PROJECT REPORT ON INSURANCE INDUSTRY IN INDIA OF AEGON RELIGARE Life Insurance Co.

In partial fulfillment of the Requirement for award of the degree of MASTER OF BUSINESS ADMINISTRATIONS (M.B.A.) (SESSION: 2011-12)

Under the guidance of : Mr. SUMIT HUMAN RESOURCE MANAGER AEGON RELIGARE INSURANCE CO. CHD

Submitted by: VIKAS MITTAL M.B.A.

GEETA INSTITUTE OF MANAGEMENT &TECHNOLOGY KANIPLA (KURUKSHETRA)

CONTENTS

Insurance industry in India. About Insurance Type of Insurance What is life Insurance. Need of life Insurance. Roles of Life Insurance. Objectives of life insurance. Aegeon Religare Life Insurance Co. Profile Meaning of Research Methodology. Process of Research. Analysis And Interperation Recommendation And Suggestion Annexure Bibliography Questionnaire Conclusion

ACKNOWLEDGEMENT I am highly grateful to Dr. Sourav Gupta, Principal, Geeta Institute of Management and Technology, Kurukshetra, for providing this opportunity to carry out the six/eight weeks practical training at AEGON RELIGARE Life Insurance Co. The constant guidance and encouragement received from Dr. Pooja Malhotra, HOD MBA Dept, GIMT, Kurukshetra has been of great help in carrying out the project work and is acknowledged with reverential thanks. I would like to express a deep sense of gratitude and thanks profusely to Mr.Sumit HR MANAGER of the organization , without their wise counsel and able guidance, it would have been impossible to complete the report in this manner. The help rendered by Mr. Rahul Singla, Head Corporate Links, GIMT Kurukshetra, for experimentation is greatly acknowledged. I also express my gratitude to other faculty members of MBA department for their intellectual support throughout the course of this work Finally, I am indebted to all whosoever have contributed in this report work.

VIKAS MITTAL

Introduction about Insurance Industry

INSURANCE INDUSTRY IN INDIA

India is marching ahead to more prosperous future. The economy is on a high growth path, domestic Savings are growing, exports have risen and inflation has stabilized. Infrastructure Sector, which even today is woefully inadequate to meet the expected increased industrial activities, has been accorded top priority by the government. All this should reflect in a growth rate of 7 to 8% for the next 3-4 years. With this scenario of high economic growth further reforms in the financial sector are in the Common Minimum Program of the Government. The insurance industry, which still remains a State Monopoly, is therefore engaging serious attention of the Government. De-regulation of insurance sector has already been recommended and has generally been welcomed by a dominant body of industry and populace though the employees unions and some others remain opposed to the idea of introducing competition in the insurance sector. India is regarded as an under-insured country with insurance penetration at a very low level of 0.6% of GDP. Insurance, as a rule, has always been given very low priority by Corporate India. It is always taken with reluctance, usually only when it is compulsory, and then only by big industrial houses. Without exception it is always inadequate to meet the needs of the corporate sector.

INSURANCE SECTOR: AN OVERVIEW

ORIGIN AND DEVLOPMENT OF INSURANCE The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders are used to bear risk of the caravan by giving loans, which were later repaid with interest when the goods arrived at safely. The first insurance contract was entered into by European maritime nation in 1347 to accept marine insurance as a practice. The oldest life insurance company in existence today is the society for the equitable assurance of lives and Survivorship, known as old Equitable. It was established in England in 1756.

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In

spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

HISTORY OF INSURANCE SECTOR

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are given in the table 1. Table 1: milestones in the life insurance business in India

Year

Milestones in the life insurance business in India

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 nonlife 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

245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are given in the table 2.

Table 2: milestones in the general insurance business in India Year Milestones in the general insurance business in India

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 (Nationalisation) Act, 1972 nationalised 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.

Indian Insurance Market History Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre

Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001. Insurance Market- Present: The insurance sector was opened up for private participation four years ago. For years now, the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe. There are now 29 insurance companies operating in the Indian market 14 private life insurers, nine private non-life insurers and six public sector companies. With many more joint ventures in the offing, the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a detariffed scenario. There is pressure from both within the country and outside on the Government to increase the foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion. There are opportunities in the pensions sector where regulations are being framed. Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first licence for a standalone health company in the country as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase. The deepening of the health database over time will also allow players to develop and price products for larger segments of society. State Insurers Continue To Dominate There may be room for many more players in a large underinsured market like India with a population of over one billion. But the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market. Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of the non-life market, the public sector companies still call the shots.

