A

Project report
On

“Evaluation of Insurance sector through comparison of

AVIVA Life Insurance with Life Insurance Corporation
(LIC)”

SUBMITTED TO: SUBMITTED BY:

Dr. UDITA TANEJA CHANDAN SINGH (73)

NARESH SANDHU (75)

JYOTI NAGAR (79)

ASHISH SHANDILYA (81)

PRASHANT BEDWAL (94)

KHUSHBOO PANDITA (97)

1
 INDEX

Serial No. Particulars Page No.

1 Introduction to Insurance 3
2. Company profile 9
3. Various life insurance plans of
AVIVA 11
4. Various plans of LIC 13
5. Objectives 18
6. Research Methodology 19
7. Data Analysis 20
8 Findings 29
9. Suggestions 31
10. Limitations 33
11. Conclusion 34
12. Bibliography 35
13. Annexure 36

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INTRODUCTION
The business of insurance is related to the protection of the economic values of assets. Every
asset has a value. The asset would have been created through the efforts of the owner. The
asset is valuable to the owner, because he expects to get some benefits from it. It is a benefit
because it meets some of his needs. The benefit may be an income or in some other form. In
the case of a factory or a cow, the product generated by it is sold and income is generated. In
the case of a motor car, it provides comfort and convenience in transportation. There is no
direct income. Both are assets and provide benefits.

Every asset is expected to last for a certain period of time during which it will provide the
benefits. After that, the benefit may not be available. There is a life – time for a machine in a
factory or a cow or a motor car. None of them will last forever. The owner is aware of this
and he can so manage his affairs that by the end of that period or life – time, a substitute is
made available. Thus, he makes sure that the benefit is not lost. However, the asset may get
lost earlier. An accident or some other unfortunate event may destroy it or make it incapable
of giving the benefits. An epidemic may kill the cow suddenly. In that case, the owner and
those enjoying the benefits there from would be deprived of the benefits. The planned
substitute would not have been ready. There is an adverse or unpleasant situation. Insurance
is a mechanism that helps to reduce the effects of such adverse situations. It promises to pay
to the owner or beneficiary of the asset, a certain sum if the loss occurs.

BRIEF HISTORY OF INSURANCE

Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders,
travelling treacherous river rapids would distribute their goods among several vessels, so that
the loss from any one vessel being lost would be partial and shared, and not total. The
Babylonian traders would agree to pay additional sums to lenders, as the price for writing off
the loans, in case of the shipment being stolen. The inhabitants of Rhodes adopted the
principle of ‘general average’, whereby, if goods are shipped together, the owners would bear
the losses in proportion, if loss occurs, due to jettisoning during distress. The Greeks had
started benevolent societies in the late 7th century AD, to take care of the funeral and families
of members who died. The friendly societies of England were similarly constituted. The
great Fire of London in 1666, in which more than 13000 houses were lost, gave a boost to
insurance and the first fire insurance company, called the Fire Office, was started in 1680.

The origins of insurance business as in vogue at present, is traced to the Lloyd’s Coffee
House in London. Traders, who used to gather in the Lloyd’s coffee house in London,
agreed to share the losses to their goods while being carried by ships. The losses used to
occur because of pirates who robbed on the high seas or because of bad weather spoiling the
goods or sinking the ship.
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In India, insurance began in 1818 with life insurance being transacted by an English
company, the Oriental Life Insurance Co. Ltd. The first Indian insurance company was the
Bombay Mutual Assurance Society Ltd, formed in 1870 in Mumbai. This was followed by
the Bharat Insurance Co in 1896 in Delhi, the Empire of India in 1897 in Mumbai, the United
India in Chennai, the National, the National Indian and the Hindustan Cooperative in
Kolkata.

