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INTRODUCTION
Security and constant search for security have been an unending
endeavor of human race since the beginning of the civilization. From the
Rock man to Iron Age man, from the Medieval Conservative to today
Longhair and Techniques, this search has brought out innovative ideas.
The new liberalized and reformed insurance sector has a great fui New
companies have shown a real scope for improvement in the insurance market
in the past few months Visakhapatnam. The city has seen companies entering
into the market . The companies have seen great pott in the unexplored market
and they have brought about intensive penetrate the field. This has brought
about competition for LIC of India which was only player in the life insurance
market.
The study is focused to find out the buying behaviour and the factors
influencing the purchase of Life Insurance policy by an individual. Also the
study is to find out the perception of the individuals of the companies
operating in Visakhapatnam. The study is to elaborate the purchase pattern
competitors strategies adopted but the companies in the city.
Collection of data:
Marketing research depends on two kinds of data i.e.. primary and
secondary. Primary data consists of observing phenomena and subsequently
surveying respondents. The study requires primary data for learning the
customers' perception about private life insurance. The company supplies the
database required for the study.
Market survey:
The research instruments and techniques used are as follows:
Questionnaire:
A structured questionnaire has been used to conduct the survey,
which consists of a set of questions related to the company and the basic
questions relating to the insurance industry.
Sampling plan:
The next step after the survey is to decide upon the sample size,
sample unit, and procedure.
Sample unit:
The sampling unit consists of who is to be choosing as a target to
commence the survey. According the survey done all the area covered is to be
taken as the sample unit. It is not restricted to one area or a single individual
but also the employees, the business agents all are taken into account.
Sampling procedure:
To get a sample representative of the entire population, a
probability sample of the population should be drawn. The sample of the
entire insurance sector has been taken into consideration in the
Visakhapatnam area.
Reporting research findings:
This phase of the survey includes the research findings. The
research findings help in the decision making of the gathered facts. The
marketers give the research findings to speed up the decision making process.
LIMITATIONS
One big factor to consider is the assumption that the Respondents will
be honest while responding to the questionnaire, which may not be true
in all responses.
CHAPTER-II
INDUSTRY PROFILE
Evolution of Insurance:
Nature of Insurance:
Insurance is a means of spreading risks. It involves pooling of risks,
group of people who are subject to an insurable risk contribute regularly and
the fund so created is utilized to compensate those unfortunate few members
of the group who actually suffer a lone due to same unexpected calamity. In
this way all members share the loss of a few as an equitable basis. Insurance
is a sock device for pooling and dividing risks among a large number of
persons.
For instance, let us assume that in a city 1000 house - owners decide to
insure their houses against fire. Every house-owner will make same payment
for the insurance cover. Some houses are likely to get fire but the probability
that all will burn is very remote. Suppose the total insurance fund created by
contributions is Rs. 50 lakhs and ten houses suffer a total loans of Rs. 40
lakhs by fire during the period of insurance then the owners of those houses
will be indemnified out of "the fund. Rest of the money will be utilized to
meet the expenses and profits of the insurance company.
Thus, insurance may be defined as a contract in writing under which
one party agrees in referrer for a consideration to indemnify the other party
against the loans or "damage suffered an account of an uncertain future event
or contingency or to pay a specified such on the happening of a specified
event.
Contract of insurance must fulfill all essential requirements of a valid co as
defined in the law of contracts. In other words there must be valid of the
acceptance and free consent the parties must be competent.
Classification of Insurance:
The risks, which can be insured, have increased in number and owing
to the growing complexity of the present day economics Insurance thus
occupies an important place in the modern world. It plays in role in the life of
every citizen and has developed in recent times enormous scales leading to
the evolution of many different types insure Even singers can insure their
voice and dancing girls can get their legs ins so that their singing or dancing
skill declines the insurance company pays the policy amount. Insurance can
be broadly divided into:
•Life Insurance
•General Insurance
Governance of Insurance Business:
The insurance business in India is governed by the following Acts: -
•The Insurance Act, 1938
•The Life Insurance Corporation Act, 1956
•The Marine Insurance Act, 1963.
