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A PROJECT
ON
STUDY OF LIFE
INSURANCE NEEDS AND HABITS AMONG PEOPLE
AND DIRECT SELLING OF THE INSURANCE
POLICIES
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TABLE OF CONTENT
Chapter 1: Objective of the study - Abstract
Chapter 2: esearch !ethodo"o#y
Chapter $: Co%pa&y 'rofi"e
Chapter (: )&sura&ce
Chapter *: A&a"ysis a&d )&terpretatio&
'roduct +&o,"ed#e .ypothesis Testi
Chapter /: Co&c"usio& a&d Li%itatio&
Chapter 0: u##estio&
Chapter : Bib"io#raphy
Chapter 3: A&&e4ure
5uestio&&aire
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ABSTRACT
The project is tit"ed as 6tudy of Life i&sura&ce &eeds a&d habits a%o peop"ea&d direct se""i of "ife i&sura&ce po"icies78 The project ,i"" focus o& tudy of the
co&su%er behavior ,hi"e #oi for the "ife i&sura&ce po"icies8 )t ,i"" trace the history a&d
#ro,th of i&sura&ce i&dustry a&d fi&a&cia" %ar9ets8 The project ,i"" acco%p"ish the tas9
of ide&tifyi a&d educati o& the various i&sura&ce i&stru%e&ts avai"ab"e i& the
%ar9ets8 )t ,i"" a"so "ay e%phasis the direct se""i a&d %ar9eti of the CB L)fe
)&sura&ce"ife;s i&sura&ce po"icies8 )t ,i"" spread the a,are&ess about the various products
ofLIFE INSURANCE COMPANY i& the %ar9et a&d ,i"" e&ha&ce our %ar9eti s9i""8 )t
,i"" #ive a &e, a&d practica" idea to,ards the %ar9et a&d ,i"" he"pfu" for us because ,e
have ta9e& %ar9eti a&d fi&a&ce as a ua"-specia"i a&d "oss of i&co%e due to disabi"ity or death8
8
The L)FE )N?ANCE8 is o&e of the 9ey %ar9et p"ayers i& @aipur a&d
ehradu&= havi a stro i&vestor base a&d the %ar9et operatio&8 o the fi&di of the
project ,ou"d he"p i& the u&dersta&di the &eed a&d e4pectatio& of custo%er better8 The
i&sura&ce objective ris9= retur& e4pectatio& a&d future e4pectatio& ,i"" be cover8
The perfor%a&ce of the i&sura&ce i&dustry as co%pare to the deve"opi ,or"d is
&ot up to the %ar98 o the ,i"" a"so e4press the 9ey issue i& the i&dustry is faci Acti
as co%pa&y resources ,e ,i"" be active"y i&vo"ved i& se""i the i&sura&ce cu%
i&vest%e&t products of the co%pa&y= besides co""ecti data fro% the %ass as their
thou#hts a&d prefere&ces ,hi"e #oi for "ife i&sura&ce po"icies8
The process be#a& ,ith a trai&i ,hich ,as i%parted to us by our sa"es
%a&a#er for 1 %o&th i& @aipur= i& ,hich ,e studied the various products of the co%pa&y
a&d the co%petitive adva&ta#e a&d disadva&ta#e of the co%petitors a&d a"so the
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%ar9eti tech&iues i&vo"ved i& co&vi&ci the custo%ers to #o for e"ia&ce;s
)&vest%e&t p"a&s8
)& the "ater part of the i&ter&ship the tea% ,as %i#rated to their ho%eto,&s ,here
it cou"d #e&erate %uch %ore busi&ess tha& @aipur= because it bei their &atura" %ar9et8
o acti upo& the #uida&ce of %y Co%pa&y #uide= ) %oved to %y ho%eto,& ehradu&
to #e&erate busi&ess8
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INTRODUCTION
!ai& objective of this project ,i"" be co""ecti data a&d be"iefs of the peop"e a&d
studyi their co&su%er behavior ,hi"e #oi for the i&sura&ce po"icies= a"so studyi
the i&vest%e&t products of other Life i&sura&ce co%pa&ies a&d co%petitors8 After
a&a"y
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Winds o !"#n$%
The Life )&sura&ce Corporatio& of )&dia L)C has bee& depe&de&t o& its distributio&
cha&&e" of over = = a#e&ts8 But the corporatio&s rete&tio& rates have bee& "o,=
%ai&"y because of poor ua"ity a#e&ts8 Dhi"e it re%ai&s obvious that a#e&ts ,i"" co&ti&ue
to be the %ai&stay i& i&sura&ce distributio& for so%e ti%e i& )&dia= there is a"so stro
i&dicatio& that this sa"es %ode" is s"o,"y chai There are three basic reaso&s for this:
ustai&i hu#e sa"es force is a cost"y affair especia""y ,he& "o,-cost e"ectro&ic
distributio& cha&&e"s are avai"ab"e8
A"ter&ate de"ivery cha&&e"s are &ot burde&ed by the %o&etary a&d #eo#raphic
"i%itatio&s of %ai&tai&i a physica" prese&ce8
A"ter&ate cha&&e"s a"so he"p to cut bac9 costs a&d e&ha&ce custo%er service
thereby #ivi the co%pa&y a co%petitive ed#e8
ue to this= the private p"ayers ,hich %ere"y have a %ar9et share of $G i& a"" have a
co%petitive adva&ta#e i& %a9i their %ar9 i& the i&dustry8 A"so= a&other adva&ta#e of
the private p"ayers is that= they 9eep a&d hire o&"y those peop"e as a#e&ts ,ho% they
thi&9 ca& ,or9 a&d have the ,i"" i& the%8
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Limitations
There are various "i%itatio&s i& the co%p"etio& of the ,or9 do&e so far a&d they are as
fo""o,s:
'eop"e sti"" do &ot re"y o& these private i&sura&ce co%pa&ies8
'eop"e fee" that pre%iu% is very hi#h8
E4iste&ce of various co%petitors i& the i&sura&ce sector8
'eop"e sti"" prefer to buy po"icies for ta4 be&efits rather tha& i&sura&ce cover8
'eop"e &eed products that #ive hu#e retur&s8
The &eed of each i&dividua" differs fro% o&e a&other
Today;s #e&eratio& ,a&t products that are at par ,ith the products of deve"oped
cou&tries8
The ris9 a&d retur&s ca& vary as per the fi&a&cia" %ar9et co&ditio&s8
Advisors just se"" the products to co%p"ete their tar#ets rather eva"uati the &eed
of the custo%ers8
'eop"e are very re"ucta&t i& fi""i up uestio&&aires8
'eop"e re"ucta&t"y buy i&sura&ce po"icies i& Apri" a&d !ay8
The database ,i"" be asse%b"ed coveri s%a"" sa%p"e si
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Data collection methods and sources
?&der the ,or9 of this project= ) a% fo""o,i certai& %ethodo"o#ies usi pri%ary as
,e"" as seco&dary sources of data8
T"% &'i(#') '%s%#'!" *i++ in!+,d%-
Face to face i&teractio& ,ith the i&vestors
)&teractio& ,ith the facu"ty a&d co%pa&y #uide8
T"% s%!ond#') d#.# *o,+d in!+,d%-
ata fro% i&ter&a" records of L)fe )&sura&ce8
ata fro% )&ter&et sites of L)fe )&sura&ce a&d other p"ayers8
)&sura&ce a&a"yst fro% )CFA)8
ata fro% busi&ess ,ee9"ies8
Other tha& these data= ) a% usi certai& %ethods to tar#et the %ar9et8 ) had p"aced
s%a"" 9ios9s i& fro&t of hospita"s= schoo"s a&d hote"s8 ) have distributed the pa%ph"ets of
chi"dre& p"a&s ,ith %y pho&e &u%ber ,ritte& o& that to the chi"dre& of ju&ior sectio&s of
schoo"s a&d received ca""s upo& that fro% there pare&ts8
