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EXECUTIVE SUMMARY

Overall, the life insurance and pension sector is set for rapid changes and growth in
the years ahead. Delivering service, building trust and being innovative are key
areas in which any company will have to excel in order to do well in the long road
ahead. Different companies will take different approaches and it would be myriad of
solutions that will be found to delight the Indian customer.
During the first part, I was given complete classroom training about the various unit
linked as well as the traditional plans and solutions which the company offers.
Later, Market esearch was done through various activities and tele!calling which
are discussed further in the report. "ctivities led to practical exposure and taught me
the aspects of customer dealing.
#inally, interesting conclusions were drawn out of the data collected regarding the
"wareness of #inancial $lanning among the people in today%s environment.
It was great experience because selling an insurance product demands a great deal
of confidence and product knowledge.
1

INDUSTRY PROFILE
Overview
With largest !"#er $% li%e is!ra&e '$li&ies i %$r&e i the w$rl() Is!ra&e
ha''es t$ #e a "ega $''$rt!it* i I(ia+ It,s a #!siess gr$wig at the rate
$% -./01 'er &et a!all*+
T$gether with #a2ig servi&es) it a((s a#$!t 3 'er&et t$ the &$!tr*,s 4DP
+I s'ite $% all this gr$wth the statisti&s $% the 'eetrati$ $% the is!ra&e i
the &$!tr* is ver* '$$r+ Nearl* 51 'er &et $% I(ia '$'!lati$ is with$!t li%e
is!ra&e &$ver while health is!ra&e a( $/li%e is!ra&e &$ti!es t$ #e
#el$w iterati$al sta(ar(s+ A( this 'art $% the '$'!lati$ is als$ s!#6e&t
t$ wea2 s$&ial se&!rit* a( 'esi$ s*ste"s with har(l* a* $l( age i&$"e
se&!rit*+ This it/sel% is a i(i&at$r that gr$wth '$tetial %$r the is!ra&e
se&t$r is i""ese+
7ist$ri&al Pers'e&tive
&he insurance came to India from '() with the establishment of the Oriental Life
insurance *orporation in +,+,.&he Indian life insurance company act +-+. was the
first statutory body that started to regulate the life insurance business in India. /y
+-01 about +02 Indian, +1 foreign and 30 provident firms were been established in
India. &hen the central government took over these companies and as a result the
2

LI* was formed. 4ince then LI* has worked towards spreading life insurance and
building a wide network across the length and the breath of the country.
I"'$rtat "ilest$es i the li%e is!ra&e #!siess i I(ia8
+-+.5 &he Indian Life "ssurance *ompanies "ct enacted as the first statute to
regulate the life insurance business.
+-015 .20 Indian and foreign insurers and provident societies were taken over by the
central government and nationali6ed. LI* formed by an "ct of $arliament! LI* "ct
+-01! with a capital contribution of s.0 cr. from the 7overnment of India.
I"'$rtat "ilest$es i the geeral is!ra&e #!siess i I(ia
are8
+-835 &he Indian Mercantile Insurance Ltd. set up! the first company to transact all
classes of general insurance business.
+-035 7eneral Insurance *ouncil, a wing of the Insurance "ssociation of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
+-3.5 &he general insurance business in India nationali6ed through &he 7eneral
Insurance /usiness 9:ationali6ation; "ct, +-3. with effect from +st <anuary +-3=.
+83 insurers amalgamated and grouped into four companies! the :ational Insurance
*ompany Limited, the :ew India "ssurance *ompany Limited, the Oriental
3

Insurance *ompany Ltd. and the 'nited India Insurance *ompany Ltd. 7I*
incorporated as a company.
Is!ra&e Se&t$r Re%$r"s
Pri$r t$ li#erali9ati$ $% Is!ra&e i(!str*) Li%e is!ra&e was
"$$'$l* $% LIC+
In +--=, Malhotra *ommittee! headed by former #inance 4ecretary and /I
7overnor .:. Malhotra! was formed to evaluate the Indian insurance industry and
recommend its future direction. &he Malhotra committee was set up with the
ob>ective of complementing the reforms initiated in the financial sector. &he reforms
were aimed at creating a more efficient and competitive financial system suitable for
the re?uirements of the economy keeping in mind the structural changes currently
underway and recogni6ing that insurance is an important part of the overall financial
system where it was necessary to address the need for similar reforms. In +--2, the
committee submitted the report and some of the key recommendations included5
Str!&t!re
7overnment stake in the insurance *ompanies to be brought down to 08@.
7overnment should take over the holdings of 7I* and its subsidiaries so that these
subsidiaries can act as independent corporations.
C$"'etiti$
$rivate *ompanies with a minimum paid up capital of s.+ billion should be allowed
4

to enter the sector. :o *ompany should deal in both Life and 7eneral Insurance
through a single entity. #oreign companies may be allowed to enter the industry in
collaboration with the domestic companies.
Reg!lat$r* :$(*
&he Insurance "ct should be changed. "n Insurance egulatory body should be set
up. *ontroller of Insurance! a part of the #inance Ministry! should be made
independent
Ivest"ets
Mandatory Investments of LI* Life #und in government securities to be reduced from
30@ to 08@. 7I* and its subsidiaries are not to hold more than 0@ in any company
9there current holdings to be brought down to this level over a period of time;
C!st$"er Servi&e
LI* should pay interest on delays in payments beyond =8 days. Insurance
companies must be encouraged to set up unit linked pension plans. *omputeri6ation
of operations and updating of technology is to be carried out in the insurance
industry.
STATISTICS ;INDIAN < 4LO:AL=
&his section gives the users important and detailed statistics of the Indian as well as
the 7lobal insurance industry. &hese statistics would give important insights of
where the respective markets are headed for.
5

&he global life insurance market stands at A+,0.+.. billion while the non!life
insurance market is placed at A-...2 billion.
&he 'nited 4tates itself accounts for about one!third of the A.22=.1 billion
global insurance market and <apan stands next with a .8.1.@ share.
India takes the .=rd position with '4 A-.-== billion annual premium
collections and a meager 8.2+@ share.
Out of one billion people in India, only =0 million people are covered by
insurance.
IndiaBs life insurance premium as a percentage of 7D$ is >ust +.33 per cent.
&he income derived by 7I* and its subsidiary companies through investment
was s..2-+.31 crore and the investable fund generated was s..,2= crore
in +---!.888.
Indian insurance market is set to touch A.0 billion by .8+8, on the assumption
of a 3 per cent real annual growth in 7D$.

6

NATURE OF INDUSTRY
&he insurance industry provides protection against financial losses resulting from a
variety of perils. /y purchasing insurance policies, individuals and businesses can
receive reimbursement for losses due to car accidents, theft of property, and fire and
storm damage) medical expenses) and loss of income due to disability or death.
&he insurance industry consists mainly of insurance carriers 9or insurers; and
insurance agencies and brokerages. In general, insurance carriers are large
companies that provide insurance and assume the risks covered by the policy.
Insurance agencies and brokerages sell insurance policies for the carriers.
Insurance companies assume the risk associated with annuities and insurance
policies and assign premiums to be paid for the policies. In the policy, the companies
states the length and conditions of the agreement, exactly which losses it will provide
compensation for, and how much will be awarded.
&he premium charged for the policy is based primarily on the amount to be awarded
in case of loss, as well as the likelihood that the insurance carrier will actually have
to pay. In order to be able to compensate policyholders for their losses, insurance
companies invest the money they receive in premiums, building up a portfolio of
financial assets and income!producing real estate which can then be used to pay off
any future claims that may be brought.
7

