Mba training report . on custumer buying behaviour

TRAINING REPORT 2013

A

SUMMER TRAINING REPORT

ON “CUSTSOMER-BUYING BEHAVIOUR WITH A FOCUS ON MARKET

SEGMENTATION”

Conducted at: DLF PRAMERICA LIFE INSURANCE COMPANY LTD.

Submitted in partial fulfillment of the requirement for the award of the Degree of master in business administration (session 2012-2014) M.B.A 3rd semester SUBMITTED TO : SUBMITTED BY :

KURUKSHETRA UNIVERSITY, Malkeet Singh KURUKSHETRA . M.B.A (hons)F Roll no. 46

UNIVERSITY SCHOOL OF MANAGEMENT

KURUKSHETRA UNIVERSITY, KURUKSHETRA.HARYANA-136119(INDIA)

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PrefaceAcknowledgement

Declaration

Organization certificate

Executive summary

Sr. no. Chapters name Page no.

1. Industry profile 8.

2. Company profile 20.

3. Research methodology 33.

3.1 Objectives of the study

3.2 Research design

3.3 Methods of data collection

3.4 Techniques

3.5 Scope of the study

3.6 Significance of the study

3.7 Limitations of the study

4. Study of the topic 38.

5. Analysis and interpretation 40.

6. Findings, Conclusion and policy implication 60.

7. Suggestions 62.

8. Bibliography 63.

9. Appendix 64.

Questionnaire

CONTENTS

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PREFACE

The liberalization of the Indian insurance sector has been the subject of much heated debate

for some years. The policy makers where in the catch 22 situation wherein for one they

wanted competition, development and growth of this insurance sector which is extremely

essential for channeling the investments in to the infrastructure sector. At the other end the

policy makers had the fears that the insurance premia, which are substantial, would seep out

of the country; and wanted to have a cautious approach of opening for foreign participation in

the sector.

As one of the rare occurrences the entire debate was put on the back burner and the IRDA

saw the day of the light thanks to the maturing polity emerging consensus among factions of

different political parties. Though some changes and some restrictive clauses as regards to the

foreign participation were included the IRDA has opened the doors for the private entry into

insurance.

Whether the insurer is old or new, private or public, expanding the market will present

multitude of challenges and opportunities. But the key issues, possible trends, opportunities

and challenges that insurance sector will have still remains under the realms of the

possibilities and speculation.

What is the likely impact of opening up India’s insurance sector?

The large scale of operations, public sector bureaucracies and cumbersome procedures

hampers nationalized insurers. Therefore, potential private entrants expect to score in the

areas of customer service, speed and flexibility. They point out that their entry will mean

better products and choice for the consumer. The critics counter that the benefit will be slim,

because new players will concentrate on affluent, urban customers as foreign banks did until

recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a

conventional distribution network-are large and high-end niches offer better returns.

However, the middle market segment too has great potential. Since insurance is a volumes

game. Therefore, private insurers would be best served by a middle-market approach,

targeting customer segments that are currently untapped.

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ACKNOWLEDGEMENT

First of fall I would like to thank the Management at DLF PAMERICA Life Insurance

Company Ltd for giving me the opportunity to do my two-month project training in their

esteemed organization. I am highly obliged to Mr. NEERAJ VERMA (Branch Manager) for

granting me to undertake my training at KARNAL branch.

I express my thanks to Mr. Kanwar Abhimanyu (Sales Managers) under whose able guidance

and direction, I was able to give shape to my training. Their constant review and excellent

suggestions throughout the project are highly commendable. My heartfelt thanks go to all the

executives who helped me gain knowledge about the actual working and the processes

involved in various departments

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DECLARATION

I hereby declare that the project report titled “Customer-buying behavior with a

focus on market segmentation” at DLF PRAMERICA Life Insuarance Co. Ltd.

submitted in partial fulfillment of the requirement for the Degree of Master of Business

Administration is record of bonafide research and that no part of this report has been

submitted for the award of any other diploma, degree fellowship or other similar title prize.

The report is based on my personal opinion hence cannot be referred for official or legal

purpose. The conclusion & findings in the project are based on the data collected by me. The

contents and the data are collected by me under the guidance of training guide.

Place: Kurukshetra Malkeet singh

Date:_____________ (Signature)

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EXECUTIVE SUMMARY

• The success story of good market share of different market organizations depends

upon the availability of the product and services near to the customer, which can be

distributed through a distribution channel. In Insurance sector, distribution channel

includes only agents or agency holders of the company. If a company like

RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the

market they can capture big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies and

benefits of the company can be explained to the customer

In today’s corporate and competitive world, I find that insurance sector has the maximum

growth and potential as compared to the other sectors. Insurance has the maximum growth

rate of 70- 80% while as FMCG sector has maximum 12-15% of growth rate. This growth

potential attracts me to enter in this sector and DLF PRAMERICA Life Insurance

Company Ltd has given me the opportunity to work and get experience in highly

competitive and enhancing sector.

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THE INTRODUCTION TO INDUSTRY

THE HISTORY OF INDIAN INSURANCE INDUSTRY

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the Oriental

Life Insurance Company. First attempts at regulation of the industry were made with the

introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments

to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in

the Act were the power given to the Government to collect statistical information about the

insured and the high level of protection the Act gave to the public through regulation and

control. When the Act was changed in 1950, this meant far reaching changes in the industry.

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The extra requirements included a statutory requirement of a certain level of equity capital, a

ceiling on share holdings in such companies to prevent dominant control (to protect the

public from any adversarial

policies from one single party), stricter control on investments and, generally, much tighter

control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies.

Business was heavily concentrated in urban areas and targeted the higher echelons of

society.“Unethical practices adopted by some of the players against the interests of the

consumers” then led the Indian government to nationalize the industry. In September 1956,

nationalization was completed, merging all these companies into the so-called Life Insurance

Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity,

growth and reach.”Some of the important milestones in the life insurance business in

India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance

The General Insurance industry in India dates back to the Industrial Revolution and the

subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the

British brought General Insurance to India, and a similar path was followed in the

development of this industry. A number of private companies were in existence for years and

years until, in 1971, the Indian Government decided that the public interest would be served

by nationalizing the industry, merging all the 107 companies into four companies, depending

on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National

Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance

Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi,

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Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in

1972 as a ‘holding’ company, having these four companies as its subsidiaries.

