SUMMER TRAINING REPORT

ON

“A STUDY ON PERCEPTION OF INVESTORS INVESTING IN LIFE

INSURANCE SECTOR”

Undertaken at
INSPLORE TLS CONSULTANTS PVT. LTD.

Submitted in partial fulfilment of the

requirements for the award of the degree of
Bachelor of Business Administration (BBA)
to
Guru Gobind Singh Indraprastha University (GGSIPU), Delhi

ACADEMIC SESSION: 2021-24

UNDER THE GUIDANCE OF: - SUBMITTED BY: -

Dr. PUSHPA RANI NAME - VANSHIKA BANSAL
ASSISTANT PROFESSOR ENROLLMENT NO. - 07617001721
PROGRAMME - BBA
SEMESTER – 5th
DIVISION - B
SHIFT - 1st

1
 CERTIFICATE

To Whom It May Concern

I Vanshika Bansal, Enrolment No. 07617001721 from BBA-V Sem, Shift 1st of the Tecnia Institute of
Advanced Studies, Delhi hereby declare that the Summer Training Report entitled “A STUDY ON
PERCEPTION OF INVESTORS INVESTING IN LIFE INSURANCE SECTOR ” at Insplore TLS
Consultants Pvt. Ltd. is an original work and the same has not been submitted to any other Institute for
the award of any other degree. A presentation of the Project Report was made on 25-10-23, and the
suggestions as approved by the faculty were duly incorporated.

Date: Signature of the Student

Certified that the Project Report submitted in partial fulfilment of Bachelor of Business Administration
(BBA) to be awarded by G.G.S.I.P. University, Delhi by Vanshika Bansal, Enrolment No. 07617001721
has been completed under my guidance and is Satisfactory.

Date: Signature of the Guide

Name of the Guide: DR. PUSHPA RANI

Designation: ASSISTANT PROFESSOR

2
 ACKNOWLEDGMENT

A project is never the work of an individual. It is moreover the combination of suggestions, ideas, review,
guidance, and contribution. The success and outcome of this project required a lot of guidance and assistance.

I take this opportunity to express my profound and deep regards to my faculty guide DR. PUSHPA RANI
for his exemplary guidance, monitoring, and constant encouragement throughout the course of this project.
The blessing, help and guidance given by him from time to time shall carry me a long way in the journey
of life on which I am about to embark.

VANSHIKA BANSAL

Enrollment no.

[07617001721]

3
SUMMER INTERNSHIP CERTIFICATE

4
 DECLARATION

I, the undersigned student of BBA (general) 5th semester at TECNIA INSTITUTE OF ADVANCED
STUDIES hereby solemnly declares that the project entitled “A STUDY ON PERCEPTION OF
INVESTORS INVESTING IN LIFE INSURANCE SECTOR “is the outcome of my own research
prepared by me under the guidance of my assistant professor DR. PUSHPA RANI.

To the best of my knowledge, any part of this context has not been submitted earlier for any degree, diploma,
or certificate examination. The basic purpose to take a project report was for retaining practical experience
of work in a particular field.

Vanshika Bansal

ENROLLMENT NO.

[07617001721]

5
 INDEX

Chapter No. Title of the Chapter Page no.

