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SURVEY ON LIFE INSURANCE PRODUCT AT CHATHAMSAW MILL
Submitted By :TANAMURUGANMBA [INSURANCE MANAGEMENT]
PONDHICHERRY UNIVERSITY
Supervised By:
External Guide: Internal Guide:
Mr.N.C Saravanan{IFS} Dr. Deputy conservator of forest), Faculty,chatham
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ACKNOWLEDGEMENT
I
TABLE OF CONTENTS
Introduction of Insurance:
Insurance , in law and economics , is a form of risk management primarily used to
hedge against the risk of a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium ,
and can be thought of as a guaranteed and known small loss to prevent a large,
possibly devastating loss. An insurer is a company selling the insurance; an insured
or policyholder is the person or entity buying the insurance. The insurance rate is a
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factor used to determine the amount to be charged for a certain amount of insurance
coverage, called the premium . Risk management , the practice of appraising and
controlling risk, has evolved as a discrete field of study and practice.
Definition:
Insurance is a contract between the insurer and the insured under which the
insurer undertakes to compensate the insured for the loss arising from the risk
insured against. In consideration, the insured agrees to pay a premium regularly. The
person whose risk is insured is called Insured or Assured. The person who
agrees to compensate the loss arising from the risk is called the Insurer or
Assurer or Underwriter.
Thus, the concept Premium implies that it is the consideration paid by the
insured to the insurer for the risk undertaken by the latter. Premium is usually
required to be paid in cash and advance payment of the premium is a condition
precedent to the creation of a binding contract of insurance.
The term Assurance is applied to contracts, where the risk insured against is
certain to happen but the time of its happening is uncertain. Thus, the risk insured
against death is a contract of assurance. The instrument containing the contract of
insurance is called a Policy . The thing or property which forms the basis of
insurance is called the subject matter of insurance. The interest of the assured in
the subject matter is called the insurable interest.
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Classification of Insurance:
Insurance can be classified into two broad categories
A. Life insurance
B. Non-life insurance
The Non-life insurance can be classified further into General insurance and
Miscellaneous Insurance. The following are the four kinds of General insurance:
1) Marine insurance
2) Fire insurance
3) Personal Accident insurance
4) Vehicle insurance
The Miscellaneous insurance can be classified in to:
1) Fidelity Guarantee insurance
2) Crop insurance
3) Burglary insurance
4) Flood insurance
5) Cattle insurance
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6) Cash in transit insurance.
These are discussed briefly:
1) Life Insurance
Life insurance is a contract whereby the insurer in consideration of a
premium paid either in a lump sum or in periodical installments undertakes to pay an
annuity or certain sum of money, either on the death of the insured or on the expiry
of a certain number of years, whichever is earlier.
2) Marine Insurance
Marine insurance is a contact of insurance under which the insurer
undertakes to a indemnify the insured against losses incidental to marine adventure.
It may cover loss or damages to the ship, cargo, freight, vessels or any other subject
of a marine adventure.
3) Fire Insurance
Fire insurance is a contract o agreement between the insurer and the
insured whereby the insurer undertakes to indemnify the insured for destruction of
or damage to property caused by fire or other specified perils during an agreed
period of time, in return for payment of a premium in lump sum or by installments .
4) Motor Vehicle Insurance
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Motor vehicle insurance falls under General insurance. Its importance
increasing day to day. In Motor insurance the owners liability to compensate people
who were killed or injured through the negligence of the motorists or drivers is
passed on to the insurance company. Motor insurance business is the largest single
section of accident insurance, if judged by premium income, but this relates to motor
business as a whole.
5) Personal Accident Insurance
Personal accident insurance is a contract of insurance. It provides an
absolute protection against death or disability arising solely and directly from
accident caused by violent external and visible means.
6) Fidelity Guarantee Insurance
Fidelity guarantee insurance falls under the miscellaneous class of
insurance. This is the type of contract of insurance and also a contract of guarantee
to which general principle of insurance apply. Fidelity guarantee does not mean the
guarantee of the employees honesty. But it guarantees the employer for any
damages or loss resulting from the employees dishonesty or disloyalty. The insurer
is liable to compensate the said loss to the employer as prescribed by the contract.
7) Crop Insurance
A contract of crop insurance is a contract to provide a measure of
financial support to farmers in the event of a crop failure due to drought or flood.
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This insurance covers all risks of loss or damages relating to production or rice,
wheat, millets, oil, seeds and pulses etc. Insurance of all crops all risks of loss or
damage has not yet found a beginning in our country.
