Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
With Specialization
In
MARKETING
Submitted by
SUNIL CHOUDARY.K
Reg No-
1
Declaration
Place
2
ACKNOWLEDGEMENT
As I look back after the completion of my project I feel it would not have been possible
without the guidance. I am very grateful to all the people who have lent their precious
time and advice for rendering this project successful. I take this opportunity to thank
them all.
I heartly thankful to all the executives of the company for their valuable guidance and for
sharing their experience in completing this project successfully,
I am thankful to our Chairman Dr. KALEEL AHMED for the strong inspiration during
the project period.
I would like thank our institute guide ROHITH C KALASKAR for having given me
this opportunity and for his valuable ever-patient guidance ever endeavoring support,
timely help and constant encouragement and also I am thankful to all faculty members of
my institution for their valuable guidance in completing this project successfully.
I also express thanks to my parents, my family members, and all my friends for their
valuable support in completion of this project successfully.
Last but not least I am thankful to all those people who helped us directly and indirectly.
Place:
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CONTENTS
Chapter 6 Data analysis and interpretations using various charts and 63-77
graphs
Chapter 7 Findings 78-79
Chapter 8 Limitations if any 80
Chapter 9 Expected contribution from the study 81-82
Appendix and Bibliography 83-89
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per
cent annually and presently is of the order of Rs 450 billion. Together with banking
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services, it adds about 7 per cent to the countrys GDP. Gross premium collection is
nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of
GDP.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subject to weak social security and pension
systems with hardly any old age income security. This itself is an indicator that growth
potential for the insurance sector is immense.
Insurance is a federal subject in India. There are two legislations that govern the
sector- The Insurance Act- 1938 and the IRDA Act- 1999. 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.
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Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party
happening of a certain event.
With the help of Insurance, large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate
few, due to accidental events, are made good
o Nearly 80% of the Indian population is without Life, Health and Non-life
insurance
o Life insurance penetration is low at 4.1% in 2006-07
o Non-life penetration is even lower at 0.6% in 2006-07
o The per capita spend on life and non-life insurance is US$33.2 and US$5.2
(2006-07), respectively compared to a world average of US$330 and
US$224
o Strong economic growth with increase in affluence and rising risk
awareness leading to rapid growth in the Insurance sector
o Innovative products such as Unit Linked Insurance Policies are likely to
drive future industry growth
o Investment opportunities exist in both Life and Non-life segments
o Total estimated investment opportunity of US$14-15 billion
STRUCTURE
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Indian Insurance market was opened to private & foreign investment in 1999-2000
POLICY
FDI up to 26% is permitted under the automatic route subject to obtaining a license
from the Insurance Regulatory and Development Authority (IRDA)
Insurance Regulatory Development Authority (IRDA) is the regulator for the Insurance
industry
In a landmark move the government detariffed the General Insurance business on 1st
January 2007
Life insurance is a guarantee that your family will receive financial support, even
in your absence. Put simply, life insurance provides your family with a sum of money
should something happen to you. It thus permanently protects your family from financial
crises.
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In addition to serving as a protective cover, life insurance acts as a flexible
money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get
your children married and even retire comfortably.
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Collective bearing of risk - Insurance is a device to share the financial loss of few
among many others. Insurance is a mean by which few losses are shared among larger
number of people. All the insured contribute the premiums towards a fund and out of
which the persons exposed to a particular risk is paid.
Small capital to cover larger risks - Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
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THE OTHER FUNCTIONS OF INSURANCE INCLUDE THE FOLLOWING:
Risk Free trade - Insurance promotes exports insurance, which makes the foreign trade
risk free with the help of different types of policies under marine insurance cover.
Asset Protection
From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the underlying
benefit of asset appreciation, life insurance is unique in that it gives the customer the
reassurance of asset protection, along with a strong element of asset appreciation.
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The core benefit of life insurance is that the financial interests of ones family
remain protected from circumstances such as loss of income due to critical illness or
death of the policyholder. Simultaneously, insurance products also have a strong inbuilt
wealth creation proposition. The customer therefore benefits on two counts and life
insurance occupies a unique space in the landscape of investment options available to a
customer.
Clearly, as your life stage and therefore your financial goals change, the
instrument in which you invest should offer corresponding benefits pertinent to the new
life stage.
Life insurance is the only investment option that offers specific products tailor-made for
different life stages. It thus ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage, and hence ensures that the financial
goals of that life stage are met.
The table below gives a general guide to the plans that are appropriate for different life
stages.
Life Insurance
Life Stage Primary Need Product
Young &
Asset creation Wealth creation plans
Single
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Just married plans
Children's
Married education, Education insurance,
mortgage protection &
With kids Asset creation wealth creation plans
and protection
Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this important
principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in the
proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in
any document leading to the acceptance of the risk would render the insurance contract
null and void.
Protection:
Savings through life insurance guarantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payment of the entire amount
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assured (with bonuses wherever applicable) whereas in other savings schemes, only the
amount saved (with interest) is payable.
Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can
be made effortlessly because of the 'easy installment' facility built into the scheme.
(Premium payment for insurance is monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS provides a convenient
method of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and
conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally accepted as
security, even for a commercial loan.
Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth
tax. This is available for amounts paid by way of premium for life insurance subject to
income tax rates in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the assured in
effect pays a lower premium for insurance than otherwise.
A policy that has a suitable insurance plan or a combination of different plans can
be effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for cash
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over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from
service and used for any specific purpose, such as, purchase of a house or for other
investments. Also, loans are granted to policyholders for house building or for purchase
of flats (subject to certain conditions).
Policies can also be taken, subject to certain conditions, on the life of one's spouse
or children. While underwriting proposals, certain factors such as the policyholders state
of health, the proponent's income and other relevant factors are considered by the
Corporation.
At present, women who work and earn an income are treated at par with men. In
other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years
and if she does not have an income attracting Income Tax.
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inconvenience, LIC has been extending insurance cover without any medical
examination, subject to certain conditions.
In 'without' profit plan the contracted amount is paid without any addition. The
premium rate charged for a 'with' profit policy is therefore higher than for a 'without'
profit policy.
PRINCIPLES OF INSURANCE
Insurance is a specialized type of contract. Apart from the usual essentials of a valid
contract, insurance contracts are subject to some additional principles. These principles
provide the framework within which the product and all the contracts of insurance
operate.
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Principle of Insurable Interest: Interest of such a nature that the possessor
would be financially injured by the occurrence of the event insured against, `` LA
to be more valuable alive then dead
Principle of utmost good faith: The parties to the contract (insurer and insured)
are legally bound to reveal each other all information about the subject matter,
which would influence each others decision.
Principal of warranties: A warranty is an undertaking by assured that some
conditions shall be fulfilled, or a certain thing shall be or shall not be done. A
warranty may be Express or Implied
Principle of Cause Proximal: In order to make the Insurer liable for loss, such
loss must have been proximately caused by the Peril insured against. E.g. ADBR.
