SUMMER TRAINING REPORT ON

ANALYSIS ON LIFE INSURANCE

For

SUNDARAM FINANCE LTD

By

Rahul Verma
C-41
In partial fulfillment for the award of the degree
Post Graduate Diploma in Business Management
(2009-11)

New Delhi Institution of Management

F-13, Okhla Phase -1, New Delhi, Pin: 110020

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 SUMMER TRAINING REPORT ON

ANALYSIS ON LIFE INSURANCE

For

SUNDARAM FINANCE LTD

Under the supervision

Of

Mr. KULDEEP YADAV

(Location manager)

Submitted By- Submitted to-

Rahul Verma Ms. Shweta Bhatnagar

C-41 (New Delhi Institution of
Management)

ACKNOWLEDGEMENT
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I would like to express great gratitude to various people of New Delhi Institution
of Management, for encouraging me to do the project. I would like to thanks my
company mentor Mr. KULDEEP and my faculty mentor Ms. SHWETA
BHATNAGAR for their valuable guidance and support in the project.

In the last not least I express my profound gratitude to the staff of Sundaram
Finance Ltd for their support and empathy.

RAHUL VERMA
C-41

DECLARATION

I Rahul Verma student of New Delhi Institution of Management (2009-11) declare

that every part of the project report on LIFE INSURANCE that I have submitted is
original.

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I was in regular contact with the nominated guide and contacted five times for
discussing the project.

Date of project submission: ____/____/_____

Rahul Verma

Faculty’s comments:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Ms. Shweta Bhatnagar.

TABLE OF CONTENTS

1. Executive summary 6

2. Company’s profile 7

3. Awards and achievement 14

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 4. Objective of study 15

5. Introduction of Life Insurance 16

6. Types of Insurance policy 19

7. Regulatory Acts 27

8. Life Insurance in India 32

a. List of Insurance Companies in India 32

b. Various plans at Life Insurance 35

9. SWOT analysis 39

10. Research methodology 40

11. Analysis and Interpretation 42

12. Limitations 78

13. Conclusions 79

14. Recommendation 80

15. Appendix 81

16. Bibliography 83

EXECUTIVE SUMMARY

A well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and the
same time strengthen the risk taking ability.
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Life insurance is also now being regarded as a versatile financial planning tool in
India. India being a country having a huge population of around one billion people
with only 33.2% of the population in India possessing life insurance. The country
has a vast potential that has been left untapped till now.

Therefore what this has led to is the flooding of the life insurance market with a
number of private players which in collaboration with recognized foreign
companies promises to deliver the best of services at the lest price. All these
companies are trying to grasp the maximum of market share in life insurance
sector.

The methodology for carrying out the project was very simple that is through
primary data and secondary data obtained through various mediums like survey
through questionnaire, facts sheet of the funds, the internet, Business magazines,
Newspapers, etc the analysis of funds has been done with project to its various
parameters

SUNDARAM HISTORY

The Company was incorporated in 1954, with the object of financing the
purchase of commercial vehicles and passenger cars. The company was started
with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972. The

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Company's shares were listed in the Madras Stock Exchange in 1972 and in the
National Stock Exchange in January 1998.

Subsequently, the equity shares of the Company have been delisted from Madras
Stock Exchange Limited (MSE) with effect from January 27, 2004, in
accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary
delisting.

For him it was a lifetime involvement in automobiles, finance and

philanthropy

Born on November 8, 1912, Mr. Santhanam had his education

in Madurai. In 1930, he joined his father in business, and thus
began a life-time involvement in automobile and finance.

He moved to Chennai in 1936, and served parent company

T.V. Sundaram Iyengar & Sons, in various capacities, gaining
rich experience in road transport, marketing of automobiles, manufacture of
automobile components, general insurance, banking and finance. In 1954, he
founded Sundaram Finance, which together with its subsidiaries, now has an asset
base of about Rs.6000 crore.

He played a crucial role in the establishment of several auto component units in

the TVS Group, prominent among which were Wheels India, Brakes India,
Sundaram Clayton and Lucas-TVS. He also promoted Madras Motor General
Insurance Company, which later merged into the United India Insurance
Company. He was Managing Director of the T.V.Sundaram Iyengar & Sons for
nearly a decade before becoming its vice-chairman, position he held till his death.

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He was not only deeply involved in negotiations with foreign collaborators for the
manufacture of quality auto components, but also in financial planning and
project financing. His financial acumen was always regarded highly, not just in
the TVS group, but outside as well. He served on the Government's Direct Taxes
Advisory Committee, and the study Group on Road Transport Financing among
others.

For Mr.Santhanam, quality was paramount. He ensured that his auto component
distribution companies provided transport operators genuine and quality products
at fair prices.

He was also the founder chairman of trade associations such as the Federation of
Automobile Dealers' Association and the South India Hire Purchase Association.

He was an ardent supporter of sports, especially football, cricket and tennis. In the
late 1940s he promoted TVS Greens, which had several leading national football
players. A keen tennis player himself, he sponsored several leading players
during the early stages of their career. He was often spotted at Wimbledon during
the tennis fortnight cheering on India's maestro, Ramanathan Krishnan.

He championed educational, religious and charitable causes and was instrumental

in donating large sums of money from the companies with which he was
associated.

T S Surendran, Vice-Chairman of Sankara Nethralaya, said Mr.Santhanam had

contributed liberally to "the cause of our foundation." He was associated with the
foundation for over 25 years. The Sundaram Medical Foundation and the hospital

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managed by it stand testimony of his keen interest in charitable causes.

"Work was worship for him," according to officials in the TVS Group. "His
number sense was incredible," said a ranking official of Sundaram Finance, who
had worked with him closely. He knew his principal employees by name and
qualification. He kept himself updated on the happenings in the group companies
and attended meetings of the Sundaram Finance Board.

Mr.Santhanam, according to T T Srinivasaraghavan, Managing Director of

Sundaram Finance, was a "visionary."

Even in early 1950s, he had understood the need for a good road infrastructure.
"He tirelessly worked for the uplift of transport operators," Mr.Srinivasaraghavan
said, and pointed to the travels Mr.Santhanam had undertaken across the country
often sipping tea with the drivers.

Mr.Santhanam brought to bear such involvement in the non-banking finance

business, encouraging small players to become corporate entities. "He never saw
anyone as a competitor," he said.

IN RECOGNITION OF SERVICE TO INVESTORS

A Certificate of honour was given by the Institute of Chartered Financial Analyst,

in recognition of the Company's efforts to set a trail blazing record of investor
rewards , fostering the equity cult on ethical lines among the top hundred investor
rewarding companies in India for the period 1990-95.

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Birth of Sundaram Finance

First finance company to be listed on the Madras Stock

Exchange.

Started Leasing operations.