The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income in November 2005. Similarly, the four public-sector non-life insurers New India Assurance, National Insurance, Oriental Insurance and United India Insurance had a combined market share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8.11% market share. ICICI Lombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution. Reaching Out To Customers No doubt, the customer profile in the insurance industry is changing with the introduction of large number of divergent intermediaries such as brokers, corporate agents, and bancassurance. The industry now deals with customers who know what they want and when, and are more demanding in terms of better service and speedier responses. With the industry all set to move to a detariffed regime by 2007, there will be considerable improvement in customer service levels, product innovation and newer standards of underwriting. Intense Competition In a de-tariffed environment, competition will manifest itself in prices, products, underwriting criteria, innovative sales methods and creditworthiness. Insurance companies will vie with each other to capture market share through better pricing and client segmentation. The battle has so far been fought in the big urban cities, but in the next few years, increased competition will drive insurers to rural and semi-urban markets. Global Standards While the world is eyeing India for growth and expansion, Indian companies are becoming increasingly world class. Take the case of LIC, which has set its sight on becoming a major global player following a Rs280-crore investment from the Indian government. The company now operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations in Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions in 2006. The year 2005 was a testing phase for the general insurance industry with a series of catastrophes hitting the Indian sub-continent. However, with robust reinsurance programmes in place, insurers have successfully managed to tide over the crisis without any adverse impact on their balance sheets. With life insurance premiums being just 2.5% of GDP and general insurance premiums being 0.65% of GDP, the opportunities in the Indian market place is immense. The next five years will be challenging but those that can build scale and market share will survive and prosper.

INTRODUCTION TO INSURANCE Introduction Insurance may be described as a method of sharing of financial losses of a few from a common fund formed out of the many who are equally exposed to the same loss. It can be said to be a system of spreading the losses of an individual over a group of individuals. Since it is an intangible product, insurance industry is a service industry. Insurance industry do not produce any goods but sell the promise. A promise to take care of the customers or their dependants in case they suffer a loss due to some peril during the currency of policy.

TYPE OF INSURANCE: Any risks that can be quantities probably have a type of Insurance to protect it, different type of insurance are. 1) Automobile Insurance It may cover both legal liability claims against the driver and loss and damage to the vehicle. 2) Property Insurance It provides protection against risks to property, such as fine, theft and weather damage (good earthquake Insurance) 3) Liability Insurance: - It covers legal claims against the insured. For Example: A doctor claim against the insurance to cover any legal claims against pin if he were to be convicted of a mistake in threading a patient. 1) Health Insurance, Covers medical bills Incurred because of sickness or accidents. 2) Life insurance provides a benefits claim against the death of a person. 3) Some after type of risk are, political risk insurance, Terrorism Risk etc.

Type of Insurance : Life Insurance Company who shall life Insurance, annuities and pensions products. General Insurance Who shall other type of Insurance. Companies may shall with both life and none life insurance. Example Bajaj allianz Reinsurance Companies Sell insurance cover to other insurance companies. This helps insurance companies to spread their risks.

A. Chart is below, related to insurance Chart No.1 Safety Bank FDI's and saving Post Office Property Shares N.S.C Insurance + + 8% Highly record part 8% X X X X X X X Return 3%-5.2 Risk Covers X Tax Benefits X

+ Means not fully safe

it

can be very high some time it can be very low.

"So Insurance is not only source of Risk Covers, It is also a source of good Investment."

WHAT IS LIFE INSURANCE 1) The Head or the bread winner of the family generally supports the family for their basic needs, such as food, clothing and shelter, by bringing income at a regular interval. So long as he or she lives and the income is received steadily, the family is secured, but untimely death or disability of that person puts the family in a very difficult situation. 2) It is an uncertainty that is the risk, which gives rise to the necessity for some form of protection against the financial loss arising from death. Insurance substitutes this uncertainty by certainty.

