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COMPARATIVE STUDY
OF
&
HDFC STANDARD
Submitted by
Vinay Kumar
09-AIT-MBA-006
PRN No.-07209007647
of
Ansal Institute of technology
Gurgaon
Guided By Prof. Ashok Malhotra
Tilak Maharashtra University, Pune
(Deemed under section 3 of UGC act 1956 vide Notification
No. F.9-19/85-U3 dated 24th April 1987 By the Government of
India.)
Vidyapeeth Bhavan, Gultekdi, Pune-411037.
CERTIFICATE
This is to certify that the project titled Comparative study of TATA AIG &
HDFC Standard Life Insurance ltd.
Is a bona fide work carried our by Mr. Vinay Kumar a student of Master Of
Business Administration Semester 3rd, Specialization Marketing PRN.
under Tilak Maharashtra University, in the year 2010.
This is to certify that the project titled Comparative study of TATA AIG & HDFC
Standard Life Insurance ltd. is a bonafide work carried out by Vinay kumar a candidate
for the award of Master of Business Administration of Tilak Maharashtra University,
Pune under my guidance and direction.
Signature of Guide
I hereby declare that the project work titled Comparative study of TATA AIG & HDFC
Standard Life Insurance ltd.
is an authentic work carried out by me at HDFC Standard Life Insurance.
under the guidance of Prof. Ashok Malhotra (lecturer Ansal Institute of Technology and
Management Studies, Sec-55 Gurgaon.) For partial fulfillment for the award of the
degree of Master of Business Administration.
Vinay Kumar
Sector-55,
Gurgaon (Haryana)
ACKNOWLEDGEMENT
Summer training project is essentially a learning process in which apart from learning the
subject, one learns to work in real life environment. It is very difficult to prepare a project
report of such a nature because of limited time. But every time I feel encouraged because
the whole staffs and executives of the company who have helped me by providing the
much-required information about the company, its operations and have helped in
structuring and completion of the project.
One cannot rely merely upon theoretical knowledge. It has to be coupled with practical
for it to be fruitful. Classroom lectures make the fundamental concept of management
clear but not their application in actual practice. Positive and correct result of the
classroom learning needs realities of the practical situation. The working conditions under
later when they join any organization.
With the largest number of life insurance policies in force in the world, Insurance happens
to be a mega opportunity in India. It’s a business growing at the rate of 32-34 per cent
annually and presently is of the order of $ 41 billion (for the financial year 2009 – 2010).
Together with banking services, it adds about 7% to the country’s Gross Domestic
Product (GDP).
In India, life insurance has begun in 1818 when It was conceived as a means to provide
for English widows. In those days a higher premium was charged for Indian lives than the
non-Indian lives, as the Indian lives were considered more risky to cover.
Life insurance sector is very important in our country’s economy. This sector is very big
and is still growing. There are many opportunities in this sector to grow. Today everyone
wants to get insured. This sector is not at it’s maturity stage. It’s generating employment
at a high rate. This service has reached to everywhere whether it’s rural, remote or urban
areas. That’s why I studied this sector.
Chapter 2
• Title of the Project: Comparative study of TATA AIG LTD. & HDFC SLIC
LTD.
o To know about all the life insurance plans of TATA AIG LTD.
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,
formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life
combines the Tata Group’s pre-eminent leadership position in India and AIG’s global
presence as the world’s leading international insurance and financial services
organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG
holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals
and corporate. Tata AIG Life Insurance Company was licensed to operate in India on
February 12, 2001 and started operations on April 1, 2001.
The Tata Group is one of India's largest and most respected business conglomerates, with
revenues in 2004-05 of $17.8 billion (Rs. 799,118 million), the equivalent of about 2.8 per
cent of the country's GDP. Tata companies together employ some 215,000 people. The
Group's 32 publicly listed enterprises - among them standout names such as Tata Steel,
Tata Consultancy Services, Tata Motors and Tata Tea - have a combined market
capitalization that is the highest among Indian business houses in the private sector, and a
shareholder base of over 2 million. The Tata Group has operations in more than 40
countries across six continents, and its companies export products and services to 140
nations.
AIG
American International Group, Inc. (AIG), world leaders in insurance and financial
services, is the leading international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide property-casualty and life
insurance networks of any insurer. In addition, AIG companies are leading providers of
retirement services, financial services and asset management around the world. AIG's
common stock is listed on the New York Stock Exchange as well as the stock exchanges
in London, Paris, Switzerland and Tokyo.
