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By
NEETU KHATRI
SUBMITTED TO:
JIWAJI UNIVERSITY, GWALIOR
THROUGH
I hereby declare that the project work entitle “Comparative analysis of insurance
Companies with special reference to products & consumer behavior AT ING
Vysya Life Insurance Company Ltd” Submitted at the GICTS Group of
Institution, Gwalior as a summer training project report for the partial fulfillment of
the two years full time Master of Business Administration (MBA) in marketing as an
authentic work developed by me at ING VYSYA LIFE INSURANSE COMPANY
LIMITED, City Centre Gwalior from 15th June 2013 to 30th July 2013. This work has
not been submitted in part or full to this or any other university/ Institute for any
Degree or Diploma and does not form part of any other course undergone by me.
Neetu Khatri
MBA III Sem
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ACKNOWLEDGEMENT
I would also like to thank to all people who directly or indirectly helped to
complete the Report.
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CERTIFICATE
This is to certify that NEETU KHATRI student of MBA 3nd Sem. has
completed his Summer Training Report entitled “Comparative analysis of
insurance Companies with special reference to products & consumer behavior
AT ING Vysya Life Insurance Company Ltd” under my guidance.
Date:
Place: Gwalior
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TABLE OF CONTENTS
ACKNOWLEDGEMENT
PREFACE
EXECUTIVE SUMMARY
ABOUT IRDA
INSURANCE IN INDIA
EXECUTIVE SUMMARY-ING
LIMITATION
CONCLUSION
SUGGESTION
RECOMMENDATIONS
BIBLIOGRAPHY
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PREFERENCE
“Insurance is a contract between two parties whereby one party called Insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party called
insured a fixed amount of money on the Happening of a certain event.”
A family counts on the bread earner every day for the financial support: food, shelter,
transportation, education, and much more. Insurance provides a unique sense of
security that no other form of investment provides. It gives insured a sense of
financial support during the time of crisis irrespective of fluctuations in the stock
market. Insurance provides for your career goal from right from the childhood years.
Insurance is desire to safeguard oneself and one’s family against possible losses on
account of risks and perils. It provides financial compensation for the losses suffered
due to the happening of any unforeseen events. By taking insurance a person can have
a piece of mind and need not worry about the financial consequences in the case of
any untimely death.
Life is all about making sure your family has adequate financial resources to make
those plans and dreams come true. It provides financial protection to help your family
or businesses to manage after insured’s death.
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EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and ING VYSYA
LIFE INSURANCE has given me the opportunity to work and get experience in
highly competitive and enhancing sector.
The success story of good market share of different market organizations depends
upon the availability of the product and services near to the customer, which can be
distributed through a distribution channel. In Insurance sector, distribution channel
includes only agents or agency holders of the company. If a company like
RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the
market they can capture big market as compared to the other companies. Agents are
the only way for a company of Insurance sector through which policies and benefits
of the company can be explained to the customer .
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ABOUT LIFE INSURANCE
Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a sum of money upon the occurrence of the
insured individual's or individuals’ death or other event, such as terminal illness or
critical illness. In return, the policy owner (or policy payer) agrees to pay a stipulated
amount called a premium at regular intervals or in lump sums. There may be designs
in some countries where bills and death expenses plus catering for after funeral
expenses should be included in Policy Premium. In the United States, the predominant
form simply specifies a lump sum to be paid on the insured's demise.
As with most insurance policies, life insurance is a contract between the insurer and
the policy owner (policyholder) whereby a benefit is paid to the designated
beneficiary (or Beneficiaries) if an insured event occurs which is covered by the
policy. To be a life policy the insured event must be based upon life (or lives) of the
people named in the policy.
Life policies are legal contracts and the terms of the contract describe the limitations
of the insured events. Specific exclusions are often written into the contract to limit
the liability of the insurer; for example claims relating to suicide, fraud, war, riot and
civil commotion.
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THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY
Section 14 of IRDA act,1999 lays down the duties, powers and functions of IRDA.
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.
Without prejudice to the generality of the provisions contained in sub-
section(1),the powers and functions of the authority shall include,
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9. Control and regulations of the rates, advantages, terms and conditions that
may be offered by insurer 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).
10. Specifying the form and manner in which book of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries.
11. Regulating investment of funds by insurance companies;
12. Regulating maintenance of margin of solvency;
13. Adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
14. Supervising the functioning of the tariff advisory committee;
15. Specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations referred to in
clause(f);
16. Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
17. Exercising such other powers as may be prescribed;
The IRDA has prescribed both qualifications and disqualification for a person to be
given a license.
QUALIFICATIONS
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Have undergone training for at least 100 hours in life or general insurance
business as the case may be from an institution, approved and notified by the
authority;
Should have also passed the pre-recruitment examination conducted by the
Insurance Institute of India or any other examination body recognized by the
authority.
In case of an applicant for the composite insurance agent, he/she should have
completed at least 150 hours practical training in life & general insurance
business, which may be spread over six to eight weeks.
DISQUALIFICATIONS
The factors that would debar a person from obtaining a license are that he/she
The license once issued can be cancelled whenever the person acquires a
disqualification. In the case of companies & firms who want to become agents, the
test of qualification & disqualification would be applied to all the directors or
partners.
There are two separate forms, one for individuals & another for those other than
individuals, in which the applications are to be made. The two forms are numbered
by IRDA-Agent VB & are annexed to the regulation. The applications in the
respective forms have to be made to the designated person appointed buy the insurer
sponsoring the application.
The fee to be sent to the authority directly is Rs. 250 for new license & for renewals
applied for within the prescribed period, viz, at least 30 days before the date of
expiry. If the application is made after the date of expiry it would be normally
refused. But, if the authority is satisfied that hardship would be caused otherwise, the
license may be renewed. Prior to renewal of the license of the license the agent
should have completed at least 25 hours practical training in life or general insurance
business or at least 50 hours practical training in life & general insurance business in
the case of a composite insurance agent.
As per the IRDA guidelines every advisor must be trained & licensed to sell life
insurance. The responsibilities & obligations of the advisors have been clearly
defined.