LIFE RISK This history of life insurance is enveloped in the must of antiquity. In India, now-adays, this risk is insured by many huge corporations of life insurance: AEGEON RELIGARE LIC ICICI PRUDENTIAL HDFC LIFE KOTAK MAHINDRA OLD MUTUAL BIRLA SUNLIFE

BAJAJ ALLANZ TATA AIG AVIVA LIFE INSURANCE etc

SO LONG AS THE MAINTENANCE OF A FAMILY DEPENDS ON THE EARNING POWER OF BREAD-WINNERAS LONG AS THE POWER CAN BE DESTROYED BY DEATH, OLD AGE ORDISABILITY JUST SO LONG LIFE WILL LIFE INSURANCE CONTINUE TO BE THE KEYSTONE OF THE INDIVIDUAL & THOSE WHO ARE DEPENDANT UPON HIM.

NEED OF LIFE INSURANCE Risks and uncertainties are part of lifes great adventure accident, illness, theft, natural disaster theyre all built into the working of the Universe, waiting to happen. Insurance then is mans answer to the vagaries of life. If you cannot beat man-made and natural calamities. Well, at least be prepared for them and their aftermath. Insurance is a contract between two parties the insurer (the insurance company) and the insured (the person or entity seeking the cover) wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of premium. These unforeseen events are defined as Risk and that is why insurance is called a risk cover. Hence, insurance is essentially, the means to financially compensate for losses that life throws at people corporate and otherwise. In order to calculate the amount of insurance that you require, based on your life stage and life need.

Role of life Insurance Risks and uncertainties are part of lifes great adventure accident, illness, theft, natural disaster theyre all built into the working of the universe, waiting to happen. Role 1: Life insurance as investment.

Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks. Something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life Insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Now, let us compare insurance as an investment options. If you invest Rs. 10,000 in PPF, your money grows to Rs. 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 percent of the initial deposit only after 4 years. The same amount of Rs. 10,000 can give you an insurance cover up to approximately Rs. 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc.) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection. Role 2 : Life insurance as Risk Cover. First and foremost, insurance is about risk cover and protection financial protection, to be more precise to help outlast lifes unpredictable losses. Designed to safeguard against losses

suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies. Insurance also provides a safeguard in the case of accident or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy. With the entry of private sector player in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs. Considering the amount you have to pay , its worth buying some extras sleep. Role 3 : Life Insurance as Tax planning.

Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax. Objective and advantages of life insurance

1) Protection against risk of untimely death Life insurance is a product, which offers protection against risk or death. In case of death the full sum assured is made available under a life assurance policy, whereas under other saving schemes, the total accumulated savings alone will be available. 2) Protection during old age Life insurance can also be used as a means of saving for ones future. There are a number of life insurance policies, which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for old age. Forced savings.

Life insurance brings about forced savings. Payment of life insurance premium is compulsory and becomes a habit. Savings in other schemes can be easily withdrawn and may be used for less worthy purposes. Termination of a life insurance policy by the policy

holder usually results in a substantial loss in benefits under the policy to the policy holder. One is thus encouraged to save and keep ones policy alive. 1 Educational requirements and charity In certain cases of object of insurance may be to serve as security to educational funds in respect of loans advanced for educational purposes or to provide donations to charitable institutions like hospitals and schools. 2 Nominations and assignment The life insured can name the person or persons to whom the policy money would be payable in the event of his death. The proceeds of a life insurance can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy.

Insurance companies. IRDA has granted registration to the following private life insurance companies and their web address is given below. Insurance Co. Limited

ICICI Prudential Life Insurance Co. www.iciciprulife.com Limited. Aegeon Co.Limited ING Vysya life insurance company www.ingvysayalife.com Religare Life Insurance www.aegeonreligare.com

Limited Max New York Life insurance Co. www.maxnewyorklife.com Limited. Metlife insurance Company Limited www.metlife.com

Om Kotak Mahindra Life insurance Co. www.omkotakmahindra.com Ltd. SBI Life insurance Company Limited TATA AIG Life Insurance Company Ltd. AMP Limited. Dabur CGU Life insurance Co. Pvt. www.avivaindia.com Limited. Sanmar Assurance www.sbilife.co.in www.tata-aig.com

Company www.ampsanmar.com

Company Profile
AEGON Religare Life Insurance Company (ARLI) in India is a joint venture between AEGON (26%), Religare Enterprises Limited (44%) and Bennett, Coleman & Company (30%). AEGON, with its headquarters in Netherlands, is one of the worlds largest providers of life insurance, pension, long-term savings and investment products. With approximately 28,000 employees, the group serves over 40

What is General Insurance? Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown,there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rateable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- ( 50% of the loss being borne by the insured for underinsuring the property by 50% ). This concept is quite often not understood by most insureds. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service

providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims. Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or

holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmens Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes Motor Vehicles Act, The Workmens Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmens Compensation policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well. There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailormade ones. Suitable general Insurance covers are necessary for every family. It is important to protect ones property, which one might have acquired from ones hard earned income. A loss or damage to ones property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industries that are selffinanced should ensure that they are protected by insurance. Most general insurance covers are annual contracts. However, there are few products that are long-term.

