ANORGANI ONALSTUDYOF–SHRI

SATI RAM LI
FEI
NSURANCE,
CHENNAI
.

ASUMMERI
NTERNSHI
PREPORTSUBMI
TTEDTO

SCHOOLOFMANAGEMENTSTUDI
ES

VEL’
SINSTI
TUTEOFSCI
ENCE,
TECHNOLOGYANDADVANCEDSTUDI
ES
(VI
STAS)

(
Est
d.U/
s3oft
heUGCAct
,1956)
I
npar
ti
alf
ulf
il
mentoft
her
equi
rement
f
ort
heawar
doft
hedegr
eeof

MASTEROFBUSI
NESSADMI
NISTRATI
ON

Submi
tt
edby

Name:GANESAN.
S

Reg.No:19301113

Undert
hegui
danceof

(
NAMEOFTHEGUI
DE&DESI
GNATI
ON

Dr
.H.Pr
emr
aj,

M.
Com.
,M.
Phi
l.
,MBA(
Fin)
,MBA(
Mkt
g),
M.A.(
Yoga)
,PhD.
,

1
SCHOOLOFMANAGEMENTSTUDI
ES

VI
STAS

P.
V.VAI
THI
YALI
NGAM ROAD,

OLDPALLAVARAM CHENNAI
-600117.

(
2019-
2021)

SCHOOLOFMANAGEMENTSTUDI
ES

BONAFI
DECERTI
FICATE

2
 Thi
sist
ocer
ti
fyt
hatt
hei
nter
nshi
prepor
tti
tl
ed“
CUSTOMER-
BUYI
NG

BEHAVI
ORI
NLI
FEI
NSURANCEI
NDUSTRY”i
sabonaf
ider
ecor
dofwor
kcar
ri
edout
byMr
.GANESAN S(
Reg.No.
19301113)
SCHOOL OF MANAGEMENT STUDI
ES under
STAS s
VI ubmi
tt
edi
npar
ti
alf
ulf
il
lmentoft
her
equi
rement
sfort
heawar
doft
he
degr
eeofMast
erofBusi
nessAdmi
nist
rat
ion f
rom t
heVI
STAS f
ort
hesecond
semest
erdur
ing2019-
2021underourgui
dance.

Dr
.S.
Preet
ha Dr
.P.R.Ramakr
ishnan

HOD–MBA DEAN (
PROJECTGUI
DE)

I
NTERNALEXAMI
NER EXTERNALEXAMI
NER

3
 DECLARATI
ON

IGANESANast
udentofMBA,
SCHOOLOFMANAGEMENTSTUDI
ES,
VISTASher
eby
,
decl
aret
hatSummerI
nter
nshi
pti
tl
ed“
CUSTOMER-
BUYI
NGBEHAVI
ORI
NLI
FE
I
NSURANCEI
NDUSTRY”
,submi
tt
edt
otheVI
STASi
npar
ti
alf
ulf
il
lmentoft
he
r
equi
rementf
ort
heawar
doft
hedegr
eeofMast
erofBusi
nessAdmi
nist
rat
ioni
sa
r
ecor
dofbonaf
ider
esear
chcar
ri
edoutbymeundert
hegui
danceofDr
.H.Pr
emr
aj,

M.
Com.
,M.
Phi
l.
,MBA(
Fin)
,MBA(
Mkt
g),
M.A.(
Yoga)
,
PhD.
,
(Assi
stant
Prof
essor
),
SCHOOLOFMANAGEMENTSTUDI
ES,
VISTASandnopar
tof
i
thasbeensubmi
tt
edf
oranyot
herdegr
eeordi
ploma.

Pl
ace:

(
NAMEOFTHESTUDENT)

Dat
e:

4
1 I
NTRODUCTI
ON:

I
tisacommonl
yacknowl
edgedphenomenont
hatt
her
ear
ecount
lessr
isksi
n
ev
eryspher
eofl
i
fe.
forpr
oper
tyt
her
ear
efi
rer
iskf
orShi
pmentofgoods.Ther
ear
e
per
il
sofseaf
orhumanl
i
fet
her
ear
eri
skofdeat
hordi
sabi
l
ityandsoonchancesof
occur
rencesoft
heev
ent
scausi
ngl
ossesbearqui
teuncer
tai
nbecauset
hesemayor
maynott
akepl
ace.Ther
efor
e,wi
tht
hisv
iewi
nmi
nd,peopl
efaci
ngcommonf
und.
Whi
l
eitmaynotbepossi
blet
otel
linadv
ance.
whi
chpeopl
ewi
l
lsuf
fert
hel
osses,
it
i
spossi
blet
owor
kouthowmanypeopl
eonanav
erageoutoft
hegr
oup,
maysuf
fer
l
osses.Whenr
iskoccur
s,t
hel
ossi
smadgoodoutoft
hecommonf
und.I
nthi
sway
eachandev
eryoneshar
est
her
isk.I
nfactt
heyshar
ethel
ossbypay
mentof
pr
emi
um,
whi
chi
scal
cul
atedont
hel
i
kel
i
hoodofl
ossi
nol
dent
ime,
thecont
ri
but
ion
maket
heabov
est
atednot
ionofi
nsur
ance.

1.
1 DEFI
NITI
ONOFI
NSURANCE:

 FUNCTI
ONALDEFI
NITI
ONOFI
NSURANCE:

 I
nsur
ancei
saco-
oper
ati
vedev
icet
ospr
eadt
hel
osscausedbyapar
ti
cul
ar
r
iskov
eranumberofper
sons,
whoar
eexposedt
oitandwhoagr
eet
oinsur
e
t
hemsel
vesagai
nstt
her
isk.

 Thus,
thei
nsur
ancei
s;

5
 aco-
oper
ati
vedev
icet
ospr
eadt
her
isk;

 Thesy
stem t
ospr
eadt
her
iskov
eranumberofper
sonswhoar
einsur
ed
agai
nstt
her
isk;

 Thepr
inci
plet
oshar
ethel
ossofeachmemberoft
hesoci
etyont
hebasi
sof
t
hepr
obabi
l
ityofl
osst
othei
rri
sk;
and

 Themet
hodt
opr
ovi
desecur
it
yagai
nstl
ossest
othei
nsur
ed.

 Si
mil
arl
y,anot
herdef
ini
ti
oncanbegi
ven.

 CONTRACTUALDEFI
NITI
ONOFI
NSURANCE:

 I
nsur
ancehasbeendef
inedt
obet
hati
nwhi
chasum ofmoneyasapr
emi
um
i
spai
dinconsi
der
ati
onoft
hei
nsur
ancei
ncur
ri
ngt
her
iskofpay
ingal
arge
sum uponagi
vencont
ingency
.Thei
nsur
ance,
thus,
isacont
ractwher
eby
;

 Cer
tai
nsum,
cal
l
edpr
emi
um,
ischar
gedi
nconsi
der
ati
on,

 Agai
nstt
hesai
dconsi
der
ati
on,
alar
gesum i
sguar
ant
eedt
obepai
dbyt
he
i
nsur
erwhor
ecei
vedt
hepr
emi
um,

 Thepay
mentwi
l
lbemadei
nacer
tai
ndef
ini
tesum,
i.
e.,
thel
ossort
hepol
i
cy
amountwhi
chev
ermaybe,
and

 Thepay
menti
smadeonl
yuponacont
ingency
.

 Themor
especi
fi
cdef
ini
ti
oncanbegi
venasf
oll
owi
ng“
Insur
ancemaybe
def
inedasaconsi
sti
ngonepar
ty(
thei
nsur
er)agr
eest
opayt
otheot
herpar
ty
(
thei
nsur
er)orhi
sbenef
ici
ary
,acer
tai
nsum uponagi
vencont
ingency(
the

6
 r
isk)agai
nstwhi
chi
nsur
ancei
ssought
.”

 I
nsur
ancei
saco-
oper
ati
vedev
iceofdi
str
ibut
ingl
osses,
fal
l
ingonan
i
ndi
vi
dual
orhi
sfami
l
yov
eral
argenumberofper
sons,
eachbear
inga
nomi
nal
expendi
tur
eandf
eel
i
ngsecur
eagai
nstheav
yloss.

