A

PROJECT REPORT
ON
Marketing Strategy

AVIVA LIFE INSURANCE

VISAKHAPATNAM
A project report
Submitted in partial fulfillment for the award of the degree
BACHELOR OF BUSINESS ADMINISTRATION
Submitted
By
M.Akshay Kumar Jain
(Reg.No.HR-2013-1409142)

GAYATRI VIDHYA PARISHAD

(AFFLIATED BY AU)
(Accredited by NAAC with B++)
Gayatri Valley, Rushikonda Campus,
Visakhapatnam-530045

DECLARATION

I hereby declare that this project entitled A STUDY ON MARKETING

STRATEGY in AVIVA LIFE INSURANCE,VISAKHAPATNAM is a
bonafide work done by us in partial fulfillment for the award of Degree of
Business Management , under the guidance of Mr. NUKA RAJU, Assistant
Professor of Gayatri Vidhya Parishad. We also confirm that the preparation of
this project is the outcome of our personal effort during the period (22nd April
22nd may).

Place: Visakhapatnam
jain

M.Akshay kumar

Date:
1409142

Reg no: 2013-

CERTIFICATE
This is to certify the project entitled A STUDY ON MARKETING
STRATEGY in AVIVA LIFE INSURANCE, VISAKHAPATNAM is a
bonafide work carried out by M.Akshay Jain in partial fulfillment for the award
of the DEGREE IN BUSINESS MANAGEMENT and completed successfully
during 22-04-2015 to 22-05-2015 under my guidance and supervision .

Visakhapatnam
Date:

ACKNOWLEDGMENT

I avail this opportunity to express our profound sense of sincere and deep gratitude
to many people who are responsible for the knowledge and experience we have
gained during the course of project.
We would like to express our gratitude to Mr.Naku Raju, Assistant Professor of
Gayatri Vidhya Parishad, faculty project guide for his support and cooperation.
Our increased spectrum of knowledge in this field is the result of his constant
supervision and directions that has helped us to absorb relevant and quality
information along with practical insights.
I express my sincere thanks to Mr. Ravi Kumar for giving permission to do the
project. I would like to thank the management Aviva life insurance, Visakhapatnam
who has given me a chance for undergoing project in the Industry and also to all
officials and employees who has provided me valuable information.
I would like to thank Mr. BALA BHASKAR, who has been benevolent enough to
help and spare her valuable time throughout this project and also to all officials and
employees who have provided me valuable information.
Lastly, I would like to thank GVP DEGREE COLLEGE for providing facilities
for the successful completion of the project.

M.Akshay Kumar Jain

(2013-1409130)

CONTENTS
CHAPTER -1

INTRODUCTION TO THE SUBJECT

OBJECTIVE OF THE STUDY
NEED FOR THE STUDY
METHODOLOGY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY

CHAPTER -2
INDUSTRY PROFILE

CHAPTER-3
COMPANY PROFILE

CHAPTER-4
THEORETICAL FRAMEWORK

CHAPTER-5
QUESTIONARE & ANALYSIS
FINDINGS

CHAPTER-6

SUMMERY
SUGGESTIONS

ANNEXURES
BIBLIOGRAPHY

Introduction
Life is full of risk and uncertainties. Since we are the social human
being we have certain responsibilities too. Indian consumers have big
influence of emotions and rationality on their buying decisions. They
believe in future rather than the present and desire to have a better and
secured future, in this direction life insurance services have its own
value in terms of minimizing risk and uncertainties. Indian economy is
developing and having huge middle class societal status and salaried
persons. Their money value for current needs and future desires
here the pendulum moves to another side which generate the reasons
behind holding a policy. Here the attempt has been made in this research
paper to study the buying behavior of consumers towards life insurance
services. Life insurance is one of the best known insurance products
today. People buy these products as investment tools and also as
protection for themselves and their families. All the insurance companies

the world over are looking at attracting the eye balls of customer and
positioning their solutions innovatively to cater to niche
and specific markets. One of the most critical aspects both from the
view point of the customer and the insurer is getting important and
relevant leads that can be beneficial for both.