It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.

General insurance : QUESTIONS and ANSWERS What is insurance? We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses. What is general insurance? Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance. Why should one insure ? One of the main reasons one should insure is to protect ones belongings and assets against financial loss. When one has earned and accumulated property, protecting it is prudent. The law also requires us to be insured against some liabilities. That is, in case we should cause a loss to another person, that person is entitled to compensation. To ensure that we can afford to pay that compensation, the law requires us to buy liability insurance so that the responsibility of paying the compensation is transferred to an insurance company. Who should buy general insurance? Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. Each one of us can insure our and our dependents health and well being through hospitalisation and personal accident policies. To buy a policy the person should be the one who will bear financial losses if they occur. This is called insurable interest. What kinds of policies are there? Most general insurance policies are annual that is, they last for one year. Some policies are given for longer periods like fire insurance for residences and some for shorter periods like insurance for goods transportation or for emergency medical treatment during foreign travel. How much should I insure for?

The amount you insure for is called the sum assured. Normally a policy should cover the value of the asset either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed. The premium will depend on the sum assured. Can I take two policies and get claims under both of them? In case of an indemnity cover (one that seeks to compensate the actual loss )--for instance, a policy that covers property, if there are two policies in vogue, the loss shall be shared by both the policies. In no case can an insured get more than the actual pecuniary loss he or she has incurred. On the other hand, in respect of benefit policies like the Personal Accident policy, where a fixed compensation is paid, no matter what the actual loss is , one may obtain more than one policy. On what basis is claim paid? In indemnity policies, the upper limit of a claim is the sum assured and this usually applies for the period of the policy. Certain policies, however, allow for reinstatement of the Sum Insured by payment of proportionate premium for the remaining period of the policy. The actual claim will be the actual extent of financial loss as validated by documents like bills. If the property is underinsured, the insured shall bear a rateable proportion of the loss. There can be more than one claim in the policy period but the sum assured is usually the limit for the policy period unless reinstated. Nowadays health insurance policies which cover hospitalisation costs have also a cashless settlement of claims. That is, you dont have to pay for the treatment at the hospital and then make a claim for reimbursement of the expenses. The insurance company has a service provider called the third party administrator (TPA) health services, who liaises with the hospitals and directly makes the payment for your treatment as per the terms of your policy and coverage. What is the periodicity of premium payments? Most general insurance policies are annual and the premium payment is in advance. No risk commences unless you have paid the premium. In some long term policies companies have the facility of collecting premiums periodically. Why do different people have different premiums ? The premium is calculated on the extent and nature of the cover you want. A higher sum insured means a higher rate of premium. Similarly a higher risk will be charged a higher premium. An example of this is that an older person will have to pay a higher premium for health insurance for the same sum insured. Sometimes the risk is higher depending on the location of risks for example in motor insurance in areas where accidents are higher. So the premium will vary according to the nature and severity of the risk.

If I buy a policy and dont make a claim, it is a loss. So, why should I buy insurance?

General insurance is not meant to be for savings or investment returns. It is meant for protection. What you pay for is the protection against a risk. To approach it as something from which returns should be obtained is not the correct approach as there is a price to pay for protecting a property worth lakhs for a few hundred rupees. If there are problems with claims what can I do? First you should write to the company and give them sufficient time to respond suitably. If they dont respond, or it is not a response satisfactory to you, then you can approach the appropriate judicial channel. For complaints relating to personal insurance covers upto a value of Rs.20 lakh, you may approach the Insurance Ombudsman in your area. ( HERE ANNOUNCE THE CONTACT INFORMATION OF THE OMBUDSMAN ). The Ombudsman has a technical team that will go into the merits of your case and give an award) If you are unhappy with the outcome with the Ombudsman you still have recourse to consumer courts. The IRDA also has a Grievance Cell. You may contact. ( HERE ANNOUNCE THE CONTACT INFORMATION OF IRDA) . million customers in over 20 markets. Aegon was formed in 1983 though the companys history goes back to the 19th century. Religare Enterprises Limited is one of the leading integrated financial services groups in India which offers insurance, asset management, broking, consumer finance, investment banking and wealth management solutions to its clients. Bennett, Coleman & Co. Ltd. (BCCL) is part of the mammoth Times Group, is Indias largest media house and is part of this venture through Times Private Treaties arm.

