2nd sem mba for summer training on marketing

“Study of financial need analysis of prospective customer in Jaipur and recommended solution

through Aviva Life Insurance products”

A Summer Training Report

towards

Partial fulfillment of the requirement for the

Two-Year Full Time Post Graduate Program in Management

By:

Ashawini Sharma

Under the guidancae of

Mr. M. Mehta Mr. K.V. SinghAravali Institute of Management Advisor & Consultant Jodhpur Reliance Money IFFCO-TOKIO General Insurance

ARAVALI INSTITUTE OF MANAGEMENTMarwar Bhawan, Polo No. 2, Paota

Jodhpur 342006 (Rajasthan)

ACKNOWLWEDGEMENT

I thank Prof. Varun Arya, Director, Aravali Institute of Management, for the opportunity given to me to learn from such a big companies while my summer training.

I would also like to thank my project guide Mr. M. Mehta who, through his experience and knowledge, contributed substantially since the inception to the end of the training. Whenever required he was there to help and guide me so as I could achieve my final goal.

I am would also like to thank Mr. Prashant Pandey, Trainner AVIVA Life Insurance, Jaipur and Mr. Manish Bhargav, FPA, (Financial Planning Advisor) AVIVA Life Insurance for his guidance during the training.

Finally I would like to thank all the faculty members and students of AIM for their support and encouragement during the training.

I have tried my best to make this report objective oriented and with least constraints and error, if you still have any doubts then do let me know at:-

PROJECT ASSOCIATE

Ashawini Sharma

Topic Page No.

Project Title & Research Objective 6

Insurance – on Threshold 8

Insurance Companies Operating in India 11

Life Insurance in India 13

Surplus/Deficit of Companies 27

General Insurance 30

Private Companies in General Insurance 32

India vs Global Market 33

Market Share of Private Players 34

Net Premium Income of Companies 38

Net Profit After Tax of Public Sector

Companies

42

Growth of Private Sector Companies 45

Aviva Life Insurance 46

Iffco-Tokio General Insurance 74

Reliance General Insurance 83

Research Methodology 90

4

Data Analysis 91

Findings and Conclusions 97

Recommendations 98

Glossary 99

Bibliography 100

Script used for calling 101

Questionnaire

5

Research Objectives

Title

“Study of financial need analysis of prospective customer at Jaipur and recommended solution through Aviva Life Insurance products”

Objective

To educated the people about Financial Health Checkup

To find out the investment pattern in Jaipur

6

Executive Summary

The objective behind this summer placement training is to use theoretical knowledge in practical life. So, I can use classroom learning in market field.

In summer placement training, we got a project research title “Study of financial need analysis of prospective customer in Jaipur and recommended solution through Aviva’s Life Insurance Products”.

I was selected by Mr. K. V. Singh for three Companies. These are Reliance Money General Insurance Aviva Life Insurance IFFCO-TOKIO General Insurance

These companies have their different-different product but they choose some product for us due to short span time, so for the same reason I restricted my self to that products. These are:-

Aviva Life Insurance

Life Bond 5 Life Saver Plus Freedom Life Plan

IFFCO-TOKIO General Insurance Home Suvidha Trade Suvidha Auto Protector Marin Insurance

Reliance Money Reliance Health Wise Policy

7

Insurance-On Threshold

Definition:

It is a social device for minimizing risks of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual change of loss. It is a contract, guaranteeing compensation to the payer against loss. It is a payment which is proportionate to the loss.

The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: Life Insurance and General Insurance.

Life Insurers undertake the Life Insurance business; general Insurance handle the Fire, Marine and Miscellaneous Insurance.

Insurance companies are important players in financial markets as they collect and invest large amount of premium in various investment instruments.

Benefit of Insurance

Insurance is the instrument of Security, saving and peace of mind. It provides several benefits by paying a small amount of premium to an insurance company:

Safeguards one’s assets. Give protection to investors. It provides peace of mind-in case of financial loss. It encourage saving as it helps to accumulate

savings. One can Channel these savings into sectors

needing huge long-term investments. One get Tax rebate. It provides protection from the claim made by

creditors. It provides security against a personal loan,

housing loan or other type of loan.

Insurance sector Overview (India)

8

The insurance sector in India has experienced a 360-degree journey over a period of more than a hundred years. Its transition from an open competitive sector to nationalization and then back to a liberalized market characterizes this phenomenon.

The insurance sector was brought under the government wrap within ten years of independence. Since then, till the re-opening of the sector in the 1990’s, the state-owned companies functioned under the deluge of bureaucracy and inefficiency but still had millions of policyholders, as there were no alternatives. The argument behind opening up of the sector was consumer-centric, which claimed that opening up insurance would give better products and service to consumers, insurance sector was opened to competition again in 1999-2000 so that to gauge its true performance.

Life Insurance constitutes the major share of insurance business. India is world’s 19th biggest insurance market. Insurance is a Rs 400 billion business in India. It accounts for 3% of GDP. After IT, it is the most growing sector. Indian insurance market is growing at a rate of 20%. But still 300 million Indians are insured population.

If there is one industry in India today, which has brought about a mini-revolution in the country, it is the insurance industry. Millions of jobs have been generated because of it. Sunrise industry-opening up of jobs for a variety of entrepreneurs in various disciplines. Life insurance industry is booming and liberalization of the life insurance market has so far proved to be a great success. The entry of private players will mean better products and choice for the consumer. Improved insurance sector today promises several new job opportunities.

With a large population and untapped market, insurance happens to be a big opportunity in India. The insurance business (measured in the context of first year premium) grew at 47.93 percent achieved in 2004-2005. However, insurance penetration in the country continues to be low. Insurance penetration or premium boomed as a share of a country’s GDP, for the year 2005 stood at 2.53 percent for life insurance and 0.62 percent for non-life insurance.

9

Total number of players in Life and Non-Life sector

Number of players in life & non life sectorType of

BusinessNo. of Public Sector

Companies

No. of Private Sector

Companies

Total Companies

Life Insurance

1 15 16

General Insurance

6 9 15

Re-Insurance 1 0 1Total 8 24 32

INSURANCE COMPANIES OPERATING IN INDIA

LIFE INSURERS

Public Sector Private Players

1. Life Insurance Corporation of India (LIC) 1. Bajaj Allianz Life Insurance Co. Ltd

10

2. Birla Sun Life Insurance Co. Ltd (BSLI)3. HDFC Standard Life Insurance Co. Ltd. (HDFC STD LIFE)4. ICICI Prudential Life Insurance Co. Ltd. (ICICI PRU)5. ING Vysya Life Insurance Co. Ltd. (ING VYSYA)6. Max New York Life Insurance Co. Ltd. (MNYL)7. MetLife India Insurance Co. Pvt. Ltd. (METLIFE)8. Kotak Mahindra Old Mutual Life Insurance Co. Ltd.9. SBI Life Insurance Co. Ltd. (SBI LIFE)10. TATA AIG Life Insurance Co. Ltd. (TATA AIG)11. Reliance Life Insurance Company Ltd.12. Aviva Life Insurance Company Ltd.13. Sahara India Life Insurance Co. Ltd. (SAHARA LIFE)14. Shriram Life Insurance Co. Ltd. (SHRIRAM LIFE)15. Bharti AXA Life Insurance Company Ltd. (BHARTI AXA)

NON-LIFE INSURERS

Public Sector Private Players

1. New India Assurance Co.Ltd. (NEW INDIA)1. Bajaj Allianz General Insurance Co. Ltd.

(BAJAJ ALLIANZ)

2. National Insurance Co. Ltd. (NATIONAL)2. ICICI Lombard General Insurane Co. Ltd.

(ICICI LOMBARD)

3. The Oriental Insurance Co. Ltd. (ORIENTAL)3. IFFCO Tokio General Insurance Co. Ltd.

(IFFCO TOKIO)

4. United India Insurance Co. Ltd. (UNITED)4. Reliance General Insurance Co. Ltd.

(RELIANCE)

5. Export Credit Guarantee Corporation Ltd. (ECGC)

5. Royal Sundaram Alliance Insurance Co. Ltd. (ROYAL SUNDARAM)

6. Agriculture Insurance Company of India Ltd. (AIC)

6. TATA AIG General Insurance Co. Ltd. (TATA AIG)

7. Cholamandalam MS General Insurance Co. Ltd. (CHOLAMANDALAM)

8. HDFC Chubb General Insurance Co. Ltd. (HDFC CHUBB)

9. Star Health and Allied Insurance Company Limited (STAR HEALTH)

Challenges

The Indian Insurance industry is featured by the following attributes:

Low market penetration Ever-growing middle class component in population. Growth of consumer movement with an increasing demand

for better insurance products.

11

Inadequate application of information technology for business.

Adequate fillip from the Government in the form of tax incentives to the insured.

Structure of Indian Insurance Industry

12

IRDA

LifeInsurance

Non-LifeInsurance

Public Company

Private Company

Public Company

Private Company

Life Insurance in India

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals.

Life insurance is providing payment of specified sum to a beneficiary on the policyholder’s death, or to the policyholder on reaching a certain age. Life Insurance depends upon the laws of mortality. Life has to end sooner or later and the claim in respect of life is certain. Hence, life insurance, besides providing a cover for life of individuals, also serves as a good source of savings for the beneficiaries. The life insurance Market in India presents several striking features, which appear, for the most part, to be necessary concomitants of the underdeveloped nature of the country’s economy.

Life based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment.

Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums.

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, which failed in 1834. However, the success of Indian life insurance can be traced back roughly to the second decade of the nineteenth century when the Madras Equitable began transacting life insurance business in the Madras Presidency in 1829. After that, it was a rather dull phase with regard to the growth in life insurance enterprise. This dullness was due to the very critical phase through which the British insurance companies were passing due to mismanagement and inexperience, thus resulting in the failure of several British offices before 1870 and leading to the enactment of the British Insurance Act, 1870. Till the 70s of the nineteenth century, insurance had found no real place in the scheme of things and only certain European companies

13

operating in parts of India did life insurance business on some scale. But Indian enterprise in this sphere late began to expand and in the last three decades of the nineteenth century the following companies were started in the Bombay Presidency:

Bombay Mutual (1871) Oriental (1874) Empire of India (1897)

Few other companies were also set up in other parts of India. However, this period was dominated by foreign insurance offices, which did good business in India, namely- Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance. The Indian offices that were set up during this period came up the hard way and had to struggle against the prevailing prejudice against life insurance and natural ignorance of the people.

The recorded history of Insurance business in India, however, began in 1914 when the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life insurance business.

Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life insurance business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of insuring public, the earlier legislation was consolidated and amended by the Insurance Act 1938 with comprehensive provisions detailed and effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However there were a large number of insurance companies and the level of competition was high. There were also allegation of unfair trade practices. The Government of India, therefore, decided to nationalize the insurance business. An Ordinance issued on 19th January 1956 nationalized the Life Insurance sector and Life Insurance Corporation of India (LIC) came into existence in the same year, The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies. Since then LIC was the only player till the date 90s when the Insurance sector was reopened for the private sector.

14

Nationalization of Life Insurance

The nationalization of life insurance is an important step in our march towards a socialist society. Its objective will be to serve the individual as well as the state.

“We require life insurance to spread rapidly all over the country and to bring a measure of security to our people”- Jawaharlal Nehru

The firs step towards nationalization of life insurance was taken on 19 January 1956 by the promulgation of the Life Insurance (Emergency Provisions) Ordinance. In terms of this Ordinance, the management of the ‘controlled business’ of insurers was vested in the central government.