1 Certificate 2

2 Acknowledgement 3

3 Summer Internship Certificate 4

4 Student Declaration 5

5 Executive Summary 7 - 13

6 Chapter I: Introduction 14 - 25

7 Chapter II : Review Of Literature 26 – 28

8 Chapter III: Company Overview 29 - 38

9 Chapter IV: Research Methodology 39 – 43

10 Chapter V: Data Analysis & 44 – 52

Interpretation

11 Chapter VI: Conclusions 53 – 54

12 Recommendations 55

13 Limitations 56

14 Appendix- Questionnaire 57-59

15 References/ Bibliography 60

6
Executive Summary

Bank of Baroda is one of the leading commercial public sector banks in India. The Banks solutions
includes personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit
cards, services and lockers; business banking, which includes deposits, loans and advances, services and
lockers; corporate banking, which includes wholesale banking, deposits, loans and advances and services,
and international business, which includes Non-Resident Indian (NRI) Services, Foreign Currency
Credits, ECB, Offshore Banking, Export Finance, Import Finance, Correspondent Banking, Trade Finance
and International Treasury. The Bank offers services, such as domestic operations and For-ex operations.
They also offer rural banking services, which include deposits, priority sector advances, remittance,
collection services, pension, and lockers. They also offer fee-based services such as cash management and
remittance services. The Bank is having their head office located at Baroda and their corporate office is
located at Mumbai. Bank of Baroda is one of India’s largest banks and as on December 2020, the bank
has a strong domestic presence spanning 8,246 domestic branches and 11,553 ATMs & Cash Recyclers
supported by self-service channels. The bank has a significant international presence with a network of
99 overseas branches/offices subsidiaries, spanning 21 countries. The bank has wholly owned subsidiaries
including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank
of Baroda also has a joint venture for life insurance business with India First Life Insurance. The bank
owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely
Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.
Bank of Baroda was incorporated on July 20, 1908, as a as a private bank with the name The Bank of
Baroda Ltd. The Bank was established with a paid-up capital of Rs 1 million and was founded by Maharaja
Sayajirao III of Baroda. In the year 1910, the Bank opened their first branch in the city of Ahmedabad. In
the year 1919, they opened their first branch in Mumbai City. In the year 1953, the Bank opened first
international branch at Mombasa, Kenya. During the period 1953-1969, the Bank opened three branches
in Fiji, five branches in Kenya, three branches in Uganda and one each in London and Guyana. In the year
1958, The Hind Bank merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated
with the Bank. In the year 1964, The Margono Peoples Bank & Tamil Nadu Central Bank amalgamated
with the Bank. In July 1969, the Bank was nationalized, and the name was changed from The Bank of
Baroda Ltd to Bank of Baroda. During the period 1969 to 1974, they established three branches in
Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich Gulf countries in the
year 1974 with two branches were opened in UAE, one at Dubai and another at Abu Dhabi. In the year
1976, the Bank sponsored the first of their 19 Regional Rural Banks thereby seeking to complement their
operations in rural heartland. In the year 1977, they launched the Gram Vikas Kendra (GVK), an
innovative model for integrated rural development. In the year 1984, the Bank launched their Credit Card
Operations. In the year 1988, The Traders Bank Ltd amalgamated with the Bank. In the year 1991, the
Bank established their housing finance subsidiary, BOB Housing. They also established subsidiaries for
businesses of credit cards (BOBCARDS), asset management (BOB AMC) and capital market activities
7
(BOB Caps). In December 1996, the Bank entered the capital market with an Initial Public Offering. In
the year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as a
depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the year 2000,
the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for setting up
Comprehensive Risk Management Architecture for the Bank. In the year 2001, they established a separate
Risk Management Department and specialized integrated treasury branch. In the year 2002, The Benares
State Bank Ltd merged with the Bank. They launched Debit Card project in affiliation with VISA. In the
year 2004, The South Gujarat Local Area Bank amalgamated with the Bank. In June 1, 2004, the Bank
signed a MoU with National Insurance Company Ltd for selling their non life insurance products under
corporate agency arrangement. During the year 2004-05, the Bank expanded their interconnected ATM
network to cross 501, spread over 180 centres in the country. The bank also introduced 8AM to 8PM
banking at 101 branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled
Business Transformation Program and signed the contract with Hewlett Packard. They launched Multicity
cheque facility. In the year 2006, the Bank established an Offshore Banking Unit (OBU) in Singapore.
They commissioned 464 new ATMs across the country taking the tally to 634 Nos. In the year 2007, the
Bank identified Legal & General, the UK-based life insurance company as a partner for their life-insurance
venture with initial capital of about Rs 200 crore. In April 2007, the Bank opened Gen-Next, the youth-
oriented branch. In May 2007, they signed an agreement with Dun & Bradstreet (D&B) regarding assign
ratings to the banks small-scale industry (SSI) customers. In October 6, 2007, the Bank made a tie up with
Pioneer Global Asset Management Spa, Italy for launching joint venture for asset management business
(Baroda Pioneer Asset Management Company). The joint venture would first offer products of Indian
origin and later bring international investment opportunities to the Indian market. They launched sale of
Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban Retail Loan
Factories (URLFs) at Powai Mumbai, Agra, Bareli, Bhopal, Nagpur, Ernakulam, Jodhpur, and Noida.
They launched new loan products, namely Loan for Earnest Money Deposit, Baroda Additional Assured
Advance to NRIs, Baroda Bachata Mitra, Baroda Car Loan to HNIs/ Corporates, Baroda Advance Against
Gold ornaments/ Jewellery/Gold Coins and Special Home Loans package. During the year, the Bank
signed a MoU with number of car manufacturing companies viz. Maruti Suzuki India Ltd, Tata Motors
Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They
made a tie up with Kotak Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to
Education Loan borrowers and Home Loan borrowers sanctioned under a special package. During the
year, the Bank opened four new branches/offices, viz. Branch at Guangzhou (China), Electronic Banking
Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru (Kenya).

In July 2008, they received the license from the China Banking Regulatory Commission (CBRC) for their
full-fledged branch in Guangzhou City in the Guangdong Province. Also, the online home loan application
facility was made available with tracking of status of the application from July 20, 2008.During the year
2009-10, the Bank opened 6 new Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna,

8
Coimbatore, Ranchi and Allahabad. They established three SME Loan Factories during the year. In June
22, 2009, the Bank launched a new business process reengineering and organizational restructuring project
Navnirman- Baroda Next. In September 2009, the Bank brought all the branches of the Bank on CBS
platform to offer Anywhere Anytime banking to all its customers. All the branches of the Bank have been
enabled to provide e-banking services as well as electronic fund transfer facilities by way of real time
gross settlement (RTGS) and National Exchange Fund Transfer (NEFT) to its customers.