Formation of Lakshmi General Finance

Receivables crossed Rs. 1000 crore (Rs. 10 billion)

Deposits crossed Rs. 500 crore (Rs. 5 billion)

Formed Sundaram Newton Asset Management Company

Ltd. in collaboration with Newton Management Ltd., UK.

Received Best Tax Payer Award

Received Best Tax Payer Award

Receivables crossed Rs. 2000 crore (RS. 20 billion)

Promoted Fiat Sundaram Auto Finance Limited, a joint

venture with Fidis S.P.A., Italy

Promoted Sundaram Home Finance Limited with equity

participation from International Finance Corporation (IFC),
Washington, and FMO Netherlands

Promoted Royal Sundaram Alliance Insurance Company

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Limited, a joint venture with Royal & Sun Alliance Plc, for
Non-Life Insurance

Promoted Sundaram Infotech Solutions - Infotech division

of Sundaram Finance

Promoted Sundaram Business Services - BPO arm of

Sundaram Finance

Merger with LGF making SF Billion dollar Balance sheet

NBFC

BNP Paribas Asset Management Group, France acquires

49.90 % stake in Sundaram Asset Management Company
Ltd from SFL.

Union de Credit pour le Batiment SA (UCB), a wholly owned

subsidiary of BNP Paribas SA, France acquires 49.90%
stake in Sundaram Home Finance Ltd from SFL

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Board of Directors:

Chairman:

Sri S Viji

Directors:

Sri S Ram
Sri S Narayanan

Sri T R Seshadri
Sri S Ravindran
Sri S Prasad
Sri Aroon Raman
Sri Srinivas Acharya

Managing Director:

Sri T T Srinivasaraghavan

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Company Secretary:

Sri S Venkatesan, CFO & Secretary

Compliance Officer:

Sri P Viswanathan, Deputy Secretary & Compliance Officer

Awards and Achievements

• ‘Certificate of Commendation’ award by the Government of India under

the scheme of “Good Tax Payers”.

• “Second Best Tax Payer” in the category of Private Sector Company for
Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax
Department, Tamil Nadu.

• ‘Rolling Trophy’ by Rotary Club of Madras South West for Best

Employer-Employee Relationship for the year 1995-96.

• “Best Tax Payer” in the category of Private Sector Company for

Assessment Year 1995-96 in Tamil Nadu Region, from the Income Tax
Department, Tamil Nadu.

• “Automan Award” to Shri T S Santhanam, Chairman, from Motor India

in 1998.

• “Pioneering Service Award” to Shri T S Santhanam Chairman, from

Chennai Good Transport Association.

• “Sarige Ratna Award” to Shri T S Santhanam, Chairman, from the

Bangalore City Lorry Transporting Agents’ Association (Regd).

• “Most Valued Customer Award” to Shri T S Santhanam Chairman,

from the State Bank of India.

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 • “The Best Financier of the New Millennium 2000” to Shri. G K Raman,
Managing Director, from the All India Motor Transport Congress.

Objective of the Project

Main objective of the project is to find out the market potentiality of Life
Insurance. Project is all about Analysis on Life insurance, how many private sector
public sector company’s in Insurance and customer first preferences for Insurance.

Nowadays all the insurance companies in India are trying to establish themselves
in the competitive market. They are introducing innovative marketing strategies to
survive in the market. Many other private companies are looking to enter in the
Indian Insurance market.

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 Introduction to life Insurance
Life insurance offers a way to replace the loss of income
that occurs when someone dies (usually the person who produces the majority of
income in a family situation). It is a contract between you as the insured person
and the company or "carrier" that is providing the insurance. If you die while the
contract is in force, the insurance company pays a specified sum of money free of
income tax — "cash benefits" — to the person or persons you name as
beneficiaries.

Life insurance: Purchase policy; the insurance company promises to pay a lump
sum at the time of the policy holder’s death, or sometimes while they are still alive.

Purpose of life insurance: Protect someone who depends on you from financial loss
related to your death.

Other reasons are.

➢ To leave as part of your estate.
➢ To save money for retirement or for income or education for children.
➢ To make charitable bequests upon your death.
➢ To pay off a mortgage or debts at the time of death.

Principles of Life Insurance

➢ Mortality tables provide odds on your dying, based on your age and sex.

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 ➢ Your premium is based on your life expectancy and the projections for
the payouts for persons who die.

Determining Your Life Insurance Needs –

Ask Yourself...
 Do you need life insurance?
– Do you have people you need to protect financially?
– Do you have a partner who works?
 What are your objectives for life insurance?
– How much money do you want to leave your dependents should you
die today?
– When do you want to retire, and what income do you think you’ll
need?
– How much will you be able to pay for your insurance program?

Buying Life Insurance

 When you buy life insurance, you want coverage that fits your needs and
your budget.
 Decide how much you need, for how long and what you can afford.
 Examine what kinds of policies are available to meet your needs and pick
the one that best suits you.
 Compare what different companies charge for the same kind of policy
and amount of insurance you want.

Finding a Low Cost Policy

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 ➢ Do premiums or benefits vary from year to year?
➢ How much cash value builds under the policy?
➢ Are premiums, benefits or interest rates guaranteed or subject
➢ To change by the company?
➢ What is the effect of interest on money paid and received at
➢ Different times on the policy?

Good Life Insurance

A good life insurance program does more than just replace the loss of
income that occurs if you die. It should also provide money to cover the new costs
that arise after your death — funeral expenses, taxes, probate costs, the need for
housekeepers and child care, and so on. And these cash benefits should provide for
your family's future needs as well, including college education for your children
and part or all of your spouse's retirement needs. In almost all cases, your
beneficiary can use the cash benefits in the way he or she sees fit, without
restriction.

Estimating Your Life Insurance Requirements

➢ The Easy Method:
○ Typically, you will need 70% of your salary for seven years while
your family adjusts.

➢ The DINK (dual income, no kids) Method

➢ The “Nonworking” Spouse Method:

○ Multiply the number of years until the youngest child reaches 18 by
$10,000.

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 ➢ The “Family Need” Method:
○ More thorough than the first three because it also considers employer
provided insurance, Social Security benefits, and income and assets.

Two Types of Life Insurance Companies

1. Stock life insurance companies are owned by the shareholders.

– 95% are of this type.
– Sell non-participating policies.
– If you want to pay the same premium each year, choose a non-
participating policy with its guaranteed premiums.

1. Mutual life insurance companies

– Owned by the policyholders.
– 5% of policies are from this type of company.
– With participating policies the premiums are higher than non-
participating policies. However, part of the premium is refunded to
the policyholders annually. This is called the policy dividend.