Tata AIG has strong brand name and recall factor which most of its competitors lack in.
Other than the public behemoth Life Insurance Corporation (LIC) of India which has a
major hold in the market share (of approximately 79%), the private players too are having
more and more opportunities to tighten their hold of the market. Of the private players,
ICICI Prudential comes first with an almost 4.50% of the market share followed by Tata
AIG with about 2.10% of the pie. The private players have everything to work for,
especially with LIC not meeting the needs of its clientele with respect to the services they
need. This provides a prospect for the private sector players to increase their share of the
market. Companies with a familiarity such as Tata AIG can especially achieve their
targets due to the brand image that the Tata group has.
(Source: www.tata-aig-life.com)
The survey also revealed that Tata AIG Life had a high recall as a reputed brand name.
The ability to provide innovative and customer-focused service such as allowing the
maximum grace period for premium payment has not only further distinguished Tata AIG
Life from other life insurance companies but also appealed to consumers.
PRODUCTS & SERVICES:
• Employee Benefits
• Credit Life
• Group Pensions
• Workplace Solutions
• Health First
• Health Protector
• Mahalife
• InvestAssure II, InvestAssure Gold
• Shubh life, Nirbhay life
With respect to individual life insurance products, Tata AIG has an array of policies to
suit the needs and requirements of all age groups viz, children, students, adults, retirees
etc.
The ‘SUPPORT’ arm of Tata AIG Life is constituted of Operations, Human Resources,
Marketing, Corporate Training, Finance and Compliance.
Tata AIG Life possesses the philosophy and drive to customize retirement obligations (for
the company) which occur in the form of cash outflows, for the maximum benefit of both
the employer and the departing employee.
Management
Gaurav Garg
Tata AIG General Insurance Company (Tata AIG General) appointed Mr.
Gaurav Garg as the Managing Director of company
effective July 1, 2007. Previously, Mr. Garg was the president (field operation) of AIG,
New York. He succeeds Michael Carlin.
Based in Mumbai, Gaurav is responsible for providing overall leadership for
managing the operation of Tata AIG general in India and for driving all business and
market development activities.
Commenting on these changes Farrokh Kavarana, Chairman, Tata AIG General
Insurance Company said, “We welcome Mr. Garg on board as the takes over the reins
from Mr. Carlin as the Managing Director of Tata AIG General Insurance. We would;
like to thank Mr. Carlin for his contribution during his tenure in India and wish him
success for the future. Mr. Garg was a part of the start up team in the year 2000 of Tata
AIG General Insurance Company, as the Personal Lines Profit Center head. Since 2004,
in AIG New York, he has been a part of various multifunctional task forces set up to
improve operations and transfer best practice. With solid domestic and international
experience, Mr. Garg is well equipped to build on the momentum that the company has
achieved over the last six years and we wish him all the best as he takes on this
challenging assignment.”
Before joining Tata AIG, Gaurav has had a long career with the National Insurance
Company of India where he held various responsibilities. Gaurav has completed an MBA
from the University of Lucknow in India and is also a fellow of the Insurance Institute of
India.
CHAPTER- 4:
REVIEW OF LITERATURE
2.1 INTRODUCTION
A Insuranceis a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciation realized are
shared by its unit holders in proportion to the number of units owned by them.
Thus a Insuranceis the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally Insuranceis a
mechanism for pooling the resources by issuing units to the investors and
investing funds in securities in accordance with objectives as disclosed in offer
document.
The investors in proportion to their investments share the profits or losses. The
insurance normally come out with a number of schemes with different
investment objectives, which are launched from time to time. A insuranceis
required to be registered with Securities and Exchange Board of India (SEBI),
which regulates securities markets before it can collect funds from the publican
aged basket of securities at a relatively low cost.
A insuranceis set up in the form of a trust, which has sponsor, trustees, Asset
Management Company (AMC) and custodian. The trust is established by a
sponsor or more than one sponsor who is like promoter of a company. The
trustees of the insurancehold its property for the benefit of the unit holders.
Asset Management Company (AMC) approved by SEBI manages the funds by
making investments in various types of securities. Custodian, who is registered
with SEBI, holds the securities of various schemes of the fund in its custody.
The trustees are vested with the general power of superintendence and direction
over AMC. They monitor the performance and compliance of SEBI Regulations
by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be
associated with the sponsors. Also, 50% of the directors of AMC must be
independent. All insurance are required to be registered with SEBI before they
launch any scheme.