These 6 principles are applicable to all the products, both life and Non-Life. These
principles provide the framework within which the products and all the contracts of
Life Insurance operate.
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 190 years.
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.
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Some of the important milestones in the life insurance business in India are
1912 - The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928 - The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938 - Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956 - 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
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.
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1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
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.
Before insurance sector was opened to the private sector Life Insurance
Corporation (LIC) was the only insurance company in India. After the opening up of
Insurance sector in India there has been a glut of insurance companies in India. These
companies have come up with innovative and flexible insurance policies to cater to
varying needs of the individual. Opening up of the Insurance sector has also forced the
LIC to tighten up its belt and deliver better service. All in all it has been a bonanza for the
consumer.
The life insurance business in India started since 1818. Till 1956, the insurance
business was mixed and decentralized. In 1956, the life insurance business of all
companies was nationalized and a single monolithic organization, the Life
Insurance Corporation of India (LIC), was set up. The Insurance Regulatory and
Development Authority (IRDA) Bill was passed by Indian parliament in December
1999. The IRDA become a statutory body in April 2000 and has been framing
regulations and restrictions the private sector insurance companies.
The insurance sector was opened up to the private sector in August 2000.
Consequently, some Indian and foreign private companies have entered the insurance
business. There are about 16 life insurance companies operating in the private sector in
India.
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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.
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PROFILE OF THE COMPANY
Management:
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Michael J Wood is the appointed actuary of IDBI Federal Life
Insurance
IDBI Bank Ltd. continues to be, since its inception, Indias premier
industrial development bank. It came into being as on July 01, 1964 (under
the Companies Act, 1956) to support Indias industrial backbone. Today, it is
amongst Indias foremost commercial banks, with a wide range of
innovative products and services, serving retail and corporate customers in
all corners of the country from 977 branches and 1544 ATMs. The Bank
offers its customers an extensive range of diversified services including
project financing, term lending, working capital facilities, lease finance,
venture capital, loan syndication, corporate advisory services and legal and
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technical advisory services to its corporate clients as well as mortgages and
personal loans to its retail clients. As part of its development activities, IDBI
Bank has been instrumental in sponsoring the development of key
institutions involved in Indias financial sector National Stock Exchange of
India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock
Holding Corporation of India Ltd), CARE (Credit Analysis and Research
Ltd).
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Continental Europe and Asia and served through a combination of wholly
owned subsidiaries and partnerships with strong financial institutions and
key distributors around the world. Ageas operates successful partnerships in
Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India
and Thailand and has subsidiaries in France, Germany, Hong Kong and UK.
It is the market leader in Belgium for individual life and employee benefits,
as well as a leading non-life player, through AG Insurance, and in the UK, it
has a strong presence as the third largest player in private car insurance and
the over 50s market. It employs more than 13,000 people and has annual
inflows of more than EUR 17billion.
VISION:
MISSION:
VALUES
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Transparency
Value to customers
Financial strength
Delivery on Promise
Customer friendly
Profit to Shareholders
TRACK RECORD
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Childsurance
Lifesurance
Wealthsurance
Group Microsurance
Incomesurance
Healthsurance
Bondsurance
Homesurance
Termsurance
Loansurance
Retiresurance
IDBI Federal Life Insurance Co. Ltd. provides its services through three
means. They are: Bancassurance Channel, Agency Channel and Alliance
Channel. The Lucknow branch of IDBI Federal Life Insurance Co. Ltd.
deals with plans like childsurance, lifesurance, wealthsurance, termsurance
and incomesurance.
PRODUCT PROFILE
PRODUCTS IN DETAIL
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Childsurance:
IDBI federals childsurance is for the parents who are looking to make their
childs future shock-proof is its powerful insurance benefits. Childsurance
allows to you to protect your child plan with triple insurance benefits so that
your wealth-building plan remains unaffected by unforeseen events and your
child future remains secure.
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Helps to boost customers savings.
Customers can decide on how to manage their investments.
Helps to secure childs future goals
Tax benefits on contributions and benefits
Funds can be withdrawn in case of need, after five years
Healthsurance:
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Daily hospital cash benefit paid for each day (24 hours) spent in an
eligible hospital (from day 2 onwards): Rs. 500, Rs. 1,000, Rs. 1,500
or Rs. 2,000 depending on customers choice of benefit level
Higher daily hospital cash benefits of Rs 3,000 and Rs. 4,000
available, subject to suitable proof of income
Additional daily benefit equal to the daily hospital cash benefit, from
day 2 onwards for hospitalization in an Intensive Care Unit, (up to an
overall maximum daily benefit of Rs. 5,000)
Additional lump sum surgery benefit paid if customer undergo any of
the wide range of surgical procedures specified in this brochure: either
50 or 100 times customers chosen daily benefit, depending on the
severity of the surgery
Three times customers daily hospital cash benefit paid as a lump sum
convalescence benefit (maximum once per year) if customers
hospital stay is at least 168 continuous hours (at least 7 consecutive
days)
Generous total benefit limits. Up to 500 times customers daily
hospital cash benefit each year; up to 2,000 times customers daily
hospital cash benefit over the lifetime of customers policy
Cover lasts until customer are aged 65 years, provided customer
continue to pay their premiums in the agreed manner and as long as
their lifetime benefits limit (2,000 times your daily hospital cash
benefit) has not been reached
Customers choice of nominee, to whom any outstanding benefits will
be paid, in the event of the death of the insured person
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Low-cost monthly premiums that depend on customers age at the
outset. Customers premium will never increase because of any
changes in their age, health, or the number of claims they make.
However, IDBI Federal Life Insurance Co. Ltd. does reserve the right
(subject to IRDA approval) to increase premiums in the future across
all its specified plans.
Applications for cover will not be accepted from anyone working in any occupation
described below at the time of applying. In the event of a claim whilst the insured
person is active in any of these occupations, the claim will only be considered with the
provision of proof that the insured person was not working in any of these occupations
at the commencement date.
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Lifesurance:
IDBI federal Lifesurance Plan is a saving insurance plan that helps you to
safeguard your wealth at the same time will present better opportunity to
earning better return.
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KEY FEATURES OF LIFESURANCE SAVINGS INSURANCE PLAN
Maturity Benefit
Death Benefit
On the death of the life insured during the policy term, provided all
premiums have been paid in full when due we will pay the beneficiary, the
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sum insured along with the vested guaranteed additions, vested reversionary
bonuses, interim bonus, if any and terminal bonus, if any in a lump sum.