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MAIN TE/T
)&sura&ce is &ot &ecessari"y a& i&vest%e&t fro% ,hich o&e e4pects to #et o&es %o&ey
bac98 Nor is it #a%b"i A #a%b"er ta9es ris9s= ,hi"e i&sura&ce offers protectio& a#ai&st
ris9s that a"ready e4ist8 )&sura&ce is a ,ay to share ris9 ,ith others8 )&sura&ce has e4isted
for thousa&ds of years8 A for% of credit i&sura&ce ,as i&c"uded i& the Code of
.a%%urabi= a co""ectio& of Baby"o&ia& "a,s said to predate the La, of !oses8 To
fi&a&ce their tradi e4peditio&s i& a&cie&t ti%es= ship o,&ers obtai&ed "oa&s fro%
i&vestors8 )f a ship ,as "ost= the o,&ers ,ere &ot respo&sib"e for payi bac9 the "oa&s8
i&ce %a&y ships retur&ed safe"y= the i&terest paid by &u%erous ship o,&ers covered the
ris9 to the "e&ders8
The i&sura&ce i&dustry provides protectio& a#ai&st fi&a&cia" "osses resu"ti fro% a
variety of peri"s8 By purchasi i&sura&ce po"icies= i&dividua"s a&d busi&esses ca& receive
rei%burse%e&t for "osses due to car accide&ts= theft of property= a&d fire a&d stor%
da%a#e> %edica" e4pe&ses> a&d "oss of i&co%e due to disabi"ity or death8
) have bee& researchi co&ti&uous"y i& the %ar9et for i&sura&ce i&dustrya&d have co""ected fo""o,i data
[A] The investment in life insurance product has many roles to play some of these are
Role 1: Life insurance as "Investment"
)&sura&ce is a& attractive optio& for i&vest%e&t8 Dhi"e %ost peop"e reco#&i
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Role 2: Life insurance as "Ris cover"
First a&d fore%ost= i&sura&ce is about ris9 cover a&d protectio& - fi&a&cia" protectio&= to
be %ore precise - to he"p out"ast "ifes u&predictab"e "osses8 esi#&ed to safe#uard a#ai&st
"osses suffered o& accou&t of a&y u&foresee& eve&t= i&sura&ce provides you ,ith that
u&iue se&se of security that &o other for% of i&vest%e&t provides8 By buyi "ife
i&sura&ce= you buy peace of %i&d a&d are prepared to face a&y fi&a&cia" de%a&d that
,ou"d hit the fa%i"y i& case of a& u&ti%e"y de%ise8
Role !: Life insurance as "Ta plannin#"
eductio&s fro% #ross i&co%e o& Life )&sura&ce pre%iu% paid Traditio&a" H ?&it
Li&9ed '"a&s
?&der ec C of )&co%e Ta4 Act
Avai"ab"e for 're%iu% paid %a48 up to 2G of A o& Life )&sura&ce po"icies a&d as a
co&tributio& o& a pe&sio& p"a& ,ith a %a4i%u% cei"i p8a8 s81== irrespective of
the Iross Tota" )&co%e8
?&der ec of )&co%e Ta4 Act
're%iu% paid for Critica" )""&ess rider is deductib"e as %edica" i&sura&ce pre%iu% fro%
the a&&ua" i&co%e char#eab"e to ta4 up to a %a4i%u% a%ou&t of s81
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E0%(&.ion 'o( ."% Li% Ins,'#n!% &'o!%%ds
Und%' S%! 12312D4 o IT A!.
!aturity be&efits are ta4-free i& the ha&ds of the po"icyho"der if= at a&y poi&t
of ti%e duri the po"icy "ife= pre%iu%s paid ,ithi& o&e year do &ot e4ceed
2G of the basic u% Assured8
eath be&efits are ta4-free8
5B6 Indi#n Ins,'#n!% Ind,s.')
Dith such a "ar#e popu"atio& a&d the u&tapped %ar9et area of this popu"atio&=
)&sura&ce happe&s to be a very bi# opportu&ity i& )&dia8 Today it sta&ds as a busi&ess
#ro,i at the rate of 1*-2 per ce&t a&&ua""y8 To#ether ,ith ba&9i services= it adds
about 0 perce&t to the cou&try;s I' 8)& spite of a"" this #ro,th the statistics of the
pe&etratio& of the i&sura&ce i& the cou&try is very poor8 Near"y G of )&dia&
popu"atio&s are ,ithout Life i&sura&ce cover a&d the .ea"th i&sura&ce8 This is a&
i&dicator that #ro,th pote&tia" for the i&sura&ce sector is i%%e&se i& )&dia8 )t ,as due to
this i%%e&se #ro,th that the re#u"atio&s ,ere i&troduced i& the i&sura&ce sector a&d i&
co&ti&uatio& ."% $o7%'n(%n. in 1889 .o %0#(in% ."% 7#'io,s #s&%!.s o ."% ind,s.')
!ons.i.,.%d M#+"o.'# Co((i..%%8 The 9ey e"e%e&t of the refor% process ,as
'articipatio& of overseas i&sura&ce co%pa&ies ,ith 2/G capita" creati a %ore efficie&t
a&d co%petitive fi&a&cia" syste% suitab"e for the reuire%e&ts of the eco&o%y ,ith the
"i%it o& F) i& the i&sura&ce sector= the #over&%e&t e&sured that state ru& a#e&cies such
as the L)C a&d I)C ca& %ai&tai& their pro%i&e&ce8
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i&ce the i&ceptio& the i&sura&ce i&dustry has #o&e throu#h %a&y sea chaes= ear"ier
there ,as o&"y L)C that provides "ife i&sura&ce i& )&dia but i& 1333= the )A ,as setup
u&der the )A Act8 Co%pa&ies= aspiri to carry o& i&sura&ce a&d rei&sura&ce busi&ess
i& )&dia= are reuired to re#ister ,ith )A= the so"e authority #ra&ti "ice&se to carry
out i&sura&ce busi&ess i& )&dia after the for%atio& of )A %a&y private p"ayer;s e&teredthe %ar9et of "ife i&sura&ce busi&ess a&d that "ead to Creati a %ore efficie&t a&d
co%petitive fi&a&cia" syste% suitab"e for the reuire%e&ts of the eco&o%y i&ce the
"ibera"i
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5C6 THE FACE OF INSURANCE INDUSTRY IN INDIA-
Fro% the )&dia& Life )&sura&ce Co%pa&y Act i& 1312 to the )A Act i& 1333=
re#u"atio& of i&sura&ce busi&ess has co%e a "o ,ay8 )&sura&ce is a subject of federa""a, a&d a"" i&sura&ce i& )&dia has bee& &atio&a"i
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Co&siste&t #ro,th has bee& observed i& the private i&sura&ce %ar9ets8 Thou#h L)C
has bee& i& the cou&try for a "o ti%e= it did&;t tap %uch of the rura" %ar9et8 )t o&"y
co&ce&trates o& the e&do,%e&t a&d %o&ey bac9 po"icies8 'rivate i&surers had ta9e&
adva&ta#e of this a&d had co%e ,ith i&&ovative products "i9e ?&it Li&9 )&sura&ce'roducts ?L)'s8
SOURCE:-)A jour&a" KApri" 2/
5D@ MARET SHARE OF ARIOUS PLAYERS OPERATING IN LIFE
INSURANCE INDUSTRY
i&ce the adve&t of the private p"ayers i& the %ar9et the i&dustry has see& &e,
a&d i&&ovative steps ta9e& by the p"ayers i& this sector8 The &e, p"ayers have i%proved
the service ua"ity of the i&sura&ce8 As a resu"t L)C do,& the years have see& the
dec"i&i phase i& its career8 The "ife i&sura&ce i&dustry has recorded a #ro,th of
128(1G i& pre%iu% co""ectio& for the period of Apri" / to February 0 over
correspo&di period i& the previous year8 The %ar9et share ,as distributed a%o the
private p"ayers8
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NA!E OF T.E
CO!'AN
TOTAL 'E!)?!