8) Burglary Insurance
Burglary insurance falls under the classification of insurance of
property. In the case of a burglary policy, the loss or damages of household goods
and properties and personal effects due to theft, larceny, burglary, housebreaking
and acts of such nature are covered. The actual loss is compensated.
9) Cattle Insurance
A contract of cattle insurance is a contract whereby a sum of money is
secured to the assured in the event of death of animals like bulls, buffaloes, cows
and heifers. It is a contract against death resulting from accident, disease,
parturitions or pregnant condition as the case may be. The insurer usually undertakes
to pay the excess sum in the event of loss.
10) Cash in Transit Insurance
Cash in transit insurance is one of the contracts of insurance which
falls under the category of miscellaneous insurance. This form of insurance covers
to the insured against any loss in the event of money or cash being stolen from his
business premises or while it is being carried from or to the bank. The scope of cash
in transit insurance is important to any business as large sum of money are drawn
from banks to pay wages and to meet the day to day expenses.
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Company Profile:
About Chatham saw mill
The Govt. Saw mill, Chatham was established in the year 1883 with the second hand
imported machines with the primary objective to meet the local requirement of sawn
timber for constructional works. The mill was taken over by the Andaman Forest
Department in the year 1912 and during the Second World War; its working got
completely paralised due to the bombing by the Allied Forces. However, after the
Second World war, the working of the mill was revived to meet the continued need
of sawn timber of the islanders for constructional purposes and the requirement of
the sawn timber of the Islanders further increased manifold after the settlement of
people from the erstwhile East Pakistan, Sri lanka , Burma and different states of the
country during the 50s and 60s.
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All the major timber trees ( padauk, Marble wood , Chooi, sagwan, Black Chuglam,
Thingam, toungpeing, pyinma, Gurjan, koko,Mohwa, Badam, white Chuglam,
lalchini, Jungliaam, yewji, Nabbe, Red Dhup, Lamba pathi, Thitpock,Didu) of
Islands are used as raw material in the mill. The entire production of sawn timber in
the mill is sold under the coverage of an Administered for furniture making,
construction purpose. The export of timber from the Islands to main land is strictly
prohibited.
History
The legacy of Chatham began in the year 1789, when Lt. Archibald Blair landed
here with the aim to establish a Naval base. He started the survey from Chatham
Island for establishing the British footholds in the Islands. Thus, Port Blair became
the starting point of various activities to develop the Islands as a safe place to deport
hard-core convicts and to develop the Harbour base. The 100 mtrs long Chatham
Bridge connects Port Blair with Chatham Island. This historic bridge was initially
constructed out of timber. Later, it was renovated to o modern bridge with concrete
structures, which exists today.
Location and site:
The Chatham Sawmill located near the Port Blair town, about 5 kmfrom the Airport , at 1141 N latitude and 9243 Longitude with an area of 7.3 ha
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has enough to share in the backdrop of the colonial legacy and the history that
shaped the Andaman and Nicobar Islands.
Banker:The 6 major banks with which Chatham Sawmill deals with
are as follows:
State Bank of India
Syndicate Bank
Axis Bank
Punjab Bank
UTI Bank
Canara Bank
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Day to day work:
The functioning of the mill is organized with the help of various section. The log
depot segregates the logs received from the forests and feeds them into the mill
,while the mill section performs the conversion of round logs into various sizes. The
Timber processing unit carries out the seasoning and preservative treatment of sawn
timber to increase its longevity. Yard section handles the converted Sawn timber aswell as their sales. The other units such as Construction unit, Mechanical unit , Saw
Doctoring unit, Electrical unit, Dispensary, Canteen and security etc are working in
unison to ensure the smooth functioning of the Mill.
Plant and machinery:
The Mill is equipped with old imported machinery. Their
efficiency has gone down over the years due to normal wear and tear, as inevitable
to those old machines. At present the mill at Chatham has the following plant and
Machinery:
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1) 72 BRAND HEADRIG- Main Breakdown Machine( make Stenner of
Trivertion, England) installed in 1984 replacing the original 8 BRAND
HEADRIG. and its cost Rs 40 lakhs.
2) 54BAND HEADRIG- Stand-bye breakdown Machine, ( make-Grand
Foundary, Patiala) installed in 1974/75 and its costs Rs 24 lakhs.
3) EDGER MACHINE- Edging the slabs (Make- Sandeep Industrial Co.,
Ludhiana) installed in 2000-01 and its costs 55 lakhs.
4) 54BAND RE-SAW- Re sawing of sawn timber (Make- Sandeep Industrial
Co., Ludhiana) installed in 2000-01 and its costs 45 lakhs.