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

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes

of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a

code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA

• Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the

message of life insurance in the country and mobilise people’s savings for nation-building

activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,

Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in

important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the

country.

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The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United

Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-

India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,

Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also

entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and

pension

policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC

recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a

healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia

(3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to

five million people living below the poverty line, with 50 per cent subsidy in the premium

rates. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that

of global average of 40 per cent. Compounded annual growth rate for Life insurance business

has been 19.22 per cent per annum

• General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known

as General Insurance Corporation of India (GIC) was formed by the Central Government in

November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign

insurers which were operating in the country prior to nationalization, were grouped into four

operating companies, namely, (i) National Insurance Company Limited; (ii) New India

Assurance

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Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India

Insurance Company Limited. (However, with effect from Dec'2000, these subsidiaries have

been de-linked from the parent company and made as independent insurance companies). All

the above four subsidiaries of GIC operate all over the country competing with one another

and underwriting various classes of general insurance business except for aviation insurance

of national airlines and crop insurance which is handled by the GIC. Besides the domestic

market, the industry is presently operating in 17 countries directly through branches or

agencies and in 14 countries through subsidiary and associate companies.

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

The introduction of private players in the industry has added to the colors in the dull industry.

The initiatives taken by the private players are very competitive and have given immense

competition to the on time monopoly of the market LIC. Since the advent of the private

players in the market the industry has seen new and innovative steps taken by the players in

this sector. The new players have improved the service quality of the insurance. As a result

LIC down the years have seen the declining phase in its career. The market share was

distributed among the private players. Though LIC still holds the 75% of the insurance sector

but the upcoming natures of these private players are enough to give more competition to LIC

in the near future. LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05).

1.DLF Pramerica life insurance

DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited,

one of India’s largest and most respected real estate organizations, and Prudential

International Insurance Holdings, Ltd (PIIH), a fully owned subsidiary of Prudential

Financial, Inc. (hereafter referred to as “PFI”), a U.S. based financial services leader

About DLF

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DLF Limited is one of the leading real estate companies in the world. It has a track record of

over six decades of sustained growth, customer satisfaction, and innovation. DLF's primary

business is development of residential, commercial and retail properties. DLF has a unique

business model with earnings arising from development and rentals. DLF has entered into

several strategic alliances with global industry leaders. Also, it has recently forayed into the

infrastructure, SEZ, financial services and hotel businesses.

About PFI

Pramerica Financial is a trade name used by PFI, a company incorporated and with its

principal place of business in the United States, and its affiliates in select countries outside

the United States. PFI is a financial services leader with operations in the United States, Asia,

Europe, and Latin America. PFI’s diverse and talented employees are committed to helping

individual and institutional customers grow and protect their wealth through a variety of

products and services, including life insurance, annuities, retirement-related services, mutual

funds, investment management, and real estate services. In the U.S., the company’s iconic

Rock symbol has stood for strength, stability, expertise and innovation for more than a

century. PFI of the United States is not affiliated in any manner with Prudential plc, a

company incorporated in the United Kingdom.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together two

large forces - Max India Limited, a multi-business corporate, together with New York Life

International, a global expert in life insurance. With their various Products and Riders, there

are more than 400 product combinations to choose from. They have a national presence with

a network of 57 offices in 37 cities across India.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier

financial powerhouse and prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after receiving approval from

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Insurance Regulatory Development Authority (IRDA). The company has a network of about

56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

MahindraBank Ltd. (KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun

Life financial Services of Canada.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Allianz Bajaj Life Insurance Company Ltd.

Metlife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance

Limited started its operations from March 2001. The company is Head Quartered at Chennai,

and has two Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

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Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto

Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and

strength. Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct

General Insurance business (including Health Insurance business) in India. The Company has

an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining

26% is held by Allianz, AG, Germany.

3. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank

Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is

India's second largest bank, while Fairfax Financial Holdings is a diversified financial

corporate engaged in general insurance, reinsurance, insurance claims management and

investment management. Lombard Canada Ltd, a group company of Fairfax Financial

Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard

General Insurance Company received regulatory approvals to commence general insurance

business in August 2001.

4. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a

joint venture of the Murugappa Group & Mitsui Sumitomo. Chola-MS

commenced operations in October 2002 and has issued more than 1.4

lakh policies in its first calendar year of operations. The company has a

pan-Indian presence with offices in Chennai, Hyderabad, Bangalore, Kochi,

Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi,

Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata

Group and American International Group, Inc. (AIG). Tata AIG combines the strength and

integrity of the Tata Group with AIG's international expertise and financial strength. The Tata

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Group holds 74 per cent stake in the two insurance ventures while AIG holds the balance 26

per cent stake. Tata AIG General Insurance Company, which started its operations in India on

January 22, 2001, offers the complete range of insurance for automobile, home, personal

accident, travel, energy, marine, property and casualty, as well as several specialized

financial lines.

6. Reliance General Insurance Company Limited.

7. IFFCO Tokio General Insurance Co. Ltd

8. Export Credit Guarantee Corporation Ltd.

9. HDFC-Chubb General Insurance Co. Ltd.

Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also

a sector, which leads to benefits across the full spectrum, from the individual who now have

wider choices, to the economy, which see increased savings, to the infrastructure sector,

which can look forward to long term funding being available. In an under-insured economy,

newer channels of distribution have to be utilized to intensify the reach of insurance both in

urban and rural markets. This will create huge employment opportunities not only within

insurance companies but also as agents and consultants of insurance companies.

Marketing Mix Policies

Different companies can choose to position themselves differently and

hence the Marketing Mix is different. However, there are certain common

characteristics that one can cull out from the possible strategies that

companies adopt.