1.
2 ORI
GINANDDEVELOPMENTOFI
NSURANCEI
NDUSTRY:

Theconceptofi
nsur
ancei
sbel
i
evedt
ohav
eemer
gedal
most4500y
ear
sagoi
nthe
anci
entl
andofBaby
loni
awher
etr
ader
sar
eusedt
obearr
iskoft
hecar
avanbygi
vi
ng
l
oans,
whi
chwer
elat
err
epai
dwi
thi
nter
estwhent
hegoodsar
ri
vedatsaf
ely
.The
f
ir
sti
nsur
ancecont
ractwasent
eredi
ntobyEur
opeanmar
it
imenat
ioni
n1347t
o
acceptmar
inei
nsur
anceasapr
act
ice.

Theol
destl
i
fei
nsur
ancecompanyi
nexi
stencet
odayi
sthesoci
etyf
ort
heequi
tabl
e
assur
anceofl
i
vesandSur
viv
orshi
p,knownas“
oldEqui
tabl
e”.I
twasest
abl
i
shedi
n
Engl
andi
n1756

LI
FEI
NSURANCE:

Li
fei
nsur
ancei
saguar
ant
eet
haty
ourf
ami
l
ywi
l
lrecei
vef
inanci
alsuppor
t,ev
eni
n
y
ourabsence.Putsi
mpl
y,l
i
fei
nsur
ancepr
ovi
desy
ourf
ami
l
ywi
thasum ofmoney
shoul
dsomet
hinghappent
oyou.I
tthusper
manent
lypr
otect
syourf
ami
l
yfr
om

7
f
inanci
alcr
ises.

I
naddi
ti
ont
oser
vingasapr
otect
ivecov
er,
li
fei
nsur
anceact
sasaf
lexi
blemoney
-
sav
ingscheme,
whi
chempower
syout
oaccumul
ateweal
th-
tobuyanewcar
,get
y
ourchi
l
drenmar
ri
edandev
enr
eti
recomf
ort
abl
y.Li
fei
nsur
anceal
sot
ri
plesupas
ani
deal
tax-
sav
ingscheme.

Theopeni
ngupofi
nsur
ancesect
orwasapar
toft
heongoi
ngl
i
ber
ali
zat
ioni
nthe
f
inanci
alsect
orofI
ndi
a.Thechangi
ngf
aceoft
hef
inanci
alsegmentandhi
sent
ryof
sev
eral
compani
esi
nthef
iel
dofl
i
feandnonl
i
fei
nsur
ancesegmentar
eoneoft
he
keyr
esul
tsoft
hesel
i
ber
ali
zat
ionef
for
ts.I
nsur
ancebusi
nessbywayofgener
ati
ng
pr
emi
um i
ncomeaddssi
gni
fi
cant
lyt
otheGDP.

2 COMPANYPROFI
LE:

Li
feI
nsur
anceCompanyLi
mit
edi
sthej
ointv
ent
urebet
weent
heGr
oup(
74%)and
t
heSanl
am Gr
oup(
26%)
.Li
feI
nsur
ancecompanywasest
abl
i
shedi
n1974andi
s
HeadQuar
ter
edi
nChennai
. gr
ouphas2600br
anches,
hasmor
ethan60,
000
empl
oyees.
 Li
fe 
wasi
ncor
por
ated 
i
n2005andst
art
edi
tsBusi
nessi
n2006.
i
nsur
ancecompanyi
sleadi
ngpr
ofi
tabl
ecompanyi
nthecount
ry.

Sanl
am i
soneoft
hel
eadi
ngf
inanci
alcompanyandwasest
abl
i
shedi
n1918.
Sanl
am gr
oupi
sHeadquar
ter
esi
nSout
hAf
ri
canearCapeTown.Bot
handSanl
am
gr
oupsst
art
edt
hei
rbusi
nessi
n2005.
 Manoj
KumarJai
nist
heCEOofShr
iram Li
fe
I
nsur
anceCompany
. 

l
i
fei
nsur
ancecompanywasf
oundedi
nthey
ear2005andcommenced
oper
ati
onsi
nthey
ear2006.
SLI
Ciswel
lknownf
ort
hei
ref
fi
cientuseofcapi
tal
and
l
owoper
ati
onal
cost
s.Tot
alnumberofi
nsur
edl
i
vesi
smor
ethan26l
aks.

8
 Li
feI
nsur
ancePr
oduct
sLi
feI
nsur
anceof
fer
sa 
var
iet
yofpr
oduct
ssuchasTer
m
I
nsur
ancePl
ans,
EndowmentPl
ans,
Pensi
onPl
ans,
ULI
P(Uni
tLi
nkedI
nsur
ance
Pl
ans)
,MoneyBackPl
ans,Chi
l
dPl
ans,
Sav
ingsandI
nvest
mentPl
ans,
Weal
thand
Pr
otect
ionPl
ans,
etc.

2.
1 BENEFI
TSOFLI
FEI
NSURANCE:

o Fi
nanci
alPr
otect
ion:Pl
answhi
chpr
ovi
def
inanci
alpr
otect
iont
oyourf
ami
l
y.

o Fl
exi
bil
it
y:Fl
exi
blepr
emi
um andpay
outopt
ions.

o Onl
inepl
ans:Speci
fi
cal
l
ydesi
gnedonl
i
nepl
anst
hatcost
slower

o Var
iet
y:Of
fer
sav
ari
etyofonl
i
neaswel
lasof
fl
inepl
ans

o Cust
omerSer
vice:Of
fer
sgood,
hassl
e-f
reepr
e-sal
esandpost
-sal
esser
vices.

o Taxbenef
it
s:Sav
etaxonal
lpr
emi
umsandpay
out
sundert
hesect
ion80C
and10(
10D)ofI
ncomeTaxAct
,1961

o Li
fehasmor
ethan528br
ancheswi
thov
erandabov
e1.
45cr
orecust
omer
s.

o Li
fecl
ockedRs.
1020cr
oregr
osspr
emi
um i
n2015-
2016.

o Thecompanyhasanet
wor
kof609of
fi
cesand75,
000agent
sacr
ossI
ndi
a.

o hasanout
standi
ngUnder
wri
ti
ngRecor
dandhasawar
dedas‘
Under
wri
ti
ng
I
nit
iat
iveoft
heYear
.’

o Li
feI
nsur
ancegener
atesmor
ethan40%busi
nesst
hroughpr
ovi
ding
i
nsur
ancet
orur
alar
eaandweakersegmenti
ndi
vi
dual
s-‘
AAM AADMI
’of
I
ndi
a.

9
 o TheFounderofGr
oup,
MrRThy
agar
ajan,
hasbeenawar
dedwi
thPadma
Bhushanawar
d.

2.
2 LI
FEI
NSURANCEPLANSBY LI
FEI
NSURANCECOMPANY:

Li
feFami
l
yPr
otect
ionPl
an:
Thi
spl
ancat
erst
otheneedsofpeopl
ewhowantt
o
pr
otectt
hei
rfami
l
iesi
ncaseofanunt
imel
ydeat
h.I
tof
fer
sfl
exi
bil
i
tyi
npay
ing
pr
emi
ums-Mont
hly(
onl
ybyECS)orAnnual
l
y.Thei
nsur
edhast
heopt
iont
osel
ect
t
owhom t
he‘
Deat
hSum Assur
ed’
hast
obepai
dincaseofanunt
imel
ydeat
h.

Deat
hBenef
itPay
outopt
ion-Thepol
i
cyhol
dercanoptf
orei
theral
umpsum opt
ion
ori
nst
all
mentopt
ion.I
ncaseofal
umpsum pay
out
,thedeat
hsum assur
edi
spai
d
atonceandt
hepol
i
cyt
ermi
nat
es.I
f,ont
heot
herhandapol
i
cyhol
deropt
sforan
i
nst
all
mentopt
ion,
thent
he50%oft
hesum assur
edi
spai
dasal
umpsum amount
andt
her
esti
spai
din5equal
annual
inst
all
ment
s.Ther
ear
enosur
viv
albenef
it
s.
Themi
nimum el
i
gibi
l
ityagei
s18y
ear
swhi
l
emaxi
mum i
s60y
ear
swi
thasum
assur
edr
angi
ngbet
weenI
NR.15t
o5c.

