44 0.42 0.49
46
CHAPTER 2
RESEARCH
METHODOLOGY
47
All the findings and conclusions obtained are based on the survey done in the working
area within the time limit. I tried to select the sample representative of the whole
group during my job training. I have collected data from people linked with different
profession at Delhi.
RESEARCH PLAN:
Preliminary Investigation:
In which data on the situation surrounding the problems shall be gathered to arrive at
The correct definition of the problem.
An understanding of its environment.
Exploratory Study:
To determine the approximate area where the problem lies.
RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the
problem. By analyzing the secondary data, the study aim is to explore the short
comings of the present system and primary data will help to validate the analysis of
secondary data besides on unrevealing the areas which calls for improvement.
DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected through self Administration. Due
to time limitation and other constraints direct personal interview method is used. A
structured questionnaire was framed as it is less time consuming, generates specific
and to the point information, easier to tabulate and interpret. Moreover respondents
prefer to give direct answers. In questionnaires open ended and closed ended, both the
types of questions has been used.
48
COLLECTION OF DATA:
1: Secondary Data: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the companys database and website of
the company.
2: Primary data: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample
from the universe to know about its characteristics.
Sampling Units: Different professionals Chartered Accountants, Tax
Consultants, Lawyers, Business Man, Professionals and House Wives of
Delhi.
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.
SAMPLE SIZE:
My sample size for this project was 200 respondents. Since it was not possible to
cover the whole universe in the available time period, it was necessary for me to take
a sample size of 200 respondents.
49
DATA COLLECTION INSTRUMENT DEVELOPMENT:
The mode of collection of data will be based on Survey Method and Field Activity.
Primary data collection will base on personal interview. I have prepared the
questionnaire according to the necessity of the data to be collected.
RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about the different marketing