Later, were established the Cooperative Assurance in Lahore, the Bombay Life (originally
called the Swadeshi Life), the Indian Mercantile, the New India and the Jupiter in Mumbai
and the Lakshmi in New Delhi. These were all Indian companies started as a result of the
swadeshi movement in the early 1900s. By the year 1956, when the life insurance business
was nationalised and the Life Insurance Corporation of India (LIC) was formed on 1st
September 1956, there were 170 companies and 75 provident fund societies transacting life
insurance in India. After the amendments to the relevant laws in 1999, the L.I.C. did not have
the exclusive privilege of doing life insurance business in India. By 31.8.2007, sixteen new
life insurers had been registered and were transacting life insurance business in India.

PURPOSE & NEED OF INSURANCE

 Assets are insured, because they are likely to be destroyed or made non – functional
before the expected life time, through accidental occurrences. Such possible
occurrences are called perils. Fire, floods, breakdowns, lightning, earthquakes, etc,
are perils. If such perils can cause damage to the asset, we say that the asset is
exposed to that risk. Perils are the events. Risks are the consequential losses or
damages. The risk to a owner of a building, because of the peril of an earthquake, may
be a few lakhs or a few crores of rupees, depending on the cost of the building, the
contents in it and the extent of damage.
 Insurance is relevant only if there are uncertainties. If there is no uncertainty
about the occurrence of an event, it cannot be insured against.
 Insurance does not protect the asset. It does not prevent its loss due to the peril. The
peril cannot be avoided through insurance. The risk can sometimes be avoided,
through better safety and damage control measures. Insurance only tries to reduce the
impact of the risk on the owner of the asset and those who depend on that asset. They
are the ones who benefit from the asset and therefore, would lose, when the asset is
damaged. Insurance only compensates for the losses – and that too, not fully.
 Only economic consequences can be insured. If the loss is not financial, insurance
may not be possible. Examples of non – economic losses are love and affection of
parents, leadership of managers, sentimental attachments to family heirlooms,
innovative and creative abilities, etc.

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CLASSIFICATION OF RISKS
1. Critical Risks: It is based on the extent of the damage likely to be caused. Critical or
Catastrophic risks are those which may lead to the bankruptcy of the owner. It
would happen if the loss is total, like in a tsunami, wiping out everything. It can also
happen if the deceased person was heavily in debt.
2. Financial & Non – Financial Risks: Insurance is concerned with the financial status
of the risk.
3. Dynamic & Static Risks: Dynamic risks are caused by perils which have national
consequence, like inflation, calamities, technology, political upheavals, etc. Static
risks are caused by perils which have no consequence on the national economy, like a
fire or theft or misappropriation. Dynamic risks are less likely to occur than static
risks, but are also less predictable. Static risks are more suited to management through
insurance.
4. Fundamental & Particular Risks: Fundamental risks are those that affect large
populations while Particular risks affect only specific persons. A train crash is a
fundamental risk while a theft is a particular risk. Life Insurance business deals with
particular risks, but fundamental risks affect the life insurance company’s experience,
as many persons will be affected at the same time, when there is an earthquake, flood
or riot.
5. Pure & Speculative Risks: The latter are in the nature of betting or gambling where
the risk is, to some extent, under the control of the person concerned, while a pure risk
is not so. It is more in the nature of an Act of God. Insurance deals with only pure
risks and not speculative risks.

HOW INSURANCE WORKS

The mechanism of insurance is very simple. People who are exposed to the same risks come
together and agree that, if any one of them suffers a loss, the others will share the loss and
make good to the person who lost. All people who send goods by ships are exposed to the
same risks, which are related to water damage, sinking of the vessel, piracy, etc. Those owing
factories are not exposed to these risks, but they are exposed to different kind of risks like
fire, hailstorms, earthquakes, lightning, burglary, etc. Like this, different kinds of risks can be
identified and separate groups made, including those exposed to such risks. By this method,
the heavy loss that anyone of them in the group may suffer is divided into bearable small
losses by all the others in the group. In other words, the risk is spread among the community
and the likely big impact on one is reduced to smaller manageable impacts on all. Insurance
helps to spread the costs and risks.