Every insurance agent should himself & the insurance company that he
represents along with the license particulars.
The advisors should take into the actual needs of the clients before
recommending a plan.
All requisite information in respect of the products recommended should be
provided with a 'Sales Illustration' & the premium to be paid.
The agent is obligated to disclose the scales of commission likely to be earned
by him through sale of the recommended product, should the client wish to
know it.
The nature of information required in the application form should be
adequately explained along with the requirement for supporting documents.
Once the proposal is submitted, the advisor shall inform the status of decision
by insurer promptly.
In case of a claim, the advisor is required to render necessary assistance in
complying with the requirements for settlement of claims by the insurer.
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He/she should not interfere with any proposal introduced by any other any
insurance advisor/agent or force the client to terminate an existing policy
taken from him/her & take a new proposal within 3 years.
An advisor cannot induce the client to omit any material information or submit
any wrong information in the proposal form.
Further no rebating or offering any inducements in lieu of taking a policy is
allowed.
The licensing of Insurance Agent Regulations, 2000 lays down a code of conduct for
the agents which state that the agent shall
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HISTORY
Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China
and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs"
covered the cost of members' funeral expenses and helped survivors monetarily.
Modern life insurance started in late 17th century England, originally as insurance for
traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's
Coffee House, predecessor to the famous Lloyd’s of London.
The first insurance company in the United States was formed in Charleston, South
Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the
U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York
created the Corporation for Relief of Poor and Distressed Widows and Children of
Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769.
Between 1787 and 1837 more than two dozen life insurance companies were started,
but fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United States
insured the lives of slaves for their owners. In response to bills passed in California in
2001 and in Illinois in 2003, the companies have been required to search their records
for such policies. New York Life for example reported that Nautilus sold 485
slaveholder life insurance policies during a two-year period in the 1840s; they added
that their trustees voted to end the sale of such policies 15 years before the
Emancipation Proclamation.
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INSURANCE IN INDIA
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Insurance in India started as life insurance back in 1818, when it was introduced for
English Widows. Even till the end of the nineteenth century, Insurance Companies in
India were mainly the overseas companies investing in the insurance works in India.
An interesting fact here was that higher premiums were charged for Indian lives, as
they were considered riskier for insurance cover.
The Indian Government took various steps for the regulation of insurance in India by
passing various insurance laws and acts. These include:
In 1972, the General Insurance Company was nationalized with four main
subsidiaries National Insurance Company, New India Insurance Company, Oriental
Insurance Company and United India Insurance Company. Today Insurance
Companies in India have grown manifold. The insurance sector in India has shown
immense growth potential. Even today a giant share of Indian population nearly 80%
is not under life insurance coverage, let alone health and non-life insurance policies.
This clearly indicates the potential for insurance companies to grow their market in
India.
In 1999, various reforms were suggested in the insurance industry in India. This has
changed a lot of things for the insurance companies in India. These reforms were:
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Only the private companies with a minimum capital of Rs.100 crores should be
allowed to enter the insurance sector.
No insurance company can deal in both life and non-life insurance under the same
business entity.
Foreign Insurance Companies can enter India only in collaboration with domestic
insurance companies
And many more to bring greater freedom and a well-planned regulation to the
insurance companies in India.
Health insurance: For self, for family, accidental insurance premium, medical claim
policies etc.
Non-life insurance: Home or House Insurance and other property insurance, Auto
Insurance (for cars, motorcycle and other two-wheelers, commercial vehicles),
Infrastructure Projects Insurance, Travel Insurance, real estate insurance, mobile
insurance etc.
Another field coming up in insurance is re-insurance. This is insurance for the insurer.
Re-insurance helps the primary insurers to accept risks that are normally beyond their
capacity and also in maintaining the financial stability in case of losses due to mass
settlement cases in catastrophic events. The general insurance company (GIC) is the
major player in re-insurance in India. It assumes the role of national reinsurer and all
the insurance companies in India are supposed to pay 20% of their re-insurance
businesses to GIC.
The insurance companies employ insurance agents and brokers to sell their insurance
policies and products. A work license from the insurance regulation department is
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must to sell any insurance plans. The insurance premiums offered vary from company
to company and also from the policy to policy. The premium asked depends on the
risk factor involved like mentioned earlier in the case of riskier life of Indians in the
British rule demanded higher premium.
The insurance jobs include an insurance quote by the insurance company, usually
conveyed by the insurance broker or agent, filling up of forms for your complete
information and contact details, written documents for the insurance premium offered
in the quote, term of the insurance taken, the prices charged for the services, and a
brief on the details of the claim process and settlement terms. The insurance claims
can be made as direct claim or third party claims; information regarding this is given
by your insurance providers.
You can also contact an insurance agency for info on the types of insurance available,
the estimate prices of the insurance policies, and a lead on the insurance product best
suited for your requirement. Besides this, many websites also provide this information
and also an online insurance estimator along with the ratings for the top insurance
companies in India that help you in deciding the insurance compan from where to buy
the insurance product chosen.
Apart from Life Insurance Corporation, the public sector life insurer, there are
17 other private sector life insurers, most of them joint ventures between Indian
groups and global insurance giants.
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3. MYNL Life Insurance
4. Sahara Life Insurance
5. Tata AIG Life
6. HDFC Standard Life
7. Birla Sun life
8. SBI Life Insurance
9. Kotak Mahindra Old Mutual Life Insurance
10. Aviva Life Insurance
11. Reliance Life Insurance Company Limited
12. Metlife India Life Insurance
13. ING Vysya Life Insurance
14. Max New York Life Insurance
15. Shriram Life Insurance
16. Bharti AXA Life Insurance Co Ltd
17. Future General Life Insurance Co Ltd
18. IDBI Fortis Life Insurance Co Ltd
19. AEGON Religare Life Insurance Co Ltd
20. DLF and Pramerica ( will soon Launch the operations)
S.No. Site
4. MetLife
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6. Birla Sun Life Financial Services
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Major Players in The Insurance Industry In India
Life Insurance Corporation of India (LIC)
The Corporation also transacts business abroad and has offices in Fiji, Mauritius
and United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India Assurance Company Limited, Nairobi; United
Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance
Corporation (International), E.C. Bahrain. It has also entered into an agreement
with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.
