1

1.1 COMPANY PROFILE

Unicon Investment Solutions UNICON is a financial services company which has emerged as a one-stop investment solutions provider. It was founded in 2004 by two visionary and flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is headquartered in New Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida.

UNICON is a professionally managed company, lead by a team with outstanding managerial acumen and cumulative experience of more than 200 years in the financial markets. The company is supported by more than 3500 Uniconians and has an extensive network of over 100 branches, 600 plus business partner locations & 2500 remisers providing it with a national footprint. With a customer base of over 200,000, the UNICON Group has an eye for the intricate financial needs of its clients and caters to both their short term and long term financial needs through a comprehensive bouquet of investment services. These services range from offline & online trading in equity, commodities, currency derivatives to debt markets to corporate finance and portfolio management services. The company has a sizable presence in the distribution of 3rd party financial products like mutual funds, insurance products and property broking. It also provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPOs. The distribution network is backed by in-house back office support to provide prompt and efficient customer service. The Equity broking arm UNICON Securities Pvt. Ltd offers personalized premium services on the NSE, BSE & Derivatives market. The Commodity broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading on NCDEX and MCX. The UNICON group also has a PCG division providing investments solutions for High Net Worth Individuals. UNICON can boast of some of the most respected names in the Private Equity space like Sequoia Capital and Nexus India Capital as its share holders.

PRODUCTS AND SERVICES

Unicon customers have the advantage of trading in all the market segments together in the same window, as we understand the need of transactions to be executed with high speed and reduced time. At the same time, they have the advantage of having all Advisory Services for Life Insurance, General Insurance, Mutual Funds and IPOs also. Unicon is a customer focused financial services organization providing a range of investment solutions to our customers. We work with clients to meet their overall investment objectives and achieve their financial goals. Our clients have the opportunity to get personalized services depending on their investment profiles. Our personalized approach enables clients to achieve their Total Investment Objectives.

VISION
To provide the most useful and ethical Investment Solutions - guided by values driven approach to growth, client service and employee development.

MISSION
To create long term value by empowering individual investors through superior financial services supported by culture based on highest level of teamwork, efficiency and integrity.

VALUES
5

Knowledge: Knowledge leads to expertise; and our expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, Caring: Unicon is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion. Honesty: Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the customers of the Unicon experience. The company ensures that everyone who represents the brand carries a promise : we care in word as well as deed. Excellence: Excellence at Unicon implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business.

INTRODUCTION
Introduction of the Industry Introduction of the Company Company Profile Achievements Management Insurance Plans

INTRODUCTION
7

Insurance is basically a sharing device. The losses to assets resulting from natural calamities like fire, flood, earthquake, accidents, etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events which are beyond the human control. Secondly insured person should not make any gains out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often we forget that creator of all these assets is the human being whose efforts have gone a long way in building up the assets. In that sense, human life is a unique income generating assets. Unlike the physical assets, which decrease in value with passage of time, the individual becomes more experienced and more matured as he advances in age. This raises his earning capacity and the purpose of life insurance is to protect the income in the event of his premature death. The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of savings in certain cases.

How insurance works?

Suppose there are 1000 persons all aged 35 years and healthy lives. They are insured for one year against the risk of death. Each person is insured for Rs. 50,000. If the past experience indicated that 4 out of 1000 persons, at this age are expected to die during the year, expected amount of death claim to be paid to the family of four persons would come to Rs. 2,00,000. The contribution to be paid by each of the 1000 persons will come to Rs. 200 per year. Thus, all the 1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived till one year have not lost anything as they secured peace of mind and a feeling of security of their family. While insurance cannot prevent accidents or premature death, it can help protect the family of the decreased against the loss of income caused by the death of the main breadwinner. In return for specified payments, insurance will provide protection against the incidence of an uncertain event- such as premature death. The business of insurance company called insurer is to bring together persons who are exposed to similar risks, collect contribution (premium) from them on some equitable basis and pay the losses (claims) to the unfortunate few who suffer.

Classification of Insurance
8

Insurance business can be divided into two broad categories, life and non life. Life insurance is concerned with making provision for a specific event happing to the individual, such as death whereas non life (or general insurance) is more commonly concerned with the provision for a specific event which affects a property, such as fire, flood, theft etc.In this course we will only cover life insurance. So, let us now move on to the definition of life insurance.

Definition of Life Insurance

According to the U.S. Life Office Management Association Inc. (LOMA), life insurance is defined as follows: Life insurance provides a sum of money if the person who is insured dies whilst the policy is in effect. Any body who has knowledge about life insurance will be tempted to say yes BUT.. In other words, surely this is far too brief an explanation for a financial service that provides a very sophisticated range of savings and investment products, as well as mere compensation for death.

Need for Life Insurance

The above definition captures the original, basic, intention of life insurance: i.e., to provide for ones family and perhaps others in the event of death, especially premature death. Originally, policies were to provide for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of suitable, including:1) Temporary needs/threats The original purpose of life insurance remains an important elements, namely providing for replacement of income on death etc. Regular Savings Providing for ones family and oneself, as a medium to long term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence from their family.
9

2)

Investment Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investments, where the individual makes a one time payment.

3)

Retirement Provision for ones own later years become increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

This simple example illustrates the impact premature death can have on a family, where the main earner has no life cover. By now you should understand the obvious benefits life insurance could offer the typical family. A simple life insurance policy (term assurance) could have provided Mr. Atols family with a lump sum that could have been invested to provide an income equal to all or part of his income. We will discuss how to analyze the need for life cover and the vale of life later in the course.

5) Benefit from Life Insurance It is superior to a traditional saving vehicles As well as providing a secure vehicle to build up savings etc, it provides peace of mid to the policy holder. In the event of untimely death, of say the main earner in the family, the policy will pay out the guaranteed sum assured, which is likely to be significantly more than the total premiums paid. With more traditional savings vehicles, such as fixed deposits, the only return would be the amount invested plus any interest accrued. It encourage saving and forces thrift Once an insurance contact has been entered into, the insured has an obligation to continue paying premiums, until the end of the term of the policy, otherwise the policy will lapse. In other words, it becomes compulsory for the insured to save regularly and spend wisely.In contrast savings held in a deposit account can be accessed or stopped easily. It provides easy settlement and protection against creditors
10

Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is made (assignment), a claim under the life insurance contract can be settled easily. In addition, creditors have no rights to my monies paid out by the insurer, where the policy is written under trust. Under the Married Womens Properly Act (M.W.P Act), the money available from the policy forms a kind of trust which creditors cannot claim on. It helps to achieve the purpose of the Life Assured It someone receives a large sum of money, it is possible that they may spend the money unwisely or in speculative way. To overcome this, the person taking the policy can instruct the insurer that the claim amount is given in installments. For example, if the total amount to be received by the dependents is Rs.2,00,000 say Rs. 50,000 can be taken out as a lump sum and the balance paid out in smaller installments, say Rs. 5,000 per month. It can be encashed and facilitates borrowing Some contracts may allow the policy can be surrendered for a cash amount, it a policyholder is not in a position to pay the premium. A loan, against certain policies, can be taken for a temporary period to tide over the difficulty. Some lending institutions will accept a life insurance policy as collateral for a personal or commercial loan. Tax Relief The policy holder obtains income tax rebates by paying the insurance premium. The specified forms of saving which enjoy a tax rebate, under section 88 of the income tax Act, include Life Insurance Premiums and contributions to a recognized provident fund etc.

The role of Insurance in the development of the economy Every rupee invested in life insurance contributes in three ways to the development of the economy. Firstly, it relieves those insuring from the worry and anxiety they may have about how they or their family would meet the cost of certain events, such as the marriage of the children, the

11

premature death of the main income provider or maintaining a regular income in their retirement. If an individual is free from these worries he can perform better in his job, which helps the economy. Secondly, it directs peoples savings. The insurer invests these funds in various business enterprises, government bonds, and loans to public and private projects including infrastructure

and socially orientated projects. Thus the insurance premium provides the much needed funds for the development of the nations economy. Thirdly, these savings act as a anti inflationary force in the nations financial structure. Inflation happens when prices of goods go up. One of the causes is when a lot of buying takes place, due to the spending of a major portion of income by people. Savings in insurance reduce buying as people will have less money to spend.

12

FUNDAMENTAL PRINCIPLES OF LIFE INSURANCE

Contact of Life Insurance
Insurance is subject to the general principles of Law as is any other commercial activity. There are, however, special legal principles, which apply to insurance and many are based upon the law of contact. The definition of the term contact as per the Indian Contract Act, 1872 reads as under: an agreement enforceable by law is a contact. As per Section 10 of Contact Act, a contact is an agreement entered into by two or more parties competent to contact with Free consent for a lawful consideration and lawful objective and not expressively declared by law to be void. Life insurance contact satisfied all the ingredients of a valid contract. In simple terms, a life insurance contact is an agreement that one party (the insurer) will pay a sum of money, called the sum assured, on the happening of a specified event, usually the death of an individual or the survival of an individual to the end of a specific term. In return the individual (the insured) will pay an immediate smaller payment or a series of regular smaller payments, called premiums. The fundamental principles of Life Insurance are:

1.