There are certain principles, which make it possible for insurance to remain a preferred and
fair arrangement. The first is that it is difficult for anyone individual to bear the consequences
of the risks that he is exposed to. It will become bearable when the community shares the
burden. The second is that the peril should occur in accidental manner. Nobody should be in a
position to make the risk happen. In other words, none in the group should set fire to his
assets and ask others to share the loss. This would be taking unfair advantage of an
5
arrangement put into place to protect people from the accidental risk they are exposed to. The
occurrence has to be random, accidental, and not the deliberate creation of the insured person.

The manner in which the loss is to be shared can be determined before – hand. It can be equal
among all. It can also be proportional to the risk that each person is exposed to. The share
(that each member of the community has to pay) could be collected from the members after
the loss has occurred or the likely shares may be collected in advance, at the time of
admission to the group. Insurance companies collect in advance and create a fund from which
the losses are paid.

The collection to be made from each person in advance is determined on the basis of
assumptions. While it may not be possible to tell before – hand which person will suffer, it
may be possible to tell, on the basis of past experiences, how many persons, on an average,
may suffer losses.

THE HUMAN ASSET

A human being is a income generating asset. One’s income generating ability depends on
one’s skills, (manual, professional, problem solving, entrepreneurial, etc). These are the
assets. The value of the asset can be measured by considering the income that is generated by
the person concerned. The concept of Human Life Values provides scientific ways to
determine the asset value of the human life and therefore, the amount of life insurance
required. These techniques, like other techniques related to selling, will have to be learnt
from the job.

These assets also can be lost unexpectedly early death or through sickness and disabilities
caused by accidents. Accidents may or may not happen. Death will happen, but the timing
is uncertain. If it happens around the time of one’s retirement, when it could be expected that
the income will normally cease, the person concerned could have made some other
arrangements to meet the continuing needs. But if it happens much earlier when the alternate
arrangements are not in place, there can be losses to the person and dependents. Those
depend on the income are helped to overcome their difficulties, by insurance.

Living too long can be as much a problem as dying too young. Both are risks which need to
be safeguarded against. Insurance take care.

Thus, the risks in the case of a human being are related to:

 Early death
 Living too long
 Disabilities
 Sickness
 Unemployment

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THE BUSINESS OF INSURANCE
Insurance companies are called insurers. The business of insurance is to

1. Bring together persons with common insurance interest (sharing the same risks).
2. Collect the share or contribution (called premium) from all of them.
3. Pay out compensations (called claims) to those who suffer from the risks.

In India, insurance is classified primarily as life and non – life or general. Life insurance
includes all risk related to lives of human beings and general insurance covers the rest.
General insurance has three classifications:

1. Fire (dealing with all fire related risks)

2. Marine (dealing with all transport related risks and ships)
3. Miscellaneous (dealing with all others like liability, fidelity, motor, crop, engineering,
construction, aviation, personal accident, etc)

Personal accident and sickness insurance, which are related to human beings, is classified as
‘non – life’ in India, but is classified as ‘life’, in many other countries. What is ‘non – life’ in
India is termed ‘Property and Casualty’ in some other countries.

In India, the IRDA (Insurance Regulatory and development Authority) has, in 2005, issued
regulations enabling micro – insurance (broadly meaning insurance for small Sums Assured,
like 5 to 50 thousands) to be done by both life and general insurers on the basis of mutual tie
– ups. A policy may be issued by a issued by a life insurer covering both life and non – life
risks, but premium on account of the non – life business will be passed on to a general insurer
and the claim amount collected from the latter.

The business of insurance is one of sharing. It spreads losses of an individual over the group
of individuals who are exposed to similar risks. People who suffer loss get relief because at
least part of their loss is made good. People who do not suffer loss are relieved because they
were spared the loss.

