PROJECT REPORT

On

“CUSTOMER-BUYING BEHAVIOR WITH A FOCUS ON MARKET

SEGMENTATION”

PREPARED FOR AND PRESENTED TO

Submitted in partial fulfillment for the requirement of award of degree of Master of

Business Administration

UNDER THE GUIDANCE OF

Mr. Ashish Sharma

Submitted By

Himanchal Upadhyay

2009-2010

AMBALIKA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

LUCKNOW
ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT
The summer project at Aegon Religare has been an enriching the experience the
learning of the project will go a long way enabling me to future endeavors. No project
sees the light of the day without the help of certain individuals. I would like to express
my sincere gratitude to people who were instrumental in making this project possible.

I would like to acknowledge the immense help and assistance of Mr. Ashish Sharma
(Faculty) whose timeless efforts were invaluable in the completion of this project, for
providing professional knowledge and assistance without which this project would not
have been a success.

It was a great learning experience and I would like to appreciate Aegon Religare
Team of Lucknow for their excellent work environment facilities.

Himanchal Upadhyay

MBA 3RD SEM.

TABLE OF CONTENTS
 Table of Contents
1. Section A
Industry And Company Profile
 Need of Insurance………………………………………..
 History of Life Insurance………………………………..
 About IRDA…………………………………………….
 Marketing of Insurance in India ……………………….
 Company Profile……………………………………….
 Organizational structure……………………………….
 Corporate Objective (Mission/Vision)………………..
 Products Range…………………………………………
 Competitor……………………………………………...
 About insurance Company’s and his product………...

2 Section B
Introduction
 Research Methodology………………………………….
 Research Design…………………………………………
 Sampling Methodology………………………………….
 Limitations of Research ………………………………...
 Facts & Findings…………………………………………

3 Section C
Analysis
 Interpretation ( with Graphical Representation )…………
 SWOT Analysis………………………………………………
 Conclusion …………………………………………………
 Recommendation …………………………………………..

Bibliography………………………………………………………….
Appendix (Questionnaire)…………………………………………….
EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY

In today’s 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 AEGON Religare Life Insurance

Company Ltd 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. In this project I have analyse
the consumer behavior in respect of different insurance companies.
SECTION A

Industry And Company Profile

 Need of Insurance
 History of Life Insurance
 About IRDA
 Marketing of Insurance in India
 Company Profile
 Organizational structure
 Corporate Objective (Mission/Vision)
 Products Range
 Competitor
 About insurance Company’s and his product
INTRODUCTION
 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.”

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: Earlier 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.

General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and the

subsequent increase in trade across the oceans in the 17th century. As for Life Insurance,

the British brought General Insurance to India, and a similar path was followed in the

development of this industry. A number of private companies were in existence for years

and years until, in 1971, the Indian Government decided that the public interest would be

served by nationalizing the industry, merging all the 107 companies into four companies,

depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were

the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New

India Assurance Company Ltd., and the United India Insurance Company Ltd. located in

Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four

companies as its subsidiaries.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames

a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the

general insurance business in India with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies viz. the National Insurance Company

Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company

Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
 About IRDA

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the composition
of Authority

The Authority is a ten member team consisting of

(a) a chairman;
(b) five whole-time members.
(c) four part-time members.

(all appointed by the Government of India)

-M I S S I O N OF IRDA-

“To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.”
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 AEGON Religare Life Insurance 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 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:

Cash settlement: One of the most defining and customer-friendly changes that we’ve

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.

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. That’s
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.
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.
AEGON Religare Life Insurance is a joint venture of 3 major companies namely
AEGON, Religare and Bennett, Coleman & Co. Ltd. (BCCL). Company launched our
pan-India multi-channel operations in July, 2008 with over 30 branches spread across
India.

AEGON’s businesses serve over 40 million customers in over 20 markets throughout the
Americas, Europe and Asia, with major operations in the United States, the Netherlands
and the United Kingdom. With headquarters in The Hague, the Netherlands, AEGON
companies employ almost 32,000 people worldwide. AEGON has more than 160 years of
experience with its roots going back to 1844. It holds 26% equity in our company.