Before nationalization, the insurance industry was organized into 243 autonomous units, each with its own separate administrative structure of office and field staff, its own separate set of agents and of medical examiners. Their offices concentrated in he large cities and their field of operation was confined to the major urban areas, out of 145 Indian Insurance companies, as many as 103 had their head offices in the four cities of Bombay, Calcutta, Delhi and Madras. When the Corporation was constituted on 1st September 1956, it integrated into one organization, the controlled business of 243 different units, Indian and foreign, which were engaged in the transaction of life insurance business in India.

The total asset of the above 243 units as on 31st August 1956 were about Rs 4,110 million and the total number of policies in force was over five million assuring a total sum of more than Rs 12,500 million. The total number of salaried employees was nearly 27,000. These figures give a broad idea of the magnitude of the problem involved in setting up an integrated structure.

When parliament sep up LIC as a monopolistic public undertaking, it was argued and believed that elimination of competition and the malpractice that competition has give rise to, would lead to:

Better and more economical management of the Business of life insurance.

15

Reduction in administrative expenses Improvement in the quality of service Increase in volume of business Maximization of social advantages that insurance can provide through higher

returns on investments of life fund, consistent with safety and liquidity of the invested funds

Parties to contract

There are three parties to a life insurance transaction: the insurer, the insured, and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the grantee and he or she will be the person who will pay for the policy.

The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing.

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most US states specify that the contestability period cannot be longer than two years; only if the insured dies within this period will the insurer have a legal right to contest the claim and request additional information before deciding to pay or deny the claim.

The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age

16

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim. The normal minimum proof required is a death certificate and the insurer's claim form completed, signed (and typically notarized). If the insured's death is suspicious and the policy amount is large, the insurer may investigate the circumstances surrounding the death before deciding whether it has an obligation to pay the claim.

Insurance vs. assurance

The specific uses of the term "insurance" and "assurance" are sometimes confused. In general, the term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen.

When a person insures the contents of their home they do so because of events that might happen (fire, theft, flood, etc.) They hope their home will never be burgled, or burn down, but they want to ensure that they are financially protected if the worst happens.

When a person insures their life they do so knowing that one day they will die. Therefore a policy that covers death is assured to make a payment. The policy offers assurance on death; even if the policy has a prescribed termination date the policy is still assured to pay on death and therefore is an assurance policy.

The test of whether a policy is assurance or insurance is that with an assurance policy the insured event will definitely occur (at some point) whereas with an insurance policy there is a risk the insured

17

event might occur.

Temporary (Term)

Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.

The three key factors to be considered in term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).

Permanent

Permanent life insurance is life insurance that remains in force until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollars face value can be relatively inexpensive to a 70 year old because the actual amount of insurance purchased is much less than one million dollars. The owner can access the money in the cash value by withdrawing

Life Insurance

TemporaryPermanent

Term Whole LifeEndowment

Annuities

18

money, borrowing the cash value, or surrendering the policy and receiving the surrender value.

The three basic types of permanent insurance are whole life, universal life, and endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any.

The universal life policy addresses the perceived disadvantages of whole life. Premiums are flexible. The internal rate of return is usually higher because it moves with the financial markets. Mortality costs and administrative charges are known. And cash

19

value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefitBut universal life has its own disadvantages which stem primarily from this flexibility. The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed. Universal life policies are sometimes erroneously referred to as self-sustaining policies.

Endowments

Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier.Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65).

Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.

If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.

Related life insurance products

Riders are modifications to the insurance policy added at the same time the policy is issued. These riders change the basic policy to

20

provide some feature desired by the policy owner. A common rider is accidental death, which used to be commonly referred to as "double indemnity", which pays twice the amount of the policy face value if death results from accidental causes, as if both a full coverage policy and an accidental death policy were in effect on the insured. Another common rider is premium waiver, which waives future premiums if the insured becomes disabled.

Joint life insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first death.

Survivorship life or second-to-die life is a whole life policy insuring two lives with the proceeds payable on the second (later) death.

Single premium whole life is a policy with only one premium which is payable at the time the policy is issued.

Modified whole life is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy.

Group life insurance is term insurance covering a group of people, usually employees of a company or members of a union or association. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size and turnover of the group, and the financial strength of the group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage.

Privatization of Life Insurance Sector

The Life Insurance market in India is still an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under-insured with no flexibility or transparency in the products.

21

Hence government privatized this sector on March 2000. With the entry of the private insurers the rules of the game have changed. Life business is growing at 35 percent. The new business premium of the 15 private players have tripled to Rs 1000 crore in 2002-03 over last year. Meanwhile, state owned LIC’s new premium business has fallen. Premium in 2003 and 2004 was 9581.3 and 24254.64 (Rs. In million) respectively, so there is a growth of 153.15% , while in LIC there was a declining growth of 1.93% from 159767.62 to 162846.87 (Rs. In million).Unit linked policies make up 26% of new business. LIC’s first year premium had a 15 percent component of unit linked policies while the private sector had a larger component of 36 percent.

Life Insurance industry recorded a premium income of Rs. 105875.76 crore during 2005-06 as against Rs. 82854.80 crore in the previous financial year, recording a growth of 27.78 percent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs. 21275.75 crore (20.09 percent); Rs. 17509.78 crore (16.54 percent); and Rs. 67090.21 crore (63.37 percent), respectively. In the year 2000-01, when the industry was opened up to the private players, the life insurance premium was Rs. 34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs. 9194.07 crore in the year 2001-02 to Rs. 5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs. 5936.50 crore (4.62 percent growth) the year 2004-05 witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 percent growth over 2003-04, accounting for 12.74 percent of the total premium underwritten in that year.

22

Life insurance industry underwrote first year premium (inclusive of single premium) of Rs. 38785.54 in 2005-06 growth of 47094 percent as against 32.49 percnet in 2004-05. The growth in first year premium was fuelled by sales of unit linked products for the second consecutive year. In a reversal from the experience of the previous year, LIC reported a growth of 47.89 percent in the number of policies underwritten as against a decline of 11 percent in the previous year; the reversal has been witnessed on the strength of the increase in the unit linked business. The single premium individual polices and non-single premium polices written by LIC reported growth of over 35 and 31 percent, respectively. As against this, the number of new polices underwritten by the 14 private sector insurers grew by 73.37 percent as against 34.62

23

percent in 2004-05. While the number of single premium individual policies underwritten by the private insurance companies grew by 103 percent, the non-single premium individual policies grew by 64 percent.

The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in a favorable growth in the total premium both for LIC (20.85 percent) and to the new insurers (95.19 percent) in 2005-06. The higher growth for the new insurers needs to be viewed in the context of a lower base in 2004-05. However, the new insurers have improved their market share from 9.33 percent in 2004-05 to 14.25 percent in 2005-06.

Number of Policies(Within INDIA) as at 31-3-2006

24

Insusrer (In '000)BAJAJ ALLIANZ 1111.64RELIANCE LIFE 124.75

AVIVA 259.46

BSLI 606.96

HDFC STD LIFE 895.59ICICI PRU 1763.6ING VYSYA 274.29LIC 186400.9MNYL 689.17MET LIFE 128.7KOTAK LIFE 188.9SBI LIFE 508.46TATA AIG 599.74SAHARA 28.26SHRIRAM LIFE 20.79

Market Share of Private Insurers (no. of policies)

15%

2%4%

8%

12%

25%

4%

10%

2%3%

7%

8% 0%0%

BAJAJ ALLIANZ RELIANCE LIFE AVIVA BSLI HDFC STD LIFE

ICICI PRU ING VYSYA MNYL MET LIFE KOTAK LIFE

SBI LIFE TATA AIG SAHARA SHRIRAM LIFE

25

Market Share of Private Insurer (sum assured)

15%

1%4%

11%

12%

20%

3%

12%

3%

6%

5%8% 0%0%

BAJAJ ALLIANZ RELIANCE LIFE AVIVA BSLI

HDFC STD LIFE ICICI PRU ING VYSYA MNYL

MET LIFE KOTAK LIFE SBI LIFE TATA AIG

SAHARA SHRIRAM LIFE

Surplus/Deficit of Life Insurers in 2005-0626

Sum Assured(Within India as at 31-3-2006)

Insurer (Rs. Crore)BAJAJ ALLIANZ 29804.8

RELIANCE LIFE 2252.53AVIVA 7855.33BSLI 22437.38HDFC STD LIFE 23636.26ICICI PRU 42739.5ING VYSYA 5743.83LIC 1351392.14MNYL 24532.74MET LIFE 5747.06KOTAK LIFE 12015.88SBI LIFE 9557.04TATA AIG 15506.74SAHARA 380.35SHRIRAM LIFE 443.1

Insurers (Rs. Lakh)Bajaj Allianz 6822SBI LifeKotak Life -4702Tata AIG 1254Met Life -7724Aviva 1733Sahara 29Shriram -12

Surplus/Deficit of Private Insurers

31%

0%

21%6%

34%

8% 0%0% Bajaj AllianzSBI LifeKotak LifeTata AIGMet LifeAvivaSaharaShriram

27

Profits of the life Insurers

28

Life insurance industry is capital intensive, and insurers are required to inject capital at frequent intervals to achieve growth in premium income. Given the high rate of commissions payable in the first year, expenses towards setting up operations, training costs incurred towards developing the agency force, creating a niche for its products, achieving reasonable levels of persistency. Providing for policy liabilities, and maintaining the solvency margin, make it difficult for the insurers to earn profits in the initial five to seven years of their operations. SBI Life Insurance Company is the first private sector company to turnaround with net profit of Rs. 2.03 crore in 2005-06. Bancassurance continued to be the company’s key distribution channel and contributed over 43 percent of the premium underwritten by the insurer. The company has succeeded in achieving an early break even on account of its lower cost of operations. However, the insurer still continues to report a deficit in the Revenue A/C. Shriram Life, which commenced operations in February, 2006, too reported net profit of Rs. 2.56 crore mainly due to investment income on shareholder’s funds and yet to commit funds towards various capital and revenue expenditure.

All the private insurance companies reported deficit in their Revenue Accounts in 2005-06, which needed injection of further capital by the shareholders. Other than Sahara and Shriram, all the private insurers made capital calls during the year. Metlife could not complete the process of allotment of shares by 31st March, 2006 stood at Rs. 3790.81 crore as against Rs. 2590.32 crore on 31st March,2005,i.e. , an increase of 46.34 percent over the previous year. The continued financial support through equity injections reflected the promoters’ commitment in stabilizing the insurer’s operations. During 2005-06 insurers continued to declare bonus despite reporting deficit in the Revenue Account. It may be recalled that in 2003-04 , recognizing the need of the new insurers to declare bonuses to maintain their competitive stance in the market, the Authority had permitted declaration of bonus despite non-availability of actuarial surplus. LIC, continued to report surplus of Rs. 12,733 crore from operations as against Rs. 15884.26 crore in 2004-05, of which Rs. 621.77 crore was transferred to the Government of India (Rs. 696.60 crore in 2004-05).

29

General Insurance in India

The history of general Insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-farming trade and commerce in the 17th century. It came to India as a legacy of British occupation. British and other foreign Insurance companies through their agencies in India transacted this business. The general insurance business in India 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:

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 nationalized the general insurance business in India with effect from 1 January 1973

The reason why GIB was not brought into the public sector in 1956 was the fact that general insurance was considered a part and parcel of the private sector of trade and industry and functions on a yearly basis. Errors of omission and commission in the conduct of its business did not directly affect the individual citizen.