Utmost Good Faith

Definition of Utmost Goods Faith A positive duty to voluntarily disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not. The above is a definition of utmost good faith (Uberrimae fides) as opposed to Caveat Emptor (let the buyer beware) applicable to non-insurance contracts. The insurer needs to be aware of all the details of the health, family, history, habits and other facts about the proposer. One party, the insured, knows all the facts and the other party, the insurer, cannot know despite efforts. For example, medical tests may not disclose blood pressure or diabetes at the time of the medicinal examination for insurance, if medicines are taken to suppress the symptoms. As these facts would be relevant for the assessment of risk, there is an inherent duty, laid down by law, on the proposer to disclose and furnish all relevant information (material facts) to the insurer.

13

Thus it is important that the proposer declares all the facts properly and in utmost good faith.

Material Facts

A fact that would influence the judgment of a prudent insurer in deciding whether to insure a particular risk, or the terms on which to insure it. The declaration made by the proposer, while proposing for insurance, becomes important, as the proposer certifies that the statements given by him are true and that they form the basis of the contact.

Disclosure of Material Facts The categories of facts that must be declared are the following: Facts, which show that the particular risk represents a greater exposure than normal. Lets consider the proposers occupation. Someone working at heights or underground would be required to disclose this information as it will add to the risk undertaken. External factors, those situations, which make the risk greater than would normally be expected. For e.g. a person with a dangerous hobby. Any refusal (declinature) or special terms imposed on previous proposals by other life insurers. The existence of other life insurance policies. Full facts relating to the health of the individual taking insurance. Non Disclosure of Material Facts There are some circumstances which are material but it is not necessary to disclose. The areas concerned are: Facts of law. The insurer is deemed to know the law of the land. Facts of common knowledge. An insurer is deemed to know abut such things as normal processes within a particular trade. For example, the work done by a military personal. Facts which lessen the risk. The fact that the proposer undergoes regular health checks. Facts which could be discovered by reasonable diligence. The occurs where an insurer has been put on inquiry by a statement on a proposal form. The most common
14

example of this would be where a proposer inserts a phrase see your records instead of completing fully the previous claims history. (2) The Declaration Proposal forms contain a declaration by the proposer to the effect that all statements and answers furnished by him in the proposal form are True. These statements and declarations shall be the

basis of the contact. If any of the statements are False, the contract can be made null and void, by the insurer, and premiums forteited. The policy documents also provides that such a declaration shall be the basis of the contract. In view of such a certification (warranty) any false statement is enough for the insurer to reject the contract and it will not be necessary for the insurer to show whether the non-disclosure was material. This is subject to section 45 of the Insurance Act 1938. (3) Section 45 of Insurance Act, 1938 In accordance with the provisions of this section, the doctrine of warranty will not apply to a policy after a period of 2 years from the date of acceptance of the risk. After the expiry of a period of 2 years, it will be necessary for the insurer to establish the following points. The statement by the proposer was inaccurate or false. Such an inaccurate or false statement related to a fact that was material to the contact. Such an inaccurate or false statement was deliberately made. The proposer knew the correct facts at the time of making the false statement. The burden of proving these points rests on the insurer.

2.

Insurable Interest
We have seen earlier that a person may take a life insurance police on his life to provide financial security for his wife and children. The motivating force is his interest in the welfare of his family. His wife has insurable interest on her husbands life. This concept of insurable interest differentiates a life insurance contract from a mere wagering contract .without insurable interest an insurance contact becomes a contract and ; as such ;unenforceable by law. Usually, the applicant for life insurance and the life insured are one and the same person.

Definition of Insurable Interest

Relationship with the subject matter (a person) which is recognized in law and gives a legal right in insure that person.

15

A person is said to have an Insurable interest in anothers life if he or she can reasonably expect to suffer financially from that persons death. For example, a wife depends upon her husbands income and benefits from his living and suffers financial loss in the event of his death. The wife is said to have insurable interest in the life of her husband. Note : Insurable interest must be a monetary interest.

It is not necessary that insurable interest should arise from a family relationship. A person who has lent money (creditor) has an insurable interest in the life of the person to whom he has lent the money (debtor) because he stands to lose the money lent should the debtor die before paying pack the money borrowed. However, it must be noted that in this case, insurable interest is restricted to the amount of debt plus a reasonable amount of interest (1) Who all Have Insurance Interest Every person has unlimited insurable interest in his own life. It must be noted that life insurance contracts are not of indemnity. Husband and wife have unlimited insurable interest in each others life. A creditor has insurable interest in the life of a debtor to the extent of the amount involved plus a reasonable amount of interest. Surety has insurable interest in the life of the principal to the extent of the surety amount involved. Partners in a business have insurable interest in the lives of their co-partners. A company has insurable interest in the lives of the key employee of the company.

Other Features The amount of insurable interest is not relevant in life insurance contracts based on family relationships, as life insurance is not a contract of indemnity. Insurable interest need only exist at the time of entering into the contract in life insurance. The existence of insurable interest is a question of fact in each case.

(2)

What happens when the proposal is on the life of a person other than the propser? In this case, the question of insurable interest arises. As discussed above, in the case of husband and wife insurable interest is presumed. In the case of any other relationship, insurable interest is not established by mere relationship. For example, a sister may not have insurable interest on the life of her brother because of the mere existence of the relationship.
16

EXECUTIVE SUMMARY

In todays 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 UNICON INVESTMENT SOLUTION 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 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 MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the market they can capture big market as compared to the other companies.

Agents are the best way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer

17

THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban
18

areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance
The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. Was set up to transact all classes of general insurance business. 6General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four companys viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company

Some of the important milestones in the general insurance business in India are:
19

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

20

MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores. The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad. Changing face of Indian insurance industry: Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually
21

here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: Low market penetration. Ever growing middle class component in population. Growth of customers interest with an increasing demand for better insurance products. Application of information technology for business. Rebate from government in the form of tax incentives to be insured. Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment. Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products. So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust

22

business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:

The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. That of dying prematurely leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support. Life Insurance Vs. Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for
23

insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan. Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise. Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponent's income and other relevant factors are considered by the Corporation. Insurance For Women Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.

24

At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount. In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

Various types of life insurance policies: Endowment policies:

An endowment policy is a combination of insurance and investment: Endowment policy has typical maturities of ten, fifteen or twenty years up to a certain age limit. The life of the individual taking the policy is insured for a certain amount. This life cover is referred to as the sum assured. Endowment Policy combines the risk cover with financial savings. Historically endowment policies have been the most popular policy in the world of life insurance. This is because people still consider endowment plan as an investment rather than pure insurance. In an Endowment Policy, the sum assured is payable even if the insured survives the policy term; if the insured dies during the term of the policy, the insurance firm has to pay the sum assured like any other pure risk cover. A pure endowment policy is also a form of financial saving, whereby if the person covered survives beyond the tenure of the policy; he gets back the sum assured with some other investment benefits.

25

An endowment policy may declare a bonus every year: The money that is invested generates a certain return every year. This return may be declared as a bonus. The bonus is typically generated as a certain proportion of sum assured or life cover as it is popularly known. However, the bonus declared does not compound it, only accumulates over the life of insurance; thus, returns are low. For example- if an individual taking the policy has a policy of sum assured Rs. 20 Lakh and the company declares a bonus of Rs. 10 per thousand of sum assured, then the bonus works out to be Rs. 20,000. Now since this bonus is not compounding every year, it will remain Rs. 20,000 till it is paid out. Hence, you could see a disadvantage here that you are essentially loosing interest on that money. This bonus may accrue to the insurance holder till the maturity or it may be paid out before the maturity as well. If premium payments are discontinued at any point of time before maturity, the policy continues with a reduced sum assured proportionate to the premiums paid. One can also surrender the policy at any time and get the surrender value, which is usually calculated as a percentage of the premiums paid excluding the first year's premium and all extra premiums. It is therefore not advisable to surrender the policy, as the amount realized will be much lower than the premiums paid.

Different types of Endowment policy

The various types of endowment policy include: 1. Unit-linked endowment: Here the insurance premium is endowed in several units of a specified unitized insurance fund. Moreover, the insurance holders can often select the funds where they want to invest their premiums. 2. Full endowment: It is basically a with-profits endowment in which the basic amount ensured is equivalent to the death benefit from the beginning of the policy. Later, assuming the expansion or growth, the final payout or return would be much higher than the initial sum. 3. Low cost endowment (LCE): A low cost endowment is a blend of a particular investment where an expected future growth rate will meet up a target amount and a declining life insurance component to make sure that the entire target amount will be paid as a minimum if

26

any accident occurs (any kind of physical illness or death). 4. Traded endowment: These endowment policies are also called second hand endowment policies. These are traditional with-profits endowments that have been sold to a new owner part way through their term. The Traded Endowment market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company. Investors will pay more than the surrender value because the policy has greater value if it is kept in force than if it is terminated early.

