Project Report

TITLE: A Study of consumer perception in insurance industry

Submitted By:
Mr. Rajeev Singh Rathod

Faculty Guide: Company Guide:

Ms.vandana rohara. Mr. Gaurav Singh
Rathod
Product Manager

CIMR Business School

Plot # 25/26, Sector 4, Kharghar, Navi Mumbai
CHAMELI DEVI INSTITUTE OF MANAGEMENT
RESERCH
The MBA curriculum is so designed that student get enough practical knowledge
of business world which helps them to explore their skills in the corporate world in
future.

The MBA training helps the students to understand and gain knowledge about
the industry and market environment. It develops skills of analyzing and
interpreting problems through application of concepts and techniques of
management.

Decision making is a fundamental part of the research process. Decisions

regarding that what you want to do, how you want to do, what tools and
techniques must be used for the successful completion of the project. In fact it is
the researcher’s efficiency as a decision maker that makes project fruitful for
those who concern to the area of study.

Basically when we are playing with computer in every part of life, I used it in my
project not for the ease of my but for the ease of result explanation to those who
will read this project. The project presents the role of financial system in life of
persons.
 I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive world of business, I had come across several difficulties to make the
objectives a reality. I am presenting this hand carved efforts in black and white.
If anywhere something is found not in tandem to the theme then you are
welcome with your valuable suggestions.

Acknowledgement

I express my sincere thanks to my project guide, Designation Ms.vandana

rohara.for guiding me right form the inception till the successful completion of
the project. I sincerely acknowledge him them for extending their valuable
guidance, support for literature, critical reviews of project and the report and
above all the moral support he had provided to me with all stages of this project.

(Signature of Student)
RAJEEV SINGH
Name of the Student
 DECLARATION

I here by declare that project entitled “

Submitted in the requirement for the degree “The Study of

Consumers perception in Insurance industry”

Of

PGDM

To

CIMR

Affiliated to

AICT

Is my original work & not submitted for the award of any other Diploma,
fellowship or other similar title or prizes.
 Table of Contents

Introduction to the Industry (Insurance)

1.1 Introduction of Insurance

1.2 History of Insurance

1.3 Present Scenario of Insurance Sector

1.4 The Insurance Market

1.5 Insurance Regulatory & Development Authority

1.6 Types of Insurance

1.7 Industry Overview

1.8 Market Share of Different Companies

1.9 Major Players In Insurance Industry

1.10 Banks V/S Insurance

1.11 Importance of Insurance

1.12 Beginnings of Life Insurance

1.13 Kind Of Life Insurance Policies

1.14 Advantages of Life Insurance

2 Research Methodology

2.1 Title of the Study

2.2 Duration of the Project

2.3 Objective of Study

2.4 Type of Research

2.5 Sample Size and method of Selecting sample

2.6 Scope of Study

2.7 Limitation of Study

2.8 Facts and Findings

2.9 Statistical Analysis

2.10 Analysis and Interpretation

2.11 SWOT

2.12 Conclusion

2.12 Recommendation and Suggestions

3 introductions to the company

Insurance is a legal contact that protects people from the financial costs those results from loss
of lift, loss of health, lawsuits, or property damage. Insurance provides a means for individual
and society to cope up with some of the risks faced in every day life by every body. People
purchase contracts of insurance, called a policy, from various insurance companies.

Almost every person existing in this world is associated with insurance, directly or
indirectly. Directly, in the sense that he / she has insured his/her life by some kind of insurance
policy from any company. Indirectly, in the sense they must have insured the assets of their
won for example their house, car, or any thing else.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine
business. Traders, who used to gather in the Lloyd's coffee house in London, agreed to share
the losses to their goods while being carried by ships. The losses used to occur because of
pirates who robbed on the high seas of because of bad weather spoiling the goods or sinking
the ships. The first insurance policy was issued in 1583 in England. In India insurance began
in 1870 with life

Insurance being transacted by an English company, the European and the Albert. The
first insurance company the Bombay Mutual Assurance Society Ltd. formed in 1870. The
Oriental Life Assurance Co. in 1874 and the Empire of Indian of 1897 followed this.

Later, the Hindustan Cooperative was formed in Calcutta, the United Nations in Madras,
the Bombay Life in Bombay, the National in Calcutta, the New India in Bombay, and the A
Jupiter in Bombay and the Lakshmi in the New Delhi.

These were all Indian companies, started as a result of the Swadeshi movement in the
early 1900's by the year 1956, when the life insurance business was nationalized and the Life
Insurance Corporation of India (LIC) was formed on the Its September 1956, there were 170
companies and 75 provident fund societies transaction life insurance business in India. After
amendments to the relevant law in 1999, the LIC did not have the exclusive privilege of doing
life insurance business in India. By 31-3-2002, 11 new insurers had been registered and had
begun to transact life insurance business in India.

History of Insurance in India

Ancient Indian history has preserved the earliest traces of insurance in the form of
marine rade loans or carriers contracts. These can be found in KaLIClya's Arthashastra,
Yajnyavalkya's Dharmashastra and Manu's Smriti. These works show that the system of credit
and the law of interest were well developed in India. They were based on a clear appreciation
of the hazard involved and the means of safeguarding against it.

The Indian Life Assurance Companies Act, 1972 as the first statutory measure to
regulated life insurance business. Later in 1928, the Indian insurance companies act was
enacted, to enable the govt. To collect statistical information about both life and non-life
insurance business transacted in Indian-by-Indian and foreign insurers, including the provident
insurance society. Comprehensive, arrangements were, however, brought into effect with the
enactment of the insurance act, 1938.
 Efforts in this direction continued progressively and Act was amended in 1950, making
for reaching charges, such as requirement of equity capital for companies carrying on life
insurance business, stricter controls on investment of life insurance companies, ceiling on the
expenses of management and agency commission etc.

By 1956, 154 insurers, 16 non-Indian insurers and 75 provident societies were carrying
on life insurance business of India. On 19th January 1956, the management of the entire life
insurance business of 29 Indian insurers and provident insurance societies and the Indian life
insurance business of 16 non-Indian insurance companies then is operating in India. Insurance
Corporation came into existence.

An ordinance was passed in 1968 to amend the insurance Act to regulate/ control non-
life insurance resulting in set up of GIC in 1973. Malhotra committee submitted its report in
1994 and recommended means to reintroduce an element of competition by with drawing the
exclusivity of LIC and GIC. In 1997, Insurance Regulatory Authority (IRA) was established
which was later re-styled as IRDA in 1999.
PRESENT SCENARIO OF THE INSURANCE SECTOR
Liberalization
commitments of the country to help in disciplining future economic policies will include the
insurance reforms. When the world over, insurance, markets have been opened up, India
cannot remain in isolation. Globalization is the new economic reality, which is here to stay,
heralding a new era of insurance in India. With the opening of the insurance industry, India
stands to gain the following major advantages:

 Globalization will provide improved opportunities to the customers for better products,

with more reasonable and affordable pricing.

 The customer will get quicker servicing.

 It will enhance the savings rate.

 Long-term funds for infrastructure development will be available to the country.

 It will secure for India larger inflows of foreign capital needed to sustain our GDP

growth.