Prior to 1973 there was 107 companies, including Branch offices of 43 Foreign Companies were operating in India. Majority of these foreign companies were form United Kingdom (27), the rest being form USA (3), Switzerland (3), Germany (2), other European countries (6) and one each from Japan and New Zealand. By an Act of Parliament, the G.I.C. was incorporated in November 1972 as a Holding Company. With nationalization all these Companies were amalgamated and grouped into the following four

30

Companies with the Head Offices in one of the four metropolitan cities of the country:

NATIONAL INSURANCE COMPANY LIMITED, CALCUTTA THE NEW INDIA ASSURANCE COMPANY LIMITED,

BOMBAY THE ORIENTAL INSURANCE COMPANYLIMITED, DELHI UNITED INDIA INSURANCE COMPANY LIMITED,

MADRAS

The four Companies were formed as G.I.C.’s Subsidiaries from January 1, 1973. The L.I.C., on the other hand is a huge organization. Before Nationalization, the conduct of general insurance/non-life business was by and large urban oriented, catering mainly to the needs of the organized trade and industry.

The Nationalization of the general insurance industry was primarily to “serve better the needs of the economy by securing the development of general insurance business in the best interests of the community, and to ensure that the operation of economic system does not result in the concentration of wealth to the common detriment,……………..”.

December 2000: The GIC subsidiaries were restructured as independent insurance companies. At the same tie, GIC was converted into a national re-insurer. In July 2002, Parliament passed a bill, delinking the four subsidiaries from GIC. Presently there are 15 general insurance companies with 6 public sector companies and 9 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. General insurance, there may never be any claim and the amount cannot be ascertained in advance.GIC itself has been the major reinsurer. All insurance companies have to give 20 percent of their reinsurance business to GIC. It accounts for 0.56% of GDP. Non-life premium has a 0.71 percent share of GDP. Premium in 2003 and 2004 was 13497.16 and 22907 (Rs. In million), respectively for private sector while 129104.35 and 138276.97 (Rs. In mn) respectively for private sector. Private players grabs 17% of the Non Life insurance market while public sector have 83% market share.

31

The market share of the new players at the end of February 2005 is an impressive 25 percent (without Reckoning ECGC’s premium) up from 17 percent as at the end of February 2004.

The Non-Life Insurance industry reported premium income within India of Rs. 20659 crore in 2005-06 as against Rs. 17480.59 crore during 2004-05, exhibiting a growth of 16.46 percent. During the year, the four public sector non-life insurers underwrote premium of Rs. 14997.06 crore as against Rs. 13972.96 crore in 2004-05, i.e., a growth of 7.33 percent (4.77 percent in 2004-05). The eight private sector insurer underwrote premium of Rs. 5361.53 crore as against Rs. 3507.62 crore in 2004-05 reporting a growth of 52.85 crore (55.35 crore in 2004-05). Over the last five years, the market share of the private insurer has increased to 26.34 percent (20.07 percent in 2004-05). In 20041-05, the non life insurer industry reported a growth of 12.09 percent.

List of Private Companies in General Insurance

Private General Insurance Company Percent of Foreign Equity

Name of the Foreign partner

Royal Sundaram Alliance Insurance Co. Ltd 26 Royal Sun Alliance

Reliance General Insurance Co. Ltd Nil

IFFCO-TOKIO General Insurance Co. Ltd 26 Tokio Marine

Tata-AIG General Insurance Co. Ltd 26 AIG

Bajaj Allianz General Insurance Co. Ltd 26 Allianz

ICICI Lombard General Insurance Co. Ltd 26 Lombard

Cholamandalam General Insurance Co. Ltd Nil

HDFC-CHUBB Insurance Co. Ltd 26 CHUBB

ECGCBenefits of General Insurance

Insurance acts as the instrument of security, saving and peace of mind.

It safeguards one’s assets Gives peace of mind-in case of financial loss Encourages saving Helps in getting tax rebate Give protection from the claim made by creditors Provides security against a personal loan, housing loan or

other types of loan.

32

India vs. Global Market

India’s total insurance penetration is low at 1.95% and ranks 51 in the world but in premium collection the record is better and ranks at 23rd position. The ratio of premium collected to GDP is a mere 0.58% compared with an average of 7.1% in most industrialized countries. India is still at a very nascent stage with an $8-9 (Rs. 400-450) per capita expenditure on insurance, out of which $2 to $2.5 (Rs. 100-150) will be on general insurance.

General Insurance premium at percentage of GDP is estimated at:

S.No. Country GDP1 Japan 2.72 South Korea 5.223 Malaysia 1.894 Singapore 1.625 Taiwan 1.386 Thailand 1.237 Philippines 0.868 China 0.689 Indonesia 0.6610 Pakistan 0.51

General Insurance premium at percentage of GDP

2.7

5.22

1.89

1.62

1.38

1.23

0.86

0.68

0.66

0.51

0 1 2 3 4 5 6

Japan

South Korea

Malaysia

Singapore

Taiwan

Thailand

Philippines

China

Indonesia

Pakistan

Co

un

trie

s

GDP

33

Major Players are-:

Public Players: New India Assurance Co. Ltd. (New India) Insurance Co. National Insurance Co. Ltd. (National) The Oriental Insurance Co. Ltd (Oriental) United India Insurance Co. Ltd (United) Export Credit Guarantee Corporation of India Ltd.

(ECGC) Agriculture Insurance Company of India Ltd. (AIC)

Private Players:

Bajaj Allianz General Insurance Co. Ltd (BAJAJ ALLIANZ)

ICICI Lombard General Insurance Co. Ltd. (ICICI LOMBARD)

IFFCO-TOKIO General Insurance Co. Ltd. (IFFCO-TOKIO)

Reliance General Insurance Co. Ltd. (RELIANCE) Royal Sundaram Alliance Insurance Co. Ltd. (ROYAL

SUNDARAM) TATA AIG General Insurance Co. Ltd. (TATA AIG) Cholamandalam MS General Insurance Co. Ltd.

(CHOLAMANDALAM) HDFC Chubb General Insurance Co. Ltd. (HDFC

CHUBB)

34

Market Share (On the basis of net premium income in 2005-06)

20%

30%

17%

16%

2%

0%

3%

2%

4%

4%

1%

1%

NATIONAL

NEW INDIA

ORIENTAL

UNITED

ROYAL SUNDARAM'

RELIANCE

IFFCO TOKIO

TATA AIG

ICICI LOMBARD

BAJAJ ALLIANZ

CHOLAMANDALAM

HDFC CHUBB

From the above pie-chart we can see that among the players present in general insurance sector New India Assurance head quartered New Delhi has highest market share (30%) and among the private player ICICI Lombard and Bajaj allianz shares the maximum share (4%) in the financial year 2005-06.

35

36

NET PREMIUM INCOME (Earned)37

(Rs. Lakh)

Companies 2005-06 2004-05NATIONAL 276317 266414NEW INDIA 412099 376717ORIENTAL 235584 212317UNITED 219433 216264ROYAL SUNDARAM' 29091 17328RELIANCE 5397 4802IFFCO TOKIO 34598 17537TATA AIG 28556 22760ICICI LOMBARD 52768 21560BAJAJ ALLIANZ 58637 37091CHOLAMANDALAM 8840 7104HDFC CHUBB 13835 11926

TOTAL 1375155 1211820

276317

412099

235584219433

290915397

34598285565276858637

8840 13835

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

Rs.

Lak

h

NA

TIO

NA

L

NE

W I

ND

IA

OR

IEN

TA

L

UN

ITE

D

RO

YA

LS

UN

DA

RA

M'

RE

LIA

NC

E

IFF

CO

TO

KIO

TA

TA

AIG

ICIC

I L

OM

BA

RD

BA

JAJ

AL

LIA

NZ

CH

OL

AM

AN

DA

LA

M

HD

FC

CH

UB

B

Company

NET PREMIUM INCOME

NET PREMIUM INCOME

The industry added Rs. 2878 crore additional premium during the financial year 2005-06 with private insurers contributing Rs. 1853.91 crore and the remaining Rs. 1024.10 crore by public insurers. The growth in business has been contributed by New India Assurance Company Ltd., Oriental Insurance Company Ltd., ICICI-Lombard General Insurance Company Ltd., and IFFCO-TOKIO General Insurance Company Ltd. As aginst this, decline to

38

the extent of Rs. 276 crore in premium underwritten was reported by National Insurance Company Ltd.

In the private sector, ICICI-Lombard and Bajaj Allianz reported premium of over Rs. 1000 crore. ICICI Lombard led the private insurers with 7.77 percent market share and growth of 81.13 percent. Bajaj Allianz’s premium collection grew by 50 percent to Rs. 1272.29 crore, with a market share of 6.25 percent. IFFCO-TOKIO reported a growth of 80 percent with a market share of 4.38 percent. HDFC Chubb and Reliance continued to have market shares of less than 1 percent at 0.98 percent and 0.80 percent respectively, with the latter having grown by only 0.40 percent. The public sector general insurance companies’ market share declined to 73.66 percent. New India held a market share of 23.54 percent (24.09 percent in 2004-05), followed by Oriental Insurance and National Insurance Company at 17.32 percent (17.26 percent in 2004-05) and 17.31 percent (21.74 percent in 2004-05) respectively. United India held a market share of 15.50 (16.84 percent in 2004-05). National and United India reported a decline of 4.43 and 1.43 percent respectively in premium underwritten. In case of United India the decline in the market share was for the second consecutive year.

Examined in the context of the industry as a whole, the increase in premium in absolute terms was the highest in Motor and Health i.e., Rs. 1204.29 crore and Rs. 525.37 crore whiuch recorded growths of 16.06 percent and 30.33 percent respectively. These segments accounted for 42.61 and 11.05 percent of the business underwritten by the insurers. Fire and “Others” accounted for 18.38 and 9.97 percent of the premium underwritten. Marine, Engineering and Aviation accounted for 6.35 percent, 4.80 percent and 1.96 percent. Liability and personal accident accounted for 2.01 and 2.87 percent of the total premium underwritten by the non-life industry in India. The contribution of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business avenues. Of the total growth in the premium in the year 2005-06, 64.41 percent has been captured by the private insurers though they are examined in the context of the industry as a whole, the increase in premium in absolute terms was the highest in Motor and Health

39

i.e., Rs. 1204.29 crore and Rs. 525.37 crore which recorded growths of 16.06 percent and 30.33 percent respectively. These segments accounted for 42.61 and 11.05 percent of the business underwritten by the insurers. Fire and “others” accounted for 18.38 and 9.97 percent of the premium underwritten. Marine, Engineering and Aviation account for 6.35 percent, 4.80 percent and 1.96 percent. Liability and personal accident accounted for 2.01 and 2.87 percent of the total premium underwritten by the non-life industry in India. The contribution of the private insurers in various industry segments has increased on account of both their capturing a part of the business which was earlier underwritten by the public sector insurers and also creating additional business avenues. Of the total growth in the premium in the year 2005-06, 64.41 percent has been captured by the private insurers though they have a market share of 26.34 percent. In terms of number of policies issued, the industry reported a growth of 6.25 percent in 2005-06. The number of policies underwritten by the private insurers increased by 73.90 percent in 2005-06 (as against 56 percent in 2004-05. The public sector insurers reported a decline of 1.54 percent against an increase of 16.15 percent in the pervious year.

