SUMMER TRAINING PROJECT REPORT

ON

“Consumer Buying Behaviour towards Life Insurance in

Shriram Life Insurance”

In Partial Fulfillment of
BBA (2021-2024)
Submitted to CCS Uninersity

Under the Supervision of

MS. ANITA RAKHYANI
(Faculty – Management Department)

Submitted by
ADESH CHAUHAN

BBA – VI Semester
Roll No. R210935105022
 DECLARATION

I hereby declare that this Project Report is my own work and that, to the best of my
knowledge and belief, it reproduces no material previously published or written
that has been accepted for the award of any other degree of diploma, except where
due acknowledgement has been made in the text.

(Student Name)
Enrollment No.
Date:
 (On College Letterhead)

CERTIFICATE

This is to certify that Mr. / Ms. ……………………….. a student of BBA (Batch

2018-21), at IMS Ghaziabad, University Courses Campus, has undertaken the
project on “-----------------------”. The survey, data collection, & analysis work for
preparing the project has been carried out by the student in partial fulfillment of the
requirements for the Award of BBA Degree in ________________, under my
guidance and supervision.

I am satisfied with the work of Mr. /Ms. …………………………..

Date:

Mentor(s) Name: …………

(Signature)
 (On Organization Letterhead)

Date: ………….

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. / Ms. ………………………... a student of BBA (Batch

2018-21), Domain Specialization …………………., at IMS Ghaziabad, University
Courses Campus, has undertaken the project on “-----------------------------” under
the guidance of Mr./ Ms……………………… (Industry Mentor’s Name) for a
duration of …………………. weeks, from…….to…………, 2020.

During his/her tenure with us, we found him/her sincere in his outlook towards his
work.

We wish him/ her all the very best for future endeavours.

Signature
Name
Designation
Organization seal
 INDEX

S.NO TITLE PAGE NO

1. Executive Summary

2. Industry Profile
1. History of Insurance
2. Types of Insurance
3. List of Insurance Companies
4. Market in Life Insurance
3. Company Profile – Shriram Life Insurance

1. Shriram Group
2. Vision Mission of Shriram Group
3. History of SLIC
4. Vision & Mission of SLIC
5. Foreign Partner of SLIC
6. Benefits of SLIC
7. Documentation of SLIC
8. STP of SLIC
9. SWOT Analysis of SLIC
10.Porters Five Force Model
11.Products by SLIC
4. Research Methodology
1. Objectives of study
2. Sources of Data
 3. Sampling Technique
4. Sample design
5. Sample Size

5. Data Analysis and Interpretation

6. Results and Learning Outcomes

1. Results
2. Conclusion
7. Bibliography

8. Annexure -1
 EXECUTIVE SUMMARY

“Insuring Dreams”, this is exactly what we at Shriram Life do.

Shriram Life has emerged out of a parent company whose philosophy revolves around the Aam Aadmi
(common man), not in papers, but in actuality. With a sole motivation to serve the marginalised section,
every single member of the Shriram family strives towards creating a better world, for himself/herself and
for those around him/her.

For a world, where business means profits and self-centric service, our work-values might sound a bit
farfetched. Understandably, the doubt is genuine and undeniable. So here, let us have a glance into the
background of Shriram Life and the Shriram Group.
Commencing business in 2006, Shriram life was incorporated in the year of 2005, with constant support
from Shriram Group and Sanlam Group, a 90-year-old South African Insurance firm.

We work with the primary intention of bringing a positive change in the lives of our fellow beings while
adhering to high service standards at the same time.

The philosophy of putting the common man first is apparent in the way the Shriram Group functions. Its
humble environment with no monumental expenditure on luxury is in sync with its working culture.
Acknowledging our efforts, many accolades have been bestowed upon us.

Like every other family, the Shriram family also has elders whom we look upon, who guide each and
every step of ours, ensuring smooth and effective functioning. The leaders are also known for their
simplicity and down-to-earth approach. R.Thyagarajan, the founder of Shriram Group, Padma Bhushan
awardee, is the living example of honest and effective business principles.

With the same unwavering commitment and equal enthusiasm, Shriram Life is stepping into the online
world, making the process of buying insurance even simpler and customer-centric.

Under the impactful leadership and visionary approach of Mr. Manoj Jain, Mr. Cassie Kromhout and Mrs.
Akhila Srinivasan, the family of Shriram Life is working towards making insurance buying simpler, faster
and easier and to help customers in the better management of their funds and in increasing their funds
through the beneficial and suitable life insurance plans.

Life of human is a completely essential asset and existence insurance is very essential as it insures the life
of human i.e. Offers protection to an individual and his circle of relatives when uncertainty arises. Life
Insurance is not only a protection it is also a savings. Shriram Life Insurance plays a very critical position
in the person welfare by way of offering coverage to thousands and thousands of people while the human
life is at hazard or at uncertainty time. The study at present has been selected with an objective of
examining the consumer behaviour and various factors affecting the buying behaviour of Life insurance in
Shriram Life Insurance. The data collected for the study is a primary data and the sample size is 50
respondents. Insurance policy should spread awareness about their policy, returns, premium, goodwill etc.
and also they should have innovative products where this information was provided by the previous
research papers. Insurance is not only for tax saving but also for financial security, risks, uncertainty etc.
 CHAPTER -1

OVERVIEW OF INDUSTRY
 1. INDUSTRY PROFILE

1.1 WHAT IS INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property.
Insurance is a collective bearing of risk. Insurance spreads the risks and losses of few people among a
large number of people as people prefer small fixed liability instead of big uncertain and changing liability.
Insurance is a scheme of economic cooperation by which members of the community share the
unavoidable risks. Insurance can be defined as a legal contract between two parties whereby one party
called Insurer undertakes to pay a fixed amount of money on the happening of a particular event, which
may be certain or uncertain. The other party called Insure or Insurant pays in exchange a fixed sum known
as premium. The insurer and the insurant are also known as Assurer or Underwriter and Assurant,
respectively. The document which embodies the contract is called the policy.