Type of Life Insurance Policies

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  TERM LIFE INSURANCE
➢ Protection for a specified period of time.
➢ If you stop paying premiums, coverage stops.
➢ A renewability option means that at the end of the term you can renew
the policy without having a physical.
➢ Conversion option allows you to exchange your term policy to a whole
life policy without having a physical.
➢ With decreasing term insurance your premium stays the same, but the
amount of coverage decreases as you age.

A term insurance policy is a pure risk cover for a specified period of time.
What this means is that the sum assured is payable only if the policyholder dies
within the policy term. For instance, if a person buys Rs 2 lakh policy for 15-years,
his family is entitled to the money if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any
payment; the insurance company keeps the entire premium paid during the 15-year
period.

So, there is no element of savings or investment in such a policy. It is a 100 per

cent risk cover. It simply means that a person pays a certain premium to protect his
family against his sudden death. He forfeits the amount if he outlives the period of
the policy. This explains why the Term Insurance Policy comes at the lowest cost.

 WHOLE LIFE INSURANCE (Straight Life)

➢ You pay a premium as long as you live.
➢ Amount of premium depends on your age when you start the policy.
➢ Provides death benefits and accumulates a cash value.
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 ➢ You can borrow against the cash value or draw it out at retirement.
➢ Look carefully at the rate of return your money earns.

There are certain choices within whole life insurance:

1) Traditional whole life insurance policy- gives you a guaranteed minimum rate
of return on your cash value portion.

2) Interest-sensitive whole life insurance policy- gives a variable rate on your

cash value portion, similar to an adjustable rate mortgage. With this you can
have more flexibility with your life insurance policy such as increasing your
death benefit without raising your premiums depending on the economy and the
rate of return on your cash value portion.

3) Single-premium- is for someone who has a large sum of money and would like
to purchase a policy up front. Like other whole life insurance options, single-
premium whole life insurance accrues cash value and has the same tax shelter
on returns.

 ENDOWMENT INSURANCE POLICIES

Pay a sum or income to you if you live to a certain age. If you die before the
specified age, the death benefit is paid to the person named as the
beneficiary.

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Provides a permanent sum of money (called a face amount or death benefit) to
your beneficiaries- even if you die before the maturity date of the policy. OR it will
pay you if you live when the policy pays out (endows).

This is similar to whole life insurance, except: if used before the endowment
period, the life insurance ends and the face value becomes a living benefit.

Another area where they differ is with the period of time when it matures. A whole
life insurance policy is generally set up to mature at age 100. But with an
endowment you can pay the premiums well before the final date, for a limited
period of time, or in a lump sum; and the cash value builds up faster since the
funds are intended to be used while the insured is alive. But the premium is
considerably more expensive than with an ordinary straight life insurance policy.

The sooner a policy endows, the higher the premium will be. The endowment
period can be set for ten years, twenty years or to age 65.

 ULIP LIFE INSURANCE

The Unit Trust of India, in collaboration with Life Insurance Corporation and the
General Insurance Corporation (GIC) of India has formulated the ULIP, which is
an insurance plan with:
➢ Security of capital
➢ High returns
➢ Free accident cover
➢ Life insurance cover
➢ Tax rebate
➢ Maturity bonus

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 Any resident of India who is above 18 years of age can possess ULIP. People
who are less than 55 years and 6 months of age can join the plan for 10 years
and those less than 50 years and 6 months can join for 15 years. In this plan
premium is payable half yearly. This amount is used to pay a small premium to
the Life Insurance Corporation and the rest is invested in units which earns an
income and is re-invested every year. The extent of life insurance cover is equal
to the target amount secured under the plan.
It wasn’t too long back when the good old endowment plan was the preferred way
to insure oneself against an eventuality and to set aside some savings to meet one’s
financial objectives. The traditional endowment policies were investing funds
mainly in fixed interest Government securities and other safe investments to ensure
the safety of capital. Thus the traditional emphasis was always on security of
capital rather than yield. However, with the inflationary trend witnessed all over
the world, it was observed that savings through life insurance were becoming
unattractive and not meeting the aspirations of the policyholders.
The policyholder found that the sum assured guaranteed on maturity had really
depreciated in real value because of the depreciation in the value of money. The
investor was no longer content with the so called security of capital provided under
a policy of life insurance and started showing a preference for higher rate of return
on his investments as also for capital appreciation. It was, therefore found
necessary for the insurance companies to think of a method whereby the
expectation of the policyholders could be satisfied. The object was to provide a
hedge against the inflation through a contract of insurance. Decline of assured
return endowment plans and opening of the insurance sector saw the advent of
ULIPs on the domestic insurance horizon. Today, the Indian life insurance market
is riding high on the unit linked insurance plans.

Features:

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Unit linked insurance plans (ULIPs) are insurance plans that combine the benefit
of investment with insurance. They give the investor an option to put a part of their
premium in various investment portfolios and derive the benefits depending upon
the performance of the funds chosen by them. ULIPs were launched at an
opportune time when stock markets had just taken off. Being market- linked, they
were major beneficiaries of the secular rise in stock markets.
ULIPs have gained high acceptance due to the attractive features they offer. These
include:

1. Flexibility
➢ Flexibility to choose Sum Assured.
➢ Flexibility to choose premium amount.
➢ Option to change level of Premium even after the plan has started (Top up
facility).
➢ Flexibility to change asset allocation by switching between funds.

2. Transparency
➢ Changes in the plan & net amount invested are known to the customer.
➢ Convenience of tracking one’s investment performance on a daily basis.
3. Liquidity
➢ Option to withdraw money after few years (comfort required in case of
exigency).
➢ Low minimum tenure.
➢ Partial / Systematic withdrawal allowed

4. Fund Options
➢ A choice of funds (ranging from equity, debt, cash or a combination).
➢ Option to choose fund mix based on desired asset allocation.

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Traditionally, endowment plans have invested in government securities, corporate
bonds and the money market. ULIPs however, have a broader choice. They invest
across the board in stocks, government securities, corporate bonds and money
market instruments. Of course, within a ULIP there are options wherein equity
investments are capped. The common types of funds available in ULIPs are Bond
Fund, Protector Fund, Secure Fund, Balanced Fund, Growth Fund, Index Fund,
and Enhancer Fund. Depending on one’s risk appetite one can choose the fund.
However the investment risk is borne by the investor.
The common type of charges, fees and deductions in ULIPs are Premium
allocation charges, Mortality charges, Fund management charges,
Policy/administration charges, Surrender charges, Fund switching charges and
Service tax.

Insurance companies are required to declare the NAV of various ULIPs on a daily
basis. The movement of NAV enables the policy holder to assess the performance
of his investment and accordingly make intervention in the form of switches,
withdrawal and top-ups. After opening up of the insurance sector, Unit-linked
insurance policies (ULIPs) have become increasingly popular.
Analysis of figures for the last three years indicates the growth pattern of unit
linked business.

