insurance project

A Fundamental Analysis of Insurance Sector With Special Reference to Investment Pattern in Insurance in Amravati City

INTRODUCTION

India is about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in market.

The main objective of the researcher through this study is to understand the market scenario by studying different companies and their strategies, their objectives and management.

1.1 What is Insurance:

System whereby individual and companies concerned about potential hazards pay premium to an insurance company. Which reimburses(in whole or part)them in the event of loss. The insurer profits by investing the premiums it receives. Some common forms of insurance cover business risk, automobiles, homes ,boats workers compensation and health life insurance guarantees payment to the beneficiaries when the insurance person dies. In a board economic sense, insurance transfer risk from individual to a larger group which is better able to pay for losses.

1.2 The Importance of Insurance :

When you hear the word insurance, the words boring and mundane probably enter your mind. It is realized that insurance is not a fun topic to discuss or think about, yet it is important and serves to protect your financial future. It is comforting to think that nothing will ever happen to you and that you are invincible. But odds are that you are likely to get into a car accident or have some type of health problem at some point in your life, and when that happens, you will want to have insurance. So when you question whether you need insurance, the answer is a resounding yes, you definitely need insurance.

It may seem like insurance is a waste of resources- spending money on something that may or may not happen. Since you cannot predict the future, it is important to protect yourself and your possessions against damage and harm. Insurance is all about protection- it protects you against an unfortunate incident such as a car accident, a robbery, or an illness. The moment an unexpected ill-fated event happens, you will be so glad you have insurance. Medical bills from a minor accident can deplete your savings and force you into bankruptcy. Insurance is not a rip off, but rather an essential financial service.

Insurance can be tedious, stressful, and mind boggling-- trying to figure out what you need, what you don't need, and how much you need. Basically, there are four areas that most people are

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concerned about insuring: their life, their health, their possessions, and their finances. When deciding on what type of insurance you need, you must first ask yourself some basic questions. What is most valuable to you? Your health? Your car? Your material possessions? If you die what would the financial result be? Are you supporting any dependents such as a child or other family member? Most of you probably do not support dependents, so life insurance is not necessary. What type of health are you in? Would you be able to support yourself if you became sick or disabled? For most people, the answer is no, so you probably need to buy disability insurance. What would happen if you got sick? Can you afford to go to the doctor without health insurance? Health insurance is something you simply must have. Most employers offer health insurance to employees at reasonable rates, so definitely choose a health insurance plan that your employer offers.

1.3 Know more about life insurance

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC.

It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing.

1.4 What Is Life Insurance?

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

The contract is valid for payment of the insured amount during:

The date of maturity, or Specified dates at periodic intervals, or

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Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:

1. That of dying prematurely leaving a dependent family to fend for itself.2. That of living till old age without visible means of support.

1.5 Life Insurance Vs. Other Savings

Contract Of Insurance:A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.

Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even

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for a commercial loan.

Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has

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been extending insurance cover without any medical examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

1.6 Life insurance company in India

Insurance industry earlier comprised only two state insurers. Life Insurance i.e. Life Insurance Corporation of India (LIC) and General Insurance Corporation Of India (GIC). GIC had for subsidiary companies viz Oriental Insurance Company Limited, New India Insurance Company Limited, National Insurance Company Limited and United India Insurance company Limited. With effect from Dec’2000,these subsidiaries have been de-linked from parent company and made as an independent insurance companies. The Insurance Regulatory and Development Authority (IRDA) issued the first batch of licenses in 2001. At present following are the players in the Indian Market.

List of Life Insurers

Sr. No. Name of the Company

1 Bajaj Allianz Life Insurance Company Limited

2 Birla Sun Life Insurance Co. Ltd

3 HDFC Standard Life Insurance Co. Ltd

4 ICICI Prudential Life Insurance Co. Ltd .

5 ING Vysya Life Insurance Company Ltd.

6 Life Insurance Corporation of India

7 Max New York Life Insurance Co. Ltd

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8 Met Life India Insurance Company Ltd.

9Kotak Mahindra Old Mutual Life Insurance Limited

10 SBI Life Insurance Co. Ltd

11 Tata AIG Life Insurance Company Limited

12 Reliance Life Insurance Company Limited.

13 Aviva Life Insurance Co. India Pvt. Ltd.

14 Sahara India Life Insurance Co, Ltd.

15 Shriram Life Insurance Co, Ltd.

16 Bharti AXA Life Insurance Company Ltd.

17 Future Generali Life Insurance Company Ltd.

18 IDBI Fortis Life Insurance Company Ltd.

19Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd

20AEGON Religare Life Insurance Company Limited.

21 DLF Pramerica Life Insurance Co. Ltd.

22 Star Union Dai-ichi Life Insurance Comp. Ltd.

1.7 Non-Life Insurers:

Name of the Company

1 Royal Sundaram Alliance Insurance Company Limited

2 Reliance General Insurance Company Limited.

3 IFFCO Tokio General Insurance Co. Ltd

4 TATA AIG General Insurance Company Ltd.

5 Bajaj Allianz General Insurance Company Limited

6 ICICI Lombard General Insurance Company Limited.

7 Apollo DKV Insurance Company Limited

8 Future Generali India Insurance Company Limited

9 Universal Sompo General Insurance Company Ltd.

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10 Cholamandalam General Insurance Company Ltd.

11 Export Credit Guarantee Corporation Ltd.

12 HDFC-Chubb General Insurance Co. Ltd.

STRUCTURE OF THE INSURANCE SECTOR

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http://www.cholainsurance.com/


Some details about few companies:

2.1 Life Insurance Corporation:-

More than 170 million lives are part of our family called LIC of India. LIC of India is humbled by the magnitude of the responsibility it carry and realize that the lives that are associated with LIC of India are very valuable indeed. Although this journey started five decades ago, LIC of India is still conscious of the fact that, while insurance may be business for LIC, being part of millions of lives every day for the past 50 years has been a process called TURST.

Objective of LIC

Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the county and providing them adequate financial cover against death at a reasonable cost.

Maximize mobilization of people saving by making insurance-linked savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as community as a whole, keeping in view national priorities and obligation of attractive return.