Guaranteed Additions
Guaranteed additions at the rate 50 per 1,000 sum insured will be added to
your policy for each full annual premium that is due and paid in the first 5
years of the policy. In the case of premiums paid more frequently than
annually, the guaranteed additions will be added on a pro rata basis as the
due premiums are paid in the first 5 years of the policy. The vested
guaranteed additions will become payable along with the sum insured at the
time of a claim or maturity of the policy.
Bonuses
After the fifth policy year your Lifesurance policy will participate in any
profits of our participating policyholders life fund by way of reversionary
bonuses and possibly terminal bonus. The amount of any profits, and hence
of any bonuses will depend on the future experience and performance of the
fund. The bonuses will be declared by the Board of IDBI Federal Life
Insurance Company each year, and once added they will form part of the
guaranteed benefits of the policy. The Company may declare an interim
bonus in the event of a claim before the next bonus declaration. The
company may also declare a terminal bonus to be paid on maturity or death
provided all the due premiums have been paid.
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Tax Benefits
Policy Term: You can choose the term at the end of which you wish to
receive the maturity benefits. Lifesurance provides you the flexibility to
choose between four policy terms 10, 15, 20 or 25 years.
Premium Payment Term: You can choose the term for which you would
like to pay premiums towards your Lifesurance Plan. The minimum
Premium Payment Term is 5 years for policy terms of 15, 20 and 25 years.
The minimum premium payment term is 6 years for policy term of 10 years.
The maximum Premium Payment Term can be equal to the Policy Term. The
minimum premium amount is Rs 20,000 for annual installments, Rs 10,000
for half-yearly installments, Rs 5,000 for quarterly installments and Rs 2,500
for monthly installments.
Loans
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You can avail of the loan facility from IDBI Federal after the policy acquires
surrender value. The loan amount granted will be up to 85% of the surrender
value subject to terms and conditions specified by IDBI Federal from time to
time.
Advantage Women
Features:
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Benefits at Maturity
Sum Insured along with guaranteed additions at the rate of Rs. 50 per
1,000 of the Sum Insured for the first 3 years of the policy
a. As per the current tax laws, service tax applicable under the
policy is 3.09 % (including education cess) of the premiums
paid for the first year and 1.545% for the renewal premiums.
Service tax and education cess are as per the extant laws.
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Bondsurance:
Customers can now choose policy term as 5yrs, 7yrs, 10yrs, 15yrs and 20yrs
Customers can choose their plan from 3 available cover options as per their
preference. They have now option to insure single life and joint life
depending on the insurance cover option chosen by them.
Death benefit
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In case of individual life, on death of the insured person the death benefit
amount will be paid. In case of joint life, death benefit will be paid on the
death of the last surviving insured person.
You can also take the policy on a minor as the Insured Person. In the case of
a minor, the Bondsurance Advantage Insurance Plan will vest in the minor
upon attaining majority.
Maturity Benefit:
Surrender Option
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Discount on single premium
Bondsurance Plan
Thus customer can get life insurance cover, while earning an assured return
on their investment.
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Besides giving assured returns, Bondsurance also provides a life insurance
cover. In the unfortunate event of death of the Insured Person before the
maturity date, a Death Benefit equal to five times the single premium
amount will be paid. The Death Benefit (which is the Sum Insured) is
guaranteed. The Plan will terminate upon payment of Death Benefit. The life
insurance cover ensures that the financial security of loved ones is secured.
Wealthsurance:
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Wealthsurance offers a wide choice of investment options from which they
can select one or more, based on their preferences. The investment options
offered are designed to meet the needs of all types of investors depending
upon their risk appetite, stage of life or investment horizon. Customers can
choose options that give:
Life insurance is sometimes thought of as for those who might die, but
Wealthsurance is for those who will live. Usually life insurance products
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provide benefits upon death, but Wealthsurance is designed to also give
Living Benefits to ensure your well-being in your own lifetime. There are
various Wealthsurance plans offered by the company such as
This plan maximizes the gains and the same time are shielded from
potential losses. The plan provides a unique investment fund called
the MaxiNAV Guaranteed Fund which offers the guarantee of the
highest NAV achieved on the reset dates during the 7 years tracking
period from the date of launch of the fund on the policy maturity date.
This special feature can provide customers with benefit from market
increases and protects them from market declines.
This plan combines wealth creation and the insurance protection into
one powerful financial solution. Unlike other investment
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alternatives, it allows customer to ensure that their goals of wealth
creation are achieved even in case of serious illness.
Homesurance:
A home loan is usually a large liability and if the breadwinner who would
repay the loan were not to be there, it could become a serious burden to the
family. The Homesurance Protection Plan protects against this liability. The
specifics of the plan are as follows:
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Policy Schedule based on the amount and terms of loan, which will show
them the reducing cover amount over time.
In the event of death of the insured, insurer will pay either the cover amount
as per the Homesurance Protection Plan Policy Schedule as on the date of
death, or the actual outstanding balance in the insured loan account as on the
date of death, whichever is higher. Death due to any cause including illness
or accident is covered under the plan. Death, whether in India or abroad is
also covered under the plan.
Homesurance Plan
IDBI Federal Homesurance Plan (Homesurance) is a mortgage reducing
term plan which offers protection to a person and his family from their home
loan liability. The plan provides a cover equal to the outstanding balance of
home loan in the unfortunate event of expiry of the insured.
Homesurance covers life for an amount equal to home loan liability as per
the home loan schedule. In case of an unfortunate event of expiry of the
insured, the outstanding balance amount is paid to the nominees in one lump
sum, who may then settle the loan liability.
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This helps to settle the home loan liability should an unforeseen terminal
illness occur.
To protect customer and his family from unforeseen events, they can opt for
optional insurance benefits as an addition to Homesurance base plan.
The Optional Insurance Benefit is available only with the regular premium
plan. Additional premiums should be paid for the term of the optional
insurance benefit depending upon the sum insured chosen.
Incomesurance:
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convenient premium payment options, Tax benefits and double advantage of
Endowment and Money Back plan.
Tax Benefits
Complete transparency
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Termsurance:
46
Termsurance Protection Plan
o Advantage Women
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Tax benefits to help you grow your wealth faster
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5000 to Rs. 100000 in the multiples of Rs. 1000. IDBI Federal is also
providing another Grameen Suraksha Plan in rural area which is similar to
this plan.
Loansurance
Reducing Cover
Under the option, the insurance cover reduces as per benefits schedule. The
premium amount is computed over a period of time, taking into account
initial loan interest rate, the loan term and outstanding loan amount.
Level Cover
This option provides a cover for the sum assured as specified by the insured
and can be to the extent to the full agreed loan amount plus accrued interest
as chosen by the insured member. This remains unchanged throughout the
cover term. Thus even if the loan liability declines over time, the plan covers
is the sum assured throughout the cover time.
Microsurance
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self help groups and NGOs to insure the lives of their group members and
thus provide security to the group members families. The plan can also be
used for providing loan protection to the group members families.
