Documenti di Didattica
Documenti di Professioni
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At
Jaipur
CERTIFICATE FROM THE ORGANIZATION
This is to certify that the project entitled “Potential of Life Insurance Industry
in Jaipur” is a bonafide work of Sudhir Kumar Jain, a student of International
school of Business Management (ISBM), and was successfully conducted at,
MetLife India Insurance Co. Ltd, Jaipur, from 1st June to 31st July, 09 for the
fulfillment of the course Master of Business Management (MBA) of ISBM,
Gyan Vihar Universe, Jaipur.
This is to certify that the project work entitled “Potential of Life Insurance
Industry in Jaipur” is a piece of work done by Sudhir Kumar Jain, student
of International School Of Business Management, under my guidance and
supervision for the fulfillment of the course MBA, International School Of
Business Management, Gyan Vihar Universe, Jaipur
To the best of my knowledge and belief the project embodies the work of the
candidate himself and has been duly completed. Simultaneously, the project
fulfills the requirements of the rules and regulations related to the summer
internship of the institute and I am assured that the project is up- to the standard
both in respect to the contents and language for being referred to the examiner.
Anshul Yadav
CONTENTS
Acknowledgement 7
Executive Summary 8
Introduction (9-37)
• Introduction of the Industry 9
Life Insurance 10
General Insurance 11
Major Policy changes 13
Changing Face of Indian Insurance Industry 14
15
Various types of Life Insurance Policies
• Introduction of the Company
17
Company Profile 17
MetLife Inc. 19
Values 20
Management 22
Insurance Plans/Products
Survey (43-61)
• Graph Analysis & Data Interpretation 44
Bibliography (66)
Annexure (67-70)
• Questionnaire 68
LIST OF GRAPHS
Particulars Page
No.
[Fig 1] No of People Having Insurance 45
Last but not the least I am also thankful to all the staff members of MetLife
India Insurance Co. Ltd to make my project successful.
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has
the maximum growth rate of 70-80% while as FMCG sector has maximum 12-
15% of growth rate. This growth potential attracts me to enter in this sector and
MET LIFE INDIA INSURANCE CO. LTD. has given me the opportunity to
work and get experience in highly competitive and enhancing sector.
• Agents are the best way for a company of Insurance sector through which
policies and benefits of the company can be explained to the customer.
INTRODUCTION
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some
sort of sacrifice in order to achieve security. Though the concept of insurance is
largely a development of the recent past, particularly after the industrial era –
past few centuries – yet its beginnings date back almost 6000 years.
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta,
the Oriental Life Insurance Company. First attempts at regulation of the industry
were made with the introduction of the Indian Life Assurance Companies Act in
1912. A number of amendments to this Act were made until the Insurance Act
was drawn up in 1938. Noteworthy features in the Act were the power given to
the Government to collect statistical information about the insured and the high
level of protection the Act gave to the public through regulation and control.
When the Act was changed in 1950, this meant far reaching changes in the
industry. The extra requirements included a statutory requirement of a certain
level of equity capital, a ceiling on share holdings in such companies to prevent
dominant control (to protect the public from any adversarial policies from one
single party), stricter control on investments and, generally, much tighter
control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the
higher echelons of society. “Unethical practices adopted by some of the players
against the interests of the consumers” then led the Indian government to
nationalize the industry. In September 1956, nationalization was completed,
merging all these companies into the so-called Life Insurance Corporation
(LIC). It was felt that “nationalization has lent the industry fairness, solidity,
growth and reach.”
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: The market contained 154 Indian and 16 foreign life insurance
companies.