Conduct Business with utmost economy and with full realization that the money belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing

social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering

the in the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation,

pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

INSURANCE PLAN

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As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. LIC’s Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

CHILDREN PLAN

Jeevan Anurag

CDA Endowment Vesting At 21

CDA Endowment Vesting At 18

Jeevan Kishore

Child Career Plan

Komal Jeevan

Marriage Endowment OrEducational Annuity Plan

Jeevan Chhaya

Child Future Plan

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra(Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan

Jeevan Amrit

Jeevan Shree-I

Jeevan Pramukh

Jeevan Varsha

The Money Back Policy-20 Years

The Money Back Policy-25 Years

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http://www.licindia.com/children_need_001_benefits.htm


Jeevan Surabhi-15 Years



Bima Bachat

Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan-I

Unit plans

Unit plans are investment plans for those who realise the worth of hard-earned money. These plans help You see your savings yield rich benefits and help you save tax even if you don't have consistent income.

Market Plus I

Profit Plus

Fortune Plus

Money Plus-I

Child Fortune Plus

LIC’s Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans

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http://www.licindia.com/fortune_plus_features.htm

http://www.licindia.com/profit_plus_features.htm

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http://www.licindia.com/amulya_jeevan-I_benefits.htm

http://www.licindia.com/term_assurance_001_benefits.htm

http://www.licindia.com/term_assurance_003_features.htm

http://www.licindia.com/term_assurance_002_features.htm

http://www.licindia.com/jeevan_tarang_plan_007_features.htm


http://www.licindia.com/wholelife_003_features.htm




http://www.licindia.com/periodic_moneyback_006_benefits.htm






are a perfect blend of insurance, investment and a lifetime of happiness!

New Bima Gold

Bima Nivesh 2005

Jeevan Saral

Jeevan Madhur

Health Plus

Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Gratuity Plus

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

Pension Plans are Individual Plans that gaze into your future and foresee financial

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http://www.licindia.com/social_securities_003.htm

http://www.licindia.com/social_securities_001_features.htm

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http://www.licindia.com/images/Gratuity-Plus-Sales-Brochure.pdf

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http://www.licindia.com/investment_plan_001_features.htm

http://www.licindia.com/investment_bimagold_features.htm


stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

Jeevan Nidhi

Jeevan Akshay-VI

New Jeevan Dhara-I

New Jeevan Suraksha-I

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http://www.licindia.com/pension_plans_003_features.htm


http://www.licindia.com/jeevan_akshay_plan_009_features.htm



2.2 ICICI Prudential Life Insurance

Overview

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. They began thier operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As they grow thier distribution, product range and customer base, they continue to tirelessly uphold thier commitment to deliver world-class financial solutions to customers all over India.

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country, with consolidated total assets of $121 billion as of September 30 , 2008. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s presence currently spans 19 countries, including India. Prudential Plc

Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders and manages over £256 billion of funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer

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with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-japan, with £34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

Vision:

To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This they hope to achieve by:

Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. They do believe that they are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping the sector. Given the quality of their parentage and the commitment of our team, there are no limits to our growth. Our values :

Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

Life Insurance Plans:

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Under Life insurance plans, ICICI Prudential offers plans under the following major need categories:

Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection Plans Retirement solutions

1.Education Insurance Plan:-

Plan Name

Plan Type

1. SmartKid New Unit-linkedRegular Premium

2. SmartKid New Unit-linkedSingle Premium

3. SmartKid Regular Premium

Unit Linked

Unit Linked

Traditional

2.Wealth Creation Plans:-

Plan Name

Plan Type

Wealth Advantage LifeStage Assure LifeTime Gold LifeLink Super PremierLife Gold

Unit Linked Unit Linked Unit Linked Unit Linked

Unit Linked

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LifeStage RP

Unit Linked

3. Premium Guarantee Plans:-

Plan Name

Plan Type

InvestShield Life New InvestShield CashBak

Unit Linked Unit Linked

4. Protection Plans:-

Plan Name

Plan Type

Pure Protect LifeGuard Save'n'Protect CashBak Home Assure

Traditional Traditional Traditional Traditional Tradition

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5. Retirement Solutions:-

Plan Name

Plan Type

LifeStage Pension PremierLife Pension LifeTime Super Pension LifeLink Super Pension ForeverLife Immediate Annuity

Unit Linked Unit Linked Unit Linked Unit Linked Traditional Traditional

2.3 Bajaj Allianz General Insurance Company Limited

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Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the last year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores.

In the first quarter of 2009-10, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

Vision

To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value

MissionAs a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

A Partnership Based on Synergy

Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital

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base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance.

Product of Bajaj Allianz

1.UNIT LINKED

Regular Premium

New UnitGain Super

UnitGain Plus Gold

New UnitGain Plus

New UnitGain

YoungCare

YoungCare Plus

New FamilyGain-R

Single Premium

New UnitGain Premier SP

New UnitGain Plus SP

2.PENSION

Annuity

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Pension Guarantee

Retirement

Future Income Generator

Swarna Vishranti

New UnitGain Easy Pension Plus RP

New UnitGain Easy Pension Plus SP

Future Secure

3.TRADITIONAL

Endowment

InvestGain

SaveCare Economy SP

Life Time Care

Super Saver

Money Back

CashGain

4.TERM PLANS

Protector Term Care New Risk Care

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5.WOMEN INSURANCE

House Wives

Working Women

6.HEALTH

Care First

Health Care

Family CareFirst

7.CHILDREN PLAN

ChildGain

8.JUST LAUNCHED

Family Assure Fortune Plus Capital Shield CenturyPlus II

9.GROUP

Non Employer EmployeeCredit ShieldGroup Term Life(Non Employer Employee)Group SurakshaSwayam Shakti SurakshaGroup Loan ProtectorGroup Income Protection

Employer EmployeeGroup Term Life(Employer Employee)

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New Group Gratuity Care New Group Superannuation Care Group Save PlusGroup Term Life in lieu of EDLIGroup Leave Encashment SchemeGroup AnnuityGroup Superannuation Gold

10.MICRO INSURANCE

Alp Nivesh YojanaJana Vikas YojanaSaral Suraksha Yojana

11.ADDITIONAL RIDER BENEFITS

Unit Linked Additional Rider Benefits UL Waiver of Premium Benefit UL Family Income Benefit

2.4 HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2009 holds 72.38 per cent of equity in the joint venture.

Our key strengths

Financial ExpertiseAs a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

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Range of Solutions We have a range of individual and group solutions, which can be easily customised to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Track Record so farOur gross premium income, for the year ending March 31, 2010 stood at Rs. 4,859 crores and new business premium income stood at Rs. 2,685 crores.