40

$2

$5

$7

$5

$1

0

$1

5

$1

1

$2

8

$3

9

0

5

10

15

20

25

30

35

40$

in

bn

1998 2005 2010

General Trend of Insurance in INDIA

Non-Life Insurance Market Life Insurance Total

Net Profit After Tax of Public Sector Companies

(Rs. Lakh)

Companies 2005-06 2004-05New India 71638 40223Oriental 28391 33053National -10625 13113United 42523 30771

41

71638

28391

-10625

42523

-20000

-10000

0

10000

20000

30000

40000

50000

60000

70000

80000R

s.

lak

h

New India Oriental National UnitedCompanies

Net Profit After Tax of Public Sector Companies

Net Profit After Tax of Private Sector Companies

(Rs. Lakh)

Companies 2005-06 2004-05Royal Sundaram 864 501Bajaj Allianz 5157 4709Tata AIG 1361 1224Reliance 1436 583IFFCO TOKIO 1462 1472ICICI Lombard 5031 4834Cholamandalam -312 -334HDFC CHUBB 441 -799

42

864

5157

1361

1436

1462

5031

-312

441

-1000 0 1000 2000 3000 4000 5000 6000

Rs. in lakh

Royal Sundaram

Bajaj Allianz

Tata AIG

Reliance

IFFCO TOKIO

ICICI Lombard

Cholamandalam

HDFC CHUBBC

om

pa

nie

s

Net Profit After Tax of Private Sector Companies

43

Gross Premium Underwritten up to the Month of April, 2007

2% 3% 7%3%

14%

7%1%

21%

12%

13%

13%1%

2%

1%

Royal Sundaram Tata-AIG Reliance General

IFFCO-TOKIO ICICI-lombard Bajaj Allianz

HDFC CHUBB Cholamandalam New India

National] United India Oriental

ECGC Star Health & Allied Insurance

44

Gross Premium Underwritten up to the Month of April, 2007

  (Rs. In Crores)

INSURERSPREMIUM 2007-08

(APRIL 2007)

PREMIUM 2006-07

(APRIL 2006)

GROWTH OVER THE CORRESPONDING

PERIODOF PREVIOUS YEAR

Royal Sundaram 72.92 65.07 12.05Tata-AIG 112.06 108.27 3.5Reliance General 221.16 70.27 214.75IFFCO-TOKIO 107.24 121.43 -11.68ICICI-lombard 448.65 330.51 35.75Bajaj Allianz 215.34 182.64 17.9HDFC CHUBB 21.89 15.9 37.72Cholamandalam 72.96 32.27 126.09New India 650.82 601.48 8.2National] 395.89 365.14 8.42United India 407.51 397.17 2.6Oriental 413.5 413.4 0.02ECGC 37.77 41.31 -8.56Star Health & Allied Insurance 33.99 0  

GROWTH OVER THE CORRESPONDING PERIOD OF PREVIOUS YEAR

1%

43%

2%7%

4%

8%

26%2%

2% 2%

1%

2%

Royal Sundaram

Tata-AIG

Reliance General

IFFCO-TOKIO

ICICI-lombard

Bajaj Allianz

HDFC CHUBB

Cholamandalam

New India

National]

United India

Oriental

ECGC

About Companies

45

(I). Aviva Life Insurance

Kal Par Control

What is Aviva?

Aviva is a life insurance Company co-promoted by Dabur and AVIVA

AVIVA is the world’s oldest and U.K’s largest life insurance company having over 300 yrs experience, serving 15 million customers in over 50 countries. AVIVA is also the world’s third largest Life Insurance Company (as per Fortune 500 Global list).

Dabur is one of the oldest and largest companies of India producing traditional health care products.

Why have Dabur and Aviva tied together?

AVIVA believes that Indian life insurance market is an emerging market with tremendous business potential. Dabur is one of the strongest Indian companies. Together Dabur and AVIVA are committed to providing the very best in Life insurance services.

Free Financial Health Check Financial Health Check is a need based analysis of an

individual’s potential life insurance and savings needs. It helps the customer understand his financial position and

empowers him/her to approach his future with greater financial control.

It is a free, value added and non-obligatory service. This check also enables the customer to know the gap

between the insurance he/she has and the actual insurance required.

Introduction To Dabur And AVIVA

46

AVIVA plc was previously known as CGNU plc. The name change was effected on 1st July 2002. Prior to the re-branding. CGNU was using 50 trading names across the world. The decision for the re-branding was taken with the objective of creating a strong and powerful international services brand.

What Does Aviva Mean

Aviva (pronounced as a-vee-vah with the stress on the second syllable) has the connotation of vitality and joie de vivre (joy of Life). The brand was selected after being tested intensively through consumer research in 15 countries. Aviva tested positively bringing with it associations of life, vitality and living well.

History of Aviva Group - Key Dates

1696 - the world's oldest insurance company Hand in Hand formed in London

1797 - Norwich Union founded in Norwich 1861 - Commercial Union founded in London 1885 - General Accident founded in Perth, Scotland 1998 - CGU formed with the merger of Commercial Union

and General Accident 2000 - CGNU formed with the merger of CGU and Norwich

Union 2002 - CGNU rebranded as AVIVA plc on 1st July 2002

The right investment strategies won't just help you plan for a more comfortable tomorrow -- they will help you get Kal Par Control.

At Aviva, life insurance plans are created keeping in mind the changing needs of you and your family. Our life insurance plans are designed to provide you with flexible options that meet both protection and savings needs.

Important Points About Aviva Group

Oldest life insurance company in the world 5th largest insurance group in the world (Source: Fortune

47

500) UK's largest insurer 28th largest company in the world (Source: Fortune 500 Jn

2006) Premium income from new business 32 bn USD (approx. 1.4

lac crores) Total premium income approx. 3.18 lac crores) Market capitalization of 25bn USD Shareholders' funds of 25 bn USD Operating profit before tax of approx. 25600 crores Over 35 million satisfied customers worldwide Over 58000 employees 40 major exclusive partnerships with banks across the globe Listed on London, Paris and Dublin Stock Exchanges History in India dates back to1834 with the entry of

Universal Life Morley Fund Management (part of the Aviva group) was

awarded in Property Fund Management of the year Property Week's Award 2004

Specialist Manager of the year UK Pensions Awards 2002 Sustainable and Ethical Investment and Asset management

Award Livable City awards 2002 Aviva grou0p has won Singapore Insurance Broker's

Association (SIBA) awards in all three categories the last three years. The categories are: Best Claims services, Most Broker-oriented insurer, Best Over all insurer.

Long term savings and asset management account for 60% of premiums.

Major institutional investor in UK 2.4% of market capitalization of London Stock exchange Owned by Aviva

Top 5 positions in Holland, Ireland, Singapore, Spain, Turkey and Poland

In India till 1972 Largest foreign insurer at the time of nationalization

General Accident became official insurer of viceroy in 1919Commercial Union was one of the companies that insured the White Star liner Titanic, which sank on 15 April 1912 with the loss of over 1500 lives after striking on iceberg on its maiden voyage. Despite this Commercial Union made a profit at the year end.

48

Important Points About Dabur Group (Dabur India Ltd.)

Has a history dating from 1884 Third largest consumer good company in India Highest Dividend declared for FY 2003-04 of 150% CRISIL rating FAAA Fixed deposits CRISIL rating P1+-Commercial Paper Last year net profit after taxes 157 crores Pharmacy Division and FMCG Division de-merger 2003 Over 300 health care and personal care products 13 ultra modern manufacturing units in 4 countries Products marketed in over 50 countries More than 5000 distributors Over 1.5 million retail outlets Dabur India Limited has got the CRISIL Corporate

Governance and Value creation (GVC) rating 1st Ayurvedic products company to get ISO 9002 Acquired the majority shareholding in Balsara Home

Products, Balsara Hygeine Products Ltd., & Besta Cosmetics Ltd.

Aviva Life Insurance in India

Aviva Life Insurance India is a private insurance company formed from a collaboration between the Aviva insurance group of UK and the Dabur group, one of India's oldest and top producer of traditional health care products . Aviva's products are meant to provide customers flexibility, transparency and value for money.

Programme highlights of today -

Aviva Life Insurance India has 40 Branches in India, including rural branches supporting its distribution network. With over 27,000 Financial Planning Advisers (FPAs) and the Financial Health Check (FHC) programme it has been successful in setting up its position in the Indian market. The FHC is a free service administered by the FPAs which analyses the customer's long-term savings and insurance needs and depending on

49

the life stage and earnings of the customer it selects the proper insurance product for them.

Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. This has helped to distribute Aviva products in nearly 378 towns and cities across India.

Aviva Life Insurance India offers more modern Unit Linked and Unitized With Profit money products to the customers. Following the IRDA guidelines, with effect from 1 July 2006, these unit - linked products have been modified.

Fund Management of Aviva

The fund management operations of Aviva Life Insurance India is controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked funds:

Protector Fund - The fund comprises of debt securities in the range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%.

Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%.

Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and money market and cash in the range of 0-10%.

Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities in the range of 0-85% and money market and cash in the range of 0-20%.

50

These funds provide investment security to the capital of the customers.

Through their association with Basix (a micro financial institution) and other NGOs, Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day. In Aviva Life Insurance India, thus, by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing needs.

Key Points Aviva India Got licensed on 14th May 2002 Started operations on 6th June 2002 Pioneered the concept of indexation Pioneered the concept of unitization Tie-ups with ABN AMRO, American Express, Canara Bank

and Lakshmi Vilas Bank ABN AMRO is the amongst he world’s top 10 banks ABN AMRO has a 178 year history and operates in 76

countries 3568 branches, 504 bn USD AUM and over a lac employees Canara Bank is the second largest bank in India 97 year old bank (formed in 1906) 2421 branches in 25 states and 4 union territories 26 million customers. Over 67734 crores in deposits American Express is a 152 year – old organization The world’s largest travel organization in India since 1921 Vision to be “World’s most respected service brand” Lakshmi Vilas bank is a 77 year old bank 212 branches in 10 states and one union territory Over one million customers Paid up capital of Aviva India is Rs. 559 crores We have increased over branches from 41 in December

2005 to 107, and increased our Bancassurance partners to 22.

Aviva Life insurance has recorded a growth of 118% compared to the last year, with New Business Annualized Premium Equivalent (APE) of Rs 438 crores for the fiscal year 2005-06.

Strong sales force of over 12,000 Financial Planning Advisers (FPAs).

51

Aviva has increased its market share to 5.1% during April 2005-March 2006

Aviva Indian Vision

“Aviva where exceeding expectations through innovative solutions is “our” way of life”.

Aviva India Core Values Passion for winning Integrity Innovation Customer-centricity Empowered team

Customer CentricityRespected customer, listen and understand Customer needs; Be proactive, Don’t mislead and give false promises; Offer professional and correct advise; Ensure that customer are top priority at all times.

InnovationEncourage empower and reward new ideas; Have courage and conviction to be different; Don’t accept mediocrity; Passion for winning; Have the ‘can do’ attitude; Be committed to results; Don’t allow failure to set you back.

Empowered TeamFeel responsible, take charge and make ourselves accountable; Recognize and appreciate others; Don’t give false commitments under pressure; Share information and experience; Don’t avoid taking tough decisions.

AVIVA CORPORATE SOCIAL RESPONSIBILITY

Aviva has tried to inculcate this feeling of “giving back to the society in which we live” amongst all its employees worldwide. Aviva is committed to acting as a responsible member of international business community as an insurer, investor, employer and consumer.

52

Aviva continues to pledge money to aid relief work following the Asian tsunami disaster. More matched funding is expected to occur in the next few weeks as staff continues to hold fundraising events and make donations through the payroll system. Many employees have also contributed to the appeal funds through other means.

This financial assistance is in addition to the continuing efforts of staff to provide practical help through the provision of essential supplies and to assist in relief efforts on the ground, particularly in India and Sri Lanka. Claims by policyholders are being handled as sensitively and as quickly as possible.