Product:

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The development of flexible products to suit individual requirements is what will differentiate

the winners from the also-rans. The key to success is in providing insurance solutions, not

standardized insurance products. The concept of riders/optional benefits has already been a

huge innovation brought about by the new players, which has led to customization of

products for individual needs. However, companies may differentiate themselves on the basis

of product segments that they choose to focus on and excel in.

Place:

Different companies may however choose different channels and different geographies to

focus on. The channel options are - tied agency force, corporate agents and brokers and this is

an area where different companies will make different choices. Many companies like

DLFpramerica Life are focusing on all channels whereas companies like Max New York Life

are focusing on the tied agency force only. Customer interface will be a key challenge for life

insurance companies and includes every that interaction that the customer has with the

company, such assales, new business underwriting, policy servicing, premium payments,

claim processing and so

on. Technology can play a crucial role in delivering the highest standards of service set by

thecompany and it will be imperative for any serious player to excel in all of these.

Price:

Price is a relevant differentiator only in two segments - pure term insurance and in pure

annuities. Here too, service delivery and financial strength will need to be present at a

minimumacceptable level for price to be a relevant differentiator. In case of savings oriented

products, long-term returns generated are more relevant than just the price of the product. A

focus on generating good investment performance and keeping a tight control on costs help in

generating good long-term maturity value for customers. Norms have been laid down on all

of these by IRDA and adhering to these while delivering good returns will be a challenge.

Promotion and Advertising:

The level of demand is latent and will have to be activated considerably. The market needs to

be developed. Greater awareness of insurance and the need to have it as a protection tool

rather than as a tax planning measure needs to be appreciated by the Indian people. Various

communication tools including advertising, direct marketing and road shows contribute to all

this and different companies take different approaches on these.

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Process:

Cashless settlement: One of the most defining and customer-friendly changes that we’ve

seen in recent years relates to the way claims settlements are made. The advent of the third-

party administrator (TPA) regime has facilitated the transition to the hugely convenient era of

cashless settlement of health and auto insurance claims. TPAs are entities who process claims

on behalf of insurers: the IRDA licenses them after it is satisfied that they have the financial

strength, the trained manpower, the infrastructure and the skills to undertake this activity.

Likewise, with auto insurance, the TPA ties up with garages and authorized service centers

for cashless settlement of auto insurance claims.

Lower premiums: The spirit of competition and the broadening of the risk experience of

insurance companies have contributed to a fall in premiums over the years. That’s because,

other things being equal, an insurer who covers the lives just of 10 people bears a higher risk

than an insurer who covers the lives of, say, 100 people. Further, a broader base will provide

greater efficiencies on costs such as distribution, management and claims. A broad basing of

the mortality experience, therefore, gives insurers the elbowroom to compete by lowering

premiums, and that trend is expected to continue.

Premium payment flexibility: Insurers have imparted certain flexibility to premium

payment options in order to address this concern. For instance, one now have the option to

pay your premiums upfront, which is then carried forward for the tenure of the policy. The

yearly premiums are drawn from the initial corpus. Insurers have also introduced the concept

of ‘automatic cover maintenance’ to protect your policy from lapsing owing to your omission

to pay your premium on time. Under this, in the event of your not paying the premium, the

insurer dips into your investment account to the extent of the premium. Of course, this comes

with an inbuilt drawback: your investment portion diminishes year on year to the extent of

the amount paid to cover your risk.

Physical Evidence:

This can play a significant role for marketing in the Indian scenario. Since Internet users are

comparatively lesser than countries such as US, the offline mode will be preferred in India.

Although the distribution model is largely agent-based, wherever the customer is in contact

with the company, this factor can play a significant role in luring the customer.

People:

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The most important factor that materializes sales and maintains customer relationships on a

long-term basis is this factor. No matter what distribution strategy a company adopts,

customer relati

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INTRODUCTION TO THE COMPANY

COMPANY PROFILE OF DLF PRAMERICA LIFE

INSURANCE COMPANY LTD.

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About DLF PRAMERICA LIFE INSURANCE

For DLF Pramerica Life Insurance Company Limited, this is not just a phrase - it is a

promise. It is to deliver on this promise to you, our customers, and your loved ones that we

commenced business  on September 01, 2008.

We know that our work begins much before telling you about our products - it begins with

comprehensive advice on everything related to insurance. From giving insurance advice to

offering information on our solutions and services and then finally to provide you with the

promised protection, our team stays with you every step of the way. A hand-picked and

highly trained sales force ensures that your needs are assessed accurately so that you can

make an informed choice and you get the insurance cover that is best suited to your needs.

We understand that your needs may vary from investment returns to protection and we advise

you on achieving both. Our mission is to not just help you with insurance, but also help you

achieve overall financial security. Through our customized plans and advice, we ensure that

you are financially secure to face any eventuality.

Ultimately, we are not just a life insurance provider. We are a symbol of trust, commitment

and leadership. We are a promise of protection.

Leadership

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PavanDhamija

Managing Director & CEO

Pavan Dhamija is the Managing Director & CEO of DLF Pramerica Life Insurance Company

Limited (DPLI).

Mr. Dhamija joined DPLI in August 2010 as Chief Operating Officer responsible for

oversight of several key departments in the company. He was appointed the CEO in January

2011. In his new role, he is focused on strengthening the business proposition and building a

robust operating model for sustained growth of the company.

Pavan Dhamija has over 17 years of experience in the retail financial services sector having

worked with leading consumer finance companies including GE Money, Standard Chartered

Bank and HDB, a fully owned subsidiary of HDFC Bank. He has initiated and implemented

effective business models in India and China and built several successful strategic

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partnerships, many from scratch. He has the unique exposure of working across functions;

both front end and back end and brings in valuable experience of working within start-up

environments, in JVs and with partners.

Pavan Dhamija is an alumni of the Indian Institute of Management (IIM), Ahmedabad, and

the Indian Institute of Technology (IIT), Kanpur.