Detail study about Money back Policy

MONEY BACK plan is an excellent plan with good return on

reinvestment, best suited for businessmen and professionals. Money is
available at regular intervals in future to meet the specific expenses such
as children's education or marriage. At the same time, the provides
insurance protection for the family as well as old age provision.

Salient Features

where lump sum amounts are paid to the life assured at periodic
intervals on survival.

 In case of death of the life assured within the term, the total sum
insured is paid to the nominee, irrespective of earlier survival benefits.
Bonus is payable under this scheme.
Premiums are to be paid regularly to get survival benefits.
Premiums cease at death or on expiry of term whichever is earlier.
This plan can be availed of for terms 20 or 25 years.

Benefits you get from Aviva Money Back Plan

Death Benefit In case of death of the Life Insured, the nominee would
get the full Sum Assured irrespective of the amount of amount of
Survival Benefit already paid.
Survival Benefit In this plan, there is a schedule of payment
12 Year Policy Term

Year 4 5%
Year 7 10%
Year 10- 15%

15 Year Policy Term

Year 5 - 10%
Year 8- 15%

Year 11- 20%

18 Year Policy Term

Year 6 5%
Year 9 10%
Year 12 15%
Year 15 20%

21 Year Policy Term

Year 3 10%
Year 6 10%
Year 9 10%
Year 12 10%
Year 15 10%
Year 18 10%

Maturity Benefit On maturity, (120% of the Sum Assured + Guaranteed Additions accrued Bonus all Survival
Benefits already paid) is given to the policyholder at the end of the Policy Term as Maturity Benefit

Policy Term

Maturity Benefit

12 Year Policy Term

90% + Guaranteed Additions + Bonus

75% + Guaranteed Additions + Bonus
70% + Guaranteed Additions + Bonus
60% + Guaranteed Additions + Bonus

15 Year Policy Term

18 Year Policy Term
21 Year Policy Term

Life Insurance premiums paid up to Rs. 1,00,000 are

allowed as a deduction from the taxable income each year under section
80C
Income Tax Benefit -

Research Problem

The problem of the my research is to know perception of the

customer about Monet Back policy in Visakhapatnam,A.P

Purpose of the study

The purpose of the study is know that

1. To evaluate the factors underlying consumer perception towards
investment in life insurance policies.
2. To develop and standardize a measure to evaluate investment
pattern in life insurance services.

Research Question

Perception study about Money back policy

RESEARCH METHODOLOGY
Research Strategy

For my research study first of all this is very important that I have
to know what is money back policy and how it works. Ill visit Aviva

Life Insurance Company in Visakhapatnam to know more about Money

Back policy.

Chapter -2

Industry profile
Life Insurance is the fastest growing sector in India since 2000 as
Government allowed Private players and FDI up to 26% and recently
Cabinet approved a proposal to increase it to 49%. Life Insurance in
India was nationalised by incorporating Life Insurance Corporation
(LIC) in 1956. All private life insurance companies at that time were
taken over by LIC.

In 1993, the Government of India appointed RN Malhotra

Committee to lay down a road map for privatisation of the life insurance
sector.
While the committee submitted its report in 1994, it took another
six years before the enabling legislation was passed in the year 2000,
legislation amending the Insurance Act of 1938 and legislating
the Insurance Regulatory and Development Authority Act of 2000. The

same year the newly appointed insurance regulator - Insurance

Regulatory and Development Authority IRDAstarted issuing licenses
to private life insurers.