General Insurance
The General insurance business in India started with the establishment of Triton
Insurance Company Limited in 1850 at Calcutta. In 1907, the first company,
The Mercantile Insurance Ltd. was set up to transact all classes of general
insurance business. General Insurance Council, a wing of the Insurance
Association of India in 1957, framed a code of conduct for ensuring fair conduct
and sound business practices. In 1968 the Insurance Act was amended to
regulate investments and to set minimum solvency margins. In the same year
the Tariff Advisory Committee was also set up. In 1972, The General
Insurance Business (Nationalization) Act was passed to nationalize the general
insurance business in India with effect from 1st January 1973. For these 107
insurers was amalgamated and grouped into four company’s viz., the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd., and the United India Insurance Company
Ltd. General Insurance Corporation of India was incorporated as a company
Insurance sector has been opened up for competition from Indian private
insurance companies with the enactment of Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA
Act, 1999, Insurance Regulatory and Development Authority (IRDA) was
established on 19th April 2000 to protect the interests of holder of insurance
policy and to regulate, promote and ensure orderly growth of the insurance
industry. IRDA Act 1999 paved the way for the entry of private players into the
insurance market which was hitherto the exclusive privilege of public sector
insurance companies/ corporations. Under the new dispensation Indian
insurance companies in private sector were permitted to operate in India with
the following conditions:
• Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder.
In this policy the insured amount and the bonus is payable only to
nominee on the death of policy holder.
• Joint life insurance policies: These policies are similar to endowment
policies in maturity benefits and risk cover, but joint life policies cover
two lives simultaneously such as married couples. Sum assured is payable
on the first death and again on the death of survival during the term of the
policy.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in
the Americas, Asia Pacific and Europe. Affiliated companies, outside of India,
include the number one life insurer in the United States (based on life insurance
enforce), with over 140 years of experience and relationships with more than 90
of the top one hundred FORTUNE 500® companies. The MetLife companies
offer life insurance, annuities, automobile and home insurance, retail banking
and other financial services to individuals, as well as group insurance,
reinsurance and retirement and savings products and services to corporations
and other institutions.
MetLife Inc.:-
The MetLife companies offer life insurance, annuities, auto and home
insurance, retail banking and other financial services to individuals, as well as
group insurance and retirement & savings products and services to corporations
and other institutions.
FACT SHEET
Founded 2001
Started Operation FY 2001-02
Headquarters Bangalore, India
World Wide Web Address www.metlife.co.in
Managing Director Rajesh Relan
Employees 7688
Financial Advisors 56,072
Bancassurance Tie-Ups 5 (J&K Bank/Axis
Bank/Dhanalakshmi
Bank/Karnataka Bank/Barclays)
Number Of Products Over 20 products
Presence Through MetLife Offices 192 offices in 131 cities
Presence Through Bank Partners 1910 offices in 686 cities
"Coming into your It's all about
own",performing People, MetLife's
as a Leader to be key resource.
really effective MetLife will
and successful by succeed
acting and making because we are
decisions winning from
independently to within.
get results.
Management:-
• Rajesh Relan
Managing Director
• MSVS Phanesh Murthy
Appointed Actuary
• Shilpa Vaid
Deputy Director- Human Resources
• Gaurav Sharma
Director - Customer Service and Operations
• Girish Malhotra
Director- Agency
• KR Anil Kumar
Director - Financial Planning
& Controller
• KS Raghavan
Chief Administrative Officer
• Preetinder Chadha
Deputy Director - Corporate Sales & Training
• P. S. Sankaran
Director – Business Support
• Sameer Bansal
Director- BA & BP
• Vijay Raghavan
Director - Marketing & Strategy
Partners:-
Corporate Social Responsibility:-
MetLife has always been committed to making a positive difference in the
lives of the individuals and communities. Today, that commitment drives
volunteer work and philanthropy across the globe. Working with non-profit
organizations, MetLife supports programs that provide young people with the
skills they need to succeed in life and create opportunities for people of all
ages.
Child Plan:-
Met Bhavishya
MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out
funds to help to meet the education and career milestones of children. With this
plan, the Life Insured is that of the parent. The plan also has inbuilt guaranteed
additions to add value to the policy over its term.