Benefits

Endowment Policy has the following advantages:Unlike term plans where one does not get any benefit on maturity, the basic attraction of an endowment plan is the maturity benefit. Therefore, the return generated on the premiums is an important factor while choosing a plan. Returns depend on the bonuses that accrue on the policy. Being an endowment assurance policy, this plan is apt for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. In addition to the basic policy, insurers offer different benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is relatively higher. Other riders that can be attached to the main policy are Critical Illness rider, Term and Major Surgical Assistance rider.

Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive. Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.
27

Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.

Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

MAJOR PLAYERS IN THE INSURANCE INDUSTRY

28

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread themessage of life insurance in the country and mobilise peoples savings for nationbuildingactivities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the country. 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. 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 percent in Europe, 1.4 per cent in the US).LIC has even provided insurance cover to five million people living below the poverty line, with50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC'sat 74 per cent are higher than that of global average of 40 per cent. Compounded annual growthrate for Life insurance business has been 19.22 per cent per annum.

General Insurance Corporation ion of India (GIC)

The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by 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 operatingcompanies, namely, (i) National Insurance Company Limited; (ii) New India AssuranceCompany Limited; (iii) Oriental Insurance Company Limited; and (iv) United India InsuranceCompany Limited.
29

(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. Besides the domestic market, the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED TO ENTER INTO INSURANCE BUSINESS: 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).

Some major private players in life insurance industry.

1.

HDFC Standard Life Insurance Company Ltd.

30

HDFC Standard Life Insurance Company Ltd. is one of Indias 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.), Indias 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 our group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one of India's leading multi-business corporations and New York Life International, the international arm of New York Life, a Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs 1782 crore. Max New York Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has around 92,667 agent advisors at 712 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. Max New York Life has put in place a

31

unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 137 offices dedicated to rural areas. Max New York Life offers a suite of flexible products. It now has 37 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them in taking important financial decisions at every stage in life and stay financially independent. The company is one of the fastest growing insurance companies in India and has shown remarkable growth since its inception in 2001. Kotak Life Insurance employs around 5,565 people in its various businesses and has 197 branches across 141 cities. 5.Birla Sun Life Insurance Company Ltd.
32

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Lifefinancial Services of Canada.

6.Tata AIG Life Insurance Company 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 Groups pre-eminent leadership position in India and AIGs global presence as one of the worlds 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 per cent. Tata AIG Life provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

7.SBI Life Insurance Company Limited SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market value and a European leader in global banking and financial services, is one of the oldest foreign
33

banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the bancassurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Bancassurance, Agency and Group Corporate. SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBIs access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion. Agency Channel, comprising of the most productive force of more than 63,000 Insurance Advisors, offers door to door insurance solutions to customers.

8. ING Vysya Life Insurance Company Private Limited ING Life was established in 2001 as a joint venture between ING Insurance International B.V. (INGI), ING Vysya Bank Limited and GMR Industries Limited. Presently, INGI, Exide Industries Limited, Ambuja Cement Ltd, Enam Group are the joint venture partners

9. Allianz Bajaj Life Insurance Company Ltd.

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Company and Bajaj Finserv.
34

Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world.

10. Metlife India Insurance Company Pvt. Ltd. The MetLife companies are one of the world's largest and most respected financial services organizations. For over 140 years, we've been helping people build financial freedom. For some, this means protection for their families. For others, it means wealth optimization or preservation. Combined with our innovation, this makes the MetLife companies truly formidable players in the Life Insurance industry. MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 50,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country. For more information about MetLife, please visit the companys website at www.metlife.co.in. MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance inforce), with over 140 years of experience and relationships with more than 90 of the top one hundred FORTUNE 500 companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions

35

11. AMP SANMAR Assurance Company Ltd.

AMP Sanmar Life Insurance Company Limited was a 26:74 joint venture between AMP Australia and Sanmar Group. The initial paid up capital of the joint venture was Rs. 125 crores and an initial target of selling around 30,000 policies in the first year of its commencement.

Some important players in general insurance industry

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram FinanceLimited started its operations from March 2001. The company is Head Quartered at Chennai, andhas two Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limitedand Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG,Germany.

3. ICICI Lombard General Insurance Company Limited

36

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management. Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa Group & Mitsui Sumitomo. Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh policies in its first calendar year of operations. The company has a pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, offers the complete range of insurance for automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several specialized financial lines.

37

6. Reliance General Insurance Company Limited.

Reliance General Insurance is one of Indias leading private general insurance companies with over 94 customized insurance products catering to the corporate, SME and individual customers. The Company has launched innovative products like Indias first Over-The-Counter health & home insurance policies. Reliance General Insurance has an extended network of over 200 offices spread across 173 cities in 22 states, a wide distribution channel network, 24x7 customer service assistance and a full fledged website. It is also Indias first insurance company to be awarded the ISO 9001:2000 certification across all functions, processes, products and locations pan-India.

7. IFFCO Tokio General Insurance Co. Ltd

IFFCO-Tokio General Insurance (ITGI) was incorporated on 4th December 2000 with a vision of being industry leader by building customer satisfaction through fairness, transparency, and quick response. It is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan

8. Export Credit Guarantee Corporation Ltd.

Export Credit Guarantee Corporation of India Limited, was established in the year 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.

Being essentially an export promotion organization, it functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community.
38

ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores.

9. HDFC-Chubb General Insurance Co. Ltd. HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC Limited, Indias premier Housing Finance Institution & ERGO International AG, the primary insurance entity of Munich Re Group. HDFC ERGO focuses on providing the Right Insurance Solution for all. We offer our customers complete range of general insurance products ranging from Motor, Health, Travel, Home and Personal Accident in the retail space and customized products like Property, Marine and Liability Insurance in the corporate space.

39

Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy, which see increased savings, to the infrastructure sector, which can look forward to long term funding being available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies.

40

MANAGEMENT

Mr. Gajendra Nagpal

Founder & CEO

Mr. Gajendra Nagpal is the founder and Chief Executive Officer of Unicon Financial Intermediaries Pvt. Ltd. a financial services company which has emerged as a one-stop investment solutions provider. Under his dynamic leadership, Unicon has grown from strength to strength and he has helped shape the company into one of the most recognized names in the financial services space. With Unicon, Mr. Nagpal has brought to life his vision of a company that provides the most useful and ethical investment solutions and which will be guided by values driven approach to growth, client service and employee development. Mr. Nagpal brings with him over 16 years of experience in the stock market including the rich experience of building a retail broking network. He is well respected in the industry for his stock broking experience. Prior to founding Unicon, Mr. Nagpal has held senior positions at the regional and national levels with Kotak Securities and Indiabulls. At Indiabulls, Mr. Nagpal was a member of the core management team and played a leading role in the growth of the companys network to 100 locations and employee strength of 1500. Mr. Nagpal is a management graduate by qualification. In his spare time he likes to swim and listen to old Hindi film music.

41

Mr. Ram M Gupta Co-Founder & President Mr. Ram M. Gupta is the President and Co-Founder, Unicon Group and a member of the core leadership team of the organisation. Mr. Guptas key responsibility areas include driving sales for Equity (Online and Offline), Commodity, PCG and the Business Alliances divisions. He has over a decade of stock market experience behind him and has worked with some of the most prominent names in the financial services space. He started his career with Karvy Stock broking and went on to hold regional level positions with Indiabulls Securities. At UNICON, Mr. Gupta has been instrumental in building the sales team from scratch to its current strength of over 1000 relationship managers spread across 89 locations. With his aggression and dynamism, Mr. Gupta brings energy to the team and he believes in leading by example. He holds a Masters Degree in Business Management with specialisation in Finance. In his spare time he enjoys swimming, playing cricket and spending time with his children.

Mr. Y.P. Narang Head - Fixed Income Group Mr. Y.P. Narang is the Head, Fixed Income (Debt) Group at UNICON. His areas of responsibility include looking after Money Market, Government Securities and Bond Market, Corporate Finance and Merchant Banking. Mr. Narang was instrumental in setting up and providing strategic direction to the Fixed Income Vertical at UNICON. Under his aegis, the vertical was converted into a profit centre within six months of its establishment. Mr. Narang, a qualified Cost Accountant and certified Financial Planner, has a rich and varied professional experience spanning over 36 years. His last assignment prior to joining the UNICON Group was as General Manager & CFO, Punjab National Bank where he provided leadership and direction for the overall financial management of the bank. Mr. Narang had headed the Treasury department of Punjab National Bank for almost two decades starting from 1986 and he pioneered the banks investment in new investment products such as Interest Rate Swaps, Floating Rate Notes, US Treasury Bonds etc. His areas of responsibility also included handling public issues of the bank. He was founder Managing Director of PNB Gilts Ltd. and held the position of Senior Executive Vice President, PNB Capital Services Ltd. where he
42

handled Merchant Banking assignments, Inter-corporate Deposit & Investments. Mr. Narang possesses domain expertise in Dealing in Sovereign Paper, Money market/ Fixed Income instruments and Merchant banking. He has been a familiar presence at several prestigious Analysts meets both in India & Abroad. His expertise has also been utilized in his capacity as a member of various committees of IBA, NSE & FIMMDA. In recognition of his manifold contributions, the Association of Financial Planners (AFP) India awarded him CFP certification in February, 2004. In his spare time, Mr. Narang likes to read management books especially those pertaining to investing.