TRENDS IN LIFE INSURANCE BUSINESS—UNIT LINKED INSURANCE PLANS

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 Unit Linked Business (%) Non-linked Business (%)

2005-06 2006-07 2007-08 2005-06 2006-07 2007-08

Private 82.30 88.75 90.33 17.70 11.25 9.67

LIC 29.76 46.31 62.31 70.24 53.69 37.69
Industry 41.77 56.91 70.30 58.23 43.09 29.70

Few Other Types of Insurance Policies

 Limited payment policy:
➢ Pay premiums for a stipulated period, usually 20 or 30 years, or until you
reach a specified age (65).
➢ Your policy then becomes “paid up” and you remain insured for life.

 Variable life policy:

➢ Minimum death benefit guaranteed, but the death benefit can be greater
than the minimum depending on earnings of the dollars invested in a
separate stock or bond fund.

 Adjustable life policy:

➢ A whole life insurance policy, but you can change your policy as your
needs change. For example, you can change your premium payments or
the period of coverage.

 Universal life - gives you more direct control:

➢ Let’s you pay premiums at any time in almost any amount. The amount
of insurance can be changed more easily than a traditional policy.

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 ➢ The increase in the cash value of the policy reflects the interest earned on
short-term investments.

 Group life insurance:

➢ Term insurance.
➢ Often provided by an employer.
➢ No physical is required.

 Credit life insurance:

➢ Debts such as car loan are paid off if you die.
➢ Also protects lenders.
➢ Expensive protection.

REGULATORY ACTS
A number of acts govern the insurance sector -

➢ The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of insurance
to provide strict state control over insurance business.

➢ Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January
1956, that life insurance in India was completely nationalized, through a

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Government ordinance. The Life Insurance Corporation Act, 1956 effective from
1.9.1956 was enacted in the same year to, form Life Insurance Corporation after
nationalization of the 245 companies (both Indian and foreign origin) into one
entity.

➢ General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act 1972 was enacted to
nationalize the 100 odd general insurance companies and subsequently merging
them into four companies. All the companies were amalgamated into National
Insurance, New India Assurance, Oriental Insurance, United India Insurance.

➢ Insurance Regulatory and Development Authority Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance
sector. The Govt. of India, then introduced the Insurance Regulatory and
Development Authority Act in 1999, thereby de-regulating the insurance sector
and allowing private companies into the insurance. Further, foreign investment was
also allowed and capped at 26% holding in the Indian insurance companies.

Regulations for Indian Insurers:

To protect the interests of holder of insurance policy and to regulate, promote and
ensure orderly growth of the insurance industry Insurance Regulatory and
Development Authority (IRDA) was established. Under the new dispensation
Indian insurance companies in private sector were permitted to operate in India
with the following conditions:

➢ Company is formed and registered under the Companies Act, 1956

➢ The aggregate holdings of equity shares by a foreign company, either by itself
or through its subsidiary companies or its nominees, do not exceed 26%, paid up
equity capital of such Indian insurance company

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➢ The company's sole purpose is to carry on life insurance business or general
insurance business or reinsurance business.
➢ The minimum paid up equity capital for life or general insurance business is
100crores
➢ The minimum paid up equity capital for carrying on reinsurance business has
been prescribed as 200crores

ROLE & FUNCTIONS OF IRDA:

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of
IRDA.
(1) Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure orderly
growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section

(1), the powers and functions of the Authority shall include,

(A) Issue to the applicant a certificate of registration, renews, modify, withdraw,

suspend or cancel such registration

(B) Protection of the interests of the policy holders in matters concerning assigning
of policy, nomination by policy holders, insurable interest, settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts of
insurance

(C) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents

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(D) Specifying the code of conduct for surveyors and loss assessors

(E) Promoting efficiency in the conduct of insurance business

(F) Promoting and regulating professional organizations connected with the

insurance and re-insurance business

(G) Levying fees and other charges for carrying out the purposes of this Act

(H) Calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organizations connected with the insurance business;

(I) Control and regulation of the rates, advantages, terms and conditions that may
be offered by insurers in respect of general insurance business not so controlled
and regulated by the Tariff Advisory Committee under section 64U of the
Insurance Act, 1938 (4 of 1938)

(J) Specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries

(K) Regulating investment of funds by insurance companies;

(L) Regulating maintenance of margin of solvency;

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(M) Adjudication of disputes between insurers and intermediaries or insurance
intermediaries

(N) Supervising the functioning of the Tariff Advisory Committee

(O) Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations referred to in
clause (f)

(P) Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector

(Q) Exercising such other powers as may be prescribed.

Life Insurance Contract Provisions:

➢ Naming your beneficiary, and contingent beneficiaries.

➢ Incontestability clause says that after the policy has been in force for a
specified period, the company can’t dispute its validity for any reason.
➢ Length of grace period for late payments.
➢ Reinstatement of a lapsed policy if it has not been turned in for cash.
➢ No forfeiture allows you to keep accrued benefits if you drop the policy.
➢ Misstatement of age provision.
➢ Suicide clause during first two years.
➢ Policy loan provision to borrow against cash value.
➢ Automatic premium loans.

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 ➢ Uses the accumulated cash value to pay the premium if you do not pay it
during the grace period.
➢ A rider to a policy modifies the coverage by adding or excluding
conditions or altering benefits.
➢ Waiver of premium disability benefit.
➢ Accidental death benefit - double indemnity.
➢ Guaranteed insurability option.
➢ Cost of living protection.
➢ Accelerated benefits, also called living benefits, pay to those who are
terminally ill before they die.
➢ Second-to-die option, also called survivorship, insures two lives.

Life Insurance in India

Life Insurance in India was nationalized by incorporating Life Insurance

Corporation (LIC) in 1956. All private life insurance companies at that time were
taken over by LIC.
In 1993 the Government of Republic of India appointed RN Malhotra
Committee to lay down a road map for privatization of the life insurance sector.
While the committee submitted its report in 1994, it took another six years
before the enabling legislation was passed in the year 2000, legislation amending
the Insurance Act of 1938 and legislating the Insurance Regulatory and
Development Authority Act of 2000. The same year that the newly appointed
insurance regulator - Insurance Regulatory and Development Authority IRDA –
started issuing licenses to private life insurers.

31
LIST OF INSURANCE COMPANIES IN INDIA:
Following is the list of all LIFE & GENERAL INSURANCE COMPANIES
granted permission by IRDA.

