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PART-I

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Overall, the life insurance and ensi!n sect!r is set f!r ra id chan"es and "r!#th in the $ears ahead% &eliverin" service, 'uildin" trust and 'ein" inn!vative are (e$ areas in #hich an$ c!) an$ #ill have t! e*cel in !rder t! d! #ell in the l!n" r!ad ahead% &ifferent c!) anies #ill ta(e different a r!aches and it #!uld 'e )$riad !f s!luti!ns that #ill 'e f!und t! deli"ht the Indian cust!)er% &urin" the first art, I #as "iven c!) lete classr!!) trainin" a'!ut the vari!us unit lin(ed as #ell as the traditi!nal lans and s!luti!ns #hich the c!) an$ !ffers% +ater, Mar(et Research #as d!ne thr!u"h vari!us activities and tele,callin" #hich are discussed further in the re !rt% Activities led t! ractical e* !sure and tau"ht )e the as ects !f cust!)er dealin"% -inall$, interestin" c!nclusi!ns #ere dra#n !ut !f the data c!llected re"ardin" the A#areness !f -inancial .lannin" a)!n" the e! le in t!da$/s envir!n)ent% It #as "reat e* erience 'ecause sellin" an insurance r!duct de)ands a "reat deal !f c!nfidence and r!duct (n!#led"e%

INDUSTRY PROFILE

INDUSTRY PROFILE
The 'usiness !f life insurance in India in its e*istin" f!r) started in India in the $ear 1212 #ith the esta'lish)ent !f the Oriental +ife Insurance C!) an$ in Calcutta% The st!r$ !f insurance is r!'a'l$ as !ld as the st!r$ !f )an(ind% The sa)e instinct that r!) ts )!dern 'usiness)en t!da$ t! secure the)selves a"ainst l!ss and disaster e*isted in ri)itive )en als!% The$ t!! s!u"ht t! avert the evil c!nse3uences !f fire and fl!!d and l!ss !f life and #ere #illin" t! )a(e s!)e s!rt !f sacrifice in !rder t! achieve securit$% Th!u"h the c!nce t !f insurance is lar"el$ a devel! )ent !f the recent ast, articularl$ after the industrial era 4 ast fe# centuries 4 $et its

'e"innin"s date 'ac( al)!st 5666 $ears% +ife Insurance in its )!dern f!r) ca)e t! India fr!) En"land in the $ear 1212% Oriental +ife Insurance C!) an$ started '$ Eur! eans in Calcutta #as the first life insurance c!) an$ !n Indian S!il% All the insurance c!) anies esta'lished durin" that eri!d #ere 'r!u"ht u #ith the ur !se !f l!!(in" after the needs !f Eur! ean c!))unit$ and these c!) anies #ere n!t insurin" Indian natives% 7!)'a$ Mutual +ife Assurance S!ciet$ heralded the 'irth !f first Indian life insurance c!) an$ in the $ear 1286, and c!vered Indian lives at n!r)al rates% 7harat Insurance C!) an$ 912:5; #as als! !ne !f such c!) anies ins ired '$ nati!nalis)% The S#adeshi )!ve)ent !f 1:6<,1:68 "ave rise t! )!re insurance c!) anies% The United India in Madras, =ati!nal Indian and =ati!nal Insurance in Calcutta and the C!,! erative Assurance at +ah!re #ere esta'lished in 1:65%

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In 1:68, >industan C!,! erative Insurance C!) an$ t!!( its 'irth in !ne !f the r!!)s !f the ?!rasan(!, h!use !f the "reat !et Ra'indranath Ta"!re, in Calcutta%

The Indian Mercantile, @eneral Assurance and S#adeshi +ife 9later 7!)'a$ +ife; #ere s!)e !f the c!) anies esta'lished durin" the sa)e eri!d%

The .arlia)ent !f India assed the +ife Insurance C!r !rati!n Act !n the 1:th !f ?une 1:<5, and the +ife Insurance C!r !rati!n !f India #as created !n 1st Se te)'er, 1:<5, #ith the !'Aective !f s readin" life insurance )uch )!re #idel$ and in articular t! the rural areas #ith a vie# t! reach all insura'le ers!ns in the c!untr$, r!vidin" the) ade3uate financial c!ver at a reas!na'le c!st%

Some of the important mi e!tone! in the ife in!"ran#e $"!ine!! in In%ia are&

12<6B =!n life insurance de'uts #ith trit!n insurance c!) an$% 1286B 7!)'a$ )utual life assurance s!ciet$ is the first Indian !#ned life insurer% 1:12B The Indian +ife Assurance C!) anies Act enacted as the first statute t! re"ulate the life insurance 'usiness% 1:22B The Indian Insurance C!) anies Act enacted t! ena'le the "!vern)ent t! c!llect statistical inf!r)ati!n a'!ut '!th life and n!n,life insurance 'usinesses% 1:02B Earlier le"islati!n c!ns!lidated and a)ended t! '$ the Insurance Act #ith the !'Aective !f r!tectin" the interests !f the insurin" u'lic% 1:<5B 21< Indian and f!rei"n insurers and r!vident s!cieties ta(en !ver '$ the central "!vern)ent and nati!naliCed% +IC f!r)ed '$ an Act !f .arlia)ent, viC% +IC 5

Act, 1:<5, #ith a ca ital c!ntri'uti!n !f Rs% < Cr!re fr!) the @!vern)ent !f India% In!"ran#e !e#tor reform! In 1::0, Malh!tra C!))ittee, headed '$ f!r)er -inance Secretar$ and R7I @!vern!r R% =% Malh!tra, #as f!r)ed t! evaluate the Indian insurance industr$ and rec!))end its future directi!n% The Malh!tra c!))ittee #as set u #ith the !'Aective !f c!) le)entin" the ref!r)s initiated in the financial sect!r%

The ref!r)s #ere ai)ed at Dcreatin" a )!re efficient and c!) etitive financial s$ste) suita'le f!r the re3uire)ents !f the ec!n!)$ (ee in" in )ind the structural chan"es currentl$ under#a$ and rec!"niCin" that insurance is an i) !rtant art !f the !verall financial s$ste) #here it #as necessar$ t! address the need f!r si)ilar ref!r)sEF%

The In!"ran#e Re'" ator( an% De)e opment A"thorit( *IRDA+ The Insurance Act, 1:02 had r!vided f!r settin" u !f the C!ntr!ller !f Insurance t! act as a str!n" and !#erful su ervis!r$ and re"ulat!r$ auth!rit$ f!r insurance% .!st nati!naliCati!n, the r!le !f C!ntr!ller !f Insurance di)inished c!nsidera'l$ in si"nificance since the @!vern)ent !#ned the insurance c!) anies% 7ut the scenari! chan"ed #ith the rivate and f!rei"n c!) anies f!ra$in" in t! the insurance sect!r% This necessitated the need f!r a str!n", inde endent and aut!n!)!us Insurance Re"ulat!r$ Auth!rit$ #as felt% As the enactin" !f le"islati!n #!uld have ta(en ti)e, the then @!vern)ent c!nstituted thr!u"h a @!vern)ent res!luti!n an Interi) Insurance Re"ulat!r$ Auth!rit$ endin" the enact)ent !f a c!) rehensive le"islati!n% 8

The Insurance Re"ulat!r$ and &evel! )ent Auth!rit$ Act, 1::: is an act t! r!vide f!r the esta'lish)ent !f an Auth!rit$ t! r!tect the interests !f h!lders !f insurance !licies, t! re"ulate, r!)!te and ensure !rderl$ "r!#th !f the insurance industr$ and f!r )atters c!nnected there#ith !r incidental theret! and further t! a)end the Insurance Act, 1:02, the +ife Insurance C!r !rati!n Act, 1:<5 and the @eneral insurance 7usiness 9=ati!naliCati!n; Act, 1:82 t! end the )!n! !l$ !f the +ife Insurance C!r !rati!n !f India 9f!r life insurance 'usiness; and @eneral Insurance C!r !rati!n and its su'sidiaries 9f!r "eneral insurance 'usiness;%

In!"ran#e Se#tor Reform!


.ri!r t! li'eraliCati!n !f Insurance industr$, +ife insurance #as )!n! !l$ !f +IC% In 1::0, Malh!tra C!))ittee, headed '$ f!r)er -inance Secretar$ and R7I @!vern!r R%=% Malh!tra, #as f!r)ed t! evaluate the Indian insurance industr$ and rec!))end its future directi!n% The Malh!tra c!))ittee #as set u #ith the

!'Aective !f c!) le)entin" the ref!r)s initiated in the financial sect!r% The ref!r)s #ere ai)ed at creatin" a )!re efficient and c!) etitive financial s$ste) suita'le f!r the re3uire)ents !f the ec!n!)$ (ee in" in )ind the structural chan"es currentl$ under#a$ and rec!"niCin" that insurance is an i) !rtant art !f the !verall financial s$ste) #here it #as necessar$ t! address the need f!r si)ilar ref!r)s% In 1::1, the c!))ittee su')itted the re !rt and s!)e !f the (e$ rec!))endati!ns includedB Structure @!vern)ent sta(e in the insurance C!) anies t! 'e 'r!u"ht d!#n t! <6G% @!vern)ent sh!uld ta(e !ver the h!ldin"s !f @IC and its su'sidiaries s! that these su'sidiaries can act as inde endent c!r !rati!ns% 2

Competition .rivate C!) anies #ith a )ini)u) aid u ca ital !f Rs%1 'illi!n sh!uld 'e all!#ed t! enter the sect!r% =! C!) an$ sh!uld deal in '!th +ife and @eneral Insurance thr!u"h a sin"le entit$% -!rei"n c!) anies )a$ 'e all!#ed t! enter the industr$ in c!lla'!rati!n #ith the d!)estic c!) anies% Re'" ator( ,o%( The Insurance Act sh!uld 'e chan"ed% An Insurance Re"ulat!r$ '!d$ sh!uld 'e set u % C!ntr!ller !f Insurance, a inde endent In)e!tment! Mandat!r$ Invest)ents !f +IC +ife -und in "!vern)ent securities t! 'e reduced fr!) 8<G t! <6G% @IC and its su'sidiaries are n!t t! h!ld )!re than <G in an$ c!) an$ 9there current h!ldin"s t! 'e 'r!u"ht d!#n t! this level !ver a eri!d !f ti)e; art !f the -inance Ministr$, sh!uld 'e )ade

STATISTICS *INDIAN - .LO,AL+


This secti!n "ives the users i) !rtant and detailed statistics !f the Indian as #ell as the @l!'al insurance industr$% These statistics #!uld "ive i) !rtant insi"hts !f #here the res ective )ar(ets are headed f!r%

The "l!'al life insurance )ar(et stands at H1,<21%2 'illi!n #hile the n!n,life insurance )ar(et is laced at H:22%1 'illi!n%

The United States itself acc!unts f!r a'!ut !ne,third !f the H2110%5 'illi!n "l!'al insurance )ar(et and ?a an stands ne*t #ith a 26%52G share%

India ta(es the 20rd

!siti!n #ith US H:%:00 'illi!n annual

re)iu)

c!llecti!ns and a )ea"er 6%11G share%

Out !f !ne 'illi!n e! le in India, !nl$ 0< )illi!n e! le are c!vered '$ insurance%

IndiaIs life insurance re)iu) as a ercenta"e !f @&. is Aust 1%88 er cent% The inc!)e derived '$ @IC and its su'sidiar$ c!) anies thr!u"h invest)ent #as Rs%21:1%85 cr!re and the investa'le fund "enerated #as Rs%2210 cr!re in 1:::,2666%

Indian insurance )ar(et is set t! t!uch H2< 'illi!n '$ 2616, !n the assu) ti!n !f a 8 er cent real annual "r!#th in @&.%