5) 48BAND RE-SAW- Re sawing of sawn timber ( make Stenner of
Trivertion, England) installed in 1956-57 and its costs 41 lakhs.
6) 42BAND RE-SAW- Re sawing of sawn timber ( make Stenner of
Trivertion, England) installed in 1956-57 and its costs 41 lakhs.
7) BUTTING BENCHES- End cutting (Make- locally fabricated) installed in
1956-57,and cost Rs 51 lakhs.
8) BRAND SAW SHARPENER-(MAKE- Sandeep Indusrial CO., Ludhiana)
installed in 2003-2004.
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Infrastructure:
M.L Barakuda : 1 No.
Truck (Leyland) : 2 Nos.
Mini Truck : 1 No.
Crane : 1 No.
Fork lift : 1 No.
Jeep (Diesel) : 1 No.
Jeep ( Maruti) : 1 No.
Ambulance ( Donated under MPLAD) : 1 No.
Details of Regular staff and Industrial employees:
A. Regular staff 135B. Industrial employees
i)Skilled/Technical 248 ii)Regular Mazdoors 307 iii)Daily Rated Mazdoors 41
Total 596Grand Total(A+B) 731
Revenue and Expenditure (Rupees in Lakhs):
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YEARS REVENUE
{RUPPEES I N LAKH}
EXPENDITURE
{RUPPEES I N
LAKH}
200-01 718 946
2001-02 591 892
2002-03 591 884
2003-04 526 881
2004-05 265 994
2005-06 407 903
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Organisation structure
of Chatham Sawmill
Organization structure:
Organization structure is the frame work within which the company grows. A
structure should be flexible to admit changes whenever needed. It is a diagrammatic
representation of the various positions in the enterprise and the formal relationship
among them.
Organization structure is a pattern in which various parts are interrelated or inter
connected. The structure depicts the relationship among various positions and
activities.
The top management of the company consists of the Chairman, Managing Director
and Chief Executive Officer. The function is established over all long term goals and
broad policies of the company including the master budget.
The middle management of the company comprises of departmental heads such as
Production department, Finance department , it has General Manager, Assistant
General manager,. Under marketing management it has manager and senior
executive officer and in human resource department it has HR manager, senior
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Section/Units
1. Log Depot Deals with raw material (logs)
2. Saw Mill Deals with the conversion of logs.
3. Saw Doctoring Deals with the maintenance of SawBlades.
4. Timber Yard Storing and sales of sawn timber
5. Sale Counter, VijayBaugh
Sale of Sawn Timber on retail basisto individual consumers.
6. Mechanical Workshop Look after all machinery and attendsto mechanical work of other divisions also.
7. Electrical Unit Looks after electrical works of themill and maintains the electricitysupply of entire Chatham Islands. Italso maintains the stand bygenerator (248 kw) of the Mill andattends to electrical works of other divisions also.
8. Marine Workshop Maintains t he marine crafts of thedivision.
9. Building ConstructionUnit
Maintains all the building and Jettiesof Forest Department in Chatham.
10. Timber Treatment Unit Treatment of timber both chemicallyand by Seasoning (about 600 cumeach annually)
11. Wood Workshop Makes furniture required for ForestDepartment and concentrates onutilizing ill waste to the possibleextend.
12. Vanakriti Sale counter for Wooden Souvenirsand Handicrafts Items made out of Padauk and other OrnamentalWoods of Andamans
13. Department Canteen Caters to Mill workers withnutritious diet at concessional rates
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(a statutory obligation also).
14. Chatham Dispensary Provides First aid services to Mill
workers (A statutory obligationalso).
15. Forest Labour Club Gives recreational facilities toworkers.
16. Security Wing Looks after the security of the MillDivision.
Key person of Chatham saw mill:
Mr N.C Saravanan [IFS} Deputy conservator of Forests
Mr Gopal Singh Assistant mill manager
Mr. Viswanath Gope Production manager
Mr. Vijay Nayre Assistant Constructional Engineer
Mr. Bala Subramani Assistant Electrical Engineer
Mrs. Lata Hegde Prasad Forest Ranger{ Chatham }
Mr.P.S.Viswadevan Forest Ranger{ Yard }
Mr. Deepak Johnson Superintendent of timber treatment
plantMr. Viswanath Gope Mechanical Engineer
Miss. Lalitha Forest Ranger{ Log depot }
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Departmentation
It is the process of grouping individual jobs into departments. It involves grouping
of activities and employees into departments so as to facilitate the accomplishment
of organisation objectives.