•The General Insurance Business (Nationalization) Act, 1972.
Life Insurance in short is concerned with two hazards that stand across
the life path of every person, that of dying prematurely leaving a dependent
family to fend for itself and that living to old age without visible means of
support.
Promotion of Thrift:
Life insurance encourages people to save money compulsorily Once a life
policy is taken, the assured has to pay premiums regularly to keep the policy
in force and he cannot get back the premium.
Social Utility:
|jclisttabTax Relief:
General Insurance:
It is known as non-life insurable. We can
classify general insurance three branches.
It is the contract under which on party in
return I consideration agrees to indemnify the other
party for the financial loans, v the latter may suffer
due to damage to the property insured by fire
during specific period of time and up to an agreed
amount.
Marine Insurance:
Miscellaneous Insurance:
holder.
2. Saving the dividends paid to shareholders to
insurance.
3. Ensuring the use of life insurance funds for
completion companies.
5. Spreading the gospel of insurance beyond the
Evolution of
Insurance Market
Lets have a brief look into the evolution of the
insurance market, which has come a long way
starting 1818.
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 Kolkata. 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 enabled
the government to collect statistical information
about both life and non-life insurance businesses.
1938: Earlier legislation was consolidated and
amended by the Insurance Ac 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 were nationalized. LIC formed by an
Act of Parliament viz., LIC Act, 1956,. with a capital
contribution of Rs. 5 cr from the Government of
India. (Source: www.ciionline.org )
Prior to 1956, a large number of organizations
were managing lift insurance and general insurance
businesses. But then in 1956, the life insurant
business was nationalized & monopoly vested with
Life Insurance Corporation (LIC). Similarly in 1972,
the general insurance business was nationalized &
started to be managed by General Insurance
Corporation (GIC) and its four subsidiaries namely
National Insurance Company Limited, New India
Assurance Company Limited, Oriental Fire &
General Insurance Company Limited & United India
Company Limited.
The first sign of government concern
about the state of the insurance industry was
revealed in the early nineties, when an expert
committee was set up under the chairmanship of
late R. N. Malhotra. Amongst the various
recommendations put in by the Malhotra
Committee, the most important was recommending
that the insurance industry be .opened up to
private firm subject to the conditions that a private
insurer should have a minimum paid u capital of Rs.
100 crore, and that the promoter's stake in the
otherwise widel; held company should not be less
than 26 per cent and not more than 40 per cent.
Subsequent to the submission of its report by
the Malhotra Committee there were several
abortive attempts to introduce the Insurance
Regulator Authority (IRA) Bill in the Parliament.
In November 1998, the Central Cabinet
approved the Bill, which envisaged a ceiling of 40
per cent for non-Indian stakeholders: 26 per cent
for foreign collaborators of Indian promoters, and
14 per cent for nonresident Indians (NRIs),
overseas corporate bodies (OCBs) and foreign
institutional investors (FIIs). However, in view of
the widespread resentment about the 4( per cent
ceiling among political parties, the Bill was referred
to he standing committee on finance. The
committee has since recommended that each
private company be allowed to enter only one of
the three areas of business-lift for foreign
stakeholders in these companies be reduced to 26
per cent from the proposed 40 per cent.
The committee has also recommended that the
minimum paid up share capital of the new
insurance companies be raised to Rs. 200 crore,
double the amount proposed by the Malhotra
Committee. Today, due to these developments, the
Indian Insurance market stands wide open and has
attracted a host of global players.
SHIFT OF
INSURANCE FROM
PUBLIC TO
PRIVATE SECTOR:
Malhotra
Committee
Reforms in the Insurance sector were taken up
in 1993 when Malhotra Committee, headed by
former Finance Secretary and RBI Governor R.N.