The company has covered over 9,59,000 lives year ending March 31, 2010.

Products

1.Individual Products

We at HDFC Standard Life realise that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

Protection Plans

You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price.

Our Protection range includes

Term Assurance Plan

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Loan Cover Term Assurance PlanHome Loan Protection Plan

Investment Plans

Our investment products are well suited to meet your long-term needs.

Our Investment range includes

Single Premium Whole Of Life planUnit Linked Wealth Maximiser Plus

Pension Plans

Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes

Personal Pension PlanUnit Linked PensionUnit Linked Pension PlusUnit Linked Pension II Unit Linked Pension Maximiser II

Our Immediate Annuity plan will aid you in receiving income post retirement and securing you financial independence.

Savings Plans

Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs.

Our Savings range includes

Endowment Assurance PlanAssurance PlanSavings Assurance PlanChildren’s PlanMoney BackUnit Linked EndowmentUnit Linked Endowment PlusUnit Linked Endowment SuvidhaUnit Linked Endowment Suvidha Plus

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Unit Linked Endowment Winner Unit Linked Endowment II Unit Linked Endowment Plus IIUnit Linked Young StarUnit Linked Young Star PlusUnit Linked Young Star SuvidhaUnit Linked Young Star Suvidha PlusUnit Linked Young Star II Unit Linked Young Star Plus IIUnit Linked Young Star Champion Unit Linked Enhanced Life Protection IISimpliLife

Health Plans

Our health plans provides you with timely support in case of any health related emergencies and helps you and your family to remain financially independent in difficult times.

Our Health range include

Critical Care PlanSurgiCare Plan

2.Group Products

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment.

We now offer the following group products to our esteemed corporate clients:

Group Term Insurance

Group Variable Term Insurance

Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes

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of your companyAlso suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

2.5 AVIVA Life Insurance

Aviva is UK's largest and the world's fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 50 million-customer base with presence in 27 countries. It has £381 billion of assets under management.

In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products.

In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share.

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With a strong sales force of over 30,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the "Financial Health Check" (FHC) Aviva's sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customer's long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN Amro Bank, The Lakshmi Vilas Bank Ltd., Punjab & Sind Bank, IndusInd Bank, Co-operative Banks and Regional Rural Banks.

When Aviva entered the market, most companies were offering traditional life products. Aviva started by offering the more modern Unit Linked and Unitised With Profit products to the customers, creating a unique differentiation. Aviva's products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Unit Linked products in the market. Its products include: whole life (LifeLong, Aviva LifeLine), endowment (LifeSaver, SaveGuard, EasyLife Plus, LifeSaver Plus, LifeSaver Super,Aviva Sachin Century) and traditional endowment (Dhan Vriddhi, Aviva Moneyback), child plan (Aviva Little Master) single premium (LifeBond Plus), pension (PensionPlus,Secure Pension), term (LifeShield), fixed term protection cum savings plan (Freedom LifePlan), health plan (Aviva Health Plus),with profits plan (Aviva Money Back) and a short-pay recurring premium investment cum protection plan (LifeBond5). Aviva products are modern and contemporary unitized products that offer unique customer benefits like flexibility to choose cover levels, indexation, partial withdrawals and unique investment options like a Systematic Transfer Plan to get the benefit of systematic investments and an Automatic Asset Allocation Plan which changes the risk structure on your investments as your age increases. We also have 3 rural plans which are a low cost term plan - Amar Suraksha and 2 endowments - Anmol Suraksha and Jana Suraksha.

Aviva's Fund management operation is one of its key differentiators. Operating from Mumbai, Aviva has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and seven Unit Linked funds: - Protector Fund, Secure Fund, Balanced Fund, Growth Fund,Enhancer Fund,Index Fund and Bond Fund.

Aviva has 223 Branches in India supporting its distribution network. Through its Bancassurance partner locations, Aviva products are available in close to 3,000 towns and cities across India.

Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basix (a micro financial institution) and other NGOs, it has

27


been able to reach the weaker sections of the society and provide life insurance to them.

Recently,Aviva India has been ranked amomgst the top 25 employers by The Great to Work Institute(GPTW) in the "Best Workplaces in India" study for 2008.

Vision

Aviva - where exceeding expectations through innovative solutions is "our" way of life

This is the compelling vision that Aviva India has created through the active contribution of its employees. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners & employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for winning, Innovation and Empowered team that we have collectively defined and committed to working towards.

Individual

At Aviva we are dedicated to helping you make the most out of your life, and that includes all your savings and protection requirements. We are here when you need to make informed financial decisions - for you, and for your loved ones.

We offer products under the following six categories for individuals

1. Whole Life - As the name suggests, these products continue throughout your life and pay out to your dependants only upon your death. These are useful if you want to create a financial corpus for your family.

LifeLong

28


Aviva Lifeline

2. Pure Term -Pure term products are designed to provide your dependants financial protection at a low cost in case of your death.

LifeShield

3. Endowments - Endowment products are meant to help you create a corpus to meet financial needs during your lifetime. These products also provide a financial cover in case of death

LifeBond 5

LifeSaver

SaveGuard

LifeSaver Plus

LifeSaver Super

Freedom LifePlan

Aviva DhanVriddhi

Anmol Suraksha

Aviva Sachin Century

Aviva Money Back

Aviva EasyLife Plus

Aviva Wealth Plus

4. Single Premium - single premium products are meant for lump sum investments. These products are meant for maximizing your investment returns while providing tax benefits on your investment.