1.2 ORIGIN OF INSURANCE

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by
giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code
of Hammurabi granted legal status to the practice that, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the
funeral expenses of its members as well as help survivors by making some payments. As European
civilization progressed, its social institutions and welfare practices also got more and more refined. With
the discovery of new lands, sea routes and the consequent growth in trade, medieval guilds took it upon
themselves to protect their member traders from loss on account of fire, shipwrecks and the like. Since
most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom
for members held captive by pirates. Burial expenses and support in times of sickness and poverty were
other services offered. Essentially, all these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really. 10 In 1347, in Genoa, European maritime nations entered into
the earliest known insurance contract and decided to accept marine insurance as a practice.
THE FIRST STEP

Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in
1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners
and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed
enough business to become one of the first modern insurance companies.

ENTER COMPANIES

The first stock companies to get into the business of insurance were chartered in England in

1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston,
SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in
America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance
really took off in a big way. The trigger: reducing opposition from religious groups.

THE GROWING YEARS

The 19th century saw huge developments in the field of insurance, with newer products being devised to
meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew
people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts
became the first state to require companies by law to maintain such reserves. The great Chicago fire of
1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice
of reinsurance, wherein the risks are spread among several companies, was devised specifically for such
situations. There were more offshoots of the process of industrialization. In 1897, the British government
passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees
against industrial accidents. With the advent of the automobile, public liability insurance, which first made
its appearance in the 1880s, gained importance and acceptance.

In the 19th century, many societies were founded to insure the life and health of their members, while
fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to
provide insurance coverage to members as do most labour organizations. Many employers sponsor group
insurance policies for their employees, providing not just life insurance, but sickness and accident benefits
and old-age pensions. Employees contribute a certain percentage of the premium for these policies.
IN INDIA
Insurance in India can be traced back to the Vedas. For instance, Yogakshema, the name of Life Insurance
Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form
of "community insurance" was prevalent around 1000 BC and practised by the Aryans. Burial societies of
the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect
widows and children. Bombay Mutual Assurance
Society, the first Indian life assurance society, was formed in 1870. Other companies like

Oriental, Bharat and Empire of India were also set up in the 1870- 90s. It was during the Swadeshi
movement in the early 20th century that insurance witnessed a big boom in India with several more
companies being set up. As these companies grew, the government began to exercise control on them. The
Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked
into investments, expenditure and management of these companies' funds. By the mid- 1950s, there were
around 170 insurance companies and 80 provident fund societies in the country's life insurance scene.
However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most
of these companies. As a result, the government decided nationalise the life assurance business in India.
The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For
years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of
deliberation and debate – after the RN Malhotra Committee report of 1994 became the first serious
document calling for the re-opening up of the insurance sector to private players that the sector was finally
opened up to private players in 2001. The Insurance Regulatory & Development Authority, an autonomous
insurance regulator set up in 2000, has extensive powers to oversee the insurance business and regulate in
a manner that will safeguard the interests of the insured.
1.3 TYPES OF INSURANCE
1.4 LIFE INSURANCE
Life Insurance is defined as a contract between the policy holder and the insurance company, where the life
insurance company pays a specific sum to the insured individual's family upon his death. The life insurance
sum is paid in exchange for a specific amount of premium. Life is beautiful, but also uncertain. Whatever
you do, however smart and hard you work, and you are never sure what life has in store for you.

It is therefore important that you do not leave anything to chance, especially ‘life insurance’. As death is the
only certain thing in life, apart from taxes, it pays to insure it well in advance.
1.5 BENEFITS OF LIFE INSURANCE

Life insurance is designed to minimize the impact of the financial loss your family may incur upon your
demise. The benefits of such plans are fourfold, aptly contained within the acronym “LIFE”:

1. Liability Free

Life insurance gives your family the power to be independent and self-reliant. A good term plan can help
them repay financial liabilities like home loan, auto loan, personal loan, or a loan on credit card. The term
plan may also cover hospitalization charges and critical illness treatment, giving you a comprehensive
protection package

2. Income Replacement

If you are the sole breadwinner in your family, a life insurance plan becomes can provide a guaranteed
income to your family every month, making sure that their everyday life is not disrupted and they remain
financially stable.

3. Education and other expenses for dependents

The pay-outs from life insurance can help to pay the bills for the education of your children, as well as
expenses for their wedding or medical costs if any.

4. Immediate Expenses after Demise

It will also help your family cover a part of essential expenses immediately after your demise, such as
funeral costs and/or medical bills.
 1.6 TYPES OF LIFE INSURANCE POLCIIES

• Term Life Insurance: - Term life insurance lasts for a set number of years before it expires. If you
die before the term is up, a set amount of money, known as the death benefit, is paid to your
designated beneficiary .Term life is considered the simplest, most accessible insurance policy.
When you make your payments (known as your premium), you’re paying for the death benefit that
goes to your beneficiaries in the event of your death. The death benefit can be paid out as a lump
sum, a monthly payment, or an annuity. Most people elect to receive their death benefit as a lump
sum.

• Universal Life Insurance: - Universal life insurance has a cash value, just like a whole life
insurance policy. Your premiums go toward both the cash value and the death benefit. But there’s a
twist: You can change the premium and death benefit amounts without getting a new policy.
Basically, although you have a minimum premium to keep the policy in force, you can use the cash
value to pay that premium. That means if you have enough money in the cash value, you can use
that to skip premium payments entirely, letting the accrued interest do the work.