Mr. Sandeep Arora Chief Operating Officer Mr. Arora brings with him over 12 years of experience of managing operations of stock broking company.Mr. Arora before taking over as head of operations at Unicon was responsible for managing the operations of Indiabulls Securities Ltd. Mr. Arora is supported by his team of over 350 people helping him to give world class service to the clients.

Mr. Vikas Mallan Chief Financial Officer, Head Distribution Mr. Vikas Mallan is the Chief Financial Officer & Head Distribution, Unicon Group. Mr. Mallan oversees all Finance and Accounting related aspects and also heads the Distribution of Life Insurance, General Insurance, Mutual Fund, IPO & Real Estate. He is supported by a team of around 1800 dedicated employees nationwide. Mr. Mallan is a qualified Chartered Accountant, Company Secretary and Cost Accountant by profession. He has over 17 years of experience in the area of finance. Prior to joining Unicon, Mr. Mallan has held senior level positions with reputed companies like Rediff.com, Reliance Telecom and Koshika Telecom. His extensive experience also includes the NASDAQ listing of an Indian internet company and Head of Finance of a leading Law firm. Mr. Mallan is fond of sports and listening to music.

43

Mr. Trinadh Kiran National Head(E-Broking) Mr.Trinadh Kiran is an MBA marketing professional from Aligarh Muslim University and has done 10 months research in Capital Markets from IIM-Ahmedabad. He brings with him a total work experience of 9 years and has worked with almost all big giants of capital market like India Infoline, India Bulls and NetWorth Stock Broking. He is associated with Unicon since June 2005.He has extensive knowledge of Retail Broking and expertise in E-Broking.

Mr. Subhash Nagpal Director - Strategic Planning & Distribution Mr. Subhash Nagpal is the Director, Strategic Planning and implementation, Unicon Group. An engineer by profession, Mr. Nagpal brings with him more than 18 years of experience in Sales & Marketing in the automobile industry. He has worked with some of the most respected names in the automobile sector including Honda, Yamaha and New Holland. During his tenure in Honda and New Holland, he was a member of the core management team and played a pivotal role in establishing the companys growth in its early years in India. His last assignment was with Honda Motorcycles and Scooters India, where he was a Divisional Head of profit centre in Sales & Marketing Division for more than eight years. Mr. Nagpal believes in the power of teamwork towards achieving goals. He also believes in fostering a democratic culture within teams wherein everyone has the freedom to express their opinions in the spirit of promoting healthy discussion before taking strategic decisions. Mr. Nagpal is fond of singing, listening to old Hindi songs and watching movies. Kishore Kumar and Dev Anand are amongst his favourite singers and actors respectively. He likes to wind up his day by watching Mr. Beans and WWF-Smack down with his son.

Ms. Anjali Mukhija

44

Chief Compliance Officer Ms. Anjali Mukhija heads compliance. She brings with her 14 years of experience in the stock markets.Her current job profile includes broking operations,client relations & grievance redressal, coupled with Public dealings.Prior to joining Unicon, she was with the National Stock Exchange,Delhi Regional Office for 10 years and had held senior position for a brief period in a reputed broking house.

Mr. Sandeep Mahajan Head (Equity Broking-Offline) Mr. Sandeep Mahajan is the Head (Equity Broking-Offline), UNICON Group. Mr. Mahajan heads a team of over 1000 dedicated resources and handles over 80 branches. He has a career span of over 18 years embellished with vast and immaculate experience in financial services ranging from Stock Broking, Investment Banking ,Debt Syndication & Asset Management . He has held critical positions at the regional & national level with some of the biggest names in financial services arena like IL&FS Investsmart, Kotak Securities ,Sun F&C Mutual Fund & RR Financial Consultants. His last assignment was with Citigroup Smith Barney. In his spare time, Mr. Mahajan enjoys traveling and reading.

CONCEPT BEHIND UNICON

45

Unicon provides a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services.

Unicon offers a single window facility, enabling you to access, amongst others. Equity, and Commodity Derivatives Offshore Investments, IPOs, Mutual Funds, Life Insurance & General Insurance Products.

Facilities Offered by Unicon * De-materialization: You can submit your physical shares at the Unicon branch for dematerialization into electronic form. * Re-materialization: You can also request for Re-materialization which enables you to convert the dematerialized shares into physical form. * Transfer: Inter and intra depository services are available through which you can transfer shares. * IPO: You can apply for IPO using your demat account details and on allotment the securities are transferred directly to your demat account. * Corporate Actions:
46

While holding your stock in demat account, in case you are eligible for any bonus and rights issues the allotment would be transferred to your demat account. * Easi: You can view your demat account over the Internet and avail a host of services. This facility empowers our clients to view, download, print updated holdings with respective valuations.

Why UNICON ?
Unicon is the most cost-effective, convenient and secure way to transact in a wide range of financial products and services.

47

Unicon customers have the advantage of trading in all the market segments together in the same window, as we understand the need of transactions to be executed with high speed and reduced time. At the same time, they have the advantage of having all Advisory Services for

INSURANCE PLANS

Life Insurance, General Insurance, Mutual Funds and IPOs also. Unicon is a customer focused financial services organization providing a range of investment solutions to our customers. We work with clients to meet their overall investment objectives and achieve their financial goals. Our clients have the opportunity to get personalized services depending on their investment profiles. Our personalized approach enables clients to achieve their Total Investment Objectives. Our key product offerings are as follows: Equity Commodity Depository Distribution NRI Services Back Office Fixed Income

BUSINESS PARTNER
Unicon Investment Solutions is one of the most revered and fastest growing financial services powerhouse having several accolades to it's name. We are determined to provide the best and state of the art basket of investment products & solutions to our esteemed clients. Unicon's name is backed by high caliber human resource and high end infrastructure to address the ever growing needs of our clients and partners. Unicon boasts of bringing the best of the products and services with "Affordability & Quality" occupying the centrestage. We have a PAN India network with strong team of over 450 Business Partners who are assisting us to tap the retail & corporate clientele and make Unicon accesible in the nook and crannies of the nation.
48

Presently we have customer base of over 100,000 individual/ corporate/

Max New York Life Insurance

Protection Plans: Five Year Renewable and Convertible Term Insurance Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-Participating) plan not only provide you with a low cost insurance cover during its tenure of five years, it also helps you plan in advance for various future needs and your family's financial security, should anything unfortunate happen to you. Offering a guaranteed Death Benefit, this plan is particularly useful as a short-term protection plan. An important feature of this policy is that it allows the insured to convert the policy to a regular policy during the tenure of the policy. Level Term (Non Participating) Policy Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a very low cost and reduces the consequent hardship your family may have to bear in the unfortunate event of your death. Incase of the unfortunate death of the policy holder during the term of the plan, an amount equal to the sum assured is paid to the nominee. Children Plans: b Children's Endowment to 18 (Par) Plan Max New York Life presents Children's Endowment Participating Insurance to age 18 with an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy which is especially designed to enable you to provide for higher education of your child and take care of your childs future needs in case of spiraling costs. Children's Endowment to 24 (Par) Plan Max New York Lifes Children's Endowment Participating Insurance to age 24 provides an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy enables you to provide for various events in your childs life such as a grand wedding of your child. This excellent plan is a participating plan, which is also eligible for bonuses and Max New York Life may declare these bonuses from time to time and from the
49

third policy year. An important feature of this plan is that the entire sum assured is paid out on maturity and the plan automatically vests when the child turns 18. Stepping Stones (Par) Plan Max New York Lifes Stepping Stones is a smart way to plan your childrens education and their future irrespective of whether you are there or not. It provides you with regular money when it is required. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs by surrendering accumulated PUAs. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps Plan Introducing Max New York Lifes regular premium unit linked life insurance childrens plan SMART Steps, which will help you plan for your child's future in a SMART way and takes your worries away. This plan offers the required financial protection for your loved ones if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps Plus A regular premium unit linked life insurance plan, Max New York Lifes SMART Steps Plus will help you plan for your child's higher education, marriage, and financial security. This plan offers no-compromise 360 degree protection to your children even if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future. SMART Steps Single Premium Plan Max New York Lifes SMART Steps Single Premium policy will help you plan for your child's future in a SMART and organized manner. Apart from offering 360 degree protection to your child if you are not alive, this plan also provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.
50

Investment Plans: Life Maker Premium Investment Plan The latest Life Maker Premium Investment Plan gives you a lot of choices - especially when you are looking for Great life style, Big Home, your own well established Business and top of all Protection for your family. Our Unit linked Life Insurance plan can be the financial cornerstone for your objectives. Max New York Life Insurance provides you a powerful investment-cum-insurance plan where you can direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns. You can choose to invest your premiums in one or more of these funds, basis your risk taking ability.