THE INSURANCE MARKET

The term “market” is simply a term to “describe the facilities for buying and selling
As with any other market that for insurance consist of

 Buyers
 Sellers
 Intermediaries

THE BUYERS
The buyers of the insurance or the insuring public include every one who requires insurance.

Buyers can be divided into four sections.

 Firstly, there are private individuals who buy life insurance policies, household insurance

on buildings, cars and scooters, personal liability and accident policies.

 Secondly, there are persons who buy industrial life assurance, which appeals to the

wage-earners (as distinct from the salaried class) or the lower income members of the

community.

 Thirdly, there are buyers who seek insurance with Lloyd’s underwriters, through Lloyd’s

brokers.

 Finally, the rest of the buyers comprise all persons, association, Firm joint stock

companies, cooperation, societies, clubs, government, and under taking engaged in

industry, trade and every other king of activity.

THE SELLERS
Then there are sellers of insurance who are known as insurers, and have huge overseas
connections besides their home business. Insurers my be divided into several groups,
according to their constitLICon. The principal groups are:

 Proprietary companies (Joint Stock Companies)

 Mutual insurers

 Cooperative Societies
 Lloyd’s underwriters

 Self-insurers

 Collecting friendly societies

 State insurance

INTERMEDIATE

Like any other market, the intermediate bring the buyers& sellers together but it is possible to
approach an insurance company directly & arrange insurance counter, except in case of
Lloyd’s. Generally the business of insurance is sold by agent or middle man to call at the
homes of the would be policy holders.

The principle groups of intermediaries are

 Industrial life assurance agent

 insurance agent

 insurance broker

 Lloyd’s broker

Insurance Regulatory and Development Authority

Reforms in the Insurance sector were initiated with the passes of the IRDA Bill in Parliament in
December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously such to its schedule of framing regulations and registering the private sector
insurance companies.
The other d4ecisoin taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents.

Types of insurance
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give
rise to claims are known as "perils". An insurance policy will set out in detail which perils are
covered by the policy and which are not. Below are (non-exhaustive) lists of the many different
types of insurance that exist.
A single policy may cover risks in one or more of the categories set out below. For example,
auto insurance would typically cover both property risk (covering the risk of theft or damage to
the car) and liability risk (covering legal claims from causing an accident).

A homeowner's insurance policy in the U.S. typically includes property insurance covering
damage to the home and the owner's belongings, liability insurance covering certain legal
claims against the owner, and even a small amount of coverage for medical expenses of
guests who are injured on the owner's property.

Business insurance

Can be any kind of insurance that protects businesses against risks. Some principal subtypes
of business insurance are (a) the various kinds of professional liability insurance, also called
professional indemnity insurance, which are discussed below under that name; and (b) the
business owner's policy (BOP), which bundles into one policy many of the kinds of coverage
that a business owner needs, in a way analogous to how homeowners insurance bundles the
coverage’s that a homeowner needs.

Auto Insurance

Auto insurance protects you against financial loss if you have an accident. It is a contract
between you and the insurance company. You agree to pay the premium and the insurance
company agrees to pay your losses as defined in your policy. Auto insurance provides
property, liability and medical coverage:
  Property coverage pays for damage to or theft of your car.

 Liability coverage pays for your legal responsibility to others for bodily injury or property

damage.

 Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost

wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most countries require
you to buy some, but not all, of these coverage’s. If you're financing a car, your lender may
also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by
mail when it’s time to renew the policy and to pay your premium.

Home Insurance

Home insurance provides compensation for damage or destruction of a home from disasters.
In some geographical areas, the standard insurances exclude certain types of disasters, such
as flood and earthquakes that require additional coverage. Maintenance-related problems are
the homeowners' responsibility.

The policy may include inventory, or this can be bought as a separate policy, especially for
people who rent housing. In some countries, insurers offer a package which may include
liability and legal responsibility for injuries and property damage caused by members of the
household, including pets.

Health Insurance
Health insurance policies by the National Health Service in the United Kingdom (NHS) or other
publicly-funded health programs will cover the cost of medical treatments. Dental insurance,
like medical insurance, is coverage for individuals to protect them against dental costs. In the
U.S., dental insurance is often part of an employer's benefits package, along with health
insurance.
Disability Insurance

 Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury. It provides monthly support to help

pay such obligations as mortgages and credit cards.

 Disability overhead insurance allows business owners to cover the overhead expenses

of their business while they are unable to work.

 Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession, often taken as an adjunct to life

insurance.

 Workers' compensation insurance replaces all or part of a worker's wages lost and

accompanying medical expenses incurred because of a job-related injury.

Casualty Insurance

Casualty insurance insures against accidents, not necessarily tied to any specific property.

 Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties. For example, a company can obtain

crime insurance to cover losses arising from theft or embezzlement.

 Political risk insurance is a form of casualty insurance that can be taken out by

businesses with operations in countries in which there is a risk that revolLICon or other

political conditions will result in a loss.

Life Insurance

Life insurance provides a monetary benefit to a decedent's family or other designated

beneficiary, and may specifically provide for income to an insured person's family, burial,
funeral and other final expenses. Life insurance policies often allow the option of having the
proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Annuities provide a stream of payments and are generally classified as insurance because
they are issued by insurance companies and regulated as insurance and require the same
kinds of actuarial and investment management expertise that life insurance requires.

Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against
the possibility that a retiree will outlive his or her financial resources. In that sense, they are the
complement of life insurance and, from an underwriting perspective, are the mirror image of life
insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if
the policy is surrendered or which may be borrowed against. Some policies, such as annuities
and endowment policies, are financial instruments to accumulate or liquidate wealth when it is
needed.

In many countries, such as the U.S. and the UK, the tax law provides that the interest on this
cash value is not taxable under certain circumstances. This leads to widespread use of life
insurance as a tax-efficient method of saving as well as protection in the event of early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally
deferred.

However, in some cases the benefit derived from tax deferral may be offset by a low return.
This depends upon the insuring company, the type of policy and other variables (mortality,
market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth
IRAs) may be better alternatives for value accumulation. A combination of low-cost term life
insurance and a higher-return tax-efficient retirement account may achieve better investment
return.

Property Insurance

This tornado damage to an Illinois home would be considered an "Act of God" for insurance
purposes
Property insurance provides protection against risks to property, such as fire, theft or weather
damage. This includes specialized forms of insurance such as fire insurance, flood insurance,
earthquake insurance, home insurance, inland marine insurance or boiler insurance.

Automobile insurance

known in the UK as motor insurance, is probably the most common form of insurance and may
cover both legal liability claims against the driver and loss of or damage to the insured's vehicle
itself. Throughout the United States an auto insurance policy is required to legally operate a
motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile
accident victims has been changed to a no-fault system, which reduces or eliminates the ability
to sue for compensation but provides automatic eligibility for benefits. Credit card companies
insure against damage on rented cars.

Driving School Insurance insurance provides cover for any authorized driver whilst undergoing
tuition; cover also unlike other motor policies provides cover for instructor liability where both
the pupil and driving instructor are equally liable in the event of a claim.

 Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks.