Li
feCashBackTer
m Pl
an:
TheLi
feCashBackTer
m Pl
anf
eat
uresl
umpsum
pay
outi
ncaseofanunf
ort
unat
edeat
hoft
hei
nsur
edi
nor
dert
opr
otectt
hef
inanci
al
secur
it
yofhi
s/herf
ami
l
ymember
s.I
tof
fer
sfl
exi
bil
i
tyi
npay
ingpr
emi
ums-y
ear
ly,
hal
fyear
ly,
quar
ter
lyandmont
hlywi
thanopt
iont
ochoosepol
i
cyt
erm asper
10/
15/
20/
25y
ear
s.

Deat
hBenef
itPay
outopt
ion-Thesum assur
edondeat
hispai
donl
yifal
lthe
pr
emi
umshav
ebeenmet
.Thedeat
hbenef
itwi
l
lbehi
gherofbasi
csum assur
edor

10
atl
east105%ofal
lthepr
emi
umspai
d.Themi
nimum el
i
gibi
l
ityagei
s12y
ear
swhi
l
e
t
hemaxi
mum i
s50y
ear
swi
thasum assur
edr
angi
ngbet
weenI
NR.2,
00,
000t
oINR.
20,
00,
000.

Addonbenef
it
sincl
udeRi
deropt
ions:

Acci
dentBenef
itRi
der
:Int
heev
entofdeat
hoft
hel
i
feassur
edduet
oanacci
dentor
acci
dent
alper
manentdi
sabi
l
ity
,ther
idersum assur
edi
spai
d.I
nthecaseofa
per
manentdi
sabi
l
ity
,thef
utur
epr
emi
umsar
ewai
ved.

Fami
l
yIncomeBenef
it
:Undert
hisr
ider
,1%ofsum assur
edwi
l
lbepai
dev
erymont
h
f
oraguar
ant
eedper
iodof10y
ear
sort
il
ltheendoft
her
idert
erm whi
chev
eri
s
hi
gher
,ift
hel
i
feassur
eddi
esduet
oanacci
dentorbecomest
otal
l
yandper
manent
ly
di
sabl
edduet
oanacci
dent
.

Cr
it
ical
Ill
nessCov
er:
Thi
sri
dercov
ers6maj
orcr
it
ical
il
lnesses-Cancer
,Hear
t
At
tack,
Str
oke,
KidneyFai
l
ure,
Cor
onar
yAr
ter
yBy
passSur
ger
yandMaj
orOr
gan
Tr
anspl
ant
.Ont
hef
ir
stdi
agnosi
sofanyoft
hesi
xcr
it
ical
il
lness,
ther
iderbenef
itwi
l
l
bepai
dasal
umpsum benef
it
.

Li
feSecur
ePl
usPl
an:
Thi
spl
ani
ssi
mil
ari
nfunct
iont
otheonesment
ionedabov
e
wher
eyouhav
efl
exi
bil
i
tyi
npay
ingpr
emi
ums-y
ear
ly,
hal
fyear
ly,
quar
ter
lyand
mont
hlywi
thanopt
iont
ochoosepol
i
cyt
erm asper10/
15/
20y
ear
s.Ri
deropt
ions
compr
iseofAcci
dent
alBenef
it
,Fami
l
yIncomeBenef
itandCr
it
ical
Ill
nessCov
er.

11
2.
3 MI
SSI
ONANDVI
SION:

TheLi
feI
nsur
anceCompanywasf
oundedwi
tht
heobj
ect
iveofr
eachi
ngoutt
othe
“
commonman”wi
thpr
oduct
sandser
vicest
hatwoul
dbehel
pful
tohi
m asheset
s
outont
hepat
hto“
prosper
it
y”.

Oper
ati
onal
eff
ici
ency
,int
egr
it
yandast
rongf
ocusoncat
eri
ngt
otheneedsoft
he
av
erageI
ndi
an,
byof
fer
inghi
m hi
ghqual
i
tyandcost
-ef
fect
ivepr
oduct
sandser
vices,
ar
ethecor
eval
uest
hatdr
ivet
heor
gani
zat
ion.Thesev
alueshav
ebeenst
rongl
y
adher
edt
oov
ert
hedecadesandar
enowani
ntegr
alpar
toft
heor
gani
zat
ionsDNA.

Thecompanypr
idesi
tsel
foni
tsdeepunder
standi
ngoft
hecust
omer
.Eachpr
oduct
orser
vicei
stai
l
or-
madet
ospeci
fi
cal
l
ysui
ttheneedsoft
hecust
omer
.Iti
sthi
s
gui
dingphi
l
osophyofput
ti
ngpeopl
efi
rstt
hathasbr
oughtt
hegr
oupcompanycl
oser
t
othegr
assr
oot
sandhasmadei
tthepr
efer
redchoi
cef
oral
ltr
uckf
inanci
ng
r
equi
rement
samongstt
hecust
omer
s.

2.
4 BOARDOFDI
RECTORS:

TheCompany
’sBoar
dcompr
isesofadequat
emi
xofExecut
iveandNon-
Execut
ive
Di
rect
orsi
ncl
udi
ngt
heI
ndependentDi
rect
ors.TheDi
rect
orsont
heBoar
doft
he
Companycomef
rom di
ver
seexper
iencesandbackgr
oundsandhav
eawi
der
ange
ofexper
ienceandski
l
ls.Thecur
rentBoar
dsi
zeandcomposi
ti
oni
sconsi
der
ed
opt
imal
,consi
der
ingourbusi
nessandev
olut
ioncont
ext
.Noneoft
heDi
rect
orsoft
he
Companyar
erel
atedt
oeachot
her
.TheDi
rect
orsat
tendandact
ivel
ypar
ti
cipat
ein
t
heBoar
dMeet
ings,
andmeet
ingsoft
heCommi
tt
eesi
nwhi
cht
heyar
emember
s.

12
CHAI
RMAN:
MR.
T.S.KRI
SHNAMURTHY

MANAGI
NGDI
RECTORS :
SMT.
AKHI
LASRI
NIVASAN

MR.
CASPARUSJHKROMHOUT

MR.
MANOJJAI
N

2.
5 DEPARTMENTS:

MARKETI
NGDEPARTMENT:

Thi
sdepar
tmentmai
nlydeal
swi
tht
hemar
ket
ingandpr
omot
ionpar
toft
he
i
nsur
ancecompany
.Theyspendmostoft
hei
rti
mei
nfor
mul
ati
ngst
rat
egi
est
omake
t
hei
rpr
oduct
sknownt
othepeopl
eandt
opr
omot
ethesamei
naeasyandcost
ef
fect
iveway
.

SALESDEPARTMENT:

Thi
sdepar
tmentmai
nlydeal
swi
tht
hesal
espar
toft
hei
nsur
ancecompany.
the
depar
tmenti
ncl
udedesi
gnat
ionsl
i
kesal
esmanagerandf
inanci
aladv
isorwho
per
sonal
l
ycont
act
swi
thpeopl
eforper
for
mingt
het
askofsal
esofv
ari
ouspr
oduct
s.

FI
NANCI
ALDEPARTMENT:

Thi
sdepar
tmenthast
het
askofkeepi
ngt
rackoft
hev
ari
ousexpensesi
ncur
redby
t
hev
ari
ousdepar
tment
soft
heor
gani
zat
ionandal
soper
for
mst
het
askofal
l
ocat
ing
v
ari
ousf
undst
odi
ff
erentdepar
tment
saccor
dingt
othei
rrequi
rement
s

13
HUMANRESOURCEDEPARTMENT:

Thedepar
tmenti
shandl
edbyt
hehumanr
esour
cemanageroft
hecompany
.The
f
unct
ionoft
hisdepar
tmenti
nvol
veswel
lbei
ngoft
heempl
oyeesoft
hecompany
.It
i
stoseewhet
hert
her
eisempl
oyeegr
iev
ancei
ntheor
gani
zat
ionornotandi
fiti
s
t
her
ewhatar
ethepossi
blecausesf
ort
hatandal
sot
ryt
ofi
ndoutsol
uti
onsf
ort
he
samei
fpossi
ble.