aspects of the Financial Consultant within 60 days.
As stipend, money was not given it was difficult to continue the project work.
All the work was limited in some limited areas of Delhi so the findings should
not be generalized.
The area of research was Delhi and it was too vast an area to cover within 60
days.
Objectives of the study:
To get an empirical view of the Aviva.
To study the procedure of customer complaints in Aviva.
To get an insight of all the competitors.
To study the various products offered.
To study the customers preference and perception regarding Aviva.
50
CHAPTER 3
CONCEPTUAL
DISCUSSION
LITRATURE REVIEW
Insurance Market- Present:
51
The insurance sector was opened up for private participation four years ago. For years
now, the private players are active in the liberalized environment. The insurance
market have witnessed dynamic changes which includes presence of a fairly large
number of insurers both life and non-life segment. Most of the private insurance
companies have formed joint venture partnering well recognized foreign players
across the globe.
There are now 29 insurance companies operating in the Indian market 14 private life
insurers, nine private non-life insurers and six public sector companies. With many
more joint ventures in the offing, the insurance industry in India today stands at a
crossroads as competition intensifies and companies prepare survival strategies in
scenario.
There is pressure from both within the country and outside on the Government to
increase the Foreign Direct Investment (FDI) limit from the current 26% to 49%,
which would help JV partners to bring in funds for expansion.
There are opportunities in the pensions sector where regulations are being framed.
Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued
the first license for a standalone health company in the country as many more players
wait to enter. The health insurance sector has tremendous growth potential, and as it
matures and new players enter, product innovation and enhancement will increase.
The deepening of the health database over time will also allow players to develop and
price products for larger segments of society.
State Insurers Continue To Dominate There may be room for many more
players in a large underinsured market like India with a population of over one billion.
But the reality is that the intense competition in the last five years has made it difficult
for new entrants to keep pace with the leaders and thereby failing to make any impact
in the market.
13
Also as the private sector controls over 26.18% of the life insurance market and over
26.53% of the non-life market, the public sector companies still call the shots.
The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a
share
of 74.82% in new business premium income in November 2005.
Similarly, the four public-sector non-life insurers New India Assurance, National
52
Insurance, Oriental Insurance and United India Insurance had a combined market
share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company
continues to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is the leader among
the private non-life players with a 8.11% market share. ICICI Lombard has focused
on growing the market for general insurance products and increasing penetration
within existing customers through product innovation and distribution.
Reaching Out To Customers No doubt, the customer profile in the insurance
industry is changing with the introduction of large number of divergent intermediaries
such as brokers, corporate agents, and bancassurance.
The industry now deals with customers who know what they want and when, and are
more demanding in terms of better service and speedier responses. With the industry
all set to move to a detariffed regime by 2007, there will be considerable improvement
in customer service levels, product innovation and newer standards of underwriting.
Intense Competition In a de-tariffed environment, competition will manifest itself
in prices, products, underwriting criteria, innovative sales methods and
creditworthiness. Insurance companies will vie with each other to capture market
share through better pricing and client segmentation.
The battle has so far been fought in the big urban cities, but in the next few years,
increased competition will drive insurers to rural and semi-urban markets.
14
Global Standards While the world is eyeing India for growth and expansion, Indian
companies are becoming increasingly world class. Take the case of LIC, which has set
its sight on becoming a major global player following a Rs280-crore investment from
the Indian government. The company now operates in Mauritius, Fiji, the UK, Sri
Lanka, and Nepal and will soon start operations in Saudi Arabia. It also plans to
venture into the African and Asia-Pacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry with a series of
catastrophes hitting the Indian sub-continent.
However, with robust reinsurance programs in place, insurers have successfully
managed to tide over the crisis without any adverse impact on their balance sheets.
With life insurance premiums being just 2.5% of GDP and general insurance
premiums being 0.65% of GDP, the opportunities in the Indian market place is
53
immense. The next five years will be challenging but those that can build scale and
market share will survive and prosper.
(G)
Share capital
Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of an
entity after deducting all its liabilities. Accordingly, a financial instrument is treated as
equity if:
I.
There is no contractual obligation to deliver cash or other financial assets or to
exchange financial assets or liabilities on terms that may be unfavorable; and
II.
The instrument is a non-derivative that contains no contractual obligation to
deliver a variable number of shares, or is a derivative that will be settled only by the
Company exchanging a fixed amount of cash or other assets for a fixed number of the
Companys own equity instruments.
Dividends
Dividends on ordinary shares are recognized in equity in the period in which they are
paid and, for the final dividend, approved by shareholders. Dividends on preference
shares are recognized in the period in which they are declared and appropriately
approved.
37
Research Methodology
Market research is the process of systematic gathering, recording and analyzing of
data about customers, competitors and the market. Marketing research (also called
consumer research) is a form of business research. It is a form of applied sociology
which concentrates on understanding the behaviors, whims and preferences, of
consumers in a market-based economy. Market research can help create a business
plan, launch a new product or service, fine tune existing products and services,
expand into new markets etc. It can be used to determine which portion of the
population will purchase the product/service, based on variables like age, gender,
54
location and income level. It can be found out what market characteristics your target
market has. With market research companies can learn more about current and
potential customers.
The purpose of market research is to help companies make better business decisions
about the development and marketing of new products and in the case of financial
market research, it shows the company worthiness and position in front of people.
Market Research Process
Defining the Research Problem
Selecting and Establishing Research Design
Select the Research Design
Identify Information types and Sources
Determining and Design Research Instrument
Collecting and Analyzing Data
Formulate Findings
Method Adopting of Data Collection