 Boiler insurance (also known as boiler and machinery insurance or equipment

breakdown insurance) insures against accidental physical damage to equipment or

machinery.

 Builder's risk insurance insures against the risk of physical loss or damage to property

during construction. Builder's risk insurance is typically written on an "all risk" basis

covering damage due to any cause (including the negligence of the insured) not

otherwise expressly excluded.

 Crop insurance "Farmers use crop insurance to reduce or manage various risks

associated with growing crops. Such risks include crop loss or damage caused by

weather, hail, drought, frost damage, insects, or disease, for instance."[

 Earthquake insurance is a form of property insurance that pays the policyholder in the

event of an earthquake that causes damage to the property. Most ordinary

homeowner’s insurance policies do not cover earthquake damage. Most earthquake

insurance policies feature a high deductible. Rates depend on location and the

probability of an earthquake, as well as the construction of the home.

 A fidelity bond is a form of casualty insurance that covers policyholders for losses that

they incur as a result of fraudulent acts by specified individuals. It usually insures a

business for losses caused by the dishonest acts of its employees.

 Flood insurance protects against property loss due to flooding. Many insurers in the

U.S. do not provide flood insurance in some portions of the country. In response to this,

the federal government created the National Flood Insurance Program which serves as

the insurer of last resort.

 Home insurance or homeowners' insurance: See "Property insurance".

 Landlord insurance is specifically designed for people who own properties which they

rent out. Most house insurance cover in the U.K will not be valid if the property is rented

out therefore landlords must take out this specialist form of home insurance.

 Marine insurance and marine cargo insurance cover the loss or damage of ships at sea

or on inland waterways, and of the cargo that may be on them. When the owner of the

cargo and the carrier are separate corporations, marine cargo insurance typically

compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but

excludes losses that can be recovered from the carrier or the carrier's insurance. Many

marine insurance underwriters will include "time element" coverage in such policies,

which extends the indemnity to cover loss of profit and other business expenses

attributable to the delay caused by a covered loss.

  Surety bond insurance is a three party insurance guaranteeing the performance of the

principal.

 Terrorism insurance provides protection against any loss or damage caused by

terrorist activities.

 Volcano insurance is an insurance that covers volcano damage in Hawaii.

 Windstorm insurance is an insurance covering the damage that can be caused by

hurricanes and tropical cyclones.

Credit Insurance

Credit insurance repays some or all of a loan when certain things happen to the borrower such
as unemployment, disability, or death.

• Mortgage insurance insures the lender against default by the borrower. Mortgage
insurance is a form of credit insurance, although the name credit insurance more often
is used to refer to policies that cover other kinds of debt.
 INDUSTRY OVERVIEW

LIFE INSURANCE BUSINESS NON-LIFE INSURANCE

BUSINESS

Life Insurance Corporation General Insurance Corporation

ICICI Prudential Life Insurance National Insurance Company

HDFC Standard Life Insurance The New India Assurance

Company

Max New York Life Insurance The Oriental Insurance

Company United

Birla Sun Life Insurance India Insurance Company

Om Kotak Mahindra Life Reliance General Insurance

Insurance

Reliance Life Insurance TATA-AIG Insurance

Allianz Bajaj Life Insurance Royal Sundaram Alliance

General Ins.

Dabur CGU Life Insurance Bajaj Allianz General Insurance

ING Vyasa Life Insurance ICICI Lombard Insurance

SBI Life Insurance

Market Share of Different companies
 Major Players in insurance industry

LIFE INSURERS :

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

 ICICI Prudential Life Insurance Company Ltd.

Om Kotak Mahindra Life Insurance Co. Ltd.

Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited .

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURERS

 Royal Sundaram Alliance Insurance Company Limited

 Royal Sundaram Alliance Insurance Company Limited

 IFFCO Tokio General Insurance Co. Ltd

 TATA AIG General Insurance Company Ltd.

 Bajaj Allianz General Insurance Company Limited

 ICICI Lombard General Insurance Company Limited.

LIFE INSURANCE CORPORATION

Life insurance made its debut in India well ob4er 100 years ago. Its salient features are not as
widely understood in our county, as they ought to be. What follows is an attempt to acquaint
readers with some of the concept of life insurance, with special reference to LIC. It should,
however, be clearly understood that the following narration is by no means an exhaustive
description of terms and conditions of LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office. An LIC it will be glad to help
you choose the life insurance plan to meet your needs and render policy servicing.
 Banks v/s Insurance

BANKS INSURANCE

Returns Low Better

Administrative exp. High Low

Risk Low Moderate

Investment options Less More

Network High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not transparent Transparent

Interest calculation Minimum balance Everyday

between 10th. & 30th. Of
every month
Guarantee Maximum Rs.1 lakh on None
deposits
 IMPORTANCE OF INSURANCE

If there is some one who would suffer economic hardship if you died, then the answer is
yes............you need life insurance! Families with young children have a clear need of life
insurance. If both spouses work, the loss of one income will cause the family immediate
economic hardship and make it harder for them to realize future goals, such as paying for the
children's education.

But even if one spouse works 'inside the home' and doesn't being in a formal income, his or
her death will require the surviving spouse to hire child care, housekeepers and other
professional to help run the house hold and that can be a significant new expense.

If you are married without children or single, then you may need life insurance to protect your
partner or surviving family members against the costs associated with your death. Funeral
expenses, probate and administrative fees, outstanding debts, special obligations to charities
and federal and state taxes are costs that all of us must consider. And, they can add up
quickly. Unless you already have sufficient financial resources, your survivors will probably
need life insurance to cover these expenses.

Along with your savings and investment strategy, life insurance should be a part of your long
term financial planning. You may not like to think about it, but your death can be costly to your
loved ones. At the very least, there will be funeral and burial costs.

There may also be estate taxes and outstanding debts to pay, such as medical expenses not
covered by health insurance. If you have dependents, they will have to cope up with these
costs while no longer having your income to rely on. The proceeds from a life insurance policy
can be of tremendous value at this time.
 THE BEGINNINGS OF LIFE INSURANCE

Life assurance can be traced back to the sixteenth century, when shot – term assurance were
usually affected as collateral security for loans, indeed, the first life assurance were marine
insurance underwriters; policies often being written on the life of a merchant sailing with his
goods. The first recorded life policy was in 1583, which was subject to an underwriters of
England on June 18, 1583, for “12 months” for $382.6s.8d.

On the life of fine William Gigots. “Through, the policy concluded with the words, “ God send
the said William Gibbons health and life”, he died on may 9, 1584. the underwriters contended
that the policy period of “12 months” related to lunar months, which had expired. But the court
ruled out that payment must be made and the underwriter paid the sum assumed. Besides, in
the sixteenth and seventeenth centuries, evidences of the existence of shot – term policies are
available, which cover the risk of death within a limited period only.

They were particularly used for merchants and others on voyages or on the lives of debtors as
security against loan. In the seventeenth and eighteenth centuries mutual assurance the
Amicable Society, the Equitable Life Assurance Society and Westminster Society have and
important place, Subsequently Life Assurance Act. 1774 and Life Assurance Companies Act,
1870 were passed to established the business. In India the first Insurance Act was passed in
1912, which was replaced by a comprehensive Insurance Act of 1938
.
This Act was amended in 1950. Finally, the Government of India nationalized the entire life
insurance business in the year 1956 by passing the life Insurance corporation Act, 1956. Thus
at present the entire the insurance boniness in being transacted by the Life Insurance
Corporation of India, which is popularly known as LIC.