• Variable Life Insurance: - Variable life insurance is similar to whole life insurance in that they
both have a cash value, but the functions of the cash values are quite different. With a whole life
insurance policy, the cash value component is a savings account. That’s why, although the growth
might be small compared to other investment options, there is a guaranteed minimum rate. It also
includes dividend payments from the life insurance company.

• Simplified Issue Life Insurance: - Typically when you apply for life insurance, you go through a
paramedical exam as part of the underwriting process so the insurer can find out how risky you are
to insure. The exam helps them set your premium rate.

With simplified issue life insurance you can skip the medical exam. That’s the "simplified" part of this
policy type. This is also known as a "no exam policy.” You’re not out of the woods completely, though.
You don’t need to go through the medical exam, but you do need to fill out a health questionnaire,
answering questions like if you smoke, have been diagnosed with serious illnesses, and so on.

• Guaranteed Issue Life Insurance: - Guaranteed issue life insurance takes the concept of
simplified issue life insurance — forgoing the health exam — a step further in that you don’t have
to answer any questions about your health, either. As long as you can pay the premium, the insurer
will cover you, needing only your age, sex, and state of residence.

• Endowment Plan: It is a life insurance policies which is payable to the insured if he/she is alive
till the policy maturity date. These endowment plans also offer benefits like bonus monthly, which
is paid in maturity or else to the nominee under the death benefit. It is also known as traditional
insurance and the risk involved is lower.

• ULIP: In this, the part of insurance plan will go towards the mutual fund investments and
remaining will be going to the death benefit purpose. An individual also can invest in different
funds offered by the company depending on his risk management or involved.

• Whole Life Insurance: It is not for a specified term; instead it covers the whole life of an
individual in this. The sum assured is decided when the policy is being purchased and is paid to the
nominee when the insured person will die. In this, withdrawal can also be done after the premium
payment period.

• Child’s Policy: It provides financial protection to the children throughout their lives by Investment
+ insurance policies. It helps to secure the child’s future for their education and marriages. During
the policy term, if the insured child’s parent dies then the payment is done immediately by the
insurance company.

• Money-Back: After the payment of policy, it provides certain percentage on sum assured which is
also known as survival benefit. They are also eligible to receive.
 • Retirement Plan: It is also called as a Pension plans. It is a policy where it combines both
investment and insurance. A little portion of amount is used for the retirement purpose of the
policyholder and the remaining lump-sum amount or monthly payment will be given to the
policyholder when he retires.

1.7 LIST OF LIFE INSURANCE COMPANIES

Life Insurance Companies in India Claim Settlement

S. No.
Ratio

Aditya Birla Sun Life Insurance 97.15%

1
Company

2 AEGON Life Insurance Company 96.45%

3 Aviva Life Insurance Company 96.06%

Bajaj Allianz Life Insurance 95.01%

4
Company

Bharti AXA Life Insurance 97.28%

5
Company

Canara HSBC OBC Life Insurance 94.04%

6
Company

7 Edelweiss Tokio Life Insurance 95.82%

Company

8 Exide Life Insurance Company 97.03%

 Future Generali Life Insurance 95.16%
9
Company

10 HDFC Life Insurance Company 99.04%

ICICI Prudential Life Insurance 98.58%

11
Company

IDBI Federal Life Insurance 95.79%

12
Company

13 IndiaFirst Life Insurance Company 92.82%

14 Kotak Life Insurance Company 97.40%

Life Insurance Corporation of India 97.79%

15
Company

16 Max Life Insurance Company 98.74%

17 PNB MetLife Insurance Company 96.21%

18 Pramerica Life Insurance Company 96.80%

19 Reliance Life Insurance Company 97.71%

20 Sahara Life Insurance Company 90.16%

21 SBI Life Insurance Company 95.03%

 22 Shriram Life Insurance Company 85.30%

Star Union Dai-ichi Life Insurance 96.74%

23
Company

24 Tata AIA Life Insurance Company 99.07%

*(Table has been taken from source: - https://www.policybazaar.com/insurancecompanies/life-insurance-

companies-in-india/ )*
1.8 LIFE INSURANCE MARKET SHARE
*(https://www.ibef.org/industry/insurance-sector-india/infographic - SOURCE)*
1.9 REGULATORY BODY – IRDAI
IRDA is the supervisory body in India that regulates and commands all the insurance companies in the
country, both Life Insurances and General Insurance companies.

IRDA is the head organization that sets rules and guidelines to run the Indian Insurance Industry. While
monitoring the activities of the insurance companies, IRDA also regulates and sees the development of
these industries.

The whole and sole responsibility of the autonomous body IRDA is to regulate fair practices in the
insurance market to impede the loss of customers.
The way the banking system of the nation works as per the guidelines set by the RBI, leaving no scope for
the monopoly to take over, IRDA on the same lines of industrial practice plays an important role to control
the insurance sector.
Major responsibilities of IRDA is as follows:

• Urge and ensure the systematic growth of the insurance industry to benefit the customers who
invest in policies seeking safety.

• Safeguard the interest of the policyholders.

• Foster righteousness and fair dealings in the market.

