A

PROJECT REPORT
ON

“A Study on Customer Decision Making

Process in Insurance Services”
Submitted To
Savitribai Phule Pune University
In Partial Fulfilment of 2 years Full Time Course
Masters In Business Administration

(Approved by AICTE and DTE Maharashtra)

Academic Session
(2020 – 2021)

Under the Guidance of Submitted By

Mrs. Priya Tiwari Priyanshi Agarwal

Dr. D. Y. Patil Unitech Society's

Dr. D. Y. Patil Institute of Management & Research
Pimpri, Pune 411018

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2
3
 Undertaking

I, the undersigned, hereby declare that the Project Report entitled title “A Study on
Customer Decision Making Process in Insurance Services” , written and
submitted by me to the Savitribai Phule Pune University, in partial fulfilment of the
requirement for the award of degree of Master of Business Administration under the
guidance of Mrs Priya Tiwari is my original work and the conclusions drawn therein
are based on the material collected by myself.

Place: Pune Ms Priyanka Agarwal

Date:

4
 Acknowledgment

I take the opportunity to express my gratitude to all of them who in some or other way helped
me to accomplish this challenging project entitled “A Study on Customer Decision
Making Process in Insurance Services”. No amount of written expression is sufficient to
show my deepest sense of gratitude to them
 A four-week Industry training is a golden opportunity for learning and self-development. I
consider myself very lucky and honoured to have so many wonderful people lead me through
in completion of this project.
At the outset, I would like to express my deep sense of gratitude and sincere thanks to Ms.
Shivani Gupta HR Area Manager, for providing an opportunity to discover the corporate
world, from a close perspective.
I take this opportunity to extend my sincere gratitude to Mr. Himalyay Sethi, Director, AIM
India New Delhi for giving me an opportunity to undertake internship training and the project
on the topic Analysing customer decision making process in insurance services.
Last but not the least I am grateful to entire staff of AIM India branch, who helped me to
collect relevant data and get the real gist of current market scenario.
I also thankful to Mrs Priya Tiwari Mam my internal guide for this project to whom I am
deeply grateful for his constant support and guidance without which it would not have been
possible for me to complete this project on time.
I would also like to express my heartfelt wishes to AIM India, for making these four weeks a
stepping-stone for my career.

Ms. Priyanka Agarwal

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 Index

Sr. No. Title Page No.

1 Executive Summary 7-10

2 Introduction 11-12

3 Objectives 13-14

4 Industry Profile 15-24

5 Company Profile 25-42

6 Review of Literature 43-45

7 Research Methodology 46-48

8 Data Analysis & Interpretation 49-60

9 Findings 61-62

10 Conclusions 63-64

11 Suggestions 65-66

12 Bibliography 67-70

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 Chapter -1
Executive Summary

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 Human life is a most important asset and life insurance is the most important type of
insurance which provides financial protection to a person and his family at the time of
uncertain risks or damage.

Life insurance provides both safety and protection to individuals and also encourages savings
among people. The present exploratory and descriptive based study was selected with an
objective to identify those factors which influence customers policy buying decision and also
analyze the preferences of customers while life policy investment decision-making.

Various insurance related factors have been discussed in the paper. The data for the study has
been collected from both primary and secondary sources. The study area is limited to
Coimbatore city, Tamil Nadu and the sample size of 110 respondents.

The study tries to analyse the type of policy preferred by the respondent, which insurance
company they prefer, feature of Insurance policy that attracted their purchase, benefit for
which they have purchased, satisfaction level on the life insurance policy purchased,
difficulties encountered in decision making while buying a life insurance policy. The study
also analyses the relationship between Age and type of policy preferred.

Keywords: Life Insurance, Buying Decision, Preference of Customer, Consumer Behavior

Need of The Insurance

 Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of
any illnesses and treatment, and medical care required in the future.
 The financial loss to the family due to the unfortunate death of the sole earner can be covered
by insurance plans. The family can also repay any debts like home loans or other debts which
the person insured may have incurred in his/her lifetime
 Insurance plans will help your family maintain their standard of living in case you are not
around in the future. This will help them cover the costs of running the household through the
insurance lump sum payout. The insurance money will give your family some much-needed
breathing space along with coverage for all expenditure in case of death/accident/medical
emergency of the policyholder
 Insurance plans will help in protecting the future of your child in terms of his/her education.
They will make sure that your children are financially secured while pursuing their dreams
and ambitions without any compromises, even when you are not around
 Many insurance plans come with savings and investment schemes along with regular
coverage. These help in building wealth/savings for the future through regular investments.
You pay premiums regularly and a portion of the same goes towards life coverage while the
other portion goes towards either a savings plan or investment plan, whichever you choose
based on your future goals and needs

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 Insurance helps protect your home in the event of any unforeseen calamity or damage. Your
home insurance plan will help you get coverage for damages to your home and pay for the
cost of repairs or rebuilding, whichever is needed. If you have coverage for valuables and
items inside the house, then you can purchase replacement items with the insurance money.

Types of Insurance

There are several types of insurance plans available. Some of the commonly preferred ones
include the following:

 Life insurance :

Life insurance is what you can avail in order to safeguard your family in case of your death
during the tenor of the policy.The most basic form of life insurance available to buyers is
term insurance. Life insurance helps secure your family financially with a lump sum amount
that is paid out in the event of the policy holder’s death within the policy period

 Health insurance :

This is purchased for covering medical expenses revolving around various health issues,
including hospitalisation, treatments and so on. These insurance plans come in handy in case
of medical emergencies; you can also avail of cashless facility across network hospitals of the
insurer.

 Child insurance :

These insurance policies are savings instruments that help in generating lump sum funds
whenever children reach a certain age for pursuing higher studies. In these plans, the life
assured is that of the child or the recipient of the funds while the parents are the policy
owners.