Life insurance products come in a variety of offerings catering to

the investment needs and objectives of different kinds of investors.
Following is the list of broad categories of life insurance products:

Term Insurance Policies

The basic premise of a term insurance policy is to secure the

immediate needs of nominees or beneficiaries in the event of sudden or
unfortunate demise of the policy holder. The policy holder does not get
any monetary benefit at the end of the policy term except for the tax
benefits he or she can choose to avail of throughout the tenure of the
policy. In the event of death of the policy holder, the sum assured is paid

to his or her beneficiaries. Term insurance policies are also relatively

cheap to acquire compared to other insurance products.
Money-back Policies

Money back policies are basically an extension of endowment

plans wherein the policy holder receives a fixed amount at specific
intervals throughout the duration of the policy. In the event of the
unfortunate death of the policy holder, the full sum assured is paid to the
beneficiaries. The terms again might slightly vary from one insurance
company to another.
Unit-linked Investment Policies (ULIP)

Unit linked insurance policies again belong to the insurance-cuminvestment category where one gets to enjoy the benefits of both
insurance and investment. While a part of the monthly premium pay-out
goes towards the insurance cover, the remaining money is invested in
various types of funds that invest in debt and equity instruments. ULIP
plans are more or less similar in comparison to mutual funds except for
the difference that ULIPs offer the additional benefit of insurance.

Pension Policies

Pension policies let individuals determine a fixed stream of income

post retirement. This basically is a retirement planning investment
scheme where the sum assured or the monthly pay-out after retirement
entirely depends on the capital invested, the investment timeframe, and
the age at which one wishes to retire. There are again several types of
pension plans that cater to different investment needs. Now it is
recognized as insurance product and being regulated by IRDA.
List of Life Insurers (as of June 2014)

Apart from Life Insurance Corporation, the public sector life

insurer, there are 23 other private sector life insurers, most of them joint
ventures between Indian groups and global insurance giants.

Life Insurer in Public Sector

Life Insurance Corporation of India
Postal Life Insurance
Employees' State Insurance
Life Insurers in Private Sector
SBI Life Insurance
PNB Metlife India Life Insurance
ICICI Prudential Life Insurance
Bajaj Allianz Life

Max Life Insurance

Sahara Life Insurance
Tata AIG Life
HDFC Life
Birla Sun Life Insurance
Kotak Life Insurance
IndiaFirst Life Insurance
Aviva Life Insurance
Aviva Life Insurance Company Limited - Formerly known as

AMP Sanmar LIC

Exide Life Insurance - Formerly known as ING Vysya Life

Insurance
Shriram Life Insurance
Bharti AXA Life Insurance Co Ltd.
Future Generali Life Insurance Co Ltd
IDBI Federal Life Insurance
AEGON Religare Life Insurance
DHFL Pramerica Life Insurance - Formerly known as DLF

Pramerica Life Insurance

CANARA HSBC Oriental Bank of Commerce
Star Union Dia-ichi Life Insurance Co. Ltd
Edelweiss Tokio Life Insurance Company Ltd.

Foreign Direct Investment (FDI) Policy in Insurance Sector

As per the current (March 2006) FDI norms, foreign participation

in an Indian insurance company is restricted to 26.0% of its equity /
ordinary share capital. The Insurance Regulator has stipulated that
foreign investment in Indian Insurance companies be limited to 26% of
total equity issued (FDI limit) with the balance being funded by Indian
promoter entities. The limit to foreign investment includes both direct
and indirect investment and has been a cause of significant lobbying by
foreign insurance companies for a change in regulations to increase the
FDI limit to 49% of equity issued. Recently,In the Fiscal Budget of
Modi Government of 2014-15 it has introduced 49.0% FDI which will
bring in more investments in Insurance Sector.
The Indian government has supported an increase in the FDI limit,
which requires a change in the Insurance Act. The Union Budget for
fiscal 2005 had recommended that the ceiling on foreign holding be
increased to 49.0%.

A change in the Insurance Act requires a passage of the bill in both

houses of Parliament. The Indian government has tabled the bill in the
Upper House of Parliament in August 2010.