15
measure the fund performance. he had taken into consideration two periods i.e.
1944-53 and 1954-63 and a significantly positive not very perfect , relationship
between two ranking periods.
A Study of Monthly Insurance Returns and Performance Evaluation Techniques
16
whether the portfolio is value or growth oriented "almost completely" explain
short term persistence in risk-adjusted returns. He concludes that his evidence
does not "support the existence of skilled or informed insuranceportfolio
managers" (Carhart, 1997, p. 57). In the Kahn and Rudd 1995 study of 300
equity funds and 195 bond funds between 1983 and 1993, only the bond funds
show evidence of persistence. In an article in this issue, Detzel and Weigand
(1998) use a regression residual technique to control for the effects of
investment style, size and expense ratios. They find, after controlling for these
variables, no evidence of performance persistence.
Two other studies have used performance ranks. Dunn and Theisen (1983) rank
the annual performance of 201 institutional portfolios for the period 1973
through 1982 without controlling for fund risk. They found no evidence that
funds performed within the same quartile over the ten-year period. They also
found that ranks of individual managers based on 5-year compound returns
revealed no consistency. Bauman and Miller (1995) studied the persistence of
pension and investment fund performance by type of investment organization
and investment style. They employed a quartile ranking technique because they
noted that "investors pay particular attention to consultants' and financial
periodicals' investment performance rankings of insurance and pension funds"
(Bauman & Miller, 1995, p. 79). They found that portfolios managed by
investment advisors showed more consistent performance (measured by quartile
rankings) over market cycles and that funds managed by banks and insurance
companies showed the least consistency. They suggest that this result may be
caused by a higher turnover in the decision-making structure in these less
consistent funds. This study controls for the effects of turnover of key decision
makers by restricting the sample to those funds with the same manager for the
entire period of study.
17
Global Financial Management, Quantitative Performance Evaluation1997 by
Campbell R. Harvey and Stephen Gray. This class considers the efficiency of
capital markets and how to measure the performance of individual stocks and
insurance over time. Three notions of efficiency are introduced based on the
type of information being used to forecast returns. A number of technical
trading rules are introduced and their success is evaluated. Three traditional
measures of portfolio performance are reviewed, and some more recent
measures of performance are introduced. The relative strengths and weaknesses
of the various measures are compared and contrasted.
Investors
Generates Invest in
Securities
18
limited resources, he cannot buy shares of 'blue chip companies'. He may not, in
the most cases get allotment of the shares, applied for, in the Primary Market.
On the other hand, he will get full allotment of some dud shares. His
investments would, therefore, be not balanced and diversified. He is not thereby
able to minimize his risks by spreading his limited funds over different
industries. He has limited access to price sensitive information of the stock
exchanges. He may not even know the developments that take place in the share
markets and corporate bodies. 'Insurance' have come to a boon to the small
investors and they have emerged as the popular medium through which small
and medium investors can reap the benefits of good investing. The Institution of
Insurance collectively manages the funds from different small investors. It
mobilizes savings from the public and provides them attractive returns, security
and liquidity by investing in Capital Market.
19
In the UK, during the 1920s, 'the accepting houses' emerged as a major force in
the business of investment management agencies. Investment management has
its genesis in the deployment of the large fortunes made by some of the
Victorian merchant bankers. But only in 1950, the accepting houses rapidly
built up on their existing skills and knowledge to deal with increasing capital.
The investment trust was superseded by the Unit Trust as small savers means of
access to professional management.
The foundation for the Insuranceoperation in India was laid by the Parliament in
1963 with the enactment of the Unit Trust of India (UTI) Act. At that time, the
then Finance Minister Mr. T.T. Krishnamachari, who initiated the Act, made it
clear to the Parliament that “UTI would provide an opportunity for the middle
and lower income groups to acquire without much difficulty, property in the
form of shares or units. This institution is intended to cater mainly to the needs
of individuals investors whose means are small.” The statement of objects and
reasons to the Unit Trust of India Act brings out critically the objects and role
of Mutual Fund. The statement stated:
The Unit Trust of India will encourage saving by providing for various classes of
investors the facility of investing their money in units of the Trust. The Trust will invest
the initial capital and the capital obtained by the sale of the units in shares and other
securities and will distribute every year not less than 90 per cent of the net income
accruing to the unit holders. It is expected that the risk of losses or of depreciation on
account of the investments will be reduced or eliminated as a result of the proposed
arrangement. The Trust will also be in a position to contribute through its operations to
the growth and diversification of the country’s economy.