Malhotra, was formed to evaluate the Indian
insurance industry and recommend its future
direction. The Malhotra Committee was set up with
the objective of complementing the Teforms
initiated in the financial sector. The reforms were
aimed at "creating a more efficient and competitive
financial system suitable for the requirements of
the economy keeping in mind the structural
changes currently underway and recognizing that
insurance is an important part of the overall
.financial system where it was necessary to address
the need for similar reforms.
The Malhotra
Committee's
Report suggested:
-
a. Structure Government stake in the insurance
Companies to brought down to 50%.
b. Government should take over the
holdings of GIC and subsidiaries so that
these subsidiaries can act as independent
corporations.
c. All the insurance companies should be given
greater freedom
operate Competition Private Companies with a
minimum paid up capital
of Rs.l bn should be allowed to enter the
industry
d. No Company should deal in both Life and
General Insurance through single entity.
e. Foreign companies may be allowed to enter the
industry in collaboratic with the domestic
companies
i. An Insurance Regulatory body should be set up
j. Controller of Insurance (Currently a part from
the Finance Ministry) should be made
independent
k. Investments: Mandatory Investments of LIC Life
Fund in government securities to be reduced
from 75% to 50%
IRDA:
The Malhotra committee felt the need to
provide greater autonomy to insurance companies
in order to improve their performance and enable
them to act as independent companies with
economic motives. For this purpose, it had
proposed setting up an independent regulatory
body. The Insurance Regulatory and Development
Authority Reforms in the Insurance sector were
initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing
regulations and registering the private sector
insurance companies. The other decisions taken
simultaneously to provide the supporting systems
to the insurance sector and in particular the life
insurance companies was the launch of the IRDA's
online service for issue and renewal of licenses to
agents.
The approval of institutions for imparting
training to agents has ensured that the insurance
companies would have a trained workforce
insurance agents in place to sell their products,
which are expected I introduced by early next year.
Since being set up as an independent stat body the
IRDA has put in a framework of globally compatible
regulation the private sector 12 life insurance and 6
general insurance companies been registered.
GOVERNMENT POLICY:
IRDA:
Objectives: -
To provide for the establishment of an
authority to protect the interests of holders of
insurance policies, to regulate, promote and ensure
orderly growth i the insurance industry.
Important changes brought through IRDA
act:
1.Insurance business is opened up to private sector
revived.
5.The concept of insurance brokers is introduced.
business.
5.Promoting and regulating professional
organizations connected with insurance and
reinsurance business and specify percentage
of Premium income to be spent by insured for
this purpose.
6.Undertaking inspections and conducting audit of
today.
Insurance sector accounting for 3% of GDP and
HDFC Standard:
HDFC Standard life was formed on 23.10.2000
with Registration number 10 It is a joint venture
between HDFC and Standard Life. The CEO of HDF
Standard Life is Mr. Deepak Satwalekar said, "Insurance is
all about protection and then savings and
investment ".
The company has recorded the premium during
the year Apr 2002 to Mar 20( Rs. 13'2.7 crores and
number of policies issued 142857.
HDFC Standard Life gets the half of its
business from term assurance plans, where the
sum assured is large but premiums are low. The
difference between HDFC Standard Life and other
companies is it concentrated more in whole life and
term plans.
MAX NEWYORK
LIFE:
Max New York Life was formed on 15.11.2000
with Registration number 104.The CEO of Max New
York Life is Mr.Anuroop Singh says, "Whole life policies
offer the right balance between protection and
savings'1. Max New York Life has recorded of
premium in between Apr 2002 to Mar 2003 in
Rupees 76.8 crores and number of policies issued 1,
43,000. Max New York Life has more concentrated
in whole life and term plans.
SBI LIFE:
SBI Life was formed on 30.03.2001 with
Registration number 111.
The CEO of SBI Life Mr. R Krishna Murthy says "our
strategy is to weave life under back of bank
products as quick way to penetrate and avoid
adverse selection."