Lineage

DLF Pramerica Life Insurance Company Limited is a joint venture between DLF Limited,

one of India’s largest and most respected real estate organizations, and Prudential

International Insurance Holdings, Ltd (PIIH), a fully owned subsidiary of Prudential

Financial, Inc. (hereafter referred to as “PFI”), a U.S. based financial services leader

About DLF

DLF Limited is one of the leading real estate companies in the world. It has a track record of

over six decades of sustained growth, customer satisfaction, and innovation. DLF's primary

business is development of residential, commercial and retail properties. DLF has a unique

business model with earnings arising from development and rentals. DLF has entered into

several strategic alliances with global industry leaders. Also, it has recently forayed into the

infrastructure, SEZ, financial services and hotel businesses.

About PFI

Pramerica Financial is a trade name used by PFI, a company incorporated and with its

principal place of business in the United States, and its affiliates in select countries outside

the United States. PFI is a financial services leader with operations in the United States, Asia,

Europe, and Latin America. PFI’s diverse and talented employees are committed to helping

individual and institutional customers grow and protect their wealth through a variety of

products and services, including life insurance, annuities, retirement-related services, mutual

funds, investment management, and real estate services. In the U.S., the company’s iconic

Rock symbol has stood for strength, stability, expertise and innovation for more than a

century. PFI of the United States is not affiliated in any manner with Prudential plc, a

company incorporated in the United Kingdom.

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Pramerica and the Rock Logo are proprietary servicemarks and may not be used without the

permission of the owner.

Vision & Values

Our Vision

At DLF Pramerica Life Insurance, our vision is to ensure that every life we touch, feels

secure and enriched.

Our Mission

We shall be a guide and a mentor to people so that they are able to make the most informed

insurance decisions to meet their life goals.

Our Values

Customer Focused

Be someone who places customers and their needs at the forefront while developing and

managing their financial solutions.

Mutual Respect

Build mutual respect by being an equal partner, who knows and willingly shares, helping

people go further, rather than walking ahead and leading them, or walking behind and

following.

Worthy of Trust

Build trust by choosing the right path, rather than the easy path and tell the truth the way it is.

Be someone who keeps promises, meets commitments and behaves with integrity at all times.

Winning

Be positive and confident; seize every moment, every day, with a winning perspective,

fearlessly facing the uncertainties of life.

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The Rock

Standing tall and firm.

At DLF Pramerica, the Rock is not just a corporate symbol. It is the essence of our being. It is

the icon of strength, stability, expertise and innovation and is the symbol of our unshakable

commitment to our customers, stakeholders and employees. It is also the seal of security for

the lives we touch. In fact, at the heart of everything we offer at DLF Pramerica - be it a sense

of trust, a ray of hope or a dash of happiness, are values that are truly and quintessentially

Rock-Solid.

Spirit Awards for Community Service

 THE 2013 PRAMERICA SPIRIT OF COMMUNITY AWARDS

 The Pramerica Spirit of Community Awards is a school-level recognition programme for

volunteer community service. The objective is to encourage the efforts of school children

currently engaged in voluntary community service and hold them up as role models for all

young Indians.

The programme is an extension of the Prudential Spirit of Community Awards, the largest

youth recognition programme in the United States, which Prudential Financial, Inc. (PFI) has

been conducting for the last 17 years to identify the country’s top youth volunteers. The

annual recognition events for these winners are held in Washington, D.C. and include gala

award ceremonies at the Smithsonian's National Museum of Natural History and the U.S.

Chamber of Commerce, tours of the capitol historic monuments and landmarks,

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Congressional visits on Capitol Hill, a festive dinner cruise on Potomac river and many other

exciting events. It also offers opportunity to the honourees from participating countries to

share their experiences and ideas with one another. Honourees also hear from notable public

figures. Past speakers have included Jimmy Carter, Barbara Bush, Magic Johnson, Richard

Dreyfuss, Madeleine Albright, Martin Sheen, Rudy Giuliani, Whoopi Goldberg, Susan

Sarandon, Colin Powell, Ted Danson, Peyton Manning, Sarah Fergusan (The Duchess of

York), Laura Bush, Condoleezza Rice and numerous U.S. senators.

Besides the United States, the Spirit of Community Awards programme is conducted in

Japan, South Korea, Taiwan and Ireland. In India, the programme was introduced in 2010 and

more than 3500 students from across the country have participated in this initiative since

then.

Awards & Recognitions

DPLI was awarded as the "Best Insurer – Technology" by Asia Insurance Review and

Celent (part of Oliver Wyman group) in the inaugural ‘Asia Insurance Technology Awards’

held in Seoul in November 2011. The company was recognised for its initiatives in using

technology to make life insurance solutions accessible to the under-developed/ under-served

markets.

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DPLI won the "Skoch Financial Inclusion Award" in 2011 for an innovative marketing

initiative that aimed to generate awareness and understanding about the need and benefits of

life insurance among rural customers. The Skoch Awards recognize organizations doing

noteworthy work in the area of financial inclusiononship has to be taken care of in order to

maintain the customer base on a long

Below are some plans offer by dlf pramerica life insurance

Protection Plans

Life is uncertain and the future even more so. Keeping that in mind, it makes sense to think

ahead and secure ourselves and our families from any eventuality. DLF Pramerica Life

Insurance Company’s protection plans provide you and your family with the financial

security you need in case of unfortunate events like death or on the inability to earn due to

physical disabilities.

DLF Pramerica Family Income

Destiny is not a matter of chance; it is a matter of choice. So, when it comes to your family’s

future why leave it to fate? The tomorrow of your family will take shape based on the

decisions you take today. One right decision pays forever! It’s in your hands to ensure that

your family continues to have a safe and secure life even if you are not around. It’s you who

can ensure that despite your absence, your children grow up and fulfill their dreams and it’s

for you to provide your wife a secure and hassle-free future.

You will agree that to make all these wishes come true for them you will have to take the

right decision NOW.

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TRAINING REPORT 2013

DLF Pramerica Family First

Your family, as your biggest source of happiness, is the world around which most of your

decisions revolve.

You take care of all their needs - whether it is getting your children their favorite treats or

giving them the best possible education, from an evening in the park to a week-long holiday.

You want to give them all. There’s nothing you’d like to deny them. Naturally, you would

like them to have all this whether you’re there with them or not. This is where DLF

Pramerica Family First protection plan will be your support.