The Head office of AEGON Religare Life Insurance is 2 ndFloor, Paranjpe B Schem,
Shubhash Road, Near Garware, Vile Parle(E), Mumbai-400057
Religare Enterprises Limited:

Religare Enterprises Limited (REL) is one of the leading integrated financial services
groups of India. REL's businesses are broadly clubbed across three key verticals - the
Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial services
with its pan India reach in more than 1800* locations across more than 490* cities and
towns. REL also currently operates from 10 countries globally following its acquisition
of London's oldest brokerage & investment firm, Hichens, Harrison & Co. plc. With a
view to expand, diversify and introduce offerings benchmarked against global best
practices, Religare has partnered with Australia based financial services major-Macquarie
for its wealth management business and with Vistaar Entertainment to launch India's first
SEBI approved Film Fund offering a unique alternative asset class of investments. REL
holds 44% equity in our company.

Bennett, Coleman & Co. Ltd. (BCCL) :

Part of the Mammoth Times Group, is India’s largest media house. It reaches out to 2468
cities and towns all over India. The group owns and manages powerful media brands like
The Times of India, The Economic Times, Maharashtra Times, Navbharat Times,
Femina, Film fare, Grazia, Top Gear, Radio Mirchi, Zoom, Times Now, Times Music,
Times OOH, Private Treaties and indiatimes.com. All of its brands are multinational in
outlook, traditional at heart and national in spirit. From the very first edition on
November 3, 1838 the mammoth BCCL Group has come a long way. By way of the
innovative venture of Times Private Treaties, the BCCL Group holds 30% equity in our
company
 ORGANIZATIONAL STRUCTURE

CHIEF EXECUTIVE OFFICER

Rajiv Jamkhedkar

CHIEF FINANCIAL OFFICER & APPOINTED ACTUARY

K S Gopalakrishnan

CHIEF INVESTMENT OFFICER

Saibal Ghosh

CHIEF MARKETING OFFICER

Yateesh Srivastava

HEAD - AUDIT RISK & COMPLIANCE

Debmalya Maitra
 CORPORATE OBJECTIVE

Mission

To Help People Plan Their life Better

Our Vision
SWOT ANALYSIS

Strength :
 Experienced management team work and manage customers.
 Providing companies NAV of all funds everyday.
 IVR Technique
Weakness:

 AEGON Religare life Insurance is a new company, and people are not able to
believe on it.

 People are not aware of insurance in India.

 There are many competitors in market.

Opportunities:

 Planning to increase the number of branch offices.

 Planning to capture the all type of market.
 Opportunity to become a no.1 company in the field of insurance.

Threats:

 There are so many competitors in the same field so AEGON Religare Life
insurance has to face tough competition.
 Threat of losing customers.
UNIT LINKED INSURANCE PLANS

Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with
the benefits of protection and flexibility in investment. It is a solution which provides for
life insurance where the policy value at any time varies according to the value of the
underlying assets at the time. The investment is denoted as unit and is represented by the
value that it has attained called as Net Asset Value (NAV).

ULIPs are a category of goal-based financial solutions that combine the safety of
insurance protection with wealth creation opportunities. In ULIPs, a part of the
investment goes towards providing a life cover. The residual portion of the ULIP is
invested in a fund which in turn invests in stocks or bonds; the value of investments alters
with the performance of the underlying fund opted by the customer.

Simply put, ULIPs are structured in such that the protection element and the savings
element are distinguishable, and hence managed according to your specific needs. In this
way, the ULIP plan offers unprecedented flexibility and transparency.

ULIPs came into play in 1960s and became very popular in Western Europe and
America. The reason that is attributed to the wide spread popularity of ULIP is because of
the transparency and the flexibility which it offers to the clients.

As time progressed the plans were also successfully mapped along with life insurance
needs to retirement planning .In today’s times ULIP provides solution for all the needs
of a client like insurance planning, financial needs, financial planning for children’s
future and retirement planning.(
Source:http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance)

STRUCTURE OF ULIPs

ULIPs offered by different insurers have varying charge structures. Broadly the different
types of fees and charges are given below. However the insurers have the right to revise
or cancel the fees and charges over a period of time

( Source: http://www.scribd.com/doc/7044410/ULIPs)

Premium Allocation charges

This is a percentage of the premium appropriated towards charges before allocating the
units under the policy. This charge normally includes initial and renewal expenses apart
from commission expenses.

Mortality Charges

These are charges to provide for the cost of insurance coverage under the plan. Mortality
charges depend on number of factors such as age, amount of coverage, state of health etc.