AMP Sanmar
1 2 3 4
5 6 7 8
9 10 11 12
1 ICICI 37.10%
2 Max New York Life 7.80%
3 HDFC Standard Life 13.50%
4 BSL 15.20%
5 Bajaj Allianz 5.50%
6 CM Kotak 3.10%
7 SBI Life 7.40%
8 ING Vysya 1.80%
9 Met Life 0.60%
10 AMP Sanmar 0.50%
11 Tata AIG 6.10%
12 Aviva Life 1.30%
Add-On Services:
All players are trying to give various add-on
services in an attempt to boost their brand image.
Some of these services can be listed down as:
E-service:
A number of companies like Tata AIG, ICICI
Prudential Life, Roya Sundaram Alliance & Birla Sun
Life have started call centers with toll-free
numbers. Through this, almost half of the people
out of the total number when have dialed end up
taking a policy. Tata AIG & ICICI Prudential also
have an arrangement with rediff.com by which one can
e-mail a request for a visit by agents. Players have
also been able to respond to changing customer
needs by developing innovative online life
insurance products, like new community offerings
to target customers such as worksite marketing,
affinity groups and SME portals.
Branding :
The companies have started branding their
products in order to sustain in an increased
competitive environment. Branding the products &
serviced have become important to fuel growth.
Max New York Life's brand aims to provide
comprehensive risk protection in a country where a
large population is either un-insured or under-
insured.
Innovative
Products :
New companies have introduced a wider range
of products along with more needs-based selling
techniques. Protection plans are being sold
abundance by some companies (for instance, they
represent over 90% of r business for Max New York
Life), and most companies are offering a choice
riders, covering benefits such as accidental death,
critical illness, waiver premium, total and
permanent disability, and guarantees insurability.
Several the new companies have launched unit-
linked products (for instance, Birla-5 Life's portfolio
has unit-linked products which incorporate various
guarantee ICICI-Prudential and Old Mutual Kotak
Mahindra have launched unit-linked and unitized
with profit products respectively.
Distribution:
Before liberalization, distribution was entirely
via agencies. T objective of many of the new
entrants is to implement multichannel strategies
including a significant bancassurance element,
selling of insurance produce through banks.
Downward pressure on core banking business is
forcing ban to increase non-interest income, and so
to seek fee generation from to provision of other
services such as credit cards, cash management
service distributors of insurance products, with
several seeking also to become holder of equity in
insurance joint ventures.
However, to succeed in future, players need to
integrate their multiple distribution channels. One
of the greatest challenges is to integrate customer
information collected from all channels, to provide
a single view o the customers across all the
channels. Moreover, integration of information
systems with external partners is also a significant
issue.
The Indian Insurance Industry is still at its
nascent stage. With i population of over a billion,
only a very small percentage of it is actually having
insurance cover. Undoubtedly there is a large
untapped market, which attracting a host of foreign
and private players. It has become extremely
important to take a favourable position by the
insurance companies to grab i significant market.
INTRODUCTION:
ICICI PRUDENTIAL LIFE INSURANCE:
ICICI Prudential's equity base stands at Rs. 6.75 billion with ICIC
Bank and Prudential pic holding 74% and 26% stake respectively. In the yea
ended March 31, 2004 , the company had issued over 430,000 policies , for j
total sum assured of over R. 8,000 crore and premium income in excess of Rs
980 crore. The company has a network of about 30,000 advisors ; as well as
11 banc assurance tie-ups . Today the company is the # 1 private life insurer
in the country.
Vision:
To make ICICI Prudential the dominant life and Pensions player built
on trust by world-class people and service.