DLF Pramerica U-Protect

Your life is precious, more so for your family and your loved ones. You are the one who

make their world perfect. You are the one who spread happiness in their lives. After all, you

are the one who work tirelessly to make sure that the lives of your loved ones are comfortable

and well taken care of.

Although we leave no stone unturned to make sure that all the needs of our family are met,

yet we often leave a very big aspect unattended – the security of our family.  In our busy

lives, rarely do we pause for a moment and think of what would happen to our family in case

something unfortunate was to happen. After all, life is full of uncertainties regarding the

future and what it holds for us.

Therefore, it becomes our duty as a responsible parent, a loving spouse or a dependable child

to think ahead, plan and secure our family from any unfortunate happening.

Child Progress Plans

As a parent you are the mainstay for building your children’s confidence through the care and

support you provide them. Your most important responsibility is to secure your child’s future

financially so that all his/her needs are met - from education to his/her marriage. Our child

insurance plans work as hard as you to realize your dreams for your child, with the financial

security to help you enjoy life, knowing that you have taken care of your child’s insurance

needs.

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DLF Pramerica Fee Protect+

As a parent you understand the importance of a proper school education in securing your

child’s future. While the school builds the foundation of all that your child will do in later

life, helping you ensure the best possible education for your children is one of our highest

priorities.

DLF Pramerica Fee Protec t

As a parent, you understand the importance of a proper school education for securing your

child’s future. That is the reason why you take extraordinary effort to ensure that your child

gets the best possible schooling.While the school builds the foundation of all that your child

will do in later life, helping you ensure the best possible education for your children is one of

our highest priorities.

DLF Pramerica Future Idols Gold

As parents, you ensure that your children receive two things. The first one is a strong

foundation for them to become fine adults. The second is a gentle, affectionate environment

for them to blossom in.

As parents, you will always be concerned about your children's security and what they

become tomorrow. The fact remains though, that you cannot foresee your children's future

but you can help shape it.

Savings Plans

Your dreams for your loved ones come in all shapes and sizes, from the smallest of wishes to

the highest of aspirations. And helping them realize these dreams is where most of your

efforts are directed. When it comes to making your savings plans you have to ensure that you

have planned for everything from saving for a rainy day to taking your family abroad on a

holiday, from buying a new car to buying a bigger house, from getting your wife a nice

anniversary gift to getting your daughter married. DLF Pramerica Life Insurance protection

plans have been designed keeping this in mind and you can rest assured knowing that you

have ensured that your family gets the best that life and you can offer.

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TRAINING REPORT 2013

DLF Pramerica Dhan Suraksha

We toil day in and day out so that our family can have a better tomorrow. We keep looking

for opportunities to invest our hard earned money so our loved ones can have a brighter

future. That’s why we need to plan our investments prudently so that the effort that we put in

for the good/happiness of our family does not go waste. DLF Pramerica Dhan Suraksha gives

you the key to strike the balance between maximum savings and protecting all that you have

saved.

DLF Pramerica Aajeevan Samriddhi

Double the reason for you to smile – whole life protection with the advantage of a retirement

payout at age 65.

DLF Pramerica Assure Money +

Have you ever noticed how those little things that you do bring the greatest of joys to your

family? Like taking your kids out for an ice cream, or giving a bouquet to your wife, or

getting your dad the latest book of his favorite author or, maybe, taking your mother to the

temple over a weekend. Have you ever paused for a moment and wondered what makes these

small gestures so special? It is because these small gestures constantly reinforce the belief

that your family has in you – that of your selfless love and care.From you, they get the

assurance of a safe, secure and a steady life that is full of delight and happiness.

DLF Pramerica Wealth + Premier

Your family is your world and their well-being is your biggest concern. But life is full of

unexpected twists. So, who will protect them when you are not there? Isn’t it time you

thought about their future and invested in a saving plan that’s designed to give more family

protection than any other?

DLF Pramerica Ezee Wealth +

Life can get demanding at times and we often face our fair share of challenges - every day,

every week, every month. From toiling hard for earning money to striving even harder for

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TRAINING REPORT 2013

bringing happiness to our loved ones’ lives, we often find ourselves managing a lot of things

that need our time and attention. As it is said, nothing in life comes easy. When it comes to

investing in a savings plan to save for our family and secure their future, things look even

more difficult. What if there was a solution that gave us the freedom to do just that?

DLF Pramerica Wealth + Ace

When we have a large sum of money, it is tempting to indulge ourselves with things that we

so desire. While spending a little money from a windfall and enjoying a bit is only natural, it

is far wiser to take advantage of it to plan and prudently build assets and investments that will

secure your family’s happiness for the times ahead. DLF Pramerica Wealth+ Ace helps you

use any lump sum amount in one go, in the best way possible… Just invest and forget!

DLF Pramerica Tatkaal Suraksha Gold

Take a moment and think of a typical day in your life. From morning till evening, you are

caught up in a hundred things that demand your time and attention. You, in turn do your best

in managing all of these. In doing so, often the urgent gets priority over the important, and

you keep postponing essential things. For instance, buying yourself a life insurance cover.

However, when it comes to something as important as insuring your life can you afford to put

it off for later? Or excuse yourself from it simply because you don’t have time? Certainly

DLF Pramerica Wealth Assure

You constantly try to safeguard yourself and your family against the uncertainties in life.

Given the choice, you would leave nothing to chance when it comes to your fulfilling your

goals and ensuring your family’s financial security. At DLF Pramerica, we understand your

concern and while we cannot guarantee a future without surprises, we can at least help you

ensure that your family’s and your financial future remains secure.

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TRAINING REPORT 2013

Group Plans

DLF Pramerica Sarv Suraksha

To help you ensure a worry free future, we are pleased to bring to you

DLF Pramerica Sarv Suraksha. This extremely an affordable Group Term Insurance Plan

offers you complete protection with convenience. The scheme is simple and hassle-free. In

other words, peace of mind guaranteed.

DLF Pramerica Group Term Plan

A comprehensive protection plan that secures your group and their families from

uncertainties arising due to the unfortunate death of the insured person. What's more, this

plan provides enough flexibility to suit businesses of every need and scale, so that you can

take the right step today and help protect your members from the unpleasant surprises in life.