NATURE OF INDUSTRY
The insurance industr$ r!vides r!tecti!n a"ainst financial l!sses resultin" fr!) a variet$ !f erils% 7$ urchasin" insurance !licies, individuals and 'usinesses can receive rei)'urse)ent f!r l!sses due t! car accidents, theft !f r! ert$, and fire and st!r) da)a"eJ )edical e* ensesJ and l!ss !f inc!)e due t! disa'ilit$ !r death% The insurance industr$ c!nsists )ainl$ !f insurance carriers 9!r insurers; and insurance a"encies and 'r!(era"es% In "eneral, insurance carriers are lar"e c!) anies that r!vide insurance and assu)e the ris(s c!vered '$ the !lic$% Insurance a"encies and 'r!(era"es sell insurance !licies f!r the carriers% Insurance c!) anies assu)e the ris( ass!ciated #ith annuities and insurance !licies and assi"n re)iu)s t! 'e aid f!r the !licies% In the !lic$, the c!) anies states

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the len"th and c!nditi!ns !f the a"ree)ent, e*actl$ #hich l!sses it #ill r!vide c!) ensati!n f!r, and h!# )uch #ill 'e a#arded% The re)iu) char"ed f!r the !lic$ is 'ased ri)aril$ !n the a)!unt t! 'e a#arded in case !f l!ss, as #ell as the li(elih!!d that the insurance carrier #ill actuall$ have t! a$% In !rder t! 'e a'le t! c!) ensate !lic$h!lders f!r their l!sses, insurance

c!) anies invest the )!ne$ the$ receive in re)iu)s, 'uildin" u a !rtf!li! !f financial assets and inc!)e, r!ducin" real estate #hich can then 'e used t! a$ !ff an$ future clai)s that )a$ 'e 'r!u"ht% There are t#! 'asic t$ es !f insurance carriersB &irect and Reinsurance% &irect carriers are res !nsi'le f!r the initial under#ritin" !f insurance !licies and annuities, #hile Reinsurance carriers assu)e all !r art !f the ris( ass!ciated #ith the e*istin" insurance !licies !ri"inall$ under#ritten '$ !ther insurance carriers% &irect insurance carriers !ffer a variet$ !f insurance !licies% +ife insurance r!vides financial r!tecti!n t! 'eneficiariesKusuall$ s !uses and de endent childrenKu !n the death !f the insured% &isa'ilit$ insurance su lies a reset inc!)e t! an insured ers!n #h! is una'le t!

#!r( due t! inAur$ !r illness >ealth insurance a$s the e* enses resultin" fr!) accidents and illness% An Annuit$ 9a c!ntract !r a "r!u !f c!ntracts that furnishes a eri!dic inc!)e at re"ular intervals f!r a s ecified eri!d; r!vides a stead$ inc!)e durin" retire)ent f!r the re)ainder !f !ne/s life% 11

.r! ert$,casualt$ insurance r!tects a"ainst l!ss !r da)a"e t! r! ert$ resultin" fr!) haCards such as fire, theft, and natural disasters% +ia'ilit$ insurance shields !lic$h!lders fr!) financial res !nsi'ilit$ f!r inAuries t! !thers !r f!r da)a"e t! !ther e! le/s r! ert$% M!st !licies, such as aut!)!'ile and h!)e!#ner/s insurance, c!)'ine '!th r! ert$,casualt$ and lia'ilit$ c!vera"e% C!) anies that under#rite this (ind !f insurance are called r! ert$,casualt$ carriers%

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/hat i! Life In!"ran#e0 >u)an life is su'Aect t! ris(s !f death and disa'ilit$ due t! natural and accidental causes% Lhen hu)an life is l!st !r a ers!n is disa'led er)anentl$ !r te) !raril$, there is a l!ss !f inc!)e t! the h!useh!ld% The fa)il$ is ut t! hardshi % Ris(s are un redicta'le% &eathMdisa'ilit$ )a$ !ccur #hen !ne least e* ects it% There are a nu)'er !f life insurance savin"s% A Ter) insurance r!duct r!vides a fi*ed a)!unt !f )!ne$ !n death durin" the eri!d !f c!ntract% A Lh!le +ife insurance r!duct r!vides a fi*ed a)!unt !f )!ne$ !n death% An End!#)ent Assurance r!duct r!vided a fi*ed a)!unt !f )!ne$ either !n death durin" the eri!d !f c!ntract !r at the e* ir$ !f c!ntract if life assured is alive% A M!ne$ 7ac( Assurance r!duct r!vides n!t !nl$ fi*ed a)!unts #hich are a$a'le !n s ecified dates durin" the eri!d !f c!ntract, 'ut als! the full a)!unt !f )!ne$ assured !n death durin" the eri!d !f c!ntract% An Annuit$ r!duct r!vides a series !f )!nthl$ a$)ents !n sti ulated dates r!ducts #hich !ffer r!tecti!n and als! c!u led #ith

r!vided that the life assured is alive !n the sti ulated dates% A +in(ed r!duct r!vides n!t !nl$ a fi*ed a)!unt !f )!ne$ !n death 'ut als! su)s !f )!ne$ #hich are lin(ed #ith the underl$in" value !f assets !n the desired dates%

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There are a variet$ !f life insurance r!ducts t! suit t! the needs !f vari!us cate"!ries !f e! leKchildren, $!uth, #!)en, )iddle,a"ed ers!ns, !ld e! leJ and als! rural e! le, fil) act!rs and un!r"aniCed la'!rers% +ife insurance r!ducts c!uld 'e urchased fr!) re"istered life insurers n!tified '$ the IR&A% Insurers a !int insurance a"ents t! sell their r!ducts% As er re"ulati!ns, insurers have t! "ive the vari!us features !f the r!ducts at the !int !f sale% The insured sh!uld als! "! thr!u"h the vari!us ter)s and c!nditi!ns !f the r!ducts and understand #hat the$ have '!u"ht and )et their insurance needs% The$ !u"ht t! understand the clai) r!cedures s! that the$ (n!# #hat t! d! in the event !f a l!ss%

INDIAN INSURANCE SECTOR


RE.ULATORY ,ODY Insurance is a federal su'Aect in India% The ri)ar$ le"islati!n that deals #ith

insurance 'usiness in India isB Insurance Act, 1:02, and Insurance Re"ulat!r$ N &evel! )ent Auth!rit$ Act, 1:::% The Insurance Re"ulat!r$ and &evel! )ent Auth!rit$ 9IR&A; Ref!r)s in the Insurance sect!r #ere initiated #ith the assa"e !f the IR&A 7ill in .arlia)ent in &ece)'er 1:::% The IR&A since its inc!r !rati!n as a statut!r$ '!d$ in A ril 2666 has fastidi!usl$ stuc( t! its schedule !f fra)in" re"ulati!ns and re"isterin" the rivate sect!r insurance c!) anies%

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The !ther decisi!n ta(en si)ultane!usl$ t! r!vide the su

!rtin" s$ste)s t! the

insurance sect!r and in articular the life insurance c!) anies #as the launch !f the Ir&A/s !nline service f!r issue and rene#al !f licenses t! a"ents% Since 'ein" set u as an inde endent statut!r$ '!d$ the IR&A has c!) ati'le re"ulati!ns% MISSION-IRDA DT! r!tect the interests !f the !lic$h!lders, t! re"ulate, r!)!te and ensure !rderl$ "r!#th !f the insurance industr$ and f!r )atters c!nnected there#ith !r incidental theret!%F ut in a fra)e#!r( !f "l!'all$

IMPACT OF LI,ERALISATION

The intr!ducti!n !f rivate la$ers in the industr$ has added t! the c!l!rs in the dull industr$% The initiatives ta(en '$ the rivate la$ers are ver$ c!) etitive and have "iven i))ense c!) etiti!n t! the !n ti)e )!n! !l$ !f the )ar(et +IC% Since the advent !f the rivate la$ers in the )ar(et the industr$ has seen ne# and inn!vative ste s ta(en '$ the la$ers in this sect!r% The ne# la$ers have i) r!ved the service 3ualit$ !f the insurance% As a result +IC d!#n the $ears have seen the declinin" hase in its career% The )ar(et share #as distri'uted a)!n" the rivate la$ers% Th!u"h +IC still h!lds the 8:G !f the

insurance sect!r 'ut the u c!)in" natures !f these rivate la$ers are en!u"h t! "ive )!re c!) etiti!n t! +IC in the near future% +IC )ar(et share has decreased fr!) :<G 92662,60; t! 21 G9 2661,6<;%

1<

+IC has the current )ar(et share !f 8:G% A)!n" the rivate la$ers MAXhas the )a*i)u) !f a *% <%56G 7harti A*a has the current )ar(et share !f <G% -!ll!#ed '$ 7aAaA AllianC 90%28 G; and >&-C Standard +ife !f a'!ut 0%11G% 7el!# is the ta'le that sh!#s the )ar(et share !f vari!us la$ers !f the industr$%

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The fo o1in' #ompanie! ha)e the re!t of the mar2et !hare of the in!"ran#e in%"!tr(3 COMPANY NAME +IC ICICI .RU&E=TIA+ 7>ARTI AXA 7A?A? A++IA=O >&-C STA=&AR& +I-E 7IR+A SU=+I-E TATA AI@ S7I +I-E MAX =ELYORP AVIVA +I-E I=@ VYSYA OM POTAP +I-E AM. SA=MAR MET+I-E RE+IA=CE +I-E MAR4ET S5ARE 67389 :3;8 : 83<6 83== <38< =3>: =3<> 9379 93?< 93;; 93:> 938? 9388 939:

The li'eraliCati!n !f the Indian insurance sect!r has ! ened ne# d!!rs t! rivate c!) etiti!n and the ne# and i) r!ved insurance sect!r t!da$ r!)ises several ne# A!' ! !rtunities% Lith rivate la$ers n!# in the field, there #ill 'e inn!vative

r!ducts, 'etter ac(a"in", i) r!ved cust!)er service, and, )!st i) !rtantl$, "reater e) l!$)ent ! !rtunities%

There are a nu)'er !f ! ti!ns t! ch!!se fr!) f!r a career in Insurance% Ideall$ an insurance c!) an$ #ill have ! enin"s in the f!ll!#in" fieldsB

Actuaries Under#riter Surve$!r Invest)ent 18

Mar(etin" N &istri'uti!n

A#t"arie!

Evaluates the ris( f!r c!) anies t! 'e used f!r strate"ic )ana"e)ent decisi!ns%

Actuaries use their anal$tical s(ills t! redict the ris( !f #ritin" insurance !licies thr!u"h the use !f )athe)atical, statistical and ec!n!)ic )!dels%

An actuar$ n!t !nl$ fi*es the re)iu) rates f!r ne# r!ducts, 'ut als! revises '!th r!ducts and rices% The$ calculate c!sts t! assu)e ris(

Un%er1riter!

Insurance under#riters revie# insurance a licati!ns and decide #hether the$ sh!uld 'e acce ted !r reAected 'ased !n the de"ree !f ris(s inv!lved in insurin" the e! le !r !'Aects !f c!ncern%

In the life insurance 'usiness, an under#riter is e* ected t! filter the Q'ad !r su'standard livesQ% Lhereas, in the "eneral insurance se")ent, he ta(es care !f ris( )ana"e)ent%

CURRENT SCENARIO OF T5E INDUSTRY INSURANCE MAR4ET IN INDIA


India #ith a'!ut 266 )illi!n )iddle class h!useh!ld sh!#s a hu"e unta ed !tential f!r la$ers in the insurance industr$% Saturati!n !f )ar(ets in )an$ devel! ed

ec!n!)ies has )ade the Indian )ar(et even )!re attractive f!r "l!'al insurance

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)aA!rs% The insurance sect!r in India has c!)e t! a !siti!n !f ver$ hi"h !tential and c!) etitiveness in the )ar(et% Inn!vative r!ducts and a""ressive distri'uti!n have 'ec!)e the sa$ !f the da$% Indians, have al#a$s seen life insurance as a ta* savin" device, are n!# suddenl$ turnin" t! the rivate sect!r that are r!vidin" the) ne# r!ducts and variet$ f!r their ch!ice% +ife insurance industr$ is #aitin" f!r a 'i" "r!#th as )an$ Indian and f!rei"n c!) anies are #aitin" in the line f!r the "reen si"nal t! start their ! erati!ns% The Indian c!nsu)er sh!uld 'e read$ n!# 'ecause the )ar(et is "!in" t! "ive the) an arra$ !f r!ducts, different in rice, features and 'enefits% >!# the cust!)er is "!in" t! )a(e his ch!ice #ill deter)ine the future !f the industr$%

1:

DISTRI,UTION C5ANNELS +IC has alread$ #ell esta'lished and have an e*tensive distri'uti!n channel and resence% =e# la$ers )a$ find it e* ensive and ti)e c!nsu)in" t! 'rin" u a distri'uti!n net#!r( t! such standards% Theref!re the$ are l!!(in" t! the diverse areas !f distri'uti!n channel t! have an advanta"e% At resent the distri'uti!n channels that are availa'le in the )ar(et areB R &irect sellin"MRetail R C!r !rate a"ents R @r!u sellin" R 7r!(ers and c!! erative s!cieties R 7ancassurance An a"ent sh!uld 'e a leasin" ers!nalit$ #ith c!) lete (n!#led"e a'!ut the vari!us lans and s!luti!ns #hich the c!) an$ has t! !ffer and )ust als! understand the cust!)er/s s$ch!l!"$ #ell t! deal in an efficient )anner% ,ANCASSURANCE 7ancassurance is the distri'uti!n !f insurance r!ducts thr!u"h the 'an(Is distri'uti!n channel% It is a hen!)en!n #herein insurance r!ducts are !ffered thr!u"h the distri'uti!n channels !f the 'an(in" services al!n" #ith a c!) lete ran"e !f 'an(in" and invest)ent r!ducts and services% T! ut it si) l$, 7ancassurance, tries t! e* l!it s$ner"ies 'et#een '!th the insurance c!) anies and 'an(s%

26

A%)anta'e! to $an2!