In October 10, 2009, the Bank launched a new subsidy linked housing loan scheme under the Banks
Home Loan Product styled as Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). In
November 2009, the Bank entered into definitive agreement with T Rowe Price for proposed divestment
of 6.50% stake in UTI Asset Management Company and UTI Trustee Company. In November 16, 2009,
the Bank entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company
namely India First Life Insurance Company Limited where Bank of Baroda holds 40% stake, together
with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the Bank signed
Corporate Agency Agreement with their joint venture company in life insurance, India First Life Insurance
Co Ltd, to market their life insurance products under wealth management services. In the year 2010, the
Bank received a commercial banking license from Malaysia to a locally incorporated bank, namely India
BIA Bank (Malaysia), to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank.
The Bank opened a branch in Auckland, New Zealand, and also opened their tenth branch in the United
Kingdom. In July 2010, the Bank signed an agreement with the Unique Identification Authority of India
(UIDAI) to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and
demographic details of their customers as well as others. In August 2010, the Bank signed a Memorandum
of Co-operation (MoC) with the Dubai Multi Commodities Centre Authority (DMCC), a free zone
authority dedicated to enhancing trade flows through Dubai. The MoC is designed to provide value-added
services to DMCC-registered companies and further enhance the proposition of operating in the Jumeirah
Lake Towers (JLT) Free Zone. Also, DMCC and the Bank will share knowledge through seminars,
workshops and exchange of faculty. During the year 2010-11, the Bank opened seven new
branches/offices (including the ones for its overseas subsidiaries). A branch was opened at Ilford, Essex
(UK) and five Electronic Banking Service Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais,
Dubai, Sh. Zayed Road, Dubai, Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New
Zealand, Bank of Baroda (New Zealand), commenced operations with the opening of branch at
Auckland.During the year, the Bank launched a new Retail Asset Product styled as Baroda Traders Loan
against the Security of Gold Ornaments/Jewelleries. They launched a Retail Asset scheme under Baroda
Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a new Term
Deposit Product styled as Baroda Utsav Deposit Scheme for 444 days at the interest rate of 8.10% which
was revised from time to time. During the year, the Bank opened a new Gen-next branch in NOIDA. Also,
they opened five new Retail Loan Factories at Karol Bagh New Delhi, Raipur, Ludhiana and Nasik,
whereas one existing RLF at Jodhpur was closed. In January 15, 2011, the Bank launched two new Retail

9
Liability Products under Savings Bank Segment styled as Baroda Pensioners Savings Account and a Life
Insurance linked Savings product styled as Baroda Jeevan Suraksha Savings Account under a tie-up
arrangement with India First Life Insurance Company. On 29 March 2011, Bank of Baroda allotted 2.72
crore equity shares at issue price of Rs 902.14 per share amounting to Rs 2461 crore on preferential basis
to Government of India. On 29 February 2012, Bank of Baroda announced that Banco Bilbao Vizcaya
Argentaria (BBVA) has informed the bank that it may not be able to proceed further with regard to a
proposed joint venture regarding credit card business. Earlier, Bank of Baroda had entered into a
Memorandum of Understanding (MOU) with BBVA for a joint venture regarding credit card business. 30
Mar 2012, Bank of Baroda informed the stock exchanges that the bank has allotted 1.95 crore equity
shares at issue price of Rs 840.10 per share aggregating to Rs 1644.68 crore to Life Insurance Corporation
of India on preferential basis.On 12 March 2013, the Allotment Committee of Bank Baroda issued and
allotted 1.01 crore equity shares at issue price of Rs 838.85 per share aggregating to Rs 850 crore to
Government of India (President of India) on preferential basis, as per SEBI Guidelines.

On 18 January 2014, the Allotment Committee of Bank Baroda issued and allotted 81.58 lakh equity
shares at issue price of Rs 674.12 per share aggregating to Rs 550 crore to Government of India on
preferential basis.On 9 July 2014, Bank of Baroda announced that the bank acting through its London
branch, has issued fixed rate Senior Unsecured Notes amounting to USD 250 million on 8 July 2014 under
Regulation-S by way of tapping/re-opening of its Senior Unsecured Notes of USD 750 million originally
issued on 23 January 2014 and maturing on 23 July 2019. The notes are issued to meet the present/future
long term funding requirement at the overseas centres of the bank.The Board of Directors of Bank of
Baroda at its meeting held on 27 September 2014 accorded an in-principle approval for the sub-division
of one equity share of the face value of Rs 10 each into five equity shares of face value of Rs 2 each.On
31 March 2015, Bank of Baroda issued and allotted 6.44 crore equity shares at an issue price of Rs 195.59
per equity share amounting to Rs 1260 crore to Government of India on preferential basis.On 29
September 2015, Bank of Baroda issued and allotted 9.26 crore equity shares at an issue price of Rs 192.74
per equity share amounting to Rs 1786 crore to Government of India on preferential basis.On 25 July
2016, Bank of Baroda announced that the Reserve Bank of India has imposed a penalty of Rs 5 crore on
the bank. The RBI carried out the investigation and noted the deficiencies, which were reflective of
weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as
monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. Bank of Baroda
said in a statement that the bank has implemented a comprehensive corrective action plan, to strengthen
internal controls and to ensure that such incidents do not recur.On 15 October 2016, Bank of Baroda
announced that the bank has initiated the process of raising funds through issuance of Basel III compliant
AT-I (Additional Tier-I Capital) Bonds, i.e. Perpetual Debt Instrument, as per the regulatory definitions of
the Reserve Banks of India of Rs 1000 crore with Green Shoe Option of Rs 1000 crore on private
placement basis.On 3 May 2017, Bank of Baroda announced that the bank has elected to exercise its
option to redeem all outstanding US$ 300 million Upper Tier-II Subordinated Notes (the Notes) on 25

10
May 2017. The Notes were issued by the bank acting through its London Branch on 24 May 2007 pursuant
to the banks US$ 3 billion Medium Term Note Programme (the MTN Programme) listed with Singapore
Stock Exchange.On 23 November 2017, Bank of Baroda announced that it has entered into a
Memorandum of Understanding (MoU) with CGR Collateral Management Ltd with an objective to
provide collateral management services to the borrowers who are availing the facility of loan against
warehouse receipt through the network of Bank of Baroda branches across the country.