I
NVESTMENTDEPARTMENT:

Thi
sdepar
tmentdeal
swi
tht
het
askofi
nvest
ingt
hemoneyoft
hepol
i
cyhol
der
sin
suchawayt
hatwi
l
lensur
ebot
hsaf
etyoft
hemoneyandal
soast
eadyr
etur
nont
he
same.Thet
askoft
hisdepar
tmenti
sver
ydi
ff
icul
tasi
tdeal
swi
tht
hemoneygi
ven
byt
hepol
i
cyhol
der
s,soi
trequi
resl
otoft
hinki
ngont
hepar
toft
hisdepar
tment
bef
oredeci
dingwher
etoi
nvestt
hemoney

ACTUARI
ALDEPARTMENT:

Thi
sdepar
tmenti
sundert
hesuper
visi
onofanact
uar
ywhodeci
dest
hepr
emi
um
andchar
gest
obet
akenf
rom t
hepol
i
cyhol
deront
hebasi
sofcer
tai
ninf
ormat
ion
pr
ovi
dedbyt
hepr
ospect
ivecust
omer
.Thet
askal
soi
nvol
vest
hecal
cul
ati
onof
mor
tal
i
tychar
geswhi
chr
equi
reshi
ghst
ati
sti
cal
knowl
edgef
rom onepoi
ntofv
iew.
So,
thi
sdepar
tmenti
nvol
vesi
nthecal
cul
ati
onofv
ari
ousamount
stobechar
ged
f
rom t
hepr
ospect
ivecust
omer
s.

2.
6INSURANCEREGULATORYANDDEVELOPMENTAUTHORI
TY:

TheI
nsur
anceRegul
ator
yandDev
elopmentAut
hor
it
yofI
ndi
a(I
RDAI
)isan
aut
onomous,
stat
utor
ybodyt
askedwi
thr
egul
ati
ngandpr
omot
ingt
hei
nsur
anceand
r
e-i
nsur
ancei
ndust
ri
esi
nIndi
a.I
twasconst
it
utedbyt
heI
nsur
anceRegul
ator
yand
14
Dev
elopmentAut
hor
it
yAct
,1999anActofPar
li
amentpassedbyt
heGov
ernmentof
I
ndi
a.Theagency
'sheadquar
ter
sar
einHy
der
abad,
Tel
anganawher
eitmov
edf
rom
del
hii
n2001.

I
RDAIi
sa10-
memberbodyi
ncl
udi
ngt
hechai
rman,
fiv
eful
l
-ti
meandf
ourpar
t-
ti
me
member
sappoi
ntedbyt
hegov
ernmentofThef
unct
ionsoft
heI
RDAIar
edef
inedi
n
Sect
ion14oft
heI
RDAIAct
,1999.

FUNCTI
ONSI
RDA:

 I
ssui
ng,
renewi
ng,
modi
fyi
ng,
wit
hdr
awi
ng,
suspendi
ngorcancel
l
ing
r
egi
str
ati
ons

 Pr
otect
ingpol
i
cyhol
deri
nter
est
s

 Speci
fyi
ngqual
i
ficat
ions,
thecodeofconductandt
rai
ningf
ori
nter
medi
ari
es
andagent
s

 Speci
fyi
ngt
hecodeofconductf
orsur
vey
orsandl
ossassessor
s

 Pr
omot
ingef
fi
ciencyi
ntheconductofi
nsur
ancebusi
nesses

 Pr
omot
ingandr
egul
ati
ngpr
ofessi
onal
organi
zat
ion.connect
edwi
tht
he
i
nsur
anceandr
e-i
nsur
ancei
ndust
ry

 Lev
yingf
eesandot
herchar
ges

 I
nspect
ingandi
nvest
igat
ingi
nsur
ers,
int
ermedi
ari
esandot
herr
elev
ant
or
gani
zat
ion.

 Regul
ati
ngr
ates,
adv
ant
ages,
ter
msandcondi
ti
onswhi
chmaybeof
fer
edby
i
nsur
ersnotcov
eredbyt
heTar
if
fAdv
isor
yCommi
tt
eeundersect
ion64Uof
t
heI
nsur
anceAct
,1938(
4of1938)

 Speci
fyi
nghowbooksshoul
dbekept

 Regul
ati
ngcompanyi
nvest
mentoff
unds

15
  Regul
ati
ngamar
ginofsol
vency

 Adj
udi
cat
ingdi
sput
esbet
weeni
nsur
ersandi
nter
medi
ari
esori
nsur
ance
i
nter
medi
ari
esSuper
visi
ngt
heTar
if
fAdv
isor
yCommi
tt
ee

3I
NDUSTRYPROFI
LE:

Li
fei
nsur
ancecompanydef
inedForpur
posesoft
hissubt
it
le,
thet
erm“
li
fe
i
nsur
ancecompany
”meansani
nsur
ancecompanywhi
chi
sengagedi
nthebusi
ness
ofi
ssui
ngl
i
fei
nsur
anceandannui
tycont
ract
s(ei
thersepar
atel
yorcombi
nedwi
th
acci
dentandheal
thi
nsur
ance)
,ornoncancel
l
abl
econt
ract
sofheal
thandacci
dent
i
nsur
ance

Thesear
epar
ti
cipat
ingpl
ans,
andal
sodecl
arer
ever
sionar
ybonusesand
oncedecl
aredt
heyf
orm apar
toft
heGuar
ant
eedBenef
it
sInsur
ancei
snot
hingbuta
sy
stem ofspr
eadi
ngt
her
iskofoneont
otheshoul
der
sofmany
.Whi
l
sti
tbecomes
somewhati
mpossi
blef
oramant
obearbyhi
msel
f100%l
osst
ohi
sownpr
oper
tyor
i
nter
estar
isi
ngoutofanunf
oreseencont
ingency
,insur
ancei
samet
hodorpr
ocess
whi
chdi
str
ibut
est
hebur
denoft
hel
ossonanumberofper
sonswi
thi
nthegr
oup
f
ormedf
ort
hispar
ti
cul
arpur
pose.

Thei
nsur
ancei
ndust
ryi
smadeupofdi
ff
erentt
ypesofpl
ayer
soper
ati
ngi
ndi
ff
erent
spaces.Li
fei
nsur
ancecompani
esf
ocusonl
egacypl
anni
ngandr
epl
aci
nghuman
capi
tal
val
ue,
heal
thi
nsur
erscov
ermedi
cal
cost
s,andpr
oper
ty,
casual
ty,
oracci
dent
i
nsur
ancei
sai
medatr
epl
aci
ngt
hev
alueofhomes,
car
s,orv
aluabl
es.

I
nsur
ancecompani
escanbest
ruct
uredei
therasat
radi
ti
onal
stockcompanywi
th
out
sidei
nvest
orsormut
ual
compani
eswher
epol
i
cyhol
der
sar
etheowner
s.

16
3.
1 HI
STORYOF 
INSURANCEI
NMODERNI
NDI
A:

 Moder
nInsur
ancei
nIndi
abeganar
ound1800ADwi
thagenci
esoff
orei
gn
i
nsur
ancest
art
ingamar
ineI
nsur
ancebusi
ness.SomeI
mpor
tantmi
l
est
ones
i
ninsur
ancehi
stor
yar
eli
stedbel
ow.

 1818:
Ori
ent
alLi
feI
nsur
anceCompany
,thef
ir
stl
i
fei
nsur
ancecompanyon
I
ndi
ansoi
lst
art
edf
unct
ioni
ng.

 1870:
BombayMut
ual
Lif
eAssur
anceSoci
ety
,thef
ir
stI
ndi
anl
i
fei
nsur
ance
companyst
art
edi
tsbusi
ness.

 1912:
TheI
ndi
anLi
feAssur
anceCompani
esActenact
edast
hef
ir
stst
atut
e
t
oregul
atet
hel
i
fei
nsur
ancebusi
ness.

 1928:
TheI
ndi
anI
nsur
anceCompani
esActenact
edt
oenabl
ethegov
ernment
t
ocol
l
ectst
ati
sti
cal
inf
ormat
ionaboutbot
hli
feandnon-
li
fei
nsur
ance
busi
nesses.