.r!ductivit$ !f the e) l!$ees increases% 7$ r!vidin" cust!)ers #ith '!th the services under !ne r!!f, the$ can I) r!ve !verall cust!)er satisfacti!n resultin" in hi"her cust!)er retenti!n +evels%

Increase in return !n assets '$ 'uildin" fee inc!)e thr!u"h the sale !f In!"ran#e pro%"#t!3

Can levera"e !n face,t!,face c!ntacts and a#areness a'!ut the financial C!nditi!ns !f cust!)ers t! sell insurance r!ducts%

7an(s can cr!ss sell insurance r!ducts e%"%B Ter) insurance r!ducts #ith l!ans%

A%)anta'e! to in!"rer! Insurers can e* l!it the 'an(sI #ide net#!r( !f 'ranches f!r distri'uti!n !f r!ducts% The enetrati!n !f 'an(sI 'ranches int! the rural areas can 'e

utiliCed t! sell r!ducts in th!se areas%

Cust!)er data'ase li(e cust!)ersI financial standin", s endin" ha'its, invest)ent and urchase ca a'ilit$ can 'e used t! cust!)iCe r!ducts and sell acc!rdin"l$%

Since 'an(s have alread$ esta'lished relati!nshi #ith cust!)ers, c!nversi!n rati! !f leads t! sales is li(el$ t! 'e hi"h% -urther service as ect can als! 'e tac(led easil$%

21

A%)anta'e! to #on!"mer! C!) rehensive financial advis!r$ services under !ne r!!f% i%e%, insurance services al!n" #ith !ther financial services such as 'an(in", )utual funds, ers!nal l!ans etc%

Enhanced c!nvenience !n the art !f the insured Eas$ accesses f!r clai)s, as 'an(s are a re"ular "!% Inn!vative and 'etter r!duct ran"es

/5AT DOES LIFE INSURANCE 5AVE TO OFFER0 +ife insurance is )an$ different thin"s t! )an$ different e! le% -!r s!)e, it is a re)iu) t! 'e aid !n ti)e% -!r !thers it !ffers li3uidit$ since cash can 'e '!rr!#ed #hen needed% -!r the invest)ent,)inded, it den!tes a c!nstantl$ "r!#in" ca ital acc!unt and nu)er!us !ther 'enefits% The c!ntractual "uarantee is the r!)ise t! a$, 'ac(ed '$ !ne !f the !ldest and )!st sta'l$ re"ulated financial industr$ ! eratin" in the Indian su',c!ntinent t!da$% 1; Insurance 7u$s Ti)e and M!ne$ .e! le li(e t! refer t! life insurance as ti)e insurance, the reas!n 'ein" that life insurance r!ceeds are aid t! the insuredIs 'eneficiaries in case !f death% The )!ne$ r!ffered '$ life insurance hel s 'u$ ti)e t! adAust t! the chan"e !f circu)stances% Insurance r!vides lar"e a)!unts !f cash that #ill (ee the lifest$le f!r the surviv!rs the #a$ it #as 'ef!re the insuredIs death% 2; Insurance Offers .eace !f Mind 22

-!r the ers!n #h! 'u$s an insurance !lic$, it !ffers a's!lute and c!) lete eace !f )ind% >e !r she (n!#s that the decisi!n )ade '$ hi) #ill r!vide s!und 'enefits in the future, #hether !r n!t the individual )a$ live t! see it% 0; Multi le A licati!ns The future is uncertain f!r each and ever$ !ne% =! !ne (n!#s h!# l!n" he !r she #ill live% The invest)ent 'enefit is aid t! the insuredIs 'eneficiaries after his death !r it can 'e used durin" the life as #ell% +ife insurance !lic$ !#ners can turn t! the cash value !f the !lic$ in case !f a financial e)er"enc$ #hen all avenues are either 'l!c(ed !r denied% 1; Endurin" Elasticit$ Since life insurance is fle*i'le en!u"h t! serve several needs, the insured can (ee several l!n",ter) "!als in )ind !nce he !r she invests in the insurance lan% The cash value !f the !lic$ can 'e all!cated t!#ards au")entin" the )!nthl$ inc!)e durin" the retire)ent $ears% +eisure $ears sh!uld 'e turned int! leasure $ears% .er)anent life insurance is desi"ned !n the c!nce ts !f l!n",ter) fle*i'ilit$% <; -inancial Securit$ The insurance !lic$ !ffers c!ntractual "uarantees t! e! le l!!(in" f!r eace !f )ind #hen the$ 'u$ life insurance% +ife insurance !ffers c!) lete financial securit$% The urchase !f life insurance de)!nstrates c!ncern f!r a fa)il$Is future financial #ell 'ein"% 5; Re"ard f!r -a)il$

20

The urchase !f life insurance clearl$ dis la$s care and c!ncern f!r the e! le the !lic$ !#ner l!ves% 8; Insurance is Safer =! financial instituti!n can d! #hat life insurance d!es% =! industr$ can 'ac( its r!ducts #ith reserves and sur lus as s!und as th!se !f the insurance industr$% The r!!f !f stren"th and safet$ that insurance c!) anies have ensured even under the )!st adverse !f c!nditi!ns is a )atter !f ride f!r the entire insurance industr$% -!r "enerati!n after "enerati!n, life insurance has 'een acclai)ed as the ver$ 'ench)ar( !f securit$ a"ainst #hich the !ther industries are )easured% OPPORTUNITIES FOR INSURANCE COMPANIES In the n!# ! en sect!r !n insurance, the f!ll!#in" is #hat I feel #ill deter)ine the success !f the c!) an$ in articular and the industr$ in "eneralB

A chan"e in the attitude !f the ! ulati!n

Indians have al#a$s 'een #ar$ !f e) l!$in" their hard,earned )!ne$ in a venture that #ill a$ the) !n their death% Insurance has al#a$s 'een used as a Ta* savin" t!!l% =! )!re, n! less% It is u !n the insurers t! educate the e! le t! secureMinsure their future a"ainst an$ un(n!#n cala)it$ and )a(e a shield ar!und their fa)ilies and 'usinesses%

An ! en and trans arent envir!n)ent created under the IR&A%

The reas!n f!r this 'ein" !n the t! !f !ur understandin" is that #hen ever #e have seen an$ sect!r ! en u in India there are al#a$s "re$ areas and unsure !licies% 21

These are n!t e*actl$ #hat an$ la$er, 'e it Indian !r f!rei"n, l!!(s f!r% It creates an air !f uncertaint$ in all the decisi!n )a(in" r!cess% Insurance as a sect!r re3uires la$ers #h! are str!n" financiall$ and are #illin" t! #ait f!r returns% Their c!nfidence can 'e '!lstered !nl$ if there is an ! en and a trans arent !lic$ "uidelines% This #ill als! hel the c!nsu)ers feel safe that the re"ulat!r$ is an active !ne and cares t! d! ever$thin" !ssi'le t! (ee thin"s under c!ntr!l and hel the insurance envir!n)ent "r!# )aturel$% A #ell,esta'lished distri'uti!n net#!r(%

T! cater t! the lar"est de)!crac$ in the #!rld is '$ n! )eans a ca(e#al(% Insurance r!fits are directl$ related t! nu)'er !f insured and this is in turn related t! the reach%

Trained r!fessi!nals t! 'uild and sell the r!duct%

It is said that the insurance a"ent is the 'est sales)an in the #!rld% >e )a(es $!u a$, re"ularl$, an a)!unt r!)isin" t! a$ 'ac( !nl$ !n $!ur death% Thus the la$ers #ill re3uire an e*cellent sales tea) t! sell their envir!n)ent%

r!ducts in the n!# c!) etitive

Enc!ura"e)ent !f ne# and 'etter r!ducts and lettin" the hac(ne$ed !nes die !ut%

This #ill itself ensure the )ar(et "r!#s% And that ever$ classMs!ciet$ "ets a r!duct that 'est suits the)%

2<

SPECIAL PROVISIONS The Inc!)e Ta* Act and +ife Insurance !licies

Under Secti!n 16916&;, an$ su) received under a +ife Insurance !lic$ 9n!t 'ein" a Pe$ Man !lic$; is als! e*e) t fr!) ta*ati!n% 7ut it is #ise t! re)e)'er that .ensi!ns received fr!) Annuit$ lans are n!t e*e) ted fr!) Inc!)e Ta*%

Secti!n 26C r!vides a deducti!n u t! Rs%1,66,666M, t! an individual assesses f!r an$ a)!unt aid as a re)iu)%

25

INTRODUCTION TO INSURANCE COMPANY3

In !rder t! "! thr!u"h the A!urne$ !f +IC 4 .ath !f rivate sect!r insurance c!) anies t! nati!naliCe c!) an$ t! a"ain rivate sect!r insurance c!) anies is "iven as 'el!#B

Path .rivate +ife Insurance C!) anies

=ati!naliCati!n

.rivatiCati!n !f +ife Insurance Sect!r

+ife Insurance c!nce t #as 1286 4 acce ted #ith al)!st 2<6 .rivate 1:<5 +ife Insurance C!) anies Mer"in" !f al)!st 2<6 .rivate Sect!r +ife Insurance C!) anies in 1:<5 !ne nati!naliCed +ife Insurance C!r !rati!n !f India .r! !sal t! rivatiCe life insurance 1::< 'usiness ?une Re"istrati!n r!cess #as n!tified 2666 Au"ust 28 A licati!n #as filed

2666 Oct!'er 2666 2662

1st license #as issued #ith intr!ducti!n !f IR&A &urin" the )!nth !f ?anuar$, 11 +ife and =!n,+ife .rivate Insurance license #ere issued

In !rder t! ela'!rate the a'!ve Insurance Sect!r%

ath lets "! thr!u"h the hist!r$ !f +ife

On 0rd &ece)'er 1586, seven earnest )en !f 7!)'a$ #ith Aust seven ru ees f!r initial e* enses "ave sha e t! a lan !f !fferin" insurance t! the u'lic #ith!ut the ris( !f ruin and the 7!)'a$ Mutual +ife Insurance S!ciet$ ca)e int! e*istence% Ri"ht u t! the end !f the 1:th centur$, f!rei"n insurance c!) anies had an u er hand in the )atter !f insurance 'usiness and the$ enA!$ed )ere

)!n! !l$ and the artialit$ #ere !'served in the f!r) that Indian lives #ere insured #ith 16G e*tra re)iu) as a c!))!n ractice, at that ti)e +ala >ari(ishan +al fr!) +ah!re #as called DThe =a !le!n !f Indian -inanceF as he #as then called t! launch the 7harat Insurance C!) an$ at +ah!re 912:5; in .unAa'% .ri!r t! 1:12, India had n! le"islati!n f!r re"ulatin" insurance% The +ife Insurance C!) anies Act 1:12 and the .r!vident -und Act 1:12 #ere assed%