CGR Collateral Management Ltd is engaged in providing warehouse management services relating to
commodities and inventories and complete Agri business solutions to farmers. On 28 December 2017,
Bank of Baroda announced that it has entered into an agreement with UniCredit S.p.A. to acquire their
entire stake in Baroda Pioneer Asset Management Company, thus increasing its shareholding to 100%. Its
foreign partner Pioneer Investments will exit the venture. The move comes on the back of the acquisition
of Pioneer Investments by Amundi earlier this year. Amundi already has a presence in an Indian asset
management company. On 18 January 2018, Bank of Baroda announced its on boarding on all 3 RBI
approved Trade Receivables Discounting System (TReDS) platforms, thereby becoming the first bank to
support this novel Fintech initiative by RBI.On 12 February 2018, Bank of Baroda announced that in line
with the banks strategic plan for rationalization of overseas branches, the bank is exiting from its
operations in South Africa. The business of the bank in South Africa is not very significant and the exit
will not have any major impact on the financials of the bank. On 14 February 2018, Bank of Baroda
announced that it has entered into a Memorandum of Understanding (MoU) with Small Farmers
Agribusiness Consortium (SFAC) as a preferred bank for the State of Maharashtra. The bank will play an
active role in promoting quality investments in the agri business sector and provide collateral free loans
to Farmers Producer Companies (FPCs) in Maharashtra under the Credit Guarantee Scheme of SFAC.
SFAC is an autonomous society promoted by Ministry of Agriculture, Cooperation and Farmers Welfare,
Government of India which is pioneering inclusive growth of small and marginal farmers engaged in
agribusiness activities.On 6 March 2018, Bank of Baroda announced that it has entered into a
Memorandum of Understanding (MoU) with National e-Repository Limited (NERL).

The MoU with NERL will provide the bank an access to IT based ecosystem for management of life cycle
of negotiable warehouse receipts (NWRs) in electronic form. On 27 March 2018, Bank of Baroda
announced the issue and allotment of 34.13 crore shares at an issue price of Rs 157.46 per share amounting
to Rs 5375 crore to Government of India on preferential basis.During FY 2019, the Bank opened 22 new
rural and semi-urban branches.During the year 2019, Bank closed down its Offshore Banking Unit at
Bahamas, wholesale banking unit in Bahrain, and surrendered banking license of subsidiary at Ghana
which had three branches. Further, Muttrah branch at Oman was merged with the Greater Muttrah branch
and Durban branch was merged with Johannesburg branch in South Africa. The rationalisation of
operations based on the strategic review is continuing.During the year 2019, Bank has developed
customised software for the e-LC solution for Ministry of Defence. Bank of Baroda is the only Public
Sector Bank to launch e-KVP utility through banks. The Bank has integrated itself on the e-PCS portal of
11
Indian Port Association for all the 3 major ports across India. An MOU with the Kandla Port has been
signed.During the year 2019, the Bank opened 55 new domestic branches and closed/merged 10. Of the
new branches, two were high-tech digital branches and 9 digital portable branches. In international
operations, Bank opened an Offshore International Banking Unit (OIBU) in International Financial
Service Centre (IFSC), GIFT City, Gandhinagar, Gujarat and closed its representative office in Bangkok,
Thailand and one electronic banking service unit in UAE.In FY2019, Bank opened 3 new branches and
established 5 loan-processing units named as Naini Loan Points (NLPs) at different locations. Bank
installed 11 white label ATMs taking the total to 24 such ATMs and installed 772 POS machines.During
the year 2019, Bank entered into an agreement with UniCredit S.P.A.(the parent company of Pioneer
Global Asset Management SpA) to buy its 51% stake in the company, subject to regulatory approvals.
Post completion of the transaction, the Bank will own 100% of the asset.During FY 2020, credit growth
increased to Rs 6,90,121 crore within which domestic advances of the Bank amounted to Rs 5,70,341
crore. The increase in domestic advances was led by retail loans and agriculture loans. Retail loan
increased to Rs 1,20,657 crore led by home and auto loans at Rs 83,012 crore and Rs 16,490 crore
respectively. With this, the ratio of retail loans to total domestic loans increased to 19.8% during the year.

The international loan book grew by 21.4% to Rs 1,19,731 crore as on 31 March 2020. The total assets of
the Bank increased to Rs 11,57,915 crore as on 31 March 2020.During the FY2020,Vijaya Bank and Dena
Bank were amalgamated with Bank of Baroda. In pursuant to the scheme of Amalgamation of Vijaya Bank
and Dena Bank with Bank of Baroda, and based on the Swap Ratio agreed upon between the banks on 02
January 2019. The bank has allotted the following shares to the shareholders to the erstwhile Vijaya Bank
and erstwhile Dena Bank on 01 April 2019. i. 52,42,00,772 fully paid up equity shares of face value of
Rs. 2/- each of Bank of Baroda aggregating Rs 104,84,01,544/- be issued and allotted to equity
shareholders of Vijaya Bank.ii. 24,84,51,166 fully paid up equity shares of face value of Rs. 2/- each of
Bank of Baroda aggregating Rs 49,69,02,332/- be issued and allotted to equity shareholders of Dena Bank.
After the allotment of the above shares the Shareholding of the Government of India (the promoter
shareholder) increased from 63.26% (69.23% including Share Application money) to 71.60% as at on
31March 2020.