Fund Management Charges

These are fees levied for management of the fund(s) and are deducted before arriving at
the Net Asset Value (NAV) .

Policy/ Administration Charges

These are the fees for administration of the plan and levied by cancellation of units. This
could be flat throughout the policy term or vary at a pre-determined rate
Surrender Charges

A surrender charge may be deducted for premature partial or full encashment of units
wherever applicable, as mentioned in the policy conditions.
Fund Switching Charge

Generally a limited number of fund switches may be allowed each year without charge,
with subsequent switches, subject to a charge. But now a days many insurers offer fund
switching free of cost.

Service Tax Deductions

Before allotment of the units the applicable service tax is deducted from the risk portion
of the premium.
TYPES OF FUNDS UNDER ULIPs

Most insurers offer a wide range of funds to suit one’s investment objectives, risk
profile and time horizons. Different funds have different risk profiles. The potential for
returns also varies from fund to fund. The following are some of the common types of
funds available along with an indication of their risk characteristics.
(Source: www.irdaindia.org)

General description Nature of investments Risk category

Equity Funds Primarily invested in company Medium to High

stocks with the general aim of
capital appreciation.

Income, Fixed Interest and Invested in corporate bonds, Medium

Bond Funds government securities and other
fixed income instruments.

Cash Funds Sometimes known as Money Low

Market Funds — invested in
cash, bank deposits and money
market instruments

Balanced Funds Combining equity investment Medium

with fixed interest instruments

Table 2: Types of funds under ULIPs

28
ADVANTAGES OF ULIPS

ULIP distinguishes itself through the multiple benefits that it provides to the consumer.
The plan is a one stop solution for everything the customers want. Unit Linked Insurance
Plans (ULIPs) are different from traditional plans purely because, they are much more
transparent, various charges are shared with the customer before the sale of the product,
so as to enable the customer to make an informed decision.
(Source:www.scribd.com/doc/7044410/ULIPs)

Customers have the flexibility to choose their life cover. Also the customers have the
choice of multiple fund options based on their risk appetite, thereby enabling an investor
to make the desired returns from the investment.

The following are some of the advantages of Unit linked plans:

a. Life protection

b. Investment and Savings

Market linked fund based on risk profile

Switch option

Premium redirection

Automatic Transfer Plan(ATP)

c. Tax Planning

d. Flexibility of cover continuance

29
e. Transparency

f. Extra protection with riders

Death due to accident

Disability

Critical illness

g. Liquidity

Partial withdrawals during the term

At maturity

h. Variable investment options

i. Premium holiday

j. Allow Top-ups

30
FACTORS INFLUENCING THE BUYING OF UNIT LINKEDINSURANCE
PLAN (ULIPs)

The degree of buying of ULIPs insurance varies from person to person. It

depends upon many factors. The factors can be classified into personal, social,
economic, psychological and company related variables. Age and experience of
policyholder are personal factors, while the co- education is a social factor.
Economic factors include occupation, income and wealth, and the
psychological factors consist of perception, satisfaction about the services
rendered by insurance companies, the impact of advertisement and personal
selling made by insurance companies on policyholders. The company related
variables are the promotional efforts to sell the policies to prospective buyers.
These include advertisement and personal selling too.
31
ARLI Products

32
Product Basket

ULIP Child

Term Riders

3 of 11

33
Launch products
 Products
 Protect Gain (a flexible unit linked plan for lower middle income to
HNIs)
 Star Child (a flexible child unit linked plan)
 Term Assurance Plan (a flexible pure protection plan)
 Premium Gain (for BA Channel)

 Riders
 ADDD Rider (Accidental Death, Dismemberment and Permanent Total
Disability)
 Critical Illness Rider (9 CI Conditions)

4 of 11

34
Your dream has always been to see your children outshine your dreams. To be able to
meet their needs and aspirations is what you always strive towards. Life, if systematically
managed, can keep changing for the better leading to a more secure future for your
children. AEGON Religare Star Child Plan aims to help you in doing just that. It not only
makes provisions for your children’s future but also ensures that their future remains
secured. In the event of your unfortunate demise we assure a lump sum payment and
waive off all future premiums till maturity. With the help of our Life Agent, fill out the
Life Planner that will help you take the steps to having your own plan.