LifeBond Plus 5. Pension Plans - pension products as the name suggests are meant for retirement

29


planning and aim to maximize your post retirement income

PensionPlus

Secure Pension

Aviva Pension Elite

6. Child Plans - child plans are meant for investments benefiting your child when he/ she needs them. Investments in these plans can be used for needs like funding higher education, setting up a business, marriage expenses etc.

Aviva LittleMaster

Aviva Young Scholar

7. Health Products -When it comes to healthcare there can be no compromises. Even though healthcare comes with huge cost implication and at most unexpected of times. One must at all time be prepared to meet this contingency by setting aside a certain sum of money in form of saving or premiums for health assurance.

Aviva Health Plus LifeLong, Life Saver or Young Achiever

EasyLife Plus, Treasure Plus, SaveGuard or Life Bond5

Life Shield, Secure Life, Amar Suraksha or Anmol Suraksha

30


RESEARCH METHODLOGY

3.1 Introduction:

“Research is purposive analysis tries to establish a basis for prediction and control behavior of its studies.” Dale Yoder.

31


Research in common parlance refers to a search for knowledge. One can also define research as scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation.

“Research is a systematic method of collecting, recording facts, tabulating and analyzing the fact in the form of objective set as through conclusion over the problem based on the collected data.”

The essential purpose of research is to provide information which will facilitate the identification of an opportunity or problem situation and to assist in arriving at the best possible decision when such situations are encountered. To define the problem is the first step in research process followed by determining the information needed and sources of data securing information, data analysis and interpretation and finally preparing the research report.

Region Under Study : - Amravati City

32


3.2 PROBLEM FORMULATION

33


The first and forecast steps in any research procedures problem formulation. It involves

developing and understanding of problem. This step consists several interrelated tasks and

activities. It is perhaps the most critical stage in marketing research process. If the problem is

defined or if the uses of research are not made clear then the research result may prove useless to

manager. This step requires a good dialogue between a decision, maker and marketing

researcher. This step under goes following activities.

a) Problem Audit It is the comprehensive and systematic examination of the marketing problem with

objective of understanding its origin and nature.

b) Background Analysis This is an exploratory analysis devotes to placing the problem in perceptive and

perhaps even providing sufficient information for resolving the problem. It consists of

situation investigation, literature, review, expert opinion sampling.

c) Determining The Researching Task It includes to the specific ser of marketing objectives. It specifies the particulars

information need to be met by research result. Insurance policy can be complex and most

of the policyholders may not understand the fees and terms included in the policy. In

other words, there is a lack of knowledge and awareness in policy holders about private

insurance.

To understand an issue like complexity of insurance, lack of knowledge,

awareness and attitude of people towards the life insurance, hence the title of the research

is-

“A FUNDAMENTAL ANALYSIS OF INSURANCE SECTOR WITH SPECIAL

REFERENCE TO INVESTMENT PATTERN IN INSURANCE IN AMRAVATI

CITY”

3.3 RESEARCH OBJECTIVES

34


The objective of this study is to explore and compare the interrelationship amongst the different dependent and independent variable associate with the concept of consumer awareness and there preference in life insurance sector. To know the significance and role of Insurance companies in Economic sector and performance of these companies in Banking Sector. The research itself is a study to know Changes in business operations in Insurance sector in India. Study will be carried out for the following objectives

1. To study the changes over the years in Insurance sector.

2. To know the recent development in Insurance Field.

3. To know the performance of various Insurance Schemes by various Insurance providers.

4. To know all the innovations in Insurance products, procedures, services, system etc.

5. To ascertain the investment pattern of people in Amravati Region in Insurance Policies.

3.4 HYPOTHESIS:

Our main objective is to study the Life Insurance business in Amravati city. Also to know about consumer awareness about various scheme provide by the Life Insurance Company.

For this research work the hypothesis laid down as below:

1. Consumer are aware about Life Insurance.

2. The consumers are attracted by various schemes.

3.5 RESEARCH DESIGN

Research design is the plan structure and strategy of investigation conceived so as to

obtain answers to research question and to control variance. It is the blue print for the collection,

measurement of data. It aids the scientist in the allocation of his limited resources by posing

crucial choices-is the blue print to include experiments interviews observations, the analysis of

records, stimulation in or some combination of these? Are the method of data collection and the

research situation to be highly structured?

A research design is simply the framework or plan for a study used as a guide in

collecting and analyzing data. It is the blue print that followed in completing a study. It

35


resembles the architects blue print for a house. These results are interesting but they do not solve

the basic problem is a common latent. Thus a research design ensures that study

1. Will be relevant to the problem.

2. Will use economical problem.

As the outset may be noted that there are several ways of studying and tacking a

problem there is no single perfect design. As such, the researcher should not wait until he arrives

at a unique and perfect research design. Various authors have classified research designs in

different ways. Different types of research design have emerged on account of the different

perspective from which a research study can be viewed. However, a frequently used

classification system is to group research designs under three broad categories-

Exploratory, Descriptive and Causal.

3.6 TYPES OF RESEARCH DESIGN

1. Exploratory Research :-

Research design the major emphasis is on gaining ideas and insights. It is particularly helpful in breaking broad, vague problem statements in to smaller, more precise sub problem statement.

2. Descriptive Research :-

Descriptive studies are undertaken in many circumstances. When the

researcher is interested in knowing the characteristics of certain group such as age, sex,

occupation, education level, or income, a descriptive study may be necessary.

3. Causal Research :-

As the name implies a causal design investigate the cause and effect

relationship between two or more variables.

The type of research, which has been chosen for the present study, is descriptive

research.

36


3.7 RESEARCH PROCESS

All research problems require their own special emphases and

approaches since every research problem is unique in some ways the research problem is unique

in some ways. The research procedure is usually custom tailored. There is a sequence of step

called the research process the below chart shows the different stages in research process:

Research purpose:To decide alternatives

Evaluate the cost:Estimate the value of information

Research (design) Approach:Select the data collection techniques (surveys, experiments), Sample design

Research Method-3methods:ExploratoryDescriptive

Causal

Research objectives: Problem formulationResearch question,

Hypothesis development.