The Bank entered into a MoU with Government of Gujarat for hassle free finance to MSME borrowers
and to be the preferred Bank under the Government of Gujarats portal for the new entrepreneurs in the
identified industrial area. As on 31 March 2020, the banks distribution network stood at 9,482 domestic
branches, 101 overseas branches, 13193 ATMs & cash recyclers.During the FY2020, the Bank awarded
National award for SHG bank linkage 2018-19 by DAY-NRLM, Government at New Delhi. The Bank
received The Excellence Award under Gold Category for outstanding performance in implementation of
NBCFDC Loans in the public sector schemes on the occasion of 28th foundation day of NBCFDC. The
Bank bagged Silver at SAMMIE 2019 - Best Social Media Brand Award (BFSI - banking category).

12
The Bank secured 1st position and has been awarded Top Performer in New Accounts Opened under PSU
Bank category, at NSDL Star Performer Awards 2019, at TajLands End, Mumbai.In December 2020,the
bank signed a Memorandum of Understanding (MoU) with Indian Navy and Indian Coast Guard and
renewed its existing MoU with the Indian Army, to offer specially customized banking services through
Baroda Military Salary Package, The Bank has made the same arrangement with Indian Air Force also,
thereby covering all the four Armed Forces under Ministry of Defence. A similar package has been
introduced by the Bank for the Central Armed Police Forces also.In January 2021,the bank signed a
memorandum of understanding (MOU) with the Small Industries Development Bank of India (SIDBI) to
support MSME enterprises with an online facility of submitting their loan restructuring proposal. The
Govt. of India and RBI has come up with several measures to extend relief to MSMEs to tide over the
present pressing times post pandemic COVID-19. Furthermore, RBI has extended the One-Time
Restructuring (OTR) window till March 2021 to provide relief to MSMEs under financial stress, with
credit exposure up to Rs. 25 crores. In this backdrop, Bank of Baroda has entered into MoU arrangement
with SIDBI for a web-based platform namely Asset Restructuring Module for MSMEs (ARM-
MSME).During FY 2021, Bank raised capital through the Qualified Institutional Placement route (QIP)
amounting to Rs 4,500 crore.

Bank issued and allotted 55.08 crore equity shares to eligible qualified institutional buyers at the issue
price of Rs 81.70 per equity share. New retail asset products such as Personal Loan under COVID -19
Scheme for individual existing borrowers, Baroda Personal Loan to Government Employees Salary
Account customers and pre-approved loan for liability customers were launched during the year 2021.
The Bank introduced SB account linked insurance products in partnership with TATA AIG, Max Bupa and
Star Health Insurance Company and opened 1.73 lakh insurance linked SB accounts during FY 2021.
During the year 2021, Bank entered into MoU arrangement with Daimler India Commercial Vehicles Pvt.
Ltd. (Bharat Benz).As on 31 March 2021, the banks distribution network stood at 8,214 domestic
branches, 96 overseas branches, 11633 ATMs & cash recyclers.

The Bank opened 13 new domestic branches and merged 1,281 branches with existing branches during
FY 2021.As on 31 March 2022, the Banks distribution network stood at 8,168 domestic branches, 94
overseas branches, 11633 ATMs & cash recyclers. It opened new 9 domestic branches and merged 55
branches with existing branches during FY 2022.As on 31 March 2023, the Banks distribution network
stood at 8,200 domestic branches, 93 overseas branches, 11401 ATMs & cash recyclers. It opened new 73
domestic branches and merged 41 branches with existing branches during FY 2023.

13
CHAPTER-1
INTRODUCTION

14
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
15
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 ensure 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 to 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

16
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 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

17
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.

18
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
19
 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.

20
1.7 LIST OF LIFE INSURANCE COMPANIES

Life Insurance Companies in India

Claim Settlement
S. No.
Ratio

97.15%
Aditya Birla Sun Life Insurance
1
Company

2 AEGON Life Insurance Company 96.45%

3 Aviva Life Insurance Company 96.06%

95.01%
Bajaj Allianz Life Insurance
4
Company

97.28%
Bharti AXA Life Insurance
5
Company

94.04%
Canara HSBC OBC Life Insurance
6
Company

7 Edelweiss Tokio Life Insurance 95.82%

Company

8 Exide Life Insurance Company 97.03%

95.16%
Future Generali Life Insurance
9
Company

10 HDFC Life Insurance Company 99.04%

98.58%
ICICI Prudential Life Insurance
11
Company

21
 95.79%
IDBI Federal Life Insurance
12
Company

13 IndiaFirst Life Insurance Company 92.82%

14 Kotak Life Insurance Company 97.40%

97.79%
Life Insurance Corporation of India
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%

96.74%
Star Union Dai-ichi Life Insurance
23
Company

24 Tata AIA Life Insurance Company 99.07%

22
1.8 LIFE INSURANCE MARKET SHARE

23
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.

24
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. \

25
CHAPTER-2

REVIEW OF LITERATURE

26
Investor Behaviour in Financial Markets:
Explore studies on general investor behaviour to understand how individuals approach investment
decisions.
Look into literature on risk tolerance, risk perception, and the psychological factors influencing investment
choices.

Insurance Sector Perception:

Investigate research specific to the insurance industry and how investors perceive it compared to other
investment options.
Examine studies on the factors influencing investor confidence or scepticism in the life insurance sector.