The Corporation is an autonomous body and run on sound business principles. Its central
offices are located in Bombay and there are Zonal, Divisional, Branch and sub-offices both in
India and aboard. Thus, we see that in last 2 years a large pool of private as well as other
financial InstitLICon have come forward to provide this very service of insurance like ICICI
PRUDENTIAL, BIRLA SUN LIFE INSURANCE, SBI LIFE INSURANCE, HDFC STANDARD
LIFE INSURANCE etc. the share of private life insurance players has also increased
marginally.

WHY LIFE INSURANCE?

INSTRUMENT Safety Liquidity Post tax Tax Life

return Efficiency Cover
Provident High Low Good Good None
Fund
Shares Low Average Uncertain Low None
KVP’s,NSC’s High Low Average Low None

Bonds,Fixed Average Average Low Low None

Deposits
Insurance Average High Uncertain Average None
Policy
Postal Saving High Low Average Average None
Schemes
LIFE HIGH LOW GOOD HIGH YES
INSURANCE

KIND OF LIFE INSURANCE POLICIES

 Whole Life Policy

 Endowment policy

 Term Policy

 Annuity Policy

WHOLE LIFE POLICY

 As the name suggests, whole life assurance policy lasts for the whole
of the assureds life, the sum being payable at death only. In other words, whole life insurance
is a type of life insurance contract under which the policyholder is covered for his entire life.

WHOLE LIFE POLICY IS -:

 Ordinary Whole Life Policy

 Limited payment Whole Life Policy

 Single Premium Whole Life Policy

 Special Whole Life Policy

 Convertible Whole Life Policy

ENDOWMENT POLICY

Endowment insurance is a type of life insurance contract, which provides for the sum assured
to be paid wither at death or after a fixed number of years. Whichever comes first? The
assured when affecting a policy selects the number of years.

Thus, under this plan the company promises to pay a stated amount of money to the
beneficiary at one. If the inured dies during the life of the policy (called the endowment period)
or to the insured himself if he survives up to the end of the endowment period. I

n other words, an endowment policy provides for the payment of the insured amo9unt either on
death or on the attainment of a certain age, whichever is earlier. Suppose, a man takes an
endowment policy for 20 years or even after a few weeks or days of taking lout the policy, the
sum assured becomes payable to his dependents. As against this if he survives this periods,
they policy “matures” and he will himself receive the payment of the sum assured on tehexpiry
of 20 years.

THE ENDOWMENT POLICIES ARE

 Ordinary Endowment policy

 Pure Endowment policy

 Double Endowment policy

 Optional Endowment policy

 Anticipated Endowment policy

 Educational Endowment policy etc.

TERM INSURANCE POLICY

A term insurance policy is the oldest form of the policy. here the insurer makes the payments
only if the insured dies within the the “ term “ of the policy of specified policy. In other words it
is conflicts between the insured & the insurer whereby he company promise pay the face
amount of the policy to a third party if the insured die before a certain or age however if
insured doesn’t die during the specified time the contract expired & is treated a cancelled the
insurer pay nothing on the policy .

thus , this contract run only for a temporary specified period of time & that a little or no cash
value accumulated as saving or emergency fund for the policyholder . The policy may be
written for assured a period of one year & may be issued for; longer period 5, 10, 20 years.
This is plan of special interest to those who need extra protection for a short duration like
businessmen on journey, for as temporary cover to secure as an outstanding debt.
TERM INSURANCE POLICIES ARE

 Ordinary Policy

 Convertible Policy

 Decreasing Policy

 Renewable term Policy

 Yearly Renewable Policy

 ADVANTAGES OF LIFE INSURANCE

1. It is superior to an ordinary saving plan:

Unlike other saving plans, if affords full protection against

risk of death. In case of death, the full sum assured is made available under a life assurance
policy; whereas under saving scheme the total accumulated saving alone will be available. The
later will be considerable less than the sum assured, if death occurs during early years.

2. Easy settlement & protection against creditors:

The life assured can name person(s) called

Nominee to whom the policy money would be payable in the event of his death. The proceeds
of a life policy can be protected against the claim of the creditors of the life assured by effecting
a valid assignment of the policy.

3. Ready marketability & suitability for quick borrowing:

After an initial period, if the policyholder

finds him unable to continue payment of premiums, he can surrender the policy for a cash
sum. Alternatively, he can tide over a temporary difficulty by taking loan on the sole security of
the policy without delay. Further, a life insurance policy is sometimes acceptable as security for
a commercial loan.

4. Tax Relief:

The Indian Income-Tax allows deduction of certain portion of the taxable income,
which is diverted to payment of life insurance premiums from the total income tax liability.
When this tax relief is taken into account, it will be found that the assured is in effect paying a
lower premium for his insurance.
 .

Research
Methodology
 Objective of Study

Project study which is being conducted by me for the Eight weeks is not only a formality for
the fulfillment of the two year full time course of BACHLOR OF BUSINESS
ADMINISTRATION But being a management student I tried my best to extract best of the
information available in the market for the use of society and people. The professional
objectives which are being covered by me in this project are as following-

 To know the perception and conception of customers towards insurance products and

specially focused for ICICI Prudential’s product.

 To find the different way of convincing customers.

 To study brand image of the company in the market.

 To give suitable suggestions.

 To get the main findings based on questionnaire.

 To know awareness of consumer about ICICI Prudential.

 To increase the business of the Company

 To find satisfaction of consumer with ICICI Prudential.

 To know SWOT of company (strength, weakness, opportunity and threats).

 Type of Research

MARKETING RESEARCH
Marketing research is the
function which likes the consumers, customers & public t the marketer through information
which is used to identify & define marketing opportunities & problems, generate, refine &
evaluate marketing action; monitor marketing performances & improve understanding of
marketing as a process.

TYPES OF MARKETING RESEARCH

On the basis of fundamental objectives of the research, marketing research
projects are classified into two branches:
 Exploratory Research
 Conclusive Research

EXPLORATORY RESEARCH –

It seeks to discover new relationships. All marketing research projects start with it. This is a
preliminary phase & is absolutely essential in order to obtain a proper definition of problems
at hand. The major emphasis is on the discovery of ideas & insight.

Exploratory research looks for hypothesis in well-established fields of study. Hypothesis

usually comes from ideas developed in previous researches or are delivered from theory.
Hypothesis is tentative answer to the question that serves as guide for most of the research
projects.

CONCLUSIVE RESEARCH-
Conclusive research provides information that helps the execLICve so that he can make a
rational decision. This study has done well while attempting to arrive at a more clear
description of an apparent problem.
 In the initial stage, up to the final discussion of the questionnaire, we conducted our research
through exploratory research. It includes the survey of related literature and articles, depth
interview and public opinion through questionnaire. It focuses on the discovery of new ideas.
For this type of research respondents should be given sufficient time express themselves. This
type of research can be conducted to find out the possible causes like the sales might increase
due to advisors efficiency.
 Sample Design:

In our project we prefer to go for Random Sampling. Random sampling is said to be a

LOTTERY METHOD in which individual units are picked up from whole group not deliberately

by some mechanical process. The result obtained from probability, we can measure the errors

of estimation or the significance of results obtained from a random sample and their facts

brings out the superiority design over the rest sampling design. The sample will have the same

composition and characteristic as the universe.