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RESEARCH METHODOLOGY

Title:

To determine customer-buying behaviour with a focus on market segmentation for DLF

Pramerica Life Insurance.

Title justification:

The above title is self explanatory. The study deals mainly with studying the buying pattern

in the insurance industry with a special focus on DLF Pramerica Life Insurance. The various

segments of the markets divided in terms of Insurance Needs, Age groups , Satisfaction levels

etc will also studied.

Objective

Main Objective

• To determine reasons behind opting for an insurance.

• To provide the company with information of customer's Insurance policy if they have any

and reasons for opting for that particular policies. To know the most preferred policy

Other Objective

• To determine customers perception towards private insurance companies and their

expectation form private insurance companies.

• To determine the feedback on services provided by any other insurance agent.

• To study the types of benefits provided by insurance services.

• To determine the use of Internet for valuable information and decision-making process.

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Research design

• NON-PROBABILITY

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of

information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to

collect the customer’s perception and buying behavior, through this questionnaire.

Data collection :

After the research design, research method and Sampling procedure is decided, the

next main step is Collection of Data for related study with the help of Research Method

decided.

In this study, the research method decided is – Survey Method and Secondary Data

Collection Method.

Survey Method provides primary Data i.e., first – hand information by filling-up

the Questionnaires.

Secondary Data collected from different Brochures, books and internet

Sampling techniques

Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of

the research. A pilot study was done in order to know the accuracy of the Questionnaire. The

final Questionnaire was arrived only after certain important changes were done. Thus my

sampling came out to be judemental and convinent

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Sampling Unit:

The respondants who were asked to fill out questionnaires are the sampling units. These

comprise of employees of MNCs, Govt. Employees, Self Employeds etc.

Sample size :

The sample size was restricted to only 100, which comprised of mainly respondents from

different regions due to time constraints.

Scope of the study

A big boom has been witnessed in Insurance Industry in recent times. A large number of new

players have entered the market and are vying to gain market share in this rapidly improving

market. The study deals with DLF Pramerica Life in focus and the various segments that it

caters to. The study then goes on to evaluate and analyse the findings so as to present a clear

picture of trends in the Insurance sector.

Significance of the study

Significance to the industry

This is a limited study which takes into consideration the responses of 100 people. This data

can be explorated to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapiddly changing and

evolving sector. People are only beginning to wake up to it’s vast possibilities. A study like

this can attempt to guide the future of the industry based on current trends.

Significane for the researcher

To facilitate and provide all the useful informtaion of the studt, the company, the insurance

industry and also provide marketing ways, methods of DLF Pramerica Life insurance.

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.Limitations of the research

1.The research is confined to a certain parts of haryana and does not necessarily shows a

pattern applicable to all of Country

2. Some respondents were reluctant to divulge personal information which can affect the

validity of all responses.

3. In a rapidly changing industry, analysis on one day or in one segment can change very

quickly. The environmental changes are vital to be considered in order to assimilate the

findings.

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STUDY OF THE TOPIC

In a phase when Indian Insurance Industry is undergoing regulatory and policy level

changes, and the industry is looking to grow at a high rate, low insurance penetration still

remains a matter of concern for all. At this stage, it becomes important to understand and the

buying behaviour of existing customers i.e. what actually motivates them to take a

purchase decision? Evaluate the needs of potential customers in terms of what type of

product are they looking for? Identify the challenge areas in customer service that should be

dealt on a priority basis so that the levels of satisfaction of customers can be improved for

business reputation and continuation.

In the context of the above, the present study was conducted with an objective to analyze the

buying behaviour of the respondents with respect to life insurance and to explore any pattern

in this behaviour based on socio-economic and geographical parameters. The study also

aimed at evaluating the level of customer satisfaction on services of life companies and

awareness levels on various aspects of the policy held by them.

Some of the Main findings are:

Majority of the respondents displayed a risk averse nature; they saved in low risk

and regular return instruments; Securing future of their children and meeting for

postretirement expenses was their prime motive to save; Tax saving was not in the

top three motives for savings;

Rate of return was secondary in importance and security of their savings was a major

priority while choosing instruments;

People looked for medium term instruments and had lower preference to very short

term and very long term instruments;

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Around 77 percent of the respondents perceived that their present savings was not

capable of fully meeting the requirements of critical illness and prolonged

hospitalization;

There was a predominant preference to agency channel by both current and potential

customers;

Average preference for agency as a channel among potential customers seen to be

lower when compared to existing customers;

Average preference for banks and internet seen to increase Marginally among

potential customers. Younger age group shows an inclination to usage of banking and

internet channel.

Endowment and Money back among top preference by both existing and potential

customers. However, a trend towards preference for life policy with fixed benefits

(health) by potential customers seen.

Perception on insurance as an instrument for saving seen to be very strong;

Better returns from other instruments quoted as the main reason for non-purchase of

Insurance; affordability also remains a hindrance factor for potential buyers.

Trustworthiness is the key determinant while choosing a company for purchase of life

products; existing customers also looked at Brand Name/Image;

Only one-fourth of the existing customers are fully satisfied with the overall services

of their life companies

A major proportion of the customers are ignorant of the minute details of their

policies;

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Customer Grievances seen to revolve mostly around ULIP's and Policy servicing

matters;

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DATA ANALYSIS & INTERPRETATION

1. Respondents perception about best form of investment for securing their futureinvestment NO. OF RESPONDENT %age

FIXED assets 75 33

Bank deposits 11 5

Jewellery 25 11

Securities i.e bonds;mfs 40 17

Shares 10 4

insuarance 70 30

interpretation• 33% of the respondents as with the view that Fixed Assets is the best form of investment for

securing their future.

• 30% of the respondents are with the perception that Insurance is the best form of

investment for securing their future, which is one of the highest and this shows that

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insurance is an important key for securing your future.

2. What people intent to gain from their investmentRESPONSE NO. OF RESPONDENCE %age

Savings & returns 100 38

Security 90 35

Tax benefits 71 27

interpretation

• 38% of the respondents intent to gain saving and returns from their investment.