Aegon Religare has launched multiple products, but the iTerm Plan which is the cheapest term insurance plan available in India, is by far their most attractive offering. It is an online product which can be purchased on the internet by anyone and is very simple to understand thus eliminating the need of agents.

MANAGEMENT TEAM

Rajiv Jamkhedkar is the Managing Director and CEO of Aegon Religare Life Insurance Company

Aegon Religare Life Insurance

Life Insurance Plans from Aegon Religare

Term Insurance Plans iTerm Plan Aegon Religare Level Term Plan Aegon Religare Increasing Term Plan Aegon Religare Decreasing Term Plan

Unit Linked Insurance Plans - ULIPs Aegon Religare Future Protect Plan Aegon Religare Future Protect Plus Plan Aegon Religare Future Protect Premier Plan Aegon Religare Assure Plan Aegon Religare Assure Plus Plan

Savings Plans Aegon Religare Money Back Plan Aegon Religare Money Back Plus Plan Aegon Religare Endowment Plan

iMaximize Plan

Child Plan Aegon Religare Rising Star Plan - ULIP

Retirement Plans Aegon Religare Insta Pension Plan Aegon Religare Pension Plan

Health Plan Aegon Religare Health Plan

Compare life insurance plans from Aegon Religare and other insurance companies to get the best plan for you and your family.

Consumer Behaviour trends in Life Insurance

22nd Sep 2008 - Internet channels come with an inherent advantage- the data capture and analysis is something that can be done effectively and continuously.

We at BimaDeals.com, recently asked ourselves this question "What is it that our customers want?". Well, they all were looking for either information on insurance or were keen on buying some insurance products.

But -

we What

wanted product

to

dig types

deeper are

and being

find

out, sought?

- What is the end-use of the Insurance product i.e. who or what life stage does the product address?

Findings: It was very surprising for us to find that almost 58% of Insurance seekers were NOT sure of the specific end benefit that they wanted to derive from owning the insurance instrument. Amongst the ones who were specific in their requirement, Pension security emerged as the most sought after benefit, closely followed by economic security to Children and finally Taxsaving.

Now

this

might

sound

counter-intuitive,

but

here's

some

of

our

explanations:

- A large chunk of Insurance seekers are specifically looking for ULIPs (see the graph below) and this segment is not very clear of the benefits apart from the investment opportunity. - Tax Saving is a low priority - given the months for which data is collected. Had the data pertained to the first quarter of a calendar year, this would have been a higher percentage.

- Pension & Children plan are up there in the preference, partly due to the high decibel campaigns run by most insurers- specifically targeting these benefits.

Findings: As expected most insurance seekers are looking for ULIPs and this is very much in line with the recent product distribution declarations by most insurers.Term plans form the next big chunk. A qualitative input, will spell out the opportunity here very clearly- most customers who wanted ULIPs were not sure of the product features and how to evaluate ULIPs.

OurMethodology: We took data of all customers who came to BimaDeals from across channels and who were keen on buying an insurance product. The sample data encompassed applicants across all locations and age-groups in the last 3 months.

The "keeness" is judged by the telecalling process that filters cases where the customer is only

looking for information. As a process all Life Insurance leads are called almost real-time wherein our agents check the customers intent to purchase an insurance product.

Possible skews in data: - Since BimaDeals is an online platform, all applicants were comfortable with Internet. This is typically assumed to have a skew towards higher educational and income levels. - Although we did not filter for specific locations, but given that most of the traffic comes from top 8 cities, the trend would have a metro-bias (if the same exists). Analysis and recommendation Benefits sought BimaDeals BimaDeals Update Consumer Behaviour Life Insurance Life Insurance Product choice Views Add new comment Email this page Comments I do not think that a layman Fri, 10/10/2008 - 11:27 Anonymous (not verified) I do not think that a layman would know the difference between the insurance plans...