The Insurance Act 1:02 #as the first c!) rehensive le"islati!n "!vernin" n!t !nl$ life 'ut als! n!n,life 'ranches !f insurance t! r!vide strict state c!ntr!l !ver insurance 'usiness% 22

7ut after the intr!ducti!n !f Insurance Act 1:02, the de)and f!r nati!naliCati!n !f +ife Insurance Industr$ #as raised, there #ere s! )an$ reas!ns in !rder t! nati!naliCe the insurance sect!r%

The$ areB .!lic$h!lders #ill 'e r!vided cent ercent securit$% E* enses #ill 'e reduced due t! A'sence !f du licati!n, #asteful c!) etiti!n 7etter service due t! a'sence !f r!fit )!tive% The funds #ill 'e availa'le f!r nati!n 'uildin" activities% Insurance is servicin" sect!r and s! that it sh!uld 'e in the hands !f "!vern)ent !nl$%

A'!ve are fe# 'ut str!n" reas!ns, #hich have c!ntri'uted t!#ards nati!naliCati!n !f insurance sect!r, and then after in the $ear 1:<5, all insurance c!) anies #ere )er"ed in t! !ne and +ife Insurance C!r !rati!n !f India ca)e int! e*istence%

Till the $ear 1:::, +IC !f India #as the !nl$ insurance sect!r in ec!n!)ic )ar(et #ith ever,increasin" "r!#th rate and )ar(et share #ith the ca acit$ t! earn hi"h rate !f r!fit and thus r!fita'ilit$% In s ite !f all these )erits !f +IC, the !verall status !f insurance sect!r #as n!t s! satisfact!r$%

7usiness fi"ure 'ef!re the intr!ducti!n !f IR&A .! ulati!n 2: 1%66 7illi!n

Insura'le .! ulati!n =!% Of insured individuals .!tential individuals =e# 7usiness re)iu) uninsured

6%05 7illi!n 6%62 7illi!n 6%22 7illi!n

6%55 7illi!n

A'!ve stated fi"ures clearl$ sh!#s that fr!) 1 7illi!n ! ulati!n !f India, al)!st 6%22 7illi!n ! ulati!n #as uninsured% A"ain the e*istin" "!vern)ent unit did n!t r! erl$ )eet the e)er"in" se")ents li(e retire)ent, disa'ilit$% M!re!ver, the "!vern)ent #anted 2<G %a% "r!#th rate in ne# 'usiness re)iu) fr!) insurance sect!r% All these fact!rs c!)'ine f!rced the

"!vern)ent t! ta(e the decisi!n a'!ut the rivatiCati!n !f insurance sect!r% In !rder t! increase the 'usiness activities, the intr!ducti!n !f IR&A #as )ade '$ @!vern)ent% Thus, IR&A 9Insurance Re"ulat!r$ and &evel! )ent Auth!rit$; #itnessed the e*istence !#er t! c!,!rdinate re"ular and c!ntr!l the insurance 'usiness%

Pri)ate In!"rer! in In%ian In!"ran#e Mar2et

Re'i!tration No3

Date of Re'i!tration

Name of the Compan(

06

161 161 16<

20%16%2666 1<%11%2666 21%11%2666

>&-C Standard +ife Ma* =e# Y!r( +ife MAX+ife

168

16%61%2661

O) P!ta( Mahindra +ife

16: 116 111

01%61%2661 12%62%2661 06%60%2661

7irla Sun +ife Insurance TATA AI@ +ife Insurance S7I +ife Insurance

01

COMPANY PROFILE

02

COMPANY PROFILE

Max New York Life Insurance


Max New York Life wants people to view insurance as a financial protection and wealth creation instrument and not just a tax-saving tool.

Ma* =e# Y!r( +ife Insurance C!) an$ +td% is a A!int venture 'et#een =e# Y!r( +ife, a -!rtune 166 c!) an$ and Ma* India +i)ited, !ne !f IndiaIs leadin" )ulti,'usiness c!r !rati!ns% The c!) an$ has !siti!ned itself !n the 3ualit$

latf!r)% In line #ith its visi!n t! 'e the )!st ad)ired life insurance c!) an$ in India, it has devel! ed a str!n" c!r !rate "!vernance )!del 'ased !n the c!re values !f e*cellence, h!nest$, (n!#led"e, carin", inte"rit$ and tea)#!r(% The strate"$ is t! esta'lish itself as a trusted life insurance s ecialist thr!u"h a 3ualit$ a r!ach t! 'usiness%

=e# Y!r( +ife is a -!rtune 166 c!) an$ that has !ver 156 $ears !f e* erience in the life insurance 'usiness% Ma* India +i)ited is a )ulti,'usiness c!r !rate dealin" in Clinical Research, IT and Telec!) Services, and S ecialt$ .lastic .r!ducts 'usinesses%

00

Ma* =e# Y!r( +ife Insurance started its ! erati!ns in India in 2666% It is the first life insurance c!) an$ in India t! 'e a#arded the IS6 :661B2666 certificati!n% Ma* =e# Y!r( !ffers cust!)iCed r!ducts tail!red t! suit individualIs needs% Lith its vari!us .r!ducts and Riders, there are )!re than 166 r!duct c!)'inati!ns t! ch!!se fr!)% T!da$, Ma* =e# Y!r( +ife Insurance has a net#!r( !f <8 !ffices s read !ver 08 cities all !ver India%

In line #ith its values !f financial res !nsi'ilit$, Ma* =e# Y!r( +ife has ad! ted rudent financial ractices t! ensure safet$ !f !lic$h!lderIs funds% The

C!) an$Is aid u ca ital is Rs% 5<8 cr!re, #hich is )!re than the n!r) laid d!#n '$ IR&A%

Ma* =e# Y!r( +ife has identified individual a"ents as its ri)ar$ channel !f distri'uti!n% The C!) an$ laces a l!t !f e) hasis !n its selecti!n r!cess, #hich c!) rises f!ur sta"es , screenin", s$ch!)etric test, career se)inar and final intervie#% The a"ent advis!rs are trained in,h!use t! ensure ! ti)al c!ntr!l !n 3ualit$ !f trainin"%

Ma* =e# Y!r( +ife invests si"nificantl$ in its trainin" r!"ra) and each a"ent is trained f!r 1<2 h!urs as ! !sed t! the )andat!r$ 166 h!urs sti ulated '$ the

IR&A 'ef!re 'e"innin" t! sell in the )ar(et lace% Trainin" is a c!ntinu!us r!cess f!r a"ents at Ma* =e# Y!r( +ife and ensures devel! )ent !f s(ills and (n!#led"e thr!u"h a structured r!"ra) s read !ver <66 h!urs in t#! $ears% This f!cus !n c!ntinu!us 3ualit$ trainin" has resulted in the c!) an$ havin" a)!n"st the hi"hest

01

a"ent ass rate in IR&A e*a)inati!ns and the a"ents have the hi"hest r!ductivit$ a)!n" rivate life insurers%

It has esta'lished a #ide a"enc$ distri'uti!n net#!r( #ith 182 !ffices and re resentatives acr!ss 126 cities in India% The c!) an$ has esta'lished additi!nal channel #ith 22 'ancassurance relati!nshi s, c!r !rate tie,u s and a str!n" &irect Sales Tea)% Thr!u"h its #ide net#!r( !f hi"hl$ c!) etent life insurance a"ent advis!rs, fle*i'le r!duct s!luti!ns and str!n" cust!)er f!cus, Ma* =e# Y!r( life is creatin" a artnershi f!r life #ith its cust!)ers in India%

Ma* =e# Y!r( +ife, !ne !f India/s leadin" life insurance c!) anies, e* anded its resence in the s!uthern re"i!n '$ ! enin" its first "eneral !ffice in the cit$ !f M$s!re% Ma* =e# Y!r( +ife n!# has esta'lished a c!untr$#ide net#!r( !f 182 !ffices and re resentatives acr!ss 126 cities in India%

Ma* =e# Y!r( +ife, #hich has till date s!ld !ver 1%<0 )illi!n !licies and rec!rded a su) assured !f !ver Rs% 15,666 cr!re, has !siti!ned itself !n the 3ualit$ latf!r)% The c!) an$ has devel! ed a str!n" c!r !rate "!vernance )!del 'ased !n defined c!re values !f carin", (n!#led"e, e*cellence and h!nest$% Its strate"$ is t! esta'lish itself as a trusted life insurance s ecialist !n the 'edr!c( !f 3ualit$ !f advice% The c!) an$ has !ver 2<,066 a"ent advis!rs, #h! are #idel$ c!nsidered the 'est in the 'usiness%

Ma* =e# Y!r( +ife as ires t! 'e the Qlife insurance 'rand !f first ch!iceQ a)!n"st Indian c!nsu)ers% T! achieve this the c!) an$ #ill dra# !n =e# Y!r(

0<

+ifeIs de)!nstrated c!) etence in devel! in" and )ana"in" a su eri!r ers!nal sales net#!r(% -!r the last 15 $ears c!nsecutivel$, the lar"est nu)'er !f a"ents 3ualif$in" f!r )e)'ershi t! the Milli!n &!llar R!und Ta'le 9M&RT; have 'een fr!) =e# Y!r( +ife% The M&RT is the industr$Is )!st resti"i!us !r"aniCati!n c!) risin" the #!rldIs )!st successful insurance a"ents% Ma* =e# Y!r( +ife, a )erit !riented and e3ual ! !rtunities e) l!$er, is l!!(in" f!r a fe# "!!d )en and #!)en #h! #ill

s earhead the eff!rt t! realiCe this visi!n%

DMa* =e# Y!r( +ife #ants e! le t! vie# insurance as a financial r!tecti!n and #ealth creati!n instru)ent and n!t Aust a ta*,savin" t!!l% Since the launch !f !ur ! erati!ns, !ur f!cus has al#a$s 'een !n r!vidin" ris( r!tecti!n and l!n",ter) #ealth creati!n s!luti!ns t! !ur cust!)ers% Lith a diverse r!duct !rtf!li! t! )eet cust!)er re3uire)ents, it is evident that #e are settin" 'ench)ar(s in the )ar(et lace and are #ell !n c!urse !f realiCin" !ur visi!n t! 'ec!)e India/s )!st ad)ired +ife Insurance C!) an$%F

DAn ever e* andin" resence !f Ma* =e# Y!r( +ife !ffices acr!ss India reinf!rces !ur c!))it)ent t! servin" the nati!n% Le are e*tre)el$ leased #ith !ur r!"ress in the re"i!n and feel that ! enin" an !ffice in M$s!re #!uld hel us educate e! le a'!ut the true !tential and 'enefits !f life insurance% As life insurance s ecialists, Ma* =e# Y!r( +ife #ill c!ntinue t! hel c!nsu)ers )a(e the ri"ht ch!ices t! )eet their financial "!als, '!th f!r the sh!rt and l!n",ter), thr!u"h s!und 3ualit$ advice !ffered '$ !ur a"ent advis!rs and a ri"ht )i* !f r!duct !fferin"s%F he added%

05

Ma* =e# Y!r( +ife has 'een instru)ental in chan"in" the aradi") !f life insurance in India% It is the first life insurance c!) an$ in India t! intr!duce cause related )ar(etin"%

Children are at the ver$ heart !f Ma* =e# Y!r( +ifeIs strate"$% SOS ChildrenIs Villa"es !f India is internati!nall$ rec!"niCed f!r its #!r( in "ivin" under rivile"ed children a #h!les!)e life% The )issi!n !f SOS is Qt! hel !r haned and a'and!ned children, '$ r!vidin" the) #ith a fa)il$, a er)anent h!)e,

educati!n and str!n" f!undati!n f!r an inde endent life%Q ItIs )issi!n ties in #ith Ma* =e# Y!r( +ifeIs hil!s! h$ !f hel in" e! le secure the future !f their near and dear !nes%

Vi!ion& Visi!n state)ent is @Mo!t A%mire% Life In!"ran#e Compan( in In%ia@3

Mi!!ion& 7ec!)e !ne !f the t! 3uartile life insurance c!) anies in India 7e a nati!nal la$er 7e the 'rand !f first ch!ice 7e the e) l!$er !f ch!ice 7ec!)e rinci al !f ch!ice f!r a"ents

08

MaA Ne1 Yor2 Life Va "e! an% ,e ief!

