Princess Micro Insurance

Micro Insurance 2016
CHAPTER 1
INTRODUCTION TO INSURANCE
Insurance is nothing but a system of spreading the risk of one onto the shoulders of
many. While it becomes somewhat impossible for a man to bear by himself 100% loss
to his own property or interest arising out of an unforeseen contingency, insurance is a
method or process which distributes the burden of the loss on a number of persons
within the group formed for this particular purpose. Basic Human trait is to be averse to
the idea of risk taking. Insurance whether life or non-life, provides people with a
reasonable degree of security and assurance that they will be protected in the event of a
calamity or failure of any sort. Insurance may be described as a social device to reduce
or eliminate risk of loss to life and property. Under the plan of insurance, a large
number of people associate themselves by sharing risks attached to individuals. The
risks, which can be insured against, include fire, the perils of sea, death and accidents
and burglary. Any risk contingent upon these, may be insured against at a premium
commensurate with the risk involved. Thus collective bearing of risk is insurance
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INSURANCE INDEMNIFIES ASSETS & INCOME

Every Asset has a value and generates Income to its Owner. There is a normally
expected Life-time for the Asset during which time it is expected to perform. If the
Asset gets lost earlier, being destroyed or made Non-functional through an Accident or
other unfortunate event the Owner is Prejudiced. Insurance helps to reduce
CONSEQUENCES of such Adverse Circumstances which are called Risks.
INSURANCE IS THE SCIENCE OF SPREADING OF THE RISK

It is the system of spreading the losses of an Individual over a group of Individuals
INSURANCE IS A METHOD OF SHARING OF FINANCIAL

LOSSES
Of a few from a common fund formed out of Contribution of the many who are equally
exposed to the same loss. What is uncertainty for an Individual becomes a certainty for
a Group. This is the basis of All Insurance Operations. Thus insurance convert
uncertainties to certainty
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OBJECTIVE OF STUDY
To find the awareness of micro insurance among the poorest group of people in
Mumbai.
To find the client need of Micro insurance in Mumbai.
To find the preference of various products in Micro insurance of clients.
To explain the various difficulties of insurers to produce, market and distribute

different micro insurance products.
To explore the MICRO INSURANCE services in SBI BANK.
To find out the satisfaction level of the MICRO INSURANCE clients/ customers.
To make suggestions, if any, based on the study.
To recognize the lacunae in the system and thus make suggestion for better
performance and success.
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SCOPE OF THE STUDY
The study would try to throw some insights into the existing services provided by
the bank.
The study will help to find the gap between the bank and their customers.
To investigate micro insurance and to address possible combinations of loans,

savings and insurance schemes for low-income people to provide them with
appropriate solutions for at least a partial risk reduction.
To provides an overview on the status and strategies of implementation in various

risk sectors (life, health and natural disaster risks), highlighting existing methods,
best practices and specific case studies of micro insurance programs and
initiatives.
It will also bring to light the perception of the customers of the bank regarding the
awareness and the demand of various services presently offered by the bank to
the MICRO INSURANCE customers.
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LIMITATIONS OF THE STUDY
In spite of the best efforts to minimize all limitations that might creep in course of
the research, there were certain constraints within which the research was
completed. These are discussed below-
The study is geographically limited to Mumbai city.
The survey was conducted on small number of people ( 10 random

customers)
For primary data, non response error cannot be ruled out.
The findings cannot be treated as representative of the entire banking

industry of SBI BANK.
The respondent may give biased answers for the required data.
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RESEARCH METHODOLOGY
A structure questionnaire was prepared. The questionnaire contains 20 questions which

reflect on the type and quality of service that are provided by the SBI BANK to its
MICRO INSURANCE customers. Accordingly the research was conducted among 10
respondents selected on random basis from the selected areas. The questionnaire was
administered to them who filled in the information. The respondents were briefly
interviewed. The filled up information was later analyzed to obtain the required
interpretation and the findings.
The data collected was suitable for graphical representation and on the basis of this
observations were made and finally reduced to findings.
The collected data can be divided in two categories. They are as follows:
1) Primary Data
2) Secondary Data
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 PRIMARY DATA:
The primary data was collected by means of a survey. Primary data was collected from
customers who have purchased MICRO INSURANCE products of the SBI BANK by
interviewing through the questionnaire directly.
 SECONDARY DATA:
In order to have a proper understanding of the services to its MICRO INSURANCE

customers of bank in depth study was done from the various sources such as books, a lot
of data is also collected from the official websites of the bank and the articles from the
various search engines like Google, yahoo search. This helped to get study material
easily.
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RESEARCH SAMPLE
SAMPLING PLAN:
Since the study is related and independent on the primary data source an effective plan
of sampling is designed for the purpose of the study.
 Sampling units: Customers of SBI Bank.

 Sample technique: Random sampling.
 Research instrument: structured questionnaire.
 Contact method: personal interaction.
SAMPLING SIZE:
The survey was conducted in the city of Mumbai with only one branch (ANTOP HILL
BRANCH) of SBI Bank, with 10 customers as respondent.
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CHAPTER 2
REVIEW OF LITERATURE
MICRO INSURANCE- AN OVERVIEW
What happens when a poor family’s breadwinner dies, when a child in a disadvantaged
household is hospitalized, or the home of a vulnerable family is destroyed by fire or
natural disaster? Every serious illness, every accident and every natural disaster
threatens the very existence of poor people and usually leads to deeper poverty. That’s
where “micro insurance” comes in. Micro insurance - the protection of low-income
people against specific perils in exchange for regular monetary payments (premiums)
proportionate to the likelihood and cost of the risk involved – seeks to provide a suitable
solution for managing these risks.
Micro insurance is the protection of low-income people against specific perils in

exchange for regular premium payment proportionate to the likelihood and cost of the
risks involved. In other words, it is a set of market based insurance products and
processes designed to address both life and non-life risks faced by the people at the
bottom of the socioeconomic pyramid. These products are priced at rates affordable for
the intended clients, while being financially viable for sustainability of operations. It is
well established in developed countries, but is in a state of infancy in most developing
countries, including India.
The issues pertinent to the growth of the micro insurance industry in India are present
on both sides of the market i.e. supply and demand. On the demand side, the people are
not getting the products that are as per their needs at affordable rates. On the other hand,
the insurers are not able to develop a commercially viable products which meets the
demands of the people. Other than that, the huge area of the country creates difficulty in
distribution of the products and underutilization of the available distribution channels
adds to their woes.
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A well-developed insurance sector has both micro implications for households and
macro implications for the economy as a whole. At the household level, insurance
serves as a tool for addressing ex-ante or future risks as opposed to coping with a
disaster after an unfortunate event has occurred. At the macro level, insurance provides
long term funds that can be used for infrastructure development.
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HISTORY OF MICRO INSURANCE
In India, a few micro-insurance schemes were initiated, either by non-governmental

organizations (NGO) due to the felt need in the communities in which these
organizations were involved or by the trust hospitals. These schemes have now gathered
momentum partly due to the development of micro-finance activity, and partly due to
the regulation that makes it mandatory for all formal insurance companies to extend
their activities to rural and well-identified social sector in the country (IRDA 2000). As
a result, Micro-finance institutions (MFIs) and NGOs are negotiating with the for-profit
insurers for the purchase of customized group or standardized individual insurance
schemes for the low-income people. Although the reach of such schemes is still very
limited, their potential is viewed to be considerable. The micro insurance regulation of
2005 was a pioneering approach by the Insurance Regulatory Development Authority
(IRDA). India is among the few countries to draft and implement specific micro
insurance regulations. In 2002 IRDA developed rural and social sector obligation norms
that mandated every insurance company to achieve:
Percentage of polices to be sold in rural areas; and

Number of lives to be covered in the social sector.
A consultative group on Micro insurance was set up in 2003 to look into the issues
which highlighted the:
Non-viability of standalone micro insurance programmes.