Features :

Invest Protect Option , , Auto-rebalancing,Special Units, Premium Re-direction, Switch,

Maturity, 4 Fund Options, Partial Withdrawal

Settlement Option, Surrender, Death Benefits

Section 80C, 10 (10D) of the Income Tax Act, 1961

35
AEGON Religare Pension Plan

AEGON Religare Pension Plan provides you with a regular pension that will help you
take care of the much needed basic necessities, post-retirement.

Features and Benefits:

Vesting, Partial Withdrawal, Surrender, Death.

AEGON Religare Protect Gain Plan

Our life has many phases and it changes with time. But it doesn't have to be a financial
roller coaster ride for us. Life, if systematically managed, can constantly keep changing
for better, leading only to a more secured tomorrow. AEGON Religare Protect Gain plan
aims to do just that for us.

Features and Benefits:

Auto-rebalancing, Special Units, Premium Re-direction, Enhanced Sum Assured, Switch,

Maturity, Settlement Option, Partial Withdrawal, Surrender, Death, Tax Benefits.

36
 Choice of Investment Funds
 Policyholders will have option to invest in any one or more of the
following 4 funds

Asset Class Secure Fund Debt Fund Balanced Fund Enhanced

Equity Fund

Equities 0% 0% 30% - 70% 75% - 100%

Fixed Interest 60% -100% 60% -100% 30% - 70% 0% - 25%
Securities
Money Market 0% - 40% 0% - 40% 0% - 40% 0% - 25%
Instruments
Risk profile Low Low Moderate High

16 of 11

37
38
 AEGON RELIGARE COMPETITOR
• LIC
• ICICI PRUDENTIAL
• BAJAJ ALLIANZ
• RELIANCE
• BHARTI AXA
• KOTAK
• SBI LIFE
• ING VYSYA
• AVIVA
• TATA AIG
• BIRLA SUN LIFE
• HDFC STANDERD LIFE
• MAX NEW YORK
• MET LIFE
• SAHARA
• FUTURE GENERALLI
• IDBI FORTIS

39
 COMPETITION MAPPING OF LUCKNOW
SEVEN PRIVATE PLAYERS ‘MY SELECTION’

• ICICI PRUDENTIAL LIFE INSURANCE CO LTD.

• BAJAJ ALLIANZ LIFE INSURANCE CO LTD.

• HDFC STANDARD LIFE INSURANCE CO LTD.

• MAX NEW YORK LIFE INSURANCE CO LTD.

• AVIVA LIFE INSURANCE CO LTD.

• TATA AIG LIFE INSURANCE CO LTD.

• ING VYSYA LIFE INSURANCE CO LTD.

40
ICICI PRUDENTIAL LIFE INSURANCE

WE COVER YOU AT EVERY STEP IN LIFE

ICICI PRUDENTIAL Is A Joint Venture Between Icici Bank India One Of Indias
Foremost Financial Company & Prudential Plc UK A Leading International Financial
Service Group Began Their Business In December 2000.

PRUDENTIAL PLC Established In London In 1848, Prudential Pls

Providing It’s Service To More Than 20 Millian Customers And Manage Over £256
Billion Of Funds World Wide, Ins Asia It Is Working In More Than 12 Countries.

Work record

Today its nation team comprise of over 1000 offices, over 2,63,000
Advisors, And 22 Bancassurance Partners. The first insurance company receive a
national insurer financial strength rating of AAA. And ICICI Prudential voted as a ‘Most
Trusted Insurance Company’.

41
BAJAJ ALLIANZ

Bajaj Allianz Insurance Company Is A Joint Venture Between Bajaj (India) & Allianz Se
(…...).

Bajaj Is One Of The Most Trusted Name In Indian Auto For Over 55 Years And Bajaj Is
The One Of The Biggest 2 & 3 Wheeler Manufactures In The World.

Allianz se is a Leading Insurance Conglomerate Globally And One Of Largest

Asset Manager In The World managing Over Rs. 55,00,000 Crores.