Sample Frame: Different area of ALWAR

ON the basis of our survey in Alwar market, insurance is a growing industry & the easiest
mean to earn more & more money.

Insurance company working in Alwar is:-

 LIC

 Allianz bajaj

 ICICI Prudential LIC Ltd.

 SBI life

 Birla sun life

 Aviva
 SAMPLE SIZE: Arbitrary kept at 150 for convince and timeliness.
TIME: 1st Nov. - 15th Dec. 2008

Collection of Data

This step helps in deciding and selecting the techniques that shall be used to collect relevant
information which can be used to solve the research problem.

The techniques used by me for data collection are :

Primary data
1. Secondary data
2. Tertiary data

1 PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus happen
to be original in character.
Primary data are:

♦ Interview method
♦ Questionnaire method

2 SECONDARY DATA

Secondary data means data are already available i.e., they refer to the data, which have
already been collected and analyzed by someone else.

Secondary data are:

♦ Books

♦ Magazines

♦ Newspapers

♦ Report

♦ Publication of various associations

♦ Connected with business, industry, banks stock exchange, etc.

 Scope of the Study

Each and every project study along with its certain objectives also has scope for future. And
this scope in future gives to new researches a new need to research a new project with a new
scope. Scope of the study not only consist one or two future business plan but sometime it also
gives idea about a new business which becomes much more profitable for the researches then
the older one.
Scope of the study could give the projected scenario for a new successful
strategy with a proper implementation plan. Whatever scope I observed in my project are not
exactly having all the features of the scope which I described above but also not lacking all the
features.

 Research study could give an idea of network expansion for capturing more market and

customer with better services and lower cost, with out compromising with quality.

 In future customer requirements could be added with the product and services for getting

an edge over competitors.

 Consumer behavior could also be used for the purpose of launching a new product with

extra benefits which are required by customers for their account (saving or current) and/or

for their investments.

 Factors which are responsible for the performance for company can also be used for the

modification of the strategy and product for being more profitable.

 Factors which I observed while doing project study are following-

 Competitors

 Customer Behavior

 Current Scenario

 Governmental Policy
  Economic conditions

Limitations Of the Study

 As the movement throughout the city is not possible due to certain constraints so the

movement was quite restricted

 Lack of trust on any Company of Private Sector.

 Lack of knowledge about the products of ICICI Prudential and their total

 The primary data was confined to only one branch of ALWAR

 Some respondents did not take the Survey seriously and did not give appropriate

answers to the questions asked.

 Some customers showed no interest in answering the questions because of shortage of

time.

 The analysis has been classified on the basis of view expressed by respondents.

 It was not possible to understand thoroughly about the different marketing aspects of

the Financial Consultant within 8 weeks.

 As stipend money was not given it was difficult to continue the project work

 All the work was limited in some limited areas of Alwar so the findings should not be

generalized.
 Statistical Analysis

In this segment I will show my findings in the form of graphs and charts. All the data which I got

form the market will not be disclosed over here but extract of that in the form of information will

definitely be here.

Detail:

Size of Sample : 150

Area :INDORE

Type of Data : 1. Primary

: 2. Secondary

Industry : Insurance

Respondent : Customers
 Company profile
Shriram Group
Group Profile

Shriram Group, established in 1974, is among the leading corporate houses in India and is
a major player in the Indian financial services sector. The Shriram Group’s focus is on
financial services that reach out to a large number of common people – providing them
opportunities to improve their prosperity. Financial Services constitute the core business
of the Group, with Shriram being a clear leader in the truck financing and chit business.
Shriram Transport Finance Company, is the flagship company of the Group, It is the
largest Commercial Vehicle Financing NBFC in the country. Chit Fund Business of the
Shriram Group is Numero Uno in the industry across India. In Consumer Finance, the
Shriram Group has major presence in South India.

Shriram Group had entered the insurance business with a long term focus and to provide
better value and service to the customer. It has partnered with Sanlam, a leading insurer
in South Africa, for both Life and Non Life Insurance business. The Group had entered in
the life Insurance business in December’05 and will be launching its Non-Life insurance
business in July’08.

The Group is currently focusing in a major way in the distribLICon of financial products
including stock broking business and wealth management. Shriram Group has been
pursuing diversification in areas other than financial services. Currently the group has
presence in project engineering, property development, auto ancillaries and software
services and is also looking to enter other industries.

The group has partnered with many domestic and foreign partners. Due to its large size,
reach and reputation it enjoys the patronage of a large number of banks and financial
institLICons.

Shriram Network is one of its kinds in India having presence in virtually every state in the country with
high level of penetration in the Southern States.
 Network Size at a Glance

Components Strengths
Assets Under Management (Rs Cr) Over 32,570
Branch Network (Nos.) Over 1,600
Manpower Strength (Nos.) Over 31,800
Customer Base (Nos.) Over 56,00,000

Group’s Diversified Business

 Introduction
SHRIRAM FORTUNE SOLLICONS LTD.
Shriram Fortune SolLICons Ltd, the distribLICon arm of Shriram Group
is headquartered at Indore. It is one of the leading integrated financial
services Company of India, backed by Shriram Group and a proven
track record.

Vision: “To become the most successful and admired Financial

Services distribLICon Super Power House”
Incorporated in 1974, the Shriram Group is a seasoned group of
companies with businesses in tough to copy markets, home grown
talent and a native management culture. The Group’s reputation for
effectiveness, transparency and integrity has helped it to become one
of India’s largest Financial Services Network. It’s main line of activities
in financial services include chit fund, truck financing, consumer
durables, financing stock broking, insurance broking and life insurance.
The Group’s Financial Services Businesses manage assets exceeding
Rs.27, 000 cores, boast of 4 million clients, served by the largest
agency force in private sector consisting of more than 50,000 loyal and
dedicated Agents and more than 12,000 employees, through nearly
1,000 Branches across India. For over three decades, we have been
helping people realize their aspiration by helping them, make their
wealth grow and plan their financial lives.

The distribLICon house of Shriram Group, Shriram Fortune SolLICon Ltd,

encompasses a range of services, each catering to a specific need or
segment. Started in September 2006, we provide investment
assistance by helping people and keep regular track of their
investment.

The four product category in which the company deals in are:

• FD’s & Debentures

Shriram Fortune SolLICons mobilizes funds through Fixed

Deposits, Debentures and Bonds of Shriram Group
Companies.

• Life Insurance

Shriram Fortune SolLICons distributes Life Insurance products of

Shriram Life Insurance Company and has been instrumental in
making Shriram Life as one of the very few profitable private Life
Insurance Players.

• Non-LifeInsurance

Shriram Fortune SolLICons distributes Non – Life products including Motor

Insurance, Health Insurance, Travel Insurance, Personal Accident Insurance,
 Home Insurance, Shop Insurance Policies of Shriram General Insurance
Company along with a few more General Insurance Companies of India.