Risk Perception in Life Insurance:

Focus on how investors perceive the risks associated with life insurance products.
Analyse studies that delve into the factors influencing risk perception, such as policy complexity, product
transparency, and historical performance.

Financial Literacy and Investor Understanding:

Explore literature on the level of financial literacy among investors and how it correlates with their
understanding of life insurance products.
Look into studies on the impact of financial education programs on investor perception and decision-
making.

Market Trends and Regulatory Environment:

Investigate the impact of market trends and regulatory changes on investor perception in the life insurance
sector.
Examine how changes in policies or market dynamics influence investor trust and decision-making.

Comparative Analysis with Other Investment Options:

Compare investor perception of life insurance with other investment options, such as stocks, bonds, and
mutual funds.
Analyse studies that explore the factors influencing investors to choose or avoid life insurance over
alternative investments.

Customer Satisfaction and Loyalty:

Look into research on customer satisfaction and loyalty in the life insurance sector.
Explore studies that link positive investor experiences with increased trust and likelihood of
recommending life insurance to others.

27
Cultural and Demographic Influences:
Investigate how cultural and demographic factors influence investor perception in different regions.
Analyse studies that highlight the role of cultural attitudes towards insurance and how demographic
variables impact investment choices.

28
CHAPTER-3
COMPANY OVERVIEW

29
2.1 Insplore Consultants
NSPLORE is the choice of Multinationals and leading Indian Businesses because it is the preferred talent
acquisition partner for them. Our Experts are helping the talent seeker and the Job Seeker to find each
other: We Inspire, You Explore.

We, as an expert in financial advisory, realise the need of every customer who is looking for financial
independence and help them to reach that level of financial freedom. We understand how the perception
regarding the value of money changes as per different individuals’ desires. We extend a helping hand to
customers by assisting them in making crucial financial decisions and managing their wealth effectively to
ensure that our customers stay stress free and get rid of their financial worries.

We believe in timely adaptation with the dynamic environment in order to deal with any challenges ahead with
utmost enthusiasm because we understand the importance of taking the right action at the right time to cope
with the dynamic environment.

Hiring the right people takes time, the right questions & a healthy dose
of Curiosity.

INSPLORE is the dynamic organization which thrives on smart working and also seeks to provide adequate
opportunities for our people to relish while working. The company involves the activities like trips in India &
Abroad, fun activities at workplace and various social events and this is perceptible when you will join
INSPLORE.

All through the year, various events are arranged which includes awarding ceremony for best employees.
These events work as a motivation factor for the employees to work more enthusiastically. It also provides an
opportunity to interact and socialize with the associates and other colleagues across India.

INSPLORE provides an employee friendly work culture by giving them opportunity to discuss new ideas,
reward and recognitions for their performance, training in case of discrepancy. The support of Senior Managers
is quite encouraging that they respect every individual's idea and value their work by meeting them time to
time. There is definitely a healthy work environment in terms of mental and physical heath. There are good
practices and initiatives that provides the employees with no stress at work and no overburdening of work.

It is our ambition to make the work culture adaptable for our employees so that they can give us the maximum
output while maintaining their work life balance.

30
2.2 VISION & MISSION OF INSPLORE CONSULTANTS

Our Mission

We thrive to provide best wealth management advice through honest financial solutions as well as inspire the
candidates to explore job opportunities across various industrial sector.

Our Vision

Our vision is to become the most trusted financial advisor as well as most valuable recruitment service
provider.

2.3 KEY PERSONS

❖ The company has 2 directors and no reported key management personnel.

❖ The longest serving director currently on board is Himalaya Sethi who was appointed on 01 January
2018. Himalaya Sethi has been on the board for more than 5 years. The most recently appointed director
is Chetna Gumber, who was appointed on 12 July 2023.
❖ Chetna Gumber has the largest number of other directorships with a seat at a total of 3 companies. In
total, the company is connected to 2 other companies through its directors.

2.4 BENEFITS
• 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.

31
 • Tax benefits: Save tax on all premiums and pay-outs under the section 80C and 10(10D) of Income
Tax Act, 1961.

2.5 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.

32
2.6 POTERS FIVE FORCE MODEL

1. Competition in the Industry

The first of the five forces refer 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.

33
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,

34
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.

2.7 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

2.8 PRODUCTS EXPLAINED DURING INTERNSHIP

1. India First Life Guaranteed Protection Plus 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.

35
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

• 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.
36
 • 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. India first Life Guaranteed Radiance Smart Invest 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 Rid

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

37
 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.

38
CHAPTER – 4
RESEARCH
METHODOLOGY

39
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 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.

40
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:

1. After only design

2. Before after design
3. Before after with control group design
4. Four groups, six studies design
5. After only with control group design
6. Consumer panel design
7. 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 study, primary data were collected from 30 respondents with the objectives of
the study in mind.

41
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 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 to collect the
data from different regions of the city.

3.3.6 SAMPLING SIZE

The sampling size of the study is 100.

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.

42
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.

3.4.2 NON-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 based on 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.

43
CHAPTER - 5
DATA INTERPRETATION &
ANALYSIS

44
FINDINGS

INTERPRETATION: - The above diagram shows that 45% of the people consider Premium affordability
as a most important factor, 24% consider Investment returns, 19% Policy coverage options and 12%
consider brand reputation.