Aviva is also examining the possibility of working with aid agencies towards long-term sustainable relief projects to help return victims, their families and communities to normal.

Basics of Unit Linked

Evolution From Traditional to Unit Linked

In traditional Insurance plans, a person pays premium for a 53

particular duration. In this duration or “term” the customers gets a protection for a particular Sum Assured. Usually in such plans in either case of death or maturity, the customer gets the Sum Assured and the bonuses and the policy thus gets terminated. These are the most popular endowment plans that have dominated in the Indian life insurance market, mainly due to the following reasons:

A monopolistic player (not much choice to the consumer) Product push (no need analysis done) Only plans with higher commission was sold Lack of insurance awareness

Over the years this led the customer to believing that, “This is what I pay…. And this is what I get at the end of the contract.”

Questions like, “At what cost am I getting this plan?” “Is it being invested safely?” “Can I maximize my returns?” “Is this value for money?” were never asked…….The exhibit above, gives a pictorial representation of what happens in a traditional policy. The customer has no control over his own investments that he is making in the form of premiums paid.

In the 1960’s, ULIP plans became popular in Europe and they have never looked back since. However with the coming of the private players has opened a whole range of customized solutions for the customer. Also, these plans have contributed to the substantial market share that the private insurers have got in the short duration of 4 years post privatization. In 2000 the overall market share was 2% and as of

54

Pay Premiums for a particular duration

Policy Term

Maturity Benefit

March 2005, it is 21.93%. Effective April, LIC has grown by 751% in its ULIP solution basket.

EVOLUTION FROM TRADITIONALTO UNIT LINKED

Unit linked plans are based on the component of the premium or the contribution that the customer makes towards the plan. This contribution can be in different modes like: annually/half yearly/quarterly/monthly. This contribution can be based on:

FEATURERS OF A UNIT LINKED PLAN

The best part of a Unit linked plan is the multiple benefits that it offers to its customers! Such plans are therefore packaged a one stop solution for:

1. Life Protection2. Rider Protection

55

PREMIUM/CONTRIBUTION

(LESS) CHARGES

(LESS) MORTALITY/RIDER CHARGES

INVESTIBLE PREMIUM INVESTED AFTER UNITZATION

FUND VALUELIFE PROTECTION DEATH BENEFIT AS A RIDER (PROTECTION) RIDER S A

3. Investment and savings together4. Transparency5. NAV Investment Choices6. Liquidity7. Planning for taxes

These plans accommodate changes in lifestyle and provide a one-shop to manage these changes without the hassle of getting into multiple products.

1. Life Protection

This is the most primary reason for a life insurance policy: to provide protection against any unforeseen event that may occur. However the level of protection varies depending upon the life stage of the client.

Need for protection arises: While being single and independent On getting married and starting a family While being blessed with children To plan and secure children’s future Planning for the marriage of children To enjoy a post retirement life

56

Single & working

Recently Married

Blessed with children

Securing children’s future

Children’s marriage/setting down

Happy Retirement

Pro

tect

ion

Nee

d

This graph demonstrates that there is a need for more protection for an individual as the life stages changes, which peaks when the children become independent and settle down. For such an individual as the stage changes, which peaks when the children become independent and settle down.

Joint Life Option:Joint life is meant for husband wife relationship only. In this, both the lives are insured on a first death basis. The key benefit being that both the lives gets protection under one policy. Underwriting happens for both the lives. Since its one policy are on the administration costs.

Choice is available to take the adequate cover and thereafter increase or decrease as per the need. While designing these cover multiples, we take care to ensure that adequate balance is maintained between the saving portion and the charges for protection.

Indexation:This is the most important and the least used, to sell our products. Indexation gives flexibility to the customer to increase the savings to cope-up with inflation. With the increase in savings, sum assured will also increase. Benefits:

Flexibility to increase the death benefit Flexibility to decrease the death benefit Customer has the control to choose when to exercise the

options for increasing or decreasing the assured Increase/Decrease in sum assured possible in the same

contribution Transparent mortality charges, which is cancelled against

units Flexibility to increase savings to cope up with inflation

2. Rider Protection

Various riders can be attached with this plan for extra protection. Protection can be against:

57

Life Stage and Time

An unfortunate accident Protection against disability due to an accident Extra cover for protection against critical illness Requirement of cash in case of hospitalization

Riders have an additional normal charges for the specified benefit. Charges can be of two types:

Fixed Charges Variable Charges

Benefits: Additional protection against 3 Ds (Death, disability and diseases) Possibility to drop this cover at a later date if required

3. Investment and Saving

In traditional plans, the post deduction of charges the customer has no idea where his money is being invested or how this fund is performing. The closest the customer gets is to know the investment guideline as per the regulator. Other than that there is little or no control that the customer has over his policy. A customer to take the benefits of market swings to his favour in these plans.Unit linked solutions on the other fund are very transparent on where the money is being invested and how it’s growing! It keeps the customer updated about his fund movement. These investment patterns are also regulator guided. However, here the customer with varying degree of risk appetite has the benefit of satiating this need.

The investible premium of all the customers is called as the fund. This fund is managed by the fund manager in is invested in:

Equity Markets Debt Markets

Balanced funds are a mix of the above two in varying proportions. For added security of the fund, there is an option of investment in money market and cash within the debt market segment. Also available is a growth option: here the investment perspective leans more towards the equity market and less on the debt market. If this is plotted on a graph, then:

58

Growth

Balanced

Secure

Unitized with profit

RiskBenefits:

Various fund options to invest in. Risk vs. return to suit individual appetite Option to change or “switch” between funds as per the

changing life style of the individual. Safer option to park extra one time monies as “top ups” Options to re-direct premiums should one want to change

the return profile based on life style or on market conditions.

Increased savings through, “additional regular premiums”. Protection is intact.

4. Transparency

Any insurance policy has certain charges pertaining to the policy. Some types of charges are: operational cost, administrative charges, management charges, mortality charges etc. Unit linked plans are transparent in nature and the customer knows what the charges are.

This transparency helps the customer to understand how effectively the company is managing expenses. As optimizing on expenses will give more ingestible premium within the same contribution and therefore better returns.

59

RE

TU

RN

S

Charges are primarily levied since companies incur various expenses on the policy pertaining to heads like:

Distribution Expenses Product Benefit Operational Expenses

Allocation Charges: These are the charges/discount pertaining to the premium to ticket size i.e. the amount of the premium paid. The allocation charges are represented as a percentage of the premium contributed.

Initial Management Charges: Under the head of distribution expenses, these are charges pertaining to the cost of acquiring a policy. The initial cost of a policy is very high. Most insurers charge the customer in the first few years of the policy. They also club it with the allocation rate. These charges are represented as a percentage of the premium paid. For example in ICICI Pru’s Life Time II the allocation rate deducted from the first contribution is 12% to 19% in the first year. In the second year, its 1.4% to 2.5%. Birla Sun Life Classic Life deducts 13% to 15% in the first year and 4% thereafter. In Aviva, however, the initial unit management charge is broken down and not all the charges are deducted upfront. This way the charges are deferred and the customer is benefited from a higher allocation and a higher fund value. This higher fund value has a compounding effect over the term of the policy. Our initial fund management charges are a maximum of 5%.

Fund Management Charges: The fund manager incurs expenses in order to maintain the fund. Every fund has a component of equities and debts. And varying proportions in debts and equities give rise to various funds like debt, balanced, equity, aggressive equity etc. Every fund manager transacts in carious instruments within these funds. For e.g. the cost of buying, selling various funds and instruments constitute the fund management charges. E.g. Kotak Mahindra charges 1.5% for its equity fund and MetUltimate has a charge of 1.35% of the AUM. There is a differential pricing in the fund management charges of an equity fund and a debt fund. A fund manager needs to research the right kind of equity. So the costs of identifying acquiring, maintaining an equity portfolio is higher as compared with a debt

60

fund. The choice of instruments available in a debt fund is relatively less as compared wit the equities. Thus, the equity funds have a higher fund management charges, as compared with a debt fund. For e.g. ICICI Prudential’s secure fund charges .75% and most balanced funds across insurance companies charge 1%. Expressed as a percentage of Assets under Management of a company. The factor on which the fund management charges depends: the main component being the fund composition.

Mortality Charges: This charge is the charge for protecting the life of the insured. This charge can be deducted as a lump sum at the start of the policy or at a regular and recurrent basis. This charge is levied to provide the insurance under the plan. In unit-linked plans the mortality charges apply as per the age of the life insured. So every year the mortality charge changes as per the age of the insured. For e.g. if the life insured is 30 years, the mortality charge for that year will apply e.g. 1.28 per thousand. When the life insured becomes 31 the next year, the mortality charges for 31 years will apply, which may now change to Rs. 1.31 per thousand. So this keeps changing. The tables are referred to as mortality tables. These charges are expressed as a rate per every thousand sum assured. In Aviva, these annual charges are further adjusted on a monthly basis, giving higher flexibility to our customers. In plans where the death benefit is higher of “death benefit or the fund value”; it’s important to understand the concept of “Sum At Risk”. SAR = Sum Assured less fund value.

Rider Charges: Like the mortality charges are used for life protection, the rider charges give additional protection against the rider cove specified. This protection could be against an accidental death, critical illness, dismemberment etc. These charges are also expressed as a rate per thousand Rider SA. Rider charges are also based on the rider type i.e. if it is accelerated or stand-alone. Accelerated riders are economical. Stand-alone rider offers an independent protection against the cover it gives, thus there is a price differentiation. For e.g. in a stand alone critical illness has an additional rider SA being given to the insured n case of the critical illness; the policy remains intact. In case of an accelerated version, on the happening of the event, it’s treated

61

like setting a death claim and the policy to the extent of the rider cover amount is terminated.

Early Redemption Charges: These charges are levied when the policyholder wants to surrender the policy. Unit linked policies are like a whole life as far as these term of the policy is concerned. Therefore this gives the flexibility to make withdrawals on a need-based basis. However, in case of early withdrawals, the cost of the initial expenses needs to be recovered, there fore these charges apply. The insurance companies space out the charges being levied. So, in the initial years of withdrawals, the company needs to recover these expenses, which is done through the surrender charges. These charges are levied on the initial years of the policy, which keeps on decreasing over a period of time. These charges an be expressed as a percentage of the value of investments or as a fixed flat rate depending o the structure of the product. Also, called as the “Early Redemption Charges” the formula is (1-1/(1.05)n*initial premium units*NAV (n=outstanding premium paying term)

Transactional specific charges: These charges are levied when the client does some specific transaction like switching funds, topping up with an additional premium contribution. These charges can either be expressed as a percentage of the amount transacted or as a fixed rate basis. E.g. for top-ups the charge can be expressed as 1% of the top-up amount or a flat rate of Rs. 100/- irrespective of the amount.

Administrative Charges: They are a fixed annual charge. These charges are unitized and deducted on a monthly basis cancelled against the units.

5. Net Asset Value (NAV)

The net asset value of the fund is cumulative market value of the assets fund net of its liabilities. In other words, if the fund is dissolves or liquidated, by selling off all the assets in the fund, this is the amount that the policyholders would collectively own.

62

This gives rise to the concept of net asset value per unit, which is the value, represented by the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the “per unit”.

Calculation of NAVThe most important part of the calculation is the valuation of the assets owned by the fund. Once it is calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The detailed methodology for the calculation of the asset value is given in the next page. This is calculated and published on a daily basis.

Asset value is equal to Sum of market value of assets at market price.(+) Liquid assets/cash held, if any(+) Dividends/interest accrued(-) Amount due on unpaid assets(-) Expenses accrued but not paid. The total outstanding units in the market.