• Insurance Policy

Shriram Fortune SolLICons also distributes Insurance Policy of all Asset

Management Companies (AMCs) giving the customer wide range of choice for
Investment and wealth management. Having an AUM in excess of Rs.500 Cr. as
on 30th September 08.

The Products are promoted by a well trained and dedicated Agency

force, through a nationwide Branch network. The Company taps into
the 40-lakh strong Pan-India customer base of the Shriram Group, as
well as new clients through newer channels creating a huge demand
for Investment & Insurance Products. It is fast emerging as a proven
delivery network with more than 100 branches of its own and is on its
way to achieve the Vision.

About CAMS, Karvy, Franklinn

Insurance Policy is another saving or investment vehicle, akin to, but
different from bank deposits, shares etc., It is an entity wherein
people / institLICons pool small samounts of money into larger
amounts for investment and achieve returns with minimum risk, which
otherwise is not possible by a common man.

There are 3 Registrars who records all the transactions of Insurance Policy in India.
Providing timely and accurate information is their main obligation.
They are as follows:
1. CAMS (Computer Age Management Services Pvt. Ltd )
2. Karvy
 3. Franklin

1. CAMS
Computer Age Management Services Pvt. Ltd. (CAMS) offers a comprehensive
package of Transaction Processing and Customer Care services to the Insurance
Policy industry, and has been constantly raising the bar in customer service since1995.

Set up in 1988 as an IT Services Company, CAMS moved from Capital Market

Transaction Processing to Customer Care and Transaction Processing for Insurance
Policy and then into Transaction Processing for Insurance. CAMS today has the most
appropriate and advanced technology employed, with the best network for service
processed in India, CAMS processes 50 or more. CAMS is clearly the delivery
through its network of Service Centers in all major cities in India.

Currently CAMS provides this comprehensive package of services to 18 Indian

Insurance Policy families as services provider. Of every 100 Insurance Policy
transactions

Working of CAMS

In a complex processing environment, and where sub-agents of distributors have

information needs, it becomes imperative for large distributors to provide efficient
services to their constituents.

CAMS offer a Distributors Service Package for distributors who operate

through retail subagents and who have a retail investor base.

The Scope of Distributor Services is listed below-

Maintenance of Sub broker Master Details.

Maintenance of Products Carried Master Details.
Maintenance of Primary Brokerage Structures for receivable
brokerage.
Maintenance of Secondary Brokerage Structures for payable sub-
brokerage
Maintenance of Investor Details.
Creation and maintenance of Product Classes.
Maintenance of transaction-specific or sub-broker-specific Financial
Consultant (FC) Master Details.
Import of daily transaction details of investors - Initial frequency
weekly.
Import of month-end front end brokerage payable received from
issuers.
Import of month-end net asset positions received from issuers.
Import of month-end trailer fees payable received from issuers.
Reconciliation of front-end brokerages as computed by issuers with
those computed locally.
Computation of sub-brokerage payable in respect of front-end
commissions received.
Computation of trailer fees payable to sub-brokers in respect of Net
assets to their credit.
Computation of incentives payable to sub-brokers in respect of sales
achieved.
Computation of commission payable to Financial Consultants in
respect of Sales effected with their assistance.
Computation of commission payable to Financial Consultants in
respect of Net Assets to their credit.
Reporting the commissions payable to sub-brokers and Financial
Consultants, the following -

Sales for the month by investor.

Redemptions for the month by investor.
Asset position movement by investor.
Front-end commissions payable by transaction to sub-broker.
Trailer Fees payable by transaction to sub-broker.
Front-end commission payable by transaction to Financial Consultant.
Trailer Fees payable by transaction to financial consultant.
Target based Incentive Commissions payable to Sub-brokers.
Target based Incentive Commissions payable to Financial Consultants..

Sub-brokers' Commission Accounts maintenance.

Paying out the sub-brokerage payable to sub-brokers and Financial
Consultants.
Basic MIS Reports, the following -

Gross/Net Sales for a period by product class by sub-broker by city.

Redemption for a period by product class by sub-brokers by city.
Net Assets movement for a period by product class by sub-broker by city.
Historical performance of individual sub-brokers/FCs.

Building in ability to view investor’s portfolio under one client

number, subject to discussions with issuers.
Building in ability to view investors as families or households, subject
to discussion with issuers.
All services are based on proprietary software products developed by
their associate, M/s.Acsys Software, in association with leading
Financial Distributors.

Similarly Karvy & Franklin also provide such services to the Distributer
companies.

Working of SFSL
Since it is a distributor Company., it is entitled to get commission from the Companies.
for which it works. Every month large number of transactions takes place so for that huge
data, MIS is maintained by the Company. Then for commission purpose Company first of
all download the data of transactions from these registrars & then match it with our own
data. Each company has an ARN (AMFI Registration number) (45888) so that it can
download only its own data. It is match on either of the following parameters:
Application
Folio Number
Investor Name
Cheque Number
PAN Number
Investment Amount etc.

On the basis of above mentioned criteria if the data tally with downloaded information
then the approved commission is granted to concerned person.

Temporary Receipt: (This is the key term). The receipt which is given by our agent to
investor for assurance that the business has been logged in by Shriram Fortune SolLICons
Ltd, It works like acknowledgement that SFSL recd the investment amount from investor.

MIS is maintained by the Company on the basis of all the data send by States TR
(Temporary Receipt) on MS Excel & Idea. This Excel is send to Head Office for
commission purpose. Then company compiles all the data.

Process for Commission:

Process -01
Download TR (Temporary Receipt) data from IDEAS in excel format.
(Each company has an ARN (AMFI Registration number) (45888) so that it can
download only its own data.)
Pick all “Complete & Closed” & “Deleted” cases for process.
All “to be released” cases hold by the company due to open in IDEAS.
Data download are in encoding format.
Decode all these cases & input all details in approved TR format (26 columns).
Distribute TR data format wise.

Process -02
Now the company has two data:
1. TR which is provided by State.
2. Company MIS (Online downloaded or Received with respective companies).

Process -03
Matching both the data with either of the following parameters:
Cover Note
Policy Number
Application no.
Folio Number
Investor Name
Cheque Number
PAN Number
Investment Amount etc.
Respective Company Name
Scheme
Location
Branch
Agent Code

Process-04
After matching if:
Matched: Available for Payment
Cancelled / Rejected: Cheque Bounce / Policy Cancelled
Unmatched: Unmatched / Incomplete

Process -05
Insurance Policy: KFC(Karvin, Franklin, CAMS) provide the facility to check the
transaction status.
Life Insurance: Shriram Life Insurance Company provides online access to check
transaction status.
General Insurance: Trying to get online access (under process).
Process -06(01)
Still Unmatched data :
Data send to respective state operations on weekly basis to provide additional/correct
information.
ACTION TO BE TAKEN BY STATE OPS
Try to collect investment details like cheque number /cheque amount.
Try to collect Vehicle number or RC number in case of GI.
Try to Collect Pan no in case of MF.

Process -06(02)
STILL UNMATHCED DATA
MF: Data send to Respective AMCs for provide status.
GI: Data send to Respective GI companies.
LI: Data send to SLIC.