Various departments:
Finance departments
Production department
Human Resource department
FINANCE DEPARTMENT:
Finance is everything. Nothing will move without adequate support by finance. The
role of finance department is like is a brain of body.
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Finance department of Chatham Saw mill takes care of the following:
Managing the day-to-day cash flows of the company
Compilation of the financial needs of the company
Co-ordination of various departments and branches regarding their financial
requirements.
Co-ordination with the bankers of the company.
Interacting with auditors for finalization of the company.
Reporting the management regarding the financial health of the company.
Fulfilling various accounting standards
HUMAN RESOURCE DEPARTMENT:
Man management plays a vital role in functioning of any company. The Chatham
saw mill human resource department takes care of the following functions:
Selection and posting of right personnel for right job is the foremost activity
of the HRD
Assignment of job roles.
Taking care of the needs of the staff personnel.
Co-ordination and movement of personnel with all the departments.
An effective HR will take the company to glory.
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Attendance maintaining :
Each and every person should sign in the attendance register file, it will be checked
for the regularity of the employees at a regular interval of one month.
Personal Data maintaining :
Every employees personal data is maintained. It contains their educational
qualification, experience, memos, certificate and performance for their appraisal,
disciplinary actions etc. Each and every employee should sign this.
Manpower Planning :
Recruitment
Selection
Training
Promotion
Transfer
Dismissal
Labour welfare:
Provident fund
Gratuity
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Bonus
Incentive
Employee loan
PRODUCTION DEPARTMENT:
Production is the functional area responsible for turning inputs into finished outputs.
Through a series of Production processes. The production manager is responsible for
making sure that raw materials are provided and made into finished goods
effectively. He or she must make sure that work is carried out smoothly, and must
supervise procedures for making more efficient and more enjoyable.
The production and planning department will set standards and targets for each
section of the production process. The quantity and quality of products coming off a
production line will be closely monitored. In businesses focusing on lean
production, all employees will monitor quality at every stage of production , rather
than at the end as is the case for businesses using a quality control approach.
The stores department will be responsible for stocking all the necessary tools,spares, raw materials and equipment required to service the manufacturing process.
Where sourcing is unreliable, buffers stock will need to be kept the use of
computerised stock control systems helps keep stocks at a minimal but necessary
level for production to continue unhindered. The above are the functions of
production department.
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Insurance Adopted bychatham saw mill
company
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Bima Gold
Introduction
Bima Gold is a Money Back type plan where total premiums paid under the
policy shall be paid back to the policyholder in installments at the specified
durations in case of survival and Sum Assured shall be paid in case of death during
the term of the policy irrespective of whether or not any survival benefits have been
paid earlier.
Since this is a high risk cover low premium policy, it is highly recommended for
young people with high responsibility with lower income. Though the maturity
benefits are not attractive, the short term financial needs of the family in case of
premature death will be taken care of . Being a Money Back type Plan, the money
becomes available at regular intervals. The amount my be used for short term
financial needs like, purchase of household durables or for childrens education. Or
the amount received as survival benefit can be re invested in any secured investment
so that the policy holder will have a substantial lumpsum amount at the end of the
term of the policy.
Bima Gold has been introduced to celebrate the 50 Golden years of LIC and will
only be available upto 31st March, 2006 .
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Benefit:
Survival Benefit
Payable at the end of the specified durations provided the policy is in full force as
given below:
For policy term 12 years: 15% of the Sum Assured under Basic Plan at the end of
each 4th & 8th policy year.
For policy term 16 years: 15% of the Sum Assured under Basic Plan at the end of
each 4th, 8th &12th policy year.
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For policy term 20 years: 10% of the Sum Assured under Basic Plan at the end of
each 4th, 8th, 12th & 16th policy year.
Maturity Benefit :
Payment of total amount of premiums paid (excluding extra/optional rider
premiums, if any) plus Loyalty Additions, if any, less the amount of survival
benefits paid earlier in case of Life Assured surviving to the end of the term.
Auto-cover facility:
If, at least two full years premiums have been paid in respect of this policy, any
subsequent premium be not duly paid, risk (death) cover shall continue for a period
of two years from the date of First Unpaid Premium .
Mode Rebate:
The following table shows the rebate available on the mode of premium payment.
Mode RebateYearly 2.0 % of tabular premiumHalf-Yearly 1 % of tabular premium
Sum Assured Rebate:
The following table shows the rebate available on the Large Sum Assured
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Sum Assured Rebate per 1000 S.A
0 to 49,999 Nil
50,000 to 99,999 Rs.2.50
1,00,000 to 1,99,999 Rs.7.50
2,00,000 and above Rs.10.00
Death Benefit:
Payment of an amount equal to Sum Assured under the Basic Plan immediately on
death of the Life Assured during the term of the policy provided the life cover is in
force.