• 35% of the respondent’s intent to gain security from their investments.

• Whereas, 27% of the respondent’s intent to gain tax benefits from their investments

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3.People perception about insurance

RESPONSE NO. OF RESPONDENT %age

A saving tool 81 32

A tax saving device 74 29

A tool to protect your family 100 39

Interpretation• 32% of the respondents have perception of Insurance being a saving tool.

• And 29% of the respondents have perception of Insurance being a tax saving device.

• But 39% of the respondents are with the view that Insurance is a tool to protect your family

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4. Peoples having insurance

RESPONSE NO. OF RESPONDENCE %age

YES 70 70

NO 30 30

Interpretation

•Of the sample size of 400 surveyed respondents 70% of the respondents are having

Insurance policy.

30% of the respondents are either not having any Insurance policy at present or their policy is

already matured.

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5. Reasons behind for insurance

RESPONSE NO.OF RESPONDENTS %age

Tax saving 80 31

Saving/investment 80 31

Family protection 100 38

Interpretation

• 31% of the Respondents opted for Insurance for tax saving benefits.

• 31% of the Respondents opted for saving / Investments.

• But all of them, i.e. 38 of the respondents have opted for insurance for their family

protection

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6.Number of insurance policy type respondents

Interpretation 52% of the respondents have Life Insurance Policy while 31% have both.

48

POLICY TYPE NO. OF RESPONDENT %age

LIFE POLICY 75 52

NON LIFE POLICY 25 17

BOTH 45 31

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7. Features of insurance policy that attracted respondents

FEATURE NO. OF RESPONDENTS %ageMoney back guarantee 15 15Larger risk coverance 37 37Easy access to agents 7 7Low premium 30 30Compony reputation 11 11TOTAL 100 100

Interpretation

Majority of the respondent (37%) found Larger risk coverance as the most attracted

feature of the all.

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8. Benefits of insurance perceived by respondents benefits no.of respondents share (%)

Benefits No of respondent %ageCover future uncertanity

55 55

Tax deduction 20 20Future investment 25 25Total 100 100

Interpretation 55% of the respondents believe that covering future uncertainty is

the biggest benefit of an insurance policy.

Whereas, 20% and 25% of them believe that the other benefits are Tax

deduction and future investments respectively

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9. Number of respondents paying tax

RESPONCE NO. OF RESPONDENTS %

Paying tax 100 100Not paying tax 0 0

Total 100 100

InterpretationOf the sample size of 400 respondents, all the respondents are paying tax

10.Respondent’s investments for tax saving

INVESTMENT NO. OF RESPONDENTS %age

LIC 51 30

NSC 33 19

BONDS 32 19

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PPF 25 14

PF 21 12

EPF 11 6

Interpretation

• 30% of the respondents save their tax by investing in LIC, which is the highest among all

Investment. This shows that most people for getting taxes benefits invest in LIC.

• 19% of the respondents do their tax saving by investing in NSC.

•19% of the respondents to their tax saving by investing in bonds

11.PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANY NAMENO OF RESPONDENT %age

LIC 78 78

DLF 2 2

ICICI 10 10

SBI 7 7

RELIANCE 3 3TOTAL 100 100

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LIC

DLF

ICICI

SBI

RELIANCE

0 10 20 30 40 50 60 70 80

SHARES%NO OF RESPONDENT

INTERPRETATION 78% of the people contacted prefer LIC policy to any other and

therefore it is ranked no.1 by that percent of respondents.

12. People opinion about indian insurance companies

RESPONSE NO. OF RESPONDENTS

%age

Rigid plans 67 35

Non user friendly 29 15

Unsatisfactory services 26 14

Non aggressive 35 18

Satisfactory 24 13

Good 10 5

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Very good 0 0

interpretation• 35% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.

• 15% feel that Indian Insurance companies are Non-user friendly.

• 14% feel that services of Indian Insurance companies are Unsatisfactory.

• 18% of the respondents are with the view that Indian Insurance companies are

Nonaggressive.

• 13% of the respondents feel that products and services of Indian Insurance companies is

Satisfactory.

• Whereas only 5% feel that it is Good enough.

• And according to the data, no single person has felt that it is very good

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13.people interested in going for insurance if a service provider away from the city offers better service & products

RESPONSE NO. OF RESPONDENTS %age

Yes 43 43

No 44 44

Uncertain 13 13

Total 100 100

interpretation• The interested customers i.e. 43% are ready to go for insurance even

away from a city if services and products are worthwhile, which again is a

good prospect (potential) for Reliance Life Insurance to take them on their

favor.

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14. People’s perception on appropriate age for buying insurance

RESPONSE NO. OF RESPONDENTS %age

After 25yrs 29 29

After 35yrs 10 10

After 45yrs 0 0

Anytime 60 60

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

25 years.

• 10.5% of the respondents are with the view that insurance should be buyed after the age of

35 years.

• Whereas, 60.5% of the respondents are with the view that buying of insurance do not have any thing to do with age i.e. there is no age limitations. It can be purchased any time

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15.Satisfaction of respondents with respect to policyRESPONCE NO. OF RESPONDENTS %age

Satisfied 60 60

Not satisfied 40 40

Not responded 0 0

Total 100 100

interpretation

• 60% of the respondents are more or less satisfied with their existing policy.

• 40% of the respondents are not satisfied with their existing policy.

• In this case all of those who have taken a policy have responded.

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16.Satisfaction of +respondents with respect to service agentRESPONCE NO. OF RESPONDENTS %age

Satisfied 45 45

Not satisfied 55 55

Not respondent 0 0

Total 100 100

interpretation• 45% of the respondents are satisfied with their existing service agent.

• 55% of the respondents are not satisfied with their existing insurance agent.

• All of those who have taken a policy have responded

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FINDINGS

1.As the people think that insurance is a tool to protect their family & a tax saving device.

They are aware of the fact & realizing its, importance. The company should try to expand &

build up its infrastructure because there is a large potential for insurance in India.

2.Company should come up with its branch in delhi. With the objective and goals to meet the

demands & expectations of the public. Because the entrance of private players will increase

the competition and it would be a tough task to secure a good position in market.