The general insurance industry In 1995-96, LIC had a total income from premium
and investments of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion.
During the last 15 years, LIC's income grew at a healthy average of 10 per cent as
against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe,
1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the
poverty line, with 50 per cent subsidy in the premium rates. LIC's claims settlement
ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average
of 40 per cent. Compounded annual growth rate for Life insurance business has
been 19.22 per cent per annum in India was nationalized and a government
company known as General Insurance Corporation of India (GIC) was formed by
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the Central Government in November 1972. With effect from 1 January 1973 the
erstwhile 107 Indian and foreign insurers which were operating in the country prior
to nationalization, were grouped into four operating companies, namely, (i)
National Insurance Company Limited; (ii) New India Assurance Company Limited;
(iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited. (However, with effect from Dec'2000, these subsidiaries have
been de-linked from the parent company and made as independent insurance
companies). All the above four subsidiaries of GIC operate all over the country
competing with one another and underwriting various classes of general insurance
business except for aviation insurance of national airlines and crop insurance which
is handled by the GIC.
The introduction of private players in the industry has added to the colors in the
dull industry. The initiatives taken by the private players are very competitive and
have given immense competition to the on time monopoly of the market LIC. Since
the advent of the private players in the market the industry has seen new and
innovative steps taken by the players in this sector. The new players have improved
the service quality of the insurance. As a result LIC down the years have seen the
declining phase in its career. The market share was distributed among the private
players. Though LIC still holds the 75% of the insurance sector but the upcoming
natures of these private players are enough to give more competition to LIC in the
near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-
05).
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1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of India's leading private life
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.), India's leading housing finance institution and The Standard
Life Assurance Company, a leading provider of financial services from the United
Kingdom. Their cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They
have managed to cover over 11,00,000 individuals out of which over 3,40,000 lives
have been covered through their group business tie-ups.
Max New York Life Insurance Company Limited is a joint venture that brings
together two large forces - Max India Limited, a multi-business corporate, together
with New York Life International, a global expert in life insurance. With their
various Products and Riders, there are more than 400 product combinations to
choose from. The Company have a national presence with a network of 57 offices
in 37 cities across India.
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Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group
and Sun Life financial Services of Canada.
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head
Quartered at Chennai, and has two Regional Offices, one at Mumbai and another
one at New Delhi.
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj
Auto Limited and Allianz AG of Germany. Both enjoy reputation of expertise,
stability and strength.
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3. ICICI Lombard General Insurance Company Limited
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EXECUTIVE SUMMARY
Here the main problem is to known the level of awareness about life insurance among
those who can afford to buy insurance especially now when a no. of private insurer
has entered the market.
The researcher would also like to establish the main reasons for buying a life
insurance policy, to know what type of cover is preferred by most of people. After
going through the literature review, the researcher has found out that people still
believe in government insurance policies i.e. LIC policies, even many of them don’t
known about that ING Vysya is in insurance sector, which is no. 1 insurance
company in Netherland also in today’s world when privatization has been given the
green signal the people rely more on Govt. insurance companies than in private and
this would take time when the general awareness would change.
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Founded 2000
Employees 7000
Advisor 51,000
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ING VYSYA LIFE IN INDIA - AN OVERVIEW
ING Vysya Life Insurance Company Limited a part of the ING Group the world’s
largest financial services provider entered the private life insurance industry in India
in September 2001. Headquartered at Bangalore, ING Vysya Life is currently present
in 246 cities and has a network of over 300 branches, staffed by 7,000 employees and
over 51,000 advisors, serving over 5.5 lakh customers.
Product Portfolio
ING Vysya Life follows a “customer centric approach” while designing its products.
The Company’s product portfolio offers products that cater to every financial
requirement, at all life stages.
In fact, the company has developed the LifeMakerTM a simple tool which
can be used to choose a plan most suitable to a specific customer based on
his needs, requirements and current life stage. This tool helps you build a
complete financial plan for life at every lifestage, whether the requirement
is Protection, Savings, Investment or Retirement. Suitable products from
ING Vysya Life Insurance’s product portfolio for each such requirement,
makes selection of your plan an easy exercise.
The Company aims to make customers look at life insurance afresh, not just as a tax
saving device but as a means to live life to the fullest. It believes in enhancing the
very quality of life, in addition to safeguarding an individual's security.
Distribution Channels
ING Vysya Life has a diversified distribution platform. While Tied Agency remains
the strongest channel, the Alternate Channels business within ING Vysya Life is one
of the fastest growing distribution channels. ING Vysya Life has strengthened its
position as the unparallel leader in the life insurance industry in cooperative banks tie
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ups. The company currently has tie ups with 130 cooperative banks across the
country. The Alternate Channels division has Bancassurance, ING Vysya Bank,
Corporate Agents and SMINCE.
In 2007, ING Vysya Life developed its unique brand positioning ‘Mera farz’. This
positioning means, ING Vysya Life helps its customers fulfill their responsibilities
towards themselves and their families. This powerful positioning has helped ING
Vysya Life create a distinct identity for itself. The latest brand campaign with a very
catchy jingle dwells on how a little planning and a helping hand from ING Vysya life
can help lighten the burden of responsibilities that often come with happy moments
and let you enjoy your life without any worries.
ING Vysya Life Insurance Company Private Limited (the Company) entered the
private life insurance industry in India in September 2001, and in a short span of 7
years has established itself as a distinctive life insurance brand with an innovative,
attractive and customer friendly product portfolio and a professional advisor sales
force.
It has a dedicated and committed advisor sales force of over 51,000 people, working
from 300 branches located in 70 major cities across the country and over 7,000
employees. It also distributes products in close cooperation with the ING Vysya Bank
network. The Company has a customer base of over 5,50,000 & is headquartered at
Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore
and also has a share capital of Rs. 440 crore.The Company aims to make customers
look at life insurance afresh, not just as a tax saving device but as a means to add
protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in
enhancing the very quality of life, in addition to safeguarding an individual's security.
Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy,
Approachable and Caring.
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The Company’s portfolio offers products that cater to every financial requirement, at
any life stage. We believe in continuously developing customer-driven products and
services and value being accessible and responsive to the needs of our customers.
Corporate Objective
At ING Vysya Life, we strongly believe that as life is different at every stage, life
insurance must offer flexibility and choice to go with that stage. We are fully prepared
and committed to guide you on insurance products and services through our well-
trained advisors, backed by competent marketing and customer services, in the best
possible way.
It is our aim to become one of the top private life insurance companies in India and to
become a cornerstone of ING’s integrated financial services business in India.
Mission
“To set the standard in helping our customers manage their financial future”.
Partners
► ING Group,
► Enami Group
ING operates through three businesses in India, ING Vysya Life Insurance, ING
Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private
sector bank with over 76-year heritage and 1.5 million satisfied customers. ING
Investment Management comprises of two operations: ING Fund - a mid sized asset
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management company with a retail investor focus and Optimix - a fund of funds
business.
ING operates through three businesses in India, ING Vysya Life Insurance, ING
Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private
sector bank with over 76-year heritage and 1.5 million satisfied customers. ING
Investment Management comprises of two operations: ING Fund - a mid sized asset
management company with a retail investor focus and Optimix - a fund of funds
business.
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Management Team
ING Group is known for its philosophy of ‘keeping it simple’. This thought is the
result of ING Group’s 150 years of understanding of customers’ needs and fulfilling
them.
ING is a global financial institution of Dutch origin. It has 150 years of experience,
and provides a wide array of banking, insurance and asset management services in
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over 50 countries and is trusted by over 60 million customers. Its 1,13,000 employees
work daily to satisfy a broad customer base – individuals, families, small businesses ,
large corporations, institutions and governments. The ING Group has gone from
strength to strength year after year and is the world's 17th largest company*. The ING
Group is the world's fourth largest financial services group* with over US $ 1 trillion#
in assets and profits of US $ 8.5 billion in 2005#.
Over the last 150 years, ING Group has grown to become one of the largest life
insurance organizations in the world. Today it touches the lives of millions of people
across 50 countries.
ING Group has wide and deep experience in setting up companies in new markets,
which require substantial investments underlining ING's long-term commitment. In
the last 20 years, ING Group has established successful life insurance companies in
15 countries contributing to the development of insurance services in these countries
successfully.
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ING VYSYA LIFE INSURANCE PLANS
At ING Vysya Life, there is nothing we hold higher than life itself. We therefore
view our plans not as tax saving devices but as a means to add protection to life. We
believe in Our products are designed in a way that helps you bear heavy expenses
while building your home or providing for your children's education and marriage.
We make sure your post retirement years are carefree and secure, ensuring your
family and loved ones are protected against financial difficulties in the event of a
premature death.
Depending on your personal needs, priorities and individual responsibilities, you can
go for a Protection, Saving or Investment plan. If you are not sure of which plan
would suit you best, you could use the LifeMaker, an application we developed for
that very purpose.
Conquering Life
Saving
Saving plans act as a compulsory savings instrument for families when the premium
is paid regularly. They work as long-term savings, enhanced by tax benefits, which
give you the financial strength to achieve your life goals.
Investment
Investment plans act as wealth creation instruments helping to create big estates for
the family. It is a long-term investment, free from the risk of market swings. At the
end of the term, you or your family can enjoy added returns on investment.
Retirement
Retirement plans can ensure that your post-retirement years are spent in peace and
comfort. They make sure that you have regular income after you retire and also help
you maintain your standard of living. Conquering Life Critical Illness Plan
The Conquering Life Plan is ideal because it provides protection to you and
safeguards your family's lifestyle through an easily affordable, pure risk life cover.
And more importantly, it covers you against ten life- threatening critical illnesses-
Cancer, Heart Attack, Coronary Artery Bypass Graft, Stroke, Kidney Failure, Major
Organ Transplant, Brain Tumor, Paralysis, Coma and Blindness.
Key Features
Money When You Need it Most (Critical Illness Claims Paid on Diagnosis)
Benefits
Illness Benefits
A critical illness cover of up to 50% of the sum assured is paid to you in the event of
a confirmed diagnosis of any one of the critical illnesses covered. This sum can be up
to a maximum of Rs. 20 lakhs.
The critical illness cover is only valid for the first critical illness suffered and not any
that follow.
In the event of critical illness, the remaining premium payments for the period of the
policy will be waived.
Death Benefit
Increase your coverage at a nominal extra cost by opting for any of our riders.
Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment
Rider.
Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are available on all our life
insurance plans and riders.
Look-in Period
This is a 15-day period for you to go through the terms and conditions and decide
upon taking or canceling the policy.
Product Features
Eligibility
Coverage Term
Same as the Premium Payment Term.
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LIFE ENDOWMENT PLAN (REVERSIONARY BONUS)
Ideally, once your protection needs are met, consider a saving plan. The Reassuring
Life Endowment Plan with reversionary bonus* is one such offering. Besides being a
savings option, it also acts as a highly reliable safety net for your family in case
something happens to you.
The Reassuring Life Plan is ideal because it gives you the incredible benefit of a
reversionary bonus which enhances your life cover, and hence your sum assured,
dramatically, every year. So when the policy matures you can receive almost double
the initial sum assured.
Key Features
Benefits
Survival Benefits
A sizeable financial asset for you and your family once the policy matures, so you can
meet large expenses - like higher education for your kids, investment in a house, or
organizing your child’s wedding.
A life cover that enhances rapidly, annually, thanks to the reversionary bonus*
feature. This basically means the bonus is earned not just on the original sum assured
but also on the previously accumulated bonus - an amount which goes on increasing
every year.
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Bonus are non-guaranteed and are based on the company's performance.
**Applicable if at least premiums for 15 years have been paid.
Death Benefit
Your family would receive a large sum which would include the sum assured and the
accumulated reversionary bonus and final additional bonus.