PARTNERS:
ICICI and Prudential came together in 1993 to form Prudential ICICI
Asset Management Company, which has today emerged as one of the leading
mutual funds in India. The two companies bring together two of the strongest
financial service brands in Asia, known for their professionalism, excellent
quality of service and long term commitment to YOU. Riding on the success
of this relationship, the two companies joined hands once more in 2000, to
form ICICI Prudential Life Insurance, with a commitment to provide leading-
edge life insurance solutions. ICICI Bank has 74% stake in the company, and
Prudential plc has 26%.
ICICI Bank:
ICICI Bank (NYSETBN) is India's second largest bank with an asset
base of Rsl06812crore. ICICI Bank provides a broad spectrum of financial
services to individuals and companies. This includes mortgages, car and
personal loans, credit and debit cards, corporate and agricultural finance. The
Bank services a growing customer base of more than 7 million customer
accounts and 5 million bondholders accounts through a multi-channel access
network. This includes about 450 branches and extension counters, 1675
ATMs, call centre's and Internet banking, (www.icicibank.com ). ICICI Bank
posted a net profit of Rs.l .206crore for the year ended March 31. 2001. ICICI
international rating agency Moody"s and the only Indian company to be
awarded an investment grade international credit rating. The Bank enjoys the
highest AAA (or equivalent) rating from all leading Indian rating agencies.
PRUDENTIAL PLC:
Established in 1848, Prudential plc is a leading international financial
services company in the UK, with around US$250 billion funds under
management, and more than 16 million customers worldwide. Prudential has
brought to market an integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is UK"s largest life
insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since
1923, Prudential has championed customer-centric products and services,
supported by over 60,000 staff and agents across the region.
MANAGEMENT:
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
comprises reputed people from the finance industry both from India and
abroad. Mr. K.V. Kamath, Chairman Mr. Mark Norbom Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. Kevin Holmgren Mr. M.P.
Modi Mr. R Narayanan
Ms.*Shikha Sharma, Managing Director Management Team Ms.
Shikha Sharma, Managing Director Mr. Sandeep Batra, Chief Financial
Officer & Company Secretary Mr. Shubhro J. Mitra, Chief - Human
Resources Mr. Puneet Nanda, Head - Investments Ms. Anita Pai, Chief -
Operations & Underwriting Mr. V. Rajagopalan, Appointed Actuary Mr.
Shridhar Sethuram, Chief - Sales & Marketing Mr. Anil Tikoo, Head -
Information Technology
FACT SHEET:
The Company:
ICICI Prudential life insurance company is a joint venture between
ICIC bank, a premier financial powerhouse and prudential plc, a leading
internal financial services group headquartered in the United Kingdom. ICICI
prudential was amongst the first private sector insurance companies to begin
operations ii December 2000 after receiving approval from insurance
regulator} development authority (IRDA).
ICICI Prudential's equity base stands at Rs.675 crore with ICICI bank
and prudential plc holding 74% and 26% stake respectively. In the year ended
March 31, 2004, the company had issued over 430,000 policies, for a total
sure assured of over Rs.8,000 crore and premium income in excess of Rs. 980
crore. Today the company is the #1 private life insurer in the country.
DISTRIBUTION:
ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 54 cites and
town in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar,
Aurangabad, Balgalore, Bhatinda, Bhopal, Bhubaneswar, Chandigarh,
Chennai, Coimbatore, Dehradun, Goa, Gutur, Gurgaon, Hyderabad, Hubli,
Indore, Jaipur, Jalndhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal,
Kochi, Kolkata, Kota, Kottayam,- Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patials, Pune, Rajkot,
Ranchi. Sujat, Thane, Thrissur, Trichy, Trivandrum, Vadodara, Vashi,
Vijayawada an Visakhapatnam.
The company has twelve bancassurance tie-ups, having agreements wit
ICICI bank. Allahabad Bank, Federal bank, south Indian bank, bank of Indk
Lord Krishna Bank, and Punjab & Maharastra Co-operative Bank, Goa Stat
co-operating Bank, Indoor Paraspar Sahakari Bank, Manipal State Co-operativ
Bank, Sahrma Rao Vithal Co-operative bank and Jalgaon people's Co-operativ
bank, as well as some corporate agents it has also tied up with organization
like Dhan for distribution of Salaam Zindagi, a policy for the socially an
economically under privileged section of society.