Retiresurance
This is a zero death benefit pension plan, wherein the insured can
accumulate a corpus to enjoy pension after retirement. The plan is open for
ages between 18-70 years, with vesting age between 40 and 75 years. This
plan offers varied investment options spread between 100% debt to 100%
equity to choose from. Flexibility to reduce future annual premium after
completion of one year to at least 75% and not less than Rs. 10000 There is
no switching cost under this plan. The plan also offers tax deduction under
Sec. 80C and tax free returns under Sec. 10(10D)
Financial Information:
The total premium earned for the half year ended September 30, 2010 was
Rs.3427 million. The profit after tax for the same period is Rs.513 million.
There have been 132 death claims reported during the period out of which
43 claims were settled and 19 claims were rejected.
Marketing Campaigns:
IDBI Federal Life recently launched television commercials focusing on its
frontline products like Wealthsurance and Incomesurance. The campaign
taglines are Jisne bhi suna khareed liya and Guaranteed Income
Ki Bhavishavani. Whereas the first advertisement reflects that the product
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is so great that whoever hears about it, buys it instantly, the second
advertisement promises to be clear and transparent on the issue of returns in
the investment product. IDBI Federal has also introduced two animation
characters by the name of Happy and Lucky to promote the brand. To
create an awareness of the products of the organization among the
households, a painting competition Bright Sparks was conducted and
certificates were awarded to all participants.
COMPETITION ANALYSIS
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Threat of new entrance
Due to aggressive competition and high entry exit barrier, this is not
attractive segment for new player. For entering in insurance field, mandatory
capital is 100 crores. Secondly, foreign stake limited with 26%, third Indian
company have no experience in insurance business. Exit barrier are also very
high because, no company can leave market after entering due to loss
because firstly, 100 crores will be lost secondly, their compensation
(customer or other company) will be very high or more than deposited
money. So in long run, company will try to less their business but they will
not leave market. So this is good factor for IDBI FEDERAL LIFE
INSURANCE Co. Ltd. Because, where entry or exit barrier are high, profit
potential are also high.
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insurance regulator (IRDA) in India for growing buyers barging power. Due
to lowest switching, buyers are very price sensitive and buyers have many
sources for knowing about different company product. Due to education
buyer can analysis that, which product is good for him. So due to growing
buyers power this segment is not good for new player.
53
IC
ORGANIZATION STRUCTURE
CHAIRMAN
CEO
ZONAL MANAGER
REGIONAL
MANAGER
AREA
MANAGER
BRANCH
MANAGER
54
MARKETING ADMINISTRAT PADP
ION
SALES BRANCH IC
MANAGER
SUPERVISIOR
INSURANCE ADVISOR
ASISTANT BRANCH SUPERVISOR
CUSTOMER
SUPPORT
REPRESENTATIVE
55
Departments of the company:
The success of an organization depends upon the quality of its work force. HR
department is responsible for the recruitment and selection of employees based on
ability, skills and qualification. The HR department is also responsible of certain
activities concerned with the employees.
To maintain a healthy relationship and act as a mediator between the employer and employees.
To recruit and select prospective candidate, arrange for an interview and fill vacancies in the concerned
department.
To take care of the activities done by the other departments.
Personnel department is responsible for all the good and bad works done by the workers.
HR department has to maintain the good relationship with all the other departments.
Recruitment:
It handles the recruitment and the appointment of the required staff for various department of an
organization.
Induction:
Later the induction programmed of the employees will be arranged for to introduce all the department of
company by the labor officer as well as the concerned department head. Therefore, the employees can come
in terms with the objectives of the company and his participation in fulfillment of the company objectives
considering himself as an essential ingredient of the company.
Training:
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This is also one of the important functions of the department, keeping in view
to update his/her knowledge and to increase his/her efficiency, so after
sometime such programs are arranged by this department and employees of
the company are kept in touch with the least ways of the morale booster and
fondness towards the company is injected in the blood of employees.
Compensation Components
The compensation that is given in your appointment letter comprises
of base Salary, FCP (Flexible Compensation Plan), and Employers
contribution to provident Fund and Employers contribution to Gratuity. Base
salary is as per company policy is not flexible amount since a lot of statutory and
non-statutory benefits are linked to the base salary.
Statutory Benefits
The Provident Fund and Gratuity are governed by Acts of Law and are mandatory.
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Provident Fund
The Provident Fund is a one of the mandatory schemes
established by the government of India to provide social security to the service
class. It is a scheme, which is bearing on the employer and the staff member and
provides security to the staff member and / or his dependants on retirement,
disability or death.
Gratuity
The Gratuity Fund is regulated by the gratuity fund Act, 1972. At
present, the following benefit is available. All Permanent staff members of the
company, who have completed five years continuous service, are eligible for
payment of gratuity at the time of retirement.
Financial head
Fund Manager
Portfolio Manager
Staff
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Accounting Department: In this section accounts are maintained. Accounts are
maintained in traditional methods only. This is ledger.
The main functions are recording all the accounts including employees and
workers salary and their PF etc.
It records all the payments of the company.
It records all the transactions of the company.
Accounting process:
Finance Department
Internal Audit Risk Management, Business Continuity Plan, Best Practices, policy
manuals are not mere words on paper adhere to them. We ensure Practice what you
preach.
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ensures that every action is within the regulatory framework. This includes reviewing
compliance requirements and supporting the ethical framework of RIL. Internal audit
provides assurance to the management over the organizations control framework and
includes process risk management, information security assessment and business
continuity assessment.
MARKETING DEPARTMENT
Market development has lucid presentations about our products and how they
compare to those of competition. You will also find an update on the recent happenings
in the life and pensions sector. Channel marketing aims to streamline the design and
development of collaterals across distribution channels. You will find examples of
posters, flyers, banners, danglers sales toolset developed for tied agent, Bank assurance
and corporate agents, as well as for product lunches and campaigns.
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The operation department the work process between the customer and the company to
ensure consistent and quality service to the customer. To streamline the Operations, the
operation department interfaces between the claims and the agents, the branches and
underwriters, and manages work processes.
2. SKILLS
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The skills are broadly categorized as follows:-
Most of the employees at IDBI FEDERAL are recruited from management and technical
streams.
3. STYLE
One aspect of style is symbolic behavior. Typically have more people on board who
understand exploration are have headed exploration department. Typically they fund
exploration more consistently.
4. STRATEGY
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The IDBI FEDERAL has set of objectives, strategies to achieve the objective, the course
of action to be taken to achieve the objective and guidelines for the course of action.
IDBI FEDERAL adopts low pricing strategy to generate huge returns and good market
share in the industry, since it has well expanded its business all over INDIA.
IDBI FEDERAL charges minimal to its clients for the services. It provides more benefits
to customers compared to its competitor. Hence it is known for the good pricing strategy
in the industry.