There are two options to choose from and fixed term benefits, periodic additions
& terminal additions are payable based on the option that select. The policy is
suitable for parents with children between the ages 0-12 and parents in the age
group of 20-50 years old.
MetLife offers 'Met Junior'- a flexible endowment plan that combines savings
and security. Children's well-being is our highest priority. So MetLife offer a
plan which offers both timely and efficient return on investment. All with a
guarantee.
Met Junior - Non Par
On attaining maturity, the Person Insured will receive the Sum Assured.
Met Junior - Par
On attaining maturity, the Person Insured will receive the Sum Assured, the
Reversionary Bonus and the Terminal Bonus, if any.
When child is born, a star is born in family. And, parents would like to provide
their star with all the building blocks that could develop his or her potential to
the fullest. This could mean special instruction sessions for talented children,
unique training gear for exceptional athletes or qualified training for born
singers to provide that extra-edge.
To ensure this, parents would need an investment and protection package that is
exclusively designed to help you plan for financial security, no matter what
uncertainties life brings.
'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps
parents do just that. It secures finances for child's educational needs and ensures
that plans go as planned, no matter what the circumstances.
A plan which offers both timely and efficient return on investment with payouts
at different milestones.
Survival Benefit
Met Magic
Retirement:-
Met Growth
Basic Sum Assured Min - 5 times the Annualized Premium ***Other Sum
Assured multiples - 10 times & 20 times the Annualized
Premium.
Benefit
• Death Benefit
In the unfortunate event of death, the higher of the Sum Assured or
the Fund Value would be payable.
If death of the Person Insured occurs before age 7, the Fund Value
plus the regular premium received by us in the first policy year is
payable.
• Maturity Benefit
On maturity, you will receive the Fund Value including the
Guaranteed Loyalty Addition or you can opt for the settlement
options.
• Loyalty Additions
You get the guarantee of enhancing your wealth creation through
guaranteed loyalty additions (up to 120% of the first year annual
premium) at the end of the 10th & 15th year plus Guaranteed
Additions as a % of the Fund Value.
At the end of the 10th year: 50% of the first year annualized premium
MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to
effectively and efficiently accumulate retirement needs. As the name suggests, it
comes with many advantages.One can choose from eight annuity options, two
life cover options and get tax benefits under Section 80 C and 10 (10 A). One
can buy the plan without any hassles and invest more as you approach
retirement by using the top-up functionality. All in all, it’s a plan which works
harder when one stop working. For one, it ensures that you lead a comfortable
lifestyle post retirement.
Benefits
• Death Benefit
In case of death during the accumulation period, the death benefit payable is:
Under Option A: A guaranteed amount of 110% of the Fund Value is payable to
the nominee.
Under Option B: 100% of the Fund Value is payable to the nominee.
• Vesting Benefit
On the vesting date, i.e. at the end of the accumulation term,you can take one-
third of your retirement kitty as a tax-free lump sum and utilize the balance to
buy annuities. Or you can use the entire retirement kitty to buy annuities.
Met Pension-Par
'Met Pension (Par)' serves as a friendly helping hand so one can stay financially
independent even after retirement. It helps to build up a fund for golden years.
With this plan,one can ensure his\her enjoy retirement as a happy new chapter.
Premium Payment Term Single Pay, Limited Pay (3 or 5 Pay) & Regular
Pay
Benefits
Death Benefit
In case of death while one is saving for retirement, the death benefit
payable is:
1. Return of premiums.
2. Accrued reversionary bonus, if any.
3. Any insurance on the life of the Insured that may be provided by riders
to this policy.
Vesting Benefit
On the vesting date, you can take one third of your retirement kitty as a
tax-free lump sum and utilize the balance to buy annuities or you can use
the entire retirement kitty to buy annuities. The retirement fund on the
date of vesting is equal to the Sum Assured plus Guaranteed Additions plus
the compounded reversionary bonuses plus the terminal bonus, if any.