Apathy of insurance companies towards micro insurance
The potential of alternative channels.
In 2004, RRBs were allowed to sell insurance as “corporate agent”, and in 2005, IRDA
came up with the micro insurance regulation which suggested;
Stipulation of product boundaries in terms of minimum and maximum sum

assured, the term of product, the allowable age group and the maximum
commission to agents
SHGs, MFIs and NGOs were allowed to become micro insurance Agents
(MIA), a status that has simple agency clearance process and sustainable
long term earning potential.
Fulfillment of both rural and social sector obligations through micro
insurance products.
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TYPES OF MICRO INSURANCE
Life Insurance- Life insurance pays benefits to designated beneficiaries

upon the death of the insured. There are three broad types of life insurance
coverage: term, whole-life, and endowment. Term life insurance policies
provide a set amount of insurance coverage over a specified period of time,
such as one, five, ten, or twenty years. Whole life insurance is a cash-value
policy that provides lifetime protection. This is hardly offered in low-
income markets in the developing countries. Endowment life insurance
pays the face value of insurance if the policyholder dies within a specified
period.
Health Insurance- Health insurance provides coverage against illness

and accidents resulting in physical injuries. MFIs have realized that
expenditures related to health problems have been a significant cause of
defaults and people's inability to continue improving their economic
conditions. Several MFIs have therefore, either started their own health
insurance programs or have linked their clients to existing programs.
Property Insurance- Property insurance provides coverage against loss

or damage of assets. Providing such insurance is difficult because of the
need to verify the extent of damage and determine whether loss has
actually occurred.
Disability Insurance- Disability insurance in most cases is tied to life

insurance products. It provides protection to the policy holder and her
family, should she or some of her family suffers from a disability.  Crop
Insurance- Crop insurance typically provides policy holders protection in
the event their crops are destroyed by natural calamities such as floods or
droughts. To improve the ability of rural farmers to repay loans from
agricultural development banks (ADBs), many governments developed
crop insurance programs in the 1970s and 1980s.
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Disaster Insurance- Disaster insurance is through a reinsurance

arrangement that broadens the risk pool across countries and regions, and
protects insurers against catastrophic losses.
Unemployment Insurance- This insurance provides cash relief to

individuals who become unemployed involuntarily and who meet certain
government requirements. It also helps unemployed workers find jobs.
Reinsurance- Reinsurance is the shifting of part or all of the insurance

originally written by one insurer to another. This is a central feature of the
operations of all commercial insurers.
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IMPORTANCE OF MICRO INSURANCE
Micro insurance is the protection of low-income people against specific perils in

exchange for regular premium payment proportionate to the likelihood and cost of the
risks involved. In other words, it is a set of market based insurance products and
processes designed to address both life and non-life risks faced by the people at the
bottom of the socioeconomic pyramid. These products are priced at rates affordable for
the intended clients, while being financially viable for sustainability of operations.
Micro insurance, like regular insurance, may be offered for a wide variety of risks.
These include both health risks (illness, injury, or death) and property risks (damage or
loss). A wide variety of micro insurance products exist to address these risks,
including crop insurance, livestock/cattle insurance, insurance for theft or fire, health
insurance, term life insurance, death insurance, disability insurance, insurance for
natural disasters, etc.
Micro insurance is recognized as a useful tool in economic development. As many

low-income people do not have access to adequate risk-management tools, they are
vulnerable to fall back into poverty in times of hardship. Furthermore, micro insurance
makes it possible for people to take more risks. When farmers are insured against a bad
harvest (resulting from drought), they are in a better position to grow crops which give
high yields in good years, and bad yields in year of drought. Without the insurance
however, they will be inclined to be more conservative and do the opposite; since they
have to safeguard a minimal level of income for themselves and their families, crops
will be grown which are more drought resistant, but which have a much lower yield in
good weather conditions.
The ultimate goal of micro insurance is to enable the poor to mitigate their material
risks through the insurance market in order to reduce vulnerability, thereby increasing
their welfare. It can mitigate the most material risks of a poor client in a way that is
affordable and appropriate to the low-income market. It may also stimulate the
provision of other services that are important to the poor, e.g. credit services or health
services, as there will be more predictable income flows to providers, which in turn
ensures viability of the provision of such services to the low income market.
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MICROINSURANCE GROWTH BARRIERS
Even though IRDA has started focusing on the micro insurance sector in the country,
there are still some issues that are preventing the growth of the micro insurance sector in
the country according to its potential.
Demand and Supply: At present, the available products in the country are
more supply driven due to the quota system imposed on insurers under rural and
social sector obligations. Demand and supply issues tend to be intertwined i.e.,
demand is influenced by the suitability of what is supplied and how it compares
with existing mechanisms and supply is influenced by perceptions of willingness
and ability to pay. Inadequate knowledge, affordability, supply of unsuitable
products and lack of trust are some relevant factors inhibiting demand.
Product Design: Currently there are two issues relating to product design in
India. Firstly, the standard products that are designed do not meet the needs of
rural population and need to be suitably modified for same. Secondly, the
available products are relatively expensive and hence are not affordable to the
rural public in the country.
Pricing: Pricing of insurance products for low income population is a critical

issue as making low premium model commercially viable is a tough task and
premiums alone may not be adequate to provide full risk cover for the costs. So
the start up costs need to be funded using some other alternative sources of
funding to make the products affordable for the rural population and
consolidating the product in the market with growing demand.
Distribution: In a huge country like India, covering the dispersed rural

population is a serious challenge. Using intermediaries like NGO, SHG or MFI
might help reach the target population, but the financial viability depends on
alternate sources of funding at the initial stage when market penetration and
development of distribution channels is in infant state.
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RISK FACED BY THE RURAL POOR IN INDIA
The people in the rural India are always facing various kinds of risks in their day to day
life and their limited capacity to face the difficulties prevents them from improving their
standard of living. Following are some of the risks
Crop Losses: Agriculture is subject to many uncertainties like droughts, floods,

pest attacks, untimely rains and price fluctuations. Some agricultural risks among
these can be controlled through better management practices, whereas others need
to be tackled through the financial services (including insurance). There are
various issues which have deterred insurance companies from providing a full-
fledged crop insurance to farmers like lack of historical data on prices, costs,
benefits and losses which creates a troublesome process for pricing the products;
lack of experts to assess, measure and estimate value of loss and compensation.
Livestock Losses: Livestock in rural households not only creates additional

income, employment and food security, but also serves as a store-house of capital
and insurance in times of difficulties. Livestock related risks faced by rural poor
includes death of cattle, sheep or goats, stoppage of milk yield, theft of animal,
non-availability of fodder for the animal and outbreak of livestock diseases.
Livestock insurance is an important means of protecting income generating and
supplementing assets. The insurers face many challenges in administering such
insurance, the most common being identification of the insured animal.
Premature Death: Premature death is a major risk faced by the rural poor in
India. Untimely death of a working and earning family member leads to severely
reduced income which leads to many financial and social challenges arising for
the family.
Accidents and Ill Health: For those with limited or no productive assets,
labour is the primary income source. For such persons illness or even a small
accident can create a threat to their income earning capacity. These contribute to
loss of work days and hence wages, which disrupts the whole financial stability
of the family.
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Loss of Assets: The various assets owned by rural poor includes huts, tools,
livestock, carts, pottery wheels, spinning wheels, weaving frames, etc. These are
low priced assets, hence repair or replacement charges are not so high. But any
incident such as fire, theft and breakdown interrupts household income
generation, which is a cause of concern.
Natural Disasters: The Indian subcontinent is highly prone to natural disasters