EA#e en#e QIn ever$ as ect !f #!r(% Ran"in" fr!) the in,h!use trainin" institute t! the detailed .ers!nal Insurance .lan% Ma* =e# Y!r( +ife is f!cused !n achievin" the hi"hest standards !f 3ualit$ in ever$ as ect !f their 'usinessQ%

5one!t( QIs the heart !f the +ife Insurance 'usiness% Ma* =e# Y!r( 'elieves that a'!ve all, +ife Insurance is 'ased !n trust% Trans arenc$, &e enda'ilit$ and Inte"rit$ #ill f!r) the c!rnerst!nes !f the Ma* =e# Y!r( +ife e* erience%Q

4no1 e%'e QIs #hat )a(es e* erts% Ma* =e# Y!r( +ife is f!cused !n the +ife Insurance 'usiness% .erfectl$ c!)'inin" "l!'al e* ertise #ith l!cal (n!#led"e, Ma* =e# Y!r( +ife is the Indian +ife Insurance s ecialist%Q

Carin' Q-!r the cust!)er% Ma* =e# Y!r( +ife is redefinin" the +ife Insurance aradi") t! f!cus !n the needs !f the cust!)ers% The Ma* =e# Y!r( service res !nsive, ers!naliCed, hu)ane and e) athetic%Q r!cess is

C" t"re& Our Qin h!use culture reci eQ has s!)e !f the finest in"redients "!in" int! its )a(in"% S!)e !f the )!re r!)inent as ects !f !ur culture are stated 'el!#B

02

Cust!)er c!)es first &! it ri"ht the first ti)e 7ias f!r result !riented acti!n -inancial stren"th and disci line Clarit$ !f ur !se Internati!nal 3ualit$ standards Inclusive Merit!crac$ +earnin" ! -un at #!r( C!))it)ent t! u'lished value s$ste) !rtunities

0:

MANA.EMENT
,OARD OF DIRECTORS& Ana Bit Sin'h Chair)an, Ma* India +i)ited .ar( R3 ,ennett Mana"in" &irect!r and CEO, Ma* =e# Y!r( +ife Insurance

Te% Matha! .resident N Chief O eratin" Officer, =e# Y!r( +ife Insurance

An"roop CTon(C Sin'h Vice Chair)an, Ma* =e# Y!r( +ife Insurance

MANA.EMENT TEAM& .ar( ,ennett Mana"in" &irect!r and CEO, Ma* =e# Y!r( +ife S"ni Sharma Chief O eratin" Officer and E*ecutive &irect!r

RaBit Mehta E*ecutive &irect!r, >u)an Res!urces, Trainin" and Internal C!))unicati!ns

RaBe!h S"% E*ecutive &irect!r, &istri'uti!n

Ani Mehta &irect!r, @r!u 7usiness

S"ni 4a2ar &irect!r and Chief -inancial Officer De$a!hi! Sar2ar &irect!r , Mar(etin", .r!duct Mana"e)ent and C!r !rate Affairs

ABa( Seth &irect!r, +e"al N C!) liance

Dohn Poo e Chief Actuar$

16

PRODUCTS - SERVICES

11

PRODUCTS - SERVICES
Prote#tion P an!& Fi)e Year Rene1a$ e an% Con)erti$ e Term In!"ran#e Ma* =e# Y!r( +ifeIs -ive Year Rene#a'le and C!nverti'le Ter) Insurance 9=!n, .artici atin"; lan n!t !nl$ r!vide $!u #ith a l!# c!st insurance c!ver durin" its tenure !f five $ears, it als! hel s $!u lan in advance f!r vari!us future needs and $!ur fa)il$Is financial securit$, sh!uld an$thin" unf!rtunate ha en t! $!u% Offerin" a "uaranteed &eath 7enefit, this lan is articularl$ useful as a sh!rt,ter) r!tecti!n lan% An i) !rtant feature !f this !lic$ is that it all!#s the insured t! c!nvert the !lic$ t! a re"ular !lic$ durin" the tenure !f the !lic$%

Le)e Term *Non Parti#ipatin'+ Po i#( Ma* =e# Y!r( +ifeIs +evel Ter) 9=!n .artici atin"; .!lic$ is a lan that c!vers $!ur life at a ver$ l!# c!st and reduces the c!nse3uent hardshi $!ur fa)il$ )a$ have t! 'ear in the unf!rtunate event !f $!ur death% Incase !f the unf!rtunate death !f the !lic$ h!lder durin" the ter) !f the lan, an a)!unt e3ual t! the su) assured is aid t! the n!)inee% Chi %ren P an!& Chi %renC! En%o1ment to =? *Par+ P an Ma* =e# Y!r( +ife resents ChildrenIs End!#)ent .artici atin" Insurance t! a"e 12 #ith an ! ti!n t! 'u$ a er)anent life insurance !lic$ #ith!ut )edical under#ritin" 9irres ective !f hisMher health at that ti)e;% This !lic$ #hich is es eciall$ desi"ned t! ena'le $!u t! r!vide f!r hi"her educati!n !f $!ur child and ta(e care !f $!ur child/s future needs in case !f s iralin" c!sts%

12

Chi %renC! En%o1ment to <> *Par+ P an Ma* =e# Y!r( +ife/s ChildrenIs End!#)ent .artici atin" Insurance t! a"e 21 r!vides an ! ti!n t! 'u$ a er)anent life insurance !lic$ #ith!ut )edical

under#ritin" 9irres ective !f hisMher health at that ti)e;% This !lic$ ena'les $!u t! r!vide f!r vari!us events in $!ur child/s life such as a "rand #eddin" !f $!ur child% This e*cellent lan is a artici atin" lan, #hich is als! eli"i'le f!r '!nuses and Ma* =e# Y!r( +ife )a$ declare these '!nuses fr!) ti)e t! ti)e and fr!) the third !lic$ $ear% An i) !rtant feature !f this lan is that the entire su) assured is aid !ut !n )aturit$ and the lan aut!)aticall$ vests #hen the child turns 12%

Steppin' Stone!E *Par+ P an Ma* =e# Y!r( +ife/s Ste in" St!nesS is a s)art #a$ t! lan $!ur children/s educati!n and their future irres ective !f #hether $!u are there !r n!t% It r!vides $!u #ith re"ular )!ne$ #hen it is re3uired% This !lic$ als! 'uilds cash value, #hich $!u can use durin" $!ur lifeti)e t! fund an$ unf!reseen needs '$ surrenderin" accu)ulated .UAs% This !lic$ als! entitles $!u t! )a(e artial #ithdra#als f!r vari!us un lanned e* enses in the future%

SMART Step!E P an Intr!ducin" Ma* =e# Y!r( +ife/s re"ular re)iu) unit lin(ed life insurance children/s lan 4 SMART Ste sS, #hich #ill hel $!u lan f!r $!ur childIs future in a SMART #a$ and ta(es $!ur #!rries a#a$% This lan !ffers the re3uired financial r!tecti!n f!r $!ur l!ved !nes if $!u are n!t alive and r!vides an un)atched

10

invest)ent !

!rtunit$ '$ #a$ !f #ell )ana"ed invest)ent funds% This !lic$ als!

entitles $!u t! )a(e artial #ithdra#als f!r vari!us un lanned e* enses in the future%

SMART Step! E P "! A re"ular re)iu) unit lin(ed life insurance lan, Ma* =e# Y!r( +ife/s SMART Ste sS .lus #ill hel $!u lan f!r $!ur childIs hi"her educati!n, )arria"e, and financial securit$% This lan !ffers n!,c!) r!)ise 056 de"ree r!tecti!n t! $!ur children even if $!u are n!t alive and r!vides an un)atched invest)ent ! !rtunit$

'$ #a$ !f #ell )ana"ed invest)ent funds% This !lic$ als! entitles $!u t! )a(e artial #ithdra#als f!r vari!us un lanned e* enses in the future%

SMART Step! E Sin' e Premi"m P an Ma* =e# Y!r( +ife/s SMART Ste sS Sin"le .re)iu) !lic$ #ill hel $!u lan f!r $!ur childIs future in a SMART and !r"aniCed )anner% A art fr!) !fferin" 056 de"ree r!tecti!n t! $!ur child if $!u are n!t alive, this lan als! r!vides an un)atched invest)ent ! !rtunit$ '$ #a$ !f #ell )ana"ed invest)ent funds% This

!lic$ als! entitles $!u t! )a(e artial #ithdra#als f!r vari!us un lanned e* enses in the future% In)e!tment P an!& Life Ma2erE Premi"m In)e!tment P an The latest +ife Ma(erS .re)iu) Invest)ent .lan "ives $!u a l!t !f ch!ices , es eciall$ #hen $!u are l!!(in" f!r @reat life st$le, 7i" >!)e, $!ur !#n #ell esta'lished 7usiness and t! !f all , .r!tecti!n f!r $!ur fa)il$% Our Unit lin(ed +ife Insurance lan can 'e the financial c!rnerst!ne f!r $!ur !'Aectives% Ma* =e# Y!r( 11

+ife Insurance r!vides $!u a !#erful invest)ent,cu),insurance lan #here $!u can direct $!ur invest)ents in the cust!)iCed unit lin(ed funds such as e3uities, )!ne$ )ar(et instru)ents, invest)ent "rade c!r !rate '!nds, and "!vern)ent securities% These funds !ffer a #ide ran"e !f returns 'asis )ar(et returns% Y!u can ch!!se t! invest $!ur re)iu)s in !ne !r )!re !f these funds, 'asis $!ur ris( ta(in" a'ilit$%

Life Ma2erE P atin"m - a Unit Lin2e% In)e!tment P an Lith the Life Ma2erE P atin"m - a Unit Lin2e% In)e!tment P an , $!u can )eet all $!ur financial needs, #ith!ut the tediu) !f )ana"in" )ulti le r!ducts% In this lan, $!u can direct $!ur invest)ents in the cust!)iCed unit lin(ed funds such as e3uities, )!ne$ )ar(et instru)ents, invest)ent "rade c!r !rate '!nds, and "!vern)ent securities% These funds !ffer a #ide ran"e !f returns 'asis )ar(et returns% Y!u can als! ch!!se t! invest $!ur re)iu)s in !ne !r )!re !f these funds, 'asis $!ur ris( ta(in" a'ilit$%

Life Ma2erE .o % P an This lan ena'les $!u t! ch!!se an attractive invest)ent fund, enA!$ free l!$alt$ units and ta* 'enefits !n re)iu)s and )aturit$ value% +ife Ma(erS @!ld .lan als! r!vides $!u insurance c!ver, in #hich, $!ur n!)inee #ill "et the Su) Assured lus the -und Value t! $!ur n!)inee9s;, in case !f unf!rtunate event !f $!ur death% Our .lan als! !ffers $!u the fle*i'le invest)ent feature, #here $!u can ch!!se !ne !ut !f f!ur attractive funds ! ti!ns and als! chan"e $!ur ris( return r!file !f $!ur e*istin" invest)ents '$ s#itchin" acr!ss funds #ith !ur hi"h cust!)iCati!n feature% 1<

Life In)e!tE P an This !lic$ #ill r!vides $!u c!) rehensive r!tecti!n fr!) 0 &s i%e% &eath, &isease and &isa'ilit$% A art fr!) l!$alt$ units and ta* 'enefits, the )aturit$ feature !f this !lic$ #ill als! a$ $!u the fund value% -le*i'le Invest)ent #ith ch!ice !f f!ur attractive fund ! ti!ns, lu) su) invest)ent in $!ur lans thr!u"h t! u s as er $!ur cash fl!#, increasin" death 'enefits, fle*i'ilit$ t! ch!!se re)iu) a$)ent ter)s are fe# !f the 'enefits $!u can enA!$ thr!u"h this !lic$%

SMART A!!"re P an Our s)art assure lan als! ena'les $!u t! )a(e artial #ithdra#als at the ti)e !f une* ected e* enses% The s#itchin" feature !f this !lic$ r!vides $!u the facilit$ t! chan"e the invest)ent attern '$ )!vin" fr!) !ne fund t! !ther fund9s; a)!n"st the funds !ffered under this c!ntract