• Expedite the claim settlement and overcome the disputes

• Keep a check on scams and frauds by setting standards and conduct vigilance.
The scope of work for IRDA is wide and it abides by its limitations without favoring any particular
insurance company. To keep up the growth, the work and acts of IRDA are as mentioned below:

1. IRDA monitors that no insurance company can deny the claim on their free will unless it falls
beyond the scope of the cover. Thus, protecting the interest of policyholders at the time of issuance
of the policy claims, and cancellation of the policy.
2. IRDA clearly states the code of conduct for all insurance companies, loss assessors and surveyors.
Thus, players come together to work on a single tune and compete with each other simply on the
basis of discounts.
3. IRDA conducts investigations, calls for both annual and need-based audit so as to prevent any
misdeed.
4. To bring equality for customers IRDA, regulates the terms and rates offered by the insurance
companies.
5. IRDA provides a resolution in case of any disputes emerged between the insurer and the
policyholder.
6. IRDA prevents insurers from quoting rates as per their convenience and hence it limits the major
risks to the Tariff Advisory Committee.
7. IRDA sets the minimum percentage limit for the insurers to carry for both life and non life
business. Thus, helps in the development of both rural and urban sectors.

*(https://www.irdai.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo1332 &mid=1.9)*
 CHAPTER – 2
COMPANY PROFILE
2.1 SHRIRAM GROUP
The 76,000 Cr Shriram Group had its humble beginnings in the Chit Fund business over three decades ago
in Chennai. Mr. R. Thyagarajan, Mr.A.V.S. Raja and Mr. T. Jayaraman were the “three musketeers” who
ventured into these businesses. Not many in the financial services industry thought at the time that this
small Chit Fund business in Chennai would become the foundation for the financial conglomerate that
Shriram is today.

Shriram Group’s businesses strive to serve the largest number of common people through its pioneering
and customised financial services. For more than 3 decades the tireless efforts for facilitating financial
access to small and medium entrepreneurs through loans and chits has carved a niche for the Shriram
Group in South India.

Shriram Capital

Shriram Capital Limited (SCL) is the overarching holding company for the Financial Services and
Insurance entities of the Shriram Group. Shriram Capital was created with the primary objective of
optimizing synergies across Group companies, apart from playing a significant role in the Risk
Management and Leadership development of these entities.

SCL is the main promoter of the two high-growth listed companies of Shriram Group, namely

Shriram Transport Finance Company Ltd, the largest asset financing company in India, and Shriram City
Union Finance Ltd, a leader in Retail Finance across a wide range of products. SCL is also the promoter of
Shriram Life Insurance Company Ltd, and more recently, Shriram General Insurance Ltd, Shriram Fortune
Solutions, Shriram Insight Share Brokers and Shriram Wealth Management. SCL’s main role is to promote
these companies, induct and strengthen leadership teams, provide strategic inputs and direction to help and
nurture them to grow into large and profitable enterprises.

On a consolidated basis, SCL has an overall customer base of 7.5 million, 35,000 employees across 2,800
offices, with Assets under Management (AUM) of around US$ 11 billion.
2.2 EVOLUTION OF SHRIRAM GROUP

2011 - Commencement of
1974 - Shriram capital & 2005 - Shriram Life Business -Shriram
Shriram Chit Fund Insurance was introduced Housing Finance Ltd. in
December.

2006 - Shriram Life

1979 - Shriram Transport
Insurance was established
Finance Company in
as Shriram Financial
South India
Services Limited.

2009 - Non Convertible

1986 - Shriram City for Debenture &
specializing in Retail Commencement of
Finance Shriram Wealth Advisors
Ltd.
2.3 VISION & MISSION STATEMENT OF SHRIRAM GROUP

'Serving the under-served’, ‘addressing the bottom of the pyramid’, ‘Inclusive financing’ are all phrases
that have become common place in the corporate world today. Whether it is the Chit Fund business,
Transport & Equipment Finance business, Consumer Finance business or even the huge deposit customer
base of Shriram, over 90% of the 10.2 million customers of the group come under the purview of the
under-served.
They always believe in “People First” (Aam Adami)

2.4 SHRIRAM LIFE INSURANCE (SLIC)

Incorporated in 2005, Shriram Life Insurance commenced operations in 2006. Synonymous for its efficient
use of capital and low operational costs, SLIC has been true to the Group‘s philosophy of financial
inclusion. SLIC’s aim is to offer life insurance plans and solutions that cater to a wider demography. It has
a network of over 550 offices across India.
Limited headquartered in Hyderabad with the partner Sanlam Group. The Managing Director and

CEO is Mr. Casparus J H Kromhout, Chairman is MR. T. S. Krishna Murthy, and Managing Director is
Smt. Akhila Srinivasan and Mr. Manoj Jain. It has a wide network of over 550 offices in India. After the
operations have started they made profits for the three consecutive years and have become the only private
insurance company which have achieved distinction performance. Their main aim is to offer plans of life
insurance and provide solutions which serve the wide location. In 2006, the financial services operations
was started in order to provide solutions to the financial planning through mutual funds, General insurance,
deposits and Life insurance. When compared to the other industry, SLIC is the most profitable made
business in the country in the first 7 years of operations. Shriram Life Insurance earned more than 40% of
its business providing life insurance for “AAM ADMI”, a weak part of rural areas and individuals. SLIC
stands for very efficient use of capital and less cost of operations. They also have started Digital Marketing
2017. They have 11% growth in new business premium in FY 2018-19.
 SHRIRAM LIFE INSURANCE TEAM – KEY PERSONS

2.5 THE VISION & MISSION STATEMENT OF SLIC

The Shriram Life Insurance Company was founded with the objective of reaching out to the “common man”
with products and services that would be helpful to him as he sets out on the path to “prosperity”.

Operational efficiency, integrity and a strong focus on catering to the needs of the average Indian, by
offering him high quality and cost-effective products and services, are the core values that drive the
organisation. These values have been strongly adhered to over the decades and are now an integral part of
the organisation’s DNA.