3.Since DLF PRAMERICA LIFE INSURANCE LTD is leading with several companies’

policies it should be easy for them to penetrate into the market and secure a good position if

they pay greater attention to the service part provided to their customer and thereby forming a

long and trusted relationship.

4.As seen from the survey that at present 70% of the customer are having insurance policy

out of which 87.5% of the customer are planning for new investments. So it can be a good

potential for the company and they should make an attempt to trap these customers.

5.43% of the customer is even ready to go for insurance if a service provider away from their

home is providing it. But intend they should provide good products and services. The

company should try to convince these customers and get them in its favor

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CONCLUSION

Our exhaustive research in the field of Life Insurance threw up some intresting trends which

can be seen in the above analysis. A general impression that we gathered during Data

collection was the immense awareness and knowledge among people about various

companies and their insurance products. People are beginning to look beyond LIC for their

insurance needs and are willing to trust private players with their hard earned money.

People in general have been impressioned by the marketing and advertising campaigns of

insurance companies. A high penetration of print , radio and Television ad campaigns over

the years is beginning to have it’s impact now.

Another heartning trend was in terms of people viewing insurance as a tax saving and

investment instrument as much as a protective one. A very high number of respondants have

opted for insurance for such purposes and it shows how insurance companies ahve been

successful to attract public money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires

improvement. But therein lies the oppurtunity for a relative new comer like

DLF PRAMERICA Life Insurance Company Ltd . LIC has never been known for prompt

service or customer oriented methods and DLF PRAMERICA Life can build on these factors.

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Policy Implication

Based on this study, a few suggestions for the life insurance industry in India regarding their

policy pricing strategies can be made. The price level should be well within the affordability

level of the customer. Flexibility and convenience of terms of payment must be followed as

per the requirements of the potential customer. The life insurance companies must ensure that

the price of the policy should not exceed its worth as anticipated by the buyer. Again, a

transparent comparison with the price levels of similar policies provided by the rival

companies should be made before the prospective buyers. A clear and simple price structure

should be provided by the selling companies to the customer that can be understood easily by

a lay man. Further, discounts and incentives should be included in the pricing structure in

order to attract buyers. There should not be any hidden cost which is most rampant in India.

Now, almost all the life insurance companies are inching towards a low-premium policy era

making the poorer rural sections eligible to possess the most elusive life insurance cover.

They are providing the costs and benefits of the policies and proper justification for the

relevant pricing. They are renovating the products to become worthy of their buying price.

They are also adding lot of add-on benefits to the products to attract the recession-hit cash-

strapped customers. Life insurance policy pricing strategy adopted by the insurers must

incorporate the customers‟ expectations along with their apprehensions in order to influence

their buying behaviour.

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SUGGESTIONS

.

There is a very good market for Insurance companies in India, companies must have

to spent money on Marketing Strategies.

The survey show’s less than 20% have their Insurance policy, more than 80% persons

don’t have a Insurance policy. This show’s a good opportunity for Insurance.

Companies must have to open their branches in every city and gives complete

information about company and company schemes.

Companies must have to convince the persons that, this is not a fraud company.

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BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED:

STUDY GUIDE- PRINCILES & PRACTICES OF LIFE /

GENERALINSURANCE,by AIMA.

Books published by INSURANCE INSTITUTE OF INDIA

LIFE-INSURANCE, by Mc GILL

INSURANCEWATCH.

MONEYOUTLOOK.

2. WEBSITES REFFERED:

WWW.CIFAINSURANCE.COM

WWW.MONEYOUTLOOK.COM

WWW.INSURANCE.IND.COM

WWW.dlfpramericalifeinsuarance.COM

o3. REPORTS/ARTICLES REFFERED:

REPORT: ISSUES & CHALLENGES FACING THE INSURANCE

INDUSTRY….Dec2005.

BRIEF PROFILE OF LIC, INDIA…Dec 2006.

REPORT: COPING WITH COMPETITION…Jan2007

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APPENDIX

QUESTIONNAIRE

QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. YOUR MONTHLY INCOME?

a)<4k b)4k-8k c)8k-12k d)12k-16k

e)Other_____(Specify

3. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

a) FIXED ASSETS

b) BANK DEPOSITS

c) JEWELLERY

d) SECURITIES, i.e. Bonds, MFs

e) SHARES

f) INSURANCE

4. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

5. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

6. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

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b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) DLF Pramerica

g) ANY OTHER ________( Specify)

7. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY? (Please Tick)

a) <5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

(Specify)

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

(RANK THEM)

a) LOW PREMIUM

b) LARGER RISK COVERANCE

c) MONEY BACK GUARNTEE

d) REPUTATION OF COMPANY

e) EASY ACCESS TO AGENTS

f) ANY OTHER _________ (Specify)

9. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE COVER?

(RANK THEM)

a) COVER FUTURE UNCERTAINITY

b) TAX DEDUCTIONS

c) FUTURE INVESTMENT

d) ANY OTHER _________ (Specify

10. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

11. DO YOU PAY TAXES?

YES NO

12. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

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TRAINING REPORT 2013

a) LIC

b) NSC

c) BONDS

d) PPF

e) PF

f) EPF

13. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

a) AFTER 25 Yrs

b) AFTER 35 Yrs

c) AFTER 45 Yrs

d) ANYTIME

14.HOW WOULD YOU RATE INDIAN INSURANCE COs?

a) RIGID PLANS

b) NON-USER FRIENDLY

c) UNSATISFATORY SREVICES

d) NON-AGGRESSIVE

e) SATISFACTORY

f) GOOD

g) VERY GOOD

15. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM

THE CITY OFFERS BETTER SERVICE & PRODUCTS?

a) YES

b) NO

c) UNCERTAIN

16. ARE YOU SATISFIED WITH THE POLICY?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

17. ARE YOU SATISFIED WITH THE SERVICE AGENT?

a) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

THANK YOU

66

TRAINING REPORT 2013

NAME:_________________________

ADDRESS:______________________

______________________________

OCCUPATION:__________________

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