Additional Benefits
Rider Benefits
Increase your coverage at a nominal extra cost by opting for any of our riders –
Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment
Rider and Waiver of Premiums Rider.
Loan Benefit
After paying a premium for three years, you will be eligible for a loan.
Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are available on all our life
insurance plans and riders.
Look-in Period
This is a 15-day period for you to go through the terms and conditions and decide
upon taking or canceling the policy.
Product Features
Eligibility
Minimum entry age: 12 years,
38
Premium Payment Term
This plan is perfect if you have small children. You can provide for their future by
setting aside a small portion of your current income. The money you set aside will
help your children pursue their dream even when you are not around to take care of
them. Death cover will provide immediate relief and the maturity benefit will come to
your child at the right time when they need it.
The Creating Life Child Protection Plan helps you ensure that your children’s future
is secure and prosperous, so they can pursue their dreams no matter what the future
brings.
Key Features
39
Built-in Waiver of Premium Benefit.
Benefits
The sum assured and the accumulated compound reversionary bonus are paid on
maturity.
A final additional bonus based upon the performance of company is paid on maturity.
Death Benefits
Your child will receive the sum assured in case of your death.
The policy continues even after the sum assured on death is paid.
No premiums have to be paid after the death of the parent
whose life is insured (Built-in waiver of premium benefit).
Your child will be eligible for guaranteed maturity benefits.
Additional Benefits.
Rider Benefits
Increase your coverage at a nominal extra cost by opting for any of our riders –
Term Rider, Accidental Death Rider, Accidental Death, Disability & Waiver of
Premiums Rider.
Loan Benefit
After paying a premium for three years, you will be eligible for a loan.
40
Maturity Benefit
Your child can either receive a lump sum or receive the amount in 3 or 5 equal
installments after the maturity date.
Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are available on all our life
insurance plans and riders.
Look-in Period
This is a 15 day period for you to go through the terms and conditions and decide
upon taking or canceling the policy.
Product Features.
Eligibility
Minimum entry age: 18 years,
Maximum entry age: 55 years,
Maximum maturity age: 65 years.
41
A product that offers comprehensive protection and savings in an easy and hassle free
manner. "Safal Jeevan" is the simplest life insurance plan giving you complete
freedom to choose from pre-packaged solutions, and decide how much and how long
you want to pay premiums. It offers death benefit, maturity benefit and has an in-built
accident cover.
The plan provides for policy coverage terms of 10,15 and 20 years. Premium is
payable annually, half yearly and quarterly.
Key Features
Low Premium ,
Benefits
Death Benefit
Sum Assured with non-guaranteed bonuses, if any, payable on death of the Life
Assured.
In case of death due to accident, an additional benefit equal to the basic Sum Assured
is payable.
Additional Benefits
Maturity Benefit
Premium Payment
Premium is payable annually, half-yearly or quarterly during the policy term. The
policy coverage terms are fixed at 10, 15 and 20 years.
42
CREATING LIFE MONEY BACK PLAN
As a parent, you always want to give all the good things in life to your child. See your
children grow into successful individuals, fulfill their dreams at every important stage
of their life and help them grab all the opportunities at the right time.
ING Vysya life helps you to achieve this. Be it for their computer training classes,
dance lessons or anything that makes them experience the good things in life. No
matter what happens to you, your child's future is always taken care of.
Creating Life Money Back Plan is ideal for parents like you who want a life cover that
pays you 20% of the Sum Assured at regular intervals, that is, on completion of every
1/5 of the Policy Term. For example, if you choose a 15 year Policy Term for Rs
5,00,000 Sum Assured, you will get Rs. 1,00,000 each on completion of the 3 , 6 , 9 ,
12 and 15 year. In essence it not only gives financial security but also the flexibility to
take care of your child's important milestones in life.
What's more, the Policy also earns bonuses, which are paid on maturity. You can pay
Premiums either Yearly, Half yearly, Quarterly or even Monthly as per your
convenience during the Policy Term.
43
SAFAL JEEVAN MONEY BACK PLAN
A rewarding life comes from intelligent investing right from the beginning. ING
Vysya Life Insurance can help you take the right decisions so that whatever stages of
life you are in, you are always in control and self-reliant.
In fact, life cover is just one part of an ING Vysya Life Plan. It also ensures that you
lead a financially secure life without having to worry about the uncertainties of
tomorrow. So whether you want to build a new home, or plan early for your children's
education, realizing your dreams should never stop.
Safal Jeevan Money Back plan is ideal if you are planning to take your first life
insurance policy. It offers you protection in an easy, hassle-free way and helps you
secure your goals and dreams despite the odds. All you have to do is to choose a
suitable policy term from 'pre-packaged' solutions, and allows you to decide how
much and how long you want to pay premiums.
The plan ensures an easy and hassle free process, yet offering you a comprehensive
protection and savings proposition with coverage terms of 16 and 20 years. Premium
is payable annually, half yearly and quarterly.
The ING Vysya Life Freedom Plan allows you to customize your insurance cover to
suit your requirements. It gives you freedom to plan your investments to suit your
preferences and risk profile. This plan also offers survival benefits at regular intervals.
The premiums and top-up amounts paid by you, less charges are credited to an
account called the Individual Policyholders’ Account (IPA) and are used to purchase
units in one or more investment plans as per your choice. At any point in time, the
44
balance in the IPA is represented by the number of Units multiplied by the respective
Unit Price of the Units held from time to time under all the Investment Plans under
this Policy.
Key Features
Flexible premiums ,
Flexible withdrawals,
The ING Vysya Life Freedom Plan gives you complete flexibility to plan your
finances. You can decide how long you want to pay, how much to pay, the extent of
insurance cover, the frequency of payments that you would make each year and so on.
You can choose the amount of premium you wish to pay subject to certain minimum
premium limits. The frequency of payment may be yearly, half yearly, quarterly or
monthly. The minimum amounts of premium for different frequencies are: Yearly :
Rs 15,000, Half-yearly : Rs 8,000, Quarterly : Rs.4,000 and Monthly : Rs 1,500.
