Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
REPORT
On
COMPANY GUIDE
Mr. Jignesh Madhwani
TABLE OF CONTENTS
Contents Page No.
Acknowledgements 5
List of Tables 6
List of Illustrations/Diagrams 7
Executive Summary 9
Chapter 1: introduction 10
➢ Objective 15
➢ Limitation 17
➢ Research Mythology 19
➢ Data Collection 22
Chapter 2: Life Insurance Industry 23
➢ Industry profile 24
➢ important milestones in the life insurance business 29
➢ Insurance sector reforms 31
➢ IRDA 32
Chapter 3:Contribution of Life Insurance Industry 36
➢ Contribution of Life Insurance in the Economy 36
➢ Flow of Insurance Industry in India 37
➢ Structure of life Insurance Industry 40
➢ Life Insurance industry 41
➢ Aggregation of Long Term Savings 42
➢ Spread of financial services in rural Areas 43
➢ Long term funds for infrastructure Development of Capital 44
Markets/Economic Growth
➢ Employment generation 45
➢ Special Features 46
➢ Growth Potential 47
➢ Phase of transition 47
Chapter 4:Company Profile 49
➢ Management 51
➢ Area of Business 56
➢ KMOM progress till date 65
➢ KMOM-the partnership and Lineage 66
➢ Products 69
➢ Hierarchy of KMOM of Surat branch 71
Chapter 5: Survey 72
➢ Data interpretation , editing and coding 73
➢ Graph analysis 73
Chapter 6: Finding and Suggestion 83
Chapter 7: Conclusion 84
Chapter 8: References 85
Chapter 9: Annexure 86
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Acknowledgement
Chirag Patel
List of Tables
List of Illustrations/Diagrams
Chapter 1:
➢ Introduction
Executive Summary
The service industry is one of the fastest growing sectors in India today.
The upcoming sectors which are really showing the graph towards
upwards are - Telecom, Banking, and Insurance. These sectors really
have a lot of responsibility towards the economy.
Channel partners are those who are going to be into direct selling of
company’s products i.e. the insurance policies. They are the link
between the customers and the management or company. These channel
partners are people with different profiles. They are selected on some
grounds like their network of people, their problem handling ability,
convincing power and lot many things.
The main idea behind company’s Questionnaire Survey is to find out and
analyze the proper profile that can be recruited by company as a channel
partner. Company has been focusing on some of the profile that can be
very beneficial for the company. For example Chartered Accountants,
Tax Consultants, Postal agents, Bank’s Daily Collection Agents etc. the
main idea behind targeting the above profile is strong client network
which is really very important for an insurance company.
1. Objective:
The main of the present study of is accomplish the following
objective.
➢ Proper understanding and analysis of life insurance industry.
➢ To know about brand awareness of Kotak Life Insurance and
customer’s preference about Kotak Life Insurance.
➢ Conduct market survey on a sample selected from the entire
population and derived opinion on that research.
➢ According the market survey come know about how much
potential of insurance market in our city.
➢ And base on analysis of the result thus obtained make a
report on that research.
➢ Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the company
and bring the business for the company which ever is going
at the particular point of time.
➢ Along with it I will be gaining the thorough knowledge of
insurance sector. This will give me in more confidence in
marketing products given to me.
➢ As the Kotak Life Insurance well reputed company in India
it’s great chance for me to observed different products launch
by other competitor companies like ICICI prudential, Bajaj
alliance ,LIC, Max New York life etc. In all, it is to
understand the overall working of the Life insurance sector.
➢ The objective behind the project is as follows:
➢ To find the right candidate.
➢ To about their family background, occupation, social relation,
Qualification, Age.
➢ Finalize candidates for the IRDA training
5: Limitation:
Some of the difficulties and limitations faced by me during
my training are as follows:
➢ Lack of awareness among the people – This is the biggest
limitation found in this sector. Most of the people are not aware
about the importance and the necessity of the insurance in their
life. They are not aware how useful life insurance can be for their
family members if something happens to them.
➢ Perception of the people towards Insurance sector – People still
consider insurance just as a Tax saving device. So today also there is
always a rush to buy an Insurance Policy only at the end of the
financial year like January, February and March making the other 9
months dry for this business.
➢ Insurance does not give good returns – Still today people think
that Insurance does not give good returns. They are not aware of the
modern Unit Linked Insurance Plans which are offered by most of the
Private sector players. They are still under the perception that if they
take Insurance they will get only 5-6% returns which is not true
nowadays. Nowadays most of the modern Unit Linked Insurance Plans
gives returns which are many times more than that of bank Fixed
deposits, National saving certificate, Post office deposits and Public
provident fund.