20
CHAPTER-5:
RESEARCH METHODOLOGY
RESEARCH DESIGN
INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in
collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the
project that stipulates what information needs to be collected, from which sources and by
what methods.
21
“To Compare the products of HDFC Standard Life Insurance Company Limited
and Tata AIG Life Insurance Company Limited for HDFC Standard Life
Insurance Company Ltd.”
This study was undertaken to identify which type of insurance plans HDFC SLIC should
market to beat Tata AIG LIC in India. A survey was undertaken to understand the
preferences of Indian consumers with respect to insurance. While marketing policies the
sole duty of an advisor/ agent is to provide insurance plans as per customer requirements.
22
OBJECTIVES OF THE STUDY
To analysis the product details of TATA AIG life Insurance Company limited
and HDFC Standard life Insurance Company Limited.
23
RESEARCH METHODOLOGY
There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary
data is data collected from indirect sources. (Source: Research Methodology, By C. R.
Kothari)
PRIMARY SOURCES
These include the survey or questionnaire method, telephonic interview as well as the
personal interview methods of data collection.
SECONDARY SOURCES
24
These include books, the internet, company brochures, product brochures, the company
website, competitor’s websites etc, newspaper articles etc.
SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusions about that universe. A sample is a representative of the universe
selected for study.
SAMPLE SIZE
The sample size for the survey conducted was 270 respondents. This sample size was
taken on 95% confidence level and 6 significant level. Data universe for this sample is
10,00,000 which is approx population of Panipat excluding people below age of 18 years.
SAMPLING TECHNIQUE
PLAN OF ANALYSIS
25
Tables were used for the analysis of the collected data. The data is also neatly presented
with the help of statistical tools such as graphs and pie charts. Percentages and averages
have also been used to represent data clearly and effectively.
STUDY AREA
The samples referred to were residing in Panipat City. The areas covered
Chapter 6
Data Analysis and Interpretations (using
Various charts and graphs).
TABLE 1:
26
CHART 1:
Analysis:
From the chart above we find that 47% of the respondents fall in the age group of 18 – 25
years, 25% fall in the age group of 26 – 35 years and 17% fall in the age group of 36 – 49
years.
27
Therefore most of the respondents are relatively young (below 26 years of age). These
individuals could be induced to purchase insurance plans on the basis of its tax saving
Individuals at this age are trying to buy a house or a car. Insurance could help them with
this and this fact has to be conveyed to the consumer. As of now many consumers have a
false perception that insurance is only meant for people above the age of 50. Contrary to
popular belief the younger you are the more insurance you need as your loss will mean a
great financial loss to your family, spouse and children (in case the individual is married)
28
CHART 2:
Analysis:
From the chart above it can clearly be seen that 43% of the respondents are working
professionals, 23% are students and 18% are into business. Therefore the target market
would be working individuals in the age group of 18 – 25 years having surplus income,
interested in good returns on their investment and saving income tax.
29
TABLE 3:
Person who have life insurance policy
Yes 103
No 167
CHART 3:
ANALYSIS:
This graph shows that out of total 270 respondents only 103 or 38% respondents have
life insurance policy in their name. Rest all don’t have a single policy in their name. So
there is a very big scope for life insurance companies to cover these people. So in future
business of life insurace will gro further.
30
MARKET SHARE OF LIFE INSURANCE COMPANIES
TABLE 4:
CHART 4:
31
Analysis:
In India, the largest life insurance company is Life Insurance Corporation of India. It has
been in existence in India since 1956 and is completely owned by the Government of
India. Today the organization has grown to 2048 offices serving 18 crore policies and has
a corpus of over 340000 crore INR.
TABLE 5:
32
CHART 5:
Analysis:
From the chart above we find that, 39% of the respondents surveyed pay an annual
premium less than Rs. 10001 towards life insurance. 25% of the respondents pay an
annual premium less than Rs. 15001 and 17% pay an annual premium less than Rs.
25000. Hence we can safely say that TATA AIG Life Insurance would be able to capture
the market better if it introduced products/plans where the minimum premium starts at
Rs. 5000 per annum.
33
Only 19% of the respondents pay more than Rs. 25000 as premium and most products
sold by TATA AIG Life Insurance have Rs.12000 as the minimum annual premium
amount. They should introduce more products like Easy Life Plus and Safe Guard where
the minimum premium is Rs.6000 p.a. and Rs. 12000 p.a. respectively. This would
definitely increase their market share as more individuals would be able to afford the
policies/plans offered.