COLLECTE ?'TO
February 212)& Crores
!A+ET .AE )N G AN+)NI
18BA@A@ ALL)ANP 233081 *810 $rd
28)NI MA $(38 8/$ 12th
$ CB L)FE
)N?ANCEL)FE
/(8** 18($ 3th
( B) L)FE 1011833 283* (th
* TATA A)I *(/8*1 83($2 1th
/ .FC TANA 12381 282( *th
0 )C)C) '?ENT)AL (/38/ 082( 2&d
B)LA ?NL)FE /*18$/ 1812(2 0th
3 AM)MA *283 18/ th
1 +OTA+ !A.)NA
OL !?T?AL
(($8// 80/*0 11th
11 !A NEDO+ 01383 182(2( /th
12 !ET L)FE 2$(8$ 8(*$ 1$th
1$ A.AA L)FE 2*8/0 8(($ 1*th
1( .)A! L)FE 12(8/$ 821* 1(th
1* B.AT) AA (8( 800 1/th
1* L)C ($*0$8(* 0*82 1t
TOTAL :89>: 1 --------
SOURCE: -Jeport card: Life;=
)A jour&a" KApri" 20 p# (-*
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TOTAL !A+ET )PE::89>: C'o'%s
Fro% the above pie chart a&d tab"e ,e ca& co&c"ude that sti"" L)C is the %ar9et
"eader i& i&sura&ce i&dustry as it has a %ar9et share of a"%ost =i& "ife i&sura&ce
i&dustry co%pared to private p"ayers ,hich have o&"y 2$G of the tota" %ar9et share up
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to !arch 20= L)C curre&t"y has a pre%iu% co""ectio& of ?9:9>?: C'o'%sco%pared to
1?9:>? C'o'%sof private p"ayers but the poi&t here ,hich is to be &oted here is that over
a period of ti%e the %ar9et share of L)C has dec"i&ed a&d %ar9et share of private p"ayers
have i&creased it ca& further be c"eared fro% the tab"e #ive& be"o,:
Fi&a&cia" year 22-$ 2$-( 2*-/ 2/-20 ?p
to !arch
CBL)C 32GQ 28$$G 018/*2G 0*G
')MATE
'LAE
GQ 108/0G 28$(G 2*G
QSo,'!%:-)A reports
SOURCE:-)A jour&a" K@u&e 2(= K!arch 20
o fro% the above tab"e ,e ca& say that there is a dec"i&e i& %ar9et share of L)C
i& 21-2 it ,as arou&d 3G but i& !arch 20 it is 0*G so %ar9et share of L)C has
dec"i&ed by a"%ost 2$8$(G fro% 21-2 to February 2/= ,e a"so &ote that the
%ar9et share of L)C has i&creased up ti"" 0*G ti"" !arch 20= but the poi&t ,hich is to
be &oted here is that this dec"i&e i& %ar9et share is &ot due to dec"i&e i& pre%iu%s of L)C
as they have rise& fro% year to year= )& %a&ifo"d but this dec"i&e i& %ar9et share is
%ai&"y due to e&try of other private p"ayer;s a&d a"so due to i&crease i& the pre%iu%
co""ectio& by the overa"" i&dustry8
GROWTH TREND IN LIFE INSURANCE INDUSTRY
FINANCIAL
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YEAR 3UPTO
FEBRUARY
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1> The %ajor opportu&ity for i&sura&ce busi&ess is that sti"" a "ar#e portio& of
popu"atio& is u&i&sured a&d those ,ho are i&sured are u&der i&sured so there is a&
opportu&ity for i&sura&ce co%pa&ies to i&crease there reve&ues by i&suri the
u&tapped portio& of the popu"atio&8
The savis of peop"e ca& be diverted fro% ba&9i sector to i&sura&ce sector by
offeri custo%ers hi#her i&terest rates throu#h u&it-"i&9ed p"a&s89> There is a& opportu&ity for private p"ayers to i&crease their %ar9et share by
providi better products a&d services tha& L8)8C8
CHALLENGES-
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T"% i7% (#in !"#++%n$%s #!%d ) ins,'#n!% ind,s.') #'% #s o++o*s
1> Lo* #*#'%n%ss +%7%+- "ar#e portio& of the popu"atio& of )&dia is sti"" u&a,are of
the i&sura&ce as a ,ho"e= so it is a %ajor cha""ee before a"" the p"ayers i&
i&sura&ce i&dustry to %a9e the custo%ers a,are about i&sura&ce a&d ,hat are
their %ajor products8 P'od,!. inno7#.ion-Co%pa&ies sti"" fo""o, the sa%e o"d traditio&a" p"a&s ,ith
,hich the i&sura&ce i&dustry started8 There is a very "itt"e chae i& the products
offered8 Co&su%ers today see9 product that offer f"e4ib"e optio&s= products ,ith
be&efits u&bu&d"ed= products custo%i Dis.'i,.ion-curre&t distributio& cha&&e"s are &ot ab"e to serve the rura" areas of
the cou&try= so i&sures &eed to e4p"ore a"ter&ative cha&&e"s of distributio& for
both urba& a&d rura" area8
?> C,s.o(%' s%'7i!%- The prese&t co%%u&icatio& a&d pro%otio&s about various
i&sura&ce products i& )&dia are o&"y i&for%ative8 o ,hat &eeds to be do&e is to
,i& the hearts of the custo%ers by providi the% the e4tra ,hat the custo%ers
,a&ts ,ithout as9i for i8e8 hi#h "eve" of custo%er service8 T',s. #nd
!onid%n!%-peop"e te&d to have %ore faith i& #over&%e&t
:> ector dea"i ,ith i&sura&ce e8#8 L8)8C= 'eop"e fee" %ore secure a&d co&fide&t i&
i&vesti i& p"a&s of L8)8C8 rather tha& i& private p"ayers8
Apart fro% the above cha""ees the %ajor cha""ee faced by i&sura&ce sector is
to i&crease the pe&etratio& rate of i&sura&ce ,hich is very "o, i& )&dia it is o&"y
2G of I' a&d sti"" G of the popu"atio& is &ot i&sured a&d those ,ho are
i&sured are &ot fu""y i&sured8
The "i%ited covera#e i& the rura" areas a&d the vu"&erab"e sectio&s of the society
co&ti&ues to be a source of co&cer& for the re#u"atory body8 Dhi"e the private i&surers are
adheri to the tar#ets stipu"ated i& the e#u"atio&s= there is &eed for a #reater
i&vo"ve%e&t of the %a&a#e%e&t at various "eve"s so that the product that is fi&a""y
de"ivered serves the &eeds of those tar#eted #roup8 De have strea%"i&ed the defi&itio& of
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Rrura" areasR to bri it o& par ,ith the c"assificatio& fo""o,ed by the Ce&sus epart%e&t
to avoid co&fusio& o& ,hat co&stitutes a Rrura" areaR8 )& the case of covera#e of the
socia""y disadva&ta#ed sectio&s= the )A has co%e out ,ith a draft %icro i&sura&ce
re#u"atio& to faci"itate easy covera#e a&d provide ua"ity service to the i&sured8
As ,e "oo9 bac9 at these four years= o&e ca& reaso&ab"y be proud of the strides
%ade by the i&dustry8 De are ,it&essi a de%o#raphic chae i& the cou&try a&d the
youer #e&eratio& ,hich is e4posed to the outside ,or"d de%a&ds products a&d services
,hich are at par ,ith ,hat is avai"ab"e i& the adva&ced cou&tries8 This is the bi##est
cha""ee8 ) have &o doubt that the )&dia& i&sura&ce co%pa&ies ,ou"d face this cha""ee
a&d provide services o& par ,ith services provided i& the adva&ced cou&tries8 The
re#u"atory re#i%e ,ou"d be happy to faci"itate this process ,he&ever its i&terve&tio& is
reuired8
5E6 Ao,. LIFE INSURANCE COMPANY
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L)fe )&sura&ce Co%pa&y Li%ited is a part of CB L)fe )&sura&ceCapita" Ltd8 of
the CB L)fe )&sura&ce A&i" hirubhai A%ba&i Iroup8 CB L)fe )&sura&ceCapita"
is o&e of )&dia;s "eadi private sector fi&a&cia" services co%pa&ies= a&d ra&9s a%o the
top $ private sector fi&a&cia" services a&d ba&9i co%pa&ies= i& ter%s of &et ,orth8
CB L)fe )&sura&ceCapita" has i&terests i& asset %a&a#e%e&t a&d %utua" fu&ds= stoc9
bro9i= "ife a&d #e&era" i&sura&ce= proprietary i&vest%e&ts= private euity a&d otheractivities i&
Fi&a&cia" services8 CB L)fe )&sura&ceCapita" Li%ited CL is a No&-Ba&9i
Fi&a&cia" Co%pa&y NBFC re#istered ,ith the eserve Ba&9 of )&dia u&der sectio& (*-
)A of the eserve Ba&9 of )&dia Act= 13$(8
DSCB LIfe Insurance Capital sees immense potential in the
rapidly growing nancial services sector in India and aims to become a
dominant player in this industry and oer fully integrated nancial
services. LIfe Insurance is another step forward for DSCB LIfe
InsuranceCapital Limited to oer need based Life Insurance solutions
to individuals and Corporates.