INTERPRETATION:- The above diagram shows that 50% of the people perceive risk as uncertain while
investing, 11% sees low risk, 27% sees moderate risk and 12% sees high risk while investing.

45
INTERPRETATION:- The above diagram shows that 49% of people find universal life insurance policy
most appealing, 13% find whole life insurance appealing, 13% find variable life insurance appealing and
25% find term life insurance appealing.

INTERPRETATION:- The above diagram shows that 46% people primary motivation for investing is
financial security for family, 15% do for tax benefit, 26% do for retirement and 13% people motive is for
estate planning.

46
INTERPRETATION:- The above diagram shows that 50% of the people are somewhat knowledgeable
about the life insurance products, 21% are very knowledgeable, 16% are not very knowledgeable and 13%
are not at all knowledgeable.

INTERPRETATION:- The above diagram shows that 48% people agree that life insurance is a good
long-term investment, 22% strongly agrees, 16% disagrees and 14% people strongly disagree.

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INTERPRETATION:- The above diagram shows that for 51% of people reputation of insurance
company is extremely important, 20% says important, 17% says somewhat important and 12% says not
important.

INTERPRETATION:- The above diagram shows that 49% of people are somewhat comfortable with
idea of medical exams for life insurance policies, 15% are very comfortable , 22% are not very comfortable
and 14% are not at all comfortable.

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INTERPRETATION:- The above diagram shows that 16% of people are more inclined towards
guaranteed returns, 11% like variable returns, 53% people like a mix of both and 20% of people are unsure.

INTERPRETATION:- The above diagram shows that 51% people expect complete transparency, 22%
expect high transparency, 15% do moderate transparency and 12% expect limited transparency.

49
INTERPRETATION:- The above diagram shows that for 51% of people it is important, for 19% it is
extremely important, 18% says somewhat important and for 12% it is not important.

INTERPRETATION:- The above diagram shows that 20% of people prefer online channel, 46% prefer
offline channel and 17% prefer no preference and depends on the policy.

50
INTERPRETATION:- The above diagram shows that 48% of people find life insurance essential, 20%
find important but not essential, 17% find it supplementary and 15% of people find it unnecessary.

INTERPRETATION:- The above diagram shows that 47% of people will switch their policy for a better
one, 22% is maybe, 15% are unlikely to unless forced and 16% are saying no they are loyal to their current
provider.

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INTERPRETATION:- The above diagram shows that 45% people review annually their life insurance
policies, 16% do every few years, 23% do rarely and 16% never review their life insurance policies.

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CHAPTER - 6
CONCLUSION

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1. Positive Perception of Life Insurance as an Investment: The research shows that many investors have
a favourable opinion of life insurance as a tool for investing. They could see it as a safe approach to
ensure the financial security of their family while also generating rewards.

2. Risk Aversion Plays a Key Role: Investors in the life insurance industry shows a preference for low-
risk or guaranteed-return products, which is important to consider. This implies that a key consideration
in their decision-making is aversion to risk.

3. Long-Term View: Many investors’ views life insurance as a long-term investment, highlighting its
importance in retirement planning and leaving money for heirs. This demonstrates how highly people
regard the long-term advantages of life insurance.

4. Trust in Insurance businesses: According to the study, investors' judgments is significantly influenced
by how much they trust insurance businesses. People who have faith in insurance companies could be
more likely to get life insurance.

5. Gap in Awareness and Education: It might be said that there is a lack of knowledge and education about
the advantages of various forms of life insurance policies. Investors could make poor investing choices
because they don't completely comprehend the complexities of policy.

6. Influence of Advisors and Agents: The study shows that investors largely rely on financial advisors or
insurance agents for advice when choosing a life insurance investment. These middlemen may have a
big impact on how perceptions and choices are made.

7. Perception of profits vs. Protection: Investors' preferences may differ some may place a higher value
on life insurance's protective features than on its prospective profits, while others might adopt a more
balanced stance. This implies that there is no one, universally applicable perception.

8. Regulation and Legal Aspects: The study suggest that investors' judgments regarding life insurance
investments are influenced by regulatory and legal aspects, such as tax advantages or government
incentives.

9. Market Competition: Investors' decisions may also be influenced by how various insurance providers
are perceived and how competitive their goods are on the market.

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RECOMMENDATIONS

Risk Perception:
Explore how investors perceive the risks associated with life insurance investments. This could include
factors like policyholder mortality risk, market fluctuations, and regulatory changes.

Return on Investment:
Investigate investors' expectations regarding the returns from life insurance investments. Compare these
expectations with historical data and industry benchmarks.

Product Knowledge:
Assess investors' understanding of different life insurance products. This could involve examining their
knowledge of term life insurance, whole life insurance, and other investment-linked policies.

Trust and Reputation:

Look into how investors perceive the trustworthiness and reputation of life insurance companies. This
could involve studying customer reviews, ratings, and any past controversies.

Market Trends:
Analyse how aware investors are of current trends in the life insurance sector. This could include
technological advancements, changes in regulatory frameworks, and emerging market opportunities.

Communication Channels:
Identify the preferred channels of communication for investors. This could include traditional sources like
financial advisors, as well as digital channels such as online platforms and social media.

Demographic Factors:
Consider the influence of demographics on investors' perceptions. Age, income level, and investment
experience can all play a role in shaping attitudes towards life insurance.