➢ Lack of awareness about the earning opportunity in the
Insurance sector – People still today are not aware about the earning
opportunity that the Insurance sector gives. After the privatization of
the insurance sector many private giants have entered the insurance
sector. These private companies in order to beat the competition and to
increase their Insurance Advisors to increase their reach to the
customers are giving very high commission rates but people are not
aware of that.
➢ Increased competition – Today the competition in the Insurance
sector has became very stiff. Currently there are 14 Life Insurance
companies working in India including the LIC (life insurance
Corporation of India). Today each and every company is trying to
increase their Insurance Advisors so that they can increase their reach
in the market. This situation has created a scenario in which to recruit
Life insurance Advisors and to sell life Insurance Policy has became
very very difficult.
RESEARCH METODOLOGY
Research always starts with a question or a problem. Its purpose is to
question through the application of the scientific method. It is a
systematic and intensive study directed towards a more complete
knowledge of the subject studied. Marketing research is the function
which links the consumer, customer and public to the marketer through
information- information used to identify and define marketing
opportunities and problems generate, refine, and evaluate marketing
actions, monitor marketing actions, monitor marketing performance and
improve understanding of market as a process.
There are two types of data collection method use in my project report.
– Primary data
– Secondary data.
DATA COLLECTION
After the research methodology, research problem in marketing has
been identified and selected; the next step is together the requisite data.
There are two types of data collection method – primary data and
secondary data.
Chapter: 3
➢ Industry profile:
➢ important milestones in the life insurance
business
➢ Insurance sector reforms
The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force as
Rs.22.44 crore, it rose to 176 companies with total business-in-force as
Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing
not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938
was introduced in the Legislative Assembly. However, it was much later
on the 19th of January 1956 that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian companies and
75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive
bill. The Parliament of India passed the Life Insurance Corporation Act
on the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of spreading life
insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them
adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956. Since life insurance
contracts are long-term contracts and during the currency of the policy it
requires a variety of services need was felt in the later years to expand
the operations and place a branch office at each district headquarter. Re-
organization of LIC took place and large numbers of new branch offices
were opened. As a result of re-organization servicing functions were
transferred to the branches, and branches were made accounting units. It
worked wonders with the performance of the corporation. It may be seen
that from about 200.00 Crores of New Business in 1957 the corporation
crossed 1000.00 Crores only in the year 1969-70, and it took another 10
years for LIC to cross 2000.00 crore mark of new business. But with re-
organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the corporate office. LIC’s Wide
Area Network covers 100 divisional offices and connects all the
branches through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium collection facility
in selected cities. LIC’s ECS and ATM premium payment facility is an
addition to customer convenience. Apart from on-line Kiosks and IVRS,
Info Centers have been commissioned at Mumbai, Ahmedabad,
Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders,
LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring
insurance into existence in this country inspire us at LIC to take this
message of protection to light the lamps of security in as many homes as
possible and to help the people in providing security to their families.
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 General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British. Some of
the important milestones in the general insurance business in India are:
1907 The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957 General Insurance Council, a wing of the Insurance Association
of India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968 The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four
companies’ viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the
United India Insurance Company Ltd. GIC incorporated as a company.
The Insurance Act, 1938 had provided for setting up of the Controller of
Insurance to act as a strong and powerful supervisory and regulatory
authority for insurance. Post nationalization, the role of Controller of
Insurance diminished considerably in significance since the Government
owned the insurance companies.
But the scenario changed with the private and foreign companies
foraying in to the insurance sector. This necessitated the need for a
strong, independent and autonomous Insurance Regulatory Authority
was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim
Insurance Regulatory Authority pending the enactment of a
comprehensive legislation.
The act extends to the whole of India and will come into force on such
date as the Central Government may, by notification in the Official
Gazette specify. Different dates may be appointed for different
provisions of this Act.
The Act has defined certain terms; some of the most important ones are
as follows
Words and expressions used and not defined in this Act but defined in
the Insurance Act, 1938 or the Life Insurance Corporation Act, 1956 or
the General Insurance Business (Nationalization) Act, 1972 shall have
the meanings respectively assigned to them in those Acts
Chapter: 4
STRUCTURE OF INSURANCE
INDUSTRY: Snap Shot
Historical Perspective
(i) Prior to 1956 242 companies operating
(ii) 1956 - 2001 Nationalization – LIC monopoly
player – Government control
(iii) 2001 -- Opened up sector
Industry
Snap Shot - Contd.