ADVANTAGES OF LIFE INSURANCE

1. In the event of death, the settlement is easy. The heirs can collect the moneys quicker,
because of the facility of nomination and assignment. The facility of nomination is
now available for some bank accounts, provident fund, etc.
2. There is a certain amount of compulsion to go through the plan of savings. In other
forms, if one changes the original plan of savings, there is no loss. In insurance, there
is a loss.
3. Creditors cannot claim the life insurance moneys. They can be protected against
attachments by courts.
4. There are tax benefits, both in income tax and in capital gains.
5. Marketability and liquidity are better. A life insurance policy is property and can be
transferred or mortgaged. Loans can be raised against the policy.
6. It is possible to protect a life insurance policy from being attached by debtors. The
beneficiaries’ interests will remain secure.

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OBJECTIVES FOR RESEARCH
The project had been undertaken with an objective to understand “the customer awareness
about Insurance”. The objective of the study also included identifying the determinant
purchase factors, the customer segments and the sources of information they rely on. The
existing positioning of AVIVA Life Insurance and the perceptions among different
segments were also covered under the study. The brand loyalty and switching were also
studied.

Research Questions

I. What is the perception of people towards AVIVA life insurance?

II. What are different factors that influence the customer when she/he buys an insurance
policy?
III. Who are the major Influencers in the purchase decision of insurance policy?

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LITERATURE REVIEW

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Aviva India is a joint venture between one of the country’s oldest and largest groups, Dabur,
and Aviva plc, the UK's largest insurance group, whose association with India dates back to
1834.

Our vision is to be amongst India’s leading life insurers with a quality business model,
focused on sustainable growth. We seek to build a robust product portfolio meeting all
customer lifecycle needs related to – Savings, Retirement, Investments and Protection.

With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), we have
initiated and pioneered many innovative sales approaches, including the concept of
Bancassurance and Financial Health Check services. We are among the first companies to
introduce the contemporary unit-linked products.

A seasoned team of fund managers make our fund management one of the key differentiators.
With a wide distribution network of 195 branches and close to 40 Bancassurance
partnerships, we are spread across nearly 3,000 towns and cities in India.

Keeping with our commitment of social responsibility, we have been successful in reaching
out to the underprivileged strata through our Micro insurance initiatives.

FACT SHEET ABOUT AVIVA

JV partner: Dabur (74% stake)

Foreign partner: Aviva plc (26% stake). One of the world's top Insurance groups and the
biggest in the UK. It is one of the leading providers of life and pensions products to Europe.
Aviva has a 50 million-customer base worldwide with £352 billion assets under
management.

Managing Director & Chief Executive Officer: Mr. TR Ramachandran

Paid up Capital: Rs 1,888 crores

Locations: 195 branches, close to 3,000 locations

Bank partners: ABN Amro Bank, The Lakshmi Vilas Bank Ltd, Punjab & Sind Bank,
IndusInd Bank, Bank of Rajasthan and more than 30 Cooperative Banks and Regional Rural
Banks.

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VARIOUS LIFE INSURANCE PLANS BY AVIVA

1. CHILD - Aviva New Young Scholar

Aviva New Young Scholar is a comprehensive plan that enables you to secure your child’s
future in any eventuality through:

- Attractive returns, enhanced by loyalty additions every year starting end of 5th year
and maturity addition to build the desired corpus of funds on maturity of the policy
- All future premiums being waived off and invested as a lump sum amount in to the
funds, so the policy continues even in the unfortunate event of the parent’s death,
disability or on contracting a critical illness, while the Sum Assured is paid out
immediately
- Provision of a regular income for the minor child, in the event of parent’s death
- Systematic Transfer Plan for safe entry and safer exit into equities
- Option to minimize the effect of inflation through Indexation

2. SAVINGS – Aviva freedom life plan

Freedom Life Plan allows you to choose the proportion of savings and protection and change
it, in line with your changing needs, with the option to pay premiums for as few as 3 years,
through:

- Option to reduce premium and increase / decrease Life Cover (Sum Assured)
- Option to cover husband and wife under the same policy
- Select from three riders – Accidental Death and Dismemberment Rider
(AD&D) , Comprehensive Health Benefit (CHB) Rider Hospital Cash Benefit Rider
(HCB) Aviva Payor Plus Rider
- Indexation to protect savings & protection against inflation
- Limited premium paying term(PPT) including 3 & 5 years, with an option to
increase the PPT (if PPT>=10)