Retirement P an!& Ea!( LifeE Retirement *Par+ P an Caterin" t! the diverse set !f needs !f vari!us cust!)ers l!!(in" f!r retire)ent lannin", Ma* =e# Y!r( +ife !ffers s!)e s lendid retire)ent lans, #hich #!uld suit their 'ud"et and lifest$le% Ma* =e# Y!r( +ifeIs Eas$ +ifeS Retire)ent .lan Re"ular .re)iu)MSin"le .re)iu) 9.artici atin"; .!lic$ is desi"ned t! hel $!u save )!ne$ f!r $!ur retire)ent% It als! r!vides $!u #ith an ! re"ular retire)ent inc!)e 9i%e% ensi!n;% !rtunit$ t! ta(e h!)e a

15

SMART In)e!tE Pen!ion P an Offerin" c!) etitive returns t! secure the "!lden $ears !f $!ur life, Ma* =e# Y!r( +ifeIs SMART InvestS .ensi!n .lan is a c!) rehensive unit lin(ed ensi!n lan t! )eet $!ur !st retire)ent financial needs, ensurin" $!u c!) lete eace !f )ind% One, third !f the c!r us can 'e c!))uted at vestin" a"e the a)!unt c!))uted are eli"i'le f!r ta* e*e) ti!n uMs 16A%

5ea th P an!& LifeLine-Me%iCa!hE P an Ma* =e# Y!r( +ifeIs +ifeline,MediCashS health Insurance su lan r!vides $!u

!rt '$ "ivin" $!u h!s ital cash 'enefit, #henever $!u are h!s italiCed% Thr!u"h

this lan $!u #ill "et a fi*ed 'enefit t!#ards h!s italiCati!n, ICU and recu erati!n 9 !st h!s italiCati!n;%

LifeLine-Me%iCa!hE P "! P an .resentin" +ifeline , MediCashS .lus health Insurance lans fr!) M=Y+ that r!vide $!u su !rt '$ "ivin" $!u h!s ital cash 'enefit, #henever $!u are

h!s italiCed% Thr!u"h this lan $!u #ill "et a fi*ed 'enefit t!#ards h!s italiCati!n, ICU and recu erati!n 9 !st h!s italiCati!n;% And the sur"ical e* enses !f a fi*ed +u) ,su) a)!unt #ill 'e aid under +ife+ine 4 MediCashS .lus f!r )!re than 166 listed sur"eries that $!u )a$ under"!%

18

LifeLine-/e ne!!E P an Ma* =e# Y!r( +ifeIs +ife+ine,LellnessS is a health lan, #hich #!uld r!vide $!u 056,de"ree 'enefit in ter)s !f l!n" tenure !f c!vera"e, c!vera"e f!r 16 critical illnesses, and er)issi'le ta* 'enefit under an Inc!)e Ta* Act%

LifeLine-/e ne!!E P "! P an Ma* =e# Y!r( +ifeIs +ife+ine,LellnessS .lus health lan r!vides a #!nderful 'enefit s$ste) in ter)s !f l!n" tenure !f c!vera"e, c!vera"e f!r 02 critical illnesses and ta* 'enefit%

LifeLine-Safet( NetE P an Rec!"niCin" the need f!r a c!) lete all r!und financial r!tecti!n f!r $!u and $!ur fa)il$, Ma* =e# Y!r( +ife Insurance C!) an$ !ffers $!u a ter) cu) health insurance , +ife+ine,Safet$ =etS , the ne# a"e insurance c!verin" death, disa'ilit$, disease and accident under !ne sin"le lan%

SOME OF T5E OT5ER PLANS ARE&

SAVIN.S PLANS& L h!le +ife .artici atin" 26 Year End!#)ent 9.ar; End!#)ent t! A"e 56 9.ar; +ife @ain .lus 26 9.ar; 12

+ife @ain .lus 2< 9.ar; +ife .a$ M!ne$ 7ac( +ife @ain End!#)ent +ife .artner

RURAL PLANS& Ma* Sura(sha Eas$ Ter) .!lic$

STRATE.IC PRODUCTS PLANS&

7ancassurance Su er Saver 7!nd Ca ital 7uilder

Additi!nal &istri'uti!n Ma* Man"al Ma* Vri(sha Ca ital 7uilder

1:

Ma* A)sure -uture 7uilder -a)il$ M!ne$ 7ac( 7!nus 7uilder 7usiness 7uilder Secure Returns 'uilders

PART-II
<6

INTRODUCTION OF TOPIC

<1

INTRODUCTION OF TOPIC
In the last fe# $ears, the )ar(et has under"!ne s!)e funda)ental chan"es in ter)s !f techn!l!"ies, s!urces !f recruit)ent, c!) etiti!n in the )ar(et etc% In an alread$ saturated )ar(et, #here the ractices li(e !achin" and raidin" are "ainin"

)!)entu), Sales r!fessi!nals are c!nstantl$ facin" ne# challen"es in !ne !f their )!st i) !rtant functi!n, Sellin"% The$ have t! face and c!n3uer vari!us challen"es t! find the 'est candidates f!r their !r"aniCati!ns #hich can )eet there tar"ets% The r!Aect f!cuses !n the challen"es facin" the Sales de art)ent in the "r!#in" insurance industr$ in India% .r!'le)s caused '$ the lac( !f s(illed ers!nnel and the increasin" de)and f!r s(illed e) l!$ees are als! discussed in the r!Aect%

In additi!n, challen"es re"ardin" the recruit)ent, trainin" and devel! )ent !f e) l!$ees are e*a)ined% The r!Aect thr!#s li"ht !n vari!us )easures ta(en '$ Sales de art)ent in insurance !r"aniCati!ns t! i) r!ve the envir!n)ent and the r!ductivit$ !f e) l!$ees%

<2

RESEARC5 MET5ODOLO.Y

<0

RESEARC5 MET5ODOLO.Y Research )eth!d!l!"$ is a #a$ t! s$ste)aticall$ s!lve the research r!'le)% It )a$ 'e underst!!d as a science !f stud$in" h!# research is d!ne% Le can sa$ that research )eth!d!l!"$ has )an$ di)ensi!ns and research )eth!ds d! c!nstitute a art !f the research )eth!d!l!"$% The stud$ !f research )eth!d!l!"$ "ives the student the necessar$ trainin" in "atherin" )aterial and arran"in" !r car,inde*in" the), artici ati!n in field #!r( #hen re3uired, and als! trainin" in techni3ues f!r the c!llecti!n !f data a r! riate t! articular r!'le), in the use !f statistics,

3uesti!nnaires and c!ntr!lled e* eri)entati!n and in rec!rdin" evidences, s!rtin" it !ut and inter retin" it% Pn!#led"e !f research )eth!d!l!"$ la$s a (e$ r!le in r!Aect #!r(% It c!nsists !f series !f acti!ns !r ste s necessar$ t! effectivel$ carr$ !ut research and the desired se3uencin" !f these ste s%

Data Co e#tion Metho%


&ata can 'e c!llected '$ .ri)ar$ as #ell as sec!ndar$ )eth!d% =+ Primar( Data So"r#e! Tuesti!nnaire )eth!ds and discussi!ns #ith the >R and the e) l!$ees #ere used t! c!llect data% Tuesti!nnaire &esi"nedB Tuesti!nnaire #as used f!r the surve$% <+ Se#on%ar( Data So"r#e! The sec!ndar$ data s!urces #ere c!llected fr!) the c!) an$ )anuals, hand'!!(s, and )ana"e)ent '!!(s and are edited t! suite the ur !se% Invest)ent in +ife Insurance is n!t a !ne,ti)e activit$% It is a c!ntinu!us activit$% The sa)e invest!r, if satisfied, #ill c!)e t! the fund a"ain and a"ain% Lhen the invest!r sends his a licati!n, it is n!t !nl$ an a licati!n, 'ut it als! c!ntains vital <1

inf!r)ati!n% M!st !f this inf!r)ati!n if ta'ulated and anal$Ced, #!uld

r!vide

i) !rtant insi"hts int! invest!r needs, references and 'ehavi!r and ena'les us t! tar"et cust!)ers need )!re accuratel$, t! achieve 'etter enetrati!n, dee er l!$alt$ and reduced c!sts% It is in this c!nte*t that direct )ar(etin" #ill assu)e increased i) !rtance% Pn!#in" the cust!)er th!r!u"hl$ is !f ut)!st i) !rtance% Unli(e the c!nsu)er "!!ds industr$, it is n!t !ssi'le f!r +ife Insurance industr$ t! test )ar(et and have il!t r!Aects 'ef!re launch% At the sa)e ti)e, f!cusin" and c!ncentratin" !n a articular "e!"ra hic area #here the fund has a str!n" resence and r!ven )ar(etin" net#!r(, can hel reduce net#!r(, can hel reduce issue e* enses and ulti)atel$ translate int! hi"her returns f!r the invest!r% Ver$ little research !n invest!r reference is availa'le, 'ut the industr$ can c!llectivel$ have a data 'an(, and share the inf!r)ati!n f!r a r! riate use% This stud$ !n +ife Insurances in India has 'een 'ased !n ri)ar$ as #ell as sec!ndar$ data s!urces% The ri)ar$ data is c!llected '$ the "ettin" the 3uesti!nnaire filled fr!) the c!))!n invest!r a'!ve the a"e !f 2<% -!r this research, I have )ade use !f a 3uesti!nnaire f!r ascertainin" the invest)ent attern !f a c!))!n invest!r% The 3uesti!nnaire c!nsisted !f 10 3uesti!ns in t!tal, each 3uesti!n havin" vari!us )ulti le ch!ices% &e endin" u !n the ch!ice selected '$ the res !ndent, each res !ndent "ets a t!tal sc!re #hich re resents his de"ree !f fav!ra'ilit$ t!#ards the (ind !f invest)ent he )a(es and his (n!#led"e a'!ut the invest)ents% The )ain ai) !f c!nductin" the surve$ usin" a 3uesti!nnaire #as t!

<<

understand the erce ti!n !f s)all invest!rs, #h! are the )!st e* l!ited in Indian ca ital Mar(et, anal$Ce the t$ e !f funds availa'le f!r the invest!r, understand the invest)ent attern !f a c!))!n invest!r, i) !rtance !f )ar(etin" Strate"ies in +ife Insurances% This #as d!ne '$ ascertainin" the avera"e res !nse !f all the sa) les f!r the t!tal 10 3uesti!ns as(ed in the 3uesti!nnaire% The results f!r the 10 3uesti!ns as(ed #ere further "ra hicall$ re resented, sh!#in" the fav!ra'ilit$ t!#ards different ara)eters% The sec!ndar$ res!urces used in the stud$ areB R R R R 7!!(s ?!urnals Ma"aCine Articles Internet Le'sites%

RESEARC5 DESI.N

E* l!rat!r$ t$ e !f research desi"ns ad! ted 'ecause s!urces !f inf!r)ati!n are relativel$ fe# and the ur !se is )erel$ t! find and t! understand the !ssi'le

acti!ns% The )aA!r ur !ses !f e* l!rat!r$ stud$ areB Identificati!n !f r!'le) The recise f!r)ulati!n !f r!'le)s includin" the identificati!n !f varia'les -!r)ulati!n !f alternative c!urse !f acti!n

<5

An e* l!rat!r$ research is !ften the first in the series !f r!Aects that cul)inates in !ne c!ncerned #ith the dra#in" !f inferences that are used as a 'asis !f )!netar$ acti!n% E* l!rat!r$ stud$ is !ften used as a intr!duct!r$ hase !f a lar"er stud$ and results are used in devel! in" s ecific techni3ue f!r lar"er stud$% Of the stud$ the relevant 3uesti!nnaire #as re ared and circulated a)!n" a stratified sa) le !f <6 e) l!$ees !f MAX +I-E I=SURA=CE +i)ited% This 3uesti!nnaire f!r)ed the 'asis f!r the vie#s !n each !f the !ints raised in the 3uesti!nnaire% The data thus !'tained f!r)ed the 'asis !f inf!r)ati!n re"ardin" the e*istin" recruit)ent and selecti!n r!cesses at MAX +I-E I=SURA=CE% and the sa)e is anal$Ced and interference is dra#n re"ardin" the vari!us as ects !f recruit)ent and the entire r!cess !f selecti!n at MAX +I-E I=SURA=CE

SAMPLE DESI.N Sa) lin" techni3ueB Stratified sa) lin" techni3ue is ad! ted t! c!nduct the research% Stratified ur !sive sa lin" is a selecti!n )eth!d f!r achievin" a "reater de"ree !f re resentatives, theref!re decreasin" the r!'a'le sa) lin" err!r% It is 'ased !n the c!nce t that a h!)!"ene!us ! ulati!n r!duces sa) les #ith s)aller sa) lin" err!rs than d!es a heter!"ene!us )e)'ers !f the ! ulati!n% Stratified sa) lin" is acc!) lished '$ lacin" all the

! ulati!n int! "r!u s acc!rdin" t! s!)e characteristics that is

c!))!n a)!n" the), that is h!)!"ene!us su'sets !f the ! ulati!n% Then s ecified nu)'er !f unit is ch!sen fr!) each !f the "r!u s !r strata '$ ur !sive )eans%

Samp in' P an!

