INTRODUCTION

INTRODUCTION
Life Insurance Corporation of India till few years ago used to enjoy a complete monopoly in the life insurance sector of the country. Because of the monopoly it used to offer the consumers its products at unjustifiable rates and the services were also not up to the mark. But because of the changes which were and are being brought about in the Insurance Act the life insurance sector has seen the emergence of many private players. With the emergence of these private players the Life Insurance Corporation of India is facing a stiff competition from them not only in terms of price but also in terms of the services provided. The big question which arises is that will the old horse be able to survive the competition or will the new players emerge victorious. How will these players differentiate their products? Will these private players be able to survive in the future or is it just a temporary phase of flooding of the Indian life insurance market with products in quantity and not in quality? What are the prospects of these private players in the insurance market in future and how much impact they have created on Indian consumer?

CONCEPTUAL FRAMEWORK

WHAT IS LIFE INSURANCE ?

Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/her, to the person entitled to receive the same) on the happening of the event insured against. Usually the insurance contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this benefit. Among other things, the contract also provides for the payment of premiums by the assured. Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty and ensure timely aid of the family in the unfortunate event of the death of the breadwinner. In other words, it is the civilized world's partial solution to the problems caused by death. (1) In a nutshell, life insurance helps in two ways: premature death, which leaves dependent families to fend for itself and old age without visible means of support. Any person who has attained majority and is eligible to enter into a valid contract can take out a life insurance policy for himself / herself. Policies can also be taken out, subject to certain conditions, on the life of ones children. The need for life insurance will change as you grow older. When you are young, you may believe you have no need for life insurance. But as you grow older, possibly get married and take on more responsibilities, your desire to take out an insurance policy increases.

What is the reach and significance of Life Insurance as an economic activity? So long as the maintenance of a family depends on the earning power of the bread-winner. So long as the earning can be destroyed by death, old age or disability. Just so long life as insurance continues to be the keystone of the individual and those who are dependent on him.(2) Thus, life insurance is universal and will play a useful role as long as the family set up survives. Life Insurance caters to an important social need.

NEED FOR LIFE INSURANCE

The need for life insurance comes from the need to safeguard our family. If you care for your familys needs you will definitely consider insurance. Today insurance has become even more important due to the disintegration of the prevalent joint family system, a system in which a number of generations co-existed in harmony, a system in which a sense of financial security was always there as there were more earning members. Times have changed and the nuclear family has emerged. Therefore you need to save a part of income for the future too. This is where insurance helps us. Factors such as fewer numbers of earning members, stress, pollution, increased competition, higher ambitions etc are some of the reasons why insurance has gained importance and where insurance plays a successful role.

Insurance provides a sense of security to the income earner as also to the family. Buying insurance frees the individual from unnecessary financial burden that can otherwise make him spend sleepless nights. The individual has a sense of consolation that he has something to fall back on. From the very beginning of your life, to your retirement age insurance can take care of all your needs. Your child needs good education to mould him into a good citizen. After his schooling he need to go for higher studies, to gain a professional edge over the others - a necessity in this age where cut-throat competition is the rule. His career needs have to be fulfilled. Insurance is a must also because of the uncertain future adversities of life. Accidents, illnesses, disability etc are facts of life which can be extremely devastating. Disability can be taken care of by insurance. Your family will not have to go through the grind due to your present inability. Moreover, retirement, an age when every individual has almost fulfilled his responsibilities and looks forward to relaxing can be painful if not planned properly. Have we considered the increasing inflation and taxes? Will our investment offer us attractive returns under such circumstances? Will it take care of our family after us? An insurance policy will definitely take care of these and a lot more. Insurance has become a necessity today. It provides timely financial as also rewards with bonuses. Life Insurance has come a long way from the earlier days when it was originally conceived as a risk covering medium for short periods of time, covering temporary risk situations, such as sea voyages.

Therefore after going through the discussion let us summarize our points and understand the need of life insurance:

a) Temporary needs / threats

The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc.

b) Regular Savings / Family Protection

Providing for one's family and oneself, as a medium to long term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence for their family.

c) Investment
Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes a one off payment.

d) Old age provision

Provision for later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in one's old age.

e) Children benefit
Provision for the education, marriage and start in life for the children.

f) Special needs provision

Protection against loss arising out of accident, disability, sickness, loan repayment on death.

WHY IS INSURANCE SUPERIOR TO OTHER FORM OF SAVINGS?

An immediate estate is created in favor of the policy holder. Protection in case of death. Liquidity in case of need easy loans are available . Tax relief income tax, wealth tax etc.. Policies can be offered as collateral security. Policies can be taken under M.W.P. Act 1874, to protect against creditors.

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 a rented accommodation, where the rent is 15,000 rupees per month. Mr. Atul has taken up a loan of Rs. 2 lakh. His monthly earnings on average are 40,000 rupees. 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: a) The monthly income, previously provided by Mr. Atul would stop. b) His wife and children may have to seek financial assistance from other relatives. c) His wife may not have enough money to pay back the loan of Rs. 2 lakhs.

d) The family may have to move into a cheaper accommodation. e) His widow may have to take up work to earn money. f) 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 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 Mr. Atul's family with a lump sum that could have been invested to provide an income equal to all or part of his income. In simple words, insurance protects against untimely losses. Insurance has been found useful in the lives of persons 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. TYPES OF INSURANCE POLICIES

Though there are a lot of policies available in the market under different names and by different companies, the policies can broadly be classified into the following categories:

Term Insurance Policy

Whole Life Policy

Money Back Policy

Endowment Policy

Pension Plans Or Annuities

TERM INSURANCE POLICY

Term insurance provides life insurance coverage for a specific period of time. Presently one year, five year, ten year, and fifteen year, are the periods one can buy term life insurance policy. If the insured person dies during the period the insurance is in force, the insurance company pays off the face value of the policy. If the insured lives longer than the term of the policy, the policy is no longer in effect and nothing is paid.