5. SYSTEM
The IDBI FEDERAL has various techniques to control this procedure as system like to
improve the back office targets by giving addition support.
Information system: the implementation of computers has made information flow fast
and reliable. The information is versatile. Since IDBI FEDERAL has good backup
system.
Recruitment process starts with the identification of the vacancies by the department
head of the respective department. A form requesting for the human resource is sent from
the department to HRD.
6. STAFF
Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the
hard end of the spectrum, we talk of appraisal systems, pay scales, formal training
program and the like. At the soft end, we talk about morale, attitudes, motivation and
behavior.
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The IDBI FEDERAL is in the course of cutting down the cost of service. If it starts
recruiting, the selection is done based on the education qualification first class degree.
The various training program to the employees are taken like refresher course, job
rotation and job training. The promotion in the organization is taken place based upon the
service, seniority and educational qualification. The performance appraisal is also taken
as a basis for promotion so officers staff makes it. Staffing is a process of acquiring
human resources for the organization and assuring that they have the potential to
achievement of the organizational goal.Staffing necessity for allotting the duties and
responsibility among the employees.
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The 7-s model with reference to IDBI FEDERAL life insurance:
The 7s model are a frame work for analyzing organizations and their effectiveness. It
looks at seven key elements that make the organization successful, or not; a structure; a
system, strategy, skills, staff, shared values.
Consultants at McKinseys and company developed by 7s models in the late 1970s to help
managers address the difficulties of the organization change. The model shows that
organizational immune system and the many inter connected variables involved make
change complex, and that an effective change effort must address many of these issues
simultaneously.
The 7s model is a tool for managerial analysis and action that provides structure with
which to consider a company as whole, so that the organizational problems may be
diagnosed and a strategy may be developed and implemented.
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The seven diagrams illustrates the multiplicity interconnectedness of elements that
organizations ability to change. The theory helped to managers thinking about how
company could be improved. It says that it is not just a matter of devising a new strategy
and following it through. Nor is it a matter of setting a new system and letting them
generate improvements?
To be effective, your organization must have degree of fit or internal alignment among all
the 7s. Each S must be consistent with the reinforcement of the other S. All S are
interrelated so a change in one has a ripple effect on all others. It is impossible to make
progress on one without making progress on all. Thus, to improve the organization you
have to master system thinking and pay attention to all of the seven elements at the same
time. There is no starting point or implied hierarchy different factors may drive the
business in any one organization.
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SWOT ANALYSIS:
Environmental Scan
Weaknesses Opportunities
Strength Threats
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Weakness: attributes of the organization those are harmful to
achieving the objectives.
The aim of any SWOT analysis is to isolate the key environmental factors
that are important to the plans of the organization. SWOT groups key
pieces of information into two main categories:
STRENGHTS
4. IDBI FEDERAL Life Insurance is the first large pvt.sector life insurance co. with
a pan India network and strong retail focus to declare substantial profits for the
financial year.
5. IDBI FEDERAL Life is most profitable pvt.life insurer for last year. Company
has achieved profit of more than 1000 crore last year.
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6. Largest distribution network to reach the customers across the country with 2,
13,000 agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance
partners.
They have to compete with the Government Companies like LIC and UTI who
has been very established in this field. So they will have to attain the same trust of
the public as it is in case of LIC and UTI.
OPPORTUNITIES
1. Life insurance has captured its mere15 20% growth therefore a wide open untapped
market is open to the company to develop, grow and measure its success.
2. Still the numbers of companies are few and company has every capability to grow
and forward its performance areas to the widest.
3. Distinguishable product.
THREATS
1. People are hesitant to invest and put their hard earned money to the private life
insurance company with the fear of getting lost.
3. Alternative financial services such as mutual fund, banking services, share and
securities also pose problems and threats to the working of the life insurance sector.
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4. Illiteracy and unemployment also pose threat.
5. Rising real estate industry also pose threat as people are investing a bulk of their
money over to that industry.
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Customer Relationship Management
Recently CRM has taken a center stage in the business world with businesses
concentrating on saving money and increasing profits by redefining internal processes
and procedures. It costs a company dramatically less to retain and grow an existing
client, than it does to court new ones. It is said that It is seven times more expensive to
acquire a new customer than to keep an existing one, therefore the value of customer
information and management should never be underestimated
Value equity
Brand equity
Relationship equity
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CRM (Customer Relationship Management) is something that is not restricted to any
country or culture. Wherever customers are there, business cannot afford to keep them
unhappy; and that is where CRM comes in as a strong requirement.
In India, the trend is positive. When compared to about twenty years ago , people
have more choice and every company knows it cant take customer for granted .May be
the movement is slow ,but we see a steady progress towards an increased focus on the
customer rather than merely on the products and price .
Todays era is of service because customers are ultimate base line for any business to
sustain in this competitative world
For example: Banks started providing gold, silver cards to its valued customer,
depending on their needs the customer get faster services.
The concept of CRM is relatively simple and familiar to insurers. The two points of
the concept are:
Offer them the services and products over their lifetime that will maintain
or increase their profitability and retain them as your customers.
These are the some supporting strategies that implement these concepts to yield
significantly greater results and a true competitive advantage.
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The current trends in corm followed by insurance companies
While the CRM market in India is still nascent, bigger players such as ICICI
Prudential Life Insurance Company are adopting it in a big way. The company was earlier
using Gold Mines (a sales and marketing tool) and HEAT (an operational CRM solution)
from Front Range Solutions. Last year it took a decision to invest in CM3 from Tera data
and SASs statistical tool for BI. Anil Tikoo, head-IT at ICICI Prudential Life Insurance
Company says, As a forward looking company, we see CRM playing a significant role
in acquiring new customers. CRM lets us obtain granular details about our customers,
helping us to design better products, improve service levels and reduce operational
costs. CRM has helped ICICI Prudential Life capture five lack customers through
effective event-based marketing and lead tracking to cross- and up-sell products.
Insurers have added a variety of products and services to their kitty. These range
from insurance as an investment option to pension plans. They target the younger
generation in the 20 to 30 years age group. The convergence of four factorsprotection,
saving (investment option), loans and pensionhave compelled insurance companies to
align with banks in reaching out to a larger audience, says Tikoo. This trend has led to
anotherinsurance companies are joining hands with banks by becoming channel
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partners for insurance. Tata AIG has a marketing alliance with HSBC, Birla Sun Life has
one with Citibank and IDBI and LIC ally with Corporation Bank, while Kotak Life
Insurance has an arrangement with Kotak Bank. This strategy helps insurance firms
increase their footprint to cover a larger part of the customer base in the 20-30 years
demographic. CRM helps connect a banks high net worth customers with insurance
firms.
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Where to beginoperational CRM or analytical CRM?