Life Maker Platinum - a Unit Linked Investment Plan With the Life Maker Platinum - a Unit Linked Investment Plan, you can meet all your financial needs, without the tedium of managing multiple products. In this plan, you can direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns. You can also choose to invest your premiums in one or more of these funds, basis your risk taking ability. Life Maker Gold Plan This plan enables you to choose an attractive investment fund, enjoy free loyalty units and tax benefits on premiums and maturity value. Life Maker Gold Plan also provides you insurance cover, in which, your nominee will get the Sum Assured plus the Fund Value to your nominee(s), in case of unfortunate event of your death. Our Plan also offers you the flexible investment feature, where you can choose one out of four attractive funds options and also change your risk return profile of your existing investments by switching across funds with our high customization feature. Life Invest Plan This policy will provides you comprehensive protection from 3 Ds i.e. Death, Disease and Disability. Apart from loyalty units and tax benefits, the maturity feature of this policy will also pay
51

you the fund value. Flexible Investment with choice of four attractive fund options, lump sum investment in your plans through top ups as per your cash flow, increasing death benefits, flexibility to choose premium payment terms are few of the benefits you can enjoy through this policy. SMART Assure Plan Our smart assure plan also enables you to make partial withdrawals at the time of unexpected expenses. The switching feature of this policy provides you the facility to change the investment pattern by moving from one fund to other fund(s) amongst the funds offered under this contract

Retirement Plans: Easy Life Retirement (Par) Plan Catering to the diverse set of needs of various customers looking for retirement planning, Max New York Life offers some splendid retirement plans, which would suit their budget and lifestyle. Max New York Life's Easy Life Retirement Plan Regular Premium/Single Premium (Participating) Policy is designed to help you save money for your retirement. It also provides you with an opportunity to take home a regular retirement income (i.e. pension). SMART Invest Pension Plan Offering competitive returns to secure the golden years of your life, Max New York Life's SMART Invest Pension Plan is a comprehensive unit linked pension plan to meet your post retirement financial needs, ensuring you complete peace of mind. One-third of the corpus can be commuted at vesting age the amount commuted are eligible for tax exemption u/s 10A. Health Plans: LifeLine-MediCash Plan Max New York Life's Lifeline-MediCash health Insurance plan provides you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). LifeLine-MediCash Plus Plan Presenting Lifeline - MediCash Plus health Insurance plans from MNYL that provide you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you
52

will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid under LifeLine MediCash Plus for more than 400 listed surgeries that you may undergo. LifeLine-Wellness Plan Max New York Life's LifeLine-Wellness is a health plan, which would provide you 360-degree benefit in terms of long tenure of coverage, coverage for 10 critical illnesses, and permissible tax benefit under an Income Tax Act. LifeLine-Wellness Plus Plan Max New York Life's LifeLine-Wellness Plus health plan provides a wonderful benefit system in terms of long tenure of coverage, coverage for 38 critical illnesses and tax benefit. LifeLine-Safety Net Plan Recognizing the need for a complete all round financial protection for you and your family, Max New York Life Insurance Company offers you a term cum health insurance - LifeLine-Safety Net , the new age insurance covering death, disability, disease and accident under one single plan. SOME OF THE OTHER PLANS ARE: SAVINGS PLANS: W hole Life Participating 20 Year Endowment (Par) Endowment to Age 60 (Par) Life Gain Plus 20 (Par) Life Gain Plus 25 (Par) Life Pay Money Back Life Gain Endowment Life Partner RURAL PLANS: Max Suraksha
53

 Easy Term Policy STRATEGIC PRODUCTS PLANS:

Bancassurance Super Saver Bond Capital Builder

Additional Distribution Max Mangal Max Vriksha Capital Builder

Max Amsure Future Builder Family Money Back Bonus Builder Business Builder Secure Returns builders

54

55

OM Kotak life insurance

In this policy, the investment risk in the investment portfolio is borne by the policyholder. Overview How you shape your tomorrow depends greatly on how you build on your today. Kotak Smart Advantage addresses you current financial needs so that you do not have to worry about building on for tomorrow. It provides an optimal mix of insurance and investments, thus protecting your family against any odds along with preparing a corpus for your future. Why An Ideal Plan Kotak Smart Advantage is an intelligent unit-linked plan that is based upon the idea of regular savings and systematic accumulation of wealth in the long term. It offers guaranteed returns coupled with the benefit of flexible life cover and up to 100% allocation of your money, making it best suited for an individuals financial needs.

Advantages Guaranteed returns of up to 275% of the first years premium at maturity Loyalty bonus at regular intervals to boost the fund value Up to 100% allocation of premiums Flexibility to choose Life Cover Unique funds offering you maximum opportunity for growth

Key Features Guaranteed Additions Kotak Smart Advantage Plan offers guaranteed returns. Your first years premium contributes towards guaranteeing you an Assured Addition Advantage that boosts your fund value at regular intervals throughout the term of the policy. The longer your premium paying term, the higher will be the value of the advantage.
56

The Assured Addition Advantage is as a powerful combination of the following two benefits, both of which are paid, provided your policy is in force and all premiums are fully paid up to date: A. Fixed Advantage The Fixed Advantage benefit is an assured value guaranteed at the end of your premium payment term. This benefit is calculated as a percentage of your first year premium depending on the premium payment term chosen. B. Dynamic Advantage The Dynamic Advantage benefit is an assured bonus addition credited to your fund value at the end of every 10th, 15th, 20th, 25th and 30th policy year. This benefit will be calculated as a percentage of the average value of funds in the three years preceding the benefit allocation. Wealth Maximization Avenue This plan offers you 3 well-defined fund options to manage your capital according to your risk appetite over the term of the policy, Opportunities Fund ,Dynamic Floor Fund Dynamic Bond Fund High Premium Allocation Kotak Smart Advantage Plan gives you 100% premium allocation for annual premium sizes equal to and above Rs.36,000, resulting in greater returns. Low premium allocation charges of up to 2% are charged for annual premiums below Rs.36,000. These charges reduce to 0% from the 11th year onwards. Protection for your family (Death Benefit) In the unfortunate event of death within the term of the policy, your beneficiary would receive the sum assured or the fund value in the Main Account plus the Fixed Advantage Benefit, whichever is higher, plus the fund value in the Top-up account. This plan offers you flexible life cover options to choose from for the same annual premium. Tax Benefits Tax Benefits can be availed under section 80C and 10(10D) of Income Tax Act, 1961. Tax benefits are subject to change in tax laws. Please consult your tax advisor for details.

TATA AIG LIFE

This unique policy is an ideal planning vehicle to fund your retirement. It provides a steady income and insurance coverage for life. Premiums are payable only for the first 15 years, and can be used to cover the future expenses of your children.

57

Key features include:

A guaranteed annual coupon of 5% of the sum assured every year for the rest of the insureds term from the 10th policy anniversary. Yearly cash dividends are available from the 6th policy anniversary onwards (depending on Company performance). The entire sum assured is paid tax-free as per current Income Tax Laws.

Tax Benefits, Riders and Age Eligibility

The guaranteed 5% coupon and non-guaranteed cash dividends are tax free as per current Income Tax Laws. Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax Act, 1961.* Disability, Accident, Term and Critical Illness riders are available for added protection at a nominal extra cost. (For juveniles, only Payor Benefit Rider is available).

Policy available for persons between 0 years and 60 years of age.

SBI Life
Introduction: In the current volatile market scenario you need a plan which not only protects your investment, but also enables you to get market related returns. SBI Life - Smart ULIP is the perfect answer to your need, and will give you not only Guarantee on select NAVs during the first seven years, but also gives you the added attraction of participating in the market upside!
58

Key Features: Guarantee of the highest of select NAVs, during the first seven years on Maturity Investment cum Insurance plan giving market related returns. Convenience through shorter premium paying term, giving you a choice between 2 premium paying terms (PPT). Power of more - Guaranteed Maturity NAV, continues beyond the premium payment term Innovative structured investment fund -FlexiProtect Fund. Hassle free plan - we manage your investment, giving you maximum opportunity for growth while protecting your investments against adverse market conditions. Attractive Tax benefits under the Income Tax Act, 1961 Product type: This is a unit linked, non participating insurance plan.

Life Insurance Corporation

The Endowment Assurance Policy

Moderate Premiums High bonus High liquidity Savings oriented.