The co%pa&y after ta9i over the Che&&ai based i&surer= A!' a&%ar #roup=
started roari to #o out i&to the %ar9et8
As a first step= a& app"icatio& ,as fi"ed for the chai the &a%e of the co%pa&y
to L)fe )&sura&ce8 )ts &e, CEO= ' Na&da#opa"= ,ho ,as poached fro% Bir"a u& Life
)&sura&ce Co%pa&y Li%ited= had bee& hired a&d used to spe&d %uch of his ti%e shutt"i
bet,ee& !u%bai a&d Che&&ai to reach out to the e%p"oyees ,ith the &e, o,&er;s visio&
a&d #oa"8
The co%pa&y;s &e, CEO had %ade it c"ear to the e%p"oyees that the pace of the
top"i&e #ro,th shou"d be acce"erated8 eachi this a%bitious tar#et ,ou"d reuire a
%u"ti-proed approach8 The t,o %ai& pros ,ere desi#&i &e, products a&d beefi
up the distributio&8
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Dith a prese&ce i& si4 states= CB L)fe )&sura&ceLife ,a&ts a pa& )&dia prese&ce a&d
a"so %u"tip"e distributio& part&ers8 This %ea&s= the co%pa&y ,i"" ope& %ore bra&ches
a&d a"so active"y covet corporate a#e&ts= ba&9s a&d others8 )&cide&ta""y= it ,as
Na&da#opa" ,ho first i%p"e%e&ted the successfu" ba& assura&ce %ode" i& )&dia= ,hi"e he
,as se&ior vice preside&t= a"ter&ate cha&&e"s ,ith Bir"a u& Life8 Dhi"e there ,ere &o
e%p"oyees ,ho ,ere pur#ed= so%e operatio&s "i9e i&vest%e&ts= actuaria" a&d fi&a&ce ,i""be shifted to !u%bai i& the future8
Mission-De ai% to be the top &e, "ife i&sura&ce co%pa&y i& the %ar9et8 This does &ot
just %ea& bei the "ar#est or the %ost productive co%pa&y i& the %ar9et= rather it is a
co%bi&atio& of severa" this "i9e- S Custo%er service of the hi#hest order S Ma"ue for
%o&ey for custo%ers S 'rofessio&a"is% i& carryi out busi&ess S )&&ovative products to
cater to differe&t &eeds of differe&t custo%ers ?se of tech&o"o#y to i%prove service
sta&dards )&creasi %ar9et share8
#+,%s-
S EC?)T: 'rovidi "o-ter% fi&a&cia" security to our po"icyho"ders ,i"" be our
co&sta&t e&deavor8 De ,i"" be doi this by offeri "ife i&sura&ce a&d pe&sio& products8
S T?T: De appreciate the trust p"aced by our po"icyho"ders i& us8 .e&ce= ,e ,i"" ai%
to %a&a#e their i&vest%e&ts very carefu""y a&d "ive up to this trust8
S )NNOMAT)ON: eco#&i
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SWOT ANALYSIS FOR DSCB LIFE INSURANCEINFOCOMM LTD>
STRENGTHS
)NFAT?CT?E .EAM BAC+ EN
Fin#n!i#+ %0&%'.is%: As a subsidiary co%pa&y of CB L)fe )&sura&ceCapita"=
L)fe )&sura&ce has the fi&a&cia" e4pertise reuired to %a&a#e your "o-ter%
i&vest%e&ts safe"y a&d efficie&t"y8
Inno7#.i7% id%#s: The Co%pa&y has a vast poo" of ta"e&t ,ho have the capabi"ity
a&d the abi"ity to ,or9 upo& &e, a&d i&&ovative i&vest%e&t p"a&s for the
custo%ers8
L#'$%' &oo+ o '%so,'!%s- The co%pa&y has a& i%%e&se capita" structure= ,hich
,as proved ,he& the co%pa&y acuired the south )&dia based A!'-AN!A
)&sura&ce co%pa&y= thus c"ear"y outbiddi the other suitors "i9e AM)MA= )C)C)
'?ENT)AL etc
R#n$% o so+,.ions: De have a rae of i&dividua" p"a&s ,hich ca& be by
ready%ade or tai"or %ade accordi to the choice of the custo%er thus he"pieach a&d every custo%er to #et e4act"y ,hat he ,a&ts8
B%s. M,.,#+ ,nd: The co%pa&y has bee& a,arded the best %utua" fu&d a,ard
for the year 20 !arch8
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'EENCE ACO T.E CO?NT
The co%pa&y a"ready has its %utua" fu&d busi&ess across the cou&try a&d is
co%i up ,ith its &e, busi&ess ,hich is a bro9i house= &a%ed CB L)fe
)&sura&ce !o&ey across )&dia8
The co%pa&y has e&tered i&to a joi&t-ve&ture ,ith its subsidiary co%pa&y CB
L)fe )&sura&ce Co%%u&icatio&s to use it as a subsidiary cha&&e" ,ith its data
base for tappi &e, custo%ers8
The co%pa&y is o& a fast a&d vast e4pa&di phase= it is co%i up ,ith &e,
offices across the cou&try to tap &e, a&d pote&tia" custo%ers8
E!'.A) ON C?TO!E AT)FACT)ON AN E!'LOEE
The co%pa&y;s ai% is to provide custo%er satisfactio& at the first8
Offers pro%otio& to its Advisors to a"es !a&a#ers by co%p"eti a tar#et i& a
sti%u"ated period of ti%e8
The per9s a&d sa"aries #ive& to its e%p"oyees are far better tha& the other
co%pa&ies8
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WEANESS
First ti%e e&teri i&to i&sura&ce sector8
Bei a &e, e&tra&t has &o prior e4perie&ce8
)&sura&ce is &ot e"ia&ce;s core co%pete&cies
'e&etratio& cost for i&dividua" custo%er is hi#h8
ura" covera#e is &ot avai"ab"e8
OPPORTUNITIES
To e&ter the Cha&&e" of Ba&-assura&ce8
Iro,i &eed for )&sura&ce for everybody8
'e&etratio& of i&dustria"i
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THREATS
Leadi p"ayers are very stro i& this i&dustry "i9e )C)C) 'rude&tia" a&d Bajaj 8
A""ia&< a&d have a hu#e %ar9et prese&ce8
'aybac9 period is "o for L)fe )&sura&ce8
L)C has a hu#e adva&ta#e of trust i& the %i&ds of peop"e8
Co%petitors co%i out ,ith &e, a&d attractive products8
Co%pa&ies "i9e Bajaj A""ia&< have a hu#e force of Advisors to tap busi&ess8
Co%petitors "i9e Bajaj A""ia&< provide their Advisors ,ith hi#her co%%issio& as
co%pared to L)fe )&sura&ce8
The riva" co%pa&ies "i9e !et-"ife have a better tie-up ,ith the ba&9s for the
se""i of "ife i&sura&ce po"icies8
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MAJOR COMPETITORS
HDFC STANDARD LIFE INSURANCE
ABOUT HDFC STANDARD LIFE
THE PARTNERSHIP
.FC a&d ta&dard Life first ca%e to#ether for a possib"e joi&t ve&ture= to e&ter the Life
)&sura&ce %ar9et= i& @a&uary 133*8 )t ,as c"ear fro% the outset that both co%pa&ies
shared si%i"ar va"ues a&d be"iefs a&d a stro re"atio&ship uic9"y for%ed8 )& October
133* the co%pa&ies si#&ed a $ year joi&t ve&ture a#ree%e&t8Arou&d this ti%e ta&dard
Life purchased a *G sta9e i& .FC= further strethe&i the re"atio&ship8
The &e4t three years ,ere fi""ed ,ith u&certai&ty= due to chaes i& #over&%e&t a&d
ooi de"ays i& #etti the )A )&sura&ce e#u"atory a&d eve"op%e&t authority
Act passed i& par"ia%e&t8 espite this both co%pa&ies re%ai&ed fir%"y co%%itted to the
ve&ture8)& October 133= the joi&t ve&ture a#ree%e&t ,as re&e,ed a&d additio&a"
resource %ade avai"ab"e8 Arou&d this ti%e ta&dard Life purchased 2G of )&frastructure
eve"op%e&t Fi&a&ce Co%pa&y Ltd8 )FC8 ta&dard Life a"so started to use the
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services of the .FC Treasury depart%e&t to advise the% upo& their i&vest%e&ts i&
)&dia8
To,ards the e&d of 1333= the ope&i of the %ar9et "oo9ed very pro%isi a&d both