3. Retirement – Aviva new pension plus

Aviva New Pension Plus is a best-in-class plan that helps you fund your post-retirement years
:

- Attractive returns enhanced by Loyalty Additions during the policy term and
Maturity Addition
- Opportunity to invest in high growth sectors such as PSU, Infrastructure, in addition
to the Index-II fund
- Minimize the risk of market volatility with investment options such as AAA or STP
- Option to minimize the effect of inflation through Indexation

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 4. PROTECTION – Aviva life shield plus

Aviva LifeShield plus provides comprehensive protection for your family at a nominal cost
through:

- Payment of Life Cover (Sum Assured) to your family in the event of your death,
with a provision of double the Life Cover in the case of an accidental death.
- Immediate payment of the Life Cover in the case of critical illness or permanent
total disability, while life cover continues till the policy term
- Most competitive rates

5. HEALTH – Aviva health plus

Aviva Health Plus is a comprehensive health cum savings plan that covers you against death
and ill health, while guaranteeing the return of a part of the premium on maturity through:

- Provision of a Life Cover (Sum Assured) on death and disability

- Protection against 18 critical illnesses
- A combined benefit of more than Rs 21 lakh, in case all health benefits are claimed
- Extended death and disability cover for 5 years after the health benefits cease
- Guaranteed maturity benefit on the date of maturity, even if all health benefits are
claimed.

6. RURAL – Aviva Grameen Suraksha

Aviva Grameen Suraksha is an ideal low cost solution to help you protect your loved ones
through:

- Payment of Sum Assured to your family in the event of your death

- Premium payment for 2 years and benefits for full the policy term

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Various Plans offered by LIC are as follows:

Endowment Assurance Plans

1. Jeevan Amrit: This plan is designed for a higher cover at a lower cost. In this plan
premium payment is limited to 3 or 4 or 5 years and the premium payable during the first
year is higher than the premiums payable in subsequent years.

2. New Janaraksha Plan: Is an Endowment Assurance plan that provides financial

protection against death throughout the term of plan. It pays the maturity amount on survival
to the end of the term.

3. Jeevan Mitra (Double Cover Endowment Plan): Is an endowment plan which takes care
of the financial needs even if death of the policyholder for the whole term of the plan.

4. Jeevan Mitra (Triple Cover Endowment Plan): Is an endowment plan where thrice the
Sum Assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon
the death of the life assured.

5. The Endowment Assurance Policy: This policy has a provisions for the family of the
Life Assured in event of his early death and also assures a lump sum at a desired age.

6. The Endowment Assurance Policy-Limited Payment: In this policy the payment of

premium can be limited either to a single payment or to a term shorter than the policy.

Children Plans

1. Jeevan Anurag: Is plan designed for the children educational requirements . This plan can
be taken on the parent’s life. The basic sum assured is given immediately on the death of the
life assured during the term of the policy.

2. Jeevan Kishore: Is a plan which can be availed by the parent or grand parents of the
children. It is an endowment assurance plan for children of less than 12 years of age.

3. Jeevan Chhaya: It is a plan where financial protection is given against death during the
term of the plan. It is an Endowment Assurance plan. Besides this benefit one-fourth of Sum
Assured is payable at the end of each of last four years of policy term irrespective if the life
assured dies or survives the duration of the policy.

4. Komal Jeevan: Is a Money Back Plan which can be bought by the parent or grand parent
for their child from the age of 0-10years. This plan gives financial protection against death
during the duration of the plan with periodic payments on survival at specified durations.

5. Child Future Plan: A policy where the future needs like education, marriage and other
requirements are taken care of. This plan provides a benefit which not only takes care of the
risk cover of the child during the policy but also after 7 years of the policy being expired.
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6. Child Career Plan: A plan to meet the educational and other needs of the child. It
provides the risk cover on the life of child during the policy term as well as 7 years after the
policy has expired. There are also Survival benefits given to the life assured at the end of a
specific duration.