TABLE 6:
34
CHART 6:
Analysis:
From the chart given above we can clearly see that 45% of the respondents hold
endowment plans and 39% of the respondents hold term insurance plans. Endowment
plans are very popular and serve two purposes – life cover and savings.
If the policy holder dies during the policy term the nominee gets the death benefit that is,
sum assured and accumulated bonus. On survival the policy holder receives the survival
benefit with a bonus.
35
A term plan is a pure risk cover plan wherein the insured pays a lower premium for a
higher sum assured. Term insurance is the cheapest form of insurance and helps the
policy holder insure himself for a relatively low premium. For the returns sensitive
investor term plans do not find favor as they do not offer a return in case the individual
does not die during the policy term.
TABLE 7:
CHART 7:
36
Analysis:
From the chart given above we find that 57% of the respondents are aware of unit linked
life insurance plans and 43% are not aware of such plans. These plans should be
promoted through advertising. The company can advertise through television, radio,
newspapers, bill boards and pamphlets. This would increase awareness and arouse
curiosity in the minds of the consumer which would enable the company to market its
products more effectively.
Unit – linked plans are those where the benefits are expressed in terms of number of units
and unit price. They can be viewed as a combination of insurance and mutual funds. The
number of units a customer would get would depend on the unit price when they pay the
premium.
When the policy matures the individual gets his fund value. The value of his fund is
calculated by multiplying the net asset value and number of units held by them on that
day.
TABLE 8:
37
Rs. 25,001 - Rs. 50,000 41 15%
CHART 8:
Analysis:
From the graph above, we can clearly see that 41% of the respondents would be willing
to spend between Rs. 10001 – Rs. 25000 for life insurance. 27 % would be willing to
spend between Rs. 6001 – Rs. 10000 per annum. Only 15% would be willing to spend
more than Rs. 25000 per annum as life insurance premium.
We could say that the maximum premium payable by most consumers is less than Rs.
25000 p.a. This is further reduced as most customers have already invested with LIC,
ICICI Prudential, Birla Sun Life, Bajaj Allianz etc.
38
TATA AIG Life Insurance is faced with a large amount of competition. There are 18
insurance companies in India inclusive of LIC. Hence to capture a larger part of the
market the company could introduce more reasonable plans with lesser premium payable
per annum.
TABLE 9:
CHART 9:
39
Analysis:
From the chart given above it can be seen that 35% of the respondents prefer a policy
term of 10 – 15 years, 19% prefer a term of 3 – 5 years and 15% prefer a term of 6 – 9
years. This means that TATA AIG Life Insurance could introduce more plans wherein
the premium paying term is less than 15 years.
The outlook of insurance as a product should be changed from something which you pay
for your whole life (whole life policy) and do not receive any benefit (the nominee only
receives the benefit in case of your death) to an extremely useful investment opportunity
with the prospects of good returns on savings, tax saving opportunities as well as
providing for every milestone in your life like marriage, education, children and
retirement.
40
TABLE 10:
CHART 10:
Analysis:
From the chart above it can be seen that 33% of the respondents purchase life insurance
to secure their families, 33% take life insurance to get high returns, 17% purchase
41
insurance on the advice of their friends and 13% purchase insurance because of the
influence of advertisements.
The main purpose of insurance is to cover the financial or economic loss that occurs to
the family in case of the uncertain death of the policy holder. But now a days this trend is
changing. Along with protection (life cover), a savings element is being added to
insurance.
With the introduction of the new unit linked plans in the market, policy holders get the
option to choose where their money will be invested. They can invest their money in the
equity market, debt market, money market or a combination of these. The debt and
money markets usually have low risk attached whereas the equity market is a high risk
investment option.
TABLE 11:
CHART 11:
42
Analysis:
From the graph above we find that 60% of the respondents preferred to purchase
insurance from a government owned company, 29% of the respondents preferred to
purchase insurance from a public limited company and only 4% of the respondents
preferred a foreign based company. Heavy advertising through television, newspapers,
magazines and radio is required.
TABLE 12:
43
CHART 12:
Analysis:
From the chart above it can clearly been seen that 18% of the respondents would like 16
– 20% returns, 17% would like returns between 21 – 25% and 17% would like returns of
11 – 15% on their investments. Therefore the average return on investment should be at
least 16 – 20 %.