&here are two basic types of insurance carriers5 Direct and Reinsurance.
Dire&t &arriers are responsible for the initial underwriting of insurance policies and
annuities, while Reis!ra&e &arriers assume all or part of the risk associated with
the existing insurance policies originally underwritten by other insurance carriers.
Direct insurance carriers offer a variety of insurance policies.
Life insurance provides financial protection to beneficiariesCusually spouses and
dependent childrenCupon the death of the insured.
Disability insurance supplies a preset income to an insured person who is unable
to work due to in>ury or illness
Health insurance pays the expenses resulting from accidents and illness.
An Annuity 9a contract or a group of contracts that furnishes a periodic income at
regular intervals for a specified period; provides a steady income during retirement
for the remainder of one%s life.
Property-casualty insurance protects against loss or damage to property resulting
from ha6ards such as fire, theft, and natural disasters.
Liability insurance shields policyholders from financial responsibility for in>uries to
others or for damage to other people%s property. Most policies, such as automobile
and homeowner%s insurance, combine both property!casualty and liability coverage.
8

*ompanies that underwrite this kind of insurance are called property!casualty
carriers.
What is Li%e Is!ra&e>
Duman life is sub>ect to risks of death and disability due to natural and accidental
causes. Ehen human life is lost or a person is disabled permanently or temporarily,
there is a loss of income to the household. &he family is put to hardship. isks are
unpredictable. DeathFdisability may occur when one least expects it. &here are a
number of life insurance products which offer protection and also coupled with
savings.
" Ter" is!ra&e product provides a fixed amount of money on death during the
period of contract.
" Wh$le Li%e is!ra&e product provides a fixed amount of money on death.
"n E($w"et Ass!ra&e product provided a fixed amount of money either on
death during the period of contract or at the expiry of contract if life assured is alive.
" M$e* :a&2 Ass!ra&e product provides not only fixed amounts which are
payable on specified dates during the period of contract, but also the full amount of
money assured on death during the period of contract.
9

"n A!it* 'r$(!&t provides a series of monthly payments on stipulated dates
provided that the life assured is alive on the stipulated dates.
" Li2e( 'r$(!&t provides not only a fixed amount of money on death but also
sums of money which are linked with the underlying value of assets on the desired
dates.
&here are a variety of life insurance products to suit to the needs of various
categories of peopleCchildren, youth, women, middle!aged persons, old people) and
also rural people, film actors and unorgani6ed laborers.
Life insurance products could be purchased from registered life insurers notified by
the ID". Insurers appoint insurance agents to sell their products.
"s per regulations, insurers have to give the various features of the products at the
point of sale. &he insured should also go through the various terms and conditions of
the products and understand what they have bought and met their insurance needs.
&hey ought to understand the claim procedures so that they know what to do in the
event of a loss.
10

INDIAN INSURANCE SECTOR
RE4ULATORY :ODY
Insurance is a federal sub>ect in India. &he primary legislation that deals with
insurance business in India is5 Insurance "ct, +-=,, and Insurance egulatory G
Development "uthority "ct, +---.
The Is!ra&e Reg!lat$r* a( Devel$'"et
A!th$rit* ;IRDA=
eforms in the Insurance sector were initiated with the passage of the ID" /ill in
$arliament in December +---. &he ID" since its incorporation as a statutory body
in "pril .888 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.
&he other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
ID"%s online service for issue and renewal of licenses to agents. 4ince being set up
as an independent statutory body the ID" has put in a framework of globally
compatible regulations.
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MISSION/IRDA
?T$ 'r$te&t the iterests $% the '$li&*h$l(ers) t$ reg!late) 'r$"$te a( es!re
$r(erl* gr$wth $% the is!ra&e i(!str* a( %$r "atters &$e&te( therewith
$r i&i(etal theret$+@
12

IMPACT OF LI:ERALISATION
&he introduction of private players in the industry has added to the colors in the dull
industry. &he initiatives taken by the private players are very competitive and have
given immense competition to the on time monopoly of the market LI*. 4ince the
advent of the private players in the market the industry has seen new and innovative
steps taken by the players in this sector.
&he new players have improved the service ?uality of the insurance. "s a result LI*
down the years have seen the declining phase in its career. &he market share was
distributed among the private players. &hough LI* still holds the 3-@ of the
insurance sector but the upcoming natures of these private players are enough to
give more competition to LI* in the near future. LI* market share has decreased
from -0@ 9.88.!8=; to ,+ @9 .882!80;.
LI* has the current market share of 3-@.
"mong the private players I*I*I $rudential has the maximum of approx. 0.18@
#ollowed by /a>a> "llian6 9=..3 @; and DD#* 4tandard Life of about =.++@.
/elow is the table that shows the market share of various players of the industry.
&he following companies have the rest of the market share of the insurance industry.
13

*OM$":H :"MI M"(I& 4D"I
LIC 3-.=8
ICICI PRUDENTIAL 0.1=
:AAAA ALLIANB =..3
7DFC STANDARD LIFE =.++
:IRLA SUNLIFE ..=.
TATA AI4 +.20
S:I LIFE +..2
MAX NEWYORC 8.-8
AVIVA LIFE 8.,.
IN4 VYSYA 8.11
OM COTAC LIFE 8.02
AMP SANMAR 8.=,
METLIFE 8.==
RELIANCE LIFE 8.80
&he liberali6ation of the Indian insurance sector has opened new doors to private
competition and the new and improved insurance sector today promises several new
>ob opportunities. Eith private players now in the field, there will be innovative
products, better packaging, improved customer service, and, most importantly,
greater employment opportunities.
There are a !"#er $% $'ti$s t$ &h$$se %r$" %$r a &areer i Is!ra&e+ I(eall*
a is!ra&e &$"'a* will have $'eigs i the %$ll$wig %iel(s8
"ctuaries
'nderwriter
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4urveyor
Investment
Marketing G Distribution
A&t!aries
Ivaluates the risk for companies to be used for strategic management
decisions.
"ctuaries use their analytical skills to predict the risk of writing insurance
policies through the use of mathematical, statistical and economic models.
"n actuary not only fixes the premium rates for new products, but also revises
both products and prices. &hey calculate costs to assume ris
U(erwriters
Insurance underwriters review insurance applications and decide whether
they should be accepted or re>ected based on the degree of risks involved in
insuring the people or ob>ects of concern.
In the life insurance business, an underwriter is expected to filter the Jbad or
substandard livesJ. Ehereas, in the general insurance segment, he takes care
of risk management+
AgetsD:r$2ers8
Insurance agents may work for one insurance company or as independent
agents selling for several companies.
15

Insurance agents and brokers can find openings in the health insurance
sector, financial planning services, retirement planning counseling or even
provide other services, for e.g. sell mutual funds, annuities etc.
S!rve*$rDL$ss Assess$r8
4urveyors are professionals who assess the loss or damage and serve as a
link between the insurer and the insured.
&hey usually function only in non life business.
&heir >ob is to assess the actual loss and avoid false claims.
SalesDMar2etig8
"nd who can forget the guys who make and break a brand. &hey would be
re?uired in a large number in order to promote the number of products that will be
launched by numerous companies in the insurance sector.
CURRENT SCENARIO OF T7E INDUSTRY
16