including floods, droughts, cyclones and earthquakes. These incidents cause
severe destruction to the lives of the rural poor in many ways by destroying their
assets and disrupting their income generation leading to hardships.
Market Risks: As the Indian economy is growing and becoming increasingly

open day by day, rural population faces far more market risks such as price
fluctuations. These have to be specially taken care of in cases when the crops are
based on agricultural credit as the effects of price fall on sellers can be
devastating to the tune of committing suicide, as has been in case of many
farmers in the country.
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MICROINSURANCE PLAYERS AND PRODUCTS IN INDIA
There are 23 life insurance companies are present in India but only 14 companies are
providing micro insurance products this clearly give an idea of low attraction of
majority of companies towards these products. Below is the list of micro insurance
products along with the name of companies: TABLE: INSURANCE
COMPANY ALONG WITH THEIR PRODUCT
Serial Name of insurer Name of the product

number
1 Aviva life ins. Co. Grameen Suraksha

India Pvt. Ltd.
2 Bajaj Allianz Life Bajaj Allianz Jana Vikas

Insurance Co. Ltd Yojana. Bajaj Allianz Saral
Suraksha Yojana. Bajaj Allianz
Alp Nivesh Yojana.
3 Birla Sun life ins. Co. Birla Sun Life Insurance Bima
LTD Suraksha Super. Birla Sun Life
Insurance Bima Dhan Sanchay.
4 DLF Pramerica Life DLF Pramerica Sarv-Suraksha.

Insurance Co. Ltd
5 ICICI Prudential Life ICICI Prud. Sarv Jana

Insurance Co. Ltd Suraksha
6 IDBI Fortis Life IDBI Fortis Group Micro

Insurance Co. Ltd. insurance Plan
7 ING Vysya Life ING Vysya Saral Suraksha

Insurance Co. Ltd.
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8 Life Insurance LIC's Jeevan Madhur. LIC's

Corporation of India Jeevan Mangal
9 Met Life India Met Vishwas
10 Sahara India Life Sahara Sahayog (Micro

Insurance Co. Ltd. Endowment Insurance
without profit plan).
11 SBI Life Insurance Co. SBI Life Grameen Shakti.

Ltd. SBI Life Grameen Super
Suraksha.
12 Shriram Life Insurance Shri Sahay. Sri Sahay (AP).

Co. Ltd
13 Star Union Dai-ichi Life SUD Life Paraspar

Insurance Co. Ltd. Suraksha Plan.
14 TATA AIG Life Ayushman Yojana.

Insurance Co. Ltd. Navkalyan Yojana.
Sampoorn Bima Yojana.
Tata AIG Sumangal Bima
Yojana.
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MICRO INSURANCE DELIVERY MODELS
One of the greatest challenges for micro-insurance is the actual delivery to clients.
Methods and models for doing so vary depending on the organization, institution, and
provider involved. In general, there are four main methods for offering micro-insurance
the partner-agent model, the 26 provider-driven model, the full-service model, and the
community-based model. Each of these models has their own advantages and
disadvantages.
Partner agent model: A partnership is formed between the micro-

insurance scheme and an agent (insurance company, microfinance
institution, donor, etc.), and in some cases a third-party healthcare
provider. The micro-insurance scheme is responsible for the delivery and
marketing of products to the clients, while the agent retains all
responsibility for design and development. In this model, micro-insurance
schemes benefit from limited risk, but are also disadvantaged in their
limited control.
Full service model: The micro-insurance scheme is in charge of

everything; both the design and delivery of products to the clients, working
with external healthcare providers to provide the services. This model has
the advantage of offering micro-insurance schemes full control, yet the
disadvantage of higher risks.
Provider-driven model: The healthcare provider is the micro-

insurance scheme, and similar to the full-service model, is responsible for
all operations, delivery, design, and service. There is an advantage once
more in the amount of control retained, yet disadvantage in the limitations
on products and services
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Community-based/mutual model: The policyholders or clients are

in charge, managing and owning the operations, and working with external
healthcare providers to offer services. This model is advantageous for its
ability to design and market products more easily and effectively, yet is
disadvantaged by its small size and scope of operation
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INTERMEDIARIES
Micro- insurance business is done through the following intermediaries:
Non-Government Organisations
Self-Help Groups
Micro-Finance Institutions
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IRDA - WIDEN MICRO-INSURANCE PRODUCTS AND ITS

DISTRIBUTION NETWORK
In a bid to boost the micro-insurance sector, Insurance Regulatory and Development

Authority (IRDA) have proposed to widen the product portfolio and distribution
network of micro-insurance. To widen the distribution network of micro-insurance,
IRDA has proposed to allow cooperative banks, regional rural banks, primary
agricultural co-operative societies and individuals such as shopkeepers, medical store
owners, petrol pump owners and public telephone operators to act as micro-insurance
agents. IRDA has noted that most of the products offered under this segment are basic
ones, and mostly term assurance. Hence, IRDA has asked insurers to consider
diversifying the micro-insurance portfolio by including saving-linked and health cover
features.
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IRDA also said that non-life retail segment of the micro-insurance business might not
be attractive line of business at present, since it mainly covers individual risks such as
dwelling, livestock, and tools which are yet to be considered insurable by these
segments. To cater to this segment IRDA has proposed an option of appointing micro-
insurance agents either to any one sector of micro enterprises, small enterprises and
medium enterprises, or to all three or any combination of two. Similarly non-life
insurers will also be allowed to appoint micro insurance agents in these combinations
either in the manufacturing sector or the service sector or in both. The maximum
premium under non-life micro-insurance policies is proposed to be pegged at Rs 25,000.
To encourage micro-insurance agents to maintain reasonable persistency, IRDA has
proposed to link the agent’s persistency rate to remuneration allowed. IRDA has
proposed renewal commission of 20% to those agents maintaining persistency rate of
50% at the end of preceding last two financial years. And other will get only 10%
renewal commission.
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TRADITIONAL INSURANCE VS MICRO INSURANCE