The choice between operational and analytical CRM as a starting point depends
upon the insurers needs. Gartner says that insurance companies with multiple financial
products and a big customer base, such as integrated insurance solution providers, will
leverage their customer base to cross- and up-sell different financial products, including
insurance. Such providers will benefit from adopting analytical CRM. Market
segmentation, campaign management and data mining applications will benefit them in
many ways.
Call center text mining: This tool can help improve the customer experience by
resolving complaints rapidly. Insurers are using these tools to mine text from call
center transcripts to identify issues faced by customers. Text mining tools also
help detect and capture other useful pieces of information around a customers life
stage, financial needs and product interests. These can be used to generate leads
and trigger cross-selling. However, to be fully effective, customer service
representatives must be trained to probe for information that will help in cross
selling during the text-mining phase. Text mining tools are leading edge today, but
are predicted to take off quickly.
Event-triggering and profiling: Insurers can use event triggers to generate leads
that can be acted upon quickly, usually within 24 hours, says Tikoo. Event-
triggering tools monitor incoming transaction and contact data in near-real-time to
recognize changes in a customers behavior or profile to trigger actions or alerts.
Lead management gets sophisticated: Often the ability of an insurer to generate leads
by means of event-triggering, re-engineered touch points and cross line-of-business
referral can outstrip their ability to manage said leads. In such a situation, though the
number of leads generated rises, the conversion rate does not. It may even drop. CRM
can help provide sales representatives with a mechanism to prioritize and manage leads.
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Changing customer behavior in insurance buying
Changing expectations
A remarkable trend in the insurance industry in the last three years is the rapid
change in the knowledge level as well as expectations of the customers. A study
conducted last year by Forte, a collaborative effort between FICCI and ING Vysya
Insurance Co. about the consumer behavior in the pre and post liberalization days of the
industry had revealed stunning changes in consumer expectations.
It looks as though the docile, uninformed, insurance consumer has suddenly been
transformed into an aggressive and highly demanding species. While the fresh air of
competition in every sector of the economy brings in major changes in consumer
expectations (witness the sea change in the attitude of automobile buyers in India in the
last five years), the insurance industry has witnessed a few unique aspects, such as
regulation-inspired efforts to educate insurance buyers, and a vast change in the skills and
capabilities of the intermediaries involved in distribution.
Motivating factors
In respect of life insurance, potential buyers are driven to buying a policy for one
or more of three major reasons: security of the money invested, saving for one or more
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specific purposes, and the availability of tax benefit. Customers are increasingly known
to place less IDBI Federal on the tax benefit factor, and stress more on the security aspect
and the end-use objective. The challenge of the insurance companies is to address the
motivating factors imaginatively and come up with genuine solutions. Take for example,
the consumers objective of taking a policy to save money for higher education of a child.
This has been a driving force in the sale of new insurance contracts in several other
countries too, notably in Asia.
A potential buyer primarily expects that the saving should be a painless process
and that the money saved should be absolutely safe. The challenge is to provide not only
convenient payment options, but also mechanisms that could offer some measure of
protection and relief to the customer if he is forced to disrupt the payment arrangement
for unforeseen reasons.
On the issue of the consumers perception of security of the money invested, there
are two important aspects. One is how the features of the insurance contract are put
across to the buyer (whether it is a unit-linked policy or endowment oriented).
The second is how to address more effectively the question about the
dependability of the new generation companies that potential new insurance buyers raise
during sales calls especially outside metros and in small towns (referred to in publicity
jargon as buyers in the SEC B and C categories). Both insurance companies and the
Regulator need to address this behavioral challenge more actively.
Consumers experience
There has been a vast change in the approach of the insurance agent from the pre-
liberalization days. While the agent in the past established informal contacts with
potential buyers and often depended on referrals from friends and family members, the
new age companies insist on a professional, and often aggressive stance on the part of the
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sales staff. Customer expectations in this regard revolve around two key aspects: first,
whether the customer is getting truthful advice from the agent, or if he is pushing a
product that yields him the highest commission rate. Invariably, the customers today
expect the insurance agent (and other intermediaries such as the banc assurance sales
staff) to provide a ready comparison of competitors products and how the product the
agent is suggesting is superior to the others. How far is the need-based analysis of
insurance requirement, that the new age sales staff are trained to offer, found to be
relevant and useful to potential insurance buyers? The answer varies from the metro cities
and small towns. However outside metro cities, customers tend to take a clear view that
saving-oriented policies are more needed. There is also marked reluctance to disclose the
true personal financial status and the corresponding insurance needs to insurance
salespersons.
The second aspect of customers perception about the new generation of insurance
agents is the level of continuing commitment of the agent to arrange post-sale service.
Potential insurance buyers are unsure that they would continue to deal with the same
agent who sold the policy throughout the term.
They would tend to place more IDBI Federal on the companys general promises
of service and commitment. This is an important message for the insurance companies.
As insurance customers increasingly make arrangements to pay periodical premiums
directly through the electronic medium, or though automatic transfers from their bank
accounts, thereby bypassing the need for regular post-sale service by the agents,
customers would tend to place more IDBI Federal on the direct standard of service from
the company concerned. Instances of customers requiring agents to arrange for loans
against their policies, or change nominations etc. are rare. Therefore companies need to
gear themselves to provide high service standards directly.
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Premium shopping
Is pricing or the premium rate for a policy, a deciding factor for buying insurance?
It is indeed so in a price sensitive market such as ours. In several forums, customers have
voiced the general feeling that as insurance products become more complex, and they get
bundled with several riders, it is becoming impossible to make price comparisons
between different companies.
An increasingly larger segment of customers now questions why the premium rate
should be the same for a policy if bought direct from the company over Internet, or
through a channel considered simpler, such as the banc assurance channel. There is logic
in the insurance companies passing on the cost saving to customers in such cases.
High expectations
One aspect of customer service from new age insurance companies that a remains
to be tested widely is the claim payment record. While consumers seem to be satisfied
that the survival benefits under a life insurance policy would get paid rather promptly
from the tech-savvy new companies, obviating the need for interlocution by the insurance
agent, insurance buyers are not yet convinced about hassle-free payment in the event of a
claim, whether under a life policy or a general insurance policy. This is especially so in
respect of rider benefits such as critical illness or hospitalization benefits.
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The level of consumer skepticism on claim payment is markedly high in respect
of non-life insurance products, such as Householders Package or Medicaid policies.
There is considerable work to be done to boost the level of confidence both by insurance
companies and the Regulator. By the time a company completes the development of a
strategy and makes investments to pursue the strategy, the opportunity often ceases to
exist. It is therefore important that the new age insurance companies become kinetic
enterprises, which can take advantage of unpredictable customer demands and
unexpected market events immediately. This is vastly relevant for the Indian market
where the insurance consumers are rapidly coming of age.