Top-up Amount
This plan provides you with an option to pay additional top-up amounts (subject to a
minimum of Rs.5000) over and above your regular premiums as and when you wish
allowing you to increase your investments and savings at your own pace.
45
Flexible Premium Payment Term
You can choose the duration you wish to pay the premiums. The premium payment
term can range from 5 to 25 years.
You can choose a life insurance cover starting from a minimum of Rs.75,000 and a
maximum sum assured equal to one and half times of the total regular premiums
payable under the Policy issued to you.
For e.g. If you choose to pay a premium of Rs.20,000 per annum for term of 20 years
the maximum sum assured that you may be eligible for will be Rs.6,00,000 and so
you can choose any sum assured between Rs.75,000 to Rs.6,00,000.
This plan comes with a unique in-built safeguard against lapse of life insurance cover.
If you are unable to pay your premium in any year, the life insurance cover under
your policy will continue as long as the balance in your IPA is sufficient to pay the
charges. However, if the premiums are not paid for two years and balance in your IPA
is less than Rs.15,000, then the policy will be cancelled and balance in the IPA if any,
after deducting charges will be refunded.
Flexible Investments
You can choose one or more of the following Investment plans for investing your
premium and top-up amount, net of applicable charges.
46
Investment Plans Investment Pattern Objective
100% of the available funds are invested in debt Provides safety and
instruments . growth with
Debt Plan minimum risk.
ONE LIFE
You believe in working hard and playing hard. In spending time with your family,
giving them the best and securing their future. Securing benefits through regular
insurance plans and making small payments on a regimented basis leave you feeling
dissatisfied. You feel you are capable of investing so much more.
Presenting the ING Vysya Life’s One Life – a plan that is much more than just
insurance. A superlative investment plan that gives you the unique option of making
one single lump sum payment and additional top ups as per your convenience.
One Life also provides you with a life cover of your choice and also enhances your
investment opportunities to earn returns in line with the market. So go ahead . Make
the choice of a lifetime.
47
Key Features
For those special persons who have achieved financial success, ensuring that success
is well protected and loved ones are cared for is an important necessity. It is important
for you to be able to provide financial security and resources for your family in a
flexible way. Platinum Life plan does just that by allowing you to pay for the policy
in a short period and enjoying the life insurance coverage and maturity benefits for a
long period. ING Vysya Life Insurance can help you to ensure that your family’s
future is safe and secure.
The plan provides an opportunity for building a safe and secure financial asset for
your self and your family and providing for life insurance protection while giving you
freedom to pay the premiums as per the premium payment term chosen by you .
Participation in Profits: The policy is also eligible for simple reversionary bonus for
the full term from the first policy year itself at such rates declared by the Company.
This provides opportunity to earn bonuses over and above the simple guaranteed
additions during the first 5 policy years.
48
Maturity or Death benefit: Sum Assured, Simple Guaranteed Additions and simple
reversionary bonuses, if any, are payable on maturity of the Policy or up on death of
Life Assured.
49
GROUP TERM LIFE INSURANCE PLAN
ING Vysya Life's Group Term Life Insurance Plan is a special way to safeguard your
employees' interests. It enables you to comprehensively safeguard your employees in
case of the unfortunate death of an employee due to any reason, by providing timely
and hassle free relief. It provides the essential life cover for all the members you wish
to include in the group.
Death Benefit
This act as a lifeline for the family of an insured member in case something
unfortunate were to happen to him. The beneficiaries will receive a fixed Sum
Assured which will act as their financial protection in their time of need.
To further protect your employees against a life full of uncertainties, the plan allows
you to add this extra shield. So, in case the death of an insured member occurs due to
accident, his beneficiaries receive an additional Sum Assured as per the contract.
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Participation by the Life Assured in any flying activity, except as a bonafide
passenger in a commercially licensed aircraft.
Participation in hazardous sports, hobbies or pastimes including (but not limited to)
racing, parachuting, mountaineering etc no benefits shall be paid.
Leaving a job doesn't mean the end of being protected. This plan comes with a
convenient continuation option.An employee can choose to maintain the cover after
resignation or retirement. This is done by simply effecting an individual insurance
policy, without further medical evidence. The facility can be availed by meeting
certain basic conditions.
While you have your employee's best interests at heart, we have yours. This is the
reason why we share part of the mortality experience profits with you, if the scheme
experience is favourable. The extent of such profit sharing depends on the size of your
member group. This share is adjusted against the next premium.
Lion Advantages:
For you
It is easier to cover all your employees as there are minimal requirements for
accepting cover.
It is a hassle-free way of securing life cover for all employees at one go.
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It enables you to customize the amount of life cover based on requirements like
graded cover or flat cover, or certain multiples of annual salary etc.
It offers the possibility of premium reduction over a period of time, with profit
sharing and/or experience rating arrangement.
It offers you the flexibility to add new members or exclude existing members.
It has provision for Accidental death benefit at a very nominal extra cost.
It allows you to increase scope of benefit by adding optional additional benefits like
Critical Illness and Accidental Death, Disability, at a marginal cost. It is a tax efficient
way of securing benefits to employees. Premiums paid by you are not treated as
taxable perquisites, for your employee. And for you it is a deductible business
expense.
52
A COMPREHENSIVE PROTECTION
ING Vysya Life's Group Disability Plus Rider helps you to comprehensively
safeguard your employees' interests in cases of unfortunate events like an accidental
death, permanent disability due to disease or accident, by providing timely and hassle
free relief. Thus you can safeguard your employees' financial interests. This plan
provides a range of protective covers. These are as follows:
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Advantages
One master policy covers all employees for a range of benefits. Your staff gets
maximum protection at minimal underwriting requirements for accepting the cover.
Build a positive attitude in your workforce, inspire loyalty and retain employees for
longer.
They get comprehensive life insurance cover. In other words, more wholesome
protection against life's uncertainties.
They don't need to worry about maintaining the plan by making periodic premium
payments:
Specifications
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Profit sharing: Not available.