Traditional insurance Micro insurance
 Clients  Low risk environment  High risk
 Established insurance exposure/high
culture vulnerability
 Weak insurance
culture
 Distribution  Sold by licensed  Sold to nontraditional
models intermediaries or by intermediaries to
insurance companies clients with little
directly to wealthy clients experience of
or companies that insurance
understand insurance
 Policies  Complex policy  Simple language
documents with many  Few , if any
exclusions exclusions
 Group policies
 Premium  Good statistical data  Little historical data
calculation  Pricing based on  Group pricing
individual risk  Very price sensitive
market
 Premium  Monthly/quarterly/semi or  Frequent or irregular
collection annually collection payment adapted to
volatile cash flow of
clients
 Often linked with
other transaction (e.g.
loan repayment)
 Control of  Limited eligibility  Broad eligibility
insurance  Significant documentation  Limited but effective
risk(adverse required control
selection,  Screening such as medical  Insurance risk
moral hazards, test is required included in premium
frauds) rather than exclusion
 Linked to other
service ( like credit)
 Claims  Complicated process  Simple and fast
handling  Extensive verification procedure of small
documentation firms
 Efficient fraud
control
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CHAPTER 3
BANK’S PROFILE
STATE BANK OF INDIA
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British
India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840)
and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks
remained at the apex of modern banking in India till their amalgamation as the Imperial
Bank of India on 27 January 1921
State Bank of India is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters
in Mumbai, Maharashtra. As of 2014-15, it has assets of INR 20,48,080 crore and
16,333 branches, including 191 foreign offices spread across 36 countries, making it the
largest banking and financial services company in India by assets.[5][6][7]
State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Bank
of Baroda and Punjab National Bank.[8]
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks"
in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of
India, which in turn became the State Bank of India.[9] Government of India owned the
Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank)
taking a 60% stake, and renamed it the State Bank of India. In 2008, the government
took over the stake held by the Reserve Bank of India.State Bank of India is a regional
banking behemoth and has 20% market share in deposits and loans among Indian
commercial banks
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LOGO AND SLOGAN
The logo of the State Bank of India is a blue circle with a small cut in the bottom
that depicts perfection and the small man the common man - being the center of
the bank's business. The logo came from National Institute of Design(NID),
Ahmedabad and it was inspired by Kankaria lake,
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SBI LIFE INSURANCE COMPANY LIMITED
SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the
largest state-owned banking and financial services company in India, and BNP Paribas Cardiff. SBI
owns 74% of the total capital and BNP Paribas Cardiff the remaining 26% of the capital. SBI Life
Insurance has an authorized capital of ₹20 billion (US$300 million)and a paid up capital of₹10
billion (US$150 million).
In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the company a
AAA/Stable/P1+ rating.
When the government of India opened the life insurance sector to private companies, SBI started SBI
Life as a joint venture with BNP Paribas in 2001. While in its initial stage its business was mainly
from banc assurance channel, now it is developing its own agency team for selling its life insurance
products.
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SERVICES AND PRODUCT OFFERED BY THE BANK FOR ITS

MICRO INSURANCE CLIENTS/CUSTOMERS
SBI Life Insurance has entered into micro insurance by launching two new products --
Grameen Super Suraksha and Grameen Shakti -- for the economically
underprivileged of rural India.
SBI Life Insurance, which has the highest financial strength rating of 'AAA' from
CRISIL for its superior financial security, has announced its entry into micro insurance
with the launch of two new products 'Grameen Super Suraksha' and 'Grameen Shakti' as
part of its vision to protect the lives of a cross section of the socio economic segment of
India's rural and urban population.
SBI Life Insurance's both products have been designed to meet the requirements of the
weaker sections of the rural population. SBI Life's micro insurance product is aimed at
providing life cover and reducing the vulnerability of the low-income socio economic
strata of rural India with affordable life insurance products.
SBI Life managing director and CEO U S Roy said ''Insurance had been largely
concentrated to urban India but recently insurance has moved to rural India.'' Sudden
death in the family, under poverty conditions, jeopardizes the future of the entire family.
The micro insurance policies offered by SBI Life will help minimize the level of such
insecurity, he added.
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SBI LIFE-GRAMEEN SHAKTI
Introduction:
The purpose of this product is to provide life insurance protection to the weaker sections
of the society, like people who are funded by Micro Financial Institutions or NGO’s or
avail loan from Bank/ Financial Institutions through SHG.
This product has been specially designed taking into consideration the insurance needs
of such sections of the society.
Key Highlights:
Flexibility of cover amount: You can choose the Sum Assured you want to offer
to your members.
Refund of premium at maturity.
Age at entry* Minimum 18 years

Maximum 50 years
Policy Term 5 years
Sum Assured^ Minimum Rs. 10,000
Maximum Rs. 50,000
(in multiples of Rs. 5,000)
Premium Amount** Minimum Rs. 85/- per month
Maximum Rs. 925/- per month
Premium Frequency Annual
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*
All references to age are age as on last birthday
**
Premium amounts are exclusive of applicable taxes. Taxes include Service Tax/
Cess/GST (currently only in case of J&K residents) and/or any other statutory
levy/duty/surcharge on your premiums, as notified by the Central and/or State
Government will be applicable from time to time as per the provisions of the
prevalent tax laws.
^Aggregate Sum Assured for all SBI Life Group Micro Insurance products will
be capped at Rs. 50,000 per life
Benefits available:
Death benefits:
In the event of death of the life assured during the policy term, Sum
Assured as chosen will be payable
Maturity benefit:
On life assureds’ survival till the end of the policy term, 50% of the
premiums paid (excluding applicable taxes) will be refunded.
Other information:
Surrender
Surrender benefit will be paid on the request of either the master policy
holder (if the premium has been paid by the master policy holder) or the
individual insured member. The surrender value will be payable if at least
2 years’ premiums have been paid.
Grace period:
A grace period of 30 days from the premium due date will be allowed.
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Paid up value:
In case the insured member is unable to pay the premium within grace
period, he/she will still remain covered but for a reduced death/maturity
benefit. The insurance cover will acquire paid up value only if the first two
years’ premiums have fully been paid.
Revival:
The member or the master policy holder has the option to revive member’s
life cover within a period of 2 years from the first unpaid premium due
date.
Free look period:

The master policy holder or the insured group member (in case of
voluntary scheme) has 15 days to review the terms and conditions of the
insurance contract. In case the group member or the master policy holder is
not satisfied with the terms and conditions of the contract, he/she may
return the certificate of insurance/ policy document with 15 days from the
date of receipt of the same.
Loan facility:
No loan facility is available under this plan.
Exclusions:
 Suicide:
If the insured group member commits suicide, whether sane or insane,
within one year from the date of commencement of risk or revival of cover,
insurance benefits for the group member shall not be payable. In such an
event, higher of 80% of premiums paid under the policy for the member,
till the date of death, or surrender value shall be refunded.
 Waiting period:
In the event of death of the insured member within 45 days from the date
of commencement of risk or date of revival, due to any cause other than
accident, no insurance benefit will be payable.
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PREMIUM RATES: SBI LIFE- GRAMEEN SHAKTI (UIN:

111N038V02)
Age band-wise premium table is appended as below:
Age last birthday Premium rates

18-30 8.50
31-40 10.50
41-45 13.50
46-50 18.50
 Premium rates mentioned above are in Indian Rupees and are

applicable per Rs. 1000 Sum Assured.
 The actual premiums charged will be mentioned to the nearest rupee.
 Rates mentioned above exclude Service Tax and cess.
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SBI LIFE- GRAMEEN SUPER SURAKHSA
Introduction:
The purpose of this product is to provide insurance cover at affordable cost to

economically weaker sections of society, such as group of individuals funded by Micro
Finance Institutions or NGOs or individuals availing credit facilities from Bank/
Financial Institutions.
SBI Life - Grameen Super Suraksha is a group term assurance plan for rural people as
well as for the economically vulnerable sections of the society who seek life insurance
protection without maturity benefit.
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Key features:
Option to choose cover amount: You can choose the Sum Assured you want to offer to
your members.
Life cover at affordable cost.
Eligibility & features:
Age at entry* Minimum 18 years

Maximum 50 years
Policy Term 5 years
Sum Assured^ Minimum Rs. 5,000
Maximum Rs. 50,000
Premium Frequency Single or annual
Premium Mode Minimum Maximum