WORK RECORD

Bajaj Is Started It’s Business In 2001 In India And In Six Months Done 21,376
Policies Of Worth Rs 7 Crore

42
BAJAJ ALLIANZ PRODUCTS

INVESTMENT CHILDREN PENSION

FEATURES UNIT GAIN SUPER YOUNG CARE PLUS UNIT GAIN PENSION PLUS
25000 - YEARLY 20000 - YEARLY 10000 - YEARLY
12500 - HALF YRLY 10000 - HALF YRLY 5000 - HALF YRLY
PREMIUM MINIMUM
7500 - QTRLY 5000 - QTLY 2500 - QTRLY
2500 - MONTHLY 2000 - MONTHLY 1000 - MONTHLY
MIN 7 Yrs (RISK COMMENCES AT AGE
AGE OF ENTRY 7) MIN-18 MAX-50 MIN - 18 YRS & MAX - 65 YRS
MAX - 60 Yrs
MIN-10 MAX-30 or AGE OF DEFERMENT PERIOD (5 TO 40)
POLICY TERM MIN 10 YRS
MATURITY TILL 65 YRS
MAX AGE AT MATURITY MIN -18 & MAX - 70 65 YEARS VESTING AGE (45-70) YRS
MIN (PREMIUM *5) MAX (PREMIUM
SUM ASSURED MIN (PREMIUM *5) MAX (PREMIUM *40) -
*40)
RIDERS OPTION FOUR (ADB,TDP,CI,HC) FOUR (ADB,TDP,CI,HC) -
MIN 5000 & MAX 25% OF TOTAL MIN 5000 & MAX 25% OF TOTAL 98% OF ANY AMOUNT WILL BE
TOP UP
PREMIUM PAID TO DATE PREMIUM PAID TO DATE ALLOCATED
3 PER YEAR FREE MIN AMOUNT 3 PER YEAR FREE MIN AMOUNT
SWITCHES 3 PER YEAR FREE MIN AMOUNT 5000
5000 5000

CAN NOT CHANGE WITH MINIMUM CAN NOT CHANGE WITH MINIMUM CAN INCREASE PREMIUM AT ANY
PREMIUM CHANGES
PREMIUM AMOUNT REQUIRED PREMIUM AMOUNT REQUIRED TIME

PREMIUM PAID WILL BE ELIGBLE

UNDER 80C & UNDER 10(10D) UNDER 80C & UNDER 10(10D)
TAX BENEFIT ON 1Lac FOR TAX DEDUCTION UNDER SEC
BENEFITS ARE TAX FREE BENEFITS ARE TAX FREE
80C
NO OF FUNDS THREE SIX FIVE
FIRST YRS 83% TO 85.5% DEPENDING
FIRST YRS 25% TO 60%
ON PREMIUM SIZE SECOND & FIRST YRS 84% TO 92%
DEPENDING ON PREMIUM SIZE
ALLOCATION OF FUNDS THIRD YRS 95% FOURTH & FIFTH YRS DEPENDING ON PREMIUM SIZE
SECOND YRS 3%
96% SIX SECOND YRS OR ONWARDS 98%
THIRD YRS OR ONWARD NIL
YRS OR ONWARD 98%

LOCKIN PERIOD THREE Yrs THREE Yrs THREE Yrs

GRACE PERIOD 15 DAYS 15 DAYS 15 DAYS

LOAN NOT AVAILABLE NOT AVAILABLE NOT AVAILABLE

43
HDFC STANDARD LIFE

SAR UTHA KE JIO

HDFC Standard Life Insurance Company Is One Of India’s leading life insurance
company. It is a joint venture between Housing Development And Finance Corporation
Limited (HDFC) India and Standard Life Uk.

hdfc is india’s leading housing finance institution was established in 1971 hdfc as on
31 mar 2007 holds 81.9% of equity in the joint venture.

Standard Life The Standard Life Insurance Company Was Established IN 1825 And
The First Standard Life Insurance Company Was Passed By Parliament In 1832.
Standard life was reincorporated as a mutual assurance company in 1925.

WORK RECORD

Its Gross Premium Income For The Year Ending 31 Mar 2007 Stood At Rs 2,856
Crores .

44
MAX NEW YORK LIFE INSURANCE COMPANY

Max New York Life Insurance Company Ltd. Is a Joint Veture New York Life, A
Fortune 100 Company And Max India Ltd One Of India’s multi business corporations.
new york life’s global experience of over 160 years and max india’s deep understaning of
the Indian Market.

The company has positioned itself on the quality platform. In line with its vision
to be the most admire Life Insurance Company In India, It Has Developed A Strong
Coporate Governence Model Based On The Core Value Of Excellence, Honesty,
Knowledge, Caring Integrity And Team Work.

The Strategy is to establish itself as a trusted Life Insurance Specialist through a Quality
Approach To Business.