<8

The sa) lin"

lan c!nsists !f sa) lin" units, e%"% fr!) functi!nal de art)ents

na)el$ Mar(etin", C!))ercial, Technical and >u)an Res!urce% These e) l!$ees c!nstitute the )an !#er in the c!) an$ #h! are en"a"ed in the da$ t! da$ functi!nin" !f the c!) an$, thus it is ver$ i) !rtant f!r the) t! understand the vari!us as ects !f the entire selecti!n r!cess and als! the i) !rtance !f erf!r)ance a raisal s$ste)% Theref!re, the$ had 'een selected f!r the r!Aect sa) lin"

Samp e SiFe&- Sa) le siCe #as ta(en 166 t! underta(e the surve$%

<2

O,DECTIVE

<:

O,DECTIVE OF T5E STUDY


T! stud$ the a#areness !f -inancial .lannin" a)!n" the e! le% T! stud$ the i) !rtance !f Insurance in t!da$/s scenari!% 7rand a#areness !f vari!us rivate insurance c!) anies% .reference a)!n" different invest)ent t!!ls% .ur !se !f 'u$in" insurance% .reference in ch!!sin" channel f!r 'u$in" life insurance% Tualit$ !f service r!vided '$ a"ents and clients satisfacti!n level% Cust!)er/s erce ti!n !f i) r!ve)ents 'r!u"ht in '$ entr$ !f .rivate Insurance C!) anies% T! "enerate leads f!r Unit +in(ed Insurance and the Unit +in(ed .ensi!n .lans, '$ interactin" #ith #al(in" and e*istin" cust!)ers !f the c!) an$%

56

DATA ANALYSIS AND INTERPRETATION

51

DATA ANALYSIS AND INTERPRETATION


NUM,ER OF PEOPLE 5AVIN. INSURANCE RESPONSE Yes =! T!tal NO3 OF RESPONDENTS 86 06 166

INTERPRETATION Of the sa) le siCe !f 166 surve$ed res !ndents 86G !f the res !ndents are havin" Insurance !lic$% 06G !f the res !ndents are either n!t havin" an$ Insurance !lic$ at resent !r their !lic$ is alread$ )atured% And at resent 166G !f the res !ndents are #ith the vie# that Insurance is a t!!l t! r!tect $!ur fa)il$%

52

TYPES OF INSURANCE POLICY RESPONDENTS 5AVE


POLICY TYPE +I-E .O+ICY =O= +I-E .O+ICY 7OT> NO3 OF RESPONDENTS 8< 2< 1<

INTERPRETATION 8<G !f the res !ndents have !nl$ +ife Insurance .!lic$% #hile 1<G !f the res !ndents have '!th3

25% of the respondents have only Non- life Policy.

GS!)e !f the res !ndents ! ted f!r t#! !r )!re than t#! ite)sU

50

PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

COMPANYHS NAME L.I.C. RELIANCE LIFE IN !RANCE ICICI PR!"EN#IAL $I LIFE %a& Ne' (or) Life #*#AL

NO3OF RESPONDENT 82 0 16 8 2 166

INTERPRETATION 82G !f the e! le c!ntacted refer +IC !lic$ t! an$ !ther and theref!re it is ran(ed n!%1 '$ that ercent !f res !ndents%

51

,ENEFITS OF INSURANCE PERCEIVED ,Y RESPONDENTS


,ENEFITS C!ver -uture Uncertaint$ Ta* &educti!ns -uture Invest)ent TOTA+ NO3OF RESPONDENTS << 26 2< 166 S5ARE *I+ << 26 2< 166

[Fig 4]
Future Investment 25% Cover Future Uncertainty 55%

Tax Deductions 20%

INTERPRETATION <<G !f the res !ndents 'elieve that c!verin" future uncertaint$ is the 'i""est 'enefit !f an insurance !lic$% Lhereas, 26G and 2<G !f the) 'elieve that the !ther 'enefits are Ta* deducti!n and future invest)ents res ectivel$%

5<

FEATURES OF INSURANCE POLICY T5AT ATTRACTED RESPONDENTS


FEATURE M!ne$ 7ac( @uarantee +ar"er Ris( C!vera"e Eas$ Access t! A"ents +!# .re)iu) C!) an$/s Re utati!n TOTA+ NO3OF RESPONDENTS 1< 08 8 06 11 166

INTERPRETATION MaA!rit$ !f the res !ndent 908G; f!und lar"er ris( c!vera"e as the )!st attracted feature !f the all% Mini)u) res !ndents 98G; ! ted f!r eas$ access t! a"ents%

55

PEOPLE PERCEPTION A,OUT INSURANCE RESPONSE NO3 OF RESPONDENTS 21 81 166 S5ARE *I+

A savin" t!!l A ta* savin" device A t!!l t! r!tect $!ur fa)il$

21G 81G 166G

INT !"! T#TI$N 21G !f the res !ndents have erce ti!n !f Insurance 'ein" a savin" t!!l% And 81G !f the res !ndents have erce ti!n !f Insurance 'ein" a ta* savin" device% 7ut 166G !f the res !ndents are #ith the vie# that Insurance is a t!!l t! r!tect $!ur fa)il$% GS!)e !f the res !ndents ! ted f!r t#! !r )!re than t#! ite)sU

58

PERSONS 5AVIN. INSURANCE FOR Re!pon!e self s !use children arents all No of re!pon%ent! 16 22 21 12 11

INTERPRETATION A)!n" that 12G e! le #h! havin" insurance, the$ have insurance 16G f!r self, 22Gf!r s !use ,21G f!r children and 12G f!r their arents and 11G f!r all fa)il$ )e)'er%

REASONS ,E5IND TA4IN. INSURANCE RESPONSE NO3 OF RESPONDENTS 52

Ta* savin" Savin" M Invest)ent -a)il$ r!tecti!n

26 26 166

INTERPRETATION 26G !f the Res !ndents ! ted f!r Insurance f!r ta* savin" 'enefits and savin"Minvest)ent '!th% 7ut all !f the), i%e% 166G !f the res !ndents have ! ted f!r insurance f!r their fa)il$ r!tecti!n%

[ o+e of the respondents opted for t'o or +ore than t'o ite+s,

5:

SATISFACTION OF RESPONDENTS /IT5 RESPECT TO POLICY RESPONSE Satisfied =!t satisfied =!t Res !nded T!tal NO3 OF RESPONDENTS 56 16 6 166

INTERPRETATION 56G !f the res !ndents are )!re !r less satisfied #ith their e*istin" !lic$% 16G !f the res !ndents are n!t satisfied #ith their e*istin" !lic$% In this case all !f th!se #h! have ta(en a !lic$ have res !nded%

86

SATISFACTION OF JVE RESPONDENTS /IT5 RESPECT TO SERVICE A.ENT RESPONSE Satisfied =!t satisfied =!t Res !nded T!tal NO3 OF RESPONDENTS 1< << 6 166

INTERPRETATION 1<G !f the res !ndents are satisfied #ith their e*istin" service a"ent% <<G !f the res !ndents are n!t satisfied #ith their e*istin" insurance a"ent% All !f th!se #h! have ta(en a !lic$ have res !nded%

81

NUM,ER OF RESPONDENTS PAYIN. TAX RESPONSE .a$in" ta* =!t a$in" ta* T!tal NO3 OF RESPONDENTS 166 6 166

INTERPRETATION Of the sa) le siCe !f 166 res !ndents, all the res !ndents are a$in" ta*%

82

RESPONDENTS PERCEPTION A,OUT ,EST FORM OF INVESTMENT FOR SECURIN. T5EIR FUTURE NO3 OF RESPONDENTS 8< 11 2< 16% 16 86

-i*ed Assets 7an( de !sits ?e#eller$ Securities i%e% '!nds, M-s Shares Insurance

INTERPRETATION 8<G !f the res !ndents are #ith the vie# that -i*ed Assets is the 'est f!r) !f invest)ent f!r securin" their future% 86G !f the res !ndents are #ith the erce ti!n that Insurance is the 'est f!r) !f invest)ent f!r securin" their future, #hich is 2nd hi"hest and this sh!#s that insurance is an i) !rtant (e$ f!r securin" $!ur future%
[ o+e of the respondents opted for t'o or +ore than t'o ite+s,

80

PEOPLEHS PERCEPTION ON APPROPRIATE A.E FOR ,UYIN. INSURANCE RESPONSE After 2< $ears After 0< $ears After 1< $ears An$ti)e NO3 OF RESPONDENTS 2: 16 6 51

INTERPRETATION 2:G !f the res !ndents are #ith the vie# that insurance sh!uld 'e '!u"ht after the a"e !f 2< $ears% 16G !f the res !ndents are #ith the vie# that insurance sh!uld 'e 'u$ed after the a"e !f 0< $ears% Lhereas, 51G !f the res !ndents are #ith the vie# that 'u$in" !f insurance d! n!t have an$ thin" t! d! #ith a"e i%e% there is n! a"e li)itati!ns% It can 'e urchased an$ ti)e acc!rdin" t! the need%

81

PEOPLES OPINION A,OUT INDIAN INSURANCE COMPANIES RESPONSE Ri"id lans =!n user friendl$ Unsatisfact!r$ services =!n A""ressive Satisfact!r$ @!!d Ver$ "!!d NO3 OF RESPONDENTS 58 2: 25 0< 21 16 6

INTERPRETATION 58G !f the res !ndents have the ! ini!n that Indian Insurance C!) anies have Ri"id lans% 2:%<G feel that Indian Insurance c!) anies are =!n,user friendl$% 25%<G feel that services !f Indian Insurance c!) anies are Unsatisfact!r$% 0<%8<G !f the res !ndents are #ith the vie# that Indian Insurance c!) anies are =!n,a""ressive% 8<

21G !f the res !ndents feel that c!) anies is Satisfact!r$%

r!ducts and services !f Indian Insurance

Lhereas !nl$ 16%2<G feel that it is @!!d en!u"h% And acc!rdin" t! the data, n! sin"le ers!n has felt that it is ver$ "!!d%

[ o+e of the respondents opted for t'o or +ore than t'o ite+s,

85

/5AT PEOPLE LOO4 FOR IN AN INSURANCE COMPANY RESPONSE NO3 OF RESPONDENT S 22 81 21 1:

A trusted na)e -riendl$ service N res !nsiveness @!!d lans Accessi'ilit$

INTERPRETATION 22G cust!)ers l!!( f!r a Trusted na)e in a c!) an$ f!r insurance% 21%<G cust!)ers l!!( f!r a "!!d lan in a c!) an$ f!r insurance% -riendl$ service N res !nsiveness and Accessi'ilit$ are als! i) !rtant fact!rs l!!(ed '$ cust!)ers in a c!) an$%
[ o+e of the respondents opted for t'o or +ore than t'o ite+s,

88

PEOPLE INTERESTED IN .OIN. FOR INSURANCE IF A SERVICE PROVIDER A/AY FROM T5E CITY OFFERS ,ETTER SERVICE PRODUCTS RESPONSE Yes =! Uncertain T!tal NO3 OF RESPONDENTS 10 11 10 166 S5ARE *I+ 10G 11G 10G 166G