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Rationale for the Project
IDBI Federal Life Insurance Company Limited is a part of IDBI Federal Capital
Ltd. of the IDBI Federal - ANIL DHIRUBHAI AMBANI Group. IDBI Federal Capital is
one of Indias leading private sector financial services companies, and ranks among the
top 3 private sector financial services and banking companies, in terms of net worth.
IDBI Federal Capital has interests in asset management and mutual funds, stock broking,
life and general insurance, proprietary investments, private equity and other activities in
financial services.
Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international standards.
And this part of the population is also subject to weak social security and pension
systems with hardly any old age income security. This itself is an indicator that growth
potential for the insurance sector is immense.
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Title of the Project
OBJECTIVES
1. To study the companys procedures conducted by the company for retaining the
customers.
3. To study the companies efforts in maintaining and motivating the advisors for
retaining an existing customer and building a new customer
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SCOPE OF THE STUDY
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RESEARCH METHODOLOGY
Type of data
1.Primary data
2.Secondary data
Primary data
The primary or the first hand data will be collected with the help of handing out the
questionnaire to the customers &employees.
Secondary data
Secondary data was collected through company websites, discussions with company
guide.
Sampling Design
The research was mainly opted on customers survey, advisers survey as well as
sales officers survey.
The sample selected for survey was stratified sample. Sample size is 50
Customers, 10 Sales officers and 50 advisers.
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Sample Character
Sampling Plan
For Customers
Sampling unit : Individuals.
For Advisers
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Tools and Technique of Data Collection
Personal Interviews
Where customers, sales officers and advisers were interviewed personally that
face to face interaction were done.
Questionnaire:
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Table 1: Do you agree that IDBI Federal insurance variety of products.
Cumulative
Frequency Percent Valid Percent Percent
strongly agree 30 60.0 60.0 60.0
agree 17 34.0 34.0 94.0
normal 3 6.0 6.0 100.0
Total 50 100.0 100.0
normal
6.0%
agree
34.0%
strongly agree
60.0%
Findings
From the 50 respondents surveyed
60% Customers are strongly agreed that IDBI Federal have variety of products.
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34% Customers are agree that IDBI Federal has variety of products.
Table No: 2. Did you get sufficient information about the product while purchasing
Cumulative
Frequency Percent Valid Percent Percent
yes 37 74.0 74.0 74.0
no 13 26.0 26.0 100.0
Total 50 100.0 100.0
Figure: 2. Did you get sufficient information about the product while purchasing
no
26.0%
yes
74.0%
Findings
74% respondents say that they got sufficient information about product while
purchasing.
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26% respondents say that they did not got sufficient information about product while
purchasing
Frequenc Cumulative
y Percent Valid Percent Percent
complexity of products 12 24.0 57.1 57.1
less information given
9 18.0 42.9 100.0
by advisor/sales officer
Total 21 42.0 100.0
less information g iv
18.0%
M issing
58.0%
complexity of produc
24.0%
Findings
89
18% respondents say that less information given
Cumulative
Frequency Percent Valid Percent Percent
fully matched 27 54.0 54.0 54.0
partly matched 20 40.0 40.0 94.0
normal 3 6.0 6.0 100.0
Total 50 100.0 100.0
normal
6.0%
partly matched
54.0%
Findings
54% respondents say that, their need and product fully matched
90
40% respondents say that, their need and product partly matched
Table: 5.
how much are you motivated by advisor ?(advisor) * how much are you
motivated by sales officer?(sales officer)) Crosstabulation
Count
how much are you
motivated by sales
officer?(sales officer))
highly
motivated motivated Total
how much are you highly motivated 15 4 19
motivated by advisor motivated 19 6 25
?(advisor) not at all 3 3 6
Total 37 13 50
20
19
15
10
6
how much are y ou mot
4
Count
3 3 highly motivated
0 motivated
highly motivated motivated not at all
Out of the total sample most of the customer are highly motivated by the sales officer
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Table 6: Which are the services you receive from the advisor
Cumulative
Frequency Percent Valid Percent Percent
information of premium
27 54.0 54.0 54.0
date reminding
information of new
17 34.0 34.0 88.0
policies
help in solving the doubts 6 12.0 12.0 100.0
Total 50 100.0 100.0
Figure: 6. Which are the services you receive from the advisor
12.0%
information of premi
information of new p
54.0%
34.0%
Findings
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54% respondents say that they got information about the premium
34% respondents say that their need and product partly matched
12% respondents say that their need and product are neutral
Cumulative
Frequency Percent Valid Percent Percent
yes 31 62.0 62.0 62.0
no 19 38.0 38.0 100.0
Total 50 100.0 100.0
Findings
no
38.0%
From the 50
yes
62.0%
respondents surveyed
38% advisor say that they dont try to understand needs of the customers
Table: 8. How many times you have contacted the existing customer
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Cumulative
Frequency Percent Valid Percent Percent
once in week 7 14.0 14.0 14.0
once in month 15 30.0 30.0 44.0
once in 6 months 18 36.0 36.0 80.0
once in a year 10 20.0 20.0 100.0
Total 50 100.0 100.0
Figure: 8. How many times you have contacted the existing customer
once in week
once in a year 14.0%
20.0%
once in month
30.0%
once in 6 months
36.0%
Findings
36% Advisor say that they have contacted the customers once in 6 months
30% advisor says that they try to contact once in a month to customer
20% Advisor say that they have contacted once in a year to customers
14% advisor says that they have contacted customers once in a week.
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Cumulative
Frequency Percent Valid Percent Percent
yes 29 58.0 58.0 58.0
no 21 42.0 42.0 100.0
Total 50 100.0 100.0
no
42.0%
yes
58.0%
Findings
42% advisor says that they dont prepare for sales call
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Cumulative
Frequency Percent Valid Percent Percent
Training about
26 52.0 52.0 52.0
customer handling
Helpdesk at the branch 16 32.0 32.0 84.0
Generating leads by
8 16.0 16.0 100.0
the company
Total 50 100.0 100.0
Generating leads by
16.0%
52.0%
Helpdesk at the bran
32.0%
Findings
52% Advisor says that they want training about customer handling
32% advisor says that they want help desk at the branch
16% advisor says that they want generating leads by the company
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Cumulative
Frequency Percent Valid Percent Percent
H.satisfied 7 70.0 70.0 70.0
satisfied 3 30.0 30.0 100.0
Total 10 100.0 100.0
satisfied
30.0%
H.satisfied
70.0%
Findings
70% of the advisors are highly satisfied with monetary benefits, and
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Table: 12. Extent of advisor satisfaction in RIL with rewards
Cumulative
Frequency Percent Valid Percent Percent
H.satisfied 3 30.0 30.0 30.0
satisfied 5 50.0 50.0 80.0
neutral 2 20.0 20.0 100.0
Total 10 100.0 100.0
neutral
20.0% H.satisfied
30.0%
satisfied
50.0%
Findings
30% of the advisors are highly satisfied with the rewards.