LIFE INSURERS Websites

Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
Reliance Life Insurance Company Limited. www.reliancelife.com
Aviva Life Insurance Co. India Pvt. Ltd. www.avivaindia.com
Sahara India Life Insurance Co, Ltd. www.saharalife.com
Shriram Life Insurance Co, Ltd. www.shriramlife.com
Bharti AXA Life Insurance Company Ltd www.bharti-axalife.com
Future Generali Life Insurance Company Ltd. www.futuregenerli.in
IDBI Fortis Life Insurance Company Ltd. www.idbifortis.com
Canara HSBC Oriental Bank of Commerce Life
Insurance Co. Ltd www.canarahsbclife.com

AEGON Religare Life Insurance Company

www.aegonreligare.com
Limited
Star Union Dai-ichi Life Insurance Comp. Ltd. www.sudlife.in

32
 DLF Pramerica Life Insurance Co. Ltd www.dlfpramerica.com

GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com

People Involved in the Insurance Policy Sale

The People Involved In these processes are:-

1. Actuarial - An actuary is a business professional who deals with the

financial impact of risk and uncertainty. They are The People who decide the
premium to be paid on a policy based on various factors like demographics
and others. They Constitute .5% of the total people involved.

2. Underwriters – They are the people involved in the checking of the data
mentioned by an individual in the policy. They also conduct a health check.

33
 After this they offer various policies based on the outcomes of these checks.
They constitute 1.5% of the total people in the process.

3. Sales People – The Major chunk of people lies in the sales. They are the
people who have a direct contact with the actual customer and try to
convince them to purchase a policy explaining the various feature of the
policy. They constitute the most, which is 98% of the total people involved
in the process.

Various Plans at Life Insurance

Protection Plans:

Life is full of surprises. Unexpected events that strike without warning can disrupt
the smooth rhythm of life. You must be prepared at all times. As the primary
earning member, you need to make sure that your family is never lacking in
anything even if you are taken away from them forever. Do your best today to
ensure that your family can always enjoy a comfortable lifestyle. In double income
families, both spouses should get adequate life covers especially if there are
dependent children involved. We have plans that guarantee maximum protection at
a low cost.

Children Plans:

Your parenting is perfect but is your planning adequate? Are you thinking beyond
the immediate to the future, about higher education and professional courses, in
India and abroad? Many children are keen to pursue unconventional careers. Are
you in tune with their aspirations and passions? As parents you would never let
money come in the way of your children and the fulfillment of their true potential.

34
Our plans will help build the corpus that allows your children to dream big and
soar high.

Investment Plans:

Building a nest egg is about aggregating surplus amounts regularly to allow them
to grow into a sizeable sum. Investments should be aligned to specific, long-term
goals. Luxury car, foreign holiday or dream house, create your own wish list and
make it come true. Your dreams are in your hands. Every move that you make
today will bring you a step closer to your goals. Our Investment Plans offer the
dual benefit of protection and market-linked returns with the flexibility to choose
the premium and determine the market exposure.

Retirement Plans:

Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You will
never miss your salary cheque or be constrained by rising inflation. Even as you
work hard to make a better today, it is up to you to create a superior tomorrow. If
you want to sustain your current lifestyle even after you stop working, make that
money work for you. Our Retirement Plans will keep you comfortable and content,
and let you live the life you deserve.

Health Plans:

Do you know the cost of healthcare has climbed faster than inflation? Medical
costs can be a big drain on finances. A medical crisis can strike anyone, anytime
and may even force an individual to dip into savings to meet these sudden and
steep costs. Such an eventuality could delay or destroy a cherished financial goal.
No wonder, health is wealth. The health of every member of the family is precious
and you need to safeguard it as a priority. Use our Health Plans to make sure your
family stays fit and fine.

35
Savings Plans:

Is your money working for you? Clearly not, if it is lying idle in multiple bank
accounts. We will instill the discipline of investment through force of habit as you
park your money for protection and growth to meet your needs over your lifetime.

Choose a plan that matches your needs and budget. Our dual benefit saving plans
recognize your need for all round financial protection, and include a life cover that
will protect you till the last day.

Emerging Market Plans:

We are conscious of our social responsibility to serve the financially vulnerable

sections of society. We have created specialized Emerging Market Plans to meet
the particular needs of customers in rural areas. The ticket size has been kept low,
the premiums are affordable and the procedures are simple. Customers in rural
areas can now find a plan to meet their unique requirements.

Strategic Products Plans:

Most people desire a carefree life. They want to be happy and comfortable at all
times. But needs keep evolving and you must always be one step ahead. Our
Strategic Products Plans will meet your special needs and are available through
additional distribution channels. You can choose a plan to meet the planned events
and unforeseen incidents in your life.

Group Plans:

People are the most valuable asset of any organization. Organizations have to
innovate newer forms of compensation to retain talented employees. Pay and perks
are all very fine but an organization needs to show employees that it cares.

36
Ensuring the financial wellbeing of employees and their families will earn an
organization their enduring trust and loyalty. Our Group Plans offer a three-in-one
advantage, as they are a powerful tool for motivation, reward and retention, in
these times of high attrition.

PAYMENT OPTIONS
Premium Payment Options Customers - Policy Renewals Options

Renewing an insurance policy has never been so easy. Choose from any of the 10
options listed below to pay your premium. We will send the premium receipt to
your mailing address.

The Ways of
making
Premium
Payments

SWOT ANALYSIS
The SWOT analysis of Insurance sector is as follows:-
1. Strength-Very good policies of life coverage.
2. Weaknesses:-Unable to convince the people about the products. There are not
much advisors for the insurance companies
3. Opportunities:-Untapped rural sector and small towns

37
4. Threats:-growing competition from larger MNC's.

RESEARCH METHODOLOGY
Research is an art of scientific and systematic search of pertinent information on a
specific topic. In fact research is an art of scientific investigation. The advance
learner’s dictionary of current English lay down the meaning of research as “a
careful investigation or inquiry especially through search for new facts in any
branch of knowledge. Redman and Mory define research as “systematized effort to

38
gain nee knowledge”. Some people consider research as a movement, a movement
from the known to unknown. It is actually a voyage of discovery.

RESEARCH DESIGN:

Research type applied over here is Exploratory Research because the main purpose
of such studies is that of formulating a problem for more precise investigation the
working hypothesis from an operational point of view. The major emphasis in such
studies is on the discovery of ideas and insights.

Data Collection Method:

The task of data collection begins after a research problem has been defined and
research design/plan chalked out. There are two types of data collection

➢ Primary Data
➢ Secondary Data

Primary Data:

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

Secondary data:

39
Secondary data are those have already been collected by someone else and which
have already been passed through the statistical process.

For the purpose of our study I have used both primary data and secondary data.
This method of data collection is quite popular, particularly in case of big
enquiries, as the customer himself/herself becomes an advisor so his /her point of
view is must this can be obtained only with primary data

In secondary data I have used Internet, broachers of the company, company’s

website magazines, and newspaper. Reports and publications of various
associations connected with industry.

Sample area and size:

The area of sampling is Delhi & Ghaziabad. The sample size is 100 which include
the Agent & Advisors of Sundaram Finance Ltd.