7. Child Fortune Plan: Is a unit linked plan which offers long term capital appreciation.

8. Marriage Endowment Or Educational Annuity Plan: This is an Endowment Assurance

plan that provides for benefits on or from the selected maturity date to meet the
Marriage/Educational expenses of the named child.

Money Back Plan

1. Bima Bachat: Is a money-back policy which offers financial security and assurance to the
policy holder and his family. The policy holder has to pay only one premium.

2. Money Back-20 years: Is an endowment plan where periodic payments of partial survival
benefits are paid during the term of the policy till the policy holder is alive.As the policy
name goes this plan 20% of the sum assured is payable after 5,10,15 years and the balance
40% accrued bonus is payable at the 20th year.

3. Money Back 25 years: Is the same as the above plan only in this plan the 40% accrued
bonus is payable at the 25th year.

Pension plans

1. New Jeevan Dhara - I: is a Deferred Annuity plans that allows the policyholder to make
provision for regular income after the selected term.
2. New Jeevan Suraksha - I: Is a deferred annuity plan.
3. Jeevan Nidhi: Is a deferred annuity plan with profits.
4. Jeevan Akshay - VI: By paying a lump sum amount this immediate annuity plan can be
bought.

Unit Plans

1. Child Fortune Plus: Is a plan for children and to meet their educational needs. Its a unit
linked plan with long term capital appreciation.

2. Fortune Plus: It is a unit linked assurance plan where premium payment term (PPT) is 5
years and the premium payable in the first year will be 50% of total premium payable under
the policy.

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3. Market Plus: Is a unit linked pension plan where after a specific period the pension is
paid.

4. Money Plus - I: Is a unit linked Endowment plan which has investment plus insurance
during the term and you can pay regular premiums.

5. Profit Plus: It is a unit linked Endowment plan where the premium payment term (PPT) is
limited to single lump sum, or uniformly over 3, 4 or 5 years.

Whole Life Plans

1. Jeevan Anand: Is a combination of two plans- Endowment Assurance and Whole Life
plan.

2. Jeevan Tarang: This is a with-profits whole of life plan which provides for annual
survival benefit at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period.

3. The Whole Life Policy: Is a plan mainly to provide for payment of sum assured plus
bonuses on the death of the policyholder.

Golden Jubliee Plan

New Bima Gold: Where the premiums are paid back during the policy term in installments ,
besides that life insurance cover is given during the also at the extended term of the plan.

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 MAJOR PLAYERS OF INDIA IN INSURANCE

Reliance Life Insurance is a part of the Reliance group. It is one of the partners of Reliance
Capital Ltd which is a Anil Dhirubhai Ambani Group. Reliance Capital is one India's most
dominant private sector financial services companies. They offer insurance products which
help you with savings as well as give you protection.

Canara HSBC Life is a joint venture of Canara Bank, HSBC Insurance (Asia pacific) &
Oriental bank of Commerce. The Company got its approval from IRDA in June 2008 and
from that commencing its business. They have more than 4100 branches all over India.

DLF pramerica Life Insurance Company Ltd. is a joint venture between DLF Limited &
Prudential International Insurance Holdings Limited. DLF Pramerica believes in delivering a
secure & enrich life to there customers.

MetLife One of the fastest growing insurance company in India is MetLife. The company
started its operations in between 2000-2001. They have a range of various products to offer.

ICICI Prudential ICICI Bank with Prudential plc, both well known & strong financial
institutions came together in December 2000 to form an insurance company - ICICI
Prudential Life Insurance.

Max New York Life Max India’s leading multi business corporation & New York Life
joined there hands in 2000.The company started there operations in 2001. The company is
involved in Life & health products.

Bajaj Allianz Bajaj who are into iron & steel, finance, insurance & etc and Allianz who
provides financial services when came together they formed Bajaj Allianz Life Insurance
Company.