INSURANCE MARCET IN INDIA
India with about .88 million middle class household shows a huge untapped
potential for players in the insurance industry. 4aturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance ma>ors. &he insurance sector in India has come to a position of very high
potential and competitiveness in the market.
Innovative products and aggressive distribution have become the say of the day.
Indians, have always seen life insurance as a tax saving device, are now suddenly
turning to the private sector that are providing them new products and variety for
their choice. Life insurance industry is waiting for a big growth as many Indian and
foreign companies are waiting in the line for the green signal to start their operations.
&he Indian consumer should be ready now because the market is going to give them
an array of products, different in price, features and benefits. Dow the customer is
going to make his choice will determine the future of the industry.
CUSTOMER SERVICE
*onsumers remain the most important centre of the insurance sector. "fter the entry
of the foreign players the industry is seeing a lot of competition and thus
improvement of the customer service in the industry. *omputeri6ation of operations
and updating of technology has become imperative in the current scenario. #oreign
players are bringing in international best practices in service through use of latest
technologies. &he one time monopoly of the LI* and its agents are now
17

7oing through a through revision and training programs to catch up with the other
private players. &hough lot is being done for the increased customer service and
adding technology to it but there is a long way to go and various customer surveys
indicate that the standards are still below customer expectation levels.
DISTRI:UTION C7ANNELS
&ill date insurance agents still remain the main source through which insurance
products are sold. &he concept is very well established in the country like India but
still the increasing use of other sources is imperative. It therefore makes sense to
look at well! balanced, alternative channels of distribution.
LI* has already well established and have an extensive distribution channel and
presence. :ew players may find it expensive and time consuming to bring up a
distribution network to such standards. &herefore they are looking to the diverse
areas of distribution channel to have an advantage. "t present the distribution
channels that are available in the market are5
K Direct sellingFetail
K *orporate agents
K 7roup selling
K /rokers and cooperative societies
K /anc assurance
DIRECT SELLIN4DRETAIL
Direct selling or retail business is carried out by "gents of the company. &his is the
main distribution channel due to the complexity of most Insurance products
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9Indowment, Ehole of Life, 'nit Linked;. &his tends to be the focus of most
companies due to its past success as well as its ability to deliver the right advice.
Dowever, this channel can be expensive and it is a time consuming sales process.
"n agent is the public face of an Insurance company. Dence it is important that this
face is always smiling and presentable and the facts and figures at hisF her
command are updated and correct.
"n agent should be a pleasing personality with complete knowledge about the
various plans and solutions which the company has to offer and must also
understand the customer%s psychology well to deal in an efficient manner.
:ANCASSURANCE
/anc assurance is the distribution of insurance products through the bankBs
distribution channel. It is a phenomenon wherein insurance products are offered
through the distribution channels of the banking services along with a complete
range of banking and investment products and services. &o put it simply, /anc
assurance, tries to exploit synergies between both the insurance companies and
banks.
A(vatages t$ #a2s
$roductivity of the employees increases.
/y providing customers with both the services under one roof, they
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can improve overall customer satisfaction resulting in higher customer retention
levels.
Increase in return on assets by building fee income through the sale of
insurance products.
*an leverage on face!to!face contacts and awareness about the
financial *onditions of customers to sell insurance products.
/anks can cross sell insurance products e.g.5 &erm insurance products with loans.
A(vatages t$ is!rers
Insurers can exploit the banksB wide network of branches for distribution of
products. &he penetration of banksB branches into the rural areas can be
utili6ed to sell products in those areas.
*ustomer database like customersB financial standing, spending habits,
investment and purchase capability can be used to customi6e products and
sell accordingly.
4ince banks have already established relationship with customers, conversion
ratio of leads to sales is likely to be high. #urther service aspect can also be
tackled easily.
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A(vatages t$ &$s!"ers
*omprehensive financial advisory services under one roof. i.e., insurance
services along with other financial services such as banking, mutual funds,
personal loans etc.
Inhanced convenience on the part of the insured
Iasy accesses for claims, as banks are a regular go.
Innovative and better product ranges
W7AT DOES LIFE INSURANCE 7AVE TO OFFER>
Life insurance is many different things to many different people. #or some, it is a
premium to be paid on time. #or others it offers li?uidity since cash can be borrowed
when needed. #or the investment!minded, it denotes a constantly growing capital
account and numerous other benefits.
&he contractual guarantee is the promise to pay, backed by one of the oldest and
most stably regulated financial industry operating in the Indian sub!continent today.
-= Is!ra&e :!*s Ti"e a( M$e*
$eople like to refer to life insurance as time insurance, the reason being that life
insurance proceeds are paid to the insuredBs beneficiaries in case of death. &he
money proffered by life insurance helps buy time to ad>ust to the change of
circumstances. Insurance provides large amounts of cash that will keep the lifestyle
for the survivors the way it was before the insuredBs death.
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0= Is!ra&e O%%ers Pea&e $% Mi(
#or the person who buys an insurance policy, it offers absolute and complete peace
of mind. De or she knows that the decision made by him will provide sound benefits
in the future, whether or not the individual may live to see it.
E= M!lti'le A''li&ati$s
&he future is uncertain for each and every one. :o one knows how long De or she
will live. &he investment benefit is paid to the insuredBs beneficiaries after his death
or it can be used during the life as well. Life insurance policy owners can turn to the
cash value of the policy in case of a financial emergency when all avenues are either
blocked or denied.
F= E(!rig Elasti&it*
4ince life insurance is flexible enough to serve several needs, the insured can keep
several long!term goals in mind once he or she invests in the insurance plan. &he
cash value of the policy can be allocated towards augmenting the monthly income
during the retirement years. Leisure years should be turned into pleasure years.
$ermanent life insurance is designed on the concepts of long!term flexibility.
.= Fia&ial Se&!rit*
&he insurance policy offers contractual guarantees to people looking for peace of
mind when they buy life insurance. Life insurance offers complete financial security.
&he purchase of life insurance demonstrates concern for a familyBs future financial
well being.
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G= Regar( %$r Fa"il*
&he purchase of life insurance clearly displays care and concern for the people the
policy owner loves.
3= Is!ra&e is Sa%er
:o financial institution can do what life insurance does. :o industry can back its
products with reserves and surplus as sound as those of the insurance industry. &he
proof of strength and safety that insurance companies have ensured even under the
most adverse of conditions is a matter of pride for the entire insurance industry. #or
generation after generation, life insurance has been acclaimed as the very
benchmark of security against which the other industries are measured.
OPPORTUNITIES FOR INSURANCE COMPANIES
In the now open sector on insurance, the following is what I feel will determine the
success of the company in particular and the industry in general5
A &hage i the attit!(e $% the '$'!lati$
Indians have always been wary of employing their hard!earned money in a venture
that will pay them on their death. Insurance has always been used as a &ax saving
tool. :o more, no less. It is upon the insurers to educate the people to secureFinsure
their future against any unknown calamity and make a shield around their families
and businesses.
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A $'e a( tras'aret evir$"et &reate( !(er the IRDA+
&he reason for this being on the top of our understanding is that when ever we have
seen any sector open up in India there are always grey areas and unsure policies.
&hese are not exactly what any player, be it Indian or foreign, looks for. It creates an
air of uncertainty in all the decision making process. Insurance as a sector re?uires
players who are strong financially and are willing to wait for returns. &heir confidence
can be bolstered only if there is an open and a transparent policy guidelines. &his will
also help the consumers feel safe that the regulatory is an active one and cares to
do everything possible to keep things under control and help the insurance
environment grow maturely. " well!established distribution network.
&o cater to the largest democracy in the world is by no means a cakewalk. Insurance
profits are directly related to number of insured and this is in turn related to the
reach.
Traie( 'r$%essi$als t$ #!il( a( sell the 'r$(!&t+
It is said that the insurance agent is the best salesman in the world. De makes you
pay, regularly, an amount promising to pay back only on your death. &hus the
players will re?uire an excellent sales team to sell their products in the now
competitive environment.
E&$!rage"et $% ew a( #etter 'r$(!&ts a( lettig the ha&2e*e( $es
(ie $!t+
&his will itself ensure the market grows. "nd that every classFsociety gets a product
that best suits them.
24