The company prides itself on its deep understanding of the customer. Each product or service is tailor-made
to specifically suit the needs of the customer. It is this guiding philosophy of putting people first that has
brought the group company closer to the grassroots and has made it the preferred choice for all truck
financing requirements amongst the customers.
2.6 SANLAM GROUP – SLIC FOREIGN PARTNER
Sanlam was established as a life insurance company in South Africa but has since transformed into a
diversified financial services group that operates across the African continent, India, Malaysia and selected
developed markets, with listings on the Johannesburg, A2X and Namibian stock exchanges. In 2018, the
Group celebrated its centenary as well as 20 years since demutualisation and listing in South Africa and
Namibia.

Our vision is to be the leader in client-centric wealth creation, management and protection in South Africa,
to be a leading player in Pan-African financial services with a meaningful presence in India and Malaysia
and to play a niche role in wealth and investment management in specific developed markets.

Sanlam operates through a number of subsidiaries, associated companies and joint ventures. Sanlam Life is
the largest operating subsidiary and the holding company of most of Sanlam’s operations in emerging
markets.

2.7 BENEFITS - SLIC

• Financial Protection: Plans which provide financial protection to your family.

• Flexibility: Flexible premium and pay-out options.

• Online plans: Specifically designed online plans that costs lower

• Variety: Offers a variety of online as well as offline plans

• Customer Service: Offers good, hassle-free pre-sales and post-sales services.

• Tax benefits: Save tax on all premiums and pay-outs under the section 80C and 10(10D) of
Income Tax Act, 1961.

2.8 DOCUMENTATION NEEDED TO APPLY FOR SHRIRAM LIFE

INURANCE POLICY

The most common type of documentation comprises of the following, the information on the same is
available on the official website of SLIC shriramlife.com/download-forms.
 • Proposal Form: The form which is to be filled in by the insured in written or electronic or any
other format as approved by the authority, for furnishing all material information as required by the
insurer in respect of a risk, in order to enable the insurer to take informed decision in the context of
underwriting the risk, and in the event of acceptance of the risk, to determine the rates, advantages,
terms and conditions of the cover to be granted.

• Know Your Customer (KYC): Identity, address, income and age proof.

2.9 HIGHLIGHTS OF SHRIRAM LIFE INSURANCE

• Shriram Life has more than 528 branches with over and above 1.45 crore customers.

• Shriram Life clocked Rs.1020 crore gross premium in 2015-2016.

• The company has a network of 609 offices and 75,000 agents across India.

• Shriram has an outstanding Underwriting Record and has awarded as ‘Underwriting Initiative of
the Year.’

• Shriram Life Insurance generates more than 40% business through providing insurance to rural
area and weaker segment individuals - ‘AAM AADMI’ of India.

• The Founder of Shriram Group, Mr R Thyagarajan, has been awarded with Padma Bhushan award.

2.10 AWARDS WON BY SHRIRAM LIFE INSURANCE

1. The Bizz Americas 2016 Award - Shriram Life Insurance.

2. Best Life Insurance Company- BFSI Award, ABP News.

3. International Arch of Europe’ award - Frankfurt 2015.

4. Indian Insurance Award for Non-Urban Coverage - Life Insurance - Finetelekt, SP Media Pvt. Ltd.

5. Managerial Excellence Award 2015 - For excellence in diverse areas - Madras Management
Association.
*(https://www.coverfox.com/life-insurance/life-insurance-companies/shriram-
lifeinsurance/#:~:text=Benefits%20of%20Shriram%20Life%20Insurance&text=Flexibility%3
AFlexible%20premium%20and%20payout%20options.&text=Customer%20Service%3A
Offers%20good%2C%20hassle,of%20Income%20Tax%20Act%2C%201961.)*

2.11 SLIC – MARKET SEGMENTATION, TARGETING, POSITIONING

SEGMENTATION TARGETING POSITIONING

• Targeting on Rural and

Urban Investors
• One personal and • Complete insurance
especially youths.
Institutional Insurance and financial solutions.

• AAM ADAMI
2.12 SWOT ANALYSIS

STRENGHTS WEAKNESS

They have low marketing and don't have brand

Policy is covered to all types of societies.
presence when compared to other competitors.
They have expertise in foreign group such as
When compared to big companies they have
they are partnered with Sanlam Group.
poor IT Infrastructure.
They have across 750 offices in India and 30 lakh
customer base and 75000 loyal agents.

The continuous growth of the business in the

last 45 years.

OPPORTUNITIES THREATS

They have rural market growth and good reach There will be entry from new competitors.

of AAM AADHMI. Aam Aadhmi is where they are There may be new rules and regulations from
focusing on the growth by taking life insurance the Government and IRDAI.
whom it needs the most. The impact of COVID-19.
To target the youths of urban area.
Companies issuing new policies and payment
Selling to an existing customer through financial policies.
services like banking
2.13 POTERS FIVE FORCE MODEL – SLIC
1. Competition in the Industry

The first of the five forces refers to the number of competitors and their ability to undercut a company. The
larger the number of competitors, along with the number of equivalent products and services they offer, the
lesser the power of a company. Suppliers and buyers seek out a company's competition if they are able to
offer a better deal or lower prices. Conversely, when competitive rivalry is low, a company has greater
power to charge higher prices and set the terms of deals to achieve higher sales and profits.
For SLIC being an in the insurance industry, there are 24 competitors that are currently competitive and
highly competitive. There are many insurance companies that offer similar products, and they will increase
their competitiveness with low cost, high operational efficiency and excellent customer service.

2. Potential of New Entrants Into an Industry

A company's power is also affected by the force of new entrants into its market. The less time and money
it costs for a competitor to enter a company's market and be an effective competitor, the more an
established company's position could be significantly weakened. An industry with strong barriers to entry
is ideal for existing companies within that industry since the company would be able to charge higher
prices and negotiate better terms.