Exclusions
While we provide prompt and assured support to your employees in the event of an
accident, there are some exceptions to the rule. If the accident occurs due to any of the
following :
Any Disease for which care, treatment, or advice was recommended by or received
from any consultant including but not limited to a physician or a Specialist or which
first manifested itself or was contracted before the start of the Risk Commencement
Date, or for which a claim for an event under this rider has or could have been made
under any earlier policy.
Participation in hazardous sports, hobbies or pastimes including (but not limited to)
racing, parachuting, mountaineering.
Atomic energy explosion or radiation of any kind, biological and chemical accidents.
War (declared or undeclared), invasion, civil commotion, riots, terrorism, revolution
or any war-like operations.
Disease in the presence of HIV infection.
55
A COMPARATIVE STUDY OF LIC AND ING VYSYA
POLICIES
LIC and ING Vysya both provide different policies and plans depending upon the
various requirements of people. Different plans are been categorised under seven
major categories of policies. Then a comparative analysis is done between the plans of
both LIC and ING Vysya. Both the company provide similar types of plan just with
the difference in the features or premium amounts.
The most cheapest form of LIC policy Policy that meets your changing need
over a lifetime
Bringing the difference in the plan of LIC and ING Vysya we can find out that LIC
plans are very simple to understand whereas the other provide plans according to your
the changing needs of people.
56
ENDOWMENT POLICIES
These are the policies of limited duration An ING Vysya ideal plan for those who
payable on maturity or death of the life want to accumulate funds on a regular
assured. basis with life cover.
These plans are available with different It is a fixed term policy that combines
option like with or without profit or saving with life cover. The premium is
double or special endowments. paid regularly during the term.
We can make out comparing the plans of both the companies that while ING Vysya
are more concerned about saving and are categorised for the different section of
people. LIC is straight and simple plan.
57
MONEY BACKS POLICIES
A high risk low cost plan and with profit An ideal plan for every milestone of life.
plan. It combines life cover+liquidity+savings.
This plan provide for an additional It provides survival benefit after every 3
insurance cover, equal to the sun assured or 4 yrs and add-on benefit for a nominal
in the event of policy holder death during extra premium.
the term of policy.
JEEVAN SURBHI
JEEVAN SANCAY
The LIC under money back policies provide various plans each having
different kinds of features. On the other hand ING Vysya, which combines all the
features in just one single plan.
The LIC plans like jeevan surbhi are suitable for high income and tax categories.
58
SINGLE PREMIUM POLICIES
This is a unique, short-term, A safe and comprehensive plan for those about to
multiple benefits insurance plan retire or has retired. It combines best of insurance
which provide safety, liquidity and investment,
attractive returns and tax benefit.
Under the single premium policies heading LIC just provides one policy as compared
to ING Vysya, which gives different policies.
Moreover ING Vysya gives higher assured returns and various other benefits.
59
TERM INSURANCE PLANS
A plan with the provision for return of An ideal low cost policy that covers
premium paid on surviving of the term. your life with uncertainties.
Free term cover after maturity provided the It comes with a choice of two
policy is in full force. convenient premium payment modes-
one time and regular.
Comparison between the plans of both the companies’ shows that while ING Vysya
provide more flexible and stable return plans the LIC are safer plan taking care of
family as a whole.
Again LIC provides different plan under this category of life insurance.
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LIC ING Vysya
Plan provides for a monthly income up to Plan designed for critical educational
age of 21 in case of unfortunate death of milestone include specialized course in
parents, the country and abroad,
BAL VIDYA
All future payments are waived off,
61
DATA ANALYSIS
25-35 38
35-45 44
45-55 8
55-65 10
62
OM KOTAK
ICICI MAHENDRA ING Vysya
PRUDENTIAL 3% 2%
10%
For 100 people who are opting for life insurance, the average is 39.67 for all age
groups .
The modal class is 35-45 having frequency 44 which is a highest frequency that
means people between age of 35-45 constitute the maximum share of life
insurance.
INSURED PEOPLE
Service 55
Self Employed 30
Business 8
Retired 7
63
60 55
50
40
30
30
20
8
7
10
0
SERVICE SELF BUSINESS RETIRED
EMPLOYED
The above graph shows 55% of the insured persons were employees and 35%
are self-employed
INCOME
5000-10000 38
10001-20001 32
20001-30000 8
64
38
40
35 32
30
22
25
20
15
8
10
0
5000-10000 10001-20000 20001-30000 30001 & above
From the total sample of 100, 38 belongs to 5000-10000 Income group and 10001-
20000 income group that is 32 respectively .
65
PREFERENCE OF RESPONDENTS OF INSURANCE
COMPANY
LIC. 78 78
ICICI Prudential 10 10
OM Kotak Mahendra 3 3
OM KOTAK
ICICI MAHENDRA ING Vysya
PRUDENTIAL 3% 2%
10%
Most of (79%) of the people have LIC policy and is ranked number one by that
percent of respondent.
66
INVESTMENT OBJECTIVES
Retirement Benefit 40
Child’s Marriage 18
High Returns 5
Children Education 18
Children Education
High Returns
Child’s Marriage
Retirement Benefit
To Meet Long-Term
Liability
0 10 20 30 40 50
Above Chart shows that the first objective of investment is to get Retirement
Benefit.
67
BENEFITS
Tax Deductions 15 15
Future Investment 23 23
Loan Facilities 7 7
60 55
50
40
30 23
20 15
10 7
0
Cover Future Tax Deductions Future Loan Facilities
Uncertainty Investment
55% of the respondent believe that covering future uncertainty is the biggest
benefit of insurance policy.
20% & 25% of them believe that other benefit are tax deduction & future
investment.
68
FEATURES OF INSURANCE POLICY
Low Premium 30 30
Reputation Of Company 11 11
Reputation Of
Company Money Back
Low Premium 11% Guarantee
30% 15%
Larger Risk
Coverance
37%
Easy Access To
Agents
7%
Most of the respondents found larger risk coverage as the most attracted feature
of their policy.
69
INSURANCE POLICY TYPE
Life Policy 75 75
Both 45 45
80 75
70
60
50 45
40
30 25
20
10
0
Life Policy Non Life Policy Both
The graphs shows that 75% of the respondent have life insurance policy while
45%have both.