 Home insurance :

These insurance plans cover any damages to the home on account of accidents, mishaps and
natural calamities, among other such events

 Auto Insurance :

These are insurance plans for vehicles, including cars and bikes. These offer protection
against natural calamities, damages to third parties (people who have incurred losses or been
hurt in an accident with the policyholder’s vehicle) and also damages to the vehicle along
with mishaps and accidents.
Insurance is thus the need of the hour in today’s uncertain times -- evaluate your financial
situation to choose a plan best suited to your future financial needs

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Scope Of The Insurance
The Insurance industry of India has witnessed major growth in the past few decades. With the
introduction of new products and plans, it has not only helped consumers by providing
financial protection but also contributed to the nation’s economy. A well-developed insurance
sector acts as the backbone of a nation as it supports the citizens even in unforeseen events.

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Chapter – 2
Introduction

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Insurance is a means of protection from financial loss. It is a form of risk management
primarily used to hedge against the risk of a contingent or uncertain loss. The life and
property of an individual are surrounded by the risk of death, disability or destruction. These
risks may result in financial losses.

Insurance is a prudent way to transfer such risks to an insurance company. The insurance
policy has details about the conditions and circumstances under which the insurance company
will pay out the insurance amount to either the insured person or the nominees. Insurance is a
way of protecting yourself and your family from a financial loss.

It is a form of contract between the insurance company and a person who gets his life
assured, for the payment of a sum of money the unfortunate happening of an event. Life
insurance is a must for everyone because life is very precious.

The payment is made to theinsurer on the date of maturity or at an unfortunate earlier death.
Under the terms of a contract a person who gets his life insurance. Life insurance is
universally acknowledged to be an investment which eliminates risk and substituting
certainty for uncertainty and comes to the timely aid of the family in unfortunate event of
death.

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Chapter - 3
Objective

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 To determine customer buying behavior towards life insurance company and
their expectations.

 To provide the company the information of customers insurance policy and the

reasons for opting a particular policy.

 To determine the features of company that attract people to buy policy.

 To determine the reason for opting for an insurance

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Chapter - 4
Industry Profile

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Insurance in India refers to the market for insurance in India which covers both the public and
private sector organizations. It is listed in the Constitution of India in the Seventh Schedule as
a Union List subject, meaning it can only be legislated by the Central government.
The insurance industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. The Confederation of Indian Industry states
that the insurance sector of the country has been witnessing a consistent growth rate of late
and its present worth is 41 billion US dollars.
The industry has of late achieved a yearly growth rate within 32 and 34 percent and this
makes it the 5th best among emerging economies around the world. The various entities of
the industry are also bringing out newer products on a regular basis to attract their customers.
As per rules, the upper limit of foreign direct investment permitted in this sector is 26
percent. However, this has to be done through the automatic route and the investor needs a
license from Insurance Regulatory and Development Authority (IRDA).
Among the life insurers, Life Insurance Corporation (LIC) is the sole public-sector company.
Apart from that, among the non-life insurers there are six public sector insurers.
In addition to these, there is sole national re-insurer, namely, General Insurance Corporation
of India (GIC Re).
Other stakeholders in Indian Insurance market include agents (individual and corporate),
brokers, surveyors and third-party administrators servicing health insurance claims.

10 Top companies in insurance sector are :

Insurance Company CSR Percentage
Max Life Insurance Company 99.22
Tata AIA Life Insulance Company 99.07
HDFC Life Insurance Company 99.04
ICICI Prudential Life Insurance 98.58
Life Insurance Corporation of India 97.79
Reliance Life Insurance Company 97.71
SBI Life Insurance Company 95.03
Bharti AXA Life Insurance Company 97.28
Aditya Birla Sun Life 97.15
Exide Life Insurance Company 97.03

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0
Evolution of Insurance sector

 All life insurance companies were nationalized to form LIC in 1956 to increase
penetration and protect policy holders from mismanagement
 The non-life insurance business was nationalized to form GIC in 1972
 Malhotra Committee recommended opening up the insurance sector to private players
 IRDA, LIC and GIC Acts were passed in 1999, making IRDA the statutory regulatory
body for insurance and ending the monopoly of LIC and GIC
 Post liberalization, the insurance industry recorded significant growth; the number of
private players increased to 44 in 2012(1)
 The industry has been spurred by product innovation, vibrant distribution channels,
coupled with targeted publicity and promotional campaigns by the insurers
 In December 2014, Government approved the ordinance increasing FDI limit in
Insurance sector from 26 per cent to 49 per cent. This would likely to attract
investment of US$ 7-8 billion
 In 2015, Government introduced Pradhan Mantri Suraksha Bima Yojna and Pradhan
Mantri Jeevan Jyoti Bima Yojana
 Government introduced Atal Pension Yojana and Health insurance in 2015
 As per Union Budget 2016-17, new health insurance scheme under the National
Health Protection Scheme has been introduced
 In Union Budget 2017, government increased the coverage from 30 per cent to 40 per
cent under Pradhan Mantri Fasal Bima Yojna.

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  Insurance companies raised more than US$ 5 billion from public issues.