Many large companies, such as banks and financial institutions, offer the same insurance products. The
overall threat is not high if new participants are carried out under licenses and regulations. This might be a
threat for SLIC from the new entrants.

3. Powers of Suppliers
The next factor in the five forces model addresses how easily suppliers can drive up the cost of inputs. It is
affected by the number of suppliers of key inputs of a good or service, how unique these inputs are, and
how much it would cost a company to switch to another supplier. The fewer suppliers to an industry, the
more a company would depend on a supplier. As a result, the supplier has more power and can drive up
input costs and push for other advantages in trade. On the other hand, when there are many suppliers or
low switching costs between rival suppliers, a company can keep its input costs lower and enhance its
profits.
Because the agent has a high power of the customer database, i.e. the agent, he can control the customer's
decision making. Players can hire expert and executive talents.
4. Power of Customers
The ability that customers have to drive prices lower or their level of power is one of the five forces. It is
affected by how many buyers or customers a company has, how significant each customer is, and how
much it would cost a company to find new customers or markets for its output. A smaller and more
powerful client base means that each customer has more power to negotiate for lower prices and better
deals. A company that has many, smaller, independent customers will have an easier time charging higher
prices to increase profitability.
The company's customer bargaining power is high because it pays high premiums. If competitors offer
similar products, the cost will shift.

5. Threat of New Substitutes

The last of the five forces focuses on substitutes. Substitute goods or services that can be used in place of a
company's products or services pose a threat. Companies that produce goods or services for which there
are no close substitutes will have more power to increase prices and lock in favourable terms. When close
substitutes are available, customers will have the option to forgo buying a company's product, and a
company's power can be weakened. Understanding Porter's Five Forces and how they apply to an industry,
can enable a company to adjust its business strategy to better use its resources to generate higher earnings
for its investors. If the product has similarity, the customer can switch to another product.

2.14 PRODUCTS OFFERED BY SLIC

• Child Life Insurance Plans

• Term Life Insurance Plans

• Pension Life Insurance Plans

• Investment linked Life Insurance Plans

• Combi Life Insurance Plans

• Endowment Life Insurance Plans

• Group Life Insurance Plans

• Micro Life Insurance Plans

• Savings Plans
 • Women Life Insurance Plans

*(https://www.policybazaar.com/insurance-companies/shriram-life-insurance/)*

2.15 PRODUCTS EXPLAINED DURING INTERNSHIP

1. Shriram Assured Income Plan

It is a plan for an individual who wants to pay the premiums for 5 years and get the benefits for the 5 equal
instalments after maturity.

Key Features:

• It is a premium pay for 5 years.

• It is a life cover for 10 years.

• It is assured income for 5 years.

• In this, the premium you pay is lower and the benefit you receive is higher.

• Also there is additional benefit through riders.

Necessities for Assured Income Plan:-

• Age - Minimum is 8 years and Maximum is 65 years.

• Minimum premium is Rs. 20000 and Maximum there is no limit.

• Sum Assured – Below 55 years it is 10 times the yearly premium paid and Above 55 years it is 7 times the
yearly premium paid.

• Policy term is for 10 years – 5 years pay the premium and 5 years for relaxation.
Benefits – Shriram Assured Income Plan

• Returns are 20% of the sum assured.

• Tax Saving policy.

• Short term and risk free.

• In case of death or total and permanent disability due to accident during the rider term, we will pay
100% of the rider sum assured. Also, if the life assured becomes totally and permanently disabled
in an accident, we will waive off all the future premiums under the policy. The benefit under this
rider is applicable only once during the rider term.
 • In case of unfortunate event of death of the life assured during the rider cover term, sum assured
under rider will be paid to the nominee.

2. Super Income Plan

It is designed to satisfy the financial needs of individual and his family.

Key Features -

• Life insurance Cover till 75

• Guaranteed Maturity Sum Assured

• Flexibility to change Premium payment term

• Guaranteed Monthly Income till 75

• Wide range of Premium Payment Term

• Additional protection through Riders

Benefits-

1. Super Income Benefit - In case of survival of the life assured till the end of the premium paying
term, provided the policy is in force, a Super Income Benefit of fixed monthly amount will be paid
from the end of the premium paying term till the end of the policy term or until death, whichever is
earlier.
2. Maturity Benefit- In case of the survival of the life assured till the end of the policy term provided
the policy is in force, “Guaranteed Maturity Sum Assured” will be paid and the policy is
terminated. “Guaranteed Maturity Sum Assured” is equal to 5 times the
Annualized Premium.
3. Death Benefit - In case of death of the life assured during the Policy Term, provided the policy is
in force, an amount equal to higher of “Death Sum Assured” or Surrender
Benefit as applicable on the date of death will be paid in lump sum to the nominee(s) or beneficiary
(ies) and the policy is terminated. Any Super Income Benefit paid will not be recovered from the
death benefit.
4. Tax Benefits - Tax benefits as per prevailing tax laws. Tax benefits are subject to changes
according to the tax laws from time to time; please consult your tax advisor for details.
 Specifications:

• Age - Minimum is 25 years and Maximum is 50 years.

• Minimum premium is Rs. 30000 and Maximum there is no limit.

• Maturity age is 75 years fixed.

• Premium paying term is 10-25 years.

• Policy term is 75 minus the age of entry.

• Sum assured is 10 times the annual premium

2.16 SLIC DEPARTMENT

 CHAPTER – 3
RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific & systematic
search for pertinent information on a specific topic, in fact research is an art of scientific investigation.
Research Methodology is a scientific way to solve research problem. It may be understood as a science of
studying how research is doing scientifically. In it we study various steps that are generally adopted by
researchers in studying their research problem. It is necessary for researchers to know not only know
research method techniques but also technology. The research problem consists of series of closely related
activities. At times, the first step determines the native of the last step to be undertaken. Why a research
has been defined, what data has been collected and what a particular methods have been adopted and a
host of similar other questions are usually answered when we talk of research methodology concerning a
research problem or study.