co%pa&ies a#reed the ti%e ,as ri#ht to %ove the operatio& to the &e4t "eve"8 Therefore= i&
@a&uary 2 a& e4pert tea% fro% the ?+ joi&ed a ha&d pic9ed tea% fro% .FC to for%
the core project tea%= based i& !u%bai8 Arou&d this ti%e ta&dard Life purchased a
further *G sta9e i& .FC a&d a *G sta9e i& .FC Ba&98
)& a further deve"op%e&t ta&dard Life a#reed to participate i& the Asset !a&a#e%e&t
Co%pa&y pro%oted by .FC to e&ter the %utua" fu&d %ar9et8 The !utua" Fu&d ,as
"au&ched o& 2th @u"y 28
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INCORPORATION OF HDFC STANDARD LIFE
INSURANCE COMPANY LIMITED-
The co%pa&y ,as i&corporated o& 1(th Au#ust 2 u&der the &a%e of
.FC ta&dard Life )&sura&ce Co%pa&y Li%ited8 Our a%bitio& fro% as far bac9 as
October 133* ,as to be the first private co%pa&y to re-e&ter the "ife i&sura&ce %ar9et i&
)&dia8 O& the 2$rd of October 2= this a%bitio& ,as
rea"ised ,he& .FC ta&dard Life ,as the o&"y "ife co%pa&y to be #ra&ted a certificate
of re#istratio&8
.FC are the %ai& shareho"ders i& .FC ta&dard Life= ,ith 18(G= ,hi"e ta&dard
Life o,&s 18/G8 Iive& ta&dard Lifes e4isti i&vest%e&t i& the .FC Iroup= this is
the %a4i%u% i&vest%e&t a""o,ed u&der curre&t re#u"atio&s8 .FC a&d ta&dard Life
have a "o a&d c"ose re"atio&ship bui"t upo& shared va"ues a&d trust8 The a%bitio& of
.FC ta&dard Life is to %irror the success of the pare&t co%pa&ies a&d be the yardstic9
by ,hich a"" other i&sura&ce co%pa&ys i& )&dia are %easured8
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OUR MISSION
De ai% to be the top &e, "ife i&sura&ce co%pa&y i& the %ar9et8 This does &ot just %ea&
bei the "ar#est or the %ost productive co%pa&y i& the %ar9et> rather it is a co%bi&atio&
of severa" this "i9e-
Custo%er service of the hi#hest order
Ma"ue for %o&ey for custo%ers
'rofessio&a"is% i& carryi out busi&ess
)&&ovative products to cater to differe&t &eeds of differe&t custo%ers
?se of tech&o"o#y to i%prove service sta&dards
)&creasi %ar9et share
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OUR ALUES
EC?)T: 'rovidi "o ter% fi&a&cia" security to our po"icy ho"ders ,i"" be
our co&sta&t e&deavour8 De ,i"" be do this by offeri "ife i&sura&ce a&d pe&sio&
products8
T?T: De appreciate the trust p"aced by our po"icy ho"ders i& us8 .e&ce= ,e
,i"" ai% to %a&a#e their i&vest%e&ts very carefu""y a&d "ive up to this trust8
)NNOMAT)ON: eco#&i
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ABOUT ICICI
)C)C) 'rude&tia" Life )&sura&ce Co%pa&y is a joi&t ve&ture bet,ee& )C)C) Ba&9= a
pre%ier fi&a&cia" po,erhouse a&d 'rude&tia" p"c= a "eadi i&ter&atio&a" fi&a&cia"
services #roup headuartered i& the ?&ited +ido%8 )C)C) 'rude&tia" ,as a%ost the
first private sector i&sura&ce co%pa&ies to be#i& operatio&s i& ece%ber 2 after
receivi approva" fro% )&sura&ce e#u"atory eve"op%e&t Authority )A8
)C)C) 'rude&tia"s euity base sta&ds at s8 382* bi""io& ,ith )C)C) Ba&9 a&d 'rude&tia"
p"c ho"di 0(G a&d 2/G sta9e respective"y8 )& the fi&a&cia" year e&ded !arch $1= 2*=
the co%pa&y #ar&ered s 1*( crore of &e, busi&ess pre%iu% for a tota" su% assured of
s 1$=0 crore a&d ,rote &ear"y /1*= po"icies8 The co%pa&y has a &et,or9 of about
*/= advisors> as ,e"" as 0 ba&cassura&ce a&d 1* corporate a#e&t tie-ups8 For the past
four years= )C)C) 'rude&tia" has retai&ed its positio& as the No8 1 private "ife i&surer i&
the cou&try= ,ith a ,ide rae of f"e4ib"e products that %eet the &eeds of the )&dia&
custo%er at every step i& "ife.
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RESEARCH METHODOLOGY 3R>M>4RESEARCH METHODOLOGY 3R>M>4
8!8 is a ,ay to syste%atica""y so"ve the research prob"e%8 )t
i&c"udes the various steps that are #e&era""y adopted by the researcher i& studyi the
research prob"e% a"o ,ith the "o#ic behi&d the%8 The steps are as fo""o,s: -
STEPS INOLED IN THE RESEARCH METHODOLOGY
$ro%lem definition
Research o%&ectives
'ources of data
Data collection Techni(ues
'ample plannin#) sample
'i*e and type
Data analysis
And interpretation
+onclusion and
Recommendations
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PROBLEM DEFINITIONS- ;
)&dicatio& of a specific busi&ess decisio& area that ,i"" be c"arified by
a&s,eri so%e research uestio&s8
RESEARCH OBJECTIES- ;
Carefu" atte&tio& to prob"e% defi&itio& a""o,s a researcher to set the proper
research objectives= ,hich have bee& %e&tio&ed i& the objectives of the project chapter8
.ere the research objective ,as to study the co&su%er behavior of peop"e ,hi"e #oi for
"ife i&sura&ce po"icies8
DATA SOURCE- ;
The data ta9e& or co""ected fro% differe&t sources to carry out the research is
ca""ed data source8 There are t,o types of data sources>
PRIMARY DATA- ;
ata #athered asse%b"ed specifica""y for the research project at ha&d is ca""edpri%ary data8 )t is the %ost curre&t data a&d this happe&s to be ori#i&a" i& character8 This
,as co""ected by fi""i up 5uestio&aires fro% the prospective c"ie&ts8
'ri%ary data for the project ,as co""ected fro% the custo%ers of differe&t
type of out"ets8
SECONDARY DATA- ;
ata that have bee& previous"y co""ected for so%e project other tha& the o&e at
ha&d8 Debsite= %a&ua"s a&d "eaf"ets of the co%pa&y L)fe )&sura&ce are the seco&dary
data for research8
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TYPES OF RESEARCHTYPES OF RESEARCH--
escriptive research
5ua&titative research
DESCRIPTIE RESEARCH;
)t i&c"udes survey a&d fact fi&di e&uiries of differe&t 9i&ds8 The %ajor purpose
of this is descriptio& of state of affairs= as it e4ists at prese&t8 .ere the source of the
descriptive research has bee& )A @our&a"s= Busi&ess !a#a
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This type of sa%p"i is used ,he& the tota" #eo#raphica" area of i&terest happe&s
to be bi# o&e8 ?&der area sa%p"i ,e first divide the tota" area i&to a &u%ber of s%a""er
&o&-over"appi areas= the& &o8 Of these areas are ra&do%"y se"ected8
This %ethod %a9es the fie"d i&tervie,i %ore efficie&t8 i&ce i&tervie,er ca& do
%a&y i&tervie,s at each "ocatio&8
SAMPLE PLANNING- ; Type of sa%p"i is 'robabi"istic sa%p"i u&der ,hich
area sa%p"i %ethod is used8 .ere ) have co""ected the data fro% the peop"e i& a certai&
area ,here ) have %ar9eted the products of L)fe )&sura&ce8
SAMPLING UNIT-- i&ce the project co&sisted of co""ectio& of data fro% the %ass