Term insurance is the least expensive form of life insurance. It is commonly used when the insured needs temporary protection or cant afford the premiums for the other forms of life insurance. The other reason an insured may want term insurance is to purchase life insurance and invest the difference between the term policy and cash value policy elsewhere.

Term insurance comes in several forms. There is renewable & non renewable. Non renewable means that on the expiry of your policy you must go under another physical test and filling out another questionnaire. On the other hand, with renewable policy you dont need to undergo these formalities again and you automatically re qualify to continue your policy.

Then there is convertible & non convertible policy. Convertible policy is the one which can be converted into a permanent policy, whereas non convertible is the one which cannot be converted into a permanent policy or in other words the policy cannot be converted to any other form of life insurance policy.

WHOLE LIFE POLICY

The whole life policy provides insurance coverage for the entire life of the insured regardless of how many years the insurance is paid. Premiums may be paid throughout the insureds entire life or for a portion of his life. Additionally, the premium can be paid in one lump sum when the policy is taken out. This is referred to as a single premium whole life policy.

When the premium is paid through out the life it is known as straight life policy, but when the premium is paid for a specified period of time it is known as limited life policy.

The premiums are higher for Whole life insurance as opposed to term insurance. The reason for this is that the policy has investment features as well as death benefits. The cash value portion of the whole life insurance belongs to the insured. One can take it out in the form of policy loans or can cash the policy in. Another advantage of whole life insurance is that the premiums are fixed, i.e. regardless of your age, you pay the same amount for the coverage each year.

Universal Life Insurance Policy

Universal life insurance is a variation of Whole Life. The difference is that with Universal Life the insurance part of the policy is separated from the investment portion of the policy. The cash value portion of the policy is treated as an accumulation fund and investment income is credited to the accumulation fund.

MONEY BACK POLICY

Money back policies provide for periodic payments of partial survival benefits during the term of the policy, as long as the policy holder is alive.

An important feature of this type of policies is that in the event of the death at nay time within the policy term, the death claim comprises the full sum assured, without deduction of nay of any of the survival benefit amounts, which may have already been paid as money back components. Similarly the bonus is also calculated on the entire sum assured.

ENDOWMENT POLICY
An endowment policy covers the risk for a specified period, at the end of which the sum assured is paid back to the policy holder, along with the bonus accumulated during the term of the policy. This feature of payment of endowment to the policy holder when the policys term is complete is responsible for the popularity of endowment policies. The amount received on maturity can either be utilized either to buy an annuity policy to generate a monthly pension for the rest of the life, or put it into any other suitable investment of our choice. This is one important benefit which the endowment policy offers over a whole life insurance policy.

Overall, endowment policies are the most suitable of all insurance plans for covering the risks to a family breadwinners life. Not only do these policies provide financial risk cover for the family, were the policy holder to die prematurely but the insurance amount is also repaid once this risk is over. The endowment amount can then be used for meeting major expenditures such as childrens education and marriage, etc. Alternately, the endowment sum is available for a suitable investment geared to providing an income for the remainder of ones own life. These type of plans are particularly suitable to those who other than having a risk cover are also interested in a savings component simultaneously.

PENSION PLAN OR ANNUITIES

An annuity is an investment that we make, either in a single lump sum or through installments paid over a certain number of years, in return for which we receive a specific sum every year, every half year or every month, either for whole life or a fixed number of years. After the death of an annuitant, or after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded, perhaps along with a small addition, calculated at that time. Annuities differ from all the other form of life insurance in one fundamental way an annuity does not provide any life insurance cover but, instead offers a guaranteed income either for life or a certain period.

Typically annuities are bought to generate income during ones retired life, which is why they are also called pension plans. Annuity premiums and payments are fixed with reference to the duration of human life.

Kind Of Policy

Broad Definition

When Received

Term Policy

Like whole life but offers risk cover for defined periods.

Risk cover in case of death within term of policy.

Whole life Policy

Allows risk cover for whole life. Premiums are paid throughout life.

Received only at the time of death of life assured.

Money Back Policy

Allows planning return of sum assured as lump sum after defined intervals of time.

Received at fixed intervals during the term of the policy.

Endowment Policy

Available for a period and life.

Either on maturity or in

Sum assured may be paid in case the event of death of the of death within the term of the policy. insured, whichever is earlier the sum assured plus the bonus is received by the beneficiary.

Pension Plans Or Annuities

Installments paid for certain years and in turn a specific sum is received every year or month.

Either on the death of the annuitant or on expiry of the fixed annuity period.

SETTLEMENT OPTIONS
When the life insurance policy becomes payable, the insured or the beneficiaries may elect to take payment in one lump sum. However, when the insured or the beneficiary, elect not to take a lump sum payment, there are several other options available to him for receiving his payment which are as follows:

1. INTEREST OPTION
According to this option, the entire proceeds are left with the insurance company and it pays a guaranteed interest rate on your amount, it is similar to leaving our money in a savings account. At any time in the future, the beneficiary can withdraw the money.

2. FIXED AMOUNT OPTION

In this option the beneficiary receives a fixed amount of money each month until the proceeds are exhausted.

3. FIXED PERIOD OPTION

The fixed period option will pay the beneficiary equal payments over a fixed period of time, which may be 10 years ,20 tears or even just 5 years. Excess interest earned will increase the amount of these payments.