• (a) LIC – Fully owned by Government
(b) Postal Life Insurance
• (ii) Private players -
1. Bajaj Allianz Life Insurance Co. Ltd.
2. Birla Sun Life Insurance Co. Ltd. (BSLI)
3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD
LIFE)
4. ICICI Prudential Life Insurance Co. Ltd. (ICICI
PRU)
5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)
6. Max New York Life Insurance Co. Ltd. (MNYL)
7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)
8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
9. SBI Life Insurance Co. Ltd. (SBI LIFE)
10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)
11. Reliance Life Insurance
12. Aviva Life Insurance Co. Pvt. Ltd. (AVIVA)
13. Sahara India Life Insurance Co. Ltd. (SAHARA
LIFE)
14. Shriram Sunlam
• (iii) Other likely players – PNB Life Insurance, Axa
Bharti Enterprises
Potential of the Insurance sector:
Market share:
Market Share
Company Indian Foreign Market
Promoter/ Insurance share
based on
Partner premium
Aviva life Dabur Aviva, UK 1.12
Bajaj Bajaj Auto Allianz, 6.12
Allianz Germany
Birla sun Aditya Sun Life, 1.84
life Birla Canada
group
HDFC HDFC Standard 2.96
Standard Life, UK
ICICI ICICI Prudential, 7.11
Prudential Bank UK
ING Vysya ING 0.63
Vysya Bank Insurance,
Netherlands
Kotak Kotak Old Mutual 0.71
Mahindra, Mahindra South
Old Bank Africa
Mutual
Max New Max India New York 1.32
York Life, US
MetLife Jammu & MetLife, 0.40
Kashmir US
Bank
Sahara Sahara None 0.80
Life India
Insurance
SBI Life SBI Cardiff, 1.52
France
Tata AIG Tata AIG, US 1.78
Group
CONTRIBUTION TO INDIAN
ECONOMY
(i) Life Insurance is the only sector which garners
long term savings
(ii) Spread of financial services in rural areas and
amongst socially less privileged
(iii) Long term funds for infrastructure
(iv) Strong positive correlation between
development of capital markets and insurance/
pension sector
(v) Employment generation
Aggregation of Long Term Savings
(i) Total Assets of Life Insurance Companies
PHASE OF TRANSITION
• Life Insurance industry is under the phase of infancy after 50 years of
monopoly
• Competition from within and other sectors of financial market
• Needs environmental support till it reaches a comfort zone
Chapter: 5
➢ Company profile
➢ Management
➢ Areas of Business
➢ KMOM- Progress till date
➢ KMOM- the Partnership and
Lineage
➢ Products
➢ Hierarchy of KMOM Life
Insurance Ltd. (Surat Branch)
COMPANY PROFILE
Mission:
“At KotakLife Insurance, we aim to help customers take important
financial decisions at every stage in life by offering them a wide range
Of innovative life insurance products, to make them financially
independent.”
MANAGEMENT
Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance.
Mr. Vaidya holds a B.Tech (Mechanical) degree from IIT Mumbai and
has also completed his Post Graduate Diploma in Business Management
from IIM-Ahmedabad.
He started his career as a Management Consultant at A.F. Fergusson.
After completing 5 years there, he moved onto various positions within
the Kotak Mahindra group starting from Car Financing (Kotak
Mahindra Finance Ltd) to Stock broking & Distribution of investment
products/ Mutual funds (Kotak Securities). Mr. Vaidya set up the private
banking business and private equity fund for the Kotak group.
Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance.
He joined on secondment from Old Mutual South Africa for a period of
two years. Eksteen is a post- graduate in Law and practiced Law as well
as lectured at South African Universities before joining the Life
Insurance Industry. He has over 23 years' experience in the Life
Insurance Industry. He worked for Sanlam Life in South Africa for 3
years before joining Old Mutual more than 20 years ago. Eksteen started
with Old Mutual as a Legal Adviser and after that held various positions.
He sold life assurance for some time, served as Head of Old Mutual's
Training Division, Head of Old Mutual's Trust Company, Project Leader
for implementing a new Sales Process with McKinsey's, Head of
Conventions and Motivation, Head of Agency Marketing and finally
Head of Banc assurance with Old Mutual Bank. In addition he played a
role in the wider Industry. He was Vice-President of the South African
Insurance Institute for two years as well as Vice-President of the
Financial Planning Institute for three years. In this time Eksteen
pioneered the introduction of the CFP qualification into South Africa.
He has traveled widely during his career, working in the USA and
England and also implemented Training Programme in Namibia,
Zimbabwe, Malawi and Kenai. His current role is to substantially
upgrade the level of Training and assist in the implementation of
Performance Management Systems in Kotak Life Insurance.
AREAS OF BUSINESS
Kotak Mahindra one of India's leading financial institutions was born in
1985 as Kotak Capital Management Finance Limited. This company was
promoted by Mr. Uday Kotak, Mr. Sidney A. A. Pinto and Kotak &
Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra
took a stake in 1986, and that's when the company changed its name to
Kotak Mahindra Finance Limited.
It's been a steady and confident journey to growth and success.
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