a&d the prospective custo%ers= ,e too9 the respo&se of the both of the% as
a sa%p"e8
SAMPLING SIE- ; The project ,hich co&sisted of co""ectio& of data as ,e"" as
direct se""i of the "ife i&sura&ce po"icies= ) have ta9e& a sa%p"e of (
custo%ers to provide for the database to u&dersta&d the popu"atio& better8
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.ere= the %ost preferred %ea&s of fi&a&cia" i&vest%e&t by a c"ie&t ,as Ba&9
Fi4ed eposits8 This ,as because the i&terest rates paid to a custo%er o& a Fi4ed eposit
has bee& i&creased by B)= a ordi&ary custo%er #ets a& i&terest of 380*G p8a8 ,hi"e a
se&ior citi
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The respo&de&ts ,he& as9ed about the i%porta&t features of a& i&sura&ce
i&vest%e&t had a& opi&io& ,hich the co%pa&y %ust ta9e &ote of8 !a&y peop"e ,a&ted
"iuidity i& their i&vest%e&ts8 A respo&de&t ,he& as9ed to fi"e i& the uestio&&aire
su##ested that the co%pa&y %ust "au&ch so%e p"a&s ,hich have "iuidity= si&ce %a&y
peop"e stay a,ay fro% i&sura&ce as it does &ot provide ,ith easy e&try a&d e4it ,he&
ever reuired8
A"so there ,ere 12G peop"e ,ho ,a&ted their i&vest%e&ts to be safe= this ,as
because %a&y peop"e co%p"ai&ed that they had ta9e& ?L)' p"a&s i& the past= o& the
,ords of the advisor= that the c"ie&ts ,ou"d #et 2-2*G retur&s after three years= but
,he& the ti%e passed o&= despite of #etti #ood retur&s= peop"e "ost their %o&ey i&
these p"a&s because of hi#h pre%iu% a""ocatio& char#es8
A&other 1G peop"e ,ho fi""ed the uestio&&aire= ,a&ted their i&vest%e&ts to
#ro,= si&ce these days eve& the ba&9s are #ivi retur&s up-to 180*G o& fi4ed deposits=
but ,hat the i&sura&ce p"a&s #ive is a %ere retur& of /-1G= accordi to )A &or%s8
A"so there ,ere 3-1G peop"e= ,ho ,a&ted a ris9 cover for the%se"ves a&d their
fa%i"ies8 .o,ever a thi ,hich i&terested %e i& this survey ,as that= a"thou#h the peop"e ,hoa&s,ered these uestio&s ,a&ted a ris9-cover for the%se"ves a&d their fa%i"ies yet %a&y of
these peop"e ,ere &ot i&sured8 O& as9i as to the reaso& for &ot ta9i up a& i&sura&ce po"icy=
their a&s,er ,as strae that they ,ou"d prefer ba&9 deposits rather tha& i&sura&ce i&vest%e&ts
as it provided the% ,ith #ood retur&s a"o ,ith easy "iuidity8 !y co&c"usio& fro% havi a
,ord fro% such peop"e ,as that these peop"e ,ere a%o those ,ho ,a&ted the i&sura&ce
co%pa&y to #ive the% hi#her a&d sure retur&s a"o ,ith easy "iuidity8
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5( Dho% do you re"y o& before buyi a& i&sura&ce po"icyU '"ease ra&9
a e"f throu#h co%pariso& of various po"icies
b e"f throu#h co%pariso& of various co%pa&ies
c A#e&td 'are&ts E"ders
e 'ast E4perie&ce ,ith the co%pa&y
f Frie&ds
# pouse
h Co%pa&y advertise%e&t
No.%- .ere hi#hest 1st ra&9 is #ive& ,ei#hts a&d the "o,est th is
#ive& 1 ,ei#ht a&d thus "ater o& the a##re#ate ,ei#hts are ca"cu"ated
for each factor a&d the& the perce&ta#es are ca"cu"ated fro% the tota"
,ei#hts8
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This uestio& is very i%porta&t as it ref"ected the behavior e4hibited by the
co&su%er ,hi"e re"yi o& ,he& buyi the i&sura&ce po"icies8
The a&a"ysis i& this uestio& ,as c"ear that 1G of the co&su%ers out of a tota" of
(= ,hi"e buyi the i&sura&ce po"ices %ai&"y trusted the%se"ves by co%pari thevarious po"ices avai"ab"e8 This tech&iue is the best= si&ce by co%pari the various
po"icies avai"ab"e= o&e ca& chop out the best p"a& or the po"icy ,hich suits his or her
reuire%e&t a&d provides ,ith the %a4i%u% retur& a"o ,ith a #ood su% assured8
.o,ever= there ,ere 1/G peop"e ,ho purchased the i&sura&ce po"icies by
co%pari the p"a&s a&d po"icies of various co%pa&ies8 This tech&iue ho"ds #ood ,he&
the co&su%er has 9&o,"ed#e of various co%pa&ies a&d he #oes for the p"a&s of those
co%pa&ies ,hich have a #ood %ar9et reputatio& a&d have those products ,hich provide
the hi#hest a&d the best retur& for custo%er;s %o&ey8
There ,ere a&other 1*G of peop"e ,ho i&vo"ved their pare&ts i& decidi about
,hich p"a& of ,hich co%pa&y to purchase8 A& i%porta&t a&d i&teresti fi&di ,hich
arose ,hi"e a&a"y
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5* )f you re"y o& a& i&sura&ce a#e&t p"ease ra&9 the fo""o,i attributes you "oo9 for i&
hi% herU
a 'roduct 9&o,"ed#e
b Co%petitive 9&o,"ed#e
c Attitude A#reeabi"ityd Abi"ity to ca"cu"ate %y i&sura&ce &eeds
e Abi"ity to co%%u&icate ,e""
f espo&sive&ess
# Fa%i"iarity
h Co&fide&ce
No.%- .ere hi#hest 1st ra&9 is #ive& ,ei#hts a&d the "o,est th is
#ive& 1 ,ei#ht a&d thus "ater o& the a##re#ate ,ei#hts are ca"cu"ated
for each factor a&d the& the perce&ta#es are ca"cu"ated fro% the tota"
,ei#hts8
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These are the days of i%%e&se co%petitio& a&d the days ,he& a 12 thpass perso&
,as %ade a& advisor i& a& i&sura&ce co%pa&y have #o&e8 These days= private
co%pa&ies "oo9 for peop"e ,ho are co&fide&t= have a p"easi perso&a"ity= have a
co&vi&ci po,er are %ore "i9e"y desired a&d such peop"e are ta9e& for the
desi#&atio& of a& advisor= these days8
A&other i%porta&t fact ,hich arose out of the survey ,as that the custo%ers a"so
,a&ted advisors ,ho have product 9&o,"ed#e a&d ca& co%%u&icate ,e""= to provide
the c"ie&t ,ith the i&vest%e&t ideas8
)& the survey= 1G peop"e ,ere those ,ho ,a&ted advisors ,ith detai"ed a&d
co%p"ete product 9&o,"ed#e to visit the% a&d share ideas ,ith the% for their
i&vest%e&ts8 This ,as because the custo%er today is &ot happy ,ith a #ist of ideas=
but he ,a&ts the co%p"ete 9&o,"ed#e of the product ,hich he is #oi to buy8
A&other i%porta&t ua"ity ,hich the custo%er is "oo9i for i& the advisor is the
abi"ity to co%%u&icate ,e""8 This characteristic is i%porta&t si&ce the days ,he& o"d
a&d peop"e poor at verba" "aua#e use to serve L)C have #o&e a&d co%pa&ies are
"oo9i for %a&-po,er ,ith #ood co%%u&icatio& s9i""s to tap the custo%er
i%%ediate"y8 A"so peop"e ,ho have a #ood co%%u&icatio& s9i"" ca& e4p"ai& the
product better to the custo%er thus avoidi for a&y ,aste of ti%e8
A&other ua"ity ,hich a& i&sura&ce a#e&t %ust possess is that he shou"d be ,e""
versed i& ca"cu"ati the i&sura&ce &eeds of a perso& i8e8 he shou"d be ab"e to esti%ate
,eather a perso& reuires hi#h su%-assured or hi#h retur&s or %ay be safe retur&s