Initial Public Offer (IPO) rules for Indian Life Insurance Companies

A key piece of legislation impacting on the Life Insurance

industries capital raising abilities is the lock-in period of 10 years for
investment to be limited to promoter group equity investments. Under
the Insurance Guidelines, Indian Life Insurance companies can opt for a
public issue of equity through an Initial Public Offer (IPO) after 10 years
of operations.
In October 2010, the securities market regulator, Securities and
Exchange Board of India (SEBI), issued disclosure norms for Indian
Life Insurance Companies seeking to make an initial public offer for sale
of equity shares to the public.

All life insurance companies in India have to comply with the strict
regulations laid out by Insurance Regulatory and Development Authority
of India (IRDAI).
Indian life insurance industry overview

Life Insurance Corporation of India (LIC), the state owned

behemoth, remains by far the largest player in the market. The private
companies have come out with products called ULIPs (Unit Linked
Investment Plans) which offer both life cover as well as scope for
savings or investment options as the customer desires. These type of
plans are subject to a minimum lock-in period of three years to prevent
misuse of the significant tax benefits offered to such plans under the
Income Tax Act. Comparison of such products with mutual funds would
be erroneous.

Chapter-3

Company profile
Company Introduction

Aviva is the sixth-largest insurance group in the world. It has a

turnover of over 47.1 billion.
Aviva provides more than 44.5 million customers with insurance,
savings and investment products. They are one of Europe's leading
providers of Car insurance, Motor insurance, Life insurance, Home
insurance, Health insurance, Travel insurance, Personal accident
insurance, Pet insurance and Business insurance.
Aviva's main activities are the provision of general and life
insurance, long-term savings products and fund management services.
The group has around 36,600 employees, 379 billion of assets under
management and 43 million customers.
Aviva's Principal subsidiaries are:
Aviva Life - Pensions, investments, Life Insurance and long term
savings (formerly Norwich Union)
Aviva Insurance - General Insurance

Aviva Investors - Fund Management (formerly Morley Fund

Management)
Aviva is ranked as one of the UK's top 10 most valuable brands in
2012 and has been voted the UK's top life, general and health insurer by
insurance intermediaries. Aviva aims for superior long-term investment
performance and it is UK's one of the most financially strong investment
company.
Aviva provides an extensive range of value-for-money, good
quality products - investments, retirement, protection and healthcare designed and changing to meet your needs, both now and in the future.
Aviva was created by a merger of two British insurance firms,
Norwich Union and CGU plc. In October 2009 the company decided to
focus on its commercial insurance sector and demonstrate its
commitment to brokers by launching their 'find a broker' facility, using
the British Insurance Brokers Association search engine. To help them
with this endeavour, Paul Whitehouse was recruited to play the part of a
successful hairdresser running three salons. The message of the

campaign focused on business insurance through insurance brokers. The

closing line of the campaign was "We're in business to keep you in
business".

Aviva is UKs largest and the worlds fifth largest insurance

Group. It is one of the leading providers of life and pensions products to
Europe and India and has substantial businesses elsewhere around the
world. With a history dating back to 1696, Aviva has a 40 millioncustomer base worldwide. It has more than 377 billion of assets under
management. In India, Aviva has a long history dating back to 1834. At
the time of nationalization it was the largest foreign insurer in India in
terms of the compensation paid by the Government of India. Aviva was
also the first foreign insurance company in India to set
representative office in 1995.

up its

In India, Aviva has a joint venture with Dabur, one of India's

oldest, and largest Group of companies. A professionally managed
company, Dabur is the country's leading producer of traditional health
care products.
In accordance with the government regulations Aviva holds a 26
per cent stake in the joint venture and the Dabur group holds the balance
74 per cent share.

JOIN VENTURE

Dabur
Founded in 1884, Dabur is one of India's oldest and largest group
of companies with consolidated annual turnover in excess of Rs 1,899
crores. A professionally managed company, it is the country's leading
producer of traditional healthcare products.