ANALYSIS AND INTERPRETATION

The primary data collected through the questionnaire from government

officials were compiled using spss package and the analysis are presented
below.

TABLE 4.1
RESPONDENTS PROFILE OF AGE

40
 AGE(In years) Frequency/percentage
25-35 4
35-45 25
45-55 66
More than 55 5
Total 100
(Source: Primary Data)
Table 4.1 shows, among the 100 sample respondents, the majority of 66% of
the respondents fall in the age group of 45-55 years. Another 25% fall in the
category of 35-45 years. There are 5% of the respondents who fall in the age
group of above 55 years, while the remaining 4% are in the age group of 25-
35 years. Thus, from the analysis it can be concluded that the majority (66%)
of respondents fall in the age group of 45-55.

TABLE 4.2
GENDER PROFILE OF RESPONDENT
Gender Frequency/percentage
Male 73
Female 27
Total 100
(Source: Primary Data)
Table 4.2 shows, the 100 sample respondents, the majority of 73% of the
respondents are Male, while the remaining 27% are female. Thus, from the
analysis it can be concluded that the male respondents constituted the major
position (73%)

41
 TABLE 4.3
MARITAL STATUS OF RESPONDENTS
Marital Status Frequency/ Percentage
Married 99
Unmarried 1
Total 100
(Source: Primary Data)
Table 4.5 shows, among the 100 sample respondents, the majority (99%) of
the respondents are married while the remaining 1% is unmarried among the
respondents. Thus, from the analysis it can be concluded that the majority
(99%) of respondents who are married.

TABLE 4.5
ANNUAL INCOME LEVEL OF RESPONDENTS
Frequency/ percentage
Annual income
Less Than 180000 27
180000-300000 50
300000-420000 14
More than 420000 9
Total 100
(Source: Primary Data)
Table 4.5 shows, out of 100 sample respondents, the majority 50% of the
respondents earn annual income between 180000-300000.Another 27% of
respondents are less than 180000. There are 14% of the respondents who
earn between 300000-420000, the remaining 9% among the respondents
earn above 420000. Thus, from the analysis it can be concluded that the

42
respondents who earn between 180000-300000 constituted the major
position (50%).

TABLE 4.6
AWARENESS ABOUT LIFE INSURANCE POLICIES
Awareness Frequency/ percentage
Yes 100
No 0
Total 100
(Source: Primary Data)
As it could be seen in table 4.6 among the 100 sample respondent all of them
were aware of the life insurance policies, (i.e.) 100%. Thus from the analysis
it can be concluded that 100% of respondents are aware of the life insurance
policies.

43
 TABLE 4.7

SOURCE YES NO
Agent 85 15
Employer 15 85
Press 24 76
Relatives 10 90
T.V 37 63
Internet 10 90
Bankers 21 79
Brokers 4 96
Friends 23 77
Mobile 3 97
SOURCE OF INFORMATION

44
 (Source: Primary Data)
As it can be seen in table 4.7, among the 100 sample respondent, it is clear
that most of the respondents came to know about the insurance through
agents (85%) and the second highest source are the T.V (37%). None of the
respondents have come to know about the insurance through mobile. Thus,
from the analysis it can be concluded that 85% of the respondents came to
know about insurance polices through agents.

FIGURE 4.1
CHART SHOWING SOURCE OF INFORMATION

45
 100
Rows
YES
NO

75

respondent

50

25

0
A GE NT Cou nt RELA TIVES Co unt BANKE RS Count M OBILE Co unt
EMP LO YER Co unt T V Cou nt B RO KERS Coun t
P RESS Cou nt INT E RNE T Cou nt FRIE NDS Count

source

TABLE 4.8
AWARENESS ABOUT THE INSURANCE COMPANY

46
 Company name Yes No
LIC 100 0
Birla 26 74
HDFC 75 25
Bajaj 27 73
ICICI 55 45
SBI 55 45
Sriram 18 82
Kotak 6 94
Aviva 3 97
Reliance 12 88
Tata AIG 19 81
Metlife 0 100
Max Newyork 5 95
Sahara 3 97
Barathi 0 100
ING Vysya 16 84
(Source: Primary Data)

As it can be seen in tab le 4.8 among the 100 sample respondent, it is clear
that 100% of the respondents are aware of LIC. And among the private
players HDFC has ranked first (75%) and followed by ICICI (55%), BAJAJ
(27%), BIRLA (26%). None of the respondent has come to know about

47
Metlife and Max Barathi AXA life insurance. Thus most of the respondents
are aware of LIC and in the private sector HDFC Standard Life insurance.

FIGURE
AWARENESS OF INSURANCE COMPANY

O THER Rows
YES
NO
S HRIRA M LIFE

S BI LIFE
compan ies

ICICI PRUDE NT IAL

B AJA J ALL IA NZ

HDFC S T ANDARD L IFE

B IRLA SUNLIFE

LIC

0 25 50 75 100

respondent

48
 TABLE 4.9

Purpose Yes No
tax saving 57 43
investment 38 62
life risk 46 54
regular returns 22 78
health maintenance 19 81
retirement benefits 6 94
Others 1 99
PURPOSE OF TAKING POLICIES

(Source: Primary Data)

As it can be seen in table 4.9 among the 100 sample respondents, 57% have
opted Tax saving as the major purpose of taking life insurance policies and
Life risk coverage, Investment are also the purpose of taking life insurance

49
policies. Thus from the analysis it can be concluded that most of the
respondents are preferred to take policies for the purpose of Tax Savings.

FIGURE 4.3
PURPOSE OF TAKING POLICIES

O THERS Co u nt Rows
YES
NO
RET IRE ME NT B ENE FIT S Co un t

HEA L TH MA INT ANA NCE Co unt

PURPOSE

REG UL A R RET URNS Co un t

L IFE RIS K COV E RA GE Cou n t

INV E ST ME NT Cou n t

T AX SA V ING Co un t

0 25 50 75 1 00

RESPONDENT

50
 TABLE 4.10
AWARENESS OF THE POLICIES

51
 Policies Name Yes No
Endowment 83 17
Whole life 41 59
Money back 84 16
With profit 24 76
Joint life 30 70
Children's 41 59
Convertible 2 98
Without profit 2 98
Variable Insurance 0 100
Annuity policy 7 93
Handicapped 2 98
policy 24 76
Retirement policy 36 66
Salary saving 18 82
scheme
ULIP

(Source: Primary Data)

Table 4.10, shows among the 100 sample respondents, 84% of the
respondent are preferred money back policy and 83% of respondent are

52
preferred endowment policies. None of the respondents are preferred to
Variable insurance, without profit policy and handicapped policy. Thus from
the analysis it can be concluded that most of the respondents are preferred to
take money back and endowment policies.