Insurance News Health insurance might become costlier SEBI & IRDA discuss ULIPs regulation Paperless Life Insurance Policies OPD Cover now available in Health Insurance Schemes New Life & health Cover for all poor families

Life insurance industry grows due to LICs strong portfolio Traditional Insurance policies gain larger share New Micro Insurance Policy for Rural India relaxes Health Check norms LIC raises stake in PNB to 10% IRDA toughens policy to discourage agents from switching Companies Don't miss... What are the types of Life Insurance Policies available BimaDeals announces Agent Partnership program Life Insurance Home LIC online payment Now you will know how much your Life Insurance Agent makes as commission Secure Dreams Plan from Max NewYork Life Implementing "Anti Money Laundering" policies in Life Insurance sector Need for an insurance policy Life Insurance Policies How much Life Cover we want? BimaDeals' Agents Partnership Program a BIG success Insurance for Education Loans How much Life Insurance do I need? PAN may become mandatory to buy Life Insurance Agents Corner Why we need Insurance? About BimaDeals LIC Insurance Plans Paperless Life Insurance Policies New Life & health Cover for all poor families

AEGON Religare Life Insurance offers insurance and pension plans specifically designed to help you plan your life better. Select a plan based on your need protection, saving, child or retirement.

Protection Plans
Protection plans are Term Plans which provide only life cover. These plans can help you get adequately covered and secure your family financially in case of unfortunate event. These are low cost life insurance plans

ULIPs Unit Linked Insurance Plans or ULIPs as they are commonly called are a form of Savings Plans that help you save and grow your money. ULIPs are a category of goal-based financial solutions that combine the safety of life insurance protection with wealth creation opportunities Savings Plan Savings Plans help you save and grow your money. Savings Plan is a category of goal-based financial solutions that offers wealth creation opportunities. At AEGON Religare Life Insurance we have created products that cater to these very needs.

Retirement Plans The rising inflation has put the fear of the unseen in every working persons life. Today, more than ever, it is vital that you save for the golden years post retirement so that you can maintain your lifestyle as today

Vision

To attract, develop and retain the right talent to achieve our business plans and vision through a culture that promotes quality, scale and sustainability\ We promise Meritocracy

We ensure that good performance is always recognized and commensurately rewarded. At AEGON Religare Life Insurance, the sky is the limit for the hard-working and the resultoriented.

Great work environment

AEGON Religare Life Insurance has a cheerful, warm and friendly work environment with a lot of professional freedom and encouragement for creativity and innovation.

Learning and growth

We constantly create new learning opportunities for our people by way of organizing interesting seminars, workshops and training programs on a regular basis. Besides, we put people in various departments to help them develop crossfunctional abilities and a more well rounded professional experience for better career growth.

Diversity

People from different cultures, backgrounds and walks of life make AEGON Religare Life Insurance a multi-coloured kaleidoscope with a lot of zing. We gain multi-fold from this diversified experience.

Fun at work Life at AEGON Religare Life Insurance is extremely enjoyable. Thats work is interspersed

with fun at regular intervalsparties, community events and other fun activities are part of life at AEGON Religare Life Insurance. Come and be a part of the exciting world of AEGON Religare Life Insurance.

View our Current Openings

Equal Employment Opportunity Policy AEGON Religare Life Insurances policy is that applicants are considered for employment solely on the basis of their qualifications and competencies. Our hiring policy is geared to ensure that we hire employee's without regard to their race, color, religion, national origin, citizenship, age, sex, marital status, ancestry, physical or mental disability, medical condition, veteran status or sexual orientation. RESEARCH METHODOLOGY No Project is completed without a research framework. So I have also gone through a systematic procedure of research methodology.

RESEARCH METHODOLOGY Research methodology is a way to systematic solve the research problems. It may be understood as science of studying how research is done scientifically.

RESEARCH METHODOLOGY PROCEDURE 1 DEFINING RESEARCH PROBLEM. 2 REVIEWING THE LITERATURE. 3 FORMULATING HYPOTHESIS 4 5 6 7 RESEARCH DESIGNING SAMPLE DESIGNING

DATA COLLECTION ANALYSING DATA

8 INTERPRETING AND REPORTING

1.