Output
Not in SFLS business code.
Provided information are Incomplete / Incorrect.
Unable to trace with given details.

Head Office role in this field

 For Communication between HO ops & state ops.
 Single point contact for all type of operations related queries like :
 Discrepancy in commission amount
 Correction required in cheques like agent name or cheque amount.
 To reissue new cheques against missing/bounced or expired cheques(Cheque date
old more than 6 months)
 For updating or correction in TR data like:
 Agency code
 Policy No./Cover note No./Application No./Folio No.
 Location/Branch/TR number/Cheque number.

UPDATED TR MASTER
 Provide weekly basis to respective state operations /state heads/ Regional ops
manager.
 To check the current status of TR.
 To provide the information about pending cases reasons(hold for agency
code/investor name mismatched/agency name mismatched)
 To provide incomplete cases details which are not able to process due to
information was wrong or incomplete.(where company reference number not
mentioned)
 ANALYSIS
&
INTERPRETATION
OF
DATA
DATA ANALYSIS AND INTERPRETATION

TABLE: 4.1 OCCUPATIONS OF THE RESPONDENTS:

Occupation Respondents

Private Job 32

Govt. Job 20

Business 26

Retired 22

Chart:4.1

35

30

25
Private Job
20 Govt. Job
15 Business
Retired
10

Interpretation:
32% of the respondents were in Private Job, 20% of the respondents were in Govt. Jobs, 26% of the
respondents were doing Business and 22% of the respondents were Retired persons. Thus the research
work includes people from varying fields.

TABLE: 4.2 INVESTMENT OF MONEY FOR GROWTH

Options Percentage of Respondents

Yes 88

No 12

Chart: 4.2
Interpretation:

88% of the respondents say yes they invest their money to grow. This shows that the main aim of most
of the investors is to grow their idle funds so that they can overcome the problems of inflation, etc.

TABLE: 4.3 THE VARIOUS INVESTMENT OPTIONS OPTED FOR:

Options Percentage of respondents

Insurance Policy 30

Equity 20

Commodity market 6

Fixed deposits 22

Bonds 16

Property 4

Others 2

Insurance Policy
30

25 Equity

20 Commodity
market
15
Fixed deposits
10
Bonds
5
Property
0
Percentage of respondents
Others

Chart 4.3 Investment options

Interpretation:
Most of the respondents invest their money in Fixed Deposits, Insurance Policy and Equity Market only
6% of the respondents invest their money in Commodity Market. This shows investors preference for
higher returns providing assets.
 TABLE 4.4 OPTIONS WHICH GET THE BEST RETURNS

Options Percentage of respondents

Insurance Policy 20

Equity 22

Commodity market 16

Fixed deposits 18

Bonds 8

Property 14

Others 2

Insurance Policy
25

Equity
20

Commodity
15
market
Fixeddeposits
10
Bonds
5
Property
0
Percentage of respondents
Others

Chart: 4.4 Option with best return

Interpretation:
Most of the respondents say they will get more returns in Equity Market. Statistics also shows that
equity market is the highest fluctuating investment option but at the same time carries maximum returns
as compared to other investment options.
 TABLE:4.5 BASIC OBJECTIVE AT THE TIME OF INVESTMENT

Options % of respondents

Regular returns 52

Income tax benefit 26

Capital appropriation 22

Chart:4.5

Interpretation:

52% of the respondents say basic objectives at the time of investment is Regular returns, 26% of the
respondents say basic objectives at the time of investment. Thus the main objective of investment by
these individual is regular returns
 TABLE: 4.6 PREFERENCES WHILE INVESTING.

Options % of respondents

More benefits 22

More security 62

Others, please specify 16

Chart 4.6

Interpretation:

22% of the respondents say they get more benefits, 62% of the respondents say they would like more
security. Thus the investors have more likeliness for security than benefits.
 TABLE 4.7 PREFERRED INVESTMENT OPTION, IF IT IS INSURANCE
POLICY OR SHARES

Options % of respondents

Insurance Policy 68

Share 22

Both 10

70
60
50
40 Insurance Policy
30 Share
Both
20
10
0
%of respondents

Chart 4.7:

Interpretation:

68% of the respondents say they would go for Insurance Policy, 22% of the respondents say they would
prefer shares.
 TABLE: 4.8 THE MOST IMPORTANT PARAMETER WHILE INVESTING

Options % of respondents

Returns 26

Risk 28

Credit rating 10

Inflation 8

Company 18

Lock in period 10

Chart:4.8

Interpretation:
28% of the respondents see that the investment is risk free, 26% of the respondents look for returns
before investing, and 18% go for the company’s position before investing. Thus we see a balanced
examination of almost regular factors of the investment made.

TABLE: 4.9 INVESTORS PLANNING TO INVEST IN INSURANCE POLICY

Options % of respondents

Yes 46

No 54

Chart 4.9
Interpretation:

46% of the respondents are planning to invest in Insurance Policy. This may be due a large number of
factors that individuals do not have higher inclination towards investment. The next question gives the
answer to the reason for such non-investment.
 TABLE: 4.10 REASONS FOR SUCH DENIAL FOR INVESTMENT:

OPTIONS % OF RESPONDENTS

Lack of awareness 30

Risk 24

Fluctuating returns 26

Long term investment 20

Chart: 4.10

Interpretation:

30% of the respondents don’t want to invest in Insurance Policy because of Lack of Awareness, 24% of
the respondents were not investing in Insurance Policy because of risk. Thus there is a need to give
proper knowledge about investment options to large number of people so that the investment market
could show a significant increase.
 TABLE: 4.11 PREFERRED SCHEME FOR INVESTMENT IN INSURANCE
POLICY

Options % of respondents

Equity 30

Debt 26

Balanced 24

Gilt 20

Index 0

Chart 4.11
Interpretation:

30% of the respondents have invested in Equity funds, 26% of the respondents have invested in Debt
Funds, 24% of the respondents have invested and Balanced funds, 20% of the respondents have invested
in Gilt Funds. Thus we see that there is higher inclination towards equity funds as they draw higher
returns.

TABLE: 4.12 PREFERRED COMPANIES FOR INSURANCE POLICY

INVESTMENT
Options Percentage of Respondents

HDFCSL 14

LIC 18

ICICI PRU LIFE 22

SBI Insurance Policy 20

Tata –AIG Insurance Policy 26

30

25

20 HDFCSL
LIC
15 ICICI PRU LIFE
SBI Insurance Policy
10 Tata –AIG Insurance Policy

Chart:4.12

Interpretation:

14% of the respondents were planning to invest in HDFC Insurance Policy, 18% of the Respondents say
LIC Insurance Policy, 22% of the respondents say ICICI PRUDENTIAL, 20% of the respondents say
they prefer to invest in SBI Insurance Policy, 26% of the respondents prefer Franklin Templeton
Insurance Policy as it is giving maximum Returns.
 TABLE: 4.13 THE REASON FOR PREFERRING ICICI PRUDENTIAL

Options % of respondents

Returns 20

Risk 16

Credit rating 12

Inflation 14

Company 30

Lock in period 8

Chart: 4.13
Interpretation:

20% of the respondents want to invest in ICICI PRUDENTIAL due to more returns, 30% due to its
reputation in market.