Bharti AXA Bharti AXA Life Insurance is a joint venture between Bharti & AXA. The
company started its functionality in December 2006 and they always believe to be a strong
financial institute

HDFC Standard Life HDFC Standard Life Insurance is a joint venture between Housing
Development Finance Corporation Limited & a Group of Standard Life Plc.The Company
started commencing its business in December 2000.

AEGON Religare AEGON Religare Life Insurance Company Ltd is a joint venture with
AEGON, Religare and Bennett, Coleman & Company a part of Times Group. AEGON
Religare Life Insurance company was launched in July 2008.

Kotak Mahindra A joint venture of Kotak Mahindra group & Old Mutual plc is known as
Kotak Mahindra Old Mutual Funds. The Company started commencing its business in 2001.
The company aim is to help customers in making there financial decisions.

Future Generali Life Future Generali is a joint venture between Future Group of India &
Italy based Generali Group.Future Generali in India is into both Life & Non Life businesses
in India. The company wants to provide a financial security to all.

16
SBI Life SBI Life Insurance Company Limited is a joint venture between State Bank of India
and BNP Paribas Assurance. It is present in more than 41 countries across the world. SBI
Life offers a variety of plans in life insurance and pension.

TATA AIG The TATA Group and American International Group Inc together formed Tata
AIG Life Insurance Co. Ltd.Tata Group holds 74% stake in the insurance venture with AIG
holding the balance 26%. They started their operations in April 2001

Aviva Aviva, one of UK's largest insurance company and world's 5th largest insurance
group. It was one of the first international insurance company to set up its office in India in
the year 1995. They introduced the concept of banc assurance in India.

IDBI Fortis IDBI Fortis Life Insurance Co. Ltd is a joint venture between three financial
institutes; they are IDBI Bank, Federal Bank and Fortis. They introduced there plans in
March 2008. IDBI owns 48% equity while Federal Bank and Fortis own 26% equity each.

ING VYSYA ING Life was established in 2001 as a joint venture between ING Insurance
International B.V. (INGI), ING Vysya Bank Limited and GMR Industries Limited. At
present, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam Group are the joint
venture partners.

17
OBJECTIVES OF STUDY

 To determine and analyze the Market Potential of AVIVA Life Insurance

Company.

 To study and determine the competitor (LIC) position in the market.

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RESEARCH METHODOLOGY-
MEANING OF RESEARCH-

Before understanding Research Methodology, we should understand the meaning of

research. Research in common parlance refers to a search for knowledge. One can also define
Research as a scientific and systematic search for pertinence information on a specific topic.
In fact, research is an art of scientific investigation.

MEANING OF RESEARCH METHODOLOGY-

Research Methodology, it is a way to systematically solve the research Problem. It may be

understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by the researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research.

Data Collection: - The objectives of the project are such that both primary and secondary
data is required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of secondary
data are various magazines, books, newspapers, & websites etc.

Primary data

The primary data are those data which are collected afresh and for the first time, and thus
happen to be original in character.

Secondary data

The secondary data on the other hand, are those which have already been collected by
someone else and which have already been passing through the statistical process.

Sample size –

100 people were selected

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DATA ANALYSIS

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1) Do you think that investment in Insurance sector is good option?

Particulars No. of respondents

Yes 90

No 10

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2) Which company’s policy do you have?

Particulars No. of respondents

AVIVA 40

LIC 60

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3) Which type of policy you have?

Particulars No. of respondents No. of respondents

LIC AVIVA
Whole life plan 20 10

Retirement plan 10 4

Children plan 18 22

Health plan 6 4

Golden jubilee plan 6 0

Total 60 40

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4) Why do you invest in this (LIC/AVIVA) company?

Particulars No. of respondents No. of respondents

LIC AVIVA

High interest 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Annual premium is reasonable 10 4

Maturity benefits 12 8

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5) Do you think that investment in AVIVA is better than LIC ?

Particulars No. of respondents

Yes 44

No 56

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6) If yes, then why?