There are two types of data collection technique. i.e.
Primary Data and
Secondary Data.
In my research project there is no need to collect primary data. I want only secondary
data that I have been collected by different sources.
Internet- From the internet we have take the histories of companies for the
introduction part. We search some data from the website of company and search
engine like Google.
Books- Books are also helpful us for the data research. We have taken help of books
to calculate the ratios and analyzing the financial statements like Profit & Loss
account and Balance sheet etc.
Finding/Facts
55
By this project I found that company position is not that much good right now
because of slowdown in year 2005-06 and that impacted a lot on companys
ratio.
The ratio like Current Ratio, Quick Ratio, Earning par share, Return on Capital
Employed or Shareholder Funds, Operating Profit, Net Profit Margin and Debt-Equity
Ratio are in decline position.
These ratios show that company is not utilizing its fund properly and the
working capital requirement is highly.
By this project I found that the operating expenses are very high due to
recovery period from global slowdown.
I found that if company will focus on its liabilities so they can overcome
from the negative growth.
The cash flow statement shows its working.
The credit rating that the company got in year 2205 was very good. But after
that recession it changed, here credit rating play very important role because almost
60% investors invest their money on the basis of goodwill or credit rating that a
company hold in the market.
1.As the people think that insurance is a tool to protect their family & a tax saving
device. They are aware of the fact & realizing its, importance. The company should
try to expand & build up its infrastructure because there is a large potential for
insurance in India.
2.Company should come up with its branch in Delhi. With the objective and goals to
meet the demands & expectations of the public. Because the entrance of private
players will increase the competition and it would be a tough task to secure a good
position in market.
3.Since Aviva Life Insurance is leading with several companies policies it should be
56
easy for them to penetrate into the market and secure a good position if they pay
greater attention to the service part provided to their customer and thereby forming a
long and trusted relationship.
57
LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of Delhi and does not necessarily
shows a pattern applicable to all of
Country.
2. Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings.
58
DATA ANALYSIS
59
Data Analysis
Q1. Are you currently insured?
Particulars No. of Respondents Percentage
Yes 31 62%
No 19 38%
Total 50 100%
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 62% of the respondents are already insured.

b) 38% of the respondents are not insured.
Q2. Are you satisfied with your current insurer?
60
Yes 41 82%
No 9 18%
Total 50 100%
ANALYSIS:
a) 82% of the respondents are satisfied.

b) 18% of the respondents are not satisfied.
61
Q3. Which one is your favored insurance company?
LIC 24 48%
ICICI 7 14%
HDFC 5 10%
Birla Sun Life 4 8%
Bajaj Allianz 4 8%
Others 6 12%
Total 50 100%
ANALYSIS:
a) 48% of the respondents likes LIC.

b) 14% of the respondents likes ICICI.
c) 10% of the respondents likes HDFC.
d) 8% of the respondents likes Birla Sun Life.
e) 8% of the respondents likes Bajaj Allianz.
f) 12% of the respondents likes other companies.
62
Q4. Are you interested in the products offered byAviva?
Yes 30 60%
No 12 24%
Cant Say 8 16%
Total 50 100%
ANALYSIS:
a) 60% of the respondents are attracted towards Aviva products.

b) 24% of the respondents are not attracted towards Aviva
products.
c) 16% of the respondents Cant Say about it.
63
Q5. What is your main concern while taking an insurance policy ?
Tax Benefit 20 40%

Security 16 32%
Investments/Savings 14 28%
Total 50 100%
ANALYSIS:
a) 40% of the respondents are concerned about Tax Benefit.

b) 32% of the respondents are concerned about their Security.
c) 28% of the respondents are concerned about
Investment/Savings.
64
Q6. Does this policy satisfy your financial needs? (Please rate on
the scale of 1 to 5 with 1 being least satisfied)
Rating No. of Respondents Percentage
1 9 18%
2 9 18%
3 8 16%
4 10 20%
5 14 28%
Total 50 100%
1
2
5
1
2
3
4
3
5
ANALYSIS:
a) 18% of the respondents are Highly unsatisfied.

b) 18% of the respondents are Unsatisfied.
c) 16% of the respondents are Moderate.
d) 20% of the respondents are Satisfied.
e) 28% of the respondents are Highly satisfied.
65
Q7. Please express your opinion for the premiums paid for the
above policy?
Very High 14 28%

High 11 22%
Moderate 13 26%
Low 8 16%
Very Low 4 8%
Total 50 100%
ANALYSIS:
a) 28% of the respondents think that Premium is Very High.