70
FACTS & FINDINGS
FACTS/FINDINGS
1.As the people think that insurance is a tool to protect their family & a tax saving
device. They are aware of the fact & realizing its, importance. The company should
try to expand & build up its infrastructure because there is a large potential for
insurance in India.
2.Company should come up with its branch in Delhi. With the objective and goals
to meet the demands & expectations of the public. Because the entrance of private
players will increase the competition and it would be a tough task to secure a good
position in market.
3.Since ING VYSYA Life Insurance is leading with several companies' policies it
should be easy for them to penetrate into the market and secure a good position if
they pay greater attention to the service part provided to their customer and thereby
forming a long and trusted relationship.
4.As seen from the survey that at present 70% of the customer are having insurance
policy out of which 87.5% of the customer are planning for new investments. So it
can be a good potential for the company and they should make an attempt to trap
these customers.
5.43% of the customer is even ready to go for insurance if a service provider away
from their home is providing it. But intend they should provide good products and
services. The company should try to convince these customers and get them in its
favor.
71
DATA ANALYSIS AND INTERPRETATION
L.I.C. 78 78
RELIANCE LIFE 3 3
INSURANCE
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
HDFC 2 2
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is
ranked no.1 by that percent of respondents.
72
BENEFITS NO.OF SHARE (%)
RESPONDENTS
Tax Deductions 20 20
Future Investment 25 25
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest
benefit of an insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax
deduction and future investments respectively.
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS
Low Premium 30 30
Company's Reputation 11 11
73
INTERPRETATION
LIFE POLICY 75 75
BOTH 45 45
INTERPRETATION
75% of the respondents have Life Insurance Policy while 45% have both.
(The % is calculated out of 280 positive response)
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
74
INTERPRETATION
Yes 70 70%
No 30 30%
INTERPRETATION
Of the sample size of 400 surveyed respondents 70% of the respondents are
having Insurance policy.
30% of the respondents are either not having any Insurance policy at present
or their policy is already matured.
And at present 100% of the respondents are with the view that Insurance is a
tool to protect your family.
DATA SHOWS BUYING PROCESS OF THE PEOPLE
BUYING PROCESS NO. OF SHARE (%)
RESPONDENTS
Customer approached Insurance 45 45%
company/Agent
75
FINDINGS
Based on the quantitative analysis the major findings of the study have been
highlighted below….
► Most of the people are satisfied with the extent of their life insurance cover. They
are not interested in buying more life insurance.
►People do not consider life insurance as a good savings because of low returns.
►A
As life insurance is a long term contract, Maximum people do not have faith on
private life insurance companies, they still prefer LIC.
►B
Because of less advertising not many people are aware about private life insurance
companies.
►M
Most of the people do not know about broker, corporate agents and banc assurance,
they rely on their agents only.
►T
The most preferred type of plan is money back. The reason being availability of
funds after every five years which can be used for paying further premium, thus
saving the regular income.
► Some people have no idea about what type of cover they have.
Most of the people feel that life insurance is essential but they think returns are low.
►S
Some people have their doubts on the credibility and long stay of private insurance
companies.
76
LIMITATION OF THE STUDY
No study is generally full proof, this report suffers from certain limitation with respect
to information and analysis.
►IIt was difficult to get appointment from the person whom I know because of
their busy schedule .
► Since the project had to be submitted within seven weeks and within this time
period It’s very difficult to convert .
Since the study involved a through analysis of the insurance market and
►rrelative study of various players offering the similar products and that of similar, it
was required a dedicated labor in term of both time and effort. Since the curriculum
did not permit more time, the study had to be very limited.
►IING-VYSYA is a newly establish company in Guwahati and it has only one branch
in North East . The company is not fully successful to give a brand awareness
through advertisement, banners and hoardings .
77
CONCLUSION
The various conclusions I had drawn from my project are: -There has been
tremendous change in the insurance history and with it there has been continuous
growth in this sector both in Indian as well as in the world context.
The opening up of the insurance sector has changed the whole look of the industry.
While the LIC in order to face the competition is coming with new strategies. New
players like ING Vysya are leading the sector due to their strategic management and
tailored made projects.
From my research also I conclude that though the awareness and people opting for
LIC plans are more as compare to ING Vysya but the later are gaining momentum in
the market day by day. The primary reasons for buying an insurance policy, whether
life or non-life is to protect us from vagaries of life. We do not invest in insurance for
returns; rather we invest in it for regrettable necessities. Though a large proportion of
policies available in the country provide for returns, but nobody is looking for returns
to the inflation rate. So what does insurance offer, perhaps peace of mind, but even
that takes time, due to poor claim performance.
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing
countries.
Insurance as a concept has not been able to make headway in India.
There has been a strong fall in insurance business in recent years. Furthermore, it can
be observed that non-life business is not increasing as strongly as life business. Life
insurance business by contrast achieved average growth rates of 6%, although the
actual rates ranged from 0% to 13%. This shows on the one hand the increasing
significance of life insurance as an instrument for old age provisions and on the other
hand indicates the sensitivity of life insurance to changes in the institutional and
economic environment.
So lets conduct this business with utmost economy with the spirit of trusteeship;
thereby making insurance widely popular.
78
SUGGESTIONS
Insurance should be popularized as the means of securing future rather than saving
tax.
Newspaper/Magazines and television are the most effective medium of advertising the
life insurance.
Insurance companies also give preference to whole family Insurance to attract the
customers.
People are less aware about health insurance, because they think there is no return so
that, this is not beneficial to them, so that there should be much information give to
the people about health insurance.
79
RECOMMENDATIONS
► Insurance should be popularized as the means of securing future rather than saving
tax.
80
SWOT ANALYSIS
Strength:-
► Market Leader.
Weaknesses:-
Opportunity:-
► Increase Revenue
Threat:-
81
BIBLIOGRAPHY
Web-sites:-
www.licindia.com
www.inglife.co.in
www.money.com
www.insure.com
www.bimaguru.com
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