 1938:
Ear
li
erl
egi
slat
ionconsol
i
dat
edandamendedt
obyt
heI
nsur
anceAct
wi
tht
heobj
ect
iveofpr
otect
ingt
hei
nter
est
soft
hei
nsur
ingpubl
i
c.

 1956:
Nat
ional
i
zat
ionofl
i
fei
nsur
ance:
Lif
einsur
ancebusi
nesswas
nat
ional
i
zedon1stSept
ember1956andt
heLi
feI
nsur
anceCor
por
ati
onof
I
ndi
a(LI
C)wasf
ormedt
hrought
heLI
CAct
,1956.
  
Acapi
tal
cont
ri
but
ionofRs.
5C f
rom t
heGov
ernmentofI
ndi
awasal
somade.Ther
ewer
e170compani
es
and75pr
ovi
dentf
undsoci
eti
esdoi
ngl
i
fei
nsur
ancebusi
nessi
nIndi
aatt
hat
t
ime.Fr
om 1956t
o1999,
theLI
Chel
dexcl
usi
ver
ight
stodot
hel
i
fei
nsur
ance

17
 busi
nessi
nIndi
a.

 1972:
Nat
ional
i
zat
ionofnon-
li
fei
nsur
ance:
Wit
htheenact
mentofGener
al
I
nsur
anceBusi
nessNat
ional
i
zat
ionAct(
GIBNA)i
n1972,
thenon-
li
fe
i
nsur
ancebusi
nesswasal
sonat
ional
i
zedandt
heGener
alI
nsur
ance
Cor
por
ati
onofI
ndi
a(GI
C)andi
tsf
oursubsi
diar
ieswer
esetup.Att
hatpoi
nt
oft
ime,
106i
nsur
ersi
nIndi
adoi
ngnon-
li
fei
nsur
ancebusi
nesswer
e
amal
gamat
edwi
tht
hef
ormat
ionoff
oursubsi
diar
iesoft
heGI
CofI
ndi
a.

3.
2 LI
FEI
NSURANCEI
NDUSTRY 
TODAY:

Cur
rent
ly,
24l
i
fei
nsur
ancecompani
esand29non-
li
fei
nsur
ancecompani
esi
n
t
he 
Indi
anmar
ketcompet
ewi
theachot
heronpr
iceandser
vicet
oat
tractcust
omer
s.
Outoft
he24l
i
fei
nsur
ancecompani
es,
Lif
eInsur
anceCor
por
ati
onofI
ndi
a(LI
C)i
s
t
hesol
epubl
i
csect
orcompanyf
ull
yownedbyGov
ernmentofI
ndi
a.Al
lthepol
i
cies
i
ssuedbyLI
CofI
ndi
aenj
oysSov
erei
gnguar
ant
eeofI
ndi
anPar
li
ament
.

Thecount
ry’
sinsur
ancemar
keti
sexpect
edt
oquadr
upl
einsi
zeov
ert
henext10
y
ear
sfr
om i
tscur
rentsi
zeofUS$60bi
l
li
on.Dur
ingt
hisper
iod,
thel
i
fei
nsur
ance
mar
keti
ssl
atedt
ocr
ossUS$160bi
l
li
on.

Thegener
ali
nsur
ancebusi
nessi
nIndi
aiscur
rent
lyatRs78,
000cr
ore(
US$11.
7
bi
l
li
on)pr
emi
um perannum andi
sgr
owi
ngataheal
thyr
ateof17per
cent
.

I
ndi
a’
sinsur
ancemar
ketl
agsbehi
ndot
hereconomi
esi
nthebasel
i
nemeasur
eof
i
nsur
ancepenet
rat
ion.Atonl
y3.
9per
cent
,Indi
aiswel
lbehi
ndt
he11.
9per
centf
or
Kor
ea,
11.
5per
centf
ort
heUK,
11.
1per
centf
orJapan,
and7.
5per
centf
ort
heUS.
I
ndi
anI
nsur
anceI
ndust
ryi
sexpect
edt
ogr
owt
otheUS 
$280bi
l
li
onbyFi
nanci
al
Year2020.

TheI
ndi
ani
nsur
ancemar
keti
sconsi
der
edt
ohav
eahugebusi
nessoppor
tuni
ty
wai
ti
ngt
obehar
nessed.I
ndi
acur
rent
lyaccount
sforl
esst
han1.
5per
centoft
he
wor
ld’
stot
ali
nsur
ancepr
emi
umsandabout2per
centoft
hewor
ld’
sli
fei
nsur
ance

18
pr
emi
umsdespi
tebei
ngt
hesecondmostpopul
ousnat
ion.

3.
3 TYPESOFI
NSURANCEPLANS:

Ter
m Pl
ans:

Ter
minsur
ancei
sapl
ainv
ani
l
lai
nsur
ancepl
ant
hatof
fer
sfi
nanci
alsecur
it
ytoy
our
l
ovedonesi
ntheev
ent
ual
i
tyofy
ourdeat
h.Thesepl
ansar
epur
chasedf
oraf
ixed
dur
ati
onwher
eini
ncaseoft
hepol
i
cyhol
der
’sdeat
hthenomi
neeornomi
nees
r
ecei
vet
heent
ir
esum assur
ed.I
fthepol
i
cyhol
derout
li
vest
het
erm oft
hepl
ant
hen
nomat
uri
tybenef
it
soraddedbonusescanbeav
ail
ed.Thepr
emi
umsf
ort
erm pl
ans
ar
ety
pical
l
ylowert
hanot
heri
nsur
ancepol
i
ciesandcanbepai
dasonesi
ngl
e
pr
emi
um oratr
egul
ari
nter
val
s.Thepol
i
cyhol
dercanav
ail
oft
axbenef
it
sby
pur
chasi
ngt
hispl
an.Ri
der
ssuchasWai
verofPr
emi
um andAcci
dent
alDeat
hcan
hel
paddt
othebenef
it
soft
het
erm pl
an.Thi
sisoneoft
hebestf
orsomeone

EndowmentPl
ans:

Endowmentpl
ansof
fert
hepol
i
cyhol
dert
hedual
benef
itofpr
otect
ionandsav
ings.
Thesepl
ansar
emostsui
tabl
efort
hosei
ndi
vi
dual
swhodonotwantt
ori
skt
hei
r
i
nvest
ment
sinmar
ket
-l
inkedr
etur
ns.Endowmentpl
anspr
ovi
deadeat
hbenef
itand
amat
uri
tybenef
it
.Incaseoft
hepol
i
cyhol
der
’sdeat
h,t
hepay
-out
,al
ongwi
th
bonusesorguar
ant
eedaddi
ti
ons,
ifany
,goest
othebenef
ici
ary
.Thebonususual
l
y
dependsont
henumberofy
ear
soft
hepol
i
cyt
ermt
hatt
hepol
i
cyhol
derhasl
i
ved.

Uni
tLi
nkedPl
ans(
ULI
P):

Uni
tli
nkedpl
ansgi
vey
out
hef
lexi
bil
i
tyt
oinv
esti
nst
ocksorbondswhi
l
eav
ail
i
ngl
i
fe
i
nsur
ance.Undert
hesepl
ansapor
ti
onoft
hepr
emi
um pai
disi
nvest
edi
nst
ocks,
the
r
etur
nsofwhi
char
epai
doutatt
het
imeofmat
uri
ty.Ther
emai
ningpor
ti
onoft
he

19
pr
emi
um i
susedt
oof
ferl
i
fecov
ert
othei
nsur
ed.ULI
Psof
fert
axbenef
it
stot
he
pol
i
cyhol
derandundercur
rentI
ndi
ani
ncomet
axl
aws;
mat
uri
tybenef
it
sofULI
Psar
e
t
axf
ree.Dependi
ngonhowt
heywi
l
lbeusedULI
Psar
eav
ail
abl
eforweal
thcr
eat
ion,
chi
l
dren’
seducat
ion,
heal
thsol
uti
onsandr
eti
rementpl
anni
ng

Pensi
onPl
ans:

Pensi
onpl
ansar
eal
soknownasr
eti
rementpl
ans.Thesel
i
fei
nsur
ancepl
ansar
ean
ef
fect
ivewayofbui
l
dingacor
pusf
ort
her
eti
rementy
ear
sandensur
ingast
eady
i
ncomeev
enwhenonehasst
oppedear
ning.Ther
ear
esev
eral
opt
ionst
oconsi
der
f
orpensi
onpl
ansi
ncl
udi
ngi
nvest
ingi
nthegov
ernment
’sNat
ional
Pensi
onScheme
andULI
Ps.Pl
ans“
wit
hli
fecov
er”and“
wit
houtl
i
fecov
er”ar
eal
soav
ail
abl
e.
Annui
ti
escanbedef
err
ed,
immedi
ate,
guar
ant
eedf
oracer
tai
nper
iodorcanal
sobe
r
ecei
vedf
orl
i
fedependi
ngont
hepol
i
cyhol
der
’spr
efer
ence.Themostpopul
ari
s
usual
l
ythedef
err
edannui
tyopt
ionwher
ethei
nsur
edbui
l
dsacor
pusbypay
ing
si
ngl
eort
imel
ypr
emi
umsov
erasetper
iod,
whi
chi
sfi
xedundert
hepol
i
cyt
erms.
Thepensi
onst
art
sassoonast
hepol
i
cyt
ermi
sov
er.