Most consumers are willing to adapt to some amount of risk but still want some
guaranteed returns. Therefore the bulk of investment should be made in the balanced
fund with 50% debt and 50% equity. The returns on the Secure Fund are guaranteed as
these involve investment is government securities and the debt market. But the returns on
these instruments are low (8 – 10%). If the company invests in shares, returns are higher
(39%) but correspondingly risk borne by the policy holder is also higher. Therefore a
good combination of the two instruments is often a wise choice.
44
Chapter 7 Findings and Conclusions
The future topics for research in the organization could be setting up of an appropriate ad
campaign. It is very vital to the companies’ success that the people of India know about
TATA AIG LTD., its products and their special features and how insurance in general
can help them in their future. The advertisements have to be emotionally appealing. They
might also include a celebrity. The brand name of TATA could be used to give a push to
TATA AIG LTD. and its products. The general perception of insurance as “inauspicious”
should be done away with and individuals and corporations accept insurance on power
with other investment opportunities.
The other area of research could be in the management of funds TATA AIG Life
Insurance possesses and how it can maximize returns for its investors. A research project
could be undertaken on how to ensure that the money gets invested in the right
companies and earns a medium – high return on investment. Another area of research
could be an analysis of the sales and marketing techniques used by TATA AIG LTD. A
large number of changes could be introduced and this would help in saving operating
costs and improving the efficiency of the firm.
45
CONCLUSION
TATA AIG life insurance is first life insurance company in India. It has businesses
spread out across the globe. It started its work in India on January 22, 2001. It currently
ranks number 4 amongst the insurers in India (Source: annual premium provided by the
company
The company faces a large amount of competition. To sustain itself it must promote its
products through advertising and improve its selling techniques. Consumers must be
aware of the new plans available at TATA AIG Life Insurance. The medium of
advertising used could be television since most of its competitors use this tool to promote
their products. The company must be promoted as an Indian company since consumers
seem to have more trust in investing in Indian firms.
The unit linked concept must be specifically promoted. The general perception of life
insurance has to change in India before progress is made in this field. People should not
be afraid to invest money in insurance and must use it as an effective tool for tax
planning and long term savings.
TATA AIG LTD. could tap the rural markets with cheaper products and smaller policy
terms. There are individuals who are willing to pay small amounts as premium but the
plans do not accept premiums below a certain amount. It was usually found that a large
number of males were insured compared to females. Individuals below the age of 30
(mostly male) were interested in investment plans. This was a general conclusion drawn
during prospecting clients.
46
Chapter 8
Limitations
1. Some people don’t give the remarkable answer, so the surveyor has to make his own
assumption
2. Since the survey has been conducted in Panipat, being so big market it might not give
true picture.
3. The questionnaire was too long and many a times respondents used to refuse to fill
the questionnaire as they considered it to be time consuming.
4. The time period allotted for the study was limited as it had to be completed with this
stipulated period of time.
5. The number of respondent covered in the study is limited. Although all efforts has
been taken to make this study a representative of total market of Panipat, the sample
size is too small so that data are not reliable. Most of the customer were busy in their
work and saying “sorry I don’t have time” .So it was very difficult to access
information from those people.
6. The respondents were unable to read exact data spontaneously.
It is very difficult to catch the exact word of customers through questionnaire
47
Chapter 9
• The project allowed me to know the subject in a better way by practical learning.
• How different aspects of an area (area under study) effect the marketing
strategies .
• How an area can be divided into various sub cities so that marketing can be done
effectively.
• How the company insures people’s life and also makes its own profit.
48
Appendices
Bibliography
Websites:
www.hdfcslic.com
www.tata-aig-life.com
www.irdaindia.com
www.lic.com
www.money control.com
www.bajajallianz.com
www.icici.prulife.com
49
Copy of questionnaire
Dear Sir/Madam,
o Yes o No
50
o Life Insurance o Pension Plans
o Life Insurance and o Child Plans
Investment Plans
o Tax saving plans
o Yes o No
o 3 to 5 years o 21 to 25 years
o 6 to 9 years o 26 to 30 years
o 10 to 15 years o More than 30
o 16 to 20 years years
o Whole life policy
51
o Government o Private Company
owned company o Foreign based
o Public Limited company
Company
Personal Details:
Name:
Address:
• Profile of Student
• Housewife
• Working
Professional
• Business
• Self – Employed
• Government
Service Employee
Date:
Respondent:
52