INTERPRETATION The interested cust!)ers i%e% 10G are read$ t! "! f!r insurance even a#a$ fr!) a cit$ if services and r!ducts are #!rth#hile, #hich a"ain is a "!!d r!s ect 9 !tential; f!r Ma* =e# $!r( +ife Insurance t! ta(e the) !n their fav!r%

82

PEOPLE PLANNIN. FOR NE/ INVESTMENTS RESPONSE .lannin" =!t lannin" T!tal NO3 OF RESPONDENTS 28 10 166

INTERPRETATION Onl$ 10G !f the cust!)ers c!ntacted are n!t lannin" f!r ne# invest)ents resentl$% Lhereas, 28G !f the cust!)ers are still lannin" f!r ne# invest)ents this can 'e a "reat !tential f!r Ma* =e# Y!r( +ife Insurance t! ta(e the) !n their fav!r%

8:

FINDIN.S

26

FINDIN.S
1% As the e! le thin( that insurance is a t!!l t! r!tect their fa)il$ N a ta* savin" device% The$ are a#are !f the fact N realiCin" its, i) !rtance% There is a lar"e !tential f!r insurance in India% 2% The entrance !f rivate la$ers #ill increase the c!) etiti!n and it #!uld 'e a t!u"h tas( t! secure a "!!d !siti!n in )ar(et% 0% Since Ma* =e# Y!r( +ife Insurance is leadin" #ith several c!) anies/ !licies it sh!uld 'e eas$ f!r the) t! enetrate int! the )ar(et and secure a "!!d !siti!n if the$ a$ "reater attenti!n t! the service f!r)in" a l!n" and trusted relati!nshi % 1% As seen fr!) the surve$ that at resent 86G !f the cust!)er are havin" insurance !lic$ !ut !f #hich 28%<G !f the cust!)er are lannin" f!r ne# invest)ents% S! it can 'e a "!!d !tential f!r the c!) an$ and the$ sh!uld )a(e an atte) t t! tra these cust!)ers% :3 As 10G !f the cust!)ers are even read$ t! "! f!r insurance if a service r!vider a#a$ fr!) their cit$ is r!vidin" it% 7ut inturn the$ sh!uld r!vide "!!d r!ducts and services% The c!) an$ sh!uld tr$ t! c!nvince these cust!)ers and "et the) in its fav!r% art r!vided t! their cust!)er and there'$

21

CONCLUSION

22

CONCLUSION
Our e*haustive research in the field !f +ife Insurance thre# u s!)e interestin" trends #hich can 'e seen in the a'!ve anal$sis% A "eneral i) ressi!n that #e "athered durin" &ata c!llecti!n #as the i))ense a#areness and (n!#led"e a)!n" e! le a'!ut vari!us c!) anies and their insurance r!ducts% .e! le are 'e"innin" t! l!!( 'e$!nd +IC f!r their insurance needs and are #illin" t! trust rivate la$ers #ith their hard earned )!ne$% .e! le in "eneral have 'een i) ressed '$ the )ar(etin" and advertisin" ca) ai"ns !f insurance c!) anies% A hi"h enetrati!n !f rint, radi! and Televisi!n Ad ca) ai"ns !ver the $ears is 'e"innin" t! have it/s i) act n!#% An!ther heartenin" trend #as in ter)s !f e! le vie#in" insurance as a ta* savin" and invest)ent instru)ent as )uch as a r!tective !ne% A ver$ hi"h nu)'er !f res !ndents have ! ted f!r insurance f!r such ur !ses and it sh!#s h!# insurance c!) anies have 'een successful t! attract u'lic )!ne$ in recent ti)es% The "eneral satisfacti!n levels a)!n" u'lic #ith re"ards t! !lic$ and a"ents still re3uires i) r!ve)ent% 7ut therein lies the ! !rtunit$ f!r a relative la$er li(e Ma*

=e# Y!r( +ife% +IC has never 'een (n!#n f!r r!) t service !r cust!)er !riented )eth!ds and Ma* =e# Y!r( +ife can 'uild !n these fact!rs%

20

LIMITATIONS

21

LIMITATIONS
It #as difficult t! c!llect s!)e inf!r)ati!n 'ecause !f s!)e c!) an$ rules% Interacti!n #ith the e) l!$ees #as li)ited 'ecause !f the #!r( schedule% It #as difficult t! c!ver all the t$ es !f rati!s 'ecause !f lac( !f inf!r)ati!n i%e% re"ardin" invent!ries, de't!r/s turn!ver etcE%%

2<

RECOMME=&ATIO=

25

RECOMMENDATION
.!siti!nin" insurance as a )eans t! fulfillin" !ne/s duties durin" !ne/s lifeti)e% -ears relatin" t! thefts, ail)ents, death c!uld 'e addressed thr!u"h Vsensitive/ c!))unicati!n -ears relatin" t! clai)sB =eed t! testi)!nials, !siti!nin" as D#!rr$ freeF% +!# returnsB Re !siti!n insurance as a ris( c!ver, securit$ instru)ent rather than a financial invest)ent% +ac( !f understandin"B Trainin" !f Channels T! r!vide 3ualit$ advice !n r!ducts 'est suited +ac( !f Pn!#led"eB Ease !f .r!cess, si) lif$in" the r!duct and the r!cedure =eed t! r!)!te the 3ualit$ !f a#areness The 'enefitsB +evera"e !n Ris( .r!tecti!n !r Returns !riented !r '!th The r!ductB caterin" t! life sta"es =eed f!r 7randin" in InsuranceB 7randin" is )!re relevant in the Insurance )ar(et #hich n!t !nl$ faces the r!'le) !f securin" and retainin" cust!)ers in an increasin"l$ c!) etitive )ar(et lace 'ut als! e* eriences the need f!r hei"htened relevance !f the 'rand r! !siti!n in a #!rld #here 'rand has 'een ter)ed the ne# reli"i!n% In rural India, the +IC is es eciall$ s$n!n$)!us #ith insurance% 7ut in the #a(e !f c!) etiti!n insurance c!) anies have t! d! a c!nsidera'le 'rand 'uildin" e*ercise at least in ur'an India% Ade3uate ti)e, invest)ent and l!n"er,ter) )ana"e)ent !f the 'rand are ssential, n!t !nl$ f!r success 'ut als! survival% All 'rands need t! 'e 'uilt ar!und #ell, 28 r!)!te DtrustF% &e)!nstratin" clai)

differentiated and credi'le !siti!nin" that s rin"s fr!) the !r"aniCati!n/s hist!r$% The 'rand )ust n!t !nl$ 'e 'elieved 'ut lived '$ )ana"e)ent and e) l!$ees% -!cus !n different se")ents t! survive and thrive in a c!) etitive envir!n)ent% Each c!) an$ has t! ch!!se its !#n uni3ue !siti!nin" 'ased !n its uni3ue stren"ths% 7el!#,)enti!ned c!nsiderin"% !siti!nin" alternatives can 'e #!rth

VARIETY-,ASED POSITIONIN. This t$ e !f !siti!nin" is 'ased !n varieties in r!ducts and services rather than cust!)er se")ents% It is a sensi'le strate"$ f!r th!se c!) anies #h! have distinctive advanta"es !r stren"ths in !fferin" certain r!ducts and services% In the insurance industr$ t!!, it is !ssi'le t! achieve a uni3ue !siti!n '$ f!cusin" !n certain cate"!r$ !f r!ducts%

NEEDS-,ASED POSITIONIN. This is the )!st c!))!nl$ underst!!d !siti!nin" and is 'ased !n the differin" needs !f different "r!u s !f c!nsu)ers% This can 'e d!ne successfull$ if a c!) an$ has uni3ue stren"ths t! service a "r!u !f cust!)er needs 'etter than !thers% The insurance needs !f cust!)ers var$ si"nificantl$ f!r different "r!u s !f cust!)ers% The insurance needs !f $!un" fa)il$ #ith s)all children #ill 'e 3uite different fr!) that !f a fa)il$ in #hich the inc!)e,earner is cl!se t! retire)ent% >!#ever, in India )!st !f the life insurance c!) anies have a #ide variet$ !f r!ducts tail!red f!r different cust!)er needs and there is n! c!) an$ f!cusin" !n a articular cust!)er need% 22

ACCESS-,ASED POSITIONIN. .!siti!nin" !f cust!)ers can als! 'e d!ne '$ the #a$ the$ are accessi'le% That is different "r!u s !f cust!)ers )a$ 'e accessi'le in different #a$s even th!u"h the$ )a$ have si)ilar needs% Access is t$ icall$ a functi!n !f cust!)er "e!"ra h$ !r cust!)er scale% There is e*cellent ! industr$ t! e) l!$ access,'ased sect!r% !rtunit$ in the insurance

!siti!nin" '$ tar"etin" the rural insurance

The rural )ar(et f!r life insurance is ver$ different fr!) the ur'an )ar(et in ter)s !f needs, inc!)e levels and distri'uti!n 9seas!nalit$, f!r e*a) le;, enetrati!n !f )edia and s! !n% Rural )ar(et can 'e a hi"hl$ r!fita'le !siti!n if !ne is a'le t! carefull$ lan and tail!r an entire set !f l!#,c!st activities !f advertisin",

distri'uti!n, and r!duct desi"n etc% t! successfull$ e* l!it the !tential%

2:

,I,LIO.RAP5Y

:6

,I,LIO.RAP5Y /E,SITES REFERRED


###%)a*ne#$!r(life%c!) ###%irdaindia%!r" ###%thehindu'usinessline%c!)

:1

ANNEXURE

:2

ANNEXURE
PERSONAL DETAIL FORM &ATEB =AMEB -AT>ER/S =AMEB &%O%7B A@EB OCCU.ATIO=B A&&RESSB CO=TACT =UM7ERB

FAMILY 5ISTORY& =AME B A@EB OCCU.ATIO=B -AT>ER B MOT>ERB 7ROT>ERB SISTERB E,MAI+B

:0

7r!ad s$lla'us f!r re, recruit)ent e*a) f!r life insurance a"entB

1% Intr!ducti!n t! insuranceB Lhat is insurance .ur !se and need !f insurance Classificati!n !f ris( The hu)an asset Insurance as a s!cial securit$ t!!l R!le !f insurance in ec!n!)ic devel! )ent

2% .rinci les !f life assuranceB life insurance c!ntracts rinci le !f ut)!st "!!d faith insura'le interest rinci le !f inde)nit$ different ris(s

0% .re)iu) and '!nus #hat is re)iu)W .re)iu) calculati!n +ife fund Actuarial valuati!n

:1

7!nus

1% +ife insurance r!ducts 'asic ele)ents s!)e ! ular lans varia'le insurance lans salar$ savin" sche)es riders annuities "r!u insurance

<% Under#ritin" intr!ducti!n classificati!n !f ris( financial under#ritin" assessin" ris( adverse selecti!n n!n )edical under#ritin" recent rends

5% Insurance d!cu)ents r! !sal f!r) and ers!nal state)ents firstM rene#al a$)ent recei t :<

!lic$ d!cu)ent end!rse)ent r!s ectus

8% .!lic$ c!nditi!ns a"e, da$s !f "race la se and n!n, f!rfeiture aid u value revival assi"n)ent, n!)inati!n surrenders and l!an f!recl!sure alterati!ns )arried #!)en/s r! ert$ act !lic$

2% Clai)s )aturit$ clai)s survival 'enefit a$)ents death clai)s accident and disa'ilit$ 'enefits clai)s c!ncessi!ns%

:% Unit lin(ed life insurance r!ducts :5

#hat is lin(ed !lic$ ! ti!n !f funds net asset value 9=AV; fle*i'ilit$ l!c( in char"es U+I. and traditi!nal insurance Annuities and ensi!ns

16% Insurance a"enc$ definiti!n !f an a"ent a"ents/ re"ulati!n r!cedure f!r 'ec!)in" an a"ent )eth!ds !f re)uneratin" a"ents a"enc$ as a r!fessi!n functi!ns !f a"ents res !nsi'ilities !f an a"ent re re3uisites f!r success ethical 'ehavi!r

11% +a# and re"ulati!ns insurance act 1:02 +IC act 1:<5 :8

IR&A act 1::: C!nsu)er r!tecti!n act 1:25 9CO.A; O)'uds)an Inc!)e ta* act ML. act Rural and s!cial sect!r Micr! insurance

:2