Conclusion and recommendations:Research report

Research Tactics:Data Collection, Analysis, and interpretation of data

DIAGRAM OF RESEARCH PROCESS

3.8 DATA COLLECTION

37

Specify what information will be sought

Determine type of the Questionnaire & method of administration

Determine forms & response to each question

Determine consent of individual question

Determine sequence of each question

Re-examine step 1 to 7 by testing questionnaire

Determine wordings of each question

Determine physical characteristics of questionnaire

Prepare for final data collection


1. Primary Data :-

Primary data is collected through survey method. Survey method involves collecting

data by administrating a structure or non-structure questioners. The questionnaires were prepared using

very simple and non-technical words. To serve the whole hearted co-operation without wasting more time

of respondents, the questionnaire was short and to the point. To collect the relevant data for a research

data will be collected in the form of questionnaire designing. Designing the questionnaire is not easy job

it will be formulated in carefully means which type of information to be collected, type of questions,

questions wording, sequencing and layout and presentation these all of things are designing in well

manner.

The questionnaire design procedure follows following steps. The said questionnaire is

attached in the appendix section.

Fig. : Questionnaire design Steps

2. Secondary Data :-

38


information of the insurance company. This data is collected from the related company

website, magazines, journal and Textbook.

3.9 SAMPLING

Once the researcher has clearly specified the problem and developed an appropriate research

design and data collection instrument, the next step in research process is to select those element from

which sample will be drawn. The sample selection process requires the form of sample be specified. For

this purpose, researcher has subjectively decided which particular group will be part of the study. In a

sample survey a small part of the entire population is subjected to the research. This sample is considered

to be the true representative of the entire universe and decided upon certain criteria. The sample size has

been kept to 100 as it was considered large enough to reliable result. After the sample size is decided, the

next step was to meet the respondent personally and to collect data from them through personal

interviews.

After conducting the personal interview of the respondents the next step was to arrange

the collected data finally coded and tabulated to obtain the results. The present study used MS Excel

package for the purpose of tabulation, which allows all kind of elementary statistical calculation. After

tabulation the data was ready for calculations to draw necessary inferences.

SAMPLING UNIVERSE: Investors in the Amravati City.

SAMPLING RECHNIQUE: Convenience Sampling.

3.10LIMITATION OF THE PRESENT STUDY

39


The present has following limitations.

1. It was somewhat difficult to get the questioners completely filled by the respondent as most of the

times they were busy and could not give sufficient answer and sufficient information even though

they have it and the information from respondents are very important for the research.

2. Some of the respondents were that not much serious about the filling questionnaire .

3. Some of the respondent left some questions unanswered and as it was little difficult to draw and

generalize the conclusion from them.

4. Some of them want to hide the fact that they did not respond and participated in the survey

wholeheartedly.

5. The findings entirely depend upon the willingness & mental condition of the respondents.

6. Some respondents were unable to understand the question due to various problems like language

barrier.

DATA ANALYSIS AND INTERPRETATION:

40


The objective of this study is to explore and compare the interrelationship amongst the different dependent and independent variable associate with the concept of consumer awareness and their preference in life insurance sector. The raw data is collected through interview and with the help of questionnaire. As discuss earlier respondent were selected for survey, they were interview on the basis of questionnaire prepared for them as given in the appendix. The data so collected is then tabulated, analyzed and interpreted.

Classification of respondent on their personal information:

The data so collected from the respondent is classified and tabulated on the ground of age factor, education of respondents, individual income and there occupation so on & so forth.

Age-wise classification :

option20-28yrs

29-36yrs

37-44yrs

above 45yrs

No. of respondents 17 28 41 14

Table No. T4.1 : Age-wise classification of Respondents

17%

28%

41%

14%

20-28yrs29-36yrs37-44yrsabove 45yrs

Graph No. G4.1 : Age-wise classification of Respondents

From the above table, it is seen that ,out of 100 respondents, only 17 respondent are in the age group of 20-28 and only 14 respondents are of above 45 years age. The major group that is 69 respondents fall in the age group 37-44 and 28-36.

Gender wise classification:

41


GenderNo. of respondent

Male 74Female 26

Table no T 4.2: Gender wise classification of respondents.

Male Female

No. of respondent 74 26

5

15

25

35

45

55

65

75

Axis

Title

Graph no G 4.2: Gender wise classification of respondents

From the above table, it is seen that , out of 100 respondent, major group of respondents is of Male i.e. 74 Male respondent.

Education wise classification:

42


Educational Qualification No. of respondentUndergraduate 19Graduate 46Post Graduate 27Any other 8

Table no T 4.3 Education wise classification of respondents

Undergraduate Graduate Post Graduate Any other0

5

10

15

20

25

30

35

40

45

50

19

46

27

8

No. of respondent

Graph no G 4.3 Education wise classification of respondents

From the above table and graph it is seen that graduate group is more dominant over the other group that is 46%. Other groups are 27%, 19% and 8%.

43


Occupation wise classification:

OccupationNo. of respondent

Businessmen 18Housewife 4Professional 32Service 36Any other 10

Table no T 4.4: Occupation wise classification of respondents

18%

4%

32%

36%

10%

No. of respondent

BusinessmenHousewifeProfessionalServiceAny other

Graph no G 4.4: Occupation wise classification of respondents

From the above table and graph, it is seen that, major respondent are from Service group i.e. 36% next to which is Professional group i.e. 32% and the least group is House wife that is 4%.

44


Income wise classification:

Total Family Income

No. of respondent

Under 5000 65001 - 10000 3810001 - 15000 40Above 15000 16

Table no T 4.5 : Income wise classification of respondents

6%

38%

40%

16%

Under 50005001- 1000010001 - 15000Above 15000

Graph no G 4.5 : Income wise classification of respondents

From the above table and graph, it is seen that, major group of respondent have a income between 10001 to 15000 i.e. 40%, and least income group have income less than 5000 i.e. 6%.