SPECIAL PROVISIONS
&he Income &ax "ct and Life Insurance policies
'nder 4ection +89+8D;, any sum received under a Life Insurance policy 9not
being a Ce* Ma policy; is also exempt from taxation. /ut it is wise to remember
that $ensions received from A!it* plans are not exempted from Income &ax.
4ection ,8* provides a deduction up to s.+, 88,888F! to an individual assesses
for any amount paid as a premium.
POLICY7OLDERS 4RIEVANCES
$olicyholders may have complaints against insurers either in respect of their policies
or their claims. "s per egulations for $rotection of policyholders% interests, .88.,
every insurer should have in place, a grievance reprisal system to address the
complaints of policyholders. &he ID" has a 7rievance eprisal *ell which plays a
facilitative role by taking up complaints against insurers with the respective
companies for speedy resolution. &he ID" however does not ad>udicate on
complaints.
25

SWOT ANALYSIS OF INSURANCE INDUSTRY
STREN4T7
+. /est returns with the added advantage of +88@ life insurance coverage.
.. 7ood option for new investors into the market as all the money is invested by best
fund managers so with less knowledge also they can earn good eturns.
=. /est commission charges paid to the agents which vary from +.@ to =0@ which is
much higher as compared to mutual funds i.e. , only .!..0@.
WEACNESS
+. DD#* 4LI* could not able to match LI* in remote areas services.
.. Misleading facts given by life advisors about the returns of 'LI$s.
=. Didden charges taken by the companies.
2. Less $romotional *ampaigns.
OPPORTUNITY
+. ,8 percent of Indian population is still under insured. 4o there is
a big opportunity for insurance companies.
0+ "s the stock market can be under the mark any time so it can
bring loss to the investors but as in 'LI$s there is proper mixture of debt
securities and e?uity so the loss is incurred during dark trading days also.
=. 'nit!linked products are exempted from tax and they provide life insurance.
26

2. Increasing consumer awareness about Insurance and its use.

T7REAT
-+ *annibalism within the industry by providing misleading figures to the investors.
.. 7ovt.%s instability has a long term repercussions affecting company%s policies
and its growth.

27

COMPANY,S PROFILE
INTRODUCTION
Delping Indians experience the >oy of home ownership.
Incorporated in +-33 with a share capital of s. +8 crores, DD#* has since emerged
as the largest residential mortgage finance institution in the country. &he corporation
has had a series of share issues raising its capital to s. ++- crores. DD#* operates
through 30 locations throughout the country with its *orporate Dead?uarters in
Mumbai, India.
O:AECTIVES AND :ACC4ROUND
:a&2gr$!(
DD#* was incorporated in +-33 with the primary ob>ective of meeting a social need
L that of promoting home ownership by providing long!term finance to households for
their housing needs. DD#* was promoted with an initial share capital of s. +88
million.
28

:!siess O#6e&tives
&he primary ob>ective of DD#* is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner,
and to promote home ownership. "nother ob>ective
Is to increase the flow of resources to the housing sector by integrating the housing
finance sector with the overall domestic financial markets..
OR4ANIBATION AND MANA4EMENT
DD#* is a professionally managed organi6ation with a board of directors consisting
of eminent persons who represent various fields including finance, taxation,
construction and urban policy G development. &he board primarily focuses on
strategy formulation, policy and control, designed to deliver increasing value to
shareholders.
FOUNDER H Mr+ 7as"!2h#hai Pare2h
:rie% 'r$%ile $% the :$ar( $% Dire&t$rs
Mr. Deepak 4 $arekh is the *hairman of the *ompany. De is also the Ixecutive
*hairman of Dousing Development #inance *orporation Limited 9DD#* Limited;.
De >oined DD#* Limited in a senior management position in +-3,. De was
inducted as a whole!time director of DD#* Limited in +-,0 and was appointed as
its Ixecutive *hairman in +--=. De is the *hief Ixecutive Officer of DD#*
Limited. Mr. $arekh is a #ellow of the Institute of *hartered "ccountants 9Ingland
29

G Eales;.

Mr. (eki M Mistry >oined the /oard of Directors of the *ompany in December,
.888. De is currently the Managing Director of DD#* Limited. De >oined DD#*
Limited in +-,+ and became an Ixecutive Director in +--=. De was appointed as
its Managing Director in :ovember, .888. Mr. Mistry is a #ellow of the Institute of
*hartered
"ccountants of India and a member of the Michigan "ssociation of *ertified $ublic
"ccountants.
Mr. "lexander M *rombie >oined the /oard of Directors of the *ompany in "pril,
.88.. De has been with the 4tandard Life 7roup for =2 years holding various
senior management positions. De was appointed as the 7roup *hief Ixecutive of
the 4tandard Life 7roup in March .882. Mr. *rombie is a fellow of the #aculty of
"ctuaries in 4cotland.

Ms. Marcia D *ampbell is currently the 7roup Operations Director in the 4tandard
Life group and is responsible for 7roup Operations, "sia $acific Development,
4trategy G $lanning, *orporate esponsibility and 4hared 4ervices *entre. Ms.
*ampbell >oined the /oard of Directors in :ovember .880.

Mr. (eith : 4keoch is currently the *hief Ixecutive in 4tandard Life Investments
Limited and is responsible for overseeing Investment $rocess G *hief Ixecutive
Officer #unction. $rior to this, Mr. 4keoch was working with MFs. <ames *apel G
*o. holding the positions of '( Iconomist, *hief Iconomist, Ixecutive Director,
Director of *ontrols and 4trategy D4/4 4ecurities and Managing Director
International I?uities. De was also responsible for Iconomic and Investment
30

4trategy research produced on a worldwide basis. Mr. 4keoch >oined the /oard of
Directors in :ovember .880.

Mr.
Mr. 7autam Divan is a practicing *hartered "ccountant and is a #ellow he
Institute of *hartered "ccountants of India. Mr. Divan was the #ormer *hairman
and Managing *ommittee Member of Midsnell 7roup International, an
International "ssociation of Independent "ccounting #irms and has authored
several papers of professional interest. Mr. Divan has wide experience in auditing
accounts of large public limited companies and nationali6ed banks, financial and
taxation planning of individuals and limited companies and also has substantial
experience in structuring overseas investments to and from India.

Mr. an>an $ant is a global Management *onsultant advising
*IOF/oards on 4trategy and *hange Management. Mr. $ant, until .88. was a
$artner G Mice!$resident at /ain G *ompany, Inc., /oston, where he led the
worldwide 'tility $ractice. De was also Director, *orporate /usiness Development
at 7eneral Ilectric head?uarters in #airfield, '4". Mr. $ant has an M/" from &he
Eharton 4chool and /I 9Donors; from /irla Institute of &echnology and 4ciences.

Mr. avi :arain is the Managing Director G *IO of :ational 4tock Ixchange of
India Limited. Mr. avi :arain was a member of the core team to set!up the
4ecurities G Ixchange /oard of India 94I/I; and is also associated with various
committees of 4I/I and the eserve /ank of India 9/I;.
31


Mr. Deepak M 4atwalekar is the Managing Director and *IO of the *ompany
since :ovember, .888. $rior to this, he was the Managing Director of DD#*
Limited since +--=. Mr. 4atwalekar obtained a /achelors Degree in &echnology
from the Indian Institute of &echnology, /ombay and a Masters Degree in
/usiness "dministration from &he "merican 'niversity, Eashington D*.