MoneyBackPl
an:

Amoneybackpol
i
cyi
samor
ecompl
exl
i
fei
nsur
ancepol
i
cyi
ncompar
isonwi
tha
t
erm pl
anorast
andar
dli
fei
nsur
ancecov
ert
hatpay
sthesum assur
edt
othei
nsur
ed
par
tyonmat
uri
ty.I
tpr
ovi
des
cer
tai
namount
scal
l
edsur
viv
albenef
it
sinaddi
ti
ont
othesum assur
edandabonus
f
rom
t
hei
nsur
ancecompanybasedoni
tsper
for
mance.

3.
4 ORI
GINOFI
NSURANCE:

Al
thoughnoti
nthepr
esentdayf
orm ofi
nsur
ance,
theconceptofsuchaphi
l
osophy
ofgr
oupi
ngt
oget
herorr
iskshar
ingdev
elopedi
nver
yanci
entt
imes.

Wecanpr
obabl
ygobackt
othe4t
hcent
urywhi
chwi
tnessedt
hepr
act
iceof
BOTTOMRYBONDSandRESPONDENTI
ABONDSi
nmar
it
imet
rade.

20
I
fatat
imeofdi
str
essi
nmi
d-ocean,
themast
eroft
hev
essel
usedt
obei
nneedof
f
und/
moneyf
orcompl
eti
onoft
hej
our
ney
,butcoul
dnotmanaget
hesameatan
i
nter
medi
arypor
tei
theronhi
sownaccountoront
heaccountoft
heowneroft
he
v
essel
,he(
mast
er)wasempower
edt
orai
sesuchf
undbypl
edgi
ngt
hev
essel
.

3.
5 HI
STORYANDDEVELOPMENTMARI
NEI
NSURANCE:

Mar
inei
stheol
destf
orm ofi
nsur
anceandcamef
ir
stont
hel
i
st.Thi
sty
peof
i
nsur
ancepr
obabl
ybegani
nNor
ther
nIt
alysomet
imedur
ingt
he12t
h&13t
hCent
ury
andgr
adual
l
ytheconceptwasr
athert
ransf
err
edt
oort
akenov
erbyt
heUni
ted
Ki
ngdom.

Dur
ingt
he13t
h/14t
hcent
ury
,theI
tal
i
anmer
chant
swentt
oU.K.andal
ong-
wit
h’t
he
mer
chandi
secar
ri
edwi
tht
hem t
het
radi
ngcust
omsi
ncl
udi
ng,
theconceptofmar
ine
i
nsur
ance.

Mar
inei
nsur
anceassuchwasnotbei
ngpr
act
icedasasepar
atespeci
ali
zedent
it
y
dur
ingt
hatt
imesi
ncei
twast
hemer
chant
swhousedt
otr
ansactmar
inei
nsur
ance
busi
nesssi
debysi
dewi
tht
hei
rgener
alt
radi
ngact
ivi
ti
es.

3.
6 HI
STORYANDDEVELOPMENTOFFI
REI
NSURANCE:

Fi
rei
nsur
ancecamesecondi
nthel
i
stofdev
elopment
.Thei
nsur
erswhohad
hi
ther
tobeendoi
ngmar
inewer
econt
empl
ati
ngaboutst
art
ingt
hef
ir
einsur
ance
busi
nessal
so.

TheGr
eatFi
reofLondoni
n1666pr
act
ical
l
ydemonst
rat
edt
henecessi
tyand
ur
gencyoff
ir
einsur
ance.

About7i
nsur
ancecompani
escamef
orwar
dtopr
ovi
def
ir
einsur
ancepr
otect
ion.But
duet
othei
ntr
oduct
ionofnewert
ypesofhazar
dsar
isi
ngoutofI
ndust
ri
alRev
olut
ion

21
oft
he19t
hcent
uryandbecauseoft
hei
ncr
easeddemandf
orsucht
ypeofi
nsur
ance,
somemor
ecompani
eshadt
ocomei
ntot
hepi
ctur
e.

TheTool
eSt
reetFi
re,
1861hadani
nfl
uencei
nimpr
ovi
ngt
hebusi
nessoff
ir
e
i
nsur
anceasi
tdemonst
rat
edt
hatcl
assi
fi
cat
ionofr
iskwasnecessar
yfort
he
soundr
ati
ngHi
stor
yandDev
elopmentLi
feI
nsur
ance

Thet
hir
dint
hel
i
stofdev
elopmenti
sthel
i
fei
nsur
ancebusi
ness.Theear
li
estpol
i
cy
ofwhi
cht
her
eisar
ecor
ddat
esbackt
o1583.

Dur
ingt
hisper
iodonl
yshor
t-
ter
m pol
i
cieswer
eusedt
obei
ssuedmeani
ngt
hatonl
y
att
hedeat
hoft
hel
i
feassur
eddur
ingt
het
erm per
iodt
hemoneywast
obepai
d.On
sur
viv
alnot
hingwaspay
abl
e.

Mor
eso,
ther
ewasnof
ixedsum-
assur
edandt
heamountpay
abl
eusedt
ovar
y
dependi
ngont
hef
undav
ail
abl
e.Li
fei
nsur
ancev
irt
ual
l
ydi
dnothav
eanysci
ent
if
ic
basi
satt
hatt
ime.

Ther
ewasnomor
tal
i
tyt
abl
ethr
oughwhi
cht
her
iskcoul
dbesci
ent
if
ical
l
yassessed.
Thel
egal
backi
ngwasal
sonott
her
eforsoundandsy
stemat
icconductofbusi
ness
Sy
stems.

3.
7 HI
STORYANDDEVELOPMENTOFACCI
DENTI
NSURANCE:

Thel
asti
nthel
i
stofdev
elopmenti
stheacci
denti
nsur
ancebusi
ness,
iti
sst
il
lan
openbr
anchi
nthesenset
hatanynewt
ypeofi
nsur
ancet
hati
snotcar
edf
orunder
mar
ine,
fir
e,andl
i
fewoul
dfal
lunderacci
dentbr
anch.

Ther
efor
e,weseeanumberofv
ari
oust
ypesofpol
i
ciescomi
ngunderacci
dent
depar
tment
.

Exampl
esar
eaper
sonal
acci
dent
,bur
glar
y,f
idel
i
ty,
wor
kmen’
scompensat
ion,
l
i
abi
l
itypol
i
cies,
engi
neer
ing,
erect
ional
lri
sk,
cashi
nsaf
eandt
ransi
t,cr
op,
cat
tl
e,

22
bond,
credi
tguar
ant
eeschemes,
mot
or,
avi
ati
onet
c.

Acci
denti
nsur
ancebasi
cal
l
yst
art
edf
rom per
sonal
acci
denti
nsur
ance.Theef
fectof
t
hei
ndust
ri
alr
evol
uti
oni
nthe19t
hcent
ury
,par
ti
cul
arl
ythei
nvent
ionofst
eam power
andr
ail
way
,wasr
esponsi
blef
ornumber
sofacci
dent
aldeat
hsandbodi
l
yinj
uri
es.