ICICI Prudential has recruited and trained over 30,000 insurance
advisor to interface with and advice customers. Further, it leverages its state-
PRODUCTS:
ICICI Pru life guard
ICICI Pru Save'n'protect
ICICI Pru Cash Bak
ICICI Pru forever Life
ICICI Pru Life Time pension
ICICI Pru Re Assure
ICICI Pru Cash plus
ICICI Pru Life Link
ICICI Pru Smart Kid
ICICI Life Insurance
ICICI Pru Secure plus
ICICI Pru Life Time
ICICI Pru Assurelnvest
Savings Solutions:
Child Solutions
Smart Kid child plans provide guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the policy.
The policy is designed to provide money at important milestones in the child"s
life. SmartKid child plans are also available with in unit-linked form - both
single premium and regular premium.
Market-linked Solutions:
Retirement Solutions
Forever Life is a retirement product targeted at individuals in tto
thirties. Secure Plus Pension is a flexible pension plan that allows one to
select between 3 levels of cover.
'We intend to come out with more pension and annuity products in if
current fiscal (2004-05) as we find this as an undeveloped market, sa:
Sharma.
Not enough products exist in the market today as the industry continue
to await tax reforms. Today policy holders can get total tax exemption up to
Rs 10,000 under Section 10 CCC of the Income Tax act.
As such , without tax reforms it is not conducive for customers to
invesl more under pension plans, . On the group side, ICIC Prudential has not
been as active as it has been a late entrant .
'We started targeting group insurance this year (2003-04) and have
been able to tap around 100 clients. The premium has been minuscule as the
sales cycle is long and varies between six-nine months to close a transaction ,
' said Sharma.
Moreover, with the rate war rampant in group term, ICICI Prudential
has been choosy on the business it under writes.
'Group term is a commodity , and as business is purely rate driven ,
this is not our focus area, ' she added.
What is perception:
Internal factors:
Differentation factor in marketing mix: A few examples in the Indian context are
Product differentiation
Nirma Price
Titan Place
Dhara&Frooti Packing (Tetra Packs)
Onida & magi Creative Advertisement
Elements of Perception:
Sensation:
Absolute Threshold:
Differential Threshold:
Subliminal Perception
CHAPTER – V
ANALYSIS AND INFERENCE
Table : 1
20-30 36 36%
30-40 50 50%
40-50 14 14%
Total 100 100%
14%
36%
20-30
30-40
40-50
50%
Inference:
The above table shows that According to the customers opinions regarding
the ages are between and distinguished as 20-30, 30-40 and 40-50. 36% of the
customers having 20-30 ages, 50% of the customers having 30-40 aged, 14% of the
customers having 40-50 ages.
Table : 2
12%
22%
50%
Inference:
The above table shows that the gross income per annum of the customers, the
gross income per annum have been categorized into < 1 lakh, 1-1.5, 1.5-5, > 5 lakhs,
22% of the customers are earning < 1 lakh , 50% of the customers are earning 1-1.5,
16% of the customers are earning 1.5-5, 12% of the customers are earning > 5lakhs.
Table : 3
Good 32 32%
Average 60 60%
Bad 0 0%
No Idea 8 8%
8%
0%
32%
Good
Average
Bad
No Idea
60%
Inference:
The above table shows that there has been a varied range of customer
perceptions towards ICICI Prudential life insurance products, 32% of the customers
had good view, 60% say that it is an average and 8% of the customers are not aware
about the products.
Table : 4
Yes 36 36%
No 44 44%
Not Interested 20 20%
LIFE ASSURED
20%
36%
Yes
No
Not Interested
44%
Inference:
The above table explains regarding the interest of the customers to know about
life insurance. 36% of the customers have shown an interest to understand the various
contents of life insurance, 44% of the customers were totally disinterested and
remaining did not want to give their opinion.