b) 22% of the respondents think that Premium is High.
c) 23% of the respondents think that Premium is Moderate.
d) 15% of the respondents think that Premium is Low.
e) 12% of the respondents think that Premium is Very Low.
66
Q8. How do you come to know about this policy?
Advertisements 10 20%
Friends and 12 24%
Relatives
Direct Selling Agents 21 42%
Others 7 14%
Total 50 100%
ANALYSIS:
a) 20% of the respondents know about it from Advertisements.

b) 24% of the respondents know about it from Friends and
Relatives.
c) 42% of the respondents know about it from Direct Selling
Agents.
d) 14% of the respondents know about it from Other Sources.
67
Q9. Are you satisfied with the incentives (tax benefits or Bonuses)
associated with your policy?
Rating No. of Respondents Percentage
Highly satisfied 9 18%

Satisfied 12 24%
Moderate 10 20%
Unsatisfied 11 22%
Highly Unsatisfied 8 16%
Total 50 100%
ANALYSIS:
a) 18% of the respondents are Highly Satisfied.

b) 24% of the respondents are Satisfied.
c) 20% of the respondents are Moderate.
d) 22% of the respondents are Unsatisfied.
e) 16% of the respondents are Highly Unsatisfied.
68
Q10. According to you, in what areas should the insurance companies
work upon?
Easy Procedures 14 28%

Fewer premiums 10 20%
More Returns 9 18%
Transparency 17 34%
Total 50 100%
ANALYSIS:
a) 28% of the respondents want Easy procedures.

b) 20% of the respondents want Fewer premiums.
c) 18% of the respondents want More returns.
d) 34% of the respondents want Transparency.
69
Q11. Do You think that services have improved after allowing private
players in insurance sector ?
Yes 40 80%
No 10 20%
Total 50 100%
20%
Yes
No
80%
ANALYSIS:
a) 80% of the respondents think that services have improved.

b)20% of the respondents think that services have not improved.
70
CONCLUSION
The balance-sheet along with the income statement is an important tools for investors
and many other parties who are interested in it to gain insight into a company and its
operation. The balance sheet is a snapshot at a single point of time of the companys
accounts- covering its assets, liabilities and shareholders equity. The purpose of the
balance-sheet is to give users an idea of the companys financial position along with
displaying what the company owns and owes. It is important that all investors know
how to use, analyze and read balance-sheet. P & L account tells the net profit and net
loss of a company and its appropriation.
In the case of Aviva Life Insurance, during fiscal 2008, the bank continued to grow
and diversify its assets base and revenue streams. Bank maintained its leadership in all
main areas such as retail credit, wholesale business, international operation, insurance,
mutual fund, rural banking etc.
Trend analysis of profit & loss account and balance sheet shows the % change in
items of p & l a/c and balance sheet i.e. % change in 2006 from 2005 and % change in
2007 from 2006. It shows that all items are increased mostly but increase in this year
is less than as compared to increase in previous year. In p & l a/c, all items like
interest income, non-interest income, interest expenses, operating expenses, operating
profit, profit before tax and after tax is increased but in mostly cases it is less than
from previous year but in some items like interest income, interest expenses,
provision % increase is more. Some items like tax, depreciation, lease income is
decreased. Similarly in balance sheet all items like advances, cash, liabilities, deposits
is increased except borrowings which is decreased. % increase in some item is more
than previous year and in some items it is less.
71
Ratio analysis of financial statement shows that banks current ratio is better than the
quick ratio and fixed/worth ratio. It means bank has invested more in current assets
than the fixed assets and liquid assets. Bank have given more advances to its customer
and they have less cash in their hand. Profitability ratio of bank is lower than as
compared to previous year. Return on equity is better than the return on assets.
The cash flow statement shows that net increase in cash generated from operating and
financing activities is much more than the previous year but cash generated from
investing activities is negative in both year. There is increase of 159,708,479 thousand
RS. in Increase in cash & cash equivalents from previous year. Therefore analysis of
cash flow statement shows that cash inflow is more than the cash outflow in Aviva
Life Insurance.
Thus, the ratio analysis and trend analysis and analysis of cash flow statement shows
that Aviva Life Insurance financial position is good. Banks profitability is increasing
but not at high rate. Banks liquidity position is fair but not good because bank invest
more in current assets than the liquid assets. As we all know that Aviva Life Insurance
is on the first position among all the private sector bank of India in all areas but it
should pay attention on its profitability and liquidity. Banks position is stable.
72
QUESTIONNAIRE
Study of insurance Advisor work in Insurance Market:-
The personal questions from the advisors:
1).Name ___________________________
2).Sex
Male
Female.
3).Age?
18 21..
21 30..
31- 45..
Above 45
4).What is your qualification?