TABLE: 4.14 PREFFERD SCHEMES OF ICICI PRUDENTIAL

Options % of respondents

Equity 30

Debt 26

Balanced 24

Gilt 20

Index 0
Interpretation:

30% of the respondents have invested in Equity funds, 26% of the respondents have invested in Debt
Funds, 24% of the respondents have invested n balanced funds, and 20% of the respondents have
invested in Gilt Funds.
 OBSERVATIONS & FINDINGS

 Most of the respondents of the given questionnaire were from private jobs. Since the data
collection was done randomly it is observed that higher number of people came from private jobs
where their income is satisfiable and due to this they have an inclination towards investment.

 Most of the respondents say that they invest their money. This investment can be either in fixed
assets or any kind of purchase of security. But as per the outcome of the result most of them have
more or less interest in shares and online trading.

 There are very less number of investors who invest in the commodity market as compared to
other investment option. This may be due to lack of knowledge and accessibility.

 Most of the investors said that equity trading gives the highest returns. Statistical data proves the
same. There are high fluctuations in the equity share market. If on one side it fetches high
returns, on the other it can bring similar losses. Thus it is more of a riskier investment but good
players do invest in these.

 Most of the investors prefer regular returns than taking the advantage of tax benefits or capital
appropriation. This is because they have more inclination towards returns than availing any other
benefit out of the investment.

 Just like investors have higher preference for regular returns, they also prefer having more
security given to them for their investment. Most of the respondents favoured more security of
their asset than anything else.
 Majority of the investors have higher inclination towards Insurance Policy investment. The
reason so assumed is low risk and regular and better returns than other available options for
investment.

 The main idea of every investor is to firstly examine the company’s profile and related issues and
then invest. Most of them look for risk and return factors before investing.

 There were a good percentage of respondents who were further planning to invest in Insurance
Policy. This may be due to favourable market conditions, government subsidies and money
control methods or growth of the Insurance Policy industry.

 Among those who had no plans for investing in Insurance Policy said that the reason for the
same is that they are not much aware of the Insurance Policy concepts and related industry. Also
they felt that it carries a moderate risk which they were not ready to bear.

 Most of the respondents invested their money in equity market. Although there was a similar
number of people who invested equally in debt, balanced and gilt funds.

 There was higher number of investors who preferred ICICI PRUDENTIAL but not the highest.

 The respondents were planning to invest in ICICI PRUDENTIAL because of its higher returns
and goodwill in the market. ICICI PRUDENTIAL also carries lower risks and thus preferred by
investors.
 CONCLUSIONS

Investors maturity has increased as today investors are willing to accept the fact that Insurance
Policy can lose money because fund manager are not infallible. Market is becoming complex & it
means that the individual investor will not have the time to play stock game on his own. The
penetration of Insurance Policy have increased this will further help Insurance Policy to reach to
every region of India. Newer options & new schemes have created new markets which could be
explored in future. Last but not the least Insurance Policy regulations will help to boast up the
investor confidence. Investors prefer ICICI PRUDENTIAL because of more returns and low risk.
Systematic Investment Plans are also available.

Winning with stocks means performing at least as well as a major market index over the long haul.
If one can sidestep the common investor mistakes, then one has taken the first and biggest step in the
right direction. The most important consideration while making investment decision was Return
aspect followed by Safety, Liquidity and Taxability. Diversified stock portfolios have offered
superior long term inflation Protection. Equities are especially important today with people living
longer and retiring early. To understand stock funds, one needs to be familiar with the characteristics
of the different types of companies they hold. Portfolio managers have done a fairly good job in
generating positive returns. It may lead to gain investors confidence. On the basis of the analysis the
performance of the schemes during the study period can be concluded to be good.

Those who want to eliminate the risk element but still want to reap a better then it would be
advisable to go for debt or arbitrage schemes which ensure both safety and returns.

So the future of Insurance Policy in India is bright, because it meets investor s needs perfectly. This
will give boost to Indian investors and will attract foreign investors also.
 SUGGESTIONS

 The insurance industries should try to minimize their risk factor and try their best to enhance
their return percentage.

 The Company should try improving their customer service and other schemes to attract more
investors.

 Proper assistance should be provided to the customer at the time of claim settlement.

 All the relevant and necessary details about the company should be properly disclosed to the
customers.

 Regular advertisement of the company can be given.

 The Company can try to find new markets especially in the rural areas.

 The Company should do frequent analysis of the competitors.

 Questionnaire:

Name: Gender:

Address: Contact no:

Q.1 what is your occupation?

A. Private Job B. Govt. Job

C. Business D. Retired

Q.2 Do you invest your money to grow?

A. YES B. NO

Q.3 what are the various investment options that u choose from?

A. Insurance Policy B. Bonds

C. Fixed deposits D. Property
E. Commodity market F. Equity
G. Others

Q.4 which of the given options procures the best returns?

A. Insurance Policy B. Bonds

C. Fixed deposits D. Property
E. Commodity market F. Equity
G. Others
Q.5 what is your basic objective at the time of investment?

A. Regular returns. B. tax benefit.

C. capital appropriation.

Q.6 what factor would you prefer more while investing?

A. more benefits B. more security.

If others, please specify.

Q.7 which is the most preferred investment option amongst Insurance Policy and shares?

Q.8 what are the parameters that you judge on before investing?

Returns Risk

Credit rating Inflation

Company Lock in period

Q.9 Do you have any plans to invest in Insurance Policy? Y/N

Q.10 If no, please specify the reason. Is it?

A. lack of awareness B. risk

C. fluctuating returns D. long term investment

Q.11. which is the scheme that you prefer for investment?

A. Equity B. Balanced

C. Debt D. Gilt

E. Index

Q.12. which are the companies that you choose to invest in?

Options

HDFCSL

LIC

ICICI PRU LIFE

SBI Insurance Policy

Tata –AIG Insurance Policy

Q.13. what is the reason for preferring ICICI PRUDENTIAL?

A. low risk B. high returns

C. lock in period D. company profile

E. credit rating F. inflation

Q.14. which scheme of ICICI PRUDENTIAL would you like to adopt?

A. Equity B. Debt

C. Gilt D. Index

E. Balanced
 BIBLIOGRAPHY
BOOKS:

• Bhalla V.K. (2001), Financial Management & Policy II Edition, Anmol

Publications, New Delhi

• Khan & Jain(1997), Financial Management and Policy, Tata Mc Graw Hill, New

Delhi

• Kothari C.R. (2000), Research Methodology, Wishwa Prakashan, New Delhi

• Prasanna Chandra (1999), Financial Management, Tata McGraw Hill, New Delhi.

• Rustagi R.P. (2002), Financial Management, Galgotia Publication, New Delhi.

• Sharma & Gupta (2001), Financial Management, Kalyani Publication, New Delhi

WEBSITES
• www.karvy.com

• www.investopedia.com

• www.icicipru.com

• http://www.icicipruamc.com/aboutus1.html

• www.appuonline.com.

• www.valuesearchonline.com

• www.shriraminvestment.com