Premium payment:
Regular Premium payable throughout the policy term .The sample premium rates for
the basic plan are as under: -
Age Annual Premium per 1000 SA
12 16 2015 65.70 56.90 41.75
20 66.50 57.45 42.25
25 67.00 58.00 42.85
30 68.05 59.05 44.00
35 70.85 61.55 46.45
40 76.05 65.90 50.40
45 84.25 72.40 56.15
50 96.10 81.60 64.25
55 110.65 93.10 74.45
60 128.50 - -
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Eligibility condition and other
restrictions:
FOR BASIC PLAN
Minimum Age at entry 14 - 63 years
Maximum Age at maturity 75 years
Term of the Policy 12, 16 and 20 years.
Minimum Sum Assured Rs. 40,000 /-
Maximum Sum Assured No limit (Sum Assured will be in multiples of Rs.5,000 /- only.)
Mode Yearly, Half-yearly, Quarterly, Monthly or through salary deductions.
REBATES / EXTRA FOR MODE OF PREMIUM PAYMENT AND HIGHSUM ASSURED
Mode Rebate / Extra
Rebates are available at the following rates:
Yearly mode 2% of tabular premium
Half-yearly mode 1% of tabular premium
Quarterly and SSS modes NIL
Monthly mode 5% extra on tabular premium
High Sum Assured Rebates:
Less than Rs. 50,000 NIL
Rs. 50,000 and Less than Rs.1Lakh NIL
Rs. 50,000 and Less than Rs.1Lakh Rs.2.5 per thousand Sum Assured
Rs. 1 Lakh and Less than Rs.2Lakh Rs.7.5 per thousand Sum Assured
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Rs. 2 Lakh and above Rs.10 per thousand Sum Assured
Jeevan Saral
Introduction
Jeevan Saral is a new-generation plan, which primarily covers risk and has a blend
of innovative flexible features. It is a unique plan having good features of the
conventional plans and the flexibility of unit-linked plans. To the policy holder it
provides higher cover, a smooth return, liquidity and a lot of flexibility. This plan
will cater to those who perceive insurance more as financial protection and wish to
make provision for future contingencies.
Under this plan, death cover will be same irrespective of age at entry and term but
the sum payable at maturity will differ for different entry ages and terms. The Plan is
ideally suited to those who may need money for life contingencies, education of
children, salaried persons as also for those with uncertain income as there is a
facility of auto cover in case premium due remains unpaid for 1 year, after 3 years
premiums have been paid. Auto cover will continue for a period of 1 year.
Benefits
Provided the policy is in full force :
Maturity Benefits :
Maturity Sum Assured + Loyalty Additions, if any
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Death Benefits :
250 times the monthly basic premium + Return of premiums paid, excluding
extra/rider premium and first year premium + Loyalty Addition if any.
Term Rider benefit :
The choice of additional death cover is also available under the plan
as a Term Assurance Option. An amount equal to the Term Assurance Sum
Assured is payable on death during the policy term.
Accident Benefit Option :
Accident benefit is available up to a maximum of Rs. 25 lakhs. This
is inclusive of the maximum limit of Rs. 25 lakhs placed as other life
insurance plans.
Mode Benefit :
The following table shows the rebate available on the mode of premium
payment.
Mode Rebate
Yearly 2%
Half-Yearly 1%
Quarterly / Monthly Nil.
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Features
Minimum Age at Entry - 12 yrs (Completed)
Maximum Age at Entry - 60 yrs (nearer Birth Day)
Maximum Maturity Age - 70 yrs
Minimum Premium - Rs. 250/- per month for entry age up
to 49 years and Rs. 400/- per month for entry age 50 years and above.
Maximum Premium - 10,000 per month (In Multiple of Rs.
50)
Modes Allowed - Yearly, Half yearly Quarterly and
monthly under Salary Saving Scheme.
Loyalty Addition after 10 years.
Loan available after payment of 3 years premiums.
Liberal Special Surrender Value after 3 years premiums have been paid.
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Partial withdrawals from 4 th year onwards in case of high premium policies.
Money back policy
Features:
Unlike ordinary endowment insurance plans where the survival benefits are payable
only at the end of the endowment period, this scheme provides for periodic
payments of partial survival benefits as follows during the term of the policy, of
course so long as the policy holder is alive. .
In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured
becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued
bonus become payable at the 20th year. .
For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomes
payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued
bonus become payable at the 25th year. .