4. LIFE INCOME OPTION

This option provides the beneficiary with the proceeds paid over the rest of his life. However when the beneficiary dies the balance of the policy are considered used up.

CHECK LIST FOR BUYING THE RIGHT

DOS Look out for no commission policies.

POLICY

low load life insurance policies have fewer expenses built into them, such as agent commissions and fees for marketing. This can translate into lower premiums or for variable life insurance, these lower expenses mean that a higher percentage of your premium goes to work for you right away so that you can build your cash faster. Buy as soon as the need exists An advantage to buy life insurance earlier in life is that your premiums will be low. As you grow old, the likelihood that you will die increases, which is why older individuals pay more for life insurance.

DONTS
Dont buy a guaranteed issue policy if you are healthy

Guaranteed issue term life insurance policies normally require no medical exam and are sold to anyone who comes along. While these policies can be a great way for people who have medical problems to obtain a life insurance policy, if you are healthy dont buy these policies as you will get better rates by taking the tests. Dont buy more or less than you need Many experts say the best way to pinpoint a smart life insurance benefit amount is through a needs analysis which can be broken into a simple formula Short term needs + long term needs resources = how much life insurance you need

HISTORY AND GROWTH OF LIFE INSURANCE IN INDIA

HISTORY OF INSURANCE
The story so far Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice.

That, perhaps, was how insurance made its beginning.

Life insurance, on the other hand, had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments.

As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these

concepts are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice. The First Step

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

Insurance and Math

Back to the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.

Enter Companies

The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the

American colonies in Charleston, SC.

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. This was followed by the formation of Fire Insurance Corporations, first in New York City (1787) and then in Philadelphia (1794).

However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups.

The Growing Years The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization.

In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

There were more offshoots of the process of industrialization. In 1897, the British

government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, which first made its appearance in the 1880s gained importance and acceptance.

In the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance.

Even today, such fraternal orders continue to provide insurance coverage to members as do most labour organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.

IN INDIA
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children.

Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s.

It was during the swadeshi movement in the early 20th century that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies'funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. As a result, the government decided nationalize the life assurance business in India. The Life Insurance Corporation of India was set up in 1956 to take over around 250

life

companies.

For years thereafter, insurance remained a monopoly of the public sector. It was only after seven years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001.

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 collect statistical information about both life and non-life insurance businesses.

to

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.

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.

EFFECT OF LIBERALISATION

The winds of liberalization have initiated vast changes in the functioning of the industry today. Increasing number of multi national partnerships with private insurers have paved the way for radical shift in insurance selling through a number of new distribution channels besides bringing about more awareness on the need for insurance and also stressing on the important role technology can play.

With major trade barriers, gone the Indian insurance industry is slowly opening itself from a protected environment to e business, incorporating newer technology in insurance.

The opening up of the sector is paving way for :

Faster decision making

Easier claim settlement

Bank assurance

Improved customer service

Utilizing the extensive network of banks for selling insurance will over a period of time bring about an increase in insurance density besides improving insurance penetration in rural areas wherein a large unexploited potential exists.

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector.

The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms

The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to

provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

The important functions of IRDA are as follows: To exercise all powers & functions of controller of Insurance. Protection of the interest of the policyholders. To issue, renew, modify, withdraw or suspend certificate of registration. To specify requisite qualification & training for insurance intermediaries & agents

To promote & regulate professional organization connected with Insurance. To conduct Inspection/investigations etc. To prescribe method of Insurance Accounting. To regulate investment of funds & margins of solvency. To adjudication upon disputes. To conduct inspection & audit of insurers, intermediaries & other organizations concerned with Insurance.

Current Status
The IRDA bill had been introduced in the Lok Sabha during the Vajpayee governments last tenure with the expected mixed reactions. The Banking Regulation Act is to be modified to allow banks to become active players in the insurance sector. This comes as a major move The takeout of the amendment made to Section 6 (0) of the Banking Regulation Act, 1949 is this: the current act does not permit banks to handle insurance products. The

proposed change will permit banks to either distribute or to market insurance products. In addition to this, banks will also be allowed entry to the insurance sector through the joint venture route and bank assurance. It is understood that only strong banks with three-year track records will be allowed to enter the business - entry is a strict no-no to the weaker banks. The Insurance Regulatory and Development Authority (IRDA) Bill provides for three levels of players - an insurance company, insurance broker and an agent. Banks will work as agents and brokers in this proposed structure. This is an attempt to make the insurance sector more dynamic - this is likely to happen as banks will use their formidable branch network to market and distribute the insurance products. The Indian insurance industry which until now was a controlled sector, with only two players for the last four and half decades, has suddenly turned itself into a battleground. Though the sector remained in the strong clutches of the government enterprises, the growth has been slow. The industry is characterized by a number of players, both domestic and international, competing for the huge untapped market. The Indian insurance sector is witnessing a slow and steady change. Though the sector is yet to come out of the Government control completely, the new entrants are hopeful of competing head-on with the state-owned monopolies and create a niche for themselves.

COMPANY PROFILE

AVIVA LIFE INSURANCE

THE COMPANY
Aviva Life Insurance is a joint venture between Dabur and Aviva. Aviva Plc is UK's largest insurance group. Today, with 25 million customers in over 50 countries and assets under management in excess of US $300 billion AVIVA life insurance is the oldest company in the world and is a pioneer in its own field. It is the 3 rd largest Life insurance company in the global. It has its root in U.K where it is the largest insurer. Most lives in U.K are covered by AVIVA. The asset of AVIVA is over $300 billion. It has got 25 million customers worldwide and reaping the benefit of the product. Around 64,000 people are working for AVIVA worldwide. It has 40 major partnerships with leading banks across the globe. In India it has tied up with well know and admired company DABUR. The joint venture is form to cater the growing need of life insurance.