Premium Premium Premium
Amount**
Single pay Rs. 102.50/- Rs. 2,500/-
Regular pay Rs. 22.50/- Rs. 575/-
*All reference to are age as on last birthday
**Premium amounts are exclusive to applicable taxes.
^Aggregate Sum Assured for SBI Life Group Micro Insurance products will be capped
at Rs. 50,000 per life.
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Benefits:
Death benefits:
In the event of death of the life assured during the policy term, Sum Assured as chosen
will be payable.
Maturity benefits:
Since this is pure term assurance product, no maturity benefit is payable under this plan.
Other information:
Surrender:
Surrender benefit will be paid on the request of either the master policy holder or the
individual insured member. The surrender value will be payable in case of a single pay
policy only.
Grace period: For regular pay policies, a grace period of 30 days from the
premium due date will be allowed.
Revival:
In case of a regular pay policy, the member has the option to revive life cover within a
period of 2 years from the first unpaid premium due date.
Free look period:

The master policy holder or the insured group member (in case of voluntary scheme)
has 15 days to review the terms and conditions of the insurance contract. In case the
group member or the master policy holder is not satisfied with the terms and conditions
of the contract, he/she may return the certificate of insurance/policy document with 15
days from the date of receipt of the document.
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Loan facility:
No loan facility is available under this plan.
Exclusions:
Suicide:
If the insured group commits suicide, whether sane or insane, within one year from the
date of commencement of risk or date of revival, due to any cause other than accident,
no insurance benefit will be payable. In such events, 80% of he premiums paid till the
date of death in respect of the deceased member shall be refunded.
Waiting period:
In the event of death of the insured member within 45 days from the date of
commencement of risk or date of revival, due to any cause other than accident, no
insurance benefit will be payable. In such an event, 80% of premiums paid till the date
of death in respect of the deceased member shall be refunded.
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PREMIUM RATES: SBI LIFE - GRAMEEN SUPER SURAKSHA

(UIN: 111N039V02)
Age band-wise premium table is appended as below:
Age Last Birthday Annual Premium Rate Single Premium Rate

18 – 30 4.50 20.50
31 – 40 6.00 26.50
41 – 45 8.00 34.50
46 – 50 11.50 50.00
Premium Rates mentioned above are in Indian Rupees and are applicable per Rs.
1,000 Sum Assured.
The actual premiums charged will be rounded to the nearest rupee.
Rates mentioned above exclude Service Tax and cess
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SBI GENERAL INSURANCE COMPANY LIMITED
SBI General Insurance Company Limited is a joint venture between the State Bank of
India and Insurance Australia Group (IAG). SBI owns 74% of the total capital and IAG
the remaining 26%.
SBI General closed the financial year 2014-15 (5th year of operation) with a Gross
Written Premium of Rs.1606 crores (including RI accepted and decline pool of Rs. 30
crores) and Gross Direct Premium of Rs. 1577 crores, registering a growth of 33%. As
of end of March 2015, the Company’s geographical coverage extends to 77 cities pan
India with 2246 employees.
SBI General has established its presence in 17,274 branches of State Bank of India and
also licensed 10 Regional Rural Banks in FY 2014-15. The Company follows a robust
multi-distribution model encompassing Banc assurance, Agency, Broking & Retail
Direct Channels. Today, SBI General’s Distribution family includes over 14,178 IRDA
certified SBI & its Associate Bank employees and over 6323 Agents.
The current policy offering of SBI General covers Motor, Health, Personal Accident,
Travel & Home Insurance for Individuals and Fire, Marine, Package, Construction &
Engineering, Liability, Group Health, Group Personal Accident & Miscellaneous
Insurance for Businesses.
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JOINT VENTURE
State Bank of India enjoys the largest banking franchise in India. State Bank of India is
country's largest & a premier commercial Bank in terms of balance sheet, profits, assets,
deposits, branches and employees. Along with its 5 Associate Banks, SBI Group has the
unrivalled strength of over 19,600 branches across the country, arguably one of the
largest
in the world. State Bank of India is today going through a momentous phase of Change
and Transformation. The Bank has ventured into many new businesses with strategic tie
ups in Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile
Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products
etc each one of these initiatives having a huge potential for growth.
The Bank is surging ahead with cutting edge technology and innovative new banking
models, to expand its reach. With 22,983 ATMs of its own & 28,198 ATMs including
its associate banks (as of 31st December 2012) complementing its 19,698 branch
network, State Bank of India today offers one of the largest banking network to the
Indian customer.
Vision
Be the most trusted general insurer in India with fair and transparent business practices,
leading the Nation's effort in increasing insurance penetration.
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SBI GENERAL-MICRO INSURANCE POLICY

Subject Matter
 This is a package cover catering to the insuring need of insured in respect of

asset, Personal accident and health.
Who Can take this Policy
 This Policy can be taken by different types of organizations, who render services
to persons falling under the low income segment, such as Banks, Micro Finance
/ Micro Credit institutions, Cooperatives, Non Governmental Organizations
(NGOs) and Self Help Groups (SHGs).
What does the insurance Policy Cover
 Personal Accident (Compulsory)
 Hospital Daily Cash (Optional)
 Asset Insurance (Optional)
 Critical Illness Benefit (Optional)
Sum Insured options are as following
Coverage Sum Insured Limit

Personal Accident
(Compulsory) Rs.10,000 to 50,000/ per person
Critical Illness (Optional) Rs. 10,000 to 30,000/ per person
Rs. 250 per day for 60 days or Rs. 250 per day for 90
Hospital Daily Cash (Optional) days
Asset Insurance (Optional) Maximum Rs. 30,000/
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BANK RATINGS
RATINGS as on 31.03.2015 RATING AGENCY
Baa3/P3/Stable/D* Moody's
BBB-/A3/Stable S&P
BBB-/F3/Stable Fitch
'AAA/Stable' CRISIL
'CARE AAA' CARE
'AAA/Stable' CRISIL
'CARE AAA' CARE
'AAA/Stable' CRISIL
'CARE AAA' CARE
'AAA [Stable]' ICRA
'AAA [Stable]' CRISIL
'CARE AAA' CARE
AAA [Stable] ICRA
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AWARDS AND ACHIEVEMENTS
The State Bank of India has won the prestigious Asian Banker Achievement
Award for being the strongest bank in Asia Pacific region, instituted by the Qatar
Financial Centre Authority and the Asian Banker magazine.
The SBI has also won the Asian Banker transaction banking award: Winner of
achievement award for trade finance in India. In the past two years, SBI became
the largest bank by market capitalisation.
State Bank of India won the prestigious Golden Peacock Award for Sustainability
(GPAS) and Corporate Social Responsibility (CSR) for the first time in the same
financial year( 2015)
State Bank of India is adjudged with the “Hellen Keller Award 2015” presented
by National Centre for Provision of Employment of persons with disabilities
[NCPEDP] and Lemon Tree Hotels for The Category ‘Role Model Company /
NGO / Institution for its commitment towards promoting equal employment
opportunities for people with disabilities’
SBI General Insurance won the “Marketing Initiative of the Year” title at the 5th
edition of the India Insurance Awards 2015
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CHAPTER 4
FINDINGS
ANALYSIS OF THE DATA COLLECTED FROM THE SURVEY

HELD ON THE SBI BANK (ANTOP HILL BRANCH)
The survey included 10 customers of the bank. It included both male and female. The
survey was conducted on few selected number of customers. The customers were from
different age, occupations, religion. The customers included construction workers,
house wife, people working on daily wages. The survey was conducted on weaker/poor
section of the society.
The survey sheet or the questionnaire was held to customers who filled in the
information. The information was regarding their banking activities and general
awareness related to bank which was the main motive behind to conduct the survey.
The questionnaire included 20 questions. The customers were supposed to tick any one
of them in each question as their answer.
Observations or findings were derived after carefully analyzing the questionnaire. This
survey will help us to find the banking habits of the people of this bank.
Followings are the analysis of the data collected from the survey conducted on SBI
bank’s customers.
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1. Sex
The table shows the gender of the customers who were included in the survey.
Female male Total number of customers