45
SECTION B

Introduction
 Research Methodology
 Research Design
 Sampling Methodology
 Limitations of Research
 Facts & Findings

46
 RESEARCH
METHODOLOGY

47
 RESEARCH METHODOLOGY

INTRODUCTION

To determine customer-buying behavior with a focus on market segmentation for

AEGON RELIGARE Life Insurance. Because the entrance of private players will

increase the competition and it would be a tough task to secure a good position in

market. Since AEGON Religare Life Insurance Company Ltd is leading with several

companies’ policies it should be 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. This project

involves the process of gathering information from the customer who at present

holding any kind of policy or any investment. So that with the help of the gathered

data future strategies are made in order to meet the needs and requirement of the

prospect.

TITLE JUSTIFICATION:

The above title is self explanatory. The study deals mainly with studying the buying

pattern in the insurance industry with a special focus on AEGON Religare Life

Insurance. The various segments of the markets divided in terms of Insurance Needs,

Age groups , Satisfaction levels etc will also studied.

48
OBJECTIVE

Objective One

 To compare the Unit Linked Insurance Plans (ULIPs) of AEGON RELIGARE

with that of some other selected companies.

 To identify the strengths and weaknesses of AEGON RELIGARE and suggest

areas where it could focus more and improve upon.

 To study the consumer perception towards various insurance products.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of

new players have entered the market and are trying to gain market share in this rapidly

improving market. The study deals with AEGON RELIGARE in focus and the various

segments that it caters to. The study then goes on to evaluate and analyse the findings so

as to present a clear picture of trends in the Insurance sector.

49
SIGNIFICANCE OF THE STUDY

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 100 people. This

data can be explorated to take in the trends across the industry. The significance for the

industry lies in studying these trends that emerge from the study. It is a rapidly changing

and evolving sector. People are only beginning to wake up to it’s vast possibilities. A

study like this can attempt to guide the future of the industry based on current trends.

SIGNIFICANCE FOR THE RESEARCHER :

To facilitate and provide all the useful information of the study, to the company, the

insurance industry and also provide marketing ways, methods of Aegon religare Life

insurance.

RESEARCH DESIGN

 Non-Probability
50
 Exploratory & Descriptive Experimental Research

The research is primarily both exploratory as well as descriptive in nature. The sources of
information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customer’s perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY

SamplingTechnique: Initially, a rough draft was prepared keeping in mind the objective
of the research. A pilot study was done in order to know the accuracy of the
Questionnaire. The final Questionnaire was arrived only after certain important changes
were done. Thus my sampling came out to be judgmental

Sampling Unit:

51
The respondants who were asked to fill out questionnaires are the sampling units. These
comprise of employees of corporate offices, traders,, Govt. Employees, Self Employed
etc.

Sample size:

The sample size was restricted to only 100, which comprised of mainly peoples from
different areas of lucknow due to time constraints.

Sampling Area :

The area of the research was LUCKNOW, UTTAR PRADESH , INDIA.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain areas of lucknow 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.

52
FACTS & FINDINGS

53
FACTS & FINDINGS

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 another branch in lucknow. 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 AEGON RELIGARE LIFE INSURANCE LTD is leading with several

companies’ policies it should be 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.

54
SECTION C

Analysis
 Interpretation ( with Graphical Representation )
 SWOT Analysis
 Conclusion
 Recommendation

Bibliography
Appendix (Questionnaire)

55
DATA ANALYSIS AND
INTERPRETATION

56
PERFORMANCE OF ULIPs OF THE SELECTED COMPANIES

Here in order to compare the performances of the ULIPs of the selected five companies
with that of IDBI FORTIS we have selected a particular type of fund called equity
growth funds. The reason for selecting equity growth fund is that we would be very
clearly able to understand the effect of market slowdown on these companies. Here we
have considered the Net asset Values (NAV) of the equity growth funds from April 1 st
2008 to April 30th2009.We have then compared the compared the maximum and
minimum NAVs during the period and found out the percentage change for the NAVs
observed for the equity funds of the respective selected companies selected companies.