This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time. Premiums are usually payable for the selected term of years or until death if it occurs during the term period. Suitable For: Being an endowment assurance policy, this plan is apt for people of of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise.
59

The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time. Disability Benefit: In case policy holder becomes totally and permanently disabled due to an accident before reaching the age of 70 and the policy is in full force, he will not be required to pay further premiums, (the Disability Benefit is available in respect of the first Rs.20,000 sum assured on any one life) and the policy will continue to be in force. Accident Benefit: By paying a small extra premium of Rs.1 per Rs.1000/- sum assured per year he or his family are entitled to the following benefits on death or permanent disability caused by accident. Even students above the age of 18 years can avail of this benefit. Premium Stoppage: If payment of premiums ceases after at least THREE years' premiums have been paid , a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in the policy. Bonus: Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but only if it is a with profits policy. Every year the Life Insurance Corporation distributes its surplus among policyholder to with profits polices in the form of bonuses. Substantial bonuses have been declared in the past after each valuation of policy liabilities. Many more policies there avaiablible for by different insurance
60

companies.Due to the bounation of time some important policies described above.

Frankly speaking, any job or the task, have the specific objective i.e. what is need and what is the requirement of the particular work. In the same way my objective is also to learn something from the summer internship program . It means that the training program in any reputed company give the market knowledge of its subject matter of study. The right choice of the company in which a student has to do the training, is also the part of the learning and what he/she want to learn in the summer training. In the short span since the insurance sector was opened up, Many companies have literally dictated the markets evolution. Catering to all age and income segments, the company stated out with the traditional insurance policies that were easy to understand, the idea was to entice customers used to LICs style of functioning. Unicon began exploring new areas; a super market makes buying an insurance policy a breeze. With a wide range of policies from some of the most reputed insurance companies in the countries.All under one roof.

61

What has been in favour of Unicon is the range of product in each segment of life insurance-traditional, unit-linked and single premium option, that are for retirement plan or child plan. With such a comprehensive bouquet, it caters to the financial goals of a customer. Unicon a growing reputed company give the good platform in selling of the product like insurance, Equity & commodities, derivative, IPOs, offshore investment, mutual fund, gold coins etc. So the objective of study is to see in the basket of product and satisfaction of customers with the company through research work in NOIDA.

The scope of the study refers to the job that to know about the activities of the organization. The study means that the analysis of the products of the company on which he has to focus.

During the summer training the volunteer need to find out the corporate strategies of the running company and The mile stone which the company has covered during its journey. In the summer training, it is necessary for the student that he /she involve with the experience guys to get the knowledge about the company. That is how the company has got the success, Or if it is going in the loss, why.

62

1.4 Limitations of the Study

It was difficult to get appointment from the person whom I know because of their busy schedule. Since the project had to be completed within eight weeks, it was too short a time to convert the prospective buyers into customers.

Since the study involved a through analysis of the insurance market and relative study of various players offering the similar products and that of similar, it 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.

63

64

RESEARCH METHODOLOGY
Objective Scope of study Sampling methodology Limitations

65

RESEARCH METHODOLOGY
TITLE: To Study Potential of Life Insurance Industry in NOIDA.

TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on Max New York life Insurance. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied.

OBJECTIVE
Main objective of the research is to have an analysis of life insurance industry in NOIDA. To accomplish this objective it has been divided into five. To determine reasons behind opting for an insurance. To know the most preferred policy.

To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by an insurance agent. To study the types of benefits provided by insurance services.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with Unicon in focus and the various segments of Insurance that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

66

SIGNIFICANCE TO THE INDUSTRY:

This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends.

SIGNIFICANE FOR THE RESEARCHER:

To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for UNICON.

RESEARCH DESIGN
NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire.

SAMPLING METHODOLOGY
Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived
67

only after certain important changes were done. Thus my sampling came out to be judemental and convinent Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc. Sample size: The sample size was restricted to only 100, which comprised of mainly peoples from different regions of NOIDA due to time constraints. Sampling Area: The area of the research was NOIDA , India.

The research is both primary and secondary in nature. Research includes collection of: 1) Primary data from SEBI 2) Secondary data is collected from various books papers, journals, financial magazines and Internet site. The analysis is done in a subjective manner.

Research Design
Research design includes decisions regarding what, where, when, how much, by what means data to be collected. We can use any of the research methodologies i.e. Quantitative or Qualitative. But it must ensure that the methodology used for the type of research being conducted is appropriate. We can use Qualitative research under the following conditions: Researcher is looking to pursue a subject in real detail, The research involves relatively small groups of people Researcher is looking for the flexibility to move between subjects

68

dependent on how participants respond, When attempt is to determine strength of feeling on a certain subject, and When attempt is seek the connections between issues, We can use Quantitative research under the following conditions: The research needs to cover a large number of different subjects, Large numbers of people need to be included in the research One need to have measurable comparison data between different groups, Researcher wants to compare performance against other external organization. Researcher wants to identify correlation with other research date (e.g. customer satisfaction data), Researcher wants undertake some form of advanced statistical analysis on the results (e.g. regression or correlation analysis). Effect of FIIs on Capital market is the most common form of quantitative research.

2.2 DATA COLLECTION METHODS

Using Primary and Secondary data, researchers can identify marketing opportunities and problems such as the following:

Measurement of market potential Determination of market characteristics Market share analysis Sales analysis Business trends Competitive product studies Short-range forecasting New product acceptance and potential Long-range forecasting Pricing studies
69

Testing of existing products Establishing of sales quotas and territories Measurement of advertising effectiveness Primary and Secondary Data

The Research Process Uses Both Primary and Secondary Data.

Primary research is original data collected for the problem at Hand, usually at a significant cost. Typical examples are sampling and focus groups. Most marketing research consists of surveying samples of people either by personal interview, by mail, by telephone, or these days, via computer. Secondary research makes use of existing, publicly available data. Although the match between the problem and the data is not likely to be exact with secondary research, there are some significant benefits. You can save time and money by utilizing existing information, and often the secondary research process will clarify the amount and kind of primary research that will be needed.

PRIMARY DATA COLLECTION

The various methods by which primary data can be collected are: 1. Personal Interviewing
Door-to-Door Interview Executive Interview Mall Intercept Surveys 70

 Self-Administered Questionnaires
Purchase Intercept Technique Omnibus Surveys

2. Telephonic Interview
Selecting the Telephone Numbers Call Outcomes

3. Mail Surveys

SECONDARY DATA COLLECTION

Last year research report Employees hand book Material provided by the company Magazines Newspapers journals Press releases Demographic data Industry analysts reports Marketing research reports Public opinion polls

2.3 Data collection instrument Purpose The purpose of this collection of tips is to improve the ability of your assessment team to create data-collection instruments and to collect data. It provides advice on the development of
71

instruments, data-collection methods and data analysis for group techniques, questionnaires, and interviews three common data-collection approaches. If considered at the planning stage, these tips will help your team determine which type of data collection is appropriate for addressing each key issue. GROUP TECHNIQUES The following list provides an overview of the procedure:

Define the purpose [not discussed below] Develop the questions Develop a guide Arrange a schedule Set up the groups Conduct the sessions Record the data Analyze the data Present the findings [not discussed below]

INTERVIEWS
Whether interviews are conducted face to face or over the telephone, following certain procedures can help you to get the most out of them. These procedures are as follows:

Determine the approach Determine general and specific research questions Draft the interview questions Pilot test the protocol Arrange a schedule of interviews [not discussed below] Prepare to record the responses Conduct the interviews Analyze interview data

QUESTIONNAIRES
The following procedures are recommended for a questionnaire survey:
72

Determine the major questions Draft questionnaire items Design the questionnaire Pilot test the questionnaire Develop a data-collection strategy Develop a cover letter and send the questionnaire Monitor the response Analyze the survey data

Six steps for constructing effective questionnaires: summary

1. Determine your questions

What do you intend to find out? How will the information be helpful? Which issues will relate to the questionnaire?

2. Specify your sub questions

List all the things you want to find out; Indicate those sub questions to be included in the questionnaire; and Refine your list.

3. Draft the items

Translate questions into items; and Formulate multiple-choice, fill-in-the-blank, rating-scale, list, comment-on, and Likert-scale questions.

4. Sequence the items

Group the items into topic sections; Group the items by question type; and
73

Rewrite the items as necessary.

5. Design the questionnaire

Order and number questions; Layout a booklet format; and Arrange the questions on pages.

6. Pilot test the questionnaire

Clarify the wording of the questionnaire with respondents; Group test the draft questionnaire; Discuss the questionnaire with the group; and Revise the questionnaire and retest it if necessary.

2.4 Data Analysis The scale used in Questionnaire is a five point itemized rating scale in which:

Meant for Very Satisfied. Meant for Satisfied.. Meant for Dissatisfied. Meant for Very Dissatisfied. Meant for not Applicable.

The questions were divided in different parameters on the bases of which collected data was analyzed.

LIMITATIONS OF THE RESEARCH

74

1. The research is confined to a certain parts of NOIDA and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

75

76

Markets
In tune with the global stock markets that began to recover from the second half of 2003; Indian stock markets too witnessed rapid growth. Indias two leading indices, the most popular BSE Sensex, and the one most used by the markets the National Stock Exchanges S&P CNX Nifty rose to record levels. Both primary and secondary market activity experienced sharp surge. Much progress was made in further strengthening and streamlining risk management, market regulation and supervision. A few aspects of the major developments in the Indias stock markets are described below. And the insurance sector is also play an important role in the growth of the financial market.