Table – 5
Yes 10 10%
No 60 60%
Not Interested 30 30%
NUMBER OF PROSPECTS
10%
30%
Yes
No
Not Interested
60%
Inference:
The above table explains regarding the interest of the customers to know about
life insurance. 10% of the customers have shown an interest to understand the various
contents of life insurance, 60% of the customers were totally disinterested and
remaining did not respond to this point.
Table – 7
High 50 50%
Moderate 30 30%
Low 20 20%
No Idea 0 0%
PREMIUM COLLECTED
0%
20%
High
Moderate
50%
Low
No Idea
30%
Inference:
The above table shows that according to the customers opinions
regarding the premium collected by the private insurance companies have been
distinguished as high, moderate and low. 50% of the customer’s opted high, 30% of
them have chosen moderate and 20% have declared it to be low.
Table – 8
10% 30 30%
20% 35 35%
Above 30% 20 20%
No Idea 15 15%
RETURNS EXPECTED
15%
30%
10%
20%
20%
Above 30%
No Idea
35%
Inference:
The above table shows that the general perception of the customers, the
returns have been categorized into 10%, 20% and above 30%. 30% of the customers
had a opinion that there should be 10% of returns, 35% of the customers opted 20% of
returns and 20% of the customers had an opinion that the expected returns should be
above 30%. 15% of the customers do not have any opinion regarding the returns.
Table – 12
Excellent 20 20%
Satisfactory 60 60%
Poor 10 10%
Don’t Know 10 10%
10%
20%
10%
Excellent
Satisfactory
Poor
Don’t Know
60%
Inference:
The above table shows that there has been a varied range of perceive customer
services provided by ICICI Prudential, 20% of the customer having Excellent view,
60% are having satisfactory, 10% of customer are having poor and don’t know about
the services provided by ICICI Prudential.
Table – 13
Good 34 34%
Average 42 42%
Bad 24 24%
24%
34%
Good
Average
Bad
42%
Inference:
The above table shows that there has been a varied range of belief in private
life insurance and their various insurance products. 34% of the customers had good
view, 42% say that it is an average and 24% of the customer are have bad view about
the products.
CHAPTER – VI
FINDINGS & SUGGESTIONS,
SUMMARY & ANNEXURE,
BIBLIOGRAPHY & GLOSARY
SUMMARY
The current section of the report deals with the essence of the entire
report. The report is on the existence of the insurance sector in the Indian
history and the various reasons, why the insurance plays a vital role in today's
life of the human beings. Before entering into the insurance let us discuss on
the term "life". Life is the most important and unknown to human race. No
Individual can have an idea of what is the life span. But certainly every
individual has the curiosity to know how much but unfortunately it is destined
before hand "What may happen tomorrow no one can judge". But to avoid
something that is unforeseen one must be insured first. Every human being
wants to lead a happy and peaceful life for what security is the most
important.
Insurance and the various need for insurance and the reasons for , finer
aspects of life all can be clearly understood in the forthcoming aspects of the
project. The objectives of what to be done and the limitations for the study are
the most important in the report, which are the pillars of the report. The report
also consists of various policies of the insurance and their uses. The major
leader in the insurance sector being the "Life Insurance Corporation" plays
the most vital role in the insurance scenario. The LIC has achieved the major
monopoly till the private insurers have come into the existence. Achieving the
targets and ranking as number one in the Insurance frame, LIC admits itself as
the leading insurance company.
Name: Occupation:
Address:
Phone/mobile: e-mail:
Dear Sir,
The following are the set of questions designed to understand your
respectable view points on the Insurance sector in particularly understanding
the roles of private players in the changing times. There is no right or wrong
answers, therefore kindly give your opinion on the same.