3 7 10
DIAGRAMATICAL REPRESENTATION:
GENDER
FEMALE-3
MALE-7
INTERPRETATION:
From the above pie chart it can be seen that there were more number of male customers
who have taken micro insurance policy ( male -7) than female(only 3).
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2. Age
The table shows the age group the respondents belong.
Age No. of respondents

18-27 Nil
28-36 5
37-50 5
Total number of respondents 10
AGE OF RESPONDENTS
18-27-NIL
28-36-5
37-50-5
INTERPRETATION:
From the above pie chart one can see that there were no respondent that belong to the
age group of 18-27 years making it look like unattractive to young section whereas the 5
respondent belong to the age group of 28-36 years also rest 5 respondents were from 37-
50 years age group.
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3. Educational qualification
The table shows the educational qualifications of the respondents.
Educational qualification No. of respondents

Uneducated 4
Primary section 4
Secondary section (i.e. 10th pass) 2
12th pass Nil
Total number of respondent 10
EDUCATIONAL QUALIFICATION
Uneducated-4
till primary section-4
till secondary section(i.e. 10th

pass)-2
12th pass-nil
INTERPRETATION:
From the above pie chart it is concluded that the 4 of the respondent never went school
whereas the 4 other respondent said they have studied till primary section and the rest 2
respondent were the only who have passed 10th standard.
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4. Annual income of the family.
The table below shows the annual income of the family of the respondent.
Income level of respondent’s family No. of respondents

Less than 30,000 4
30,000-60,000 3
60,000-90,000 3
More than 90,000 Nil
ANNUAL INCOME OF THE FAMILY
less than 30,000-4

30,000-60,000-3
60,000-90,000-3
more than 90,000-nil
INTERPRETATION:
From the above pie chart it can be concluded that 4 respondent’s family income was
below or less than Rs. 30,000 whereas other 3 respondent’s family income is between
Rs. 30,000-60,000. There were only rest respondent whose annual income of family
was between Rs. 60,000-90,000.
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5 Number of family member of respondent
The table below shows the number of member are there in the respondents’ family.
Number of family member Number of respondent

2-3 2
4-5 3
6 5
More than 6 Nil
NUMBER OF FAMILY MEMBER
3 or less than 3-2

5 or less than 5-3
6 or not less than 6-5
more than 6-nil
INTERPRETATION;
From the above pie chart it is derived that there were 5 respondents who have 6 member
in their family whereas 3 respondent have only 4-5 members in their family and the rest
2 respondent have 2-3 family members.
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6. Respondent purchased SBI LIFE or SBI GENERAL (MICRO INSURANCE) policy
The table below shows the number of respondent who have purchased the above
mentioned policy.
Name of the policy No. of respondent

SBI LIFE MICRO INSURANCE POLICY
(A) GRAMEEN SHAKTI 8
(B) GRAMEEN SUPER SURAKSHA 2
SBI GENERAL MICRO INSURANCE Nil
POLICY
SBI MICRO INSURANCE POLICY
Sbi life: grameen shakti-8
sbi life: grameen super

suraksha-2
sbi general-nil
INTERPRETATION:
From the above pie charts it can be seen that there were no takers for SBI GENERAL
MICRO INSURANCE policy whereas there were 8 respondent who have taken
GRAMEEN SHAKTI MICRO INSURANCE policy under SBI LIFE MICRO
INSURANCE scheme. The rest 2 respondent also took policy under SBI LIFE i.e SBI
GRAMEEN SUPER SURAKSHA MICRO INSURANCE.
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7. Respondent who understands MICRO INSURANCE POLICY.
The table below shows the number of respondents who actually understands the micro
insurance policy and its features.
Respondents who understands micro No. of respondents
insurance policy
Yes 10
No Nil
RESPONDENT WHO UNDERSTANDS MICRO

INSURANCE POLICY
YES-10
NO-NIL
INTERPRETATION:
From the survey conducted and from the above pie chart it can be understood that all
the respondents understands the micro insurance policy and what are its features and
benefits.
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8. The amount of premium the respondents are paying annually for insurance.
The table shows the amount of premium the respondents are paying annually.
Amount in rupees No. of respondents

Less than 500 4
500-1,000 4
1000-3000 2
3000-5000 Nil
AMOUNT OF PREMIUM THE RESPONDENTS

ARE PAYING
Less than 500-4

500-1,000-4
1,000-3,000-2
3000-5000
INTERPRETATION:
From the above it is interpreted that 4 respondents of SBI LIFE GRAMEEN SHAKTI
are paying less than Rs. 500 as their premium and 4 respondent of the same policy are
paying Rs 500-1000. The respondents who have purchased SBI LIFE GRAMEEN
SUPER SURAKSHA are paying between Rs. 1,000-5,000 annually.
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9. Mode of payment the respondent would prefer to pay their premiums.
The table shows that which all modes a respondent selected to pay their insurance
premium.
Mode of payment No. of respondent

Single 4
Annually 6
MODE OF PAYMENT
SINGLE-4
ANNUALLY-6
INTERPRETATION:
From the above pie chart it is concluded that majority of the respondents (6
respondents) would like to pay their premium annually and not in single and the rest 4
respondent prefer to pay their premium in single.
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10. Respondents satisfied with the current premium rates.
The table shows the satisfaction level of the respondent for their premium rates.
Satisfaction level No. of respondent

Highly satisfied Nil
Satisfied 5
Neutral 2
Not satisfied 3
SATISFACTION LEVEL RELATED TO THE

PREMIUM RATES RESPONDENTS ARE PAYING
highly satisfied-nil
satisfied-5
neutral-2
not satisfied- 3
INTEPRETATION:
From the above pie chart and table we can see that no respondent was highly satisfied
with the current premium rates also 3 respondents were not satisfied with the same. 5
respondents were quite satisfied with the current premium rates and rest 2 respondent
gave neutral reaction.
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11. Respondent on being aware about the premium payment mode.
The table shows how many respondents were aware that they can decide their own
payment modes.
Being aware about the payment mode No. of respondents

Yes 8
No 2
RESPONDENT AWARE ABOUT PAYMENT

MODE
YES-8
NO-2
INTERPRETATION:
It can be clearly seen from the above pie chart that the most of the respondent i.e 8
respondents were aware that they can decide their own premium mode whereas 2 were
not sure.
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12. Respondents faced problem while accessing insurance policy.
The table below shows if any of respondents faced any problem while accessing the
policy.
Problems faced by respondents No. of respondents

Loads of paper work 1
Took a lot of time 4
Communication gap 1
Employee attitude 2
PROBLEMS FACED BY RESPONDENTS
loads of paper work-1

took a lot of time-4
communication gap-3
employee attitude-2
INTERPRETATION:
From the above pie chart it is observed that most of the respondent ( 4 respondents)
think that accessing policy took a lot of time also they had to come by taking leave from
work which they cannot afford. 3 of the respondents said there was communication gap.
2 of the respondent said the employees did not treat them well while applying for
policy. Only one respondent experienced loads of paper work while applying for policy.
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13. Reasons according to respondents that held them back from investing in insurance
policy/products.
The table below shows the number of reasons and the number of respondent felt came
in between that held them back from accessing policy.
Reasons that held back from investing in No. of respondents

policy
Lack of awareness 5
Not affordable 4
Promotional measures not attractive Nil
Not approached by the intermediaries 1
REASONS THAT HELD BACK RESPONDENTS

FROM INVESTING IN POLICY
lack of awareness-5
not affordables-4
promotional measures not

attractive-nil
not approached by the
intermediaries-1
INTERPRETATION:
From the above pie chart it can be observed that majority of the respondent ( 5
respondents) felt due to lack of awareness held them back from investing whereas 4
respondent thought insurance policies are costly hence held them back. Only one
respondent said the intermediaries never approached them.
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14. Respondent’s perception of insurance needs.
The table below shows respondent’s perception regarding insurance need.