Founded in 1884, Dabur is one of India's oldest and largest group of companies with annual sales of Rs. 1,200 crores. It is the country's leading producer of traditional healthcare products.

Together they have been looking after generations of customers, over hundreds of years, and are committed to ensuring that we enjoy the very best financial health. Aviva Life Insurance aims for superior long-term investment performance and has the financial and management strength to deliver. Along with millions of customers worldwide we can feel certain of our choice, whether we invest for the future or provide against the unexpected.

WHO ARE THEY

Aviva Plc is the largest UK based life and general insurance group. A top priority at Aviva Plc has been the establishment of truly international businesses built on strong local partnerships and joint ventures. The Group's success in combining this strategy with a well-balanced portfolio of life and general business can be seen in a modern, unified operation across the globe. Aviva Plc is one of the major institutional investors in the UK, holding 3% of British industry quoted on the London Stock Exchange and 7% of the UK gilt market. It is a top-five European life insurer based on premium income, with leading positions in the UK, the Netherlands, Ireland, Poland, Spain, Singapore and Turkey. The Group is

among the top 10 asset managers in Europe and the second-largest UK-based fund manager by reference to funds under management, which exceed US $300 billion. Aviva Plc's service standards, responsiveness and portfolio of products are customized to suit the individual needs and requirements of its customers across the world. The Group's 64,000 employees serve more than 25 million customers worldwide.

Promoters

Dabur Founded in 1884, Dabur is one of India's oldest and largest group of companies with a consolidated annual turnover in excess of Rs 2,396 crores. A professionally managed company, it is the country's leading producer of traditional healthcare products. Corporate website: http://www.dabur.com

Aviva plc
Aviva is the UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 50 million customer base worldwide. It has more than 381 billion of assets under management. Corporate website: http://www.aviva.com

MANAGEMENT TEAM

TR Ramachandran - Chief Executive Officer & Managing Director TR Ramachandran is the Chief Executive Officer and Managing Director at Aviva India, since November 1, 2008. He is responsible for enhancing Indian operations through strengthening Bancassurance and alternate sales channels, improving operating performance, enhancing the productivity of the direct sales force and aligning the goals of the company with customer and employee satisfaction. Ram also helps in building Avivas employer brand and the Spirit of Aviva. Prior to this, he was working with Citibank, where he developed strategic plans for business growth and business start-ups. He was also responsible for developing infrastructure, market expansion, product development and product launches. His 19 years of financial services experience is spread across retail banking, consumer finance and credit cards services. Ram has led large teams of diverse employees and has a proven track record of building franchises, delivering business results and general management.

Abhay Johorey - Chief Operating Officer Abhay Johorey is the Chief Operating Officer at Aviva India. He joined the company in October 2005. In his current capacity, he plans and drives high-impact, strategic

initiatives involving large scale organisational change, including facilitating our leadership charter projects. Abhay also leads and manages complex stakeholder relationships and multi-disciplinary cross-functional teams to enable this. He plays the role of a vital link between the supply-side delivery functions and customer-facing demand management of the firm. Abhay started his career with Citibank, India in 1990. Over the past 18 years, he has gained vast experience across the retail and wholesale segments of the financial services domain.

Rajeev Arora Director, Finance & Actuarial Rajeev Arora has been the Director, Finance and Actuarial at Aviva India since September 1, 2007. He joined the company in 2003 as an Associate Director, Business Risk and Internal Audit. Currently, Rajeev provides strategic direction in creating synergies between the Finance and Actuarial segments and also manages the financial performance of Aviva India. His role also includes building strong capabilities in financial planning, accounting, valuations, reinsurance accounting, financial reporting, profit accounting and all IRDA-related compliances. Prior to joining Aviva, Rajeev has worked with PriceWaterhouse Coopers, Ernst and Young, and Deloitte & Touch.

Shoumitro Roye Sales Director

Shoumitro Roye has been the Sales Director at Aviva India since July 2007. His objective has been to create synergies within the sales functions and bring in necessary focus and drive business. Shoumitro manages both the Direct Sales Force and the Bancassurance divisions of Aviva India. He has played a key role in the acquisition of Eagle Insurance, Sri Lanka. Prior to joining Aviva, Shoumitro worked with BNP Paribas and American Express Bank Limited. He has more than 19 years of proven sales management experience at various levels. Anil Sahgal Director, Strategy & Chief Investment Officer Anil Sahgal has been the Director - Strategy and Chief Investment Officer at Aviva India since April 2007. He joined the company in 2001. At present, Anil manages a portfolio of strategic projects. At Aviva India, he has led the transition of the fund management team into a customer and sales focused team, while delivering strong performance results. Anil has also held various key positions in operations and strategy. Prior to this, he has worked with Dundee Investment Management, amongst others. Monica Agrawal Director, Corporate Initiatives Monica Agrawal, has been the Director, Corporate Initiatives, since February 2008. She is responsible for implementing a wide range of high-impact strategic and business initiatives. Monicas role is to bridge between strategy and implementation and her responsibility is to focus on executing projects that will facilitate the growth

and scope of the business. She is also a part of the team responsible for implementing vision, innovations and delivery of the business plan. Prior to joining Aviva, Monica has worked with MasterCard Worldwide Group, HSBC Ltd and Bennett, Coleman & Company Ltd amongst others. Chandan Khasnobis Appointed Actuary Chandan Khasnobis is the Appointed Actuary at Aviva India. He joined the company in October 2003. At present, he manages product design and development, valuation, investment decisions and duties within an administrative and regulatory capacity, to ensure that the company runs on sound financial lines and meets its business objectives. Prior to joining Aviva, Chandan has worked with Canada Life Limited in UK, Zimbabwe Actuarial Consultants, KenIndia Assurance Company Limited and the Life Insurance Corporation of India. Mohammad Shahber Associate Director, Human Resources Mohammad Shahber has been the Associate Director, Human Resources (HR) at Aviva India since April 2007. He joined the company in July 2006. Shahber is responsible for leading the Corporate and Regional HR team, supporting the development and implementation of robust processes facilitating HR operations and ensuring compliance with relevant statutory rules and regulations. He is also responsible for talent acquisition and organisational development.