3.
8 HI
STORYANDDEVELOPMENTOFLI
FEI
NSURANCE:

Thet
hir
dint
hel
i
stofdev
elopmenti
sthel
i
fei
nsur
ancebusi
ness.Theear
li
estpol
i
cyof
whi
cht
her
eisar
ecor
ddat
esbackt
o1583.

Dur
ingt
hisper
iodonl
yshor
t-
ter
m pol
i
cieswer
eusedt
obei
ssuedmeani
ngt
hatonl
yat
t
hedeat
hoft
hel
i
feassur
eddur
ingt
het
erm per
iodt
hemoneywast
obepai
d.On
sur
viv
alnot
hingwaspay
abl
e.

Mor
eso,
ther
ewasnof
ixedsum-
assur
edandt
heamountpay
abl
eusedt
ovar
y
dependi
ngont
hef
undav
ail
abl
e.Li
fei
nsur
ancev
irt
ual
l
ydi
dnothav
eanysci
ent
if
icbasi
s
att
hatt
ime.

Ther
ewasnomor
tal
i
tyt
abl
ethr
oughwhi
cht
her
iskcoul
dbesci
ent
if
ical
l
yassessed.The
l
egal
backi
ngwasal
sonott
her
eforsoundandsy
stemat
icconductofbusi
ness.

4 OBJECTI
VESOFTHESTUDY:

23
4.
1 PRI
MARYOBJECTI
VES:

 Todet
ermi
ner
easonsbehi
ndopt
ingf
orani
nsur
ance.

 Todet
ermi
necust
omer
sbuy
ingbehav
iort
owar
dspr
ivat
einsur
ance
compani
esandt
hei
rexpect
ati
onsf
rom pr
ivat
einsur
ancecompany
.

 Todet
ermi
net
hef
eedbackonser
vicespr
ovi
dedbyanyot
heri
nsur
anceagent
.

 Tost
udyt
het
ypesofbenef
it
spr
ovi
dedbyi
nsur
anceser
vices.

 Toknowt
hev
ari
ousi
nvest
mental
ter
nat
ivest
hati
smost
lypr
efer
redbyt
he
cust
omer
s.

 Tof
indoutcr
it
eri
athatpeopl
ethi
nkaboutbef
orei
nvest
ingi
nal
i
fei
nsur
ance
pol
i
cy.

 Tof
indoutt
hel
evel
ofawar
enessofl
i
fei
nsur
anceamongpeopl
e.

4.
2 SECOUNDARYOBJECTI
VES:

 Toknowwhet
hert
heser
vicesof
fer
edbyt
hecompanyhassat
isf
iedt
heneeds
ofal
lgr
oupsofpeopl
e.

 Tof
indoutt
hebenef
it
spr
efer
redbyt
hecust
omer
s.

5 RESEARCHDESI
GNOFTHESTUDY:
Mar ket
ingr
esearchcanbedefi
nedasthesyst
emat
icdesi
gn,
coll
ecti
on,anal
ysi
s,and
reporti
ngofthedataandf
indi
ngrel
evantt
oaspeci
fi
cmarket
ingsit
uati
onfaci
ngthe
company .

Resear
chdesi
gni
sthebasi
cpl
anwhichgui
destheresearcher
sinthecol
lect
ionand
anal
ysi
sofdat
arequi
redf
orpr
act
ici
ngther
esearchproduct.I
nfactt
heresearch

24
designistheconceptualst
ructur
ewi t
hwhichresearchi
sconducted.Itconsi
stthe
bluepri
ntforthecoll
ecti
on,measurementandanal y
sisofthedat
at hatwasfoll
owed
completingthestudytoensurethatstudyi
srel
evanttotheprobl
em andwi l
lfol
l
ow
thepredeter
mi nedandsetdata.

Themai ndataf
eat
ureof“Resear
chDesign”i
sthatitspecif
iespopulat
iontobe
studied.Themainthem oft
hechapteri
stoknowthesour ceofthedatat he
researcherhascol
l
ected.Dataar
erawfactsofobservati
on,typi
cal
lyaboutphy
sical
phenomenon.

Descr
ipt
iver
esear
ch:

Ther
esear
chdesi
gnsel
ect
edf
ort
hisr
esear
chi
sdescr
ipt
iver
esear
chdesi
gn.

Toknowaboutt
hev
iewsaboutt
hecompanyandt
oassesst
othei
rvi
ews.

METHODOLOGY:

Col
l
ect
ionoft
hedat
afort
hest
udycanbedr
awnf
rom f
oll
owi
ngmet
hodsf
orst
udy
.

Sour
cesoft
hedat
a:

Afterdeter
miningtheobj ectiv
esofstudyandr esear
chdesign,t
henexti
mpor t
ant
stepisdataisstepcollectionmethod.Theinformationhastobecol
lect
edfrom t
he
retai
ler
s.Duringtheprocessoft hestudythedat ai
scollect
edfr
om t
hetarget
segmentt hatiscustomer s,deal
ersanddist
ri
but or
swi t
hhelpofast
ructur
edwell
designedquest i
onnair
e.

Dat
aiscol
lect
edf
rom

•Pr
imar
ydat
a

•Secondar
ydat
a

Pr
imar
ydat
a

I
twascollect
edthr
oughquesti
onnai
reprepar
edcontai
nsr el
evantquest
ionsthatar
e
bot
hcloseendedandopened.I
ndivi
dual
andgr oupi
nter
viewsalsoundertakenwith
di
ff
erenceconsumers,

Ihav
ecollect
edmainl
ythePr
imar
yDat
aformyst
udybyut
il
izi
ngt
hequest
ionnai
re
andint
erv
iewmethods.

Secondar
ydat
a

Thesedat
aar
ecol
l
ect
edf
rom publ
i
shedsour
cessuchasMagazi
nes,
NEWSpaper
s,

25
sev
eral
books,
andal
sof
rom t
hehel
pofwebsi
tewww.
hdf
csl
.com.

(
A)Sampl
ingpl
anoft
hest
udy
:

Sampl
esi
ze:

Sampl esizer
eferstonumberofel
ementstobei ncludedinthestudysev eral
quali
tati
vefactor
sshouldal
sobetakenintoconsiderati
onwhendet erminingt he
sampl esi
ze.Theseincl
udethenat
ureofresearch,numberofv ari
able,andnat ureof
analysi
s,samplesizeusedi
nsimil
arst
udiesincidencerates,completi
onr ates,and
resourcesconstr
aint
s.

Dur
ingt
hepr
ocessoft
hest
udy
,sur
veyhasbeenconduct
edon100r
espondent
s.

Sampl
ingmet
hod:

Theresear
cherhadchoicebet
weenpr
obabi
l
ityandnonprobabi
li
tysampli
ng
methods.I
nthisst
udyasi mpl
enonpr
obabi
l
itymethodnamelyconveni
ence
sampli
ngwasadopt ed.

NONPROBABI
LITYMETHOD–CONVENI
ENCESAMPLI
NGMETHOD

5.
1 PERI
ODOFSTUDY:

Theperi
odofst
udyst
art
sfom 1stJul
r y2020t
o31Jul
y2020whi
chi
sa30day
s
i
nter
nshi
p.

26
6 DATAANALYSI
S:

27
28
29
30
6.
1 FI
NDI
NGS

I
trev
eal
sthat7.
1%ofr
espondent
sbel
ongt
o25t
o35agegr
oupand89%ar
e

bel
ongt
obel
ow25ages.

•Thesur
veyshowst
hatmaxi
mum 7%oft
her
espondent
sar
einwor
kinggov
t.

sect
or.

•Outof30r
espondent
s67%oft
her
espondent
swer
ewel
lknownaboutshr
iam

i
nvest
mentopt
ion.

•29%oft
hepeopl
ehav
ingai
nsur
ancepol
i
cy.

•46%ofr
espondent
sar
eindent
edt
oinv
estont
hei
rear
ningonl
y.

•21%ofr espondent
sar
epr
efer
redl
ongt
ermi
nvest
mentt
ermi
nShr
ir
am l
i
fe
i
nsurance.

•14%oft
her
espondent
spr
efert
hebuy
ingpr
ocessoft
hecompany
/agent

appr
oachi
ngt
hecust
omerwhi
l
e44%pr
eferv
ice-
ver
sa.