12th pass
graduate
post graduate
5).Occupation other than an insurance advisor?
Student .
Profession..
Service
Business man.
House wife.
Other specify..
6).What is your Monthly Income?

5,000 10,000
10,000 20,000.
more than 20,000..
7).Do you understand what Insurance is?
Yes
No
73
8).Are you aware about insurance companies?
Yes.
No
9).Are you aware about advisors schemes?
Yes.
No
10).Are you aware about your job profile?
Yes
No..
11). Are you satisfied with your present employment?

Yes..
No..
12). While choosing an Insurance company, what factors are important for you?
Different factors We Preferable but We dont think
will go not compulsory it is important
for it
Trustworthy insurance
company
Mouth Advertising
Suitable policy available
Incentives rate
Benefits offered
Service offered
Financial strength of company
Reliability of company
How long company exists
Certified reports about
companies
13). What do you look for, while selecting for a Life Insurance Company?
incentives & commission.
Goodwill
Additional Benefits
Security
Others, specify .
74
14). With whom will I be working in future? And why?
L.I.C..
HDFC SLIC..
Tata Aig
Aviva..
Kotak Mahindra.
I.C.I.C.I
SEBI
Max New York
other specify.
15).What kind of advisors are you ?

the Broker
the Trust Department
the Insurance Agent.
the Registered Investment Advisor (RIA)
16).What is the size of your firm and , how many clients do you have?
a).10 20 b).between 20 40 c). More than 40.
17).What is your investment philosophy?

Questions related to the professional experience of the Insurance advisor:-
18).How you search for prospective customers?
through relations.
through e-mail data.
through reference of past clients
19).Which different Insurance companies are you aware of?
75
Companies I am aware New for me
LIC
ICICI
HDFC SLIC
Birla
Tata
SBI-Life
Allianz Bajaj Life
Kotak Mahindra
AMP Sanmar
Aviva Life
ING Vyasya
Max Newyork
Metlife
20).How many policies do you promote in a month?
10- 20.
More than 20.........
21).What type of policy do you prefer to clients? (Put tick mark).

Endowment ..
Money Back..
Term Policy.
Whole Life
Single Premium.
Other, specify
22). What do the customers look for, while opting for a Life Insurance policy?
Tax Saving..
Income Security..
Old Age Benefits.
Savings..
Other, specify
23). How often you visit for business in a month ?

2 - 5..
5-10.
More than 10
76
24). And are you able to finalise all deals?
Yes.
No..
25).Describe your typical client?

who have knowledge of insurance
who are client`s friend..
reference through relatives..
THANK YOU
77
BIBLIOGRAPHY
WEBSITES REFFERED:
www.avivalife.co.in
www.irdaindia.org
www.insuranceinstituteofindia.com
www.iloveindia.com/finance/insurance/companies
MAGAZINES & NEWSPAPER
Business Today
India Today
Times of India
Hindustan Times
78
QUESTIONNAIRE
Name - _____________
Age - _____________
Occupation - _____________
Q1. Are you currently insured?

- Yes
- No
If yes, please give the details of company, plan, premium etc.
Q2. Are you satisfied with your current insurer ?

- Yes
- No
Q3. Which is your favoured insurance company ?

- LIC
- ICICI
- HDFC
- Birla sun life
- Bajaj Allianz
- Others
Q4 Are you interested in the products offered by Aviva ?