Prior to joining Aviva India, Shahber has worked with Bharti Infotel Ltd (Airtel) and Hughes Escorts Communications Ltd., amongst others. Ronald Cheyne Director, Distribution Ronald Cheyne has been the Director, Distribution at Aviva India since September 2007. He is responsible for developing Avivas direct sales force and enhancing its quality, effectiveness and management. Ronald has been instrumental in establishing ASTRA and implementing a post selection programme for branch and agent profitability. He has also played an important role in developing the capabilities of the senior sales management teams. Prior to this, Ronald has worked with Eagle, Windsor Life Assurance Co. Ltd., New York Life Worldwide Inc. and Canada Life, amongst others. He has a rich international industry experience of nearly 27 years.

AVIVA LIFESHIELD PLUS

Overview Aviva LifeShield plus provides comprehensive protection for your family at a nominal cost through:

Payment of Life Cover (Sum Assured) to your family in the event of your death, with a provision of double the Life Cover in the case of an accidental death.

Immediate payment of the Life Cover in the case of critical illness or permanent total disability, while life cover continues till the policy term

Most competitive rates

AVIVA LITTLE MASTER

Overview Aviva Little Master is a holistic child plan that enables you to secure your child's future in any eventuality and also covers your child's life through:

Attractive returns in addition to bonus units value on maturity, to help you enhance the desired corpus for your child

Payment of the Sum Assured to the child or appointee (if the child is a minor), in the unfortunate event of patent's death, disability or on contracting a critical illness. All future premiums are waived off and invested as a lump sum amount in the funds and the policy continues

Provision of a regular income for the minor child, in the event of parent's death

Life cover on the child

FREEDOM LIFE PLAN Overview Freedom Life Plan allows you to choose the proportion of savings and protection and change it, in line with your changing needs, with the option to pay premiums for as few as 3 years, through:

Option to reduce premium and increase / decrease Life Cover (Sum Assured) Range of cover from 5*AP to 1.25*PT*AP Select from three riders Accidental Death and Dismemberment Rider (AD&D) , Critical Illness and Permanent Total Disability Rider (CI&PTD) , Hospital Cash Benefit Rider (HCB)

Indexation to protect savings & protection against inflation Limited premium paying term(PPT) including 3 & 5 years, with an option to increase the PPT (if PPT>=10)

5 fund options (Growth, Balanced, Enhancer, Protector, Bond), AAA & STP 100% allocation from sixth year

Mentioned as one of the top 2 products with the lowest charges in Outlook magazine Pensionplus

Overview Pension Plus is a market leading pension plan that helps you accumulate and grow your investments, to fund your post-retirement years through:

Attractive returns (one of the best in the industry, enhanced by loyalty additions for all regular premium polices, with policy term of at least 20 years)

Option of Indexation and Additional Regular Premium to beat inflation as well as align the retirement corpus with the desired lifestyle post-retirement

AVIVA LIFESHIELD PLUS

Overview Aviva LifeShield plus provides comprehensive protection for your family at a nominal cost through:

Payment of Life Cover (Sum Assured) to your family in the event of your death, with a provision of double the Life Cover in the case of an accidental death.

Immediate payment of the Life Cover in the case of critical illness or permanent total disability, while life cover continues till the policy term

Most competitive rates

Aviva Health Plus

Overview Aviva Health Plus is a comprehensive health cum savings plan that covers you against death and ill health, while guaranteeing the return of a part of the premium on maturity through: Provision of a Life Cover (Sum Assured) on death and disability Protection against 18 critical illnesses A combined benefit of more than Rs 21 lakh, in case all health benefits are claimed

Extended death and disability cover for 5 years after the health benefits cease Guaranteed maturity benefit on the date of maturity, even if all health benefits are claimed.

LIFE LONG
Life Long is a flexible whole life plan designed to suit your individual requirements, no matter which life stage you are in and change as your needs change during your entire life. For younger families, maximum protection can be provided at moderate cost but as the need for protection in future reduces, the sum insured under the policy may be reduced, thus increasing the savings content.

LIFE SAVER
Life Saver is a flexible endowment plan designed to meet your specific long-term savings needs such as education and wedding costs, with the added reassurance of life cover to meet those costs should something untoward happen before the policy matures.

LIFE BOND
Life Bond is a single premium savings plan designed by Aviva to provide you the maximum benefit of investment return and the security of the investment to match your medium term savings needs.

CORPORATE LIFE
Corporate Life is a product designed primarily for the corporate sector to provide life cover to their employees. The product can also be targeted at other suitable groups. This is a group term insurance product, which provides cover against risk of death. The Corporate is the master policyholder. It is a yearly renewable product. Additional

covers against accidental death and permanent total disability are also available, if opted for by the master policyholder.