Ms. enu 4. (arnad is the Ixecutive director of DD#* Limited, is a graduate in
law and holds a Master%s degree in economics from Delhi 'niversity. 4he has
been employed with DD#* Limited since +-3, and was appointed as the
Ixecutive Director in .888. 4he is responsible for overseeing all aspects of
lending operations of DD#* Limited.
DD#* has a staff strength of +8.-, which includes professionals from the fields of
finance, law, accountancy, engineering and marketing.
SU:SIDIARY < ASSOCIATE COMPANIES
7DFC :a2
32

7DFC M!t!al F!(
7DFC Sta(ar( Li%e II
Itel et 4l$#al Servi&es Lt(+
7DFC Ch!## 4eeral Is!ra&e C$"'a* Lt(+
7DFC Realit*
Other C$"'aies C$/Pr$"$te( #* 7DFC
DD#* &rustee *ompany Ltd.
DD#* Developers Ltd.
DD#* Menture *apital Ltd.
DD#* Mentures &rustee *ompany Ltd.
33

DD#* Investments Ltd.
DD#* Doldings Ltd.
Dome Loan 4ervices India $vt. Ltd.
*redit Information /ureau 9India; Ltd

7DFC STANDARD LIFE INSURANCE
34


INTRODUCTION8
DD#* 4tandard Life Insurance *ompany Limited was one of the first companies to
be granted license by the ID" to operate in life insurance sector. Iach of the <M
player is highly rated and been conferred with many awards. DD#* is rated B"""B by
both *I4IL and I*". 4imilarly, 4tandard Life is rated B"""B both by MoodyBs and
4tandard and $oors. &hese reflect the efficiency with which DD#* and 4tandard Life
manage their asset base of s. +0,888 *r and s. 188,888 *r respectively.
DD#* 4tandard Life Insurance *ompany Ltd was incorporated on +2th "ugust .888.
DD#* is the ma>ority stakeholder in the insurance <M with ,+.2 @ stake and
35

4tandard Life has a stake of +,.1@. Mr. Deepak 4atwalekar is the MD and *IO of
the venture.
T7E PARTNERS7IP8
DD#* and 4tandard Life first came together for a possible >oint venture, to enter the
Life Insurance market, in <anuary +--0. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship ?uickly
formed. In October +--0 the companies signed a = year >oint venture agreement.
"round this time 4tandard Life purchased a 0@ stake in DD#*, further strengthening
the relationship.
In October +--,, the >oint venture agreement was renewed and additional resource
made available. "round this time 4tandard Life purchased .@ of Infrastructure
Development #inance *ompany Ltd. 9ID#*;. 4tandard Life also started to use the
services of the DD#* &reasury department to advise them upon their investments in
India.
&owards the end of +---, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level.
&herefore, in <anuary .888 an expert team from the '( >oined a hand picked team
from DD#* to form the core pro>ect team, based in Mumbai.
"round this time 4tandard Life purchased a further 0@ stake in DD#* and a 0@
stake in DD#* /ank.
36

COMPANY,S MISSION8
&o be the top life insurance company in the market.
&his not only means being the largest or the most productive company in the market,
but a combination of several things like!
*ustomer service of the highest order
Malue for money for customers
$rofessionalism in carrying out business
Innovative products to cater to different needs of different customers
'se of technology to improve service standards
Increasing market share
COMPANY,S VALUES8
SECURITY8 $roviding long term financial security to our policy holders will be
our constant endeavor. &his is done by offering life insurance and pension
products.
TRUST8 *ompany appreciates the trust placed by our policy holders in us.
Dence, company will aim to manage their investments very carefully and live
up to this trust.
37

INNOVATION8 ecogni6ing the different needs of our customers, company
will be offering a range of innovative products to meet these needs.
*ompany%s mission is to be the best new life insurance company in India and these
are the values that will guide us in this.
CEY MANA4EMENT PERSONNEL
Chair"a
Mr. Deepak 4. $arekh
:$ar( $% Dire&t$rs
Mr. (. M. Mistry
Ms. enu 4. (arnad
Mr. ". M. *rombie
Ms. Marcia D. *ampbell
Mr. :orman (eith 4keoch
Mr. 7. . Divan
Mr. 7. :. /a>pai
Mr. an>an $ant
Mr. avi :arain
Maagig Dire&t$r < CEO
Mr. D. M. 4atwalekar
38

AUDIT COMMITTEE
Daribhakti G *ompany
*hartered "ccountants
/.(. (hare G *o.
*hartered "ccountants
:a2ers
DD#* /ank Ltd.
'nion /ank of India
Indian /ank
&he 4araswat *o!operative /ank Ltd.
#ederal /ank
CNOWLED4E MANA4EMENT
Whe Sh$!l( Oe 4$ F$r Is!ra&e>
Hour insurance need will change as your life does, from starting to work to en>oying
your golden years and all the stages in between. Iach one of these stages may
pose a different insurance needFcover for you. In this section, we have drawn up the
basic life stages and help you analy6e various insurance needs accordingly.
39

Stage -8 Y$!g a( Sigle
&his is an important stage where one lays down the foundation of a successful life
ahead. &ake advantage of the time and power of compounding to ensure that you
build up your dreams, so start saving early.
Y$!r ee(s8
o4ave for a home and wedding
o&ax $lanning
o4ave for 7olden years
Stage 0 / A!st Marrie(
Marriage brings about a significant change. :ew dreams and new opportunities also
bring in additional responsibilities. Ehile both of you look forward to a happy and
secure life, it is e?ually important to ensure that eventualities don%t come in the way
of shaping your dreams.
40

Y$!r ee(s8
o $lanning for home F securing your home loan
Liability
o 4ave for vacation
o 4ave for your first child
Stage E / Pr$!( Parets
Once you have children, your need for life insurance is even more. Hou need to
protect your family from an untoward incident. Insure your protection umbrella takes
into account the future cost of securing your child%s dream. Hou will want life to go on
for your loved ones, and having enough life insurance is a way to help ensure that.
Y$!r ee(s8
o $rovide for children%s education
o 4afeguarding family against loan liabilities
o 4avings for post!retirement
Stage F / Plaig %$r Retire"et
Ehile you are busy climbing the ladder of success today, it is important for you to
take time and plan for your life after retirement. Daving an early start for retirement
planning can make a significant difference to your savings. &hink about your golden
41

years even before you have reached them. &he key is to think ahead and plan well
using your time and money.
Y$!r ee(s8
o $rovide for regular income post retirement
o Immediate &ax benefits
o Lead a secure, independent and comfortable
Life style after retirement
PRODUCT MIX
"t DD#* 4tandard Life, there is a bou?uet of insurance solutions to meet every
need. &hey cater to both, individuals as well as to companies looking to provide
benefits to their employees.
#or individuals, they have a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. One can
choose from a range of products to suit one%s life!stage and needs.
#or organi6ations they have customi6ed solutions that range from 7roup &erm
Insurance, 7ratuity, Leave Incashment and 4uperannuation $roducts.
PRODUCTS FOR INDIVIDUALS
PROTECTION ! Hou can protect your family against the loss of your income or the
burden of a loan in the event of your unfortunate demise, disability or sickness.
&hese plans offer valuable peace of mind at a small price.
42

Plas8 &erm "ssurance $lan
Loan *over &erm "ssurance $lan.
INVESTMENT ! &his includes a plan that is well suited to meet your long term
investment needs. Ee provide you with attractive long term returns through regular
bonuses.
Pla8 4ingle $remium Ehole of Life
PENSION / Our $ension $lans help you secure your financial independence even
after retirement and live a relaxed retired life.
Plas8 $ersonal $ension $lan
'nit Linked $ension
'nit Linked $ension $lus
SAVIN4 / Our 4avings $lans offer you flexible options to build savings for your
future needs such as buying a dream home or fulfilling your children%s immediate and
future needs.
Plas8 Indowment "ssurance $lan,
'nit Linked Indowment,
'nit Linked Indowment $lus,
43