Perception of customers regarding No. of respondents
insurance need
Future savings Nil
Life insurance 6
Health insurance 1
Asset insurance 3
Live stock Nil
Outpatient expenses Nil
Crop 10
RESPONDENT'S PERCEPTION REGARDING

NEED OF INSURANCE
future savings-nil
life insurance-3
health insurance-1
asset insurance-3
live stock-nil
outpatient expenses-3
crop-nil
INTERPRETATION:
From the above pie chart, that was made from survey, it is observes that respondents
cared for their and member’s life. Hence 3 respondent think the insurance is most
necessary of life. Health was also a main concern for one respondent as he cannot afford
losing his work because of ill health. Again rest of the 3 respondents showed
importance to health and selected insurance to cover their outpatient expenses so as to
meet unwanted crisis.
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15. Place where respondent would like to pay their premiums.
The table shows the places where a respondent would like to pay premiums.
Places to pay premium according to No. of respondents

respondents
At your door step 5
Banks 3
Post office 2
Others Nil
PLACES TO PAY PREMIUM ACCORDING TO

RESPONDENTS
At your door step-5

banks-3
post office-2
others-nil
INTERPRETATION:
From the above pie chart it is seen that 5 of the respondent would like to pay their
premium at their door step making it convenient for them whereas 3 respondents felt it
is safe to pay via banks and the rest 2 respondents felt post office near them can used to
pay premiums.
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16. More involvement of government for weaker section according to respondents.
The table shows whether the government should take more initiatives for helping the
weaker section of the society.
Involvement of government for weaker No. of respondents

section
Yes 10
No Nil
RESPONDENT'S VIEW WHETHER

GOVERNMENT SHOULD TAKE MORE
INITIATIVES FOR WEAKER SECTION OF
SOCIETY OR NOT
YES-10
NO-NIL
INTERPRETATION:
From the above pie chart it is clearly observed that all respondents think that
government should take more initiatives for the welfare of the weaker section of the
society.
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17. Respondents on being satisfied with the bank that is providing them insurance
cover.
The table shows whether the respondents are satisfied or not.
Customers that are satisfied No. of respondents

Yes 6
No 4
Total number of customers 10
RESPONDENTS ON BEING SATISFIED WITH

THE BANK THAT IS PROVIDING THEM
INSURANCE COVER
YES-6
NO-4
INTERPRETATION:
From the above pie chart it is observed that 6 of the respondent are satisfied with the
bank that is providing them insurance cover whereas rest of the 4 respondent did not felt
the same and said improvements can be done.
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18. Respondent’s view regarding insurance cover helpful to them.
The table shows whether the respondents think the insurance cover is useful to them or
not.
Insurance cover useful for respondents No. of respondents

Yes 8
No 2
RESPONDENT'S VIEW REGARDING

INSURANCE COVER USEFUL TO THEM
YES-8
NO-2
INTERPRETATION:
From the above pie chart it is conclude that the majority of the respondent ( 8
respondents) felt that the insurance policy purchased by them was and is useful to them
whereas the rest 2 respondent felt it was not that useful.
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19. Claims made by the respondents.
The table shows whether the clients or the customers who took insurance cover ever
made any claim.
Customers ever made claim No. of customers

Yes Nil
No 10
Total number of customers 10
RESPONDENTS WHO MADE CLAIM
YES-NIL
NO-10
INTERPRETATION:
From the above pie chart it is clearly observed that no respondents ever made a claim.
This is because they have taken life insurance cover on their own life and they are
paying their premiums on time.
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20. Respondents that would recommend micro insurance policy to their friends,
relatives, etc.
The table shows whether respondents would like to recommend micro insurance policy
to their friends, relatives.
Respondents recommending policy to No. of respondents

others
Ye s 8
No 2
RESPONDENTS RECOMMENDING POLICY TO

FRIENDS, RELATIVES. ETC.
YES-8
NO-2
INTERPRETATION:
From the above it is observed that 8 respondents would like to recommend the micro
insurance policy to their friends and relatives whereas rest 2 respondents do not want to
maybe due to bad experience
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Chapter 5
OBSERVATIONS AND SUGGESTIONS
OBSERVATION AND FINDINGS AFTER BRIEFLY ANALYZING THE

SURVEY
This observation will help us to find out whether the customers are aware and having
benefits provided to them. This will also allow us to know whether the bank is working
with today’s time and its relationship with customers.
Following are the observations and the suggestions which were derived after carefully
studying the data from the survey held on bank
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Insurers have not readily embraced the concept of micro insurance.
The motivation to introduce micro insurance products seems to be decreasing.

This also raises the question as to how the companies are meeting their rural
social targets.
Many insurers find it difficult to fit their products within the parameters set by
the IRDA for a micro insurance product. For example, sum assured of Rs. 30,000
may be perceived by an insurer as inadequate to make health insurance attractive
even to low- income consumers.
The ticket size in micro insurance is very small and therefore the per-policy costs
applicable to mainstream insurance would just not work out. Hence, insurers
need to invent/innovate new ways of reducing the same.
Eligibility for micro insurance agency is now limited to Micro Finance

Institutions (MFIs), Self-Help Groups (SHGs) and Non-Governmental
Organisations (NGOs). Since these entities are not active in vast portions of the
country, there is a need to expand the scope of micro insurance agency to enable
a balanced and faster growth of micro insurance in the country. Sale of across-
the-counter micro insurance products in grocery/street-corner stores can be
considered.
Maximum of respondents were daily earners their income varies from season to
season, in their peak seasons the earns 200-300 per day but in off
season their earning decreases significantly, those respondents who
were salaried people get monthly salary ranging from 3000-5000 per months
Insurers too can benefit by deploying latest technology such as premium

collection on hand-held devices connected to insurers through internet; payments
and service requests over mobile phones; logging-in proposals and uploading
claims and servicing requests on the net; to economize and expand their
operations.
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Looking at the unattended need for insurance among low-income and rural
segments, there is a huge scope for growth of the micro insurance sector. Only a
tiny fraction of these persons have insurance protection of any kind and there is
an urgent need to expand coverage to a vast number of uninsured masses.
Most of the respondents have heard about insurance but they are totally unaware
of Micro insurance, they believe depositing their money in bank or post-office is
more profitable than putting money in insurance, also ease of withdrawing
money from bank and post-office makes their investment more liquid.
Respondents want to invest in insurance policy but lack of knowledge and