3. What is your first impression, when you hear about Life Insurance?
a) Good b) Average c) Bad d) No Idea
5. Suppose I were to tell you to sit with me for a few minutes and discus
life insurance would you be interested?
a) YES b) NO
6. Please read this article... and now let me know whether you would be
interested in discussing insurance with me?
a) YES b) NO
7. What do you think about the premiums collected by private life insurance
firms?
a) high b) Moderate c) Low
8. Generally how much do-you expect investment returns when you invest in
private life insurance policies?
a) 10% b) 20% c) More than 30%
9.In your opinion, how do you perceive your ideal Life Insurance policy to
be?
a) Purely as Tax Saver b) Risk point of view
c) Investment oriented d) All the above
References
Web sites: -
www.iciciprulife.com
www.licindia.com
www.hdfcstandardlife.com
www.birlasunlife.com
www.icfaipress.org
Journal:
"Insurance chronicle"
Life assured : The person whose life is financially covered by the insurance
company.
Nominee : The person who gets the guaranteed financial amount on the event
of death of the person whose life is covered.
Premium : The annual contribution made by the life assured or by another
person towards a policy in order to cover the death risk (calculated based on
term, age and mortality charges)
Term : The period during which the life assured' life is covered.
Mortality charges : A chart suggesting the number of lives under the threat of
death, in a given age group (based on a study of a sample by the life insurance
company)
Sum assured : The guaranteed sum payable to the nominee of the life assured
in the event of death of the latter.
Actuary : is a person who makes a study of population, mortality and
morbidity to decide on the premium to be collected and also plays the prime
role in designing insurance products.
Underwriter : is a person who assesses the risk on covering a life. He decides
whether the proposal has to be accepted or not. and if yes, in what conditions
(medical/non-medical) and at what rates (standard/extra)
Standard life: the actuary defines the risk associated on a normal life at a
particular age, that is with a few expectations, like weight, height etc. i f the
proposal matches these expectations, then it is to be considered a normal life
and proposal accepted at normal rates.
Non-standard life: if a human life is non-standard, that is if weight of a
person according to a person's age and height exceeds normal definition of the
actuary, the proposal is called non-standard and may be accepted at a higher
premium (extra).
GLOSSARY:
Annuity :
Assignment :
Assignee :
Beneficiary :
Claim :
Collateral :
Date of commencement :
Death Benefit :
Deferred Annuity :
Endowment:
Endowment insurance pays the sum assured upon the death of the life
insured during the policy term or on survival to the end of the policy term.
Grace Period :
This provision offers the policy holder additional period of time after
the due date, during which the premium can be paid. The policy continues tc
remain in force during this grace period and the premium continues to be
payable.
Immediate annuity :
Lapse:
Termination of a life insurance contract because of non-payment of
premiums. If there are nonforfeiture values, the policy lapses but may remain
effective reduced paid-up insurance.
Life Annuity :
Life Assured :
Non-participating policy :
Non-participating policy is also known as a without-profit or non-par
policy. The policy owner does not share in any divisible surplus made by the
life insurance company. No bonus is paid on this policy.
Participating Policy :
Policy Bonuses :
Policy Loan:
Policy Term:
Premium :
A specified amount of money that the insurer receives in exchange for
its promise to provide the policy proceeds when a specific loss occurs.
Reinstatement / Revival:
The process by which an insurer puts back into force a life insurance
policy that has been terminated for non-payment of premiums or a life
insurance policy that has been continued as an extended term or reduced paid-
up insurance.
Renewal Premiums :
Premiums that are payable after the initial premium and that are a
condition for the continuation of the policy.
Rider :
Riders are additional benefits that one can add on to the policy. The
rider can be opted for at the time of taking the basic policy. Additional
premium is charged for each rider. No Bonuses are paid under the rider.
Sum Assured:
Surrender Charge:
Waiting Period:
A specific time that must pass following the onset of a covered disability
before any benefits will be paid under a disability income policy