Net Asset Value or the NAV of the fund is an indicator of the fund value. When a premium is invested into a fund then the investible premium (net of charges) is divided by the NAV of that day and the result is the number of units that the policyholder has.

For eg: A person has put in a regular premium of Rs 20,000/- pa. After deduction of charges, let’s assume the investible premium is Rs.12500/- this is the amount that will be invested into the fund. When this is invested, this will be unitized. Assume that the NAV is Rs 10/-. To unitize this amount:12500/10 = 1250 So 1250 is the number of units that the policyholder has.

Now after one week, let’s say the NAV is Rs. 10.52. The value of the fund will be: 1250(# of units)*10.52 (current NAV) = Rs. 13,150/- (value of investment/units or fund value)

63

Thus in a ULIP plan policyholder knows his fund value at any point in time. Unlike a traditional plan where +.investor has no idea how the fund is performing. NAV is published on a daily basis in national dailies, pink papers and on company websites.

6. Investment Choices

After deduction of all the charges form the premium paid the balance amount left is called as the “Investible Premium”. This investible premium is the “savings” element of an insurance plan. In traditional plans, where the investments are done and what are the returns that are being generated is not shared with the policyholder. So if two individuals were investing the same amount of money, their returns and maturity benefits would be the same. In Unit-linked plans however, two different individual are investing in the same plan and one is willing to take more risk, he is benefited from higher returns. With unit linked plans it’s possible or policyholders with varied risk appetite to choose where they want to invest their “investible premium”. We have the following investment options that the policyholder choose from:

UNIT LINKED FUNDS:a. Protector Fund progressive returns on investment by

investing higher element of assets in debt securities. b. Secure Fund The objective of this fund is to provide

progressive return on the investment made. c. Balanced Fund The objective of this fund is to provide

long term capital growth while controlling overall risk, by availing opportunities in debt and equity markets and providing a good balance between risk and return.

d. Growth Fund The objective of this fund is to provide high capital growth by investing higher element of assets in the equity market.

7. Liquidity

Liquidity is pertinent with respect to the ULIP plans since it gives the policyholder the option to choose and customize their

64

withdrawals according to their needs. In traditional plans the maturity benefits are paid at the maturity term of the policy. However, keeping in mind the life situations, it may be probable that the need may change and the policyholder may not wish to withdraw at that particular year. In this respect, the traditional plans are rigid and the ULIP solutions more liquid and flexible. In ULIP solutions the policyholder can redeem all his units and exit from the fund. This would be his maturity. That is why these plans are often referred to as open ended, since the policyholder has the flexibility to decide the maturity tenor and customize the tenor of the policy.

Also, during the term of the policy, some needs may arise due to which, the policyholder may need funds to meet those expenses/contingencies/requirements. In traditional plans, its rigid and the surrender penalties are higher. In ULIP however, one an choose to withdraw partially from the funds. This gives higher liquidity to the policyholder.

Benefits:Since the plans are open ended, the policyholder can exercise full withdrawal (i.e. termination of all units in the fund) based on his need and life situation .The policyholder can invest additional amounts and park extra monies.

8. Taxation Aspect

Savings under Section 80C. New section 80 C has been introduced which provides for deduction up to Rs. 1 lac to all assesses. This would mean that even the people in higher income bracket would be eligible for this benefit. Further, any contribution up to Rs. 100,000/- towards life insurance premium/pension contribution is eligible for deduction to all assesses irrespective of their tax bracket and the benefit shall be to the extent of marginal tax rate.

Other deductions eligible under this section are provident fund, contribution to deferred annuity plan, subscription to units of Mutual Funds (only ELSS), tuition fee, repayment of housing loan (only principle amount), subscription to approved public issues, etc.

65

Investment Process

Products of Aviva

Easy Life Plus Young Achiever Life Bond 5 Life Bond Life Saver Life Long   Pension Plus Save Guard Life Bond Plus Save Guard Junior Life Saver Plus Aviva Dhan Vriddhi Freedom Life Plan Treasure Plus

Life Bond 5Life Bond 5 is an investment plan where you pay premiums only for 5 years and get investment returns with maximum tax

66

Board of Directors

Quarterly Performance Review

Investment Committee

Approval of Investment policyApproval of Fund mandatesQuarterly Review of fund performance

Chief Investment OfficerFund manager mandates

Deal approval

Fund Management

Portfolio construction Research

ComplianceInternal Mandates IRDA Guidelines

benefits.  This unit-linked plan gives you the flexibility that you, as a smart investor, seek both at the time of investment and at maturity.

Life Bond 5 offers 3 Unit Linked investment fund options, which give you the flexibility of choosing how your money should be invested in terms of the risk and the security of the return on the investment. You can invest your premiums in any one fund or in a combination of funds. The minimum allocation in each selected fund must be 10%.

With effect from July 01, 2006 all Unit Linked Products (ULIPs) have been modified as per the new IRDA Guidelines. All policies sold on or before June 30, 2006 will continue to have the old product features, terms and conditions.

Life Saver PlusLife Saver Plus is a Unit Linked endowment plan designed to meet your future savings requirements besides offering a higher life cover.  The plan offers full Sum Assured in addition to the Fund Value as death benefit in case of your unfortunate death, thereby providing a higher financial protection to your family.  You can also opt for the “Systematic Transfer Plan”.  The plan provides a guaranteed addition at maturity.  In addition, the Plan offers a minimum guarantee on maturity on the funds allocated towards the Secure Fund.Life Saver Plus can be purchased for any age between 0 to 60 years. However, in case any rider is opted for the maximum entry age is 55 years.

You can also choose the premium payment term separately from the policy term so that you can match your paying capacity to your financial goals.

You have the freedom of choosing from 4 Unit Linked Funds: Protector, Secure, Growth and Balanced Funds and the option of investing through the Systematic Transfer Plan.In addition, you get a minimum 2% Guaranteed Addition at maturity and have the choice of increasing or decreasing your premium amount whenever you like.

67

Freedom Life Plan

Freedom Life Plan is a unit-linked limited premium paying endowment plan with guaranteed loyalty additions. This unit linked plan gives you the flexibility to customise the plan to suit your individual needs and alter it subsequently with your changing needs.  You can take Freedom Life Plan on single life or jointly with your spouse (first death basis).

Freedom Life Plan offers 3 Unit Linked investment fund options, which give you the flexibility of choosing how your money should be invested in terms of the risk and the security of the return on the investment. You can invest your premiums in any one fund or in a combination of funds. The minimum allocation in each selected fund must be 10%.

With effect from July 01, 2006 all Unit Linked Products (ULIPs) have been modified as per the new IRDA Guidelines. All policies sold on or before June 30, 2006 will continue to have the old product features, terms and conditions.

Key features of Freedom Life Plan Entry Age: 18 to 60 years (last birthday); maximum entry

age is 55 years and 50 years respectively for single life and joint life with riders

Policy Terms: 10 to 30 years (maximum age at maturity 70 years)

Premium Payment Terms (PPT): 3, 5, 10, 15, 20, 25 or 30 years

Annual Premium: Minimum Rs. 25,000 for a PPT of 10 years or more; Rs. 200,000 for PPT 3 and 5 years

Sum Assured: Minimum 0.5 * Policy Term * Annual Premium; Maximum 1.25 * Policy Term * Annual Premium

Investment Fund options: 3 unit linked funds; Secure, Growth and Balanced funds

Choice of riders: Accidental Death and Dismemberment Rider (AD&D), Critical Illness & Permanent Total Disability Rider (CIPTD) and Hospital Cash Benefit Rider (HCB)

Guaranteed Loyalty Additions at regular intervals

68

Fund Options

Guaranteed Loyalty AdditionsFreedom Life Plan guarantees to give you loyalty additions in the form of additional units at specific intervals during your policy term. These unitsare given if all the due premiums have been paid and are given at the following rates:

5% of the units in the fund account - on the 10th policy anniversary

3.5% of the units - on every subsequent 5th policy anniversary till the date of maturity

The additions will apply to the units attributable to regular premiums existing at the end of the specified policy anniversary. This benefit will not be applicable to units pertaining to the top-up premiums or additional regular premiums

Minimum Guarantee on MaturityAviva guarantees that on maturity, the value of units in the Secure Fund will not be less than the total number of units in the Secure Fund, as at the end of the policy term, multiplied by their respective Unit Price applicable at the time of allocation, provided you have:

Paid all premiums due Not switched to or from the Secure Fund at anytime

during the policy term

This guarantee is on the Secure Fund at maturity only and would exclude:

69

Units in respect of Balanced and Growth Funds Units attributable to top-up premiums Units allocated as per Guaranteed Loyalty Additions

Increasing the sum assured by choice:Increasing the sum assured on the happening of specific events:You can also increase the sum assured on your policy by 50% (up toRs. 1,000,000) without evidence of health:

Within 3 months of marriage date Within 3 months of the birth of any of children

RidersApart from the death cover under the base plan, Freedom Life Plan offers extra protection through optional riders:

Accidental Death and Dismemberment Rider (AD&D): Coverage from risk of death or dismemberment due to an accident

Critical Illness and Permanent Total Disability Rider (CI&PTD): Coverage against contracting a critical illness or becoming totally and permanently disabled due to a disease or an accident

Hospital Cash Benefit Rider (HCB): The Company will make fixed cash payments for each day of hospitalization

These riders can be attached to the base plan at inception only and the rider covers expire at age 60.

Charges Policy Administration Charge (PAC): Rs. 63 per month

for the first year, which will increase by 5% p.a. on the first January of every year. PAC will be deducted monthly by cancellation of units from the accumulation unit account. If premiums are discontinued, this charge would reduce to 60% of the charge applicable for the premium paying policies.

Initial Management Charge (IMC): 5% p.a. of initial units during the premium payment term, subject to a maximum of 20 years. IMC will be deducted monthly from initial units.

Fund Management Charge (FMC): 1.50% p.a. on Secure Fund, 1.25% p.a. on Balanced Fund and 1.50% p.a. on Growth Fund. FMC will be applied on the fund while

70

calculating NAV on a daily basis. The maximum FMC on any fund is 2% p.a. subject to prior approval by the IRDA.

Mortality Charge: The Mortality Charge will apply on the Sum at Risk (SAR = Sum Assured less the Fund Value pertaining to regular premiums). It will be deducted by monthly cancellation of

units from the accumulation unit account. The Mortality Charge shall remain guaranteed throughout the policy term. Sample mortality charges are given in the table below:

Rider Premium Charges: Rider charges will be made by monthly cancellation of units from the policy accumulation unit account. The AD&D rider charge will apply on Sum Assured; the CI&PTD rider charge will apply on the Sum at Risk, while the HCB rider charge is a fixed amount. Rider charges may change based on the Company’s claims experience and approval by the IRDA

Surrender Charge on Initial Units: [1-(1/1.05^N)] * value of initial units, at the

unit price, on the date of surrender

on Accumulation Units pertaining to regular premiums: [1-{1/(1 + x)}^N] * value of accumulation units, at their unit price, on the date of surrender. The variable x varies with the number of completed years premiums paid at the date of surrender:

Where N = minimum (PPT, 20 years) minus elapsed period in years and fraction thereof.

Premium Allocation Charge 71

Switching Charge: 0.5% of the amount switched subject to a maximum of Rs. 500 per switch. The first 2 switches per year are, however, free of charge

Tax Benefit: Tax benefits will be as per Section 80C & Section 10(10D) of the Income Tax Act, 1961,

IFFCO-TOKIO General Insurance

IFFCO-TOKIO General Insurance (ITGI) is India’s trusted insurance company. It simplifies customer’s life by providing them tailor made products and quality services, thus helping them take informed investment decisions. It is a joint venture between The Indian Farmers Fertilizer Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

ITGI was incorporated on December 4, 2000 and has its head office in Gurgaon, Haryana. ITGI is among India's top three

72

private-sector general insurance companies with 100 offices and a country-wide network of 480 exclusive point of presence.