An important feature of this type of policies is that in the event of death at any time
within the policy term, the death claim comprises full sum assured without
deducting any of the survival benefit amounts, which have already been paid.
Similarly, the bonus is also calculated on the full sum assured
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.
Benefits:
Introduction:
Insurance Regulatory & Development Authority (IRDA) requires all life insurance
companies operating in India to provide official illustrations to their customers. The
illustrations are based on the investment rates of return set by the Life Insurance
Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not
intended to reflect the actual investment returns achieved or may be achieved in
future by Life Insurance Corporation of India (LICI) . .
.
For the year 2004-05 the two rates of investment return declared by the Life
Insurance Council are 6% and 10% per annum. .
Product summary .
These are Money Back type Assurance plans that provide financial protection
against death throughout the term of plan along with the periodic payments on
survival at specified durations during the term. .
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary
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deductions as opted by you throughout the term of the policy, or till the earlier
death. .
Bonuses:
This is a with-profit plan and participate in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of
each financial year. Once declared, they form part of the guaranteed benefits of the
plan. Final (Additional) Bonus may also be payable provided policy has run for
certain minimum period. .
Death Benefit: :
The Sum Assured plus all bonuses to date is payable in a lump sum upon the death
of the life assured during the policy term irrespective of the Survival benefit
/benefits paid earlier.
Survival Benefits:
The percentage of Sum Assured as mentioned below will be paid on survival to the
end of specified durations :
% of Sum Assured paid at the end of specified duration
DurationPlan
75 93
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5 20% 15%
10 20% 15%
15 20% 15%
20 40% 15%
25 - 40%
All bonuses declared upto the maturity date will also be paid along with the final
survival benefit. .
Market plus policy
This is a unit linked deferred pension plan. You can take the plan with or without
risk cover. You can also choose the level of cover within the limits, which will
depend on whether the policy is a Single premium or Regular premium contract and
on the level of premium you agree to pay. .
The allocated premiums will be applied to purchase units as per the Fund type
chosen. Your Unit Account will be subject to deduction of charges as specified in
the Policy Conditions. The value of the units in the Unit Fund may increase or
decrease, depending on the investment return of the assets representing the chosen
Fund.
Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or
quarterly intervals over the term of the policy. The minimum annual premium will
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be Rs.5,000/- increasing thereafter in multiples of Rs.1,000/-. Alternatively, a Single
premium can be paid subject to a minimum of Rs.10,000 and thereafter in multiples
of Rs.1,000.
Benefit
A) Death Benefit:
If the Life cover is opted for, the Sum Assured under the Basic Plan together with
the Fund Value of units either as a lump sum or as pension. In case the policy is
taken without life cover, then the Fund Value of the units held in the Policyholders
Unit Account shall be payable either as a lump sum or as a pension.
The amount of pension will depend on the then prevailing immediate annuity rates
under the annuity option chosen.
B) Benefit on Vesting:
On your surviving to the date of vesting, the Fund Value of the units held in your
Unit Account will compulsorily be utilised to provide a pension based on the then
prevailing immediate annuity rates under the relevant annuity option. However, you
may opt to commute up to one-third of the Benefit to be paid as a lump sum.
Further, you may choose to purchase pension from LIC or other life insurance
company.
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Accident Benefit Option: If you have opted for life cover, you may opt for Accident
Benefit equal to life cover subject to minimum Rs. 25,000 and maximum Rs. 50
lakh (taken all policies with LIC of India and other insurers). In case of death by
Accident, an additional sum equal to Accident benefit will be payable.
Eligibility Conditions And Other Restrictions:
Basic Plan:
Minimum Age at entry : 18 years completed
Maximum Age at entry : 70 years (age nearer birthday). However if life cover is
opted for, then 65 years
Minimum Age at vesting: 40 years (age last birthday)
Maximum Vesting Age: 75 years (age last birthday)
Minimum Deferment Term: 5 years
Minimum Sum Assured : Rs. 25,000 for Single premium, Rs. 50,000 for Regular
premium
Maximum Sum Assured :
Single Premium - Equal to single premium
Regular Premium - 20 times of the annualized premium
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Need of the Study
The study was mainly undertaken to analysis the employees attitude for
knowing the need and wants of the Insurance Policy at Chatham saw mill.
The study was the way for the further improvement in Insurance Policy of
Chatham saw mill.
The study was useful to understand the employee awareness about insurance
policy at Chatham saw mill.
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Research Methodology: -
Research is one of the most important parts in the survey to collect information and
knowledge. Marketing research is defined as the systematic design, collection,
analysis, and reporting of data and findings relevant to a specific marketing situation
facing the company.