fro% his i&vest%e&t8 A#e&ts ,ho are ab"e to do this ca& fetch #ood busi&ess for the
co%pa&y= si&ce the custo%er accepts hi% as a #ood a#e&t8
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5/ o you thi&9 you ,i"" buy a& i&sura&ce po"icy after scruti&i
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4 Ho* do )o, ."in )o, *i++ +i% .o ) &'%(i,(s 3P+%#s% '#n4
a eposit Cheues i& i&sura&ce co%pa&ies office
b eposit Cheues i& co""ectio& bo4es
c A#e&t co%es to co""ect cheued O&"i&e pay%e&t throu#h credit card
e Auto%atic debit throu#h ba&9 accou&t
No.%- .ere hi#hest 1st ra&9 is #ive& * ,ei#hts a&d the "o,est *th is
#ive& 1 ,ei#ht a&d thus "ater o& the a##re#ate ,ei#hts are ca"cu"ated
for each factor a&d the& the perce&ta#es are ca"cu"ated fro% the tota"
,ei#hts8
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Io&e are the days ,he& a#e&ts used to co%e to co""ect cheues fro% the custo%er
a#ai&st their po"icies8 These days= the a#e&ts of the private co%pa&ies do &ot #o door to
door to the custo%er co""ecti cheues fro% the% but i&stead the custo%er hi%se"f have
to drop i& the cheue or #ive sta&di order to the ba&9s for the auto%atic debit of the
subseue&t pre%iu%s fro% their accou&ts8 This is because= the a#e&ts #et their
co%%issio&s o& the subseue&t pre%iu%s i%%ediate"y a&d it is e4pected fro% thecusto%er that i& order to co&ti&ue e&joyi the ris9-cover= he sha"" pay the subseue&t
pre%iu%s at his cost8
.o,ever= si&ce the traditio& of L)C= peop"e sti"" e4pect the a#e&t to co%e a&d co""ect
their cheues8 )& the survey= ) fou&d out that 20G of the peop"e ,a&ted the a#e&t to co%e
a&d co""ect the cheues= ,hi"e 2G of the peop"e preferred to ,a"9 i& the i&sura&ce
co%pa&ies office a&d drop i& the cheue= a"so 13G peop"e preferred #ivi sta&di
i&structio&s to the ba&9 to auto%atica""y debit the pre%iu% a%ou&t fro% their ba&9
accou&ts8
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5 Dhat is your preferred pre%iu% pay%e&t freue&cyU
a !o&th"y
b 5uarter"y
c .a"f-year"yd ear"y
The preferred freue&cy of pre%iu% pay%e&t depe&ds upo& the occupatio& a&d ear&i
of a& i&dividua"= peop"e ,ho are sa"aried prefer payi pre%iu%s %o&th"y or uarter"y or
%ay be eve& ha"f-year"y8 But those ,ho are se"f-e%p"oyed prefer payi pre%iu% year"y8
Dhe& as9ed a respo&de&t as to the reaso& ,hy he ,ou"d "i9e his pre%iu% to be paid
year"y as he bei a busi&ess %a&= his a&s,er ,as that payi pre%iu% year"y saves ti%e
a&d he ,a&ted to avoid the hass"es of payi pre%iu% %o&th"y or uarter"y by ru&&i to
i&sura&ce co%pa&ies office8
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A&other respo&de&t ,he& as9ed about his &eeds of payi pre%iu% %o&th"y as he bei
a& ei&eer i& ONIC ,as that he preferred payi his dues as a&d ,he& they arise rather
tha& accu%u"ati the% a&d payi the% at o&e #o ,hich ,ou"d si#&ifica&t"y affect his
poc9et8
Thus it ,as c"ear that pre%iu% payi freue&cy of a perso& depe&ded upo& his i&co%ea&d his type of professio&8
)& the survey= (2G of the peop"e i8e8 10 out of ( peop"e ,ho ,ere %ost"y se"f-e%p"oyed
,a&ted or rather preferred payi pre%iu%s year"y8 Dhi"e there ,ere 1$ of the% ,ho
,a&ted to pay pre%iu%s ha"f-year"y8 uch peop"e %ost"y co&sisted of sa"aried c"ass8
A&other corre"ati thi ,hich arose out of this uestio& ,as that peop"e ,ho paid
pre%iu%s ha"f-year"y or uarter"y or %ay be eve& %o&th"y= preferred payi pre%iu%s
by #ivi sta&di order to the ba&9s for auto%atic debit fro% their ba&9 accou&ts or
char#i it a#ai&st their credit card bi""s as these peop"e ,a&ted to avoid the hass"es of
ru&&i to the offices of those i&sura&ce co%pa&ies for pay%e&t of pre%iu%s8
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84 W"#. is )o,' &'%%''%d .i(% &%'iod o ins,'#n!%
a 1 year
b V* yearsc * to 1 years
d 1 to 1* years
e W1* years
Custo%ers preferred period of i&sura&ce depe&ds upo& his &eed of %o&ey i& the
future8 )&sura&ce po"icies are ta9e& by peop"e for supporti their chi"d;s educatio& or
%ay his %arria#e or a&y other p"a&&i for a "o ter%8 i&ce i&sura&ce po"ices does &ot
provide for "iuidity= peop"e #o for "ife i&sura&ce po"icies to save %o&ey for future8 A"so
it ,as see& i& the survey that &o&e of the sa%p"e ,ho fi""ed i& the uestio&&aire preferred
the period of i&sura&ce #reater tha& 1*yrs8 O& as9i a respo&de&t as to the reaso& for &ot
choosi the ter% #reater tha& 1*years= the a&s,er ,as that the ti%e spa& is too "o a&d
it ,as better to i&vest i& rea" estate rather i&sura&ce8
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The a&a"ysis out of the uestio&&aire ,as that /2G i8e82* peop"e out of (
preferred ti%e period for i&sura&ce to be * to 1 yrs8 This ,as due to the ti%e spa& bei
&o%i&a"8
A"so a&other respo&de&t ,ho ,as i& a te"eco% co%pa&y a&s,ered that his reaso&
for &ot ta9i the i&sura&ce po"icy for above 1*yrs ,as that he be"ieved that i& the yearsto co%e i&f"atio& cou"d &ot be predicted a&d ,hich if hi#h ,ou"d reduce his ear&is i&
the i&sura&ce po"icy8
There ,ere a&other 2$G peop"e ,ho be"ieved that they ,ou"d prefer ta9i the
i&sura&ce po"icy i& the ti%e spa& of 1 to 1* yrs8
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RECOMMEND
ATIONS TO THE COMPANY
The co%pa&y shou"d i&crease its e4pe&diture o& advertisi= si&ce the co&su%ers
i& the %ar9et are &ot ,e"" versed a&d fa%i"iar ,ith re"ia&ce;s products a&d its
e&try i&to the "ife i&sura&ce i&dustry8
The co%pa&y ca& co%e out ,ith tie-ups ,ith its subsidiary co%pa&y= CB L)fe
)&sura&ce co%%u&icatio&s for the "au&ch of so%e ?L)' p"a&s i& ,hich eve& a
s%a"" i&vestor ca& pay out the %i&i%u% pre%iu% o& %o&th"y basis throu#h his
CB L)fe )&sura&ce co%%u&icatio& bi""i for ta9i a ris9 cover a&d a&
i&sura&ce po"icy8
The co%pa&y %ust co%e out ,ith a& a##ressive strate#y to hire advisers "i9e its
riva" Bajaj A""ia&< has do&e i& ehradu& ?ttra&cha"8 Bajaj A""ia&< has a "ar#er
&o of advisors because it offers the% up to (G co%%issio& o& sa"e of its ?L)'
products8
The co%pa&y i& order to tap the outs9irts of the popu"atio& ca& e&coura#e the
s%a"" a&d %ediu% shop 9eepers ,ho are a"so "ocated i& the sa%e re#io& to use
posters etc of L)fe )&sura&ce i& their shops to %ar9et a&d se"" its products8
The a#e&cy deve"op%e&t ce"" ca& tar#et Iovt schoo"s= hospita"s= etc to hire
advisors for the sa"e of its products8