In their constant effort to provide customers with "the life they deserve", it offer a wide range of over 40 uniquely customized policies covering a wide range of customers, from farmers to some of India's largest automobile manufacturers.

Vision To be an industry leader by building customer satisfaction through fairness, transparency and quick response

MissionTo win the trust of individuals, trade, industry and commerce and protect citizens, corporations, cooperatives and international investors in India.

Subsidiary: IFFCO TOKIO Insurance Services Limited Indian Promoters: Indian Farmers Fertilizer Co-

operative Ltd (IFFCO) Foreign Promoters: TOKIO Marine Asia Ptd. Ltd.

73

Our Performance

Profitable growth: Our commitment to innovation and customer service has helped us consistently raise the bar on our performance. We strongly believe in profitable growth: Our rapidly reducing Earned Income Loss Ratio (EILR) is testimony to this

74

Gurgaon

Delhi

Vadodra

Mumbai

Bangalor

Kolkat

ITGI's sound financial management has been achieved in a period of fast-paced growth. Our GWP has grown from Rs. 58 million in 2000-01 to Rs. 9 billion 2005-06. Policy growth has jumped more than 70 times between 2002 and 2006.

ITGI voluntarily maintains strong institutional checks and balances. An investment committee of board members and senior executives scrutinizes all major investment decisions. An in-house audit committee audits all the branches and suggests ways to improve their functioning. Finally, there is an executive committee of senior management that monitors policy decisions. All these have ensured that ITGI has established a reputation for the highest standards of corporate governance.

'Customized' satisfaction: Our bi-annual customer satisfaction surveys - another unique feature at ITGI -- indicates the speed and fairness in handling policy-holders' claims. This is backed by robust IT infrastructure that is robust enough to handle large

75

volume of documents. All ITGI's branches and distributors are networked. This not only enables a detailed and accurate analysis of the company's performance based on specific parameters, the web-based claim response system has enabled the speedy settlement of claims, achieving a 90% claim settlement ratio.

76

Products of IFFCO TOKIO

Home Suvidha

Home is the biggest assets that reflects not only individual’s dream but also a substantial investment of time and money. Although an individual cannot guard it from all possible risks, but

77

nevertheless, he can always take steps to help himself tide over unexpected events.

A Complete Protector

ITGI’s Home Suvidha Insurance Policy gives complete protection to individual’s home against a wide range of risks and perils. It is a simple Policy wherein there are various categories of Sum Insured and a person may opt for the category most suitable to him depending upon the extent of risk perceived and total value of his assets.

The Sum Insured under Section 1 & 2 represents the First Loss limit which should be within 50% of the actual Market Value of the property at risk, below which underinsurance condition will be applicable. The other Sections are covered on Full Value basis - Market Value for Section 5 and Reinstatement Value for Section 3 & 6. Sections 5 and 6 are optional. Either on both of them can be deleted from the cover taken, in case they are not relevant to him.

Coverage Under Home Suvidha

Fire and Allied Perils (Contents): Contents of premises are covered against fire, explosion, bursting/ overflowing of water tanks, riots, strike and malicious damage, earthquake, flood, cyclone, landslide etc.

Burglary and other Perils (Contents): Contents of premises are covered against housebreaking, burglary, robbery or dacoity and also against impact damages by falling trees/electric poles/lamp posts, breakage or collapse of television or radio aerials/satellite dishes and damage by civic authorities in the prevention of fire.

Television/Video Equipment: This Section covers loss or damage to your television/ video equipment against fire, theft, accidental damage and breakdown.

Personal Accident: This section covers an individual and his named family members against accidental bodily injury leading to death or disablement (either permanent total or permanent partial).

78

Fire and Allied Perils (Building): This Section covers the residential building, if owned by you against perils mentioned under the Fire and Allied Perils (Contents) Section.

Personal Computer: This Section covers loss or damage to your personal computer against fire, theft, accidental damage and breakdown.

Trade Suvidha

Trade or Business is constantly exposed to various kinds of risks. Some unfortunate occurrences might bring a huge financial burden to an individual’s business and him. Although he cannot guard his business from all possible risks, he can take steps to help tide over some unexpected events.

A Complete Protector

ITGI’s Trade Suvidha Insurance Policy gives complete protection to an individual’s business against a wide range of risks and perils. It is a simple Policy wherein there are various categories of Sum Insured and a person may opt for the category most suitable to him depending upon the extent of risk.

Coverage Under Trade Suvidha

Fire and Allied Perils (Contents): Contents of premises are covered against fire, explosion bursting/overflowing of water tanks, riots, strike and malicious damage, earthquake, flood, cyclone, landslide etc.

Burglary and other Perils (Contents): Contents of premises are covered against housebreaking, burglary, robbery and dacoity along with impact damage by falling trees/electric poles/lamp post, breakage or collapse of television or radio aerials/satellite dishes and damages by civic authorities in prevention of fire.

Money: This section covers loss of money in premises or in transit due to accident or misfortune, hold-up, house breaking, robbery, dacoity etc.

Personal Accident: This Section covers an individual and other named persons connected with his business against accidental

79

bodily injury leading to death or disablement (either permanent total or permanent partial)

Fidelity Guarantee: This Section covers direct pecuniary losses caused to you by any act of fraud or dishonesty committed by employees.

Electronic Equipment: This Section covers loss or damage to electronic equipments like computers; fax machines etc. which are installed in trade premises.

Reliance General Insurance

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability.

Reliance General Insurance is the fastest growing private sector general insurance company in India with innovative product

80

offerings and customer service standards that are benchmarked to the best insurance practices in the world.

Reliance General Insurance offers a wide range of products for corporate and individual customers. With a focus on customer centric products, multiple distribution channels and technology adoption we aim to capture substantial market share across product lines.

Vision

To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level.

Mission

Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.

Objectives

Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting

and policy servicing Be the most innovative in product development Establish Pan India presence

Value propositions

Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk transfer solution.

81

Post sales services: Differentiate on service parameters by ensuring prompt and correct documentation& fair, transparent, speedy claims settlement.

New products: Introduce innovative products suited to specific market segments

Training: Extensive training to the employees involved in underwriting and claims to ensure availability of a varied experienced and competent team to cater to the customer needs.

Technology: Use IT as a means to provide for a far superior customer experience in terms of access, speed and simplicity

Reinsurance backing: Apart from using capacity of the national reinsurer, establish relationships with the best reinsurers across the world.

Healthcare Opportunity in India - Mckinsey report

Healthcare spending in the next 10 years will Double Healthcare spending will increase to 2,00,000 crores by

2012 (Rs.86,000 crores in 2000-01) Health care insurance sector is to become a

- Rs 25,000 crore industry by 2009 (Rs.1200 crores- in 2001-02)

- Rs 75,000 crore by 2020

Need for Health Insurance

Urban Lifestyle and Rural Infrastructure support Inadequate Facilities in Government Hospitals Privately run hospitals are expensive Increased cost of medication

o Diagnostic Expenses have spiraledo Specialist Doctors come expensive

Increasing Population with income disparity More nucleus family means less savings and less disposable

income Changing disease profile and lack of Medical Information

82

Reliance Health Wise Policy

What is Reliance Health Wise Policy?

Reliance Health Wise Policy provides for …………….

Financial Assistance for you and your family against Hospitalisation, Expenses towards disease / illness / injury in India along with host of value additions / options

This policy covers hospitalisation and domiciliary hospitalisation expenses incurred by the Insured (including family members) for illness / disease or accidental injury and shall include hospital charges (room & boarding and operation theatre), fees of surgeon, anesthetist, nurses, cost of medicine, oxygen, blood, cost of appliances like pacemaker, artificial limbs and cost of organs.

Scope of Cover

The Policy offers the feature of Third Party Administrator services.

The Policy covers illness / disease or accidental injury leading to expenses of various types referred to above.

Hospitalization expenses and domiciliary hospitalisation expenses referred to above shall be subject to a maximum of the sum insured at inception of the policy.

The Policy covers individuals aged between 5 and 75 years. However, children aged between 3 months and 5 years can be covered if one or both parents are covered concurrently.

Exemption under section 80 (D) of the Income Tax Act, 1961 is presently available for premium paid by cheque.

The Insured is entitled to reimbursement of the cost of medical check-up once at the end of a block of every four underwriting years provided there were no claims reported during the block. The cost so reimbursable shall not exceed an amount equal to 1% of the average sum insured during the block of four underwriting years.

The sum insured under the policy shall be progressively increased by 5% in respect of each claim free year of insurance subject to a maximum accumulation of 10

83

claim free years of insurance. In the event of a claim under the policy in respect of an Insured Person who has earned any cumulative bonus, the increased sum insured will be reduced by 10 % at the time of renewal. However, the basic sum insured will be maintained at all times.

Policy Options

Reliance Health Wise Policy :- Standard Reliance Health Wise Policy :- Silver Reliance Health Wise Policy :- Gold

Wide range of sum insured

Standard – Rs. 1 lakh to Rs. 5 lakhs Silver – Rs. 1 lakh to Rs. 5 lakhs Gold – Rs. 1 lakh to Rs. 5 lakhs

Key Advantages

For the first time in India, Critical Illness are also covered as part of Health Insurance Policy

A separate Double Sum Insured is automatically available as soon as any of the listed critical illnesses is diagnosed

24 hours cashless facility at more than 3000 network hospitals

Income Tax benefits under Section 80 D Options in duration of coverage – 1 year/2year policies

available Family Floater benefit giving comprehensive protection

to family members under one single policy Discount on renewal premium for claim free policy Coverage of pre-existing conditions after 2 years/4 years

as per plan opted

What does this policy cover?

Basic Features

Hospitalisation Expenses Daycare Treatment Domiciliary Hospitalisation Pre and Post Hospitalisation

84

Coverage of Pre-Existing Diseases Critical Illness Cover Donor Expenses

Hospitalization Expenses: Expenses incurred towards -

Hospital (room, boarding and operation theater) Doctors and nurses Medical tests Medicines, blood, oxygen, appliances etc

Day Care Treatment: Medical expenses towards specific technological advanced day care treatments/surgeries where 24 hours of hospitalization is not required

Domiciliary Hospitalization: All expenses related to a medical treatment, which is being administered at home, subject to specific conditions applicable

Pre and Post Hospitalization: Medical expenses related to treatment before and after hospitalization for a specified number of days

Pre-Existing Diseases: Coverage of pre-existing diseases after two/four continuous renewals with us.

Critical Illness: Sum insured is automatically doubled separately for treatment of Cancer, Coronary artery bypass surgery, First heart attack, Kidney failure multiple sclerosis, Major organ transplant, Stroke, Aorta graft surgery, Paralysis and Primary pulmonary arterial hypertension

Donor Expenses: All hospitalization expenses incurred by the donor in case of major organ transplant are covered

Value added benefits

Daily Hospitalization Allowance for a maximum period of seven days

Nursing Allowance for a maximum period of five days, on recommendation of the treating Medical Practitioner

85

Reimbursement of charges towards local road ambulance services Recovery Benefit of Rs. 10,000/- in case of hospitalization for more than ten consecutive days

Expenses of an Accompanying Person at the Hospital/Nursing Home for a maximum of five days

Cost of Health Check up at the end of a block of four years, provided there were no claims reported

What does the Policy not cover?