Problem and Research Objective :-
Our main objective was to find out
To the assess the Insurance related procedure,
To identify the insurance gap.
To find out employees satisfaction about insurance policies.
The main problem was how to find out the insurance agent person in the company.
To get all this information a thorough planning had to be done, so I first started with
designing the questionnaire for the respondent whom I was going to target and to
know about their investment pattern. The main things to be known from therespondent were:
1. There Annual turnover
2. Who are there bankers
3. who are your insurer
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4. what are the production of the mill
Research plan -The research process depends upon developing the most efficient plan for gathering
the needed information. Designing a research plan calls for decisions on the data
sources, research approaches, research instruments, sampling plan, and contact
methods.
Data source :-
For this project both primary and secondary data were the most valuable source of
information.
Secondary data: -
Secondary data provide a starting point for research and offer the valuable source of
information.
The secondary data was the most important source for my project because my first
aim was to find out the how many people having the insurance in the mill and ;what
are benefit getting from insurance company so for this reason I started collecting the
some sources which can help me in finding out the desired information about the
insured person.
The some sources are as follows:-
Internet
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Company Records
Office superintend in mill.
Primary data :-
Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
People from industries
Personal interview
Research Approaches :-From the two data source which I have mention above secondary data are the easiest
way to gather and the cost of collecting this data is very low and easily available
from the respective association. And I started by collecting this directory from the
various sources, because at the starting point of the survey this information play a
important part for me and this help me to short out the people which, I can meet
with them to collected more information about them or who are my target people.
After collecting the secondary data or information from the secondary sources then I
started collecting from primary sources to narrow down my research. There are
basically four ways to collect data.
Survey Research: - This method was the most appropriate way
to collect data. And I have used this method in my project to
find out the company need by identifying the people from mill.
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Observational Research:- This method was not used by me in
my project ,because this survey have no use for me
Focus-group Research: - This method is also not used by me in
my survey.
Behavioral data: -This method was also not used by me in my
survey.
Research Instruments :-
There is various way of research instrument of collecting primary data, the various
methods are:-
1. Questionnaires.
2. Psychological tools.
3. Mechanical Devices.
4. Qualitative Measures.
From the above mentioned research instruments I had used only Questionnaires
technique to find out the various information about company such as their turnover,
who are the insurer, what are the benefit take from insurance, why are the insurance
policy taken. And this was the technique which I felt the best way to extract
information about the company.
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Sampling Plans:-After collecting entire data and deciding on the research approach and instruments,
now I had to decide on the sampling plan which was one of the important task,
because from the bunch of people I had to select only those people ,whom I can
target from now onward .There are two way of sorting the data.
o Sampling Unit : - who is to be surveyed? And now my task
was to define the target population, which will be sampled
from the number of people.
o Sample Size : - large sample give more reliable result than
small sample, so for this reason I had taken around 20 people
to whom I should focus upon, because my target was only 13 .
Contact Methods:-
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Once the client had been decided now my task was how to contact them ,and for me
there only two ways of contacting them .
1. Personal Interview: - this method was the most appropriate
way of survey, because by personal interview I came to know
their feeling about the Chatham saw mill. Their personal
behavior and many more things.
2. Telephone: - This method is not used by me my project,
because I couldnt gather maximum information .
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Limitation of study :
Difficult the collect the data with in a short period of time.
They were not giving same data for academic purpose also due to privacy.
They were not allowing to meet various executives of the company.
The internet information can be irrelevant.
The respondent will be limited so cannot be collect the maximize
information.
The respondent may be biased.
Due to language problem, it is possible that respondents are not be able to
understand the questionnaire and can cause misleading result.
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ANALYSIS DATA AND
INTERPRETATION
1) Are you taking insurance?
Option Percentage of Respondent
Yes 75%
No 25%
Total 100%
2) What are the Insurance (life insurance or General insurance ) taken?
Option Percentage of Respondent
Life insurance 100%
General insurance 0%
Total 100%
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3) What life insurance policy is taken?
Option Percentage of Respondent
Bima gold policy 25%
Money back policy 25%
Jeevan saral policy 25%
Market plus policy 25%
Total 100%
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4) Are you satisfied with Life insurance policy?
Option Percentage of Respondent
Yes 85%
No 15%
Total 100%
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5) Do you use Intermediary / Broker for Risk cover?
Option Percentage of Respondent
Yes 40%
No 60%
Total 100%
6) What are the products manufactured?
Option Percentage of Respondent
Sawn Timber 99%
Furniture 1%
Total 100%
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7) How is insurance helpful to you?