Money /ack $lan,
*hildren%s $lan,
'nit Linked Houng star,
'nit Linked Houng star $lus+
4ROUP PLANS
DD#* 4tandard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit
solutions to their employees. &hey offer different products for different needs of
employers ranging from term insurance plans for pure protection to voluntary plans
such as superannuation and leave encashment.
Plas8 7roup &erm Insurance with iders
7roup &erm Insurance with $rofit!4hare
7roup 'nit!Linked $lan
#or 7ratuity
#or Defined /enefit 4uperannuation
#or Defined *ontribution 4uperannuation
7roup Leave Incashment $lan
44

RURAL CUSTOMER / "ccording to research findings, there is keenness among
rural customers to invest in savings cum protection plan with a term of five years,
especially, if the premium amount is low and affordable. (eeping this in view, DD#*
4&DN LI#I has plans like5
Plas8 /ima /achat Ho>ana.
4uper /achat Ho>ana
DISTRI:UTION OFFICES
In addition to the corporate office at Mumbai, your *ompany had +1- offices in over
+=0 citiesFtowns in the country. It has a widespread network of #inancial
*onsultants, *orporate "gents and /rokers servicing customers in these cities and
towns.
FINANCIAL CONSULTANTS
&he number of licensed #inancial *onsultants appointed by your *ompany
increased from over .=,888 in the previous year to over ==,888 in the current year.
During the year, the *ompany continued its
CURRENT SALES/ 7DFC Sta(ar( Li%e

45

?7DFC STANDARD LIFE PACIN4 A7EAD@
The Fia&ial EJ'ress -.th Ma* 0113
?7DFC Sta(ar( Li%e has re&$r(e( a str$g *ear/$/*ear gr$wth $% --0K %$r
the 'eri$( A'ril/Mar&h 011G/13) i &$"'aris$ t$ the sa"e 'eri$( 011./1G)
with a ew #!siess %irst *ear 're"i!" $% Rs+ -)10L &r$re+
I ter"s $% e%%e&tive 're"i!" i&$"e ;EPI=) whi&h gives a -1K val!e t$ a
Sigle Pre"i!" '$li&* a( is a iterati$all*/a&&e'te( i(i&at$r $% a
is!ra&e &$"'a*Ms 'er%$r"a&e) the EPI grew #* -1EK t$ Rs+ 553 &r$re
%r$" Rs+ FEG &r$re+
7DFC Sta(ar( Li%eMs gr$wth i ew #!siess is a "ai%estati$ $% the !"#er
$% lives is!re( as well as a i&rease i the average 're"i!"+ F$r the
i(ivi(!al #!siess) v$l!"e "eas!re( #* the !"#er $% lives is!re(
witesse( a E0K gr$wth+
The average 're"i!" als$ grew #* G0K t$ Rs 03).11 i 011G/13 %r$" Rs -3)111
i 011./1G+
During the year the company issued over =, -3,888 policies and has covered more
than 0, ,8,888 livesO
&able 4howcasing #inancial esults5
"pril!March "pril!March
46

$arameters .880!81
9s. *r;
.881!83
9s. *r;
7rowth
9@;
T$tal re&eive( 're"i!" GG5+F1 -.E0+0- -0L+0E
I+ New :!siess F5G+-. -105+LF ---+G.
ii+ Reewal -50+0. .1E+03 -3G+-F
E%%e&tive Pre"i!"
I&$"e ;T$tal= FEG+15 553+E1 -1E+F3
4r$!' :!siess
Pre"i!" ;EPI= FL+F1 -E.+-. -3E+.5
47
F!( Na"e O%%er Pri&es ;Rs= :i( Pri&e ;Rs=
LiN!i( F!( 0F+.--E 0E+05.3
Se&!re Maage( F!( 0F+3.G5 0E+.-L1
De%esive Maage( F!( 0L+G-.3 05+-EFL
:ala&e( Maage( F!( EF+-EF1 E0+F03E

48
F!( Na"e O%%er Pri&es ;Rs= :i( Pri&e ;Rs=
LiN!i( F!( 0F+.GG- 0F+.GG-
Se&!re Maage( F!( 00+GGGG 00+GGGG
De%esive Maage( F!( 03+EEFG 03+EEFG
:ala&e( Maage( F!( EG+0G1E EG+0G1E
EN!it* Maage( F!( FG+0G.. FG+0G..
4r$wth F!( .L+1.-0 .L+1.-0
Uit Pri&es as $ 0LD15D0113

49

FUTURE PLANS
DD#* has always been market!oriented and dynamic with respect to resource
mobili6ation as well as its lending program. &his renders it more than capable to meet
the new challenges that have emerged. Over the years, DD#* has developed a vast
client base of borrowers, depositors, shareholders and agents, and it hopes to capitali6e
on this loyal and satisfied client base for future growth. Internal systems have been
developed to be robust and agile, to take into account changes in the volatile external
environment.
DD#* has developed a network of institutions through partnerships with some of the
best institutions in the world, for providing speciali6ed financial services. Iach institution
is being fine!tuned for a specific market, while offering the entire DD#* customer base
the highest standards of ?uality in product design, facilities and service.
50

INTRODUCTION OF TOPIC
India is at a relatively nascent stage in the wealth management life cycle, albeit attractively
poised for rapid growth as economic expansion has been driving wealth creation in India.
Observing the way our country has transformed itself from a slow growing agrarian economy
into one of the worlds most dynamic economies in less than two decades, the recent Barclays
Wealth Report forecasts that India will be the worlds top wealth centre in !"#. $apgemini and
%errill &ynch released the latest World Wealth Report stating that in !!#, India led the world in
'(Is population growth, almost per cent up.
)o continue, a *+ based $elent report predicts that by !", wealth management in India would
be a ," trillion mar-et, with approximately . million households as compared to "/ million
households today. 0n important factor which contributes to Indias shining story is the Indian
middle class. 0ccording to $elent, the middle class is expected to grow to 1!! million by !"
as consumerism across sectors, including demand for financial products and services is on the
rise.
51

I4I"*D MIDODOLO7H
&he study of awareness about #inancial $lanning among the people and particularly
the insurance sector covers data collection through observation, ?uestionnaire and
interview of consumers.
T*'e $% resear&h 8
EJ'l$rat$r*8
&ype of research carried out was IP$LO"&OH in nature) the ob>ective of such
research is to determine the approximate area where the drawback of the company
lies and also to identify the course of action to solve it. #or this purpose the
information proved useful for giving right suggestion to the company.
Data C$lle&ti$8
$rimary data
4econdary data
Data used for the research work was primary in nature.
Sa"'le !it8 /
&he research process was done by interacting with number of customers during the
activities performed, which included, markets, cold calling, canopies, etc. 4ample
Design consists of andom 4ampling.
52

4ample si6e5 ! +88 people
Meth$( $% &$lle&ti$8 /
#ield procedure for gathering primary data included observation and interview
schedule in which the ?uestionnaires were filed by the interviewer.
$ersonal interviews through self administered survey was done to collect the data,
market research was undertaken, that was accomplished by performing various
activities designed.
Resear&h Istr!"et8
Questionnaire
&he ?uestionnaire was formulated by keep in mind the following $oints5 !
7iving the respondents clear comprehension of the ?uestion.
Inducing the respondents to co!operate.
7iving instructions as to what is wanted.
Identifying the needs to be known.
Li"ititati$s8
&he following were the limitations that were there during the course of the study5 =
+. Limited time period.
.. Less number of respondents.
=. /iasness of the respondents.