Market Structure
Indian securities market is fairly large as compared to several other emerging markets. There are 22 stock exchanges in the country, though the entire liquidity is shared between the countrys two national level exchanges namely, the National Stock Exchange of India and the Bombay Stock Exchange Ltd. The regional stock exchanges are in pursuit of business models that make them viable and vibrant. Meanwhile, these exchanges have become members of the national level exchanges through formation of subsidiaries whose business is showing continuous growth and progress. The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to 9,335 in FY06. The number of brokers in all the exchanges together peaked to 10,213 in the year FY01 but gradually declined thereafter when the regional stock exchanges began to lose business in the light of wide ranging market structure reforms introduced since then. In FY01, when the markets were in upswing, several regional stock exchanges were generating business owing to the availability of deferral products, such Badla and different settlement calendars prevailing at that time in these exchanges. For instance in FY01, the Delhi Stock Exchange registered cash market turnover of Rs 838.71 bn; Uttar Pradesh Stock Exchange, Rs 247.47 bn, Ludhiana Stock Exchange Rs 97.32 bn, Pune Stock Exchange Rs 61.71 bn as against Rs 13,395.11 bn of the turnover at the National Stock Exchange and Rs 10,000.32 bn turnover at the Bombay Stock Exchange. With the abolition of the

77

deferral products and introduction of uniform T+2 settlement cycle, the liquidity in these exchanges flowed to the national level system consisting of NSE and BSE.

Major Player in the Insurance Sector

There are many reputed companies in the market which provide the Insurance for living being and non living beings. The companies in life Insurance are as follows.

Life Insurer in Public Sector

Life Insurance Corporation of India

Life Insurer in Private Sector

Reliance life Insurance Company Limited ICICI Prudential Life Insurance Bajaj Allianz Life Insurance Tata AIG Life Insurance corporation Limited HDFC Standard Life Insurance Birla Sun Life Insurance SBI Life Insurance Kotak Mahindra old Mutual Life Insurance Aviva Life Insurance MetLife India Life Insurance ING Vysya Life Insurance Max New York Life Insurance Shriram Life Insurance Bharti AXA Life Insurance Co. Limited IDBI Forties Life Insurance Co. Limited Argon Religare Life Insurance Co. Limited

78

Why Financial Planning ?

Inflation
Cost of Education / Medical increasing exponentially

Rising Life expectancy

estimated to increase from 77 to 85 in next decade

Financial Planning

Protect lifestyle of family

Protection against the uncertainty

Balanced Asset Allocation

Investment and Protection

79

Inflation means Rs 10,000 would be

180000 160000 140000 120000 100000 80000 60000 40000 20000 0 10 20 30 10% 8% 6%

174494

67275 25937

80

81

Therefore Cost of Delaying would be high.

2000 1800 1600 1400 1200 1000 800 600 400 200 0 A B
Saving Retirem ent kitty

Power of Compounding

Saves From 25 to 35

Saves From 35 to 60

82

How to do your Financial Planning

Define & prioritize your goals

Set Goals
Current Status and Gap Analysi s
Create & Monitor Savings Plan
Project income, expenses & investments

Changing Lifestyle, changing Financial Goals

Investment and Insurance

Risk Appetite and Protection needs

83

Priorities in Financial Planning

Retirement Planning
Taking care of your long retirement years

Family Protection Define & Prioritize Goals

To ensure that the financial loss to the family is negated, in case something unfortunate befalls.

Asset Creation
Creation of physical and financial assets

Childrens Higher Education

Matching the increasing educational expenses and protecting against any uncertainty.

84

Retirement Planning
Inflation Rising Life expectancy Financia l Plannin g

Average Life Expectancy would increase from 75 years to 80 years in the next two decades.

Asset Allocation Protecting lifestyle

What does this mean?

Working Retirement Years

The Yesteryears !!

Working

Retirement Years

As it looks today!!

85

Retirement Planning
Inflation

Rising Life expectancy

Living costs will increase dramatically over the next 20 years

Financial Planning

Asset Allocation Protecting lifestyle

1 0 y e a rs Taogdoa y % In c re a s ex p e c te d C o s t a fte r 1 0 y e a rs E 1 K g o f P o ta to R s 1 . 5 0 R s 1 5 . 0 0 1 0 0 0 % R s4 3 .0 0 1 L tr. O f P e tro lR s 1 7 . 0 0 R s 3 1 . 0 0 1 8 2 % R s5 7 .0 0 1 M u m -D li T ra in sT 3 5k0e. 0 0 s 1 7 5 0 . 0 05 0 0 % R ic t R R s8 7 5 0 .0 0

When do you spend more money- While at work or at Vacation??

So what do you think is Retirement for you?

Shouldnt you have enough provisions to take care of the increasing costs during your vacations- Retirement?

86

Retirement Planning
Rising Life expectancy

Inflation Financ ial Planni ng

Medical Science has advanced, but so have diseases and medical costs...
Protecting lifestyle

Asset Allocation

No. of Visits to Disease doctor/month Spondylitis Once in 3 months Arthritis Once in 2 months Asthma Once in 45 days Diabetes Once in a month

Cost in 1992 Cost in 2002 2500 8000 250 850 175 600 225 750

Projected cost in 2012 25600 2890 2060 2500

What you require is a Retirement Solution that will

Give you the flexibility of starting your pension whenever you wish to. Give you the control to invest for your retirement the way you want to. Give you the flexibility to choose protection on your life and health, if you want. Give you the flexibility to decide how you want to pay. Give you the flexibility to choose for your pension.

87

Childrens Education
Inflation

Higher
Rising Life expectancy

Financial

Cost of Education would not remain the same over the years...
Protecting lifestyle

Plannin gg
Asset Allocation

E d u c a tio n a l M ile e sto n te C o s te c te d C o s t P r s e E xp C la s s X th 10000 34500 C la s s X IIth 15000 62600 G r a d u a tio n 25000 139000 P o s t G r a d u a tio n 40000 270000
The costs have been worked at an inflation of 5% and actual increase of cost at 5%.

Education subsidies been slowly removed.

88

Childrens Higher Education

Inflation Rising Life expectancy Financ ial Planni ng

Protecting lifestyle

Asset Allocation

WHAT IF Your child does not have enough money for critical educational milestones.

WHAT IF. There is not enough money to take care of a quality upbringing of your child.

WHAT IF..Any unfortunate event jeopardizes your childs future.

89

What you want is a

you.

. That will free you of all your WHAT IFs

Provides your child the security, no matter whatever be the circumstances.

Solution that Guarantees your Dreams whatever be the uncertainty in the future.

90

Protection of Lifestyle
Inflation Rising Life expectancy

Do you have enough savings to protect your familys lifestyle

Protecting lifestyle

Financi al Plannin g

Asset Allocation

What is Human Life Value? - Capitalized value of your net earnings for the rest of your working span

Age
30 years 35 years 40 years

Human Life Value Index

8 Times 6 Times 3.5 Times

Assuming you have no present life cover. Rate of inflation is 5%, Income grows at 10% p.a. and you retire at the age of 50 years.

91

Protection of Lifestyle
Let us take an example: Ramesh is 35 years old and has an annual income of Rs4 lacs.

According totaken a house loan of Rs.10 lacs. He has also the simple HLV index:

Rameshs HLV = 6*Rs4 lacs= cover of Rs15 He presently has an insuranceRs 24 Lacs. lacs. Most of us would think it is enough. But is it so?? House Loan= Rs.10 Lacs. Total Cover he requires= Rs.34 lacs What he has = Rs.15 lacs.

Still you think it is enough?

Just think before investing

Prioritizing your long-term/short-term goals.

Analyzing your current financial position, therefore understanding the gap.

92

93

FINDINGS & RECOMMENDATIONS

94

FINDINGS & RECOMMENDATIONS

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. There is a large potential for insurance in India. 2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market.
95

3. Since Private players in 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. As 43% of the customers are even ready to go for insurance if a service provider away from their city is providing it. But inturn they should provide good products and services. The company should try to convince these customers and get them in its favor. GROWTH POTENTIAL At present life insurance penetration in India is quite low 3% of GDP. PHASE OF TRANSITION Life Insurance industry is under the phase of infancy after 50 years of monopoly. Competition from within and other sectors of financial market. Needs environmental support till it reaches a comfort zone

96

SURVEY
Graph Analysis Data Interpretation

97

DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE RESPONSE NO. OF RESPONDENTS Yes No Total 70 30 100 70% 30% 100% SHARE (%)

[F 1] ig
NO 30%

Y ES 70%

INTERPRETATION Of the sample size of 100 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.