50% of the advisors are satisfied with the rewards, and
20% of the advisors are feeling normal about the Rewards
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Table: 13. Extent of advisor satisfaction in RIL with recognition
Cumulative
Frequency Percent Valid Percent Percent
H.satisfied 4 40.0 40.0 40.0
satisfied 4 40.0 40.0 80.0
neutral 2 20.0 20.0 100.0
Total 10 100.0 100.0
neutral
20.0%
H.satisfied
40.0%
satisfied
40.0%
Findings
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Table: 14 Do you find difficulty in handling advisers
Cumulative
Frequency Percent Valid Percent Percent
yes 6 60.0 60.0 60.0
NO 4 40.0 40.0 100.0
Total 10 100.0 100.0
NO
40.0%
yes
60.0%
Findings
The sales officer found about 60% difficulty in handling the advisor
The sales officer found about 40% No difficulty in handling the advisor
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Table: 15. What kind of assistance do you need to generate more business
Cumulative
Frequency Percent Valid Percent Percent
presentation by the
1 10.0 10.0 10.0
insurance comapny
briefing by managers 2 20.0 20.0 30.0
helpdesk at the branch 2 20.0 20.0 50.0
meeting with advisers 5 50.0 50.0 100.0
Total 10 100.0 100.0
Figure: 15. What kind of assistance do you need to generate more business
presentation by the
10.0%
briefing by managers
20.0%
50.0%
20.0%
Findings
50% sales officers feel that generating business can be done through meeting with advisor
50% sales officers feel that generating business can be done through help desk at the
branch
20% sales officers feel that managers can do generating business through briefing
10% sales officers feel that managers can do generating business through presentation
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FINDINGS
1. Even though the sales officers and advisors provide sufficient information to
customers, while selling the product 26% of the total customers feel that they had not
received sufficient information. Provided was complex, rest of the respondents feel that
the information provided was less.
2. Found that IDBI Federal Life Insurance has large variety of products in its portfolio, it
is observed that 37% of the customer feel that the product purchased by most the
customer and their need are not matching.
3. As compared to the Advisors, Sales people perform more than advisors. In instance
sales people have motivated the most of the customers to purchase the product.
5. Due to lack of the effective training, most of the advisors were not able to handle the
customer properly, and may not solve the customers queries.
6. There are not satisfactory visits made by the advisors to the customers doorstep. Only
14% of the advisors have been visiting the customer at their doorstep at once a week. So
that they can find the need in the existing customers or can be able to build a new
customer for the IDBI Federal Life Insurance
7. Most of the advisors do not prepare themselves for the sales call; in turn they may not
perform better at the call of the customer.
8. To generate more business, most the Sales officers feel that there should be a meeting
to be kept with the advisors.
9. The services provided by advisor to the customer are most of about 54% of the
customer receive information of premium date reminding, while 34% receive information
of new policies and 12% of customer get service of solving the doubts.
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10. 62% of the advisors have tried to understand the customers needs, which in-turn will
help in suggesting a suitable product to the customer. But 38% of the advisors havent
tried in understanding the customer needs.
11. About 32% of the advisors feel that the company should provide help desk at the
branch. And 16% of the advisors feel generating leads by the company is necessary for
generating more business.
12. 70% of the advisors are highly satisfied with monetary benefits, and only 30% of the
advisors are satisfied with monetary benefits.
13. 30% of the advisors are highly satisfied with the rewards. 50% of the advisors are
satisfied with the rewards, and 20% advisor are feeling normal about the Rewards
14.40% of the advisors are highly satisfied with the recognition, about 40% of the
advisors are satisfied with the recognition, and 20% advisor are feeling normal about the
recognition.
15. The advisors who are working with the IDBI Federal Life Insurance fall under the age
group between, 25 to 30 Years. Most of the advisors are young.
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Limitations of the study
The present study is undertaken in LUCKNOW city and data is collected from the
respondents for the year 2009-10. Hence, data pertained to the study is too short and brief
for generalization. Hence, it would be difficult to draw precise generalizations regarding
the implications of the study. The findings in the study, interpretations and conclusions
drawn could be best seen within these limitations.
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EXPECTED CONTRIBUTION FROM THE STUDY
As the number of visits made by the advisors to the customers is less than 56%,
and the relation can be build/maintained by effective communication with the
customers by being in constant touch with the customer. As many of the new life
insurance companies are entering, IDBI Federal has to maintain its relation with
the customer. So that it can be abele to generate more number of loyal customers.
To educate the customers about the new products, the company can use SMS
service for reaching its customers. Due to large number of customers, the reach of
the entire customers in less time may not be possible from its advisors and sales
officers. This can be a less costly medium of taking direct response of the
customers. As it does not disturb the customer.
To effective closing of any sales call, one should understand the need of the
customers in depth. The Advisors can be trained by the sales officers, and training
institution.
The IDBI Federal should come up with more number of Products for those
customers about 40% of customer are feeling that the product that they purchased.
does not match there needs
This research has been brought up many facts regarding the Customer relationship
Management. IDBI Federal Life insurance has large number of products in its portfolio.
But the advisors are unable to find out the need of the customers and they are unable to
suggest the right suitable product. By this project, now I can understand the various
factors of insurance industry and how the customer relation is maintained in this industry.
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The potential customers are more in number and they are still not secured their life. Due
to distribution channels, to reach every other customer in shortest time is not possible;
hence company can adopt some of the suggestions
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Dear Sir/Madam,
1. Name:
2. Age:
3. Sex:
4. Income:
5. Do you agree that IDBI Federal life insurance offers variety of products?
a) Yes b) No
Complexity of products
Less information given by the adviser/sales officer
Any others (specify)
8. Does your need and the product you purchased are matching?
Fully matched Partly matched Normal Partly not matched Not matched
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9. How much are you motivated by the adviser or sales officer?
11. Suggest any unique service you want from the organization?
__________________________
Thank You
1. Name:
2. Designation:
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3. Do you agree that IDBI Federal life insurance has variety of products?
Yes No
Yes No
Yes No
Monetary
Rewards
Recognition
_______
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Yes No
_____________
11. Are you given sufficient information / training to help you clear the advisers queries
regarding insurance plans?
Yes No
Thank You
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QUESTIONNAIRE FOR ADVISERS
1. Name:
2. Age:
3. Sex:
4. Qualification:
5. Do you agree that IDBI Federal life insurance has variety of products?
Yes No
_______
Yes No
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9. If no then what type of difficulty you face?
_____________
10. Have you given sufficient information / training to help you clear the customers
queries regarding insurance plans?
Yes No
11. How many times you have contacted the existing customer?
Yes No
Thank You.
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BIBLIOGRAPHY
Textbooks:
2. Marketing Management
www.licindia.com
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