53

PROAECT O:AECTIVES
&o study the awareness of #inancial $lanning among the people.
&o study the importance of Insurance in today%s scenario.
/rand awareness of various private insurance companies.
$reference among different investment tools.
$urpose of buying insurance.
&o generate leads for 'nit Linked Insurance and the 'nit Linked $ension
$lans, by interacting with walking and existing customers of the company.
54

DATA ANALYSIS < INTERPRETATION
A4E DISTRI:UTION
A4E DISTRI:UTION;*rs+=
35%
41%
24%
/elow =8
=+ ! 20
"bove 20
Dighest number of espondents 92+@; from "ge group =+ to 20 yrs.
55

=0@ respondents are of age below =8 yrs, small percentage of which is
unemployed.
MARITAL STATUS
MARITAL STATUS
-L
F
-G
E3
0F
1K
-1K
01K
E1K
F1K
.1K
G1K
31K
51K
L1K
-11K
:el$w E1 E- / F. A#$ve F.
A4E;*rs=
SIN4LE MARRIED
&otal number of single respondents L .=
&otal number of married respondents L 33
56

INCOME DISTRI:UTION
INCOME DISTRI:UTION;A!al i Rs+a''J+=
-G
-E
.
-
3
-0
-0
-1
1
G
-0
G
O-+. la&s
-+. / E la&s
E / . la&s
P . la&s
I
N
C
O
M
E
/elow =8 =+ ! 20 "bove 20
Dighest, +1 respondents in income bracket below +.0 lacs, which mainly
comprises of age group below =8 years.
espondents of the age group =+!20 yrs, lie in all the income slabs.
Minimum, 1 respondents in income bracket of above 0 lacs, which are in age
group of above 20 years.
57

ARE YOU AWARE A:OUT FINANCIAL PLANNIN4 >
L5K
0K
8
+8
.8
=8
28
08
18
38
,8
-8
+88
N
O

O
F

P
E
O
P
L
E
DO YOU CNOW W7AT IS
FINANCIAL PLANNIN4 >
HI4
:O
-,@ of the respondents were aware about #inancial $lanning.
58

:RAND RECALL
+88 @ respondents mentioned first name to be LI*
"mong private players, I*I*I $rudential has the highest
/rand ecall i.e. -1@
59
/":D I*"LL
+88@
-1@
-.@
,.@
,1@
3.@
12@
30@
3+@
18@
0+@
LI*
I*I*I $rudential
DD#* 4td Life
&"&" "I7
/IL" 4': LI#I
(O&"( M"DI:D"
4/I LI#I
"MIM"
M"P :IE HO(
MI&LI#I
I:7MH4H"

DD#* 4tandard life has /rand ecall of -.@
INVESTMENT PREFERENCE
INVESTMENT PREFERENCE
--K
-5K
0-K
LK
01K
0-K
/anks G $ost
office
4hare Market
Insurance
/onds
Mutual #unds
eal Istate
.+@ respondents prefer banks and post office schemes as an investment tool
preference.
espondents of age group below =8 years prefer Mutual #unds, as they provide
higher returns than banking investment tools.
Insurance ranks .nd as an investment tool choice, which itself includes various
protection, saving and pension plans.
60

7ovt. /onds G securities are mostly preferred by people of higher age group rather
than young generation.
$roperty as an investment option is most lucrative choice. Dowever it is important
to mention that ma>ority of respondents are in age group of above =8 years and
people with high income bracket prefers to invest in eal Istate+
INSURED PERCENTA4E
13 @ of respondents were insured on own life and on life of their family members.
61
"I HO' I:4'IDR
13@
==@
YES
NO

4o we had == @ of potential customers to approach.
COMPANY PREFERENCE
COMPANY PREFERENCE;i K=
..K E1K -.K
1 01 F1 G1 51 -11 -01
-
O:LH LI* /O&D O:LH $M&. *Os
00@ of respondents have insurance cover provided by LI* only
+0@ of respondents have insurance cover provided by $rivate *os. only
62

Ehereas =8@ have got insurance from both LI* and $rivate *ompanies.
&otal number of LI* policies sums up to ,0@ and total number of $vt. *ompanies
policies sold sums up to 20@.
Data provides that though LI* is still got a maximum market share but $rivate
*ompanies are making a fast move in the market.
63

TYPE OF PLAN :OU47T
TYPE OF PLAN
0G) 0LK
01) 0EK
0F) 05K
-3) 01K MO:IH /"*(
I:DOEMI:&
$I:4IO: $L":
'LI$s
Money back $olicies have been most popular and also the endowment plans.
"s people today are more aware about financial planning, so people of the age =8
years have planned for their etirement now.
'LI$s are fast gaining popularity as they provide investment
/enefit with Insurance.
64

PURPOSE OF :UYIN4 INSURANCE
PURPOSE OF :UYIN4 INSURANCE
.0K
--K
0EK
-FK
1 -1 01 E1 F1 .1 G1
Ris2 C$ver
Ivest"et
TaJ :ee%it
Retire"et
Plaig
isk cover remains the most important purpose for buying insurance followed by
option as &ax saving tools.
etirement planning in an early period is also gaining the market share.
'LI$s are responsible for increasing popularity of insurance as an investment tool
65

DISTRI:UTION C7ANNEL PREFERENCE
C7ANNEL PREFERENCE
.G -3 -F L F
1 01 F1 G1 51 -11 -01
-
(nownF*urrent "dvisor #riends G elatives
7roup Insurance /anccassurance
&elesalesFunknown "dvisor
"ccording to the data, knownFcurrent "dvisors remains the +
st
choice for buying
Insurance.
In retail also known "dvisors are preferred over referrals.
/anc assurance is emerging as a popular option for buying life Insurance.
7roup insurance is a channel which customers expect but it is not so popular
because only few employers have taken the initiative.
/uying insurance from a unknown person or getting a phone call is still not
preferred by most of the people
66

FINDIN4S
T7E :ARRIERS FACED DURIN4 T7E PROCESS8
The Attit!(ial :arriers t$ P!r&hasig Q++
K Death / a taboo topic for discussion
SIt%s ?uite ashubh talking about deathO
K The #elie% i 2ar"a Q destiny
S<o kismet me likha hai wohi hoga, hum kya kar sakte haiO
The Pr$(!&tD Servi&e :arriers QQ
K Li?uidity
SEhat if I need my money urgently for some medical illnessRO
K 4ervice ?uality of the "gent
SDe disappears after he takes the first premiumO
K 4anctity of the contract
SEhat if my dependents do not get the money once I dieRO
*harges
SIts better to invest in Mutual #unds, the charges there are very lessO
The Other :arriersQ+
'nsure about $vt. *ompanies
Low rate of return
S/etter to put my money in $$#, at least I get fixed returnsO
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Money gets tied up
Digh premium
CONCLUSION
&he various conclusions drawn from the pro>ect are5
&here has been a tremendous change in the insurance industry. "nd with it
there has been continuous growth in this sector both in Indian as well as world
context.
&he opening up of the insurance sector has changed the whole look of the
industry. Ehile the LI*, in order to face the competition is coming up with new
strategies. :ew private players are leading the sector due to their strategic
management and tailored made pro>ects.
#rom the research, we also conclude that though the awareness and people
opting for LI* plans are more as compared to other private players% but the
latter are gaining momentum in the market day by day.
&he demand for insurance is likely to increase with rising per!capita income,
rising literacy rates, and growth of service sector. In!fact opening up of the
insurance sector is an integral part of the liberali6ation process being persued
by many developing countries.
Life insurance as a form of protection is the single!most important financial
product any earning member of a family must have. Daving said this, a well!
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diversified portfolio is one of the first rules of financial planning, and as such
one should consider different instruments as the ability to save increases.
$ossible investment options range from bank deposits and government small saving
schemes to mutual funds, stocks and property.
*ertainly 'LI$s successfully combine the first and most important need of protection,
with savings, and hence are an excellent addition to your portfolio.
"ll financial products have a certain amount of risk and charges, be it a mutual fund,
property, or even a bank deposit. It would be unrealistic to assume that the features
and benefits of a 'LI$ come at no cost, though the charges are considerably lower
than that of a traditional product.
In fact, the very reason the product is transparent is because the customer knows the
charges and risks.
&here is no right or wrong in this. &he success of marketing insurance depends on
understanding the social and cultural needs of the target population, and matching the
market segment with the suitable intermediary segment. "ll intermediaries can%t sell all
lines of business profitably in all markets. &here should be clear demarcation in the
marketing strategies of the company from this perspective. *lients should also receive
price differentials for using different channels.
&he intermediaries need to be empowered with the right learning, training and sales
tools and technology enablers. *oupled with the right product mix, this will help the
insurers to survive and flourish in this competitive market scenario. 4o lets conduct
69