EASY LIFE PLUS

Easy Life Plus is designed to be a simple regular savings plan with the benefit of life protection. By choosing an appropriate premium level and term, you can match the maturity date of the policy to a specific savings need such as childrens education, wedding, etc. Easy Life Plus is specially designed for members of select groups such as Bank Customers, Employer-Employee, or any other similar recognized group.

CREDIT PLUS
Credit Plus is a product specially designed for Micro Finance Institutions who provide loans to individuals in the rural and social sectors and who would also like to provide some financial security to the families of these individuals (members).This is a yearly renewable group term insurance scheme which provides death cover on group basis.

PENSION PLUS
Pension Plus is a tax efficient personal pension plan that is designed to help you earn a regular income even after you stop working. Through this plan, you build a fund till you retire which provides you financial security on retirement.

SECURE LIFE

Secure Life is an ideal life insurance plan that helps you protect your familys future. Depending on your requirements, whether it be for your childs education or marriage, loan repayments, etc., Secure Life ensures that your familys needs are met should something unfortunate happen to you. What is more, the entire premium that you pay during the policy term is returned to you on survival, at maturity.

COMPANYS PROFILE

MAX NEW YORK LIFE INSURANCE COMPANY LTD. Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multibusiness corporations. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's

paid up capital is Rs. 587 crore, which is more than the norm laid down by Insurance Regulatory Development Authority (IRDA). Having set a best in class agency distribution model in place, the company is spearheading a major thrust into additional distribution channels to further grow its business. The company is using a five-pronged strategy to pursue alternative channels of distribution. These include the franchisee model, rural business, direct sales force involving group insurance and telemarketing opportunities, banc assurance and corporate alliances. Customers to Max New York Life offer a suite of flexible products. It now has 22 life insurance products and 8 riders that can be customized to over 400 combinations enabling choose the policy that best fits their need. Max New York Life is the first life insurance company in India to be awarded the IS0 9001:2000 certifications. Max New York Life was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", Max New York Life was ranked at the 20th position. This survey is the local version of the "Great Places to Work" survey carried out every year in 22 countries. We were among top five most respected private life insurance companies in India according to a 2004 Business World survey.

We have truly built an enviable sales force. With 201 agents becoming members of the MDRT in 2005, Max New York Life has moved up in the Top 50 MDRT global list.

ABOUT NEW YORK LIFE

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Lifes family of companies offer life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength', adhere to the highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and employees with compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance companies in the world with more than USD$215 billion assets under management and has received among the highest ratings for financial strength from the life insurance industry's principal rating agencies: A.M. Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). According to Moody's, "New York Life's rating reflects the company's good quality investment portfolio, ample liquidity, and sound capitalization, as well as the good growth potential of its international business.

As a leader in the insurance industry, New York Life continues to bring to its operations new management concepts, advanced technologies, new distribution and training systems and innovative insurance products.

ABOUT MAX INDIA LIMITED

Founded in 1985, Max India Limited is a Public Limited company listed in the NSE and BSE of India with over 37,000 shareholders.

Today, Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of: Healthcare (Max Healthcare) Life Insurance (Max New York Life Insurance) Clinical Research (Neeman Medical International)

Max also maintains interests in: Specialty Plastic Products for the packaging industry (Max Specialty Products) Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr. Analjit Singh and a leading private equity firm, Warburg Pincus that accounts for 28.7% of the total shareholding. The public and Institutional Investors hold the balance shareholding.

Till 1999, the companys main interests and partnerships were the following:

Business
Bulk Active Pharmaceuticals Electronic Component Distribution Electronic Component Distribution Mobile Telephony

Partners
DSM Gist Brocades Motorola, USA Avnet Inc., USA Hutchison Telecom Ltd. Hong Kong

V-SAT Communications

Comsat Investment Inc., USA & Lockheed Martin, USA

Plating Chemicals Information Technology

Atotech, Germany Mind Crossing, USA

In 2000, the Company reinvented and restructured itself to focus on the businesses of Life under the theme, LifeOur Focus. Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New York Life, a Fortune 100 company, is one of the leading private life insurers in India.

Max Healthcare, a subsidiary of Max India Limited is Indias first provider of comprehensive, standardized, seamless, and integrated world-class healthcare services. Neeman Medical International (NMI) is an International Clinical Research provider operating across three locations spanning North America, Asia and Latin America. Each location is backed by comprehensive infrastructure and highly skilled and experienced personnel.

Board of Directors- Max India Limited

Dr Bhai Mohan Singh Mr. Analjit Singh Dr S S Baijal Mr. N C Singhal Mr. N Rangachary Mr. Nitin Sibal Mr. Piyush Mankad Mr. Ashwani Windlass Mr. Bharat Sahgal Mr. B Anantharaman Lifetime Chairman Emeritus, Max India Chairman, Max India Former Chairman, ICI Ltd. Former Vice Chairman & MD, SCICI Former Chairman, IRDA Vice President, Warburg Pincus India Pvt. Ltd. Former Secy., Ministry of Finance, Govt. of India Former Managing Director, Hutchison Max Managing Director, Warburg Pincus India Pvt. Ltd. Jt. Managing Director, Max India

Vision of MNYL

To become the most admired life insurance Company in India. This we hope to achieve by:

o Understanding the needs of customer and offering them superior products and services. o Leveraging technology to service customers quickly, efficiently and conveniently. o Providing an enabling environment to foster growth and learning for our employees. o And above all, building transparency in all our dealings.

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

MISSION OF MNYL

Become one of the top quartile life insurance companies in India Be a national player Be the brand of first choice Be the employer of choice

Become principal of choice for agents.