Option Percentage of Respondent
For my familys social security 36%
For medical aid 22%
For savings and investment 38%
Others 4%
Total 100%
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8) What is the benefit getting from insurance?
Option Percentage of Respondent
For Worker Compensation benefit 73%
For Machine Compensation benefit 17%
For Tax Concession benefit 10%
Total 100%
9) What are Expenses of Chatham saw mill?
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Option Percentage of Respondent
For Utilities 43%
For Insurance 20%
For Rent 12%
For Payroll 25%
Total 100%
10) What are the labour welfare activities?
Option Percentage of Respondent
Provident fund 45%
Gratuity 40%
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Bonus 15%
Total 100%
11) Do you use recycled in all or some of your product?
Option Percentage of Respondent
Yes 40%
No 60%
Total 100%
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OBSERVATION AND FINDINGS
75% of respondent are take the insurances and remaining 25% of respondent
are didnt take the insurance.
90% of respondent are use the life insurance, which is the highest percentage
of user the general insurance to show the Asses of insurance.
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25% of respondent are using the Bima gold policy,25% of respondent are
using the Money back policy, 25% of respondent using the Jeevan saral
policy.where the rest are using Market plus policy.
85% of respondents are satisfied with the Life insurace policy because LIC
provide the compensation of his life. 15% of respondent didnt satisfy with
the life insurance.
40% of respondents are using Intermediary /broker for the risk covered and
balance 60% of respondents are using intermediary / broker for the risk
covered.
Only few employees were having awareness relating to insurance .
99% of sawn timber was produced by Mill and remaining 1% produced for
furniture.
They doesnt take General insurance policies like fire insurance, personal
accident policy, motor policy, medical claim policy.
The mill was several benefit getting from Insurance such as 73% for worker
compensation benefit, 17% for worker compensation benefit and remaining
10% for Tax concession benefit.
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The mill having some expenses such as 43% of expenses for utilities, 20% of
expenses for insurance , 12% of expenses for rent, and 25% for payrolls.
Suggestion
Now they are taking only LIC policies, The company if possible can increase
number of insurance policies and GIC policies also like Group insurance,
Machine insurance, Motor insurance etc.
It is found that there is no awareness of some of the employees to take the
insurance policies
BibliographyInternet Websites:
www.licindia.com
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www.licindia-market-plus.com
www.licindia-bima-gold.com
www.licindia-jeevan-saral.comwww.licindia-money-back.com
www.google.com
ANNEXURE
Questionnaire
PART-I
PERSONAL DETAILS:-
1 . Name of the Respondent:
2. Address:
3. Age
a. 18-20
b. 20-30
c. 30-50
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4. Marital Status
a. Married
b. Unmarried
5. No. Of .children
a. One
b. Two
c. Above two
6. Sex
a. Male
b. Female
7. Designation:
8. Years of Service:
a. 1-3 years
b. 3-6years
c. Above 6years
9. Scale of Pay:
a. Below 5000
b. Above 8000
c. Below 10,000
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13. What is the safety measure at the time of work?
14. What are the benefits to the employees?
a. Sickness Benefit
b. Disable Benefit
c. All the above
15. How many Shifts in the mill?
a. One
b. Two
c. Not applicable
16. Who is your Insurer?
17. Who is your Banker?
18. What percentage of your employee is male and female?
19. What is the Rank of the Chatham saw mill?
a. First rank
b. Second rank
c. Third rank
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PART II
1) Are you taking insurance?
2) What are the insurance taken by you?
a. Life insurance
b. General insurance
c. Both
3) Which life insurance policy is taken by you?
a. Bima gold policy
b. Money back policy
c. Jeevan saral policy
d. Market plus policy
4) Which General insurance policy are taken?
a. Group accident insurance
b. Health insurance
c. Plant insurance
d. Machinery
5) Are you satisfied with life insurance policy?
a. Yes
b. No
6) Are you satisfied with General insurance policy?
a. Yes
b. No
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7) Do you use intermediary/ Broker for risk cover?
a. Yes
b. No
8) What are the productions of mill?
9) What are benefits getting from Insurance?
10) What are expenses of Chatham saw mill?
11) What are the labour welfare activities?
12) Medical coverage.
a. Company pays 100% of cost
b. Company and employee share cost
c. Employee pays 100% of cost
d. This benefit not offered
13) Long term care Insurance.
a. Company pays 100% of cost
b. Company and employee share cost
c. Employee pays 100% of cost
d. This benefit not offered
14) Do you have claim so far?
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a. Yes
b. No
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