FIGURE 4.4
AWARENESS OF THE POLICIES

O THERS Coun t Rows

YES
NO
CHIL DRE N'S PO LICY Co un t

JOINT L IFE PO L ICY Co u nt

POLICIES

WIT H P ROFIT P OL ICY Cou n t

M ONEY BA CK P OL ICY Co u n t

WHO LE L IFE P O LICY Co un t

E NDOWME NT P OL ICY Cou n t

0 25 50 75

RESPONDENT

TABLE 4.12
PREFERRED PREMIUM PERIOD

53
 Period Frequency/
Percentage
Annual 21
Half yearly 16
Quarterly 15
Monthly 48
Total 100
(Source: Primary Data)
Table 4.12 shows, among the 100 sample respondents, 48% of the
respondents preferred monthly premium payment period and 21% of the
respondents preferred annual premium payment period. Thus from the
analysis it can be concluded that 48% of the respondents preferred monthly
premium payment per annum.

FIGURE 4.6
PREFERRED PREMIUM PERIOD

54
 50

40

30

48
O
A
D
N
R
P
S
E
T

20

10 21

16 15

0
ANNUAL HALFYEARLY QUARTERLY MONTHLY
PREMIUM PAYMENT PERIOD

TABLE 4.13

55
 PREFERRED PREMIUM PAYMENT

Mode Frequency/percentage
Salary deduction 58
Through agent 11
By cash 7
By cheque 18
Online payment 6
Total 100
(Source: Primary Data)
Table 4.13 shows, 4.7 among the 100 sample respondents, 58% of the
respondents preferred Salary Deduction as mode of payment and 18% of the
respondents preferred cheque as the mode payment. Thus from the analysis
it can be concluded that 58% of the respondents preferred Salary Deduction
as mode of payment.

FIGURE 4.7
PREFERRED PREMIUM PAYMENT

56
 60

50

40

30
58
O
R
A
D
N
E
P
S
T

20

10
18

11
7 6

0
SALARY THROUGH BY CASH BY CHEQUE ONLINE
DEDUCTION AGENT PAYMENT
MODE OF PAYMENT

TABLE 4.14

57
 PREFERRED DELIVERY OF POLICY DOCUMENTS

Policy Documents Frequency/

Percentage
Online 3
By post 22
Through agent 43
Personally at insurance company's 32
Total 100
(Source: Primary Data)
Table 4.14 shows, among the 100 sample respondents, 43% of the respondents
preferred to get the documents through agent and 32% of the respondents
preferred to get the document from the insurance office itself. Thus, from the
analysis it can be concluded that 43% of the respondents preferred to get the
documents through agent.

FIGURE 4.8
PREFERRED DELIVERY OF POLICY DOCUMENTS

58
 50

40

30

43
O
A
D
N
R
P
S
E

20
T

32

22
10

3
0
ONLINE BY POST THROUGH AGENT PERSONALLY AT
INSURANCE
COMAPNY'S
OFFICE
MODE OF DELIVERY

TABLE 4.15

59
 PREFERRED MODE OF
SETTELEMENT

Mode Frequency/
Percentage
By cash 19
By cheque 75
On account transfer 6
Total 100

(Source: Primary Data)

Table 4.15 shows, among the 100 sample respondents, 75% of the
respondents preferred to get the claims settlement through by cheque and
19% of the respondents preferred to get the claims settlement through cash.
Thus from the analysis it can be concluded that 75% of the respondents
preferred to get the claim settlement through cheque

FIGURE 4.9
THE PREFERRED MODE OF SETTELEMENT

60
 80

60

40
75
O
A
D
N
R
P
S
E
T

20

19

6
0
BY CASH BY CHEQUE ON ACCOUNT TRANSFER
MODE OF SETTLEMENT

PREFERRED INSURANCE COMPANY

Sector Frequency
Public sector 75
Private sector 25
Total 100
(Source: Primary Data)

Table 4.17 shows, among the 100 sample respondent 75% of respondents are
preferred public sector and 25% of the respondents are preferred private

61
sector. Thus from the analysis it can be concluded that 75% of respondents
are preferred public sector.

FIGURE 4.11

PREFERRED INSURANCE COMPANY

PREFERRED
SECTOR IN
INSURANCE
COMPANY
PUBLIC SECTOR
PRIVATE SECTOR

25

75

62
 TABLE 4.20

PREFERENCE FOR FUTURE POLICY

Particulars No. of Respondents

Yes 34
No 66
Total 100
(Source: Primary Data)

Table 4.20 shows, among the 100 sample respondent 66% of respondents are
preferred to take policy in future and 34% of the respondents are not
preferred to take policies in future. Thus from the analysis it can be
concluded that 66% of respondents are preferred to take policy in future.

63
 FIGURE 4.13

PREFERENCE FOR FUTURE POLICY

PREFERENCE
FOR FUTURE
POLICY
YES
NO

34

66

64
 TABLE 4.21

INTENDED TYPE OF POLICY IN FUTURE

Type of policy Respondent

Endowment policy 11
Joint life policy 8
Whole life policy 4
Children's policy 28
Money back policy 13
ULIP 2
Total 66
(Source: Primary Data)

As it can be seen in chart 4.21 among the 66 sample respondents, 28

respondents are preferred to take Children's policy and 13 respondents are
preferred to take Money Back policy. Thus from the analysis it can be
concluded that 28 respondents preferred to take Children's policy.

65
 TABLE 4.22

PREFERRED INSURANCE COMPANY IN

FUTURE

Company Respondent
LIC 55
HDFC 9
BAJAJ 1
ICICI 1
Total 66
(Source: Primary Data)

Table 4.22 shows, among the 66 sample respondents, 55 respondents are

preferred to take LIC as there company and 9 respondents are preferred to
take HDFC as there company. Thus from the analysis it can be concluded
that 55 of the respondents preferred to take LIC as there company and
among the private company HDFC as their comp.

TABLE 4.23

HOLDING OF INSURANCE POLICY

Particulars Holding Policies

Yes 98
No 2
Total 100
(Source: Primary Data)

66
As it could be seen in Table 4.23 among the 100 sample respondent 98% of
respondents are currently having policies and 2% of the respondents are not
having policies. Thus from the analysis it can be concluded that 98% of
respondents are currently having policies.

FIGURE 4.14

HOLDING OF INSURANCE POLICY

67
 CURRENT POLICY
YES
NO

98

TABLE 4.24

CURRENT INSURANCE COMPANY

Current company Respondent

LIC 64
LIC AND HDFC 27
LIC AND ICICI 4

68
 HDFC 1
OTHERS 2
Total 98
(Source: Primary Data)

Table 4.24 among the 98 sample respondents, 64 respondents is having

policies in LIC and 27 of respondents are having policies in both LIC and
HDFC and 4 respondents are having in HDFC. Thus from the analysis it can
be concluded that 64 of the respondents are having policies in LIC and
HDFC is in the second place when compared to others private players.