•21%oft
her
espondent
sper
cept
ionaboutShr
ir
am l
i
fei
nsur
ancei
spr
ofessi
onal
,
and7%

hast
oldt
hati
tisbei
ngaggr
essi
veand32%ar
eExcel
l
ent
.

•77%oft her
espondent
sar
esat
isf
iedwi
tht
hepol
i
ciesof
fer
edi
nShr
ir
am l
i
fe
i
nsurance.

•39%oft
her
espondent
susi
ngAdv
isorser
vicewhi
cht
heser
viceof
fer
edbyt
he

Shr
ir
am l
i
fei
nsur
ance.

•55%oft
her
espondent
sper
cei
vet
hebenef
it
sofi
nsur
anceasacov
erf
orf
utur
e

uncer
tai
nit
y.

•82%ofr espondent
sar
esat
isf
iedwi
thcur
rentpol
i
cyof
fer
edbyShr
ir
am l
i
fe
i
nsurance.

31
SUGGESTI
ONS:

I
nCHENNAImostoft
hepeopl
ear
ewor
kingi
nGov
ernmentandBusi
ness
sect
or

andtheydon’
thav
emuchf
inanci
alpl
anni
ng.Anot
heri
mpor
tantpoi
nti
stheyhav
e
good

compensat
ionpackage.Sot
hecompanyshoul
dbr
ingmor
einnov
ati
veandshoul
d
car
ry

outmor
epr
omot
ional
act
ivi
ti
esi
ngov
ernmentf
iel
ds.Bet
terpr
omot
ionofuni
tli
nked

pl
anscangener
atemor
esal
est
othecompany
.

SHRI
RAM LI
FEI
NSURANCECOMPANY’
suni
tli
nkedi
nsur
ancepl
ans

canef
fect
ivel
ymeett
her
equi
rement
soft
hecust
omer
s,becauseuni
tli
nkedpl
ans
are

dir
ect
lyr
elat
edt
othemar
ket
,sot
hecust
omer
scancr
eat
esmor
eweal
tht
hrough
fundand

theycanenj
oyt
het
axbenef
it
,andal
sot
hei
nsur
ancecov
er.Thepr
essur
eont
he
sales

t
eam woul
dbel
essonedbyi
ncr
easi
ngt
heawar
enessamongt
hepeopl
eaboutt
he

cr
edi
bil
i
tyoft
hecompani
esandneedf
orcapi
tal
i
zingont
hev
ari
ousi
nsur
ancepl
ans

of
fer
edbyt
hepr
ivat
eli
fei
nsur
ancecompani
es.

•Ast
heawar
enessofi
nsur
ancei
slessamongt
hepeopl
e,i
tsawar
enessshoul
dbe

cr
eat
ingamongt
hepeopl
ebyconduct
ingst
ageshowsandexpl
aini
ngi
tsneedand

i
mpor
tance.

•I
nsur
anceshoul
dnotbeconsi
der
edonl
yasar
iskcov
erel
ementbutal
soasal
ong

t
ermi
nvest
ment

•I
tisal
sor
ecommendedt
oconcent
rat
etoonl
oweri
ncomegr
ouppeopl
e.

•Mor
eef
for
tsshoul
dbet
akenbyt
hecompany
’sf
inanci
alconsul
tant
stoconv
ert

t
hel
eadsi
ntopol
i
cyhol
derofShr
ir
am l
i
fei
nsur
ance.

32
•Fol
l
owupshoul
dbet
akenandcust
omerr
elat
ionshoul
dbemai
ntai
nedbyt
he

i
nvi
ti
ngt
heexi
sti
ngcust
omer
stot
hesemi
nar
sconduct
edwhenl
aunchi
nganew

pr
oductoranychangesar
emadet
othepr
oduct
sorr
ulest
oret
aint
hem.

•Comi
ngwi
thnewpr
omot
ional
act
ivi
ti
esl
i
kegi
vi
ngnewadv
ert
isement
s,keepi
ng

st
all
s,conduct
ingsemi
nar
sincompani
es,
andgi
vi
ngadst
hroughSMScanbe

donebyShr
ir
am l
i
fei
nsur
ance.t
ocr
eat
eawar
enessamong

cust
omer
s

7 SWOTANALYSI
SOFLI
FEI
NSURANCE:

7.
1 STRENGHTS:

 St
rongandwel
lspr
eadnet
wor
kqual
i
fiedi
nter
medi
ari
esandsal
esper
son.

 I
nter
nat
ional
exper
ti
seofSanl
am gr
oups

 Morethan75,000loy
alanddedi
cat
edagent
sandhasacust
omerbaseof30l
acs
chi
tsubscr
ibersandinv
estor
s.

 St
rongcapi
tal
andr
eser
vebase.

 Thecompanypr
ovi
descust
omerser
viceoft
hehi
ghestor
der
.

 Hugebasketofpr
oductr
angewhi
char
esui
tabl
eforal
lageandi
ncomegr
oups.

 Lar
gepool
oft
echni
cal
l
yski
l
ledmanpowerwi
thi
ndept
hknowl
edgeand

33
 under
standi
ngoft
hemar
ket
.

 Thecompanyalsoprov
idesi
nnov
ati
vepr
oduct
stocat
ert
odi
ff
erentneedsof
di
ff
erentcust
omers.

7.
2 WEAKNESS:
 Heav
ymanagementexpensesandadmi
nist
rat
ivecost
s.

 Lowcust
omerconf
idenceonpr
ivat
epl
ayer
s.

 Lowkeyi
tinf
rast
ruct
ureascompar
edt
obi
gbr
ands

 Lowmar
ket
ingandbr
andpr
esenceascompar
edt
oot
hercompet
it
ors

 I
nsur
ancecompanyhav
epoori
magewheni
tcomest
opay
mentofdues

7.
3 OPPORTUNI
TIES:
 Gr
owi
ngr
ural
mar
ket

 Ear
ningur
bany
out
hlooki
ngf
ori
nvest
ment
s

 Cr
osssel
l
ingt
hroughf
inanci
alser
vicessuchasbanki
ng

7.
4 THREATS:

 St
ri
ngenteconomi
cmeasur
esbygov
ernmentandRBI

 Ent
ryofnewNBFCsi
nthesect
or

8 COMPETI
TORS:
1)BAJAJALLI
ANZ

2)SAHARALI
FEI
NSURANCE

3)
RELI
ANCELI
FEI
NSURANCE

34
9 CONCLUSI
ON:
Ourexhausti
veresear
chinthefi
eldofLif
eInsurancethrewupsomei nt
erest
ing
tr
endswhichcanbeseeni ntheaboveanalysi
s.Agener al
impressi
onthatwe
gather
edduringDatacol
lect
ionwastheimmenseawar enessandknowledgeamong
peopleaboutvar
iouscompaniesandthei
rinsuranceproduct
s.

Peopl earebegi nni

ngt olookbeyondLI Cf ortheirinsuranceneedsandar ewill
ingto
tr
ustpr i
vatepl ayer
swi ththei
rhardearnedmoney .Peopl eingeneralhavebeen
i
mpr essedbyt hemar ketingandadv er
tisi
ngcampai gnsofinsurancecompanies.A
hi
ghpenet r
ationofpr i
nt,radi
oandTel ev i
sionadcampai gnsovertheyearsis
beginningtohav ei
tsimpactnow.Anot herhear teningtrendwasi ntermsofpeople
vi
ewi nginsuranceasat axsav i
ngandi nvestmenti nstr
umentasmuchasa
protecti
veone.Av eryhighnumberofr espondent shav eopt edfori
nsuranceforsuch
purposesandi tshowshowi nsurancecompani eshav ebeensuccessf ultoatt
ract
publicmoneyi nrecenttimes.

Thegeneral
sati
sfact
ionlevel
samongpubl i
cwithregar
dst opolicyandagent
ssti
ll
requir
esi
mprovement.Buttherei
nli
estheopport
unityf
orar elat
ivenewcomerli
ke
Lif
eInsur
anceCompanyLt d.LIChasneverbeenknownf orpromptservi
ceor
customeror
ient
edmet hodsandLifecanbuil
donthesefactors.

35