Family member wise classification

45


No. of Members

Family members

Adult 237Children 193

Table no T 4.6: Family member wise classification respondents

Adult Children0

50

100

150

200

250237

193

Family members

Graph no G 4.6: Family member wise classification respondents

From the above table & graph, it is seen that major group is adult group i.e.237 adult member, and other group is children group i.e. 193

Influencing factor wise classification

46


InfluencerNo. of respondents

Newspaper 13Family 15Friends 6T.V. 16Hoardings 10Agent 40Any other 0

Table no.T4.7 Influencing factor wise classification of respondents

Newspaper Family Friends T.V. Hordings Agent Any other

No. of respondents 13 15 6 16 10 40 0

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

Graph no.G4.7 Influencing factor wise classification of respondents

From the above table and graph, it is seen that agent group is more dominant over the other groups that is 40%, the other influencing group are newspaper, family members and TV.

47


Investment in plan wise classification

PlansNo. of respondent

Saving Plan 47Children Plan 21Pension Plan 19Loan Cover term Assurance Plan 3Term Assurance Plan 3Single Premium hole of life Insurance Plan 7

Table no. T4.8 Investment in plan wise classification of respondents

47

21

19

3 37

Current Plans of respondent

Saving Plan

Children Plan

Pension Plan

Term Assurance Plan

Single Premium hole of life Insurance Plan

Graph no. G4.8 Investment in plan wise classification of respondents

Out of 100 respondent survey under the study major respondent 47% have drawn there policy of Saving Plan Category, next to which the preference is given to children plan category i.e. 21% but there are very few respondent who preferred Term Assurence Plan and Single Premium Whole Of Life Insurance Plan i.e.2% only.

48


Company priority wise classification

Companies Selected

No. of respondent

LIC 55HDFC standard life 13ICICI prudential 16Bajaj Allianz 11Aviva Life Insurance 3Any other 2

Table no T4.9 Company priority wise classification of respondents

55%

13%

16%

11%3% 2%

LICHDFC standard lifeICICI prudentialBajaj AllianzAviva Life InsuranceAny other

Graph no G4.9 Company priority wise classification of respondents

From the above table and graph, it is seen that major group preferred is LIC that is 55% next to which preference is given to ICICI Prodential that is 16%, but very few respondent preferred to invest in Aviva Life Insurance and other companies that is 3% and 2% only.

49


Term period wise classification

Period of Plan

No. of respondents

10yrs 1415yrs 920yrs 3725yrs 40

Table no.T4.10 Term period wise classification of respondents

10yrs 15yrs 20yrs 25yrs

No. of respondents 14 9 37 40

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

Axis

Title

Graph no.G4.10 Term period wise classification of respondents

From the above graph and table, it is seen that, major group of respondent preferred to take policy for the term period of 25 years that is 40%, and least group preferred to take policy for 15years that is 9%.

50


Difficulty wise classification

Difficulties While choosing a plan

No. of respondents

High price (premium) 38Less Knowledge about plan 53Dilemma in selecting plan 6Any other 3

Table no. T4.11 Difficulty wise classification of respondents

38%

53%

6% 3%

High price (premium)Less Knowledge about planDilemma in selecting planAny other

Graph no. G4.11 Difficulty wise classification of respondents

From the above table and graph it is seen that, major group of respondent faced the difficulties of

having less knowledge about plan that is 53%, and less difficulties faced by respondent is

dilemma and any other in selecting plan that is 6% & 3% respectively.

51


Rank wise classification:

Ranking to Company

No. of respondents

LIC 47ICICI Prudential 18HDFC Standard Life 16Bajaj Allianz 14Aviva Life Insurance 3Any other 2

Table no,T4.12 Rank wise classification of respondents

LIC ICICI Pruden-tial

HDFC Stan-dard Life

Bajaj Allianz Aviva Life In-surance

Any other

No. of respon-dents

47 18 16 14 3 2

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

Axis

Title

Graph no,G4.12 Rank wise classification of respondents

From the above table and graph, it is seen that major group give top rank to LIC in general that is 47% and give least rank to AVIVA life insurance and any other that is 3% and 2%.

52


Factor wise classification:

Factors No. of Respondents

Very Important Important

Slightly Important

Cumulative score

Plan Attributes and Features 61 37 2

259

Company Image 33 58 9 224Minimum Premium 52 47 1 251Advertisement 40 45 15 225Sales promotion 18 76 6 212Safety and Reliability 67 33 0 267After Sales service 49 42 9 240Availability 25 73 2 223

Table no.T4.13 Factor wise classification of respondents

(Scale Used: Three Point Scale : 3 Very Important , 2 Important , 1 Slightly Important )

Plan Attrib

utes an

d Featu

res

Company I

mage

Minimum Prem

ium

Adverti

semen

t

Sales

promotion

Safet

y and Reli

abilit

y

After Sa

les se

rvice

Availib

ility

0

50

100

150

200

250

300259

224251

225 212

267240

223

cumulative score

cumulative score

Graph no.G4.13 Factor wise classification of respondents

From the above table and graph, it is seen that, the factor considered most important is safety and realiability, and the second factor is considered plan attributes and features, and the least factor which is considered sales promotion.

53


Investment in company wise classification:

Preference in future to company

No. of respondents

LIC 59Bajaj Allianz 14ICICI Prudential 11HDFC Standard life 12Aviva Life Insurance 2Any Other 2

Table no.T4.14 Investment in company wise classification of respondents

LIC

Bajaj Allia

nz

ICICI Prudential

HDFC Standard

life

Aviva Li

fe Insuran

ceAny O

ther0

10

20

30

40

50

60

7059

1411 12

2 2

No. of respondents

Graph no.G4.14 Investment in company wise classification of respondents

From the above table and graph it is seen that, major group preferred to invest in LIC that is 59%, next to which the company preferred is BAJAJ ALLIANZE that is 14%, and the least preferred company by the group is AVIVA life insurance that is 2% and 2%.

54


Purpose wise classification:

Purpose of Plan Selection

No. of respondents

Life risk Cover 63Investment 21Tax Saving 14Any other 2

Table no.T4.15 Purpose wise classification of respondents

63%

21%

14%2%

Life risk Cover InvestmentTax SavingAny other

Graph no.G4.15 Purpose wise classification of respondents

From the above table and graph, it is seen that major group preferred to life risk cover that is 63% and less preferred tax saving and any other that is 14% and 2%.