DEFINING RESEARCH PROBLEM:

There are two types of research problems,

that is those which relate to relationship between variable. Our research is the former one and the problem in precise way is Awareness of life insurance

1 REVIEWING THE LITERATURE : I undertook extensive literature study from the library of Kotak, journals, newspapers and previous research findings about insurance. 2 RESEACH DESIGN : Research design is a conceptual structure within which research is conducted. Research design can be of various types. Exploratory 7 SAMPLE DESIGN : Sample is a part of population, which represent the whole population. Various type of sample design are : Deliberate Sampling. It includes : Convenience Sampling Judgement Sampling Simple Random Sampling Systematic Sampling Stratified Sampling Quota Sampling Cluster Sampling Multistage Sampling Sequential Sampling The Sample Design which I opted was judgement Sampling. 4 5 DATA COLLECTION : I have collected data by Personal interview Telephone Interview Questionnaires /Need Analysers. 5 ANALYSIS AND INTERPRETATION OF DATA : After doing operations like Coding, Editing & Tabulation, I analyzed the data by making various graphs, which are depicted in the last of this project report. The findings are also mentioned along with graphs.

Statement of Problem

For getting the result of the problems it is very much essential to described the problem before doing any research work. The study has been done in the area of liquidity in private banks. The study deals with following strategies. i) ii) Financial Soundness Investment Policy

iii) iv)

Borrowings. Services. A developing economy require not only an increasing volume of investment in fixed

asset but also an increasing volume of working capital. It is because of the fact that working capital is perquisite of fixed capital. Working capital may be regarded as life blood of an organisation. She management of working capital is one of the most important aspects of the overall financial management. The effective provision of working capital ensures the success o0f a baseness while its ineffective management can lead not only to less of profits but also to the ultimate downfall of what otherwise might be considered as a promising concern working capital management that arise in attempting to manage the current assets, current liabilities and the interrelationship that exists between them.

ANALYSIS AND INTERPRETATION After making a detailed analysis of the FinancialConsultants recruitment procedure, I have analyzed thatRecruitment of Financial Consultant is really a challengingjob. It includes following process:

Cold Calls Conducting Business Opportunity Presentation References

And all these have been done after segmenting the market i.e. 1. Business class 2. Service class 3. Student 4. Housewives 5. Retired persons

The first step was making of 60 cold calls and invited them toattend companies AEGEON RELIGARE and also generated references fromthem. Than near about 42 people attended AEGEON RELIGARE and found it Interesting and from them 20 were ready to become financialconsultant our second step was to segment the market indifferent class.

FC's RECRUITMENT

service class house wives businessmen retired persons students Business class We have contacted 35 to 25 businessmen andaware those about companys opportunity and out of them 5were ready to work with us.

Service class:10 service men were contacted and 5 were readyto work with company

House wives:25 were contacted and 10 were interested.

Retired persons:-

Only 2 were interested.

Students:-

25 attended the AEGEON RELIGARE and only 12 were interested.We have analyses that age group of 22-35 were more interestedto work as financial consultant, as this group is more aspiringand more goal oriented and want to earn more and more andthey find Financial Consultant career a path which will fulfilltheir objectives of life.

Findings The above mentioned data clear the picture about the mentalstate of the people that they want to earn more and extra moneyto increase the standard of living. Money was the importantfactors to motivate them. The percentage of earning Rs. 20000people was mor3e than the people who want to earn Rs. 10000 or less than it.

How much times can you Spare for the new business? time spare 2hrs 2 to 4 hrs 4 to 8 hrs Flexible Findings It is found that near about 65% of the respondents are going forthe flexible working hours or want working hours according totheir specifications to earn more with less efforts. Flexible timeschedule also let them to devote their time to other economicactivities also.

This shows that respondents want to indulge themselves to morethan one business activities or to do some side business.

Do you look for challenge in career? Yes

No

Findings

It is found that near about 65% of the respondents are ready toface the challenge in their working field, they are well aware thatif they want to achieve their goals they have to work hard and hence all set to face challenge in their career and 35% were thoserespondents those were not ready to face challenge and want tospend there life without doing hard work.

Do you want reorganization for your work?

work recognization

yes no

Findings

It is found through survey that most of the people wantrecognization from their work. They want to earn more and alsowant to increase the standard of living. According to this survey 95% want recognization in their work and rest were not muchconscience about this.This finding helps company in deciding companys incentivepolicy.