We have calculated the average NAV for every month (from April 1st 2008 to April
30th2009) for all the companies and then plotted them on graphs. We have then found out
the extent to which each company was affected due to the market slowdown. We have
also taken into consideration the latest NAVs of these companies to see the pattern of
growth of these funds post recession. The percentage change (negative) in the Net Asset
value for all the companies has been calculated below and we observe that LIC was the
least affected among the selected companies with only a percentage change of only -
23.38% which is quite low compared to -43.84% of that of Bajaj Allianz.
IDBI Fortis has shown a percentage change of which was started just a year back we can
say is showing a quite good and positive growth as -38.95%.But since IDBI Fortis is a
new company that it has managed quite well and right now it we can see from its present
NAV.

57
 Month NAV
Apr-08 8.4099
May-08 7.7124
Jun-08 7.5374
Jul-08 8.1797
Aug-08 7.9632
Sep-08 5.9740
Oct-08 5.7968
Nov-08 5.6706
Dec-08 5.5100
Jan-09 5.4479
Feb-09 5.1516
Mar-09 6.1597
Apr-09 6.4646

NAVs of HDFC Standard Life

58
Month NAV

Apr-08 8.4099

May-08 7.7124

Jun-08 7.5374

Jul-08 8.1797

Aug-08 7.9632

Sep-08 5.9740

Oct-08 5.7968

Nov-08 5.6706

Dec-08 5.5100

Jan-09 5.4479

Feb-09 5.1516

Mar-09 6.1597

Apr-09 6.4646

59
NAVs of Bajaj Allianz

60
 Month NAV
Apr-08 56.3500
May-08 56.6050
Jun-08 48.9250
Jul-08 48.8700
Aug-08 51.4450
Sep-08 49.1450
Oct-08 39.4450
Nov-08 35.6850
Dec-08 36.4000
Jan-09 34.8450
Feb-09 34.2650
Mar-09 33.4050
Apr-09 39.9150

NAVs of Bajaj Allianz

61
Month NAV
Apr-08 12.2400
May-08 12.1735
Jun-08 11.0585
Jul-08 11.0290
Aug-08 11.4950
Sep-08 11.1155
Oct-08 9.5505
Nov-08 9.3775
Dec-08 9.6165
Jan-09 9.6130
Feb-09 9.5395
Mar-09 9.4765
Apr-09 10.5715

NAVs of LIC

62
Month NAV
Apr-08 10.5838
May-08 10.4991
Jun-08 9.1765
Jul-08 9.3448
Aug-08 9.8183
Sep-08 9.0915
Oct-08 7.0785
Nov-08 6.9028
Dec-08 6.9151
Jan-09 6.6861
Feb-09 6.5328
Mar-09 6.4605
Apr-09 7.7746

NAVs of IDBI FORTIS

63
 DATA ANALYSIS & INTERPRETATION
 DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE
COMPANIES
NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT
L.I.C. 78 78
HDFC 2 2
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
A. RELIGARE
LIFE 3 3
INSURANCE
TOTAL 100 100

INTERPRETATION

 78% of the people contacted prefer LIC policy to any other and therefore it is

ranked no.1 by that percent of respondents.

64
 DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY
RESPONDENTS

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100

INTERPRETATION

 55% of the respondents believe that covering future uncertainty is the biggest

benefit of an insurance policy.

 Whereas, 20% and 25% of them believe that the other benefits are Tax deduction

and future investments respectively

65
 DATA PROVIDES FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100

INTERPRETATION

 Majority of the respondent (37%) found Larger risk coverance as the most

attracted feature of the all.

66
 DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 52 52

NON LIFE POLICY 17 17

BOTH 31 31

INTERPRETATION

 52% of the respondents have Life Insurance Policy while 17% have both. (The % is

calculated out of 280 positive response)

67
 DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

INTERPRETATION

 Of the sample size of 400 surveyed respondents 70% of the respondents are having

Insurance policy.

 30% of the respondents are either not having any Insurance policy at present or their

policy is already matured.

 And at present 100% of the respondents are with the view that Insurance is a tool to

protect your family.

68
 DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF SHARE (%)

RESPONDENTS

Customer approached Insurance 44 44%

company/Agent

Company/agent approached 56 56%

customer

Total 100 100%

INTERPRETATION

 44% of the respondents approached the Insurance Company / Agent.

 Whereas, 56% of the respondents were approached by the Company /Agent.

69
  DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Tax saving 31 31%

Saving / Investment 31 31%

Family protection 38 38%

INTERPRETATION

 31% of the Respondents opted for Insurance for tax saving benefits.

 31% of the Respondents opted for saving / Investments.