55


Policy benefit wise classification:

Benefits in PlanNo. of respondents

Death Benefit 26Critical Illness 42Accidental Benefit 32

Table no. T4.16 Policy benefit wise classification of respondents

Death Benefit Critical Illness Accidental Benefit0

5

10

15

20

25

30

35

40

45

26

42

32

No. of resondents

Graph no. G4.16 Policy benefit wise classification of respondents

From the above table and graph it is seen that, major group preferred the critical illness benefits that is 42% and least group prefer r is death benefit that is 26%.

56


Fund wise classification:

Factors No. of respondentsLiquid Fund - Low Risk & Return Rating 32Secure Managed Fund - Low Moderate 24Defensive Managed Fund - Moderate 17Balance Managed Fund - High 12Equity Managed Fund - Very High 10Growth Fund - Very High 7

Table no.T4.17 Fund wise classification of respondents

31%

24%

17%

12%

10%

7%

Liquid Fund - Low Risk & Return Rating Secure Managed Fund - Low ModerateDefensive Managed Fund - ModerateBalance Managed Fund - HighEquity Managed Fund - Very HighGrowth Fund - Very High

Graph no.G4.17 Fund wise classification of respondents

From the above table and graph, it is seen that, major group invest in liquid fund which is low risk and return rating that is 32% , and leaser group invest is growth fund which is very high risk that is 7%.

57


Option wise classification:

OptionsNo. of respondents

Premium Payments 57Single Premium Top-Up 19Premium Changes 22Changing Your Investment Designs 12

Table no. T4.18 Option wise classification of respondents

Premium Paym

ents

Single

Premium To

p-Up

Premium Chan

ges

Changin

g Your In

vestm

ent D

esions

0

10

20

30

40

50

6057

19 22

12

No. of respondents

Graph no. G4.18 Option wise classification of respondents

From the above table and graph, it is seen that, major group prefer the option of premium payments that is 57% , and small group preferred the option of single premium top-up that is 9%.

58


Percentage of saving wise classification:

Percentage of Saving

No. of respondents

< 10% 27Up to 25% 51Up to 50% 13> 50% 9

Table no.T4.19 Percentage of saving wise classification of respondents

27%

51%

13%

9%

< 10%Up to 25%Up to 50%> 50%

Graph no.G4.19 Percentage of saving wise classification of respondents

From the above table and graph it is seen that the major group invest their savings up to 25% of their total savings that is 51%, next to which the group invest less that 10% of their total savings that is27% and very few group invest more than 50% of their total savings that is 9%.

59


Saving investment options wise classification:

Saving Investment Options

No. of respondents

Insurance 34Stock Market 16Banks 27Real Estate 23

Table no. T4.20 Saving investment options wise classification of respondents

34%

16%

27%

23%

InsuraneStock MarketBanksReal Estate

Graph no. G4.20 Saving investment options wise classification of respondents

From the above table and graph, it is seen that, the 34% of respondent prefer to invest more percentage of their total savings in insurance and least group of respondent that is 16% prefer to invest more percentage of their total saving in stock market.

60


Benefit wise comparison :

CompanyDeath Benefit

Critical Illness Benefits

Accidental Benifts

LIC 53.85 52.38 34.375ICICI Prudential 15.38 9.52 18.75HDFC Life Insurance 7.69 14.29 31.25Bajaj Allianz 19.23 19.05 9.375AVIVA Life Insurance 0 4.76 3.125Any Other 3.85 0 3.125

Table no. T4.21 Benefit wise comparison of respondent

LIC

ICICI Pruden

tial

HDFC Lif

e Insuran

ce

Bajaj A

llianz

AVIVA Life In

surance

Any Other

0

10

20

30

40

50

60

Death BenefitCritical Illness BenefitsAccidental Benifts

Graph no. G4.21 Benefit wise comparison of respondent

From the above table and graph, it is seen that maximum respondent of death benefit , critical illness benefit and accidental benefit have preferred LIC and next for death benefit, critical illness benefit preferred Bajaj Allianz and for accidental benefit preferred HDFC Standard Life . least respondents preferred AVIVA Life Insurance and Other Companies for all benefits.

61


CONCLUSION AND SUGGESTIONS:

5.1 Conclusion:

After analyzing the whole data i.e. primary and secondary data, we can conclude that:

1. The respondent have given the top ranking to the companies as per the market trend hence, respondent are well aware Insurance Plan. But the in-depth knowledge about the plan is the major problem.

2. From the survey it is found that the maximum policy holder are in age group 37 to 44 years and middle age group.

3. As per the gender wise profile, the data revealed that maximum respondents are male, it shows that still the high involvement product buying decisions, male are influencer as well as purchaser.

4. Education also plays an important role in insuring our self or out family members and covering risk.

5. Middle income group that is 10001 to 15000 is the major customer of insurance company.

6. In most of the cases agent plays a very important role in giving insurance plan to the customer. The main reason may be his in-depth knowledge about the different plan of the insurance company. Newspapers, insured family members and TV also playing considerable role in converting a person in customer of insurance companies.

7. The respondent of the insurance company is giving the major importance to saving plan and children plan.

8. As far as the selection of insurance company is preferred LIC is the first prefer company and ICICI & HDFC prudential and other company are less preferred by the customers. The main reason for this may be the returns they are getting from the company.

9. Now a days, people are becoming conscious about the security of their family and hence they are (51%) are saving (25%) of their total income in insurance company.

10. In respondent point of view investment in insurance is beneficial because 37% of respondent investing their maximum percentage of total saving in insurance sector and the next preferred sector is Bank i.e. 30% & least preferred sector is Stock market i.e. 16%.

11. It is seen that LIC provide maximum benefit to respondent in all three category i.e. death benefit , critical illness benefit and accidental benefit, that’s why respondent first choice is LIC, next to that Bajaj Allianz and HDFC Standard Life . Least respondents preferred AVIVA Life Insurance and Other Companies for all benefits

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5.2 Suggestions:-

1. Insurance companies should encourage women executive ,working professionals, salaried and government employees with respect to various insurance schemes by imparting educational programs so that they should have a distinct role in buying process in male dominant society.