3.1.1. RESEARCH DESIGN

A research design is defined as the specific methods and procedures for acquiring the information needed.
It is a plant or organizing framework for doing the study and collecting the data. Designing a research plan
requires decisions all the data sources, research approaches, research instruments, sampling plan and
contact methods.
Research design is mainly of following types:

1. Exploratory research

2. Descriptive research

3. Casual research

EXPLORATORY RESEARCH

The major purposes of exploratory studies are the identification of problems, the more precise
formulation of problems and the formulations of new alternative courses of action. The design of
exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.
DESCRIPTIVE RESEARCH

Descriptive research in contrast to exploratory research is marked by the prior formulation of specific
research questions. The investigator already knows a substantial amount about the research problem.
Perhaps as a result of an exploratory study, before the project is initiated.
Descriptive research is also characterized by a pre-planned and structured design.

CASUAL OR EXPERIMENTAL DESIGN

A casual design investigates the cause and effect relationships between two or more variables.

The hypothesis is tested and the experiment is done. There are following types of casual designs:

I. After only design

II. Before after design

III. Before after with control group design

IV. Four groups, six studies design

V. After only with control group design

VI. Consumer panel design

VII. Exposit factor design

3.2 PURPOSE OF STUDY

To know how many people are aware of Shriram Life Insurance

To find and analyse the factors affecting the investors choice in selecting life insurance in private
industry.

To analyse the services quality offered by the company that satisfies the needs of customer and
give suggestions to improve their marketing strategies.
3.3 SOURCES OF DATA COLLECTION
Data collection sources are basic data. These are the first data that researchers have gathered to achieve
their research goals. In this particular study, primary data were collected from 30 respondents with the
objectives of the study in mind.
3.3.1 PRIMARY DATA

Primary data were collected through observation, personal interview, discussion with managers and
employees of the various departments of the organization.

3.3.2 SECONDARY DATA

Secondary data were collected through literature review which includes company’s internal records,
publications, annual reports, journal, statutory report, website (official and others) etc.

3.3.3 ANALYSIS & INTERPRETATION

The data collected must be properly analysed to evaluate and enhance the data quality. The analysis is
done to identify the actual meaning of the data which helps in proper interpretation. Data analysis involves
working to uncover patterns and trends in data sets and data interpretation involves explaining those
patterns and trends.

3.3.4 SAMPLING DESIGN

The random sampling is done because any probability sampling procedure would require detailed
information about the universe, which is not easily available further, as it is being an exploratory research.
3.3.5 SAMPLE PROCEDURE
In this study “random sampling procedure is used. Random sampling is preferred because of some
limitation and the complexity. Area sampling is used in combination with random sampling so as to collect
the data from different regions of the city.
3.3.6 SAMPLING SIZE

The sampling size of the study is 50.

3.4 METHODS OF SAMPLING

3.4.1 PROBABILITY SAMPLING
It is also known as random sampling. Here, every item of the universe has an equal chance or probability
of being chosen for sample. Probability sampling may be taken inform of:
SIMPLE RANDOM SAMPLING
A simple random sample gives each member of the population an equal chance of being chosen. It is not a
haphazard sample as some people think. One way of achieving a simple random sample is to number each
element in the sampling frame (e.g. give everyone on the Electoral register a number) and then use random
numbers to select the required sample.
Random numbers can be obtained using your calculator, a spreadsheet, and printed tables of random
numbers, or by the more traditional methods of drawing slips of paper from a hat, tossing coins or rolling
dice.
SYSTEMATIC RANDOM SAMPLING
This is random sampling with a system from the sampling frame, a starting point is chosen at random, and
thereafter at regular intervals.

STRATIFIED RANDOM SAMPLING

With stratified random sampling, the population is first divided into a number of parts or 'strata' according
to some characteristic, chosen to be related to the major variables being studied. For this survey, the
variable of interest is the citizen's attitude to the redevelopment scheme, and the stratification factor will be
the values of the respondents' homes. This factor was chosen because it seems reasonable to suppose that it
will be related to people's attitudes.
CLUSTER AND AREA SAMPLING
Cluster sampling is a sampling technique used when "natural" groupings are evident in a statistical
population. It is often used in marketing research. In this technique, the total population is divided into
these groups (or clusters) and a sample of the groups is selected. Then the required information is collected
from the elements within each selected group. This may be done for every element in these groups or a
subsample of elements may be selected within each of these groups.
3.4.2NON PROBABILITY SAMPLING
It is also known as deliberate or purposive or judgemental sampling. In this type of sampling, every item in
the universe does not have an equal, chance of being included in a sample.
It is of following type:

CONVENIENCE SAMPLING
A convenience sample chooses the individuals on the basis of easiness to reach or convenience.

Convenience sampling does not represent the entire population so it is considered bias.
QUOTA SAMPLING
In quota sampling the selection of the sample is made by the interviewer, who has been given quotas to fill
form from specified sub-groups of the population.

JUDGMENT SAMPLING

The sampling technique used here in probability > Random Sampling.

3.5 DATA COLLECTION, INTERPRETATION & ANALYSIS

The data was collected through structured questionnaire.

DEMOGRAPHIC CHARACTERISTICS

GENDER

This is the gender of respondents which is taken into the study of the survey. It indicates that Male
candidates are the highest respondent to the study.
 AGE

From the survey the age group which respondent to the survey were between 31-45 years which is usually
the working people and those planning down their future.

INCOME LEVEL

From the survey the income level of 50 respondents vary and the major share is 10,000-20,000.
 OCCUPATION

From the survey the majority of the respondent are student and in service industry.