 But all of them, i.e. 38% of the respondents have opted for insurance for their family

protection.

70
 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO
POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

 60% of the respondents are more or less satisfied with their existing policy.

 40% of the respondents are not satisfied with their existing policy.

 In this case all of those who have taken a policy have responded.

71
 DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO
SERVICE AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

 45% of the respondents are satisfied with their existing service agent.

 55% of the respondents are not satisfied with their existing insurance agent.

 All of those who have taken a policy have responded.

72
 DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF
INVESTMENT FOR SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDENTS
Fixed Assets 33 33%
Bank deposits 5 5%
Jewellery 11 11%
Securities i.e. bonds, MFs 17 17%
Shares 4 4%
Insurance 30 30%

INTERPRETATION

 33% of the respondents as with the view that Fixed Assets is the best form of

investment for securing their future.

 30% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is one of the highest and this shows that

insurance is an important key for securing your future.

73
 DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR
BUYING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS
After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 61 61%

INTERPRETATION

 29% of the respondents are with the view that insurance should be bought after the

age of 25 years.

 10% of the respondents are with the view that insurance should be buyed after the

age of 35 years. Whereas, 61% of the respondents are with the view that buying of

insurance do not have any thing to do with age i.e. there is no age limitations. It can

be purchased any time according to the need.

74
  DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN
INSURANCE COMPANY

RESPONSE NO. OF SHARE (%)

RESPONDENT
S
A trusted name 29 29%
Friendly service & 25 25%
responsiveness
Good plans 29 29%
Accessibility 17 17%

INTERPRETATION

 29% customers look for a Trusted name in a company for insurance.

 29% customers look for a good plan in a company for insurance.

 Friendly service & responsiveness and Accessibility are also important factors

looked by customers in a company.

75
  DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Planning 87 87%

Not planning 13 13%

Total 100 100%

INTERPRETATION

 Only 13% of the customers contacted are not planning for new investments

presently. Whereas, 87% of the customers are still planning for new investments this

can be a great potential for AEGON RELIGARE Life Insurance to take them on

their favour.

76
CONCLUSION

77
 CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some interesting trends
which can be seen in the above analysis. A general impression that gathered during Data
collection was the immense awareness and knowledge among people about various
companies and their insurance products. People are beginning to look beyond LIC for
their insurance needs and are willing to trust private players with their hard earned
money.

People in general have been impressioned by the marketing and advertising campaigns of
insurance companies. A high penetration of Print , Radio and Television ad campaigns
over the years is beginning to have it’s impact now.

Another hearting trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as a protective one. A very high number of respondants
have opted for insurance for such purposes and it shows how insurance companies have
been successful to attract public money in recent times.

The general satisfaction levels among public with regards to policy and agents still
requires improvement. But therein lies the opportunity for a relative new comer like
AEGON RELIGARE Life Insurance Company Ltd . LIC has never been known for
prompt service or customer oriented methods and AEGON RELIGARE can build on
these factors.

78
RECOMMENDATIONS

79
 RECOMMENDATIONS

 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.

 Company should come up with its more branch in LUCKNOW. 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.

 Since AEGON Religare Life Insurance Company Ltd is leading with several
companies’ policies it should be 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.

80
BIBLIOGRAPHY

81
 BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFERRED:
.

 Books published by INSURANCE INSTITUTE OF INDIA

 LIFE-INSURANCE, by Mc GILL

 INSURANCEWATCH.

2. WEBSITES REFFERED:

 WWW.CIFAINSURANCE.COM

 WWW.MONEYOUTLOOK.COM

 WWW.INSURANCE.IND.COM

 WWW.AEGONRELIGARE.COM

82
QUESTIONNAIRE

83
 QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) AEGON RELIGARE LIFE INSURANCE

84
 f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?

(Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify)

85
7. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?
(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

8. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

86
9. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S
SCENARIO IS NOT ESSENTIAL?

_____________________________________________________

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

a) CUSTOMER APPROCHED INSURANCE COs

b) INSURANCE COs APPROCHED CUSTOMER

87
12. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

13. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

88
14 . WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

15. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

a) SAVING & RETURNS

b) SECURITY

c) TAX BENIFITS

89
 16. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM)

a) A TRUSTED NAME

b) FRIENDLY SERVICE & RESPONSIVENESS

c) GOOD PLANS

d) ACCESSIBILITY

THANK YOU

90