VALUES OF MNYL
This vision to become India's most admired life insurance company will be realized through our unique set of values, which are as follows:

Knowledge
Knowledge leads to expertise; and our expertise is in helping people protect them. Perfectly combining global expertise with local knowledge, we are India's life insurance specialist. Max New York Life believes that for knowledge to be of value it must be focused, current, tested and shared.

Caring
Max New York Life is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion.

Honesty
Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the Max New York Life experience. The company ensures that everyone who represents the brand carries a promise: we care in word as well as deed.

Excellence
Excellence at Max New York Life implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business.

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

The Objective of the study was to get an understanding of the life insurance segment of the insurance industry. The Scope of the study involves Measuring the impact of the aviva life insurance company in the Indian market and on Indian consumers. Figure out the prospects of the aviva and max new life insurance in the Life insurance market. Familiarizing oneself with various products available and the additional features or the riders attached to them. Analyzing the schemes offered by the private sector players. Comparison of the aviva life insurance and max newyork life insurance in the insurance market.

RESEARCH METHODOLOGY
We have conducted our research taking into consideration only 5 private players existing in the market namely AVIVA LIFE INSURANCE and MAX NEW YORK LIFE INSURANCE. On the basis of their performance we have drawn conclusions for the whole sector. The information for the project of finance on life insurance industry has been collected from both primary as well as secondary sources. In case of primary sources the information was retrieved directly from the concerned people and the authorities. We have conducted our research mainly with the help of the invaluable inputs provided by the consumers of products of the private players in the form of a questionnaire drafted by us. The questionnaire method was used as it is more versatile than any other method and further a questionnaire is pre planned and thus less time is wasted since a planned set of questions are available. We have taken a sample size of 200 people. Our analysis is completely based on the responses given to us by the respondents and the result for the same has been presented in the form of pie charts and graphs. While there was some information, which could not be

obtained through questionnaires, for that purpose we resort to personal interviews. A total of six In depth interviews were also taken of the agents and managers of these private players. Since secondary data are information published by others and the companies they were easily available and not much effort was required in obtaining the information.

SOURCES OF DATA PRIMARY DATA

Questionnaires. In depth interviews with the agents and managers of private life insurance companies.

SECONDARY SOURCES
Newspapers. Magazines. Internet sites.

DATA COLLECTION

PRIMARY DATA
The primary data are those data which are collected afresh and for the first time and happen to be original in character. The primary data to be collected for the study are-

By Structured Questionnaire (Customer)

SECONDARY DATA
Secondary data are those data which have already been collected by someone else and which already had been passed through the statically process. The secondary data to be collected for the study arePublication of the company Periodical of the company By Internet Websites

RESEARCH INSTRUMENT

STRUCTURED QUESTIONNAIRE:
A Questionnaire consist of a number of questions printed or typed n a definite order on a form or set of forms. It is the set of questions presented to the retailers for their

answers. When the questions have only two alternatives or of multiple choice, then it is known as closed-end questionnaire, which is hence used the given study.

DATA ANALYSIS

ANALYSIS OF THE MARKET FINDINGS

It may be noted that the pie charts and bar diagrams have been drawn on the basis of the total number of questionnaires filled i.e. 200 and on the basis of the number of responses we have received for each question. The interpretation for the same has been done in percentage form.

1. Thinking of insurance, what comes to your mind?

INSURANCE MEANS
LIC SECURITY

20%

TAX SA VING

50% 30%

Majority of the population(50%), when they think of insurance it means LIC where as 20% & 30% of the population think it as tax saving and security respectively. Thus it can be seen that LIC is well based in the minds of the people.

2. Out of the following, you have an insurance policy of (put tick mark)
AVIVA [ ] NEW YORK MAXLIFE [ ]

Others, specify

40%

60 %

Aviva

Max New york

Major part of the population has their insurance policy in Aviva. And max new York have less business than aviva.

3. What type of policy do you have?

TYPES OF POLICIES PEOPLE HAVE

30
No. OF PEOPLE

28 20 20
ENDOWMENT

25 20 15 10 5 0

12

14

WHOLE LIFE MONEY BACK SINGLE PREMIUM TERM POLICY

POLICIES

Most of the people have term policies; endowment and whole life are on the same platform. Money back and single premium are less desirable by the people.

4. What do you look for, while opting for a Life Insurance Company?
PEOPLE LOOK FOR WHILE OPTING FOR LIFE INSURANCE COMPANY

RETURN ON INVESTMENT

34%

24%
GOODWILL

33% 9%
ADDITIONAL BENEFITS

SECURITY

When people opt for a Life Insurance Company, most of them look for security of their money, goodwill of the company and return on their investment. Not many of them look for additional benefits.

5. What do you look for, while opting for a Life Insurance policy?

PEOPLE LOOK FOR WHILE OPTING FOR LIFE INSURANCE POLICY

31% 23%

TAX SAVING

INCOME SECURITY

24% 22%

OLD AGE BENEFITS

SAVINGS

In India most of people take insurance policy because it gives them tax benefits. It plays a major role. Others such as income security, savings and old age benefits go behind it.

6. Do you think insurance is superior to other forms of savings?

INSURANCE SUPERIOR TO OTHER FORM OF SAVINGS

16%

84%

YES NO

Majority of the population believe that insurance is superior to other form of savings. It provides tax benefits which is not provided in other forms of savings and to the more it provides security for the future.

7. Is price an important consideration while opting for an insurance policy?

PRICE IS AN IMPORTANT CONSIDERATION

26%
YES

74%

NO

Most of the people when they opt for an insurance policy, price is an important consideration for them. However, about 26% of the population do not consider price as an important consideration while opting for an insurance policy.