TABLE 4.25

NO. OF POLICIES

No. of Policies Respondent

1 6
2 45

69
 3 36
4 11
Total 98
(Source: Primary Data)

Table 4.25 shows, among the 98 sample respondents, 45 respondents are

having two policies and 36 of respondents are having three policies. Thus
from the analysis it can be concluded that 45 of the respondents having two
policies.

TABLE 4.26

CURRENT TYPE OF POLICY

Policies Yes No
Endowment 57 41
70
 Joint Life 28 70
Whole Life 14 84
Children 50 48
Money Back 54 44
ULIP 24 74
(Source: Primary Data)

Table 4.26 shows, among the 98 sample respondents, 57 respondents are

having Endowment policies and 54 respondents are having Money Back
policies and 50 respondents are having Children's policy. Thus from the
analysis it can be concluded that 57 respondents having Endowment policy.

FIGURE 4.15

CURRENT TYPE OF POLICY

71
 Rows
YES
75
NO
N IL

RESPONDANT
50

25

0
E NDOWME NT P OL ICY Cou n t CHILDRE N'S PO LICY Co un t
JOINT L IFE POL ICY Co u nt M ONEY BA CK P OL ICY Cou n t
WHO LE L IFE P O LICY Co un
UNIT
t LINKE D INSURANCE P OL ICY Co u nt

POLICIES

TABLE 4.27

PRESENT PURPOSE OF TAKING POLICIES

Purpose Yes No
Tax saving 55 42
Investment 39 59
Life risk 36 62
Regular returns 30 68
Health maintain 18 80
Retirement benefits 8 89
(Source: Primary Data)

72
Tables 4.27 among the 98 sample respondents, 59 respondents are having
policies for the purpose of tax savings and 39 respondents are having policies
for the purpose of Investment. Thus from the analysis it can be concluded that
59 respondents are having policies for the purpose of tax savings.

FIGURE 4.16

PRESENT PURPOSE OF TAKING

POLICIES

73
 Rows
YES
NO
75
N IL
RESPONDANT

50

25

0
T AX SA V ING Co un t REGUL A R RET URNS Co un t
INV E ST ME NT Cou n t HEA L TH MA INT ANA NCE Co un t
L IFE RIS K COV E RA GE Cou n t RET IRE ME NT B ENE FIT S Co un t

PURPOSE

74
 TABLE 4.28

CURRENT PREMIUM PAYMENT PERIOD

Period Respondent
Annual 13
Half yearly 13
Quarterly 20
Monthly 51
One time 1
Total 98
(Source: Primary Data)

Table 4.28 shows, among the 98 sample respondents, 51 respondents are

paying monthly premium payment and 30 respondents are paying quarterly
premium payment. Thus from the analysis it can be concluded that 51
respondents are paying monthly premium payment.

75
 TABLE 4.29

CURRENT PREMIUM AMOUNT PAID

ANNUALLY

Amount Respondent
< 3000 23
3000-5000 34
5000-7000 22
>9000 19
Total 98
(Source: Primary Data)

Table 4.29 shows, among the 98 sample respondents, 34 respondent's annual

premium payment is in between Rs 3000-5000 and 23 respondent's annual
premium payment is below Rs 3000. Thus from the analysis it can be
concluded that 34 respondent's annual premium payment is in between Rs
3000-5000.

76
 Limitations of Study
➢ Time limitation
➢ Research has been done only in Delhi and NCR region.
➢ Companies did not disclose their secrets data and strategies.
➢ Possibility of Error in data collection.
➢ Possibility of Error in analysis of data due to small sample size.
➢ Respondents’ error.
➢ Limited resources.

77
 CONCLUSION
Life insurance is also now being regarded as a versatile financial planning
tool. Research indicates that Indians have four basic financial needs during their
life asset accumulation (such as buying a house or car), protecting their family,
securing their children’s education, and provision for their retirement.

Insurance sector is one of the most booming sectors in India. The penetration
level of insurance in India is only 2.3% when compared to 9-15% in the developed
nations. There is a huge market for the Insurance products in the future in India.

The project was very useful to the researcher to understand the life insurance
business.

RECOMMENDATIONS

78
In the modernized well advanced hi-tech approach to the customer every possible
facilities and effort to build up the confidence of the rising policy holders towards.
Insurance companies, to complete one another nothing is left to recommend. But
some recommendations that are intensely felt and highly required for insures to
sustain in the market. These are as follows:
a) More and more transparency should be ascertained between insurers and
policy holders.
b) Particularly, in the emerging boom in the insurance company, every
insurance
company should be customer centered, and well versed in the handling of
problem and grievances of the policy holders.
c) Each and Every product launched by the Insurance Company should be in
favour of increasing need of policy holders.

IRDA should be more and more responsible to the insurance sector by

determining some standard. It should be mandatory to every insurer to make more
and more responsible and responsive to the policy holders so that comprehensive
understanding may be developed among policy holders. It may be beneficial on
both sides.

APPENDIX

QUESTIONNAIRE

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Ques1. Do you have any Life Insurance policy?
YES ( ) NO ( )
Ques2. Are you aware about Life insurance product or will prefer to purchase the
Life insurance product?
LIC ( ) ICICI ( )
SBI Life ( ) HDFC ( )
TATA AIG ( ) ANY OTHER ( )
Ques3. In which sector do you invest?
Public sector ( ) Private sector ( )
Ques4. Term of your insurance policy?
Less than 5 years ( ) 5-10 years ( )
10-20 years ( ) Any other ( )
Ques5. What do you think are the benefits of Insurance policy?
Cover future uncertainties ( ) Tax savings ( )
Investment ( ) Risk cover investment ( )
Ques6. Which feature of life insurance product will you consider while buying?
Money back policy ( ) Larger risk coverage ( )
Low premium ( ) Company’s creditability ( )
Easy access of agent ( )
Ques7. Are you satisfied with your life insurance policy?
Yes ( ) No ( )

Ques8. According to you what is the right age of buying insurance?

Less than 25 of age ( ) 25-35 of age ( )
35-45 of age ( ) More than 45 of age ( )
Ques9. How do you come to know about these companies product?

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 Newspaper ( ) Agent ( )
Advertisement ( ) Mouth of spread ( )

THANK YOU

NAME …………………………………………………………………….
AGE ......…………..
ADDRESS …………………………………………………………………….
CONTACT NO. …………………………………………………………………….
E-MAIL ADDRESS …………………………………………………………………….
OCCUPATION ……………………………………………………………………..

BIBILOGRAPHY

www.irdaindia.org
www.licindia.in
www.scribd.com
www.wikipedia.org

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www.sundaramfinance.com

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