awareness about insurance stop them for investing
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CHAPTER 6
CONCLUSION
The study intends to contribute to understanding and the current discussion and debate
on micro insurance in India with focus on its outreach and efficacy and participation of
the target groups. It has achieved its goal to the satisfactory level and come out with
some important findings about micro insurance programme in India at regional or sub
national level. By examining and analyzing the process, products, observations and
other aspects of micro insurance programme in select areas study concludes that in
many contexts the existing micro insurance products are not demand driven in both high
and low outreach areas. There is lack of understanding, awareness, extension services
and development of insurance market that grossly affect wider use of insurance products
and its uptake, particularly, among low-income groups. Our analysis, based on primary
household data and information collected from other stakeholders, has come out with
some important findings from policy point of view. However, these findings need to be
considered with required caution as data used may be constrained by several subjective
and endogenous problems. There are also other limitations of the study such as smaller
sample size and groups of respondents
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In sum, estimating actual market potential of micro insurance sector under the given
condition may be erroneous because of the actual demand is miss-matched with the
needs of the target groups and the supply is grossly influenced by suppliers perceptions
rather willingness and ability to pay by the potential clients. There is an enormous
market potential for customized micro insurance products and a huge space for
innovation. In order to realize macro impacts of micro insurance, wider outreach is
desirable but its effectiveness is equally importance. However, more region and group
specific policy attentions are urged to improve the efficacy of micro insurance sector
without compromising its outreach.
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WEBLIOGRAPHY
www.google.com
www.sbi.co.in
www.oneindia.com
www.wordpress.com
www.thehindubusinessline.com
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SAMPLE QUESTIONNAIRE
Q.1 Sex
Ans. A. Male B. Female
Q.2 Age
Ans.A.18-27 B. 28-36 C. 37-50
Q.3 What Is Your Educational Qualification?
Ans. A. Uneducated B. Primary Section
C. Secondary Section D. 12th Pass
Q.4 What Is The Annual Income Of Family?
Ans. A. Less Than 30,000 B. 30,000-60,000
C. 60,000-90,000 D. More Than 90,000
Q.5 How Many Members Are There In Your Family?
Ans. A. 2-3 B. 4-5
C. 6 D. More Than 6
Q.6 Have You Ever Invested In Insurance Policy?
Ans. A. Yes B. No
Q. 7 Do You Understand Micro Insurance?
Ans. A. Yes B. No
Q.8 How Much Premium You Are Paying Annually For Insurance?
Ans. A. Less than Rs. 500 B. Rs. 500-1000
C. Rs 1000-1500 D. Rs. 1500-2000
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Q.9 Which Mode Of Payment You Prefer To Give Your Premium?
Ans. A Single B. Annually
Q.10 Are You Satisfied With The Current Insured Benefit At The Current Premium?
Ans. A. Highly Satisfied B. Satisfied
C. Neutral D. Not Satisfied
Q.11 Do You Know You Can Decide The Premium Payment Mode You Want?
Ans. A. Yes B. No
Q.12 Did You Faced Any Problem While Accessing To These Insurance Policy?
Ans. A. Loads Of Paper Work B. Took A Lot Of Time
C. Communication Gap D. Employee’s Attitude
Q.13 What Are The Reasons That May Have Held You Back From Investing In
Insurance Policy/Products?
Ans. A Lack Of Awareness B. Not Affordable
C. Promotional Awareness Not Attractive D. Not Approached By The Intermediaries.
Q14. What Is Your Perception Of Insurance Needs?
Ans. A Future Savings B Life
C Health Care D Asset
E Livestock F. Outpatient Expenses
G Crop
Q.15 Where Will You Prefer To Give Your Premium?
Ans. A. At Your Door Step B. Bank
C. Post Office D. Others (Via Mobile Phones)
Q.16 Do You Think Government/Banks Should Take More Initiatives For The Weaker
Sections?
Ans. A. Yes B. No
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Q.17 Are You Satisfied With The Bank That Is Providing You Insurance Cover?
Ans. A. Yes B. No
Q.18 Have You Ever Made A Claim? If Yes, Then Was The Claim Procedure Difficult?
Ans. A. Yes B. No
Q.19 Do You Think Insurance Is/Will Helpful To You/
Ans. A. Yes B. No C. Don’t Know
Q.20 Would You Recommend Micro Insurance Policy To You Friends, Relatives?
Ans. A. Yes B. No
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Princess Micro Insurance

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Princess Micro Insurance

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Micro Insurance 2016

INSURANCE INDEMNIFIES ASSETS & INCOME

INSURANCE IS THE SCIENCE OF SPREADING OF THE RISK

INSURANCE IS A METHOD OF SHARING OF FINANCIAL

To find the client need of Micro insurance in Mumbai.

To find the preference of various products in Micro insurance of clients.

To explain the various difficulties of insurers to produce, market and distribute

To explore the MICRO INSURANCE services in SBI BANK.

To make suggestions, if any, based on the study.

SCOPE OF THE STUDY

To investigate micro insurance and to address possible combinations of loans,

To provides an overview on the status and strategies of implementation in various

LIMITATIONS OF THE STUDY

The study is geographically limited to Mumbai city.

The survey was conducted on small number of people ( 10 random

For primary data, non response error cannot be ruled out.

The findings cannot be treated as representative of the entire banking

A structure questionnaire was prepared. The questionnaire contains 20 questions which

In order to have a proper understanding of the services to its MICRO INSURANCE

 Sampling units: Customers of SBI Bank.

MICRO INSURANCE- AN OVERVIEW

Micro insurance is the protection of low-income people against specific perils in

HISTORY OF MICRO INSURANCE

In India, a few micro-insurance schemes were initiated, either by non-governmental

Percentage of polices to be sold in rural areas; and

Non-viability of standalone micro insurance programmes.

Stipulation of product boundaries in terms of minimum and maximum sum

TYPES OF MICRO INSURANCE

Life Insurance- Life insurance pays benefits to designated beneficiaries

Health Insurance- Health insurance provides coverage against illness

Property Insurance- Property insurance provides coverage against loss

Disability Insurance- Disability insurance in most cases is tied to life

Disaster Insurance- Disaster insurance is through a reinsurance

Unemployment Insurance- This insurance provides cash relief to

Reinsurance- Reinsurance is the shifting of part or all of the insurance

IMPORTANCE OF MICRO INSURANCE

Micro insurance is the protection of low-income people against specific perils in

Micro insurance is recognized as a useful tool in economic development. As many

MICROINSURANCE GROWTH BARRIERS

Pricing: Pricing of insurance products for low income population is a critical

Distribution: In a huge country like India, covering the dispersed rural

RISK FACED BY THE RURAL POOR IN INDIA

Crop Losses: Agriculture is subject to many uncertainties like droughts, floods,

Livestock Losses: Livestock in rural households not only creates additional

Natural Disasters: The Indian subcontinent is highly prone to natural disasters

Market Risks: As the Indian economy is growing and becoming increasingly

MICROINSURANCE PLAYERS AND PRODUCTS IN INDIA

Serial Name of insurer Name of the product

1 Aviva life ins. Co. Grameen Suraksha

2 Bajaj Allianz Life Bajaj Allianz Jana Vikas

4 DLF Pramerica Life DLF Pramerica Sarv-Suraksha.

5 ICICI Prudential Life ICICI Prud. Sarv Jana

6 IDBI Fortis Life IDBI Fortis Group Micro

7 ING Vysya Life ING Vysya Saral Suraksha

8 Life Insurance LIC's Jeevan Madhur. LIC's

9 Met Life India Met Vishwas

10 Sahara India Life Sahara Sahayog (Micro

11 SBI Life Insurance Co. SBI Life Grameen Shakti.

12 Shriram Life Insurance Shri Sahay. Sri Sahay (AP).

13 Star Union Dai-ichi Life SUD Life Paraspar

14 TATA AIG Life Ayushman Yojana.

MICRO INSURANCE DELIVERY MODELS

Partner agent model: A partnership is formed between the micro-

Full service model: The micro-insurance scheme is in charge of