India insurance industry growth in last few years

The life insurance companies have performed the best when it comes to growth with an
increase of almost 70% in new premium that has been collected in the initial 5 months of
2012.
As per IRDA data, in April-August 2010 the insurance companies earned $11.73 billion in
new premium - in the corresponding period in the previous year the amount stood at 6.9
billion dollars.
LIC, a state held insurer, had been the biggest profit maker at that time with an addition of
88% to their existing business. The privately-owned insurers together had seen a leap of 34%
to their policy sales.
ICICI Prudential earned 576.60 million dollars at that time. During April-August 2009 SBI
Life had earned $379.20 million in sales of new policies and that figure went up to $531.87
million in the corresponding period in 2010 making it an increase of 40%. HDFC Standard
Life also experienced a good growth of 54% in new sales.
IRDA data shows that between April and October 2010 the general insurance industry
experienced a year-on-year growth of 22.76% with regards to underwritten gross premium.
he total value of that premium was 5.29 billion dollars while the same figure stood at $4.31
billion in April-October 2009. For the public-sector companies, the year-on-year growth rate
was 21.09 percent between April-October 2010 and April-October 2009.
In the same period the privately held insurers saw an increase of 25.19 percent in terms of
premium collected. Among the publicly owned entities, New India Insurance was one of the
better performers with a premium income of 916.77 million dollars in April-October 2010.
At the same period in 2009 they had earned 770.25 million dollars which implies a growth
rate of 19.04%. The IRDA Summary Report of Motor Data of Public and Private Sector
Insurers 2009- 10 states that in the same period almost 28.4 million policies were sold and the
aggregate worth of premium collected was $2.31 billion.
The health insurance sector, according to the RNCOS' research report named "Booming
Health Insurance in India" posted unprecedented growth rates in 2008-09 and 2009-10. The
report also estimates that between the 2009-10 and 2013-14 the sector would see a compound
annual growth rate (CAGR) of at least 25%.

India’s current market continues to be strong

India, the overall market size of the insurance sector is expected to US$ 280 billion in 2020.
The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and
2023. India’s insurance penetration was pegged at 4.2% in FY21, with life insurance

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penetration at 3.2% and non-life insurance penetration at 1.0%. In terms of insurance density,
India’s overall density stood at US$ 78 in FY21.

In the first half of FY22, the life insurance industry recorded growth rate of 5.8% compared
with 0.8% in the same period last year.

In September 2021, new premiums of life insurers registered 22.2% growth in September
2021, up from 2.9% in September 2020.

Between April 2021 and September 2021, gross premiums written off by non-life insurers
reached Rs. 108,705.3 crore (US$ 14.47 billion), an increase of 12.8% over the same period
in FY21. In October 2021, total premium earned by the non-life insurance segment stood at
Rs. 17,679.98 crore (US$ 2.38 billion), as compared to the Rs. 15,906.71 crore (US$ 2.14
billion) recorded in October 2020.
The market share of private sector companies in the general and health insurance market
increased from 47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private
players held a market share of 33.78% in premium underwritten services in FY20.

In FY22*, premiums from new businesses of life insurance companies in India stood at US$
20.7 billion and renewable premium stood at US$ 53.7 billion.
In July 2021, non-life insurance premium stood at Rs. 20,171 crore (US$ 2.71 billion), an
increase of 19.5% YoY, as compared with Rs. 16,885 crore (US$ 2.26 billion) in July 2020.
The growth was driven by strong performance from health and motor segments.

In July 2021, standalone private health issuers registered a premium growth of Rs. 1,753
crore (US$ 235.11 million), an increase of 27.5% YoY.

The gross direct premium income for the general insurance industry in India stood at Rs.
1,087 billion (US$ 14.62 billion) in FY22 (until September 2021), an increase of 12.3% YoY,
due to 28.8% growth
in the health segment and an 84.7% growth in the personal accident segment.
Six standalone private sector health insurance companies registered a jump of 66.6% in their
gross premium at Rs 1,406.64 crore (US$ 191.84 million) in May 2021, as against Rs. 844.13
crore (US$ 115.12 million) earlier.

In March 2021, health insurance companies in the non-life insurance sector increased by
41%, driven by rising demand for health insurance products amid COVID-19 surge.

In July 2021, non-life insurers’ premium, which include general, standalone and specialised
public-sector, recorded 19.46% YoY growth and reached Rs. 20,171.15 crore (US$ 2.71
billion) against Rs. 16,885 crore (US$ 2.27 billion) in the same month last year.

According to S&P Global Market Intelligence data, India is the second-largest insurance
technology market in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurtech-
focused venture investments made in the country.

Investments and Recent Developments

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Companies are trying to leverage strategic partnership to offer various services as follows:

In November 2021, ICICI Lombard collaborated with Vega to provide a personal accident
insurance cover with every online Vega helmet purchase to increase road safety awareness
among customers.

In November 2021, ICICI Prudential Life Insurance partnered with NPCI Bharat BillPay, a
subsidiary of National Payments Corporation of India (NPCI), to offer ClickPay feature to its
customers.

In November 2021, the Competition Commission of India (CCI) approved HDFC Life
Insurance’s acquisition of 100% shareholding in Exide Life Insurance. The move is expected
to strengthen HDFC Life’s position in South India.

In November 2021, Willis Towers Watson acquired the remaining 51% shares in WTW
India, taking the company’s holding in WTW India to 100%.

In November 2021, Acko, a digital insurance start-up, raised US$ 255 million in funds,
taking the company’s valuation to ~US$ 1.1 billion.

In September 2021, ZestMoney raised US$ 50 million to enter new business opportunities in
the insurance sector.

In August 2021, PhonePe announced that it has received preliminary approval from IRDAI to
act as a broker for life and general insurance products. As a result, the company can now
offer insurance advice to its 300+ million users.

In FY21, LIC achieved a record first-year premium income of Rs. 56,406 crore (US$ 7.75
billion) under individual assurance business with a 10.11% growth over last year.

In India, gross premiums written of non-life insurers reached US$ 26.52 billion in FY21
(between April 2020 and March 2021), from US$ 26.49 billion in FY20 (between April 2019
and March 2020), driven by strong growth from general insurance companies.

In August 2021, ICICI Prudential Life Insurance tied up with the National Payments
Corporation of India (NPCI) to provide a unified payments interface autopay.

In August 2021, ICICI Lombard General Insurance introduced extensive coverage for remote
piloted aircraft, particularly drone operators. This product protects the drone, as well as the
payload (camera/equipment) attached to it, against theft, loss, or damage, and third-party
liabilities.

In July 2021, MedPay, a Bengaluru-based B2B tech start-up, built an API infrastructure that
connects healthcare service providers, standalone clinics, pharmacies, labs and insurance
companies through its MedPay Connected Care Network (CCN).

In June 2021, Bharti AXA Life Insurance reported a 10% renewal premium increase of Rs.
1,498 crore (US$ 200.64 million) in FY21.

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In June 2021, LIC Housing Finance announced plans to raise ~Rs. 2,334.69 crore (US$
312.43 million) through preferential issue of equity shares to the Life Insurance Corporation
of India (LIC).

On July 1, 2021, the LIC introduced its Saral Pension Scheme, which is a non-linked, non-
participating, single premium, individual immediate annuity plan.

In July 2021, Gallagher announced plan to acquire 100% stake in India’s Edelweiss
Gallagher Insurance Brokers.

In June 2021, Aditya Birla Sun Life Insurance announced the launch of a new Vision
LifeIncome Plus Plan that will provide guaranteed regular income plus flexible bonus
payouts to policyholders.

In June 2021, Wardwizard Group ties up with Bajaj Allianz to offer insurance policies to Joy
e-Bike customers.

In May 2021, Max Life Insurance Co. Ltd. launched ‘Max Life Saral Pension’, a non-linked,
individual immediate annuity plan.

In March 2021, health insurance companies in the non-life insurance sector increased by
41%, driven by rising demand for health insurance products amid COVID-19 surge.

In February 2021, Bharti AXA General Insurance launched its ‘Health AdvantEDGE’ health
insurance scheme to provide holistic cover against accelerating costs associated with medical
requirements and other healthcare facilities.

In February 2021, ICICI Lombard General Insurance, a non-life insurance firm in the private
sector, has been authorised by the International Financial Services Centre (IFSC) to establish
an IFSC Insurance Office (IIO) in GIFT City in Gandhinagar, Gujarat.

India insurance industry contribution to GDP

Experts are of the opinion that around the world the insurance industry contributes around
4.5% to national GDPs. They have questioned the logicality of opinions that in India the
contribution can be higher saying that there are other important sectors like education,
defense, and health that cannot be undermined in this context.
They have ruled out possibilities that the sector can contribute 10% to India's GDP. The
Chairman of IRDA, Hari Narayan has ruled out any such possibility asking if India's GDP
growth will be that much in the next few years ahead.
The IRDA states that in India land and gold are more preferred as forms of investment.
Narayan feels that if the insurance sector is to do well in terms of contribution to GDP then
more people should be convinced about its capability to provide good ROI (return on
investment).

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Company Polices
Aditya Birla Sun Life 154238
Aegon Life 11302
Aviva Life 12833
Bajaj Allianz Life 250500
Bharti Axa Life 64651
Canara HSBC OBC Life 99336
Edelweiss Tokio Life 45226
Exide Life 86271
Future Genearli Life 592360
HDFC Life 379520
ICIC Preduential Life 22211
IDBI Federal Life 379520
India First Life 106979
Kotak Mahindra Life 180294
Max Life 367673

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India insurance industry major problems
Following are some of the major problems plaguing the insurance industry in India:

 Focus on actuarial pricing

 Regulatory misunderstanding

 Investment regulations

 Solvency regulation

 Claims settlement procedures

 Data clarity

 Distribution channel issues

Porter’s Five Forces Model of Insurance Sector

Competition in an industry is rooted in its underlying economics, and competitive forces exist
that go well beyond the established combatants in a particular industry. Customers, suppliers,
potential entrants, and substitute products are all competitors that may be more or less
prominent or active depending on the industry. The state of competition in an industry
depends on five basic forces that are as follows:

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1. The threat of new entrants

 Other financial companies can enter the industry

 Overall threat is medium given that entry is subject to license and regulations.

2. The bargaining power of buyers/customers

 Bargaining power of customers especially corporate is very high because they pay huge
amount of premium

3. The threat of substitute products

 Similarity in services makes switchover a potent threat

 Investment oriented customers have switched to other avenues

4. The amount of bargaining power suppliers have

 Supplier being the distributor or agent have high bargaining power because they have
customer database and can influence customers in making choices.

5. The intensity of the competitive rivalry

 Insurance industry is becoming highly competitive with 52 players operating in the

industry

 Companies are competing on price and also using low price and high returns strategy for
customers to lure them

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 Chapter- 5
Company Profile

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Accrual Intelligence Manuals Group identity as the leading provider of professional wealth
advisory in India and abroad. AIM India delivers a one stop solution/ service to achieve
financial independence. There principle is to deliver high returns to our clients through our
network of government sector banks in India.
Aim India comprehensive wealth management is a high level professional service that
combines financial and investment advice in accounting, taxation services and retirement
planning. Its wealth management is much more than just investment advice as we encompass
all parts of an individual's financial life.
They coordinate all the services needed to manage client's money and plan for their own and
family's current and future needs, maintain and increase their wealth based on individual's
financial situation goals and comfort level with risk.
Aim India team offers an ongoing support and advice when your investment is successfully
done. They will keep you informed of changes in regulations that directly affect you and
leaving you to focus on strategies that maximize profitability and productivity in investment.

India headquartered & experts in Wealth Advisory & Internships 

 Based in India

 Wealth Management Advisors

 Corporate Service Provider

AIM India believes in Dynamic Culture and it is our goal to help the Individual in dealing
with the dynamism of environment whether it is related to their wealth or expansion of
business. Aim India Group is the leading Advisory in India and Abroad. We at AIM India
provide Training / Development programs in India and Abroad and are having a team of
exclusive Corporate trainers.
There Principle is to deliver high rate of returns to our clients through our network of
government sector banks in India. Keeping in mind the most critical needs in today's context,
they came up with wealth Advisory firm to provide a customer expertise advice to achieve
financial Independence.

26
Aim India Vision
We will seek out clients for whom we can serve as their trusted advisor, attending to the
details of their financial life as it moves forward. We will learn about their history, and help
them clarify their goals, values and dreams, rather than simply inquiring about their balance
sheet. We will develop a personal insight into their lives as well as the role money plays for
them. By adding our professional financial planning and investment management expertise
and wisdom, we will serve as a coach to assist in reaching their personal goals and
recognizing financial peace of mind.
AIM India Mission
To seek opportunities to better the financial planning industry by educating other financial
advisors across the country. By sharing our knowledge, we will help create an environment
where more clients can be effectively served by an increasing number of advisors offering
comprehensive financial planning and adhering to a fiduciary standard.
AIM India Services
Internship Services :

27
We provide domestic & international level internship. AIM India have a team of experienced
educational and training professionals who can provide training solutions for clients to ensure
that RPAS operations are effectively and seamlessly integrated into their existing business
systems. Our training specialists include technical training specialists, formed high school
teachers, university lectures and regulatory training specialists. We have developed training
manuals, conducted training needs analysis, provided in-house training and produced online
and e-training resources.

Compliance Services :

Our Compliance experts have the complete knowledge of the corporate compliance needs
across jurisdictions in the territory. Non-Compliance can result in fines and imprisonment if
one has no updates regarding important information. The compliance horizon in the Asian
jurisdictions is highly dynamic as most of the economies are on verge of transition. AIM
India will be a valuable partner for the companies having intra-regional operations offering
them compliance services/solutions for all of their Regional Subsidiaries. We will leave you
to concentrate on your core activities as we will be providing you the following services:
 Company Constitution
 Meetings & Company Officers
 Maintaining Statutory Books & Registers
 Annual Filings with The Company Registrar
 Statutory Reporting

28
Accounting Services:

As the companies expand their business, accounting transactions gets bulky and complex and
accounting converts into a strategic function from primary function. At AIM India, we will
provide you customized accounting solutions as our accounting experts possess regional
exposure andextensive technical knowledge. Trusting a regional expert with accounting is
elementary to achieve control and transparency in accounting through standardization of
agenda. We have a leading edge of experienced professionals and IT System to render
smooth, co-related and comprehensive reinforcement regionally. We are dynamic towards
systems and solutions to stay relevant to the changes in the region. Our proficiency will
empower the enterprises to expand by beholding the measured decisions.

Our Accounting Services are:

 Accounting and Bookkeeping
 Statutory Reporting
 Payroll and Expense Claim Management Services
 Bank Account Reconciliation
 Corporate Tax Compliance

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Taxation Services :

Tax arrangement is dynamic and complex as it changes with the change of authority. Its
complexity increases in the nation where there is tax at every level. Companies having cross
border transactions need effective planning to minimize tax costs. Tax liabilities can be
optimized by making effective structuring of business entities and revenue models. A new
enterprise will need a guidance to learn about the tax incentives, withholding tax and transfer
pricing formalities which is provided by the Tax professionals of AIM India Group. Our
Professionals are well possessed with the analytical understanding of taxation which will help
the client in managing the Taxation regime of his business.

Our main services are:

 Corporate Income Tax Returns
 Vat Returns
 Indirect Tax
 Withholding Tax
 Tax Optimizations
 Transfer Pricing
 Tax Advisory in M&A, Cross Border Investment, Tax Disputes etc.

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Training & Development Services :

Effective training and development begins with the overall strategy and objectives of the
small business. The entire training process should be planned in advance with specific
company goals in mind. AIM India helps in developing a training strategy, which will be
helpful to assess the company's customers and competitors, strengths and weaknesses, and
any relevant industry or societal trends. The next step is to use this information to identify
where training is needed by the organization as a whole or by individual employees. It will
help in conducting an internal audit to find general areas that might benefit from training, or
to complete a skills inventory to determine the types of skills employees possess and the
types they may need in the future. Each job within the company should be delegated on a
task-by- task basis in order to help determine the content of the training program.
Recruitment Services :

31
Customized strategies are developed from a deep understanding and observation of
organization's culture and its business objectives. Expansion in new markets or recruitment
for that market can only be done after having the full-fledged knowledge of recruitment,
remuneration and retention strategies besides the understanding of regional work culture. At
AIM India, you will find a network of efficient regional consultants who will provide you the
pathway towards seamless recruitment services starting from identifying your potential
clients to handling the immigration process, if required.
Our experts have the complete knowledge to provide valuable advisory in the following
matters:
 Candidate Search
 Profiling
 Interview Coordination
 Employment Contract
 Immigration
 Advisory Service

Consulting Services :

Asia is gaining importance as global economic engine and with the introduction of the
concept of International Business, every business in every country is trying to get connected
with each other despite of the regional differences. AIM India have a group of consultants

32
which provides due diligence to the different businesses regarding their critical business
decisions such as M & A, Investment and expansion into the new areas, etc. and we also help
in identifying the new and effective sources of advantages while avoiding risk.
We mainly provide the following services:
 Corporate Development & Finance
 Investment
 People & Management
 New Market/Partner/Vendor Evaluation
 Operations
 Technology
 Grant Assistance (for Indian & Foreign companies)

Insurance Services :

Different types of business have different types of risks. For adequate coverage, regionally
settled businesses need a thorough understanding of their market so that they can identify the
potential risk involved. Natural disasters, political uncertainties, epidemics, terror threats,
technological threats are adding to the risks posed by economic instability and competition.
AIM India have the group of insurers who provide the comprehensive coverage and detailed
risk assessment to identify the gap. Our insurers will also advise you about the minimization
of expenses on risk premium by providing the services to reduce claims and they will help
you in gaining the understanding of uninsured risks so that you can avoid them.

33
Our main services in this sector are:
 Risk Assessment
 Coverage
 Risk Management
 Corporate Insurance - Property, Pecuniary, Liability and Group
 Political Risk
 Professional Insurance
 Financial Risk
 Trade and Credit Risk

Mutual Funds :

A mutual fund is a professionally-managed investment scheme, usually run by an asset

management company that brings together a group of people and invests their money in
stocks, bonds and other securities. As an investor, you can buy mutual fund 'units', which
basically represent your share of holdings in a particular scheme. These units can be
purchased or redeemed as needed at the fund's current net asset value (NAV). These NAVs
keep fluctuating, according to the fund's holdings. So, each investor participates
proportionally in the gain or loss of the fund.

34
All the mutual funds are registered with SEBI. They function within the provisions of strict
regulation created to protect the interests of the investor. The biggest advantage of investing
through a mutual fund is that it gives small investors access to professionally-managed,
diversified portfolios of equities, bonds and other securities, which would be quite difficult to
create with a small amount of capital. AIM India will provide you all the updates and services
regarding mutual funds so that you can choose from the best available option

Retirement Planning :

There are two components to retirement income planning: Personal Planning and Financial
Planning. Personal planning is important because it is the determining factor of your
satisfaction with your retirement lifestyle. Financial planning is crucial because it identifies
your sources of income and expenses and establishes your retirement budget, based on your
personal plan.
Personal Planning All too often people entering retirement do not place enough emphasis on
personal planning to ensure they maximize their opportunities. So, AIM India helps you at an
early stage in your planning process and gives you time to think about the choices you have,
about how you would like to spend your time during retirement.
Financial Planning Will you have adequate funds to provide the kind of retirement lifestyle
you envision? AIM India provides all the answer to the questions you are having and help
you in recalling that your income will likely come from three general sources: government
pensions, employment-related sources and your own personal investments.

35
International Expansion Services :

Overseas market provides the opportunity to expand in the markets worldwide and also helps
in identifying the opportunities related to new sources of revenue, access to new talent,
diversified risk and competitive parity. It is well known that internationalization is a complex
process. At AIM India group, we have the specialists who can provide the country level
compliance services, accounting and taxation services, payroll and corporal secretarial
services. We are meant to take your company abroad for the expansion. We will help you in
expanding your business in Singapore, Malaysia and Dubai for a start.
Wealth advisory services :

36
Wealth management as an investment-advisory discipline which incorporates financial
planning, investment portfolio management and a number of aggregated financial services.
High-net- worth individuals (HNWIs), small-business owners and families who desire the
assistance of a credentialed financial advisory specialist call upon wealth managers to
coordinate retail banking, estate planning, legal resources, tax professionals and investment
management. At AIM India Group, we have the wealth managers who have backgrounds as
independent Chartered Financial Consultants, Certified Financial Planners, Chartered
Strategic Wealth Professionals, Chartered Financial Planners or any credentialed (such as
MBA) professional money managers who will help you to enhance the income, growth and
tax-favored treatment for long term.
Private wealth management is delivered to high-net- worth investors. We will also guide you
on the use of various estate planning vehicles, business-succession or stock-option planning,
and the occasional use of hedging derivatives for large blocks of stock.
AIM India Product
Aim India deals with India First life insurance Maha Jeevan product.
India First Life Insurance

India First Life Insurance Company is a life insurance company in India. It is a joint venture
between two of India's public-sector banks – Bank of Baroda (44%) and Andhra Bank (30%),
and UK's financial and investment company Legal & General (26%). It was incorporated in
November, 2009. It has its headquarters in Mumbai India First Life made more than Rs. 2
billion in turnover in just four and half months since the insurance company became
operational. India First Life insurance company is headquartered in Mumbai. The company is
headed by the MD & CEO Ms.R.M. Vishakha.

Highlights of Maha Jeevan Product

37
 Life cover of
Tax Benefits
8%Return On 1premium
under sec 80c
Investment *(16-18)
& sec 1010d
times

Joint Ventures of India first Life Insurance

Bob Bank
Andhra Bank

38
Swot Analysis :-

Strength
 Corporate collaborations
 Global presence
 Business growth
 Rise in per capita income
 Emerging middle-income group

Weakness
 Dominance of public sector
 Less promotions

Opportunities
 Creation of strong future growth
 Rise in income
 Rise in awareness
 Creation of stronger demand

Threats
 Economic crisis
 Entry of new NBFCs in the sector
 Varying government policie

39
Organizational Structure of AIM India 

Recruitment & Selection Process of AIM India

For Interns

Pre-Placement Personal
Offer Letter
Talk Interview

40
For Final Placement

Pre-
Personal Skype
Placement Gp/Aptitude Offer Letter
Interview Interview
Talk

In
ternship Summary

Induction Analysis of data Evaluations

Hr Profile
Markeyt Research Counselling
Training

Marketing
Profile Training
Role Plays Recognition

41
Sales Process Summary

Fixing Appointment With Potential Customer

Meeting with potential customer

Follow-up through calls and 1-2more meeting with

potential customer

Closure and Cheque taken from customer

Insurance bond delivery to the customer address

42
Chapter – 6
Review Of Literature

43
 Guru and Umamaheswari (2019) in their research on factors deciding selection of
policies of private life insurance companies among consumers in Thanjavur District
explored that Price, product uniqueness, accessibility and promotions impacts the
purchase decision of consumers upon the various policies of private life insurance
companies significantly and positively. The agents are supposed to provide better and
accurate services and settle claims without any delay or issues. Private life insurance
companies are required to appreciate precisely the financial needs of consumers and
should set easy and uncomplicated terms and conditions for purchasing their life
insurance policies. In addition, private life insurance companies have to bring in
different innovative products to fulfil needs of various consumer segments.

 Guru and Umamaheswari (2018) in their research concluded that among the various
other factors, the major variables that control the insight of the consumers towards life
insurance policies positively were quality of the service offered, relationship between
the client and company and reputation of the company. The growth rate of insurance
industry in India is faster and hence it has become significant for the insurance
companies to identify and comprehend the factors that persuade the perception of the
consumers and the same can be utilized as the supportive feature in developing fresh
and pioneering items which meet the consumer’s expectation.

 Ravi Kumar and Emest Beryl (2018), the study is basically on the factors influencing
the investment choice as it explains about how the life insurance company made a
tremendous change in Indian today. They also suggested that the majority of the
investors’ should treat insurance policy as the risk protection and a multi-faceted
investment option, not only as tax saving instrument.

 M. Vijaya Raghu Nadhan (2016), in his study on consumer behavior towards life
insurance companies with reference of two private companies reveled that consumer
behavior and customer purchase service attempts are depends on factors like search,
experience and credence factors.

 Sandeep Chaudhary (2016) has extracted six factors of that influencing customer
behaviour namely customized and timely service, better company reputation customer
convenience, better service quality, tangible benefits and effective customer
relationship management based on the sample of 100 respondents.

 C. Balaji (2015), in his paper- Customer awareness and satisfaction of life insurance
policy holders with reference to Mayiladuthurai town tries to measure awareness
among the urban and rural consumer about the insurance sector and also the various
policies involving various premium rates. The study was conducted by examining
around 100 sample respondents which revealed that 100% of respondents are aware of
the life insurance policies; where as 87% of the respondents came to know about
insurance policies through agents. But it also came to light that Most of the
respondents are aware of government insurance company LIC and in the private
sector HDFC Standard Life insurance. Finally, the research concludes that the
penetration level of insurance in India is only 2.3% when compared to 9-15% in the
developed nations. So, there is a huge market for the Insurance products in the future
in India.

44
 Harinam Singh (2014) attempted to identify the overview of customers on various life
insurance companies of Uttar Pradesh. The authors revealed that insurance is the
mainstay of any market economy which has a scope to pool large financial sources
FPR longer periods of time. The study suggested that insurance companies should
provide customized solutions for the customers in a customized manner by
understanding the needs of customers.


45
 Chapter-7
Research Methodology

46
Methodology
The objectives of the study were to analyse and to know the decision that a customer take
before taking an insurance service. The research is Descriptive Research Design, the sources
of data are
Primary data and the methods that were used in the data collection was Online Platform and
Questionnaire for the research. The target population for the study is the people with the age
of 14 to 50, the sample frame is New Delhi area and size is 533, sampling technique is
Probability and data is obtained from the study which is analyzed through Microsoft-Excel.
Research Design
This research is a study that is mainly aimed at examining customer behaviour in the
insurance industry. The descriptive research design is used to identify the new factors that are
influencing customer decision making process in insurance services to establish the
relationship that exists between factors to serve the customer in the beller way.
According to the objective of research identify research technique for data collection it is
quantitative research type (Descriptive research) and questionnaire approach was adopted to
collect the data.
Target Population
The target population was the people of New Delhi area and all the potential customers of
AIM India.
Sample Frame
The sampling frame of the target population is the age between 14 to 50 years, with income
of 2.5 lacs to 20 lacs having an occupation in government sector, businessman, private job or
self-employed.
Sample Size
Owing to the fact that, the population of all potential customers in New Delhi was too large
and was un-known at the time of the study, so I finalized five hundred thirty-three (533) data
were collected from customers of various occupation and age for the process the analysis.
Sampling Techniques
Sampling is done on probability basis. The theory behind the research is idealist, as
quantitative methods are used.
This method to provide was selected the information to enable to needed target for specific
the study customer position
Data Collection
For the purpose of collecting data, a well-designed questionnaire was used which is or
sometime according to the research requirement questionnaire has been designed from
organization for industry specific research. This questionnaire consists of variables in both
independent and dependent variable namely, Attitude, Perceived ease of use, Perceived
usefulness, decision making.

47
Data Analysis Tools
Microsoft feature process of Pivot Excel table is used of to Microsoft analyse the Excel
primary data collected from the questionnaire and with the was identified. the data was
analysed and customer decision-making process was identified.

48
 Chapter-8
Data Analysis & Interpretation

49
Interpretation

In 533 respondents, 127 respondents were female and remaining 406 respondents were male
that is 24% were females and 76% were males. The ratio of the female is to male in this
research was 6:19. This shows that mostly decision-making process to take insurance or not
are taken by the male.

50
Interpretation

In 533 respondents, maximum respondents were of age 30-35 that is 143 and minimum were
the age of more than 50+ that is 13. This shows that middle age people are more concerned
about decision-making process for insurance.

51
Interpretation

In 533 respondents, maximum respondents are in private jobs that are 155 and minimum
respondents were students that is 71. This shows in terms of insurance decision-making
process private job occupation people are more concerned and students are less concerned
about insurances.

52
Interpretation

Out of 533 respondents, the income of maximum respondents that is 98 is 10 -

12.5 lacs and minimum respondents that is 12 is 0- 2.5 lacs. This shows that
income of 10 - 12.5 lacs people are more curious and concerned in decision-
making process of insurance services and 0 - 2.5 lacs people are
very less concerned.

53
Interpretation

Out of 533 respondents, 55% respondents that is 294 people have insurance policies and 45%
respondents that are 239 do not have insurance policy. This shows people are nowadays more
concerned to take the insurance policy.

54
Interpretation
Out of 533 respondents, 55% respondents that is 294 people have insurance policies and
45% respondents that are 239 do not have insurance policy. This shows people are nowadays
more concerned to take the insurance policy.

55
Interpretation
Out of 533 respondents, 306 respondent's insurances are still running. 176 respondents don't
have the insurance policy, 38 respondent's insurances have been cancelled and 13
respondent's insurances is over. This shows that maximum people insurance is already
running and they are concerned about it.

56
Interpretation
55% respondents buy insurance for security, 26% respondents buy insurance as investment
purpose, 12% respondents buy insurance to get tax benefits, 5% buy insurance as forced
selling and 2% buy insurance for other purposes. This shows that mostly customer buys
insurance as the reason for security.

57
Interpretation
38% respondents choose insurance on the basis of trust on insurance companies, 32%
respondents choose insurance on the basis of characteristics of product, 21% respondents
choose insurance on the basis of services provided by an insurance company, 5% respondents
choose insurance on the basis of recommendation and 4% respondents choose insurance
through trusting agents. This shows that customers choose insurance on the basis of trust over
an insurance company.

58
Interpretation
47% respondents prefer to buy an insurance through an insurance agent, 27% respondents
prefer to buy an insurance directly from an agency and 26% respondents prefer to buy an
insurance through the online platform. This shows that people prefer to buy the insurance
policy through an insurance agent.

59
Interpretation
90% respondents feel protected while having an insurance policy and 10% respondents do
not feel secure while having an insurance. This shows people feel protected while having an
insurance policy.

60
Chapter – 9
Findings

61
 Majority 34.5% of respondents about the perception of life insurance is as a tool to
protect our family.
  Majority of the mean score level 3.31 belongs to the factor money back guarantee of
life insurance company.
  It is observed from the ranking table that the knowledge of policy is ranked first,
safety is ranked second, investment advice is ranked third, convincing approach is
ranked fourth, and handling of documents is ranked fifth.
  From the chi – square test it is observes that there is a relationship between age and
respondents preference of Life Insurance Compan

62
Chapter – 10
Conclusions

63
 Insurance is a large investment and you will most likely purchase multiple policies
throughout your lifetime. It is essential that you know what each type of insurance covers
and how it works so you can make the best decision about what to buy. Do not base your
decision on just what is cheapest, but look at what it provides.
 Take the time to shop around and find the right insurance for your situation. People often
say they cannot afford insurance, but the reality is that they cannot afford not to have it. It
can save them from thousands or more dollars in unplanned expenses when unexpected
situations arise. You do not want to waste your money on policies that do not meet your
needs, but the right insurance policy can protect you and your family from unforeseen
disasters.

 It is the risk transfer tool which is in existence since the time when trade through sea
started .In insurance you transfer your risk (negative deviation from an future outcome) to
an insurance company which will pay you at the time when the event insured happens
with respect to the contract signed by both the parties .
 The conclusion here is you pay in small intervals to avoid the financial burden in difficult
phases of life .

64
Chapter-10
Suggestions

65
 Promotion of India First Life Insurance company should be more on every platform.

 Claims of insurance policies should be given on time.

 Every benefit illustration through the policy must be shown in the bond.

 Every insurance policy should give their customer an online authentication where
they can be also updated with their policy details and premium.

 AIM India can collaborate with various multi-national companies and can get data on
newly hired employees, where the company can tell the employee the tax that they
can save their salaries.

66
Chapter-11
Bibliography

67
 https://www.ibef.org/industry/insurance-sector-india.aspx
 https://www.eindiainsurance.com/insurance/evolution-indian-insurance-
industry.asp#:~:text=Evolution%20of%20insurance%20industry%20has,both
%20Indian%20and%20European%20origin.
 https://www.aimincorp.com/
 https://www.policybazaar.com/?
pb_source=google_brand&pb_medium=ppc&pb_term=Policybazaar&pb_campaign=
PolicyBazaar00PolicyBazaar&gclid=EAIaIQobChMIoZHPjpjj9gIVUCsrCh3JHAcE
EAAYASAAEgJyl_D_BwE
 http://s3-ap-southeast-1.amazonaws.com/ijmer/pdf/volume10/volume10-
issue4(5)/7.pdf
 https://www.google.com/search?
q=findings+of+customer+decision+making+process+of+insurance+company&rl
z=1C1CHBD_enIN959IN959&oq=findings+of+customer+descion+making+proc
ess+of+in&aqs=chrome.3.69i57j33i10i160l5j33i10i22i29i30l4.58863j0j4&sourcei
d=chrome&ie=UTF-8
 http://indianresearchjournals.com/pdf/IJMFSMR/2013/May/7.pdf
 https://www.iitk.ac.in/ime/devlina/data/Manohar%20Giri%20PhD%20Thesis
%20_Final-4-10-19.pdf

68
 Annexure
 Name

 Gender
o Female
o Male

 Age
o 14-20
o 21-25
o 25-30
o 30-35
o 35-40
o 40-45
o 45-50
o 50+

 Occupation
o Government Service
o Businessman
o Private Job
o Self-employed 
o Student
o Other

 Income
o Nil
o 0 - 2.5 lacs
o 2.5 - 5 lacs
o 5- 7.5 lacs
o 7.5- 10 lacs
o 10- 12.5 lacs
o 12.5 - 15 lacs
o 15 - 17.5 lacs
o 17.5 - 20 lacs
o More than 20 lacs
o Confidential

 6 Are you risk averse?

o Yes

69
 o No
o Maybe

 Do you have an insurance policy?

o Yes
o No

 Which is the current state of your insurance?

o The insurance is still running
o The insurance is over
o The insurance has been cancelled
o Don't have insurance policy..
o Other

 Which are the main reasons for which you would buy an insurance?
o Tax
o Investment
o Security
o Discipline
o Forced Selling
o Other

 What criteria you use for choosing the insurance company?

o Services
o Trust
o Publicity
o Recommendation e
o Agents
o Characteristics of Product
o Other

 How do you prefer to buy an insurance?

o Insurance Agent
o Direct from agency
o Online
o Other

 Do you feel more protected having an insurance?

o Yes
o No

70
 13. If you have not an insurance, would you buy one or you will not buy and why?

71