Want to spend your holiday on company expenses?

0 20 40 60 80 % OF RESPONDENTS ABROAD INDIA\ LOCATION

HOLIDAY ON COMPANY EXPENSES

Series1

Findings

The above graph shows that more than 60% respondents wanttheir holiday should be sponsored by the company and theyprefer trips for abroad and some of them to spent their holiday in India.

RECOMMENDATIONS & SUGGESTIONS

_ The company should pay more emphasis on advertising theadvantages and avenues available in insurance sector can beachieved by working with them.

_ Those respondents who are not showing any interest regarding it,personal attention should be given to them.

_ Personal relation should be established with the respondents sothat their problems could be handled properly.

_ Time to time feedback should be taken from the respondents.

_ Those people who are not interested immediately, should becontacted through mailing should be done.

Limitations of Study

_ Respondents were not ready to give there address.

_ Research was done in a particular area.

_ Time period for covering the project was very short.

_ Response of many respondents was not co-operative.There was many cold calls.

ANNEXURES Products of company

1. Savings Plans _ Endowment Assurance Plan

_ Unit Linked Endowment Plan _ Childrens Plan

_ Unit Linked Young Star Plan

_ Money Back Plan

2. Investment Plans

_ Single Premium Whole Of Life Plan

3. Protection Plans

_ Term Assurance Plan

_ Loan Cover Term Assurance Plan

4. Retirement Plans

_ Personal Pension Plan

_ Unit Linked Pension Plan

BIBLOGRAPHY Books

Research methodology by C.R. Kothari

Research methodology by Cooper

Insurance products brochures

Websites

www.indiainfoline.com

3.INFORMATION FROM COMPANY

QUESTIONNAIRE

Business opportunity survey form Name __________________________________________ Age __________________________________________

Occupation ___________________________________________

Address ____________________________________________

Phone no ___________________________________________

1) Are you looking for any new business opportunity? (Kindlytick the option) (a) FULL TIME BUSINESS ____ (b) PART TIME ____

2) What is your monthly income earning expectation? >Rs.5000/-____ >Rs.10000/-_____ >Rs.20000/-_____

3) How much time can you spare for New Business? 2hrs _____ 2 to 4 hrs ____ 3 to 8 hrs _____ flexible hours ____

4)Do you look for challenge in career? Yes/No

5) Do you want reorganization for your work? Yes/No

6) What to spend your holidays on company expense. In India_______ Abroad_______

We are here to assist you in making your dreams come true

with us.

You can decide your own pay cheques as peryour market potential Flexible time hours to work.

You are own BOSS. 0% Business Investment. Market and Public Relationship exposure. Enhance your working sphere. Working today and enjoy life time earnings. KINDLY PROVIDE THE TWO REFERENCES: ____________________________________________ ____________________________________________ ____________________________________________ SIGNATURE ____________________________________________ ____________________________________________ ____________________________________________ Remarks

CONCLUSION

After analyzing these questionnaires forms I have concluded that most of the respondents want to earn more money by spending less time at work. They want their working hours according to their schedule should be flexible so that they can earn more by doing more than one business or more than one economic activity. If I list the conclusion these will be like follows:Respondents want to decide their own pay cheques as per their potential Flexible time hours to work Want to become own BOSS

0% investment Enhance working sphere Ready to face challenge in career Very much aware about their life goals And all these objectives are very well fulfilled by working with the insurance companies as the relation of financial consultant and insurance company is totally commission based hence more a person brings business for the company more he earns as commission. The Financial Consultant need not visit company office regularly. There is as such no pressure on the FCs to bring business they work according to their comfort and this gave them the feeling as if they are their own BOSS. There is no big amount to start this business, only Fees of IRDA license and examination paid which is nominal. There is no geographical limits to work a FC can bring business from any part of this world, this expands his sphere of working. Insurance companies to motivate their FCS give incentives in the terms of Foreign tours, extra commission, or by giving any luxury items like Mobiles, Cars, etc. As this avenue is now become popular by companys efforts and more and more people now interested in working as Financial Consultant with AEGEON RELIGARE Life Insurance Co. because of huge growth and good earning source. At last the career of Financial Consultant is helping peoples in fulfilling there goals.