- Yes
- No
- Cant say
Q5. What is your main concern while taking an insurance policy ?
- Tax benefit
- Security
- Investment/Savings
79
Q.6 Does this policy satisfy your financial needs? (Please rate on the scale
of 1 to 10 with 1 being least satisfied)
Q.7 Please express your opinion for the premiums paid for the above policy?
-Very high [ ]
-High [ ]
-Moderate [ ]
-Low [ ]
-Very Low [ ]
Q.8 How do you come to know about this policy? (Please tick).
-Advertisements [ ]
-Friends and relatives [ ]
-Direct selling agents [ ].
- Others (please specify) _____________________.
Q.9 Are there any incentives (tax benefits or Bonuses) associated with this
policy? (Please give appropriate details about it).
___________________________________________________________
_____________________________________________________
10. Are you satisfied with the incentives associated with your policy?
-Highly satisfied [ ].
-Satisfied [ ]
-Moderate [ ]
-Unsatisfied [ ]
-Highly Unsatisfied [ ].
80
Q11. According to you, in what areas should the insurance companies work upon?
- Less complicated procedures

- Fewer premiums
- More returns
- Transparency
Q12. Do You think that services have improved after allowing private players in
insurance sector ?
- Yes
- No
Your comments on Aviva Life Insurance
__________________________________________________________________
__________________________________________________________________
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BHARATI VIDYAPEETH DEEMED UNIVERSITY

CHAPTER -3: FINANCIAL STATEMENTS OF AVIVA 32

CHAPTER-4: FACTS AND FINDINGS 33

CHAPTER-5: DATA AND INTERPRETATION 34 - 51

CONCLUSION & RECOMMENDATIONS 52 - 53

The success story of good market share of different market organizations

In India, insurance has a deep-rooted history. It finds mention in the writings of

In 1914, the Government of India started publishing returns of Insurance

The Insurance Amendment Act of 1950 abolished Principal Agencies. However,

Following the recommendations of the Malhotra Committee report, in 1999, the

In December, 2000, the subsidiaries of the General Insurance Corporation of India

INTRODUCTION TO THE INDUSTRY

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

1. HDFC Standard Life Insurance Company Ltd.

3. ICICI Prudential Life Insurance Company Ltd.

5 Tata AIG Life Insurance Company Ltd.

6 ING Vysya Life Insurance Company Private Limited

7 Bajaj Allianz Life Insurance Company Ltd.

Marketing Mix Policies

The development of flexible products to suit individual requirements is what will

Different companies may however choose different channels and different

Promotion and Advertising:

Premium payment flexibility: Insurers have imparted certain flexibility to premium

The SWOT analysis of Insurance sector is as follows:-

Aviva Life Insurance India is a private insurance company formed from a

Aviva is also accredited to the introduction of Bancassurance in India. Aviva has

Programme highlights of today

The products of Aviva insurance group of India are:

LifeSaver or EasyLife Plus

LifeBond and LifeBond Plus

The fund management operations of Aviva Life Insurance India is controlled

These funds provide investment security to the capital of the customers.

o Aviva Little Master

o Freedom LifePlan (fixed term protection plan)

Some special services by Aviva that deserve mention are:

INSURANCE PLANS AVAILABLE

Aviva Life Insurance Company Limited is a group company of Aviva Capital

Why do I need Protection Plans?

Type of Protection Plans

Aviva Term Plan

Get higher insurance protection at economical rates

Optional Accidental and Disablement Rider to enhance protection

Discount on premium rates for women

Get higher insurance protection at economical rates

Basic premiums paid will be refunded at maturity

Choose to pay Regular or Single Premium

Discount on premium rates for women

On maturity receive Sum Assured plus bonuses

Wealth creation through bonus additions

Choose to avail of Policy Loan after three years

Why do I need Savings & Investment Plans?

2 Saving &Investment Plans

Key Features Aviva Super Automatic Invest Plan

Key Features Aviva Super Market Return Plan:

Capital Guarantee: The sum of all premiums paid is guaranteed on maturity or on

Capital Guarantee is available on both the basic premiums as well as on top-up

Unique Return Shield feature to protect your returns

Choice to invest from 3 pre-packaged investment fund options

Liquidity in the form of partial withdrawals from top-up fund

Why do I need Retirement Plans?