CONCLUSION & RECOMMENDATIONS

CONCLUSION
Life insurance is also now being regarded as a versatile financial planning tool. Research indicates that Indians have four basic financial needs during their life - asset accumulation (such as buying a house or car), protecting their family, securing their children's education, and provision for their retirement. So, while there are three basic types of insurance, these have been structured with increased flexibility to meet focused requirements. Furthermore, these can be enhanced with riders to protect one against disability and provide monetary compensation at times of critical illnesses or surgeries. India being a country having a huge population of around one billion people with only 22% of the insurable population in India possessing life insurance the country has a vast potential which has been left untapped till now. The competition in the insurance sector is becoming so intense that it has become difficult to identify the crucial success factors though the distribution strength will always be the key to success. Another area of vast improvement is in service attitude and delivery. Undoubtedly, the biggest beneficiary of the competition amongst life insurers has been the consumer. A wide range of products, customer-focused service and professional advice has become the mainstay of the industry, and the Indian consumer has become the focus of each of the companys strategy.

Consumers today also seek products that offering flexible options, preferring products with benefits unbundled and customizable to suit their diverse needs. The trend in developed economies where people not only live longer and retire earlier is now emerging in India. With the breakdown of traditional forms of social security like the joint family system, consumers are now concerning themselves with the need to provide for a comfortable retirement. This trend has been further driven by the long-term decline in interest rates, which makes it all the more necessary to start saving early to ensure long term wealth creation. Today's consumers are increasingly interested in products to help build wealth and provide for retirement income. This all adds up to major change in demand for insurance products. Firms will need to constantly innovate in terms of product development to meet ever-changing consumer needs. Competition will result in the market to grow beyond current rates and offer additional consumer choice through the introduction of new products, services and price options. With the heightened awareness and consumer education comes a willingness to view life insurance as an integral part of the financial portfolio. No longer is life insurance a poorly understood product that is pushed onto people. Nor is it a product that is only to be bought hurriedly at the time of filing taxes. It's now catching on as an important element that is purchased to fulfill specific rational and emotional needs and has clear benefits and advisors are being trained to sell insurance as a solution to meet these needs.

To conclude with we would just like to say that in the Indian life insurance market is aviva life insurance have a good market position quite a big one and more importantly a huge part of it has been left untapped till now, therefore there is enough room for all the private players to establish themselves provided they give the Indian consumer the best value for their money in the long run because it will take time for the people to get out of the nutshell of being getting insured only with LIC as till few years ago it used to have an absolute monopoly in this market.

LIMITATIONS
As per my experience at Aviva insurance what I got to know is: Out of l00% tele-calling only l0% agrees and 2% gets converted that too

by approaching the customers again and again and time allotted to us was limited as it even takes three to four months or may be more to get one call converted. We have me limited geographical coverage area i.e. confined to only meerut because clients are also there m other cities.

RECOMMENDATIONS
Need to create and effectively deploy differentiated strategies in sales, distribution and marketing.

Right customer identification and thus segmentation which need to be appropriate.

Design and manage sales force, which yields high performance. Training of the employees can be done so that they produce best results.

Need to create better, differentiated and detailed brochures.

Increase its agent sales force quantity as well as quality.

Target the rural population which is one of the biggest untapped area.

Less harassing documentation w.r.t insurability and claims.

General some innovative and alternative channels of distribution, using the sources that can straight play with the emotions of the person and influence so high that it forces the being to go for insurance and that too willingly

ANNEXURE

QUESTIONNAIRE
Dear Sir/Madam, I am conducting a survey to measure the prospects of private insurers in life insurance business. I like to include your opinion in this survey. I request you to answers the following questions.

1. Thinking of insurance, what comes to your mind?

2. Out of the following, you have an insurance policy of (put tick mark) AVIVA [ ] NEW YORK MAXLIFE [ ]

Others, specify

3. What type of policy do you have? (Put tick mark) Endowment [ ] Whole Life [ ] Money Back [ ] Single Premium [ ] Term Policy [ ]

Other, specify..

4. What do you look for, while opting for a Life Insurance Company? (Put tick mark) Return on Investment [ ] Additional Benefits [ ] Goodwill [ ] Security [ ]

Others, specify

5. What do you look for, while opting for a Life Insurance policy? Tax Saving [ ] Security [ ] Old Age Benefits [ ] Other, specify. Savings [ ] Income

6. Do you think insurance is superior to other forms of savings? Yes [ ] No[ ]

7. Is price an important consideration while opting for an insurance policy? Yes [ ] No[ ]

8. At any point of policy period, have you ever claimed your policy? Yes [ ] No [ ]

9. Have you ever insured with aviva? Yes [ ] No[ ]

10. Any particular reason for opting out of the aviva?

Yes[ ]

No[ ]

If yes, why?

11. Which private Life Insurance Company advertisement is more informative? (put tick mark)

Parameters AVIVA New York MaxLife

Excellent

Very Good

Goo Average Poor d

12. Any suggestions to improve the services offered by various insurers?

BIBLIOGRAPHY

Beri G.C., Marketing Research, Tata McGraw Hill Publishing Co. LTD., New Delhi, Third Edition (2002)

Saxana Rajan, Marketing Management, Tata McGraw Hill Publishing Co. LTD, New Delhi, Second Edition (2001)

Saxena R.S., Marketing Management, Himalaya Publication, New Delhi, Ninth Edition (2000)

Kotlar Philip, Marketing Management, Pren Tice-hall of India PVT. LTD., New Delhi, Ninth Edition (2002)

Bhandari, Research Methodology, Print 2004, Second edition

www.avivaindia.com www.google.com www.rediff.com www.maxnewyork.com