Guaranteed Additions
Savings:-
Met Sukh
Benefits
• Death Benefit
In the unfortunate event of death of the Person Insured, the Sum
Assured along with the Guaranteed Additions are payable.
The policyholder is entitled to Guaranteed Additions of Rs. 100 per
Rs. 1,000 of the Sum Assured for each completed year.
• Maturity Benefit
On maturity, the life insured will receive the Survival Benefits plus
the Guaranteed Addition.
• Survival Benefits
Met Suvidha
'Met Suvidha' is a flexible Endowment Plan that combines savings and security.
In addition to providing you protection till the maturity of the plan, it helps you
save for your specific long term financial objectives. This long term savings-
cum-protection plan comes to a customer at affordable premiums.
Met Saral
Met 100
'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25
years.
It helps create a legacy for the children, leaving money for a dependant spouse
and, more importantly, provides insurance cover at affordable rates.
Non-Par Par
Maximum Entry Age 70 yrs for ppt of 15 yrs 70 yrs for ppt of 15
65 yrs for ppt of 20 yrs yrs
60 yrs for ppt of 25 yrs 65 yrs for ppt of 20
yrs
60 yrs for ppt of 25
yrs
70 yrs for life – ppt
Minimum Annual Rs. 1,000 for issue age of < 15 Met 100 Gold: Rs.
Premium yrs 2,500
Rs. 2,500 for issue age of > = 15 Met 100 Platinum:
yrs Rs. 7,500
Death Benefit
Met 100 - Par
In the event of death, the
Sum Assured plus the
Reversionary Bonus and Maturity Benefit
Terminal Bonuses, if any, Met 100 - Par
are payable. On maturity of the policy,
the Sum Assured plus the
Met 100 - Non-Par Reversionary Bonus and
In the event of death, the Terminal Bonuses, if any,
Sum Assured is payable. are payable.
Protection:-
Met Suraksha
This plan which provides life cover for home loans taken for
any period above 5 years. It is a decreasing term insurance
with single and limited premium options. The plan covers an
amount equal to the outstanding amount as per the policy
schedule.
Rural :-
None of us can be sure what tomorrow will bring. Shield your
families against the unknown. MetLife’s rural plans protect
your loved ones against financial liabilities and help you save
for tomorrow. All at affordable premiums
Met Vishwas
Met Suvidha-Rural
Benefits:
Met Easy
Maximum Age 55 50 50
at Entry
Benefits-
Health:-
Illustration
Benefit Option 1 Option 2 Option 3 Option 4 Option 5
Daily Hospitalisation Rs. 1000 per day Rs. 2000 per day Rs. 3000 per Rs. 4000 per Rs. 5000 per
Cash Benefit day day day
Daily ICU Cash Benefit Rs. 2000 per day Rs. 4000 per day Rs. 6000 per Rs. 6000 per Rs. 6000 per
day day day
Recuperation Benefit Rs. 3000 Rs. 6000 Rs. 9000 Rs. 10000 Rs. 10000
Critical Illness Benefit Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh
Accidental Total & Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh
Permanent Disability
Benefit
Benefits
Death/Maturity Benefit
The premium paid (excluding the service tax) under this plan is
eligible for Tax Benefits under Section 80 D of the Income Tax Act,
1961 as per the provisions and conditions given therein and are
subject to any changes made in the tax laws in future.
Reasons to Buy
1. Coverage for the entire family.
2. No Claim Discounts.
5. Multiple Claims.
RESEARCH METHODOLOGY
Objective
Scope of study
Sampling methodology
Limitations
RESEARCH METHODOLOGY
TITLE:
TITLE JUSTIFICATION:
OBJECTIVE
current trends.
• NON-PROBABILITY
EXPERIMENTAL RESEARCH
SAMPLING METHODOLOGY
Sampling Technique:
convinent
Sampling Unit:
The respondents who were asked to fill out questionnaires are
Sample size:
constraints.
Sampling Area:
Country.
findings.