Particulars No. of respondents

Guaranteed F.V. at maturity 10

Growth rate 16

More ULIP plan 8

Risk covered 4

All above 6

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7) If no, then why?

Particulars No. of respondents

LIC have govt. stake 24

Brand loyalty of LIC 14

Low A.P. than AVIVA 12

High return 6

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8) In near future, do you think AVIVA will have high growth rate?

Particulars No. of respondents

Agree 20

Neutral 26

Disagree 14

Can’t say 40

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FINDINGS

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 90 people saying that investment in insurance sector is good option and

10 are saying no.

 40 people have AVIVA policies and 60 have of LIC.

 10 people of AVIVA have Whole life plan, 4 have retirement plan, 22

have children plan, 4 have health plan.

 56 people are saying that investment in LIC is better than AVIVA, 44 are

saying investment in AVIVA is better.

 Most of the people of both LIC and AVIVA are getting rate of interest 8-

12%

 Most of the people have children plan of AVIVA.

 Most of the people invest due to high interest of the policy in AVIVA

 People have more faith in govt. Companies than the private.

 14 people invest in LIC due to its brand loyalty.

 26 people saying that AVIVA growth will be neutral in near future

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SUGGESTIONS

31
1) Information regarding new product should be provided to the customers.

2) The company should find out the no. of people who are not having any of
the insurance plans through an intensive market research and motivate them to
get insured.

3) At some level Company should provide information to the customers about

the charges of the policy.

4) Company should target each and every class of the society.

5) Charges should be low of the policies.

6) Annual premium should be reasonable.

7) AVIVA Company should work in systematic way.

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 LIMITATIONS

 Some of the respondents were not cooperative.

 There are chances of biased information provided by the respondents.

 As the sample size is small compared to the total population, therefore

there can’t be full accuracy.

 The time was limited

Area was limited

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 CONCLUSION
Here in this study we see that people have more policies of LIC in
comparison to AVIVA. People have more faith in govt. companies
than private. So it is necessary for AVIVA LIFE INSURANCE. that it
should give more attention to that points or that areas where it lacks
for further future growth. Insurance sector is very wide and co. can
grow in future.

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Bibliography

 www.avivaindia.com

 www.licindia.com

 www.google.com

 http://en.wikipedia.org/wiki/Aviva

 http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India

 Newspapers

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 ANNEXURE

 NOTE: The information that you will provide will be kept confidential and will be
used only for academic Purpose.

GENERAL

 Name_____________________________________________________________
 Addres______________________________________________________________
 Gender_________
 Age _________

1. Do you think that investment in insurance sector is good option

(a) Yes (b) No

2. Which company’s policy do you have?

(a) AVIVA Life Insurance (b) LIC

3. Which type of policy you have?

(a)Whole Life Plan (b) Retirement Plan (c) Children Plan (d) Health Plan

(e) Golden jubilee plan (f) any other please specify___________________

4. What percentage of interest you get from it?

(a) Below 5% (b) 5-8% (c) 8-12% (d) Above 12%

5. Why do you invest in this company?

(a) High interest (b) good image (c) Company growth

(d) Annual premium is reasonable (e) due to maturity benefits

(f) Any other please specify ______________________________

36
6. Do you think that investment in AVIVA is better than LIC?

(a) Yes (b) No

( If your answer is no then jump to question no. 8)

7. if yes then why?

(a) Because AVIVA gives guaranteed fund value at maturity time

(b) Growth rate of company is high (c) AVIVA has more ULIP plans than LIC

(d) Risk factor is covered properly (e) all above

(f) Any other (please specify)_____________

8. If no then why?

(a) Because LIC is having government stake. (b) Brand loyalty of LIC

(c) It has low premium plans than AVIVA (d) Investment return is higher than
AVIVA

(e) Any other (please specify)__________________________

9. Whenever company launch new product, then any information is given to you about that
product?

(a) Yes (b) No

10. In near future AVIVA is having high growth rate.

(a) Agree (b) neutral (c) disagree (d) can’t say

Any suggestions __________________________________________________

37