98

TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE NO. OF RESPONDENTS LIFE POLICY NON LIFE POLICY BOTH 75 25 45 75 25 45 SHARE (%)

INTERPRETATION
75% of the respondents have only Life Insurance Policy. while 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

[Some of the respondents opted for two or more than two items]
99

PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANYS NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE Max New York Life TOTAL NO.OF RESPONDENT 78 3 10 7 2 100 SHARE (%) 78 3 10 7 2 100

INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.
100

BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

[Fig4]
F uture Investment 25% T ax Deductions 20% Cover F uture Uncertainty 55%

101

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.

FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 15 37 7 30 11 100 SHARE (%)

[Fig 5] REPUTATIO N OF COMPANY 11% LOW PREMIUM 30% MONEY BACK GUAARENT EE 15%

EASY ACCESS TO AGENTS INTERPRETATION 7%

102

LARGER RISK COVERAgE 37%

Majority of the respondent (37%) found larger risk coverage as the most attracted feature of the all.

Minimum respondents (7%) opted for easy access to agents. PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDENTS SHARE (%)

A saving tool A tax saving device A tool to protect your family

81 74 100

81% 74% 100%

[F 6] ig
120 100 80 60 40 20 0 A savings tool A tax saving device

As aving s tool, 81

A tool to protect yoour fam 100 ily,

A taxs aving device, 74

A tool to protect yoour fam ily

103

INTERPRETATION
family. [Some of the respondents opted for two or more than two items] 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your

PERSONS HAVING INSURANCE FOR Response self spouse children parents all No of respondents 40 28 21 18 11

[F 7] ig
45 40 35 30 25 20 15 10 5 0 Self Spouse Children Parents All

104

INTERPRETATION
Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse , 21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE RESPONSE NO. OF RESPONDENTS Tax saving Saving / Investment Family protection 80 80 100 50% 50.% 100% SHARE (%)

120 100 80 60 40 20 0 Tax saving

[F 8] ig
Tax saving, 80 Saving/Investm ent, 80

Family protection, 100

Saving/Investm ent

Fam protection ily

105

INTERPRETATION
80% of the Respondents opted for Insurance for tax saving benefits and

saving/investment both. But all of them, i.e. 100% of the respondents have opted for insurance for their family

protection.

[Some of the respondents opted for two or more than two items] SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE NO. OF RESPONDENTS Satisfied Not satisfied Not Responded Total 60 40 0 100 60% 40% 0.0% 100% SHARE (%)

Not res ponded 0%

[F 9] ig

Not s fied atis 40% S fied atis 60%

106

INTERPRETATION
60% of the respondents are more or less satisfied with their existing policy. 40% of the respondents are not satisfied with their existing policy. In this case all of those who have taken a policy have responded.

SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE NO. OF RESPONDENTS Satisfied Not satisfied Not Responded Total 45 55 0 100 45% 55% 0.0% 100% SHARE (%)

107

INTERPRETATION
45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded. NUMBER OF RESPONDENTS PAYING TAX RESPONSE NO. OF RESPONDENTS Paying tax Not paying tax Total 100 0 100 100% 0% 100% SHARE (%)

[F 11] ig
120 100 80 60 40 20 0 Paying tax Not paying tax

108

INTERPRETATION
Of the sample size of 100 respondents, all the respondents are paying tax.

RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS Fixed Assets 75 33% SHARE (%)

Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance

11 25 40. 10 70

5% 11% 17% 4% 30%

109

INTERPRETATION
75% of the respondents are with the view that Fixed Assets is the best form of

investment for securing their future. 70% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is 2nd highest and this shows that insurance is an important key for securing your future. [Some of the respondents opted for two or more than two items]

PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE RESPONSE After 25 years After 35 years After 45 years Anytime NO. OF RESPONDENTS 29 10 0 61 29% 10% 0% 61% SHARE (%)

INTERPRETATION

110

29% of the respondents are with the view that insurance should be bought after the age

of 25 years. 10% of the respondents are with the view that insurance should be buyed after the age

of 35 years. Whereas, 61% of the respondents are with the view that buying of insurance do not

have any thing to do with age i.e. there is no age limitations. It can be purchased any time according to the need. PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 67% 29% 26% 35% 24% 10% 0% SHARE (%)

[F 14] ig
80 70 60 50 40 30 20 10 0

INTERPRETATION
plans.
111

67% of the respondents have the opinion that Indian Insurance Companies have Rigid

29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance companies are Non-

aggressive.

24% of the respondents feel that products and services of Indian Insurance companies is

Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

[Some of the respondents opted for two or more than two items] WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY RESPONSE NO. OF RESPONDENT S A trusted name Friendly service & responsiveness Good plans Accessibility 81 49 81% 49% 82 71 82% 71% SHARE (%)

112

[F 15] ig
90 80 70 60 50 40 30 20 10 0 A trusted Nam e Friendlyservice & responsiveness Good plans Accessibility

INTERPRETATION
82% customers look for a Trusted name in a company for insurance. 81.5% customers look for a good plan in a company for insurance. Friendly service & responsiveness and Accessibility are also important factors looked

by customers in a company. [Some of the respondents opted for two or more than two items] PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 43% 44% 13% 100% SHARE (%)

113

Uncertain 13%

[F 16] ig
Y ES 43%

NO 44%

INTERPRETATION
The interested customers i.e. 43% are ready to go for insurance even away from a city if

services and products are worthwhile, which again is a good prospect (potential) for Max New york Life Insurance to take them on their favor.

PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE NO. OF RESPONDENTS Planning Not planning Total 87 13 100 87% 13% 100% SHARE (%)

114

Not Planning 13%

[F 17] ig

Planning 87%

INTERPRETATION Only 13% of the customers contacted are not planning for new investments presently. Whereas, 87% of the customers are still planning for new investments this can be a

great potential for Max New York Life Insurance to take them on their favor.

115

CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning to have its impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative player like ICICI Pru,Max New York Life,Om kotak,SBI Life,TATA AIG. LIC has never been known for prompt service or customer oriented methods and Private players can build on these factors.

116

117

BIBLIOGRAPHY
BOOKS
Marketing Research Marketing Research An Applied Orientation By Rajendra Nargundkar By Naresh K .Malhotra

WEBSITES REFERRED

Unicon. (2009). About us. Available: www.uniconindia.in/index.html. Last accessed 2009.www.sbilife.co.in

TATA AIG LIFE. (2009). About us. Available: www.tata-aiglife.com/index.html. Last accessed 30 june 2009.

www.maxnewyorklife.com www.licinia.com www.icicilombar.com www.iciciprulife.com www.kotaklifeinsurance.com www.maxnewyorklife.com www.thehindubusinessline.com www.economictimes.indiatimes.com

www.irdaindia.org

118

ANNEXURE

119

LLOYD BUSINESS SCHOOL

Plot NO-11, Knowledge Park-II, Greater Noida
NAME:ADDRESS:-

Mob no: -

. .. (In Numbers) Female Children = =

Married

Unmarried

FAMILY MEMBERS Male Adult OCCUPATION Student + +

Total Total

Employee

Self employed

Others

Mention

EARNING (Yearly) Up to 1 lakh 1-2 lakh 2-5 lakh 5-10 lakh Above

Do you have any insurance policy , (If YES, From which company) WHICH INSURANCE POLICY DO YOU HAVE? LIFE LIC Reliance life ICICI Prudential TATA AIG OM Kotak Max New York SBI life Other. NON-LIFE Policy type .. Policy type .. Policy type .. Policy type .. Policy type .. Policy type .. Policy type .. Policy type .. BOTH Sum Assure .. Sum Assured .. Sum Assured ..

Sum Assured .. Sum Assured .. Sum Assured .. Sum Assured .. Sum Assured ..

1. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN?

(RANK THEM) a) COVER FUTURE UNCERTAINITY c) FUTURE INVESTMENT b) TAX DEDUCTIONS d) ANY OTHER _________ (Specify)

120

2. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM) a) LOW PREMIUM c) MONEY BACK GUARNTEE e) EASY ACCESS TO AGENTS b) LARGER RISK COVERAGE d) REPUTATION OF COMPANY f) ANY OTHER _________ (Specify)

3. WHATS YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE

4. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL c) NOT RESPONDING b) NOT SATISFIED

5. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL c) NOT RESPONDING b) NOT SATISFIED

6.

DO YOU PAY TAXES?

YES

NO

7. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM) a) FIXED ASSETS c) JEWELLERY e) SHARES b) BANK DEPOSITS d) SECURITIES, i.e. Bonds, MFs f) INSURANCE

121

8.

WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? b) SECURITY

a) SAVING & RETURNS c) TAX BENIFITS

9. WHATS THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs c) AFTER 45 Yrs b) AFTER 35 Yrs d) ANYTIME

10. HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS c) UNSATISFATORY SREVICES e) SATISFACTORY g) VERY GOOD b) NON-USER FRIENDLY d) NON-AGGRESSIVE f) GOOD

11. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

(RANK THEM) a) A TRUSTED NAME c) GOOD PLANS b) FRIENDLY SERVICE & RESPONSIVENESS d) ACCESSIBILITY

12. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS
BETTER SERVICE & PRODUCTS? YES NO UNCERTAIN

13.

ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING

THANK You .

122