this business with utmost economy with the spirit of trusteeship) thereby making
insurance widely popular.
LIMITATIONS
Li"itati$s8
&he following were the limitations that were there during the course of the study5 2
+. Limited time period.
.. Less number of respondents.
=. /iasness of the respondents.
70


RECOMMENDATIONS
La&2 $% C$wle(ge8 Iase of $rocess, simplifying the product and the
procedure
:eed to promote the ?uality of awareness
The #ee%its8 Leverage on isk $rotection or eturns oriented or both
The 'r$(!&t8 catering to life stages
Nee( %$r :ra(ig i Is!ra&e8 /randing is more relevant in the Insurance
market which not only faces the problem of securing and retaining customers in
an increasingly competitive marketplace but also experiences the need for
heightened relevance of the brand proposition in a world where brand has been
termed the new religion.
In rural India, the LI* is especially synonymous with insurance. /ut in the wake
of competition insurance companies have to do a considerable brand building
exercise at least in urban India.
"de?uate time, investment and longer!term management of the brand are
essential, not only for success but also survival. "ll brands need to be built
around well!differentiated and credible positioning that springs from the
organi6ation%s history. &he brand must not only be believed but lived by
management and employees.
#ocus on different segments to survive and thrive in a competitive
environment. Iach company has to choose its own uni?ue positioning based
71

on its uni?ue strengths. /elow!mentioned positioning alternatives can be worth
considering.
VARIETY/:ASED POSITIONIN4
&his type of positioning is based on varieties in products and services rather than
customer segments. It is a sensible strategy for those companies who have
distinctive advantages or strengths in offering certain products and services. In the
insurance industry too, it is possible to achieve a uni?ue position by focusing on
certain category of products.
NEEDS/:ASED POSITIONIN4
&his is the most commonly understood positioning and is based on the differing
needs of different groups of consumers. &his can be done successfully if a
company has uni?ue strengths to service a group of customer needs better than
others.
&he insurance needs of customers vary significantly for different groups of
customers. &he insurance needs of young family with small children will be ?uite
different from that of a family in which the income!earner is close
&o retirement. Dowever, in India most of the life insurance companies have a wide
variety of products tailored for different customer needs and there is no company
focusing on a particular customer need.
ACCESS/:ASED POSITIONIN4
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$ositioning of customers can also be done by the way they are accessible. &hat is
different groups of customers may be accessible in different ways even though
they may have similar needs. "ccess is typically a function of customer geography
or customer scale. &here is excellent opportunity in the insurance industry to
employ access!based positioning by targeting the rural insurance sector.
&he rural market for life insurance is very different from the urban market in terms
of needs, income levels and distribution 9seasonality, for example;, penetration of
media and so on. ural market can be a highly profitable position if one is able to
carefully plan and tailor an entire set of low!cost activities of advertising,
distribution, and product design etc. to successfully exploit the potential.

73

List of Preference
BIBLIOGRAPHY
:OOCS
Mar2etig Maage"et) :* Phili' 2$taler
Mar2etig $% Servi&e :* Dr+ S+L 4!'ta a( V+V+ Rata
Fia&ial Maage"et :* I+M+Pa(a*
E&$$"i&s Ti"es
We#sites
www+r#i+$rg+i
www+ir(ai(ia+$rg
www+#a2eti(ia+&$"
www+h(%&is!ra&e+&$"
www+#!siessw$rl($lie+&$"
www+g$$gle+&$" ;sear&h egie=
74

Other Re%ere&es8
/rochures of various plans
R!esti$aire
:ame5 TTTTTTTTTTTTTTTTTTTTTTTT
"ge5 TTTTTT
7ender5 M #
Marital 4tatus5 Married 4ingle
Occupation5 TTTTTTTTTTTTTTTTTTT
*ontact :o5 TTTTTTTTTTTTTTTTTT
"nnual Income 9approx. in s.;
'p to +.08 lacs +.08 lacs!= lacs
= lacs!0 lacs above 0 lacs
Q+; "re you aware about Uwhat is financial planning%R

HI4 :O
Q.; Mention the names of Life insurance companies you have heard of5
+; TTTTTTTTTTTTTTTT 2; TTTTTTTTTTTTTTTT
.; TTTTTTTTTTTTTTTT 0; TTTTTTTTTTTTTTTT
75

=; TTTTTTTTTTTTTTTT 1; TTTTTTTTTTTTTTTT

Q=; Dow much do you save approximately of your annual incomeR
TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
Q2; where do you investFwould like to invest your savingsR
9ank in order of preference, + being most preferable;
/anks 4hare Market
Insurance /onds G 4ecurities
Mutual #unds eal IstateF$roperty
Q0; Dave you taken any life insurance policy on your own life or on life of any of your
family memberR

HI4 :O
9If no, switch to Q -;

Q1; which company9s; policy9s; you haveR
LI* I*I*I $'DI:&I"L
76

/IL" 4':LI#I I:7 MH4H"
/"<"< "LLI":V 4/I LI#I
DD#* 4&D. LI#I &"&" "I7
M"P :IE HO( LI#I "MIM"
ILI":*I (O&"( M"DI:D"
MI& LI#I O&DI TTTTTTTTTTTT 9specify;
Q3; which type of plan did you buyR
Money /ack $lan
Indowment $lan
$ension $lan
'LI$
Q,; Ehat was your purposeFwill be your likely purpose of taking insuranceR
":( &DIM 9+ being most ideal;
a; $O&I*&IO:
O# #"MILH
b; &"P /I:I#I&
77

c; I:MI4&MI:&
d; I&IIMI:&
$L"::I:7
Q-; Dave you ever been approached for Life insurance by any of the following 9please
W;) also ank according to your preference from whom you are most likely to buy
insuranceR
+; (nownF*urrent "dvisor
.; "dvisors referred by friendsFfamily
=; &elesales and subse?uent visit by unknown "dvisor
2; 4chemes offered by your bank 9/anc assurance;
0; 7roup Insurance $olicies offered by your employer
R-1= Do you feel opening up of the sector has created more insurance awareness
among the publicR

HI4 :O
78

R--; Dow many dependents do you haveR
X. .!2 2!1 N1

R-0= Do you really think insurance cover in today%s scenario is not
IssentialR
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
&D":(4 HO' #O HO' *O:&I/'&IO:
79

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