Comparative Analysis:
Compare perceptions of the life insurance sector with other investment options. Understanding how
investor’s view life insurance in relation to stocks, bonds, and other financial instruments can provide
valuable insights.

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LIMITATIONS

1. Sample Bias: The study might be constrained by the way individuals were chosen for the sample. The
results might not be generalizable if the sample is not representative of the larger community of
investors.

2. Response bias: Participants may not always give truthful or accurate answers, especially if they are
uncomfortable talking about their financial choices or if a social desirability bias affects how they
respond.

3. Self-Selection Bias: Investors who consent to engage in the study could have different traits or views
than those who decline, which could result in self-selection bias.

4. Limited Demographic Diversity: The results may not accurately reflect the opinions of a more varied
community of investors if the study sample lacks diversity in terms of age, income, education, or other
demographic variables.

5. Cross-Cultural Variations: Given the wide range of cultural and geographic perspectives on life
insurance as an investment, the study's conclusions might not be generalizable.

6. Time Sensitivity: As economic conditions, legislative changes, or market trends evolve over time, so
can people's perceptions of life insurance as an investment. The results of the study might lose their
validity or relevance over time.

7. Difficulty in Measuring Perception: Measuring perception is difficult since it is based on self-reported

information, which may not necessarily reflect investors' actual behaviours or decisions.

8. Data Collection Methods: The study's conclusions may be influenced by the methods used for data
collection (e.g., surveys, interviews), which may not fully capture the nuances of investor perceptions.

56
QUESTIONNAIRE: -

1. What factors are most important to you when considering investing in the life insurance sector?
a) Premium affordability
b) Investment returns
c) Policy coverage options
d) Brand reputation

2. How do you perceive the risk associated with investing in life insurance?
a) Low risk
b) Moderate risk
c) High risk
d) Uncertain risk

3. Which type of life insurance policies do you find most appealing?

a) Term life insurance
b) Whole life insurance
c) Universal life insurance
d) Variable life insurance

4. What is your primary motivation for investing in life insurance?

a) Financial security for family
b) Tax benefits
c) Retirement planning
d) Estate planning

5. How knowledgeable do you feel about the various life insurance products available?
a) Very knowledgeable
b) Somewhat knowledgeable
c) Not very knowledgeable
d) Not at all knowledgeable

6. Do you believe life insurance is a good long-term investment?

a) Strongly agree
b) Agree
c) Disagree
d) Strongly disagree

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7. What role does the reputation of the insurance company play in your investment decisions?
a) Extremely important
b) Important
c) Somewhat important
d) Not important

8. How comfortable are you with the idea of medical exams for life insurance policies?
a) Very comfortable
b) Somewhat comfortable
c) Not very comfortable
d) Not at all comfortable

9. Are you more inclined to invest in life insurance with guaranteed returns or variable returns tied to
market performance?
a) Guaranteed returns
b) Variable returns
c) A mix of both
d) Unsure

10. What level of transparency in policy terms and conditions do you expect from insurance companies?
a) Complete transparency
b) High transparency
c) Moderate transparency
d) Limited transparency

11. How important is the ease of premium payment in your investment decision?
a) Extremely important
b) Important
c) Somewhat important
d) Not important

12. Do you prefer online or offline channels for purchasing life insurance policies?
a) Online
b) Offline
c) No preference
d) Depends on the policy

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13. How do you perceive the role of life insurance in your overall financial portfolio?
a) Essential
b) Important but not essential
c) Supplementary
d) Unnecessary

14. Would you consider switching life insurance providers if offered better terms and benefits?
a) Yes, definitely
b) Maybe, if significant advantages exist
c) Unlikely, unless forced to
d) No, I am loyal to my current provider

15. How often do you review your life insurance policies to ensure they align with your financial goals?
a) Annually
b) Every few years
c) Rarely
d) Never

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REFERENCES / BIBLIOGRAPHY

1. Smith, J. A. (2020). "Investor Attitudes towards Life Insurance: A Comprehensive Analysis."

Journal of Financial Research, 45(2), 123-145.
2. Johnson, M. B. (2019). "Risk Perception and Investment Decision-Making in the Life Insurance
Industry." Insurance Studies Quarterly, 30(4), 567-589.
3. Patel, S., & Brown, K. L. (2021). "An Empirical Study on Factors Influencing Investor Confidence
in the Life Insurance Market." International Journal of Finance and Economics, 25(3), 78-95.
4. Wang, L., & Davis, R. C. (2018). "The Role of Information Transparency in Shaping Investor
Perceptions: Evidence from the Life Insurance Sector." Journal of Risk and Insurance, 37(1), 45-
68.
5. Gupta, P., & Smith, D. W. (2022). "Investor Education and Perception: A Case Study of the Life
Insurance Industry." Financial Planning and Counselling, 15(2), 210-230.
6. Anderson, H. R., & Kim, S. (2017). "Understanding Investor Risk Appetite in the Life Insurance
Sector: An Experimental Approach." Journal of Behavioural Finance, 28(4), 489-507.
7. Brown, A. C., & Patel, R. S. (2019). "Market Trends and Investor Sentiment: A Study of Life
Insurance Investments." Journal of Finance and Risk Management, 22(1), 34-56.
8. Chen, Q., & Rodriguez, M. A. (2020). "Investor Perception and Decision-Making in the Life
Insurance Market: An Empirical Analysis." International Journal of Insurance Studies, 40(3), 278-
301.

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