DABUR =

74%

AVIVA

26%

With a strong sales force of over 28,000 Financial Planning

Advisers (FPAs), Aviva has initiated an innovative and differentiated
sales approach to the business. Through the Financial Health Check
(FHC) Avivas sales force has been able to establish its credibility in the
market. The FHC is a free service administered by the FPAs for a needbased analysis of the customers long-term savings and insurance needs.
Depending on the life stage and earnings of the customer, the FHC
assesses and recommends the right
insurance product for them.
Aviva pioneered the concept of Bank assurance in India, and has
leveraged its global expertise in Bank assurance successfully in India.
Currently, Aviva has Bank assurance tie-ups with ABN Amro Bank,
American Express Bank, IndusInd Bank, Centurion Bank of Punjab, The

Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks
in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra
Pradesh and
Maharashtra and regional Banks.

When Aviva entered the market, most companies were offering

traditional life products. Aviva started by offering the more modern Unit
Linked and Unitised With Profit products to the customers, creating a
unique differentiation. Avivas products have been designed in a manner
to provide customers flexibility, transparency and value for money. It has
been among the first companies to introduce the more modern Unit
Linked products in the market. Its products include: whole life
(LifeLong), endowment (LifeSaver, EasyLife Plus, LifeSaver Plus),
child policy (Young Achiever, SaveGuard Junior, Aviva Little Master)

single premium (LifeBond and LifeBond Plus), Pension (PensionPlus),

Term (LifeShield), fixed term protection plan (Freedom LifePlan) and a
tax efficient investment plan with limited premium payment term
(LifeBond5). Aviva products are modern and contemporary unitised
products that offer unique customer benefits like flexibility to choose
cover levels, indexation and partial withdrawals. Avivas Fund
management operation is one of its key differentiators. Operating from
Mumbai, Aviva has an experienced team of fund managers and the range
of fund options includes Unitised With-Profits Fund and four Unit
Linked funds: - Protector Fund, secure
Fund, balanced Fund and Growth Fund.
Aviva has 176 Branches in India (including rural branches)
supporting its distribution network. Through its Bank assurance partner
locations, Aviva products are available in close to 500 towns and cities
across India
Aviva is also keen to reach out to the underprivileged that have not
had access to insurance so far. Through its association with Basix (a

micro financial institution) and other NGOs, it has been able to reach the
weaker sections of the society and provide life insurance to them.
Aviva has been felicitated with the "Bronze Award for Excellence
in People Management" by Grow Talent Company Limited and
Businessworld. This honour is given to Aviva based on the ranks
received in top 25 list of the Great Place to Work India studies conducted
in the last four years. Aviva was ranked 12th in 2003, 14th in 2004 and
13th in the year 2005.

General profile:
AVIVAs Vision:

Aviva - where exceeding expectations through innovative solutions

is "our" way of life

Promotion and Selling Financial Product Major Policy Changes by

IRDA
Insurance sector has been opened up for competition from Indian
private insurance companies with the enactment of Insurance Regulatory
and Development Authority Act, 1999 (IRDA Act). As per the provisions
of IRDA Act, 1999, Insurance Regulatory and Development Authority
(IRDA) was established on 19th April 2000 to protect the interests of
holder of insurance policy and to regulate, promote and ensure orderly
growth of the insurance industry. IRDA Act 1999 paved the way for the
entry of private players into the insurance market which was hitherto the

exclusive privilege of public sector insurance companies/ corporations.

Under the new dispensation Indian insurance companies in private sector
were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956

The aggregate holdings of equity shares by a foreign company,
either by itself or through its subsidiary companies or its nominees, do
not exceed 26%, paid up equity capital of such Indian insurance
company.
The company's sole purpose is to carry on life insurance business
or general insurance business or reinsurance business.
The minimum paid up equity capital for life or general insurance
business is Rs.100 crores.
The minimum paid up equity capital for carrying on reinsurance
business has been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which

include Registration of Insