You are on page 1of 46

A Summer Training Report

Subject Code: 536322(36)

On

Study on need for life insurance


Submitted for partial fulfillment of requirement for the award of degree
Of

Master of Business Administration


Of CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSITY BHILAI (C.G.)

Session 2010-12
Supervised By External Guide
MR. TARIQUE KHAN (SENIOR SALES MANAGER) METLIFE INDIA INSURANCE CO. LTD.

Supervised By Internal Guide


PROF. SHASHANK MEHRA (FACULTY OF MANAGEMENT) DIMAT (RAIPUR)

Submitted by
AARTI PANDEY Roll No. Enrollment No. MBA III Semester (Section- A/B)

2011 DEPARTMENT OF MANAGEMENT


DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(Disha Education Society) Satya Vihar, Vidhansabha-Chandrakhuri Marg, Mandir Hasaud, Raipur (C.G.)492007 Page 1

Appendix II

DECLARATION
I the undersigned solemnly declare that the report of the Summer Training work entitled is based my own work carried out during the course of my study under the supervision of MR. SHASHANK MEHRA I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

___________________ (Signature of the Candidate) AARTI PANDEY Roll No.: Enrollment No.: MBA III SEM Section- A

Page 2

Appendix III

Certificate by Organization

Note: In this page you have to put the certificate received from the organization.

Page 3

Appendix IV

CERTIFICATE BY INTERNAL GUIDE

This to certify that the report of the project submitted is the outcome of the project work entitled carried out by Aarti Pandey bearing Roll No.: & Enrollment No.: carried by under my guidance and supervision for the award of Degree in

Master of Business Administration of Chhattisgarh Swami VivekanandTechnical University, Bhilai (C.G), India. To the best of the my knowledge the report i) ii) iii) Embodies the work of the candidate herself, Has duly been completed, Fulfils the requirement of the ordinance relating to the MBA degree of the University and iv) Is up to the desired standard for the purpose of which is submitted.

_______________________ (Signature of the Guide) PROF. SHASHANK MEHRA FACULTY OF MANAGEMENT

The project work as mentioned above is hereby being recommended and forwarded for examination and evaluation.

Page 4

Appendix V

CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled AWARENESS & NEED OF HEALTH INSURANCE PLAN Submitted by Rajneesh Kumar, Roll No.:5283610007 & Enrollment No.:AG8019 Has been examined by the undersigned as a part of the examination for the award of Master of Business Administration degree of Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G.).

_________________

________________ __________________

Name & Signature of Internal Examiner Date:

Name & Signature of External Examiner Date:

Forwarded by Prof N H Deshpande Director, FOM & III

Page 5

Appendix VI

ACKNOWLEDGEMENT
The successful completion of any work depends upon the devotion & sincere work. A Project is a result of the hard work of the compiler & those who have helped in collecting the information required. Words are scarce to express my deep gratitude to those who helped me with their efforts in this endeavour.

At the onset I would like to thank PROF. Shashank Mehra (FOM) for trusting me & giving me this chance to prove my efficiency. His guidance, zeal &

passion towards work guided me a lot & instilled energy in me during the research report. I am grateful to him for taking out hours & hours from his daily hectic schedule in order to create perfect learning environment by continuously giving useful insight & necessary direction.

_____________ (Signature of the student) Name: Roll.No MBA III SEM

Page 6

CONTENT

Chapter No.
I Introduction Literature Review

Title

Page

II

2.1 Company profile 2.1.1 Sub-Sub article

III

3.1 Methodlogy

3.1.1 Sub-sub article

IV

4.1 Results & discussions

4.1.1 Sub-sub article

V 5.1 Conclusions & Scope

5.1.1 Sub-sub article

Bibliography Appendix

ix

Page 7

Chapter 1 (Introduction)

Page 8

INSURANCE-:
Meaning Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss

INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. General Insurance The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

Page 9

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Types of insurance: BASICALLY THEIR TWO TYPES OF INSURANCE 1. Life Insurance 2. General Insurance Insurance - Life Your family counts on you every day for financial support: food, shelter, transportation, education, and much more. Insurance provides you with that unique sense of security that no other form of investment provides. It gives you a sense of financial support especially during that time of crisis irrespective of the fluctuations in the stock market. Insurance provides for your career goals right from your childhood years. Life insurance is all about making sure your family has adequate financial resources to make those plans and dreams come true. It provides financial protection to help your family or business to manage after your death.

Page 10

Few of the Life insurance policies are: Whole life policies - Cover the insured for life. The insured does not receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured.. Endowment policies - Cover the insured for a specific period. The insured receives money on survival of the term and is not covered thereafter. Money back policies - The nominee receives money immediately on death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies. Annuities / Children's policies - The nominee receives a guaranteed amount of money at a pre-determined time and not immediately on death of the insured. On survival the insured receives money at the same pre-determined time. These policies are best suited for planning children's future education and marriage costs. Pension schemes - are policies that provide benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum or as a pension every month. Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs. Insurance - General Every asset has a value and the business of general insurance is related to the protection of economic value of assets. Assets would have been created through the efforts of owner, which can be in the form of building, vehicles, machinery and other tangible properties. Since tangible property has a physical shape and consistency, it is subject to many risks ranging from fire, allied perils to theft and robbery. Concepts of insurance have been extended beyond the coverage of tangible asset. Now the risk of losses due to sudden changes in currency exchange rates, political disturbance, negligence and liability for the damages can also be covered. Page 11

But if a person judiciously invests in insurance for his property prior to any unexpected contingency then he will be suitably compensated for his loss as soon as the extent of damage is ascertained. Few of the General Insurance policies are: Property Insurance: The home is most valued possession. The policy is designed to cover the various risks under a single policy. It provides protection for property and interest of the insured and family. Health Insurance: It provides cover, which takes care of medical expenses following hospitalization from sudden illness or accident. Personal Accident Insurance: This insurance policy provides compensation for loss of life or injury (partial or permanent) caused by an accident. This includes reimbursement of cost of treatment and the use of hospital facilities for the treatment. Travel Insurance: The policy covers the insured against various eventualities while traveling abroad. It covers the insured against personal accident, medical expenses and repatriation, loss of checked baggage, passport etc. Liability Insurance: This policy indemnifies the Directors or Officers or other professionals against loss arising from claims made against them by reason of any wrongful Act in their Official capacity. Motor Insurance: Motor Vehicles Act states that every motor vehicle plying on the road has to be insured, with at least Liability only policy. There are two types of policy one covering the act of liability, while other covers insurers all liability and damage caused to one's vehicles. Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs.

Page 12

LIST OF INSURANCE COMPANIES IN INDIA: Following is the list of all LIFE & GENERAL INSURANCE COMPANIES granted permission by IRDA. LIFE INSURERS Websites Public Sector Life Insurance Corporation of India www.licindia.com

Private Sector Allianz Bajaj Life Insurance Company Limited Birla Sun-Life Insurance Company Limited HDFC Standard Life Insurance Co. Limited ICICI Prudential Life Insurance Co. Limited ING Vysya Life Insurance Company Limited Max New York Life Insurance Co. Limited MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Co. Ltd. SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited AMP Sanmar Assurance Company www.allianzbajaj.co.in

www.birlasunlife.com

www.hdfcinsurance.com

www.iciciprulife.com

www.ingvysayalife.com

www.maxnewyorklife.com www.metlife.com www.omkotakmahnidra.com

www.sbilife.co.in

www.tata-aig.com www.ampsanmar.com Page 13

Limited Dabur CGU Life Insurance Co. Pvt. Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co, Ltd. Shriram Life Insurance Co, Ltd. Bharti AXA Life Insurance Company Ltd Future Generali Life Insurance Company Ltd. IDBI Fortis Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd www.canarahsbclife.com www.avivaindia.com

www.reliancelife.com

www.avivaindia.com www.saharalife.com www.shriramlife.com www.bharti-axalife.com

www.futuregenerli.in

www.idbifortis.com

AEGON Religare Life Insurance Company Limited Star Union Dai-ichi Life Insurance Comp. Ltd. DLF Pramerica Life Insurance Co. Ltd

www.aegonreligare.com

www.sudlife.in

www.dlfpramerica.com

GENERAL INSURERS Public Sector National Insurance Company www.nationalinsuranceindia.com Page 14

Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited www.niacl.com www.orientalinsurance.nic.in www.uiic.co.in

Private Sector Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation of India www.gicindia.com www.bajajallianz.co.in

www.icicilombard.com

www.itgi.co.in

www.ril.com

www.royalsun.com

www.tata-aig.com

www.cholainsurance.com www.ecgcindia.com

Page 15

Need for life insurance


Today, there is no shortage of investment options for a person to choose from modern day investments include gold , property fixed income instruments, mutual fund and of course, life insurance. Given the option of choices, it be difficult to make the right choice when investing your hard earned money. Life insurance is a uniqueInvestments that helps you to meet your dual needs-saving for lifes important goals and protecting your assets. Let us take an example to understand the need for insurance: Mr. Atul is 45 and self employed. His wife Nandini, who is a housewife, looks after their two children aged 3 and 7 years. They stay in rented accommodation, where the rent is Rs.15000/- per month. Mr. Atul taken up a loan of Rs.2lakh. His monthly earnings on average are Rs. 40,000/- . Mr. Atul passes away in an unfortunate road accident. What are some of the financial implications of his death on his family?

There may be several financial implications on his family. Some of these are: The monthly income, previously provided by Mr. Atul would stop. His wife and children may have to seek financial assistance from other relatives. His wife may not have enough money to pay back the loan of Rs.2 lakhs. His widow may have to take up work to earn money. The education of his children may suffer.

This simple example illustrates the impact premature death can have on a family, where the main earner has no life cover.

Had Mr. Atul taken a life cover, his family would not have faced such hardships in the event of his unfortunate death. A simple life insurance policy could have provided

Page 16

Mr. Atuls family with a lump sum that could have been invested to provide an income equal to all or part of this income. In simple words, insurance protects against untimely losses. Insurance has been found useful in the lives of person both in the short term and long term. Short term needs like sudden medical costs and long term needs like marriage expenses etc. can be met with using life insurance.

Benefits of Life Insurance


Depending upon its usage, life insurance provides the customer with following benefits. They are as follows: Income to your family:

Life Insurance proceeds ensure a source of financial security for your family to meet its household and the living expenses. Pay off debts-

On the unfortunate death of the insured the proceeds from the life insurance of policy can be used to meet outstanding debts such as mortage , car -loans or charge account balances.

Provide Educational Funding for your Children-the cash value of the whole life policy can be used to accumulate funds for their child education

Equalize inheritance: When an asset such as family business passes on to family members who are active in it ,life insurance proceeds can be used to provide equal asset to other family members.

Life insurance gives protection and safety to policyholders, raises the rate of capital formation and contributes for development

Page 17

Life Insurance Vs. Other Savings

Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift: Life insurance encourages thrift. It allow long-term savings since payments can be made effortlessly because of the 'easy installment' facility built into the scheme. . For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. Page 18

This is available for amounts paid by way of premium for life insurance subject to income tax rates in force.

Role of insurance

Insurance plays a very constructive role in the present world, Which is full of risks and uncertainties of varied nature. The importance of insurance and its role is made clear on the basis of following advantages of insurance.

1) Protection of interest : Insurance protects and safeguards the interest of individual and businessmen in their business operations. It gives them safety and creates confidence in their minds. Thos indirectly brings expansion of business activities.

2) Diversification of risk: It results in Diversification of risk among specialized professional agencies called insurance companies.

3) Promotions of Savings and Investment: It promotes the rate of savings and investment and leads to capital formation in an economy.

4) Security and confidence: Insurance creates a sense of security and confidence among all sections of the society.

5) Better security for advances: It provides better security for loans and advances offered by banks. Risk in granting loans is limited if the property is properly insured by the borrower.

6) Safety in storage and transportation: It brings safety in storage and transportation and leads to expansion of commercial Activity. Page 19

7) Acting as underwriter and executor: a concerns. They help and support their clients in different ways and in different areas.

8) Investment advice: It gives proper investment advice to businessmen and creates proper investment climate in the country.

Page 20

Chapter 2 (Company Profile)

Page 21

MET-LIFE BEGINS:: The origins of Metropolitan Life Insurance Company (MetLife) go back to 1863, when a group of New York City businessmen raised $100,000 to found the National Union Life and Limb Insurance Company. The new company insured Civil War sailors and soldiers against disabilities due to wartime wounds, accidents, and sickness. In 1868, after several reorganizations and five difficult years, the company decided to focus on the life insurance business. A new company was chartered to sell "ordinary" insurance to the middle class. The founders chose the name because they had been most successful in New York City, or the "Metropolitan" District. This new venture also faced difficulties. A severe business depression that began in the early 1870s rapidly put half of the 70 life insurance companies operating in New York State out of business. Only very large, long-established ordinary life insurance companies remained strong. Policy lapses over successive years forced the company to contract until it reached its lowest point in the late 1870s. In 1879, MetLife President Joseph F. Knapp turned his attention to England, where "industrial" or "workingmen's" insurance programs were widely successful. American companies had not bothered to pursue industrial insurance up to that time because of the expense involved in building and sustaining an agency force to sell policies door to door and to make the weekly collection of five- or ten-cent premiums. By importing English agents to train an American agency force, MetLife quickly transferred successful British methods for use in the United States. By 1880, the company was signing up 700 new industrial policies a day. Rapidly increasing volume quickly drove down distribution costs, and the new program proved immediately successful. The MetLife agent became an important person in the lives of these striving families. Manuals instructed agents to call at a home at the same time each week to ensure familiarity and contact. In the process of collecting premiums, insurance agents listened to the problems, concerns, and hopes of their clients. So successful was this Page 22

approach that by 1909, MetLife became the nation's largest life insurer in terms of insurance in force, a leadership position we continue to hold today in North America.

Met Life (India)

FACT SHEET Founded Started Operation Headquarters World Wide Web Address Managing Director Employees Financial Advisors Banc assurance Tie-Ups Number Of Products Presence Through MetLife Offices Presence Through Bank Partners 2001 FY 2001-02 Bangalore, India www.metlife.co.in Rajesh Relan 7688 56,072 (J&K Bank/Karnataka Bank) Over 20 products 192 offices in 131 cities 1910 offices in 686 cities

Page 23

Product of MetLife India life insurance company Ltd.

CHILD PLAN

Met Bhavishya , Met Junior Money Back, Met Junior Endowment, Met Magic Plus.

RETIREMENT

Met Growth Super , Met Pension - Par, Met Pension Plus

SAVING

Met Sukh, Met Suvidha, Met Saral, Met 100.

PROTECTION

Met Suraksha, , Met Suraksha TROP, Met Suraksha Plus , Met Mortgage Protector Plus.

RURAL

Met Vishwas , Met Suvidha (Rural)

HEALTH

Met Health Care,

INVESTMENT

Met Easy Plus , Met Wealth Plus, Met Gold Plus, Met Fortune Met Smart Life.

MONTHLY INCOME

Met Monthly Income Plan, Met Monthly Income Plan 7 Pay.

Page 24

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them.

The scope of research methodology is wider than that of research method.

Meaning of Research Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systemized effort to gain new knowledge. It is a careful inquiry especially through search for new facts in any branch of knowledge. The search for knowledge through objective and systematic method of finding solution to a problem is research.

RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research is design is the conceptual structure within which research is conducted; it constitutes the blue print of the collection, measurement and analysis of the data. As search the design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data.

Research Design can be categorized as


TYPES OF RESEARCH DISEGN

EXPLORATIRY SEREARCH DESIGN

EXPERMENTAL RESEARCH DESIGN

Page 25

DISCRIPTIVE & DLAGNOSTIC RESEARCH DESIGN

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig out new relationship. Research design is flexible enough to provide opportunity for considering different aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management.

Objective To aware the people about the importance of life insurance. To determine reasons behind opting for an insurance. To determine the feedback on services provided by an insurance agent. To study the types of benefits provided by insurance services. To know the need of the people for opting for life insurance

To know the popularity Metlife insurance company among the people. To find out the grievances of the customers with regard to services provided by insurance companies.

DATA COLLECTION

Data collection means collections of information, facts or figures for the problem. Primary data collection- Primary data is the first hand information obtained by investigator. Primary source is one itself collects the data. Primary data can be collected by observation, by interviews, by face to face questioning, by using questionnaire, when the needed data do not exist or are dated, inaccurate, incomplete, or unreliable. I have use Questionarrire method for my research in which I had asked questions from 100 people of Raipur .

Page 26

Secondary data collection Secondary data is collected by others already and the researcher is using that information for his own research purpose. Secondary data can be collected from published reports, websites, and publications of national and international organization. Sampling plan: Random sampling Sample size - 100 Sampling Instruments- Questionnaire, face to face interview

Chapter - 4 Analysis & Interpretation

Page 27

QUES1. WHAT IS YOUR CURRENT EMPLOYMENT

25%

SELF EMPLOYED SERVICE

75%

EMPLOYMENT

SELF EMPLOYED 25

SERVICE 75

Out of the 100 respondent surveyed 75%respondent who belongs to service class are more conscious about insurance due to the tax benefit they get under sec80c and 10(10)d the rest of the some of population belong to business class are not that much conscious about insurance

QUES2.

Page 28

DO YOU HAVE ANY INSURANCE PLAN

8%

YES NO

92%

INSURANCE PLAN

YES

NO

92%

8%

Of the sample size of 100 surveyed respondents 92% of the respondents are having Insurance policy.

8% of the respondents are either not having any Insurance policy at present or their policy is already matured.

And at present 92% of the respondents are with the view that Insurance is a tool to protect your family.

Ques. 3

Page 29

DO YOU HAVE HEARD ABOUT MET LIFE INSURANCE COMPANY

NO 32%

YES 68%

68%respondent know about met life company they have heard different sources either from the advisor ,friends and relatives and some had seen the advertisement in TV during the worldcup2011

32% respondent are not aware of the company so the company should promote themselves more

Ques. 4

Page 30

RATINGS

16% 28%

FIXED ASSET
8%

BANK/FD INSURANCE SHARE/MF JEWELLERY

10%

38%

SOU RCES

FI XE D As set

B A N K FD

INSUR ANCE

SHAR E/MF

JEWEL LERY

RATI NGS 28 % 38 %

10%

8%

16%

Out of the 100 respondent survey, 38% of people prefer to invest in bank / FD, Only 10% of the respondent would prefer to invest in life insurance. 28% of the respondent would prefer to save in fixed asset. 8%of the respondent prefer to invest in share market also 16%of The respondent like to invest in jewellery

Page 31

Rating
0 10% TAX BENEFIT UNCERTANITY IN FUTURE 38% 52% INVESTMENT OPTION

52% of the Respondents opted for Insurance for tax saving benefits and saving/investment both.

But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.

38% of people opted for insurance as a investment option.

NEED FOR INSUARNCE

Page 32

120

100

98 92 78 70 64

96

80

60 STRONGLY AGREE AGREE 40 35 31 NOT SURE DISAGREE STRONGLY DISAGREE 14 14 8 12 10 0 4

20 20 8 00 0 9 1 200

20 14

Most of the respondent (92%)stronglyagree,8%agree with the statement that insurance help in child education, 9%of the respondent stronglyagree and 70% agree with the insurance plan they their child marriage20%donot to investment for the above purpose . 98% people strongly agree with statement that insurance help in Tax benefit under sec 80c &10(10)d People consider insurance as a systematic investment plan as it provides many benefits to them 78%of the people believe that by insurance they can plan their retirement

96% do insurance for the security reason they believe that insurance acts as a tool against uncertainities in future

Page 33

Apprehensions about insurance

Page 34

MONEY IS LOCKED FOR SOME TIME PERIOD


0 15% 25% STRONGLY AGREE AGREE NOT SURE DISAGREE STRONGLY DISAGREE 60%

0%

Strong Mon ey is locke d for some time perio d ly agree

agr ee

N ot su re

Disagr ee

Strong ly disagr ee

25

60

15

60% of the people strongly agree with the statement that if they will invest in insurance their money will be locked.

15% people disagree,25%strongly disagree with the statement they think that opt for insurance for the security and tax benefit they dont consider as a investment option.

Page 35

NO PROPER INFORMATION
0 15% 40% STRONGLY AGREE AGREE 28% NOT SURE DISAGREE STRONGLY DISAGREE

32%

Stro NO PROPER INFORMA TION ngly agre e

ag re e

N o t s u r e

Disa gree

Stro ngly disag ree

40

3 2

2 8

15

40% of the people are strongly agree with the statement that company not provide the proper information. 32%people are agree with the statement that insurance company not provide the proper information they dont disclose all the terms and the condition of the plans. 15% people disagree, they think that before buying any policy they can get all the necessary information from the companies site and helpline no.

Page 36

NOT PROVIDING GOOD RETURN


2% 10% 25% STRONGLY AGREE AGREE NOT SURE DISAGREE STRONGLY DISAGREE 65% 0

Stron NOT PROVID ING GOOD RETURN gly agree

ag ree

N ot s ur e

Disag ree

Stron gly disag ree

25

65

1 0

65% people agree with the statement insurance do not provide good return in compassion to the other sources. 25% people strongly disagree the reason being they think that insurance should not be consider as a sources of investment for earning benefit. 10% people dont have any onion about this statement .

Page 37

ADVISORS ARE NOT PROPERLY EDUCATING ABOUT INVESTMENT NEED


0 8 4 STRONGLY AGREE 48 AGREE NOT SURE DISAGREE 40 STRONGLY DISAGREE

Stron ADVISOR NOT PROPERL Y EDUCAT E ABOUT INVESTM ENT NEEDS gly agree

ag re e

N o t s u r e

Disa gree

Stron gly disag ree

48

4 0

Page 38

Most of the respondent (48%) strongly agree , 40%agree with the statement that most of the advisers are them self confuse regarding their product so they are unable to explain the people the importance of insurance.

4% of the respondent do not have any clear opinion about the statement 8%of the respondent disagree they think that some of the advisers are very clear about their products and have a good knowledge and they educate very nicely about the investment needs

Page 39

ADVISORS CHEAT
2% 10% 4% STRONGLY AGREE AGREE NOT SURE 52% 32% DISAGREE STRONGLY DISAGREE

Stron ADVIS ORS CHEAT gly agree

agr ee

N ot su re

Disag ree

Stron gly disag ree

52

32

10

Most of the respondent (52%) strongly agree ,32%agree with the statement of the adviser of the company cheat by not providing all the information of the plans.

10% people who are different companies disagree with the statement and 2% people strongly agree they think that if they them self conspicuous about their benefits advisers cannot cheat them.

Page 40

EACH INFORMATION IS IN ENGLISH LANGUAGE


0 18% 0% STRONGLY AGREE AGREE NOT SURE 20% 62% DISAGREE STRONGLY DISAGREE

Stro EACH INFORMA TION IS IN ENGLISH LANGAU AGE ngly agre e ag re e N o t s u r e Disa gree Stro ngly disag ree

62

2 0

18

Majority of the respondent (62%)strongly agree ,20%agree with the statement that because most of the information is in English they are not able to understand all the terms and condition of the clearly of the policy bond because of the lack of knowledge of the language

18% disagree they think that other language will be more difficult to understand.

Page 41

COMPANIES ARE NOT CO-OPERATIVE


0 5% 24%

STRONGLY AGREE AGREE NOT SURE

32%

DISAGREE STRONGLY DISAGREE 14%

Stron COMPA NIES DO NOT COOPER ATE gly agree

ag re e

N ot s u re

Disag ree

Stron gly disag ree

24

14

3 2

24% respondent strongly agree and 14% of agree with this statement that the insurance companies donot cooperate at the time of some dispute

5%respondent disagree they are statisfied with the customer service of the company

Page 42

32% respondent are not having any clear opinion because they have not faced any situation like that. .

Chapter 5 (Finding, conclusion and recommendation)

Page 43

Findings
1. Service class people are more concerned about insurance in comparison to self employed. 2. 92% respondents are insured. 3. MetLife is popular among the people. 4. Most of the people rate bank/FD as no 1 for investmenting their money. 5. People opt for life insurance for the tax benefit and for the security reason98% people strongly agree with statement that insurance help in Tax benefit and others 96% do insurance for the security reason. 6. Some of People believe that by investing in insurance their money will be locked for some time. 7. 32%people are agree with the statement that insurance company not provide the proper information they dont disclose all the terms and the condition of the plans. Page 44

8. 65% people think that if they will invest their hard earned money in some other investment source they will get much better return. 9. Most of the people believe that advisers not properly educating about the investment need. 10. 52% of the people think that adviser cheat with wrong information. 11. Most of the People are not familiar with the English language. 12. Some of the people feel that the company dont provide proper information.

Recommendation
1. Company should train their adviser in such a way so that they can properly educate the people regarding insurance need. 2. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India so the make an attempt to trap these customers. 3. As seen from the above survey that the 92% of the respondent having life insurance policy & out of my sample size 8% of the respondent are planning for new investment. So, there is a huge gap between share of investment planner and share of life insurance holder. So it can be a good potential for the company and they should make an attempt to trap these customers. 4. Company should provide better customer service.

5. Policy bond should be printed in Hindi also.

Page 45

ConclusionThe exhaustive research in the field of life insurance threw up some interesting facts which can be seen in the above analysis the general impression I gathered during the data collection was

Most the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India.

The general satisfaction levels among public with regards to policy and agents still requires improvement People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning to have its impact now

Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes it shows how insurance companies have been successful to attract public money in recent times and

Page 46