INSURANCE POLICY

From the survey it is clear that majority of the respondents have an insurance policy
 AWARNESS OF INVESTMENT PLAN

The respondents are very well aware about the investment plans which are offered by the insurance
company / agent.

AWARNESS OF SHRIRAM LIFE INSURANCE COMPANY

The respondents are aware about Shriram Life Insurance Company and few have some knowledge on the
same.
PREFER BUYING SHRIRAM LIFE INSURANCE
From the survey it is clear that many would prefer buying Shriram Life Insurance Policy and many even
respondent saying they might buy SLIC policy/plan.

EXPECTATION FROM INSURANCE COMPANY/AGENT

From the survey we can understand that the people are

Looking for Long term Investment / returns followed by Toll to protect the family. Some even want tax
saving scheme from their company/agent.
 AUTHENTICITY OF ONLINE INFORMATION

The respondents feel that the authenticity of online information by the insurance company / agent may be
authentic and many feel it not be. Since they don’t know how safe and trust worthy the company is.

COVID-19 BENEFIT BY INSURANCE COMPANY

Majority of the respondents are receiving COVID-19 benefits from their insurance company/ agent.
 KIND OF BENEFITS

Many of the respondents receive benefits such as new schemes to protect their family and easy premium
payment option during this COVID-19 period.
 MODE OF PREMIUM PAYMENT

Majority of the respondent pay yearly premium and many pay Quarterly as per their convince and their
monthly income.

CLARIFY QUERY

The respondents usually contact their agent to clarify their query and many check with the advisor
followed by customer care service and hardly people visit the company website.
}
 SATISFACTION WITH SERVICE

Majority of the respondents are almost satisfied with their Insurance Company provider and their services.

3.6 RESULTS

The findings which can be drawn from the survey conducted by me is summarised as follows:

❖ Majority of the respondents are male who have taken the survey and majority are in the age group of
31-45 years which indicate they have started working or run business and have plans to protect family
and look for long term investment.
❖ 60.8% of the respondents have insurance policy and the rest don’t have. The reason maybe they are not
aware of the company or didn’t find a trust worthy company.
❖ 58.8% of the respondent are aware about the investment plan which are available with the insurance
company/ agent and 27.5% of them are not aware about the same.
❖ 51% of the respondent are aware of Shriram Life Insurance Company and 35.3% of them are not aware
about SLIC and 13.7% of them have some knowledge about the company. ❖ As per the respondent
52.9% maybe buy Insurance policy from Shriram Life Insurance, 37.3% of them won’t purchase
policy/plan from Shriram Life Insurance Company and finally 9.8% of them will buy from SLIC.
❖ Majority of them ie 70.6% of the respondent except long term investment / return from the company ,
56.9% want it as a tool to protect their family and 29.4% want the company to provide them from tax
savings scheme.
❖ 43.1% of the respondent feel that authenticity of online insurance maybe true not fully,
 37.3% of the respondents feel no it’s not authentic and 19.6% feel it’s authentic.
❖ 52.9% of the respondent are receiving COVID-19 benefits. And 47.1% of them don’t receive.
❖ The benefit they are currently receiving are other benefits, 25.6% of them are getting easy premium
payment, and 20.5% of them are getting new schemes during this worldwide pandemic situation.
❖ 52.9% of the people pay the premium yearly , 19.6% of them pay Quarterly, 13.7% pay Monthly and
13.7% of them Half-Yearly premium depending on their income level and convenience.
❖ 37.3% of the people clarify their query through their agents, 21.6% through their advisor, 15.7% of
them through customer care service and 15.7% of them through branch manager and 9.8% of them
through the company profile.

❖ 43.1% of them are almost satisfied with their insurance company services and benefits,

15.7% of them are highly satisfied and 31.4% are not almost satisfied.

3.7 CONCLUSION

Insurance is a safeguard during uncertainty which occurs in future. When Shriram Life Insurance was started
they made profits in three consecutive years which says that being a private industry player they have achieved
the distinction. When compared to competitors after the 7 years of operation, Shriram Life Insurance was the
most profit making life insurance industry which indicates the increase in company image. They have products
which are of low premium and premium paying term is very less where they have focused on meeting the basic
requirements.
They also have an additional rider which is optional it is protect against disability and compensate during the
time of critical illness or surgeries. The competition in insurance industry is rising day by day. Consumers look
for the product which have different and flexible options and customize according to the needs of the
consumer.
Many of the consumers are planning to have a safeguard to their life in future coming days mostly for their
retirement period. Insurance industry should change their product plans according to the changing needs or
requirement of the consumer.
Therefore I would like to conclude by saying that people want insurance policy / plan which will secure their
family in the long run and provide them with benefits during crisis. And also get them satisfactory returns.
They want the company to be transparent and share all details with them during the time of selling policy.
 BIBLIOGRAPHY

• http://shriramcapital.com/
• https://www.shriramcity.in/corporate/shriram-group
• https://shriramlife.com/
• https://www.irdai.gov.in/Defaulthome.aspx?Page=H1
• https://www.sanlam.com/Pages/default.aspx
• https://www.coverfox.com/life-insurance/life-insurance-companies/shriram-
lifeinsurance/#:~:text=Benefits%20of%20Shriram%20Life%20Insurance&text=Flexibi
lity%3AFlexible%20premium%20and%20payout%20options.&text=Customer%20
Service%3AOffers%20good%2C%20hassle,of%20Income%20Tax%20Act%2C%2
01961.

• https://www.investopedia.com/terms/p/porter.asp
• https://www.policybazaar.com/insurance-companies/shriram-life-insurance/
• https://en.wikipedia.org/wiki/Methodology