The a#e&cy deve"op%e&t ce"" ca& a"so co""ect data fro% the riva" co%pa&ies
throu#h fi""i of uestio&&aires for tappi the advisors of other co%pa&ies8
The co%pa&y %ust provide a custo%er feed bac9 for% to it;s custo%ers= ,hich
ca& be dispatched as soo& as the custo%er #ets the po"icy docu%e&ts by ,hich the
co%pa&y ca& 9&o, as to ,eather the custo%ers are satisfied ,ith the co%pa&iesproducts a&d ,eather they ,ou"d #o for a re-purchase or &ot8
The co%pa&y %ust &o, e&ter the #roup-i&sura&ce po"icy se#%e&t ,ere it ca&
tar#et the corporate se#%e&t a&d ca& raise so%e #ood busi&ess by #ivi the
cheapest dea"s a&d thus p"ayi o& vo"u%es8
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The co%pa&y %ust arrae se%i&ars o& ti%e to ti%e basis to provide it;s
e%p"oyees ,ith the 9&o,"ed#e about the "atest products8
)t %ust i%prove it;s ti%e ta9e& to dispatch the po"icy docu%e&ts to the custo%ers8
The co%pa&y %ust arrae for so%e pic9-up faci"ity for the subseue&t pre%iu%s
at the door steps of the custo%ers8
L)fe )&sura&ce %ust "au&ch products ,hich are specia""y desi#&ed for Fe%a"es8
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INTERESTING FINDINGS
The co&su%ers ,ho ,ere i&terested i& ta4 savi ,a&ted the cheapest dea"= "i9e
%i&i%u% pre%iu% a""ocatio& char#es a&d the other retai" i&vestors ,a&ted safety
as ,e"" as hi#h retur&s8
'eop"e i& ehradu& ,ere %ore i&terested i& i&vesti i& rea" estate rather tha&
i&sura&ce si&ce the retur&s i& this i&dustry ,ere uite hi#her tha& the )&sura&ce
i&dustry a&d peop"e treated )&sura&ce %ere"y as a ta4-savi a&d a ris9-cover
i&stru%e&t8
)&sura&ce acts as a po,erfu" too" for ta4 savi= ,hich is pri%ari"y the fu&ctio& of
charted accou&ta&ts= he&ce as i&vest%e&ts= %ost of the peop"e trust b"i&d"y upo&
charted accou&ta&ts8
Of a"" the distributio& cha&&e"s 9&o,& to the peop"e= %ost preferab"e is throu#h
ba&9s8 The basic reaso& behi&d that is the #uara&tee of a& i&ter%ediary8 Ie&era""y
popu"atio& trust upo& ba&9s as i&ter%ediary8 A&other stro poi&t of ba&9 is the
"oa&s provided by the%8 This %a9es peop"e %ore re"iab"e o& ba&9s8
The %ar9et share of L)C has i&creased fro% 01G i& !arch 2/ to 0*G ti"" Apri"
20= a&d the %ar9et share of the private p"ayers have dec"i&ed fro% 2G i&
!arch 2/ to 2*G i& Apri" 208
A&other i%porta&t fi&di ,hich ) ca%e across duri %y survey ,as that L)fe
)&sura&ce ,i"" be tar#eti the data base of its subsidiary co%pa&y CB L)fe
)&sura&ceCo%%u&icatio&s to tap &e, custo%ers8
!a&y co&su%ers ,ho ,ere fe%a"es de%a&ded a product ,hich ,as specia""y
desi#&ed for the%= ,hich L)fe )&sura&ce does &ot have= a&d their riva"s "i9e Bajaj
A""ia&
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CONCLUSION-
As far as CB L)fe )&sura&ceis co&cer&ed= L)C has a #e&eric &a%e i& the "ife
i&sura&ce i&dustry= a&d the private co%pa&ies %ust ,or9 %ore upo& their %ar9eti
strate#ies8
Accordi to a respo&de&t= ua"ity of service is of ut%ost i%porta&ce> he&ce the
co%pa&y shou"d project itse"f as bra&d i& the %ar9et8 That #ives the e&d user the
best ua"ity of service ,ith ha&dy operatio&s8
)f the co%pa&y provides better ua"ity of service to the e4isti users the& 2*G
other custo%ers %ay tur& to L)fe )&sura&ce8
)& a city "i9e ehradu&= %ost of the peop"e had a prefere&ce for i&vesti i& ea"
Estate= si&ce it provides for the hi#hest retur&s i& short ti%e spa&8
A&other i%porta&t fact ,hich ) ca%e across ,as that 'rivate co%pa&ies %ust hire
advisors ,ho have a #ood co%%a&d over verba" "aua#e a&d %ust have ua"ities
"i9e #ood co%%u&icatio& s9i""s= Co&fide&ce= 'roduct 9&o,"ed#e= Co%petitive
streths8
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REFERENCES
Boos-
!ar9eti !a&a#e%e&t by 'hi"ip +ot"er
'o"icies boo9"ets of L)fe )&sura&ce8
)&sura&ce Co%pa&y8
Ne,s papers
Busi&ess Dor"d
Busi&ess Today
)CFA) @our&a"s o& )&sura&ce
Ieeta&ja"i !eh",a"= 6The Face of the )&sura&ce )&dustry i& )&dia7= )N?ANCE
C.ON)CLE K@a&uary 2/8
)rda jour&a" KApri" 2/
)rda jour&a" K@u&e 2(
)rda jour&a" K!arch 20
)rda jour&a" KApri" 20
W%si.%-
,,,8#oo#"e8co8i&
,,,8dscb8co8i&
,,,8i&diai&fo"i&e8co%
,,,8re"ia&ce"ife8co8i&
,,,8irdai&dia8or#
,,,8bi%ao&"i&e8co%
http://www.google.co.in/http://www.indiainfoline.com/http://var/www/apps/conversion/tmp/scratch_2/www.reliancelife.co.inhttp://www.irdaindia.org/http://www.bimaonline.com/http://www.google.co.in/http://www.indiainfoline.com/http://var/www/apps/conversion/tmp/scratch_2/www.reliancelife.co.inhttp://www.irdaindia.org/http://www.bimaonline.com/8/10/2019 Delhi State Cooperative Bank
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A&&%ndi0 5uestio&&aire
'tudy of ,LI-.
I/'0RA/+. needs and ha%its amon# people
AGE- KKKKKKKKKKKKKK
GENDER- KKKKKKKKKKKKKK
EDUCATION- KKKKKKKKKKKKKKKK
OCCUPATION- KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK
51 Dhat is your prefere&ce for A&y Fi&a&cia" )&vest%e&tU '"ease a&9
A Ba&9 Fi4ed eposits B Co%pa&y Fi4ed eposits
C hare !utua" Fu&ds
E ea" Estate F Io"d i"ver
I )&sura&ce Cover- Life . )&sura&ce Ie&era"- No& Life
52 Dhat do you thi&9 of Life )&sura&ce pri%ari"yU
A As a ris9 cover B As a& i&vest%e&t
C As a %i4ture of both A&y otherXXXX
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5$ Dhat are the i%porta&t features of a& i&sura&ce i&vest%e&t for youU '"ease a&9
A afety B Liuidity
C Iro,th )&sura&ce ris9 for se"fE )&sura&ce ris9 for fa%i"y %e%bers F )&co%e ta4 savi
I is9 a#ai&st theft Ie&era" )&sura&ce . 're%iu% a%ou&t
) !o&ey bac9 @ ervice re&dered
+ Ease i& pay%e&t L espo&sive&ess
! O&"i&e detai"s
N Avai"abi"ity of a Co%pa&y eprese&tative i& &eed
5( Dho% do you re"y o& before buyi a& i&sura&ce po"icyU '"ease a&9
A e"f throu#h co%pariso& of various po"icies
B e"f throu#h co%pariso& of various co%pa&ies
C A#e&t
'are&ts E"ders
E 'ast e4perie&ce ,ith the co%pa&y
F Frie&ds
I pouse
. Co%pa&y advertise%e&t
)A&y other '"ease specifyXXXXX8
5* )f you re"y o& a& i&sura&ce a#e&t p"ease ra&9 the fo""o,i attributes you "oo9 for i&
hi% herU
A 'roduct 9&o,"ed#e B Co%petitive 9&o,"ed#e
C Attitude A#reeabi"ity Abi"ity to ca"cu"ate %y i&sura&ce &eeds
E Abi"ity to co%%u&icate ,e"" F espo&sive&ess
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I Fa%i"iarity . Co&fide&ce
) A&y other '"ease specifyX8
5/ o you thi&9 you ,i"" "i9e to buy a& i&sura&ce po"icy after scruti&i