Pre-existing illness will not be covered for the first two/four years, as per the plan opted

Any disease contracted during the first 30 days of inception of policy

Treatment of pregnancy & childbirth-related complications Suicide, self inflicted injury or illness, mental disorder,

stress or depression, use of alcohol or drugs Diseases such as HIV or AIDS Cost of contact lenses and hearing aids Dental treatment or surgery of any kind unless requiring

hospitalization Expenses on vitamins and tonics unless forming part of

treatment for disease/injury War, terrorism and nuclear weapons induced hospitalization

86

87

Research Methodology

Research Design Exploratory Survey

Research Type Qualitative

Quantitative

Research Technique Judgmental sampling

Data universe Population of Jaipur (Approx. 45

lakh)

Data collection

We have collected data as follows:

Primary data

Need Analysis Form FHC Forms

Me & My Family contest

Reference Calls

Telephone Directory

Golf Course Club Diary

Hutch Data base

Secondary data

Collection of data from Websites, Newspaper, Magazine, IRDA

Journal – April 07,

Sampling Plan

Sample Size = 105

Data Analysis

88

Our questionnaires is divided into three sections. These are:Section A: This section gave us the data for:

Understanding the number 1 priority and advising based on that.

Understanding when the money is required

Section B: Sum assured required/assets and liabilities:Would tell me the cover required, based on the deficit between the assets and liabilities, net of the current cover.

Section C: This section gave us the data for: Inflation protection Understanding how much the prospect is willing

to invest Solution Grid Time Horizon Grid

Solution Grid

Number 1 Priority ChosenRecommended Solution

Saving for Children's education ELP

Saving for Children's MarriageELP, LSP,LB5, Life Long, FLP

For Retirement Pension PlusOwn Wealth ELP, LB5, FLP Financial Protection for family Life LongIncome Protection for family Life LongFinancial Protection for hospitalisation Life Long, FLP

Time Horizon Grid

Question: I need these funds after………….years.

We have to use the table below, in conjunction with the “Solution Grid”

89

After How many year'sthe funds are required

TimeHorizon Products

1 to 5 Short Term FLP, LB55 to 10 Medium TermFLP, LB5, ELP10 + Long Term Life Long, LSP

We found in our survey:

Preferences given by people while investments Age Gruoup 1st Preference

21-30 Equities31-40 Mutual Funds, Properties41-50 Insurance51-60 Bank Deposits

90

22

25

18

20

15

0 5 10 15 20 25

Percentages

Equities

Mutual Funds/Property

Insurance

Bank Deposits

Others (e.g. Gold)

Pre

fere

nc

e

Preference given by the people of Jaipur for investments (Total)

Agendas preferred by different age group people

Age Groups Agenda

21-30Financial protection for hospitalization, critical illness and disability,For your own/spouse long term wealth/estate creation

31-40Savings for children's marriage,Savings for children's marriage

41-50Income protection for your family in case of unfortunate death,Financial protection for your family for repaymen of al loans

51-60 Savings for a happy post retirement life

Professions Preference

Govt. Servicemen Bank Deposits, InsurancePrivate Servicemen Mutual Funds

Businessmens (Shopkeepers) PropertyIndustrialist Equities

Others (Housewives, Students) Equities

91

Preference given by the people of Jaipur for investments (Total)Preference Percentages

Equities 22Mutual Funds/Property 25

Insurance 18Bank Deposits 20

Others (e.g. Gold) 15

IndexationYes 88No 12

People prefer indexation while investment

Yes88%

No12%

92

FHC (Financial Health Check Up)Yes 0%NO 100%

Do you want your investment to be protected against inflation rate?

Do you know about FHC ?

Yes, 0%

NO, 100%

YesNO

Cluster No.

Area

1 Shastri Nagar, Bani Park2 Jawahar Nagar, Adarsh Nagar, Tilak Nagar3 Malviya Nagar, Bapu Nagar, Durgapura, Mahavir Nagar,

Bajaj Nagar4 Veshali Nagar, Mansarovar, Jhotwara, Civil Line, Shyam

Nagar5 City area: Chandpole, Indra Bazar6 Industrial area: BAIS Godam, Sitapura, Jotwara Industrial

area etc.7 Institutional area: Jalava, Jalani Institutional area

93

Preference/Clusters 1 2 3 4 5 6 7Properties 4 2 3 2 3 2 3Equities 2 4 4 3 1 3 2

Mutual Funds 3 3 3 3 2 2 1Bank Deposits 1 2 1 3 4 3 5

Insurance 3 3 3 2 2 4 2

Others 2 1 1 2 3 1 2

"Priorities from the people of different clusters"

4

2

3

1

3

2

4

3

2

3

1

4

3

3

1 2

3

3

3

2

2

1

2

4

2

3

2

3

2

1

2

1

5

2

2

2 3

1

3

3

4

3 Properties

Equities

Mutual Funds

BankDeposits

Insurance

Others

How much premium you are ready to pay for insurance in a year?Premium

25000 & More 8%15000 to 25000 27%Less than 15000 65%

How much premium you are ready to pay for insurance in a year?

8%

27%

65%

25000 & More15000 to 25000Less than 15000

Any kind of loan taken by you ?

Liabilities PercentagesHouse Loan 33%

94

Car Loan 28%Credit Card Loan 12%

Other Loan 27%

33% 28% 12% 27%

House Loan Car Loan Credit Card Loan Other Loan

Liabilities

Loan taken by people

95

Findings

88% people are taking indexation option to beat the inflation.

21-30 age group people are more risk takers. They give highest priorities to insurance for financial protection for hospitalization, critical illness and disability, and for your own/spouse long term wealth/estate creation and more interested in investing money in Equities market.

31- 40 age group people give highest priorities to insurance for savings for children's marriage, and savings for children's marriage, and are interested in Mutual funds and properties.

41-50 age group people give highest priorities to insurance for income protection for your family in case of unfortunate death, and financial protection for your family for repayment of all loans, and interested in investments through insurance products.

51-60 age group people are risk averter. They give highest priorities to insurance for savings for a happy post retirement life, and interested in investment in Bank Deposits.

People are taking insurance as a tax saving tool. Many people are not aware about Aviva’s insurance cum

investment Products. 80% people are not insured , only 20% people are insured

and 50% out of these 20% are under insured (Source: www.avivaindia.com)

65% people are more interested in investing less than 15000 Rs. Per year.

People are not at all aware about the FHC service of Aviva. In overall insurance market of Jaipur people are more risk

takers. 25% peoples are interested in Mutual funds and Properties, 22% people are interested in Equities investments, 20% in Bank Deposits, 18% in Insurance and 15% peoples are taking interest in Gold etc.

In Jaipur 33% people pay for House Loans because they are interested in properties and it also provides the tax relief than in Car loans and Credit Card Loans.

In Cluster First approx. 27% peoples are investing in Properties, in Second and Third cluster investments in

96

Equities are high, and in Fifth and Seventh cluster people investing more in Bank Deposits.

Recommendations

Aviva Life Insurance should focus on in-depth promotional activities specially for FHC.

Aviva Life Insurance should introduce some unique products in insurance cum investment plan which would be helpful to middle class people.

Company can give discount on some Single Premium Investment Policies.

97

Glossary

Accident: An event or occurrence causing damage/injury to an entity, and is unforeseen and unintended. Accident benefit: Provides for payment of an additional benefit equal to the sum assured in installments on permanent total disability and waiver of subsequent premiums payable under the policy. Age limits: Stipulated minimum and maximum ages below and above which the company will not accept applications or may not renew policies. Agent: An insurance company representative licensed by the state that solicits, negotiates or effects contracts of insurance, and provides service to the policyholder for the insurer. Annuity plans: These plans provide for a “pension” (or a mix of a lump sum amount and a pension) to be paid to the policyholder or his spouse. In the event of death of both of them during the policy period, a lump sum amount is provided for the next of kin. Beneficiary: The person(s) or entity (ies) (e.g. corporation, trust, etc) named in the policy as the recipient of insurance proceeds upon the death of the insured. Coverage: The scope of protection provided under a contract of insurance; any of several risks covered by a policy. Endowment policy: The assured has to pay an annual premium, which is determined on the basis of the assureds age at entry and the term of the policy. The insured amount is payable either at the end of specified number of years or upon the death of the insured person, whichever is earlier. Fire insurance: Coverage for losses caused by fire and lightning, plus resultant damage caused by smoke and water. Flood insurance coverage against loss resulting from the flood peril, available at low cost under a program developed by the central government. Indemnity: Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss. Insurable Interest: A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer an emotional or financial loss, if any untouched event

98

occurs. Without insurable interest, an insurance contract is invalid. Insurance: Social device for minimizing risks of uncertainty regarding loss by spreading the risk over a large enough number of similar exposure to predict the individual change of loss. Insured: The person whose life is covered by a policy of insurance. Life Assured: The person whose life is insured by an individual life policy is called life assured. Maturity: The date upon which the face amount of a life insurance policy, if not previously invoked due to the contingency covered (death), is paid to the policyholder. Maturity Claim: The payment to the policyholder at the end of the stipulated term of the policy is called maturity claim. Money Back Policy: Unlike endowment plans, in money back policies, the policyholder gets periodic “survivance payments” during the term of the policy and a lump sum amount on surviving its term. In the event of death during the term of the policy, the beneficiary gets the full sum assured, without any deductions for the amounts paid till date, and no further premiums are required to be paid. These type of policies are very popular, since they can be tailored to get large amounts at specific periods as per the needs of the policy holder. Premium: The payment, or one of the regular periodic payments that a policy holder makes to an insurer in exchange for the insurer’s obligation to pay benefits upon the occurrence of the contractually-specified contingency (e.g. death).Risk: The obligation assumed by the insurer when it issues a policy. The spreading of risk across a broad base of the population, adjusted for statistical probability, and the protection against catastrophic loss, is the entire purpose of insurance. For risk assumption purposes, death is viewed as a contingency. That is , although death is certain, its timing is unknown. The process of evaluation and selecting risk is known as underwriting. Surrender value: The value payable to the policyholder in the event of his deciding to terminate the policy before the maturity of the policy.

99

Bibliography

Web sites

www.AvivaIndia.com

www.irdaindia.org

www.indiainfoline.com

www.ficci.com

www.ontarioinsurance.com

www.III – International Insurance Fact book – World Rankings

Book & Journals

Alfa, Aviva hand document

IRDA Journals

Annual Reports

IRDA Annual Report, 2004-05

IRDA Annual Report, 2005-06

10

Script used for Reliance Money

Good Morning/Afternoon/Evening Sir/Madam

My name is Dipika Chowdhary, calling from Reliance Money. Reliance Money has introduced a very family friendly Health Insurance policy in which there is a cashless facility in 41 Hospitals of Jaipur. There is Standard, Silver and Gold policy with different features. I would like to call on u to explain view the features of policy.

Thank you

Script used for Aviva Life Insurance

Good Morning/Afternoon/Evening Sir/Madam

My name is Ashawini Sharma. I am doing MBA from Aravali Institute of Management, Jodhpur. I am on my Summer Project with Dabur Aviva. In Aviva we have a unique service called FHC i.e. Financial Health Checkup. In this first we do your Financial Need Analysis and on the basis of that we provide you a Financial Solution. This Financial Solution will fulfill your Financial Need on Time – to - Time basis and it will also help you on your tax savings. It is free of cost service with no obligation. If you will go with this it will be a new and useful experience for you. For this I required your valuable 20 minutes. So Sir/Madam can I meet you today in the evening or tomorrow morning will suit you.

Thank you

10