SURVEY
Graph Analysis
Data Interpretation
DATA ANALYSIS & INTERPRETATION
Yes 70 70%
No 30 30%
INTERPRETATION
LIFE POLICY 75 75
NON LIFE 25 25
POLICY
BOTH 45 45
INTERPRETATION
Policy.
respondents.
NO.OF
BENEFITS SHARE (%)
RESPONDENTS
Cover Future Uncertainty 55 55
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100
[Fig4]
Future
Investment
25%
Cover Future
Tax Uncertainty
Deductions 55%
20%
INTERPRETATION
respectively.
LOW
PREMIUM
30%
LARGER
EASY RISK
ACCESS TO COVERAgE
AGENTS 37%
7%
INTERPRETATION
agents.
Response No of respondents
self 40
spouse 28
children 21
parents 18
all 11
INTERPRETATION
Satisfied 60 60%
INTERPRETATION
existing policy.
• In this case all of those who have taken a policy
have responded.
SATISFACTION OF +VE RESPONDENTS WITH
RESPECT TO SERVICE AGENT
Satisfied 45 45%
Satisfied
45%
Not satisfied
55%
INTERPRETATION
responded.
NUMBER OF RESPONDENTS PAYING TAX
INTERPRETATION
Bank deposits 11 5%
Jewellery 25 11%
Securities i.e. bonds, MFs 40. 17%
Shares 10 4%
Insurance 70 30%
Fixed
[Fig12]
80 Assets, 75
Insurance, 70
70
60
Bonds/Mutual
50
Funds, 40
40
30 Jewellery, 25
Bank
20 deposits, 11 Shares, 10
10
0
Fixed Assets Bank deposits Jewellery Bonds/Mutual Shares Insurance
Funds
INTERPRETATION
INTERPRETATION
INTERPRETATION
Non-user friendly.
INTERPRETATION
for insurance.
• Friendly service & responsiveness and Accessibility
company.
INTERPRETATION
• The interested customers i.e. 43% are ready to go
on their favor.
[Fig17]
Not Planning
13%
Planning
87%
INTERPRETATION
• Only 13% of the customers contacted are not
family & a tax saving device. They are aware of the fact &
insurance in India.
2. The entrance of private players will increase the
position in market.
into the market and secure a good position if they pay greater
in its favor.
GROWTH POTENTIAL
At present life insurance penetration in India is quite low –
3.5% of GDP.
PHASE OF TRANSITION
needs and are willing to trust private players with their hard
earned money.
Insurance Co. Ltd. LIC has never been known for prompt
BIBLIOGRAPHY
WEBSITES REFERRED
www.metlife.co.in
www.irdaindia.org
www.thehindubusinessline.com
ANNEXURE
QUESTIONNAIRE
NAME:_________________________
ADDRESS:______________________
______________________________OCCUPATION:______
_____________
a) LIC
b) ICICIPRUDENTIAL
c) SBI LIFE INSURANCE
d) MET LIFE INDIA INSURANCE
e) MAX NEW YORK LIFE INSURANCE
f) BAJAJ ALLIANZE
g) RELIANCE LIFE INSURANCE
h) ANY OTHER ________( Specify)
b) TAX DEDUCTIONS
c) FUTURE INVESTMENT
a) A SAVING TOOL
a) SATISFIED
b) NOT SATISFIED
c) NOT RESPONDING
a) SATISFIED
b) NOT SATISFIED
c) NOT RESPONDING
YES NO
e) SHARES f) INSURANCE
c) TAX BENIFITS
e) SATISFACTORY f) GOOD
g) VERY GOOD
a) A TRUSTED NAME
b) FRIENDLY SERVICE & RESPONSIVENESS
c) GOOD PLANS
d) ACCESSIBILITY
15.WOULD YOU GO FOR INSURANCE IF A
SERVICE PROVIDER AWAY FROM THE CITY
OFFERS BETTER SERVICE & PRODUCTS?
a) YES b) NO c)
UNCERTAIN
THANK YOU.