2. Companies can incorporate innovative schemes to attract lower income group people so that they can avail benefits offered by insurance companies.

3. From the present study it is suggested that low premium plans must be implemented for customers

4. Companies should launch children’s plans with more benefits .5. Companies should give more stress and importance to pension plans.6. LIC is well reputed company in life insurance sector, so it get maximum

customer. But the other remaining companies like ICICI Prudential, Bajaj Allianz ,HDFC Standard Life etc. are new for the market of India . So they don’t get response from the new customer. It is suggested that they have to adopt some promotional strategy, which will attract the customer.

BIBLIOGRAPHY

Books

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Dr.TVS Arun Murthy & Dr. D.G. Wakde, “Research Methodology”. LIC Agents (Manual) books which is provide by the company-published by LIC

Pamphlets:-

HDFC Standard Life Insurance Company, ICICI Prudential and Bajaj Allianz.

Website:-

www.avivalife.com www.bajajallianz.com www.bimaonline.com www.hdfcinsurance.com www.iciciprulife.com www.irda.com www.licindia.com

APPENDIX

QUESTIONNAIRE

64

http://www.licindia.com/

http://www.irda.com/

http://www.iciciprulife.com/

http://www.hdfcinsurance.com/

http://www.bimaonline.com/

http://www.bajajallianz.com/

http://www.avivalife.com/


Dear Respondent,

I am conducting a survey on “A Fundamental Analysis of Insurance Sector With Special Reference to Investment Pattern in Insurance

in Amravati City” it is a part of my academic requirement which is carried under the department of Business Administration and Research,

Vidyabharti Mahavidhyalaya,Amravati.

I kindly request you to fill up the following questionnaire and co-operate me, for bringing grand success.

SAGAR JODHANI

(MBA-FINANCE)

------------------------------------------------------------------------------------------------------------------------------------------------------------

Respondent personal information:

Name of Respondent:__________________________________________________________________

Address: _____________________________________________________________________________

Age:___________

Gender:

a) Male [ ] b) Female [ ]

Educational Qualification:

a) Under Graduate [ ] b) Graduate [ ]

d) Post Graduate [ ] d) Any Other [ ]

Occupation:

a) Businessmen [ ] b) House Wife [ ]

c) Professional [ ] d) Service [ ]

e) Any Other [ ]

Total family Income:

a) Under 5000 [ ] b) 5000 to 10000 [ ]

c) 11000-15000 [ ] d) Above 15000 [ ]

How many members are there in your family?

a) Adult [ ] b) Children [ ]

Q. 1. Who of the following influenced you to purchase the insurance plan?

a) Newspaper [ ] b) Family [ ]

c) Friends [ ] d) T.V. [ ]

e) Holdings [ ] f) Agent [ ]

g) Any other [ ]

Q.2. Which of the following plan do you have? Please Tick [ √ ] Number

a) Saving plan [ ] [ ]

b) Children plan [ ] [ ]

c) Pension plan [ ] [ ]

d) Loan cover term assurance plan [ ] [ ]

e) Term assurance plan [ ] [ ]

f) Single premium whole of life insurance plan [ ] [ ]

Q.3. Which of the following company for life insurance you have selected?

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Sr.No Companies name Please Tick [√ ] Number

1. LIC

2. HDFC Standard Life

3. ICICI Prudential

4. Bajaj Allianz

5. AVIVA Life Insurance

6. Any Other

Q.4. For how many years you have preferred a plan?

a) 10 Years [ ] b) 15 Years [ ]

c) 20 Years [ ] d) 25 Years [ ]

Q.5. Which difficulties you faced while choosing the particular plan?

a) High Price (High premium) [ ] b) Less knowledge about plan [ ]

c) Dilemma in selecting plan [ ] d) Any other___________________

Q.6. Tick mark the Top rank Company (General)-

a) LIC [ ] b) ICICI Prudential [ ]

c) HDFC Life Insurance [ ] d) Bajaj Allianz [ ]

e) AVIVA Life Insurance [ ] f) Any Other [ ]

Q.7. What are the factors that you have think over at the time of deciding to purchase the particular Insurance plan? (Please Tick [√]

mark).

Sr. No. Factors Very Important Important Slightly Important

01 Plan Attributes & Features

02 Company Image

03 Minimum Premium

04 Advertisement

05 Sales Promotion

06 Safety & Reliability

07 After Sales Service

08 Availability

Q.8. Which companies will you prefer for your future investment?

a) LIC [ ] b) Bajaj Allianz [ ]

c) ICICI prudential [ ] d) HDFC Standard Life [ ]

e) AVIVA Life Insurance [ ] f) Any Other [ ]

Q.9. For what purpose do you select the plan?

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a) Life Risk Cover [ ] b) Investment [ ]

c) Tax Saving [ ] d) Any Other [ ]

Q.10. Which of the following benefits/riders would you like to select for your plan?

a) Death benefit [ ] b) Critical Illness Benefit [ ]

c) Accidental benefit [ ]

Q.11. In which of the following funds would you like to invest in your plan?

Sr.No. Name of fund Risk & Return Rating Tick Mark [ √ ] 1. Liquid Fund Low risk & return rating

2. Secure Managed Fund Low Moderate

3. Defensive Managed Fund Moderate

4. Balanced Managed Fund High

5. Equity Managed Fund Very High

6. Growth Fund Very High

Q.12. Which of the flexible option are beneficial for your needs?

a) Premium payments [ ] b) Single Premium Top-up [ ]

c) Premium Changes [ ] d) Changing your investment decisions [ ]

Q.13. What is the percentage savings you have invested in insurance?

a) Less than 10 percent of total savings [ ] b) Up to 25 Percent of total savings [ ]

c) Up to 50 Percent of total savings [ ] d) More than 50 Percent of total savings [ ]

Q.14. In which sector you are invested more part of your saving?

a) Insurance [ ] b] Stock market [ ]

c) Bank [ ] d] Real Estate [ ]

Q.15. Suggestion to consumer to purchase plans from Insurance companies.

________________________________________________________________________________________________________________________

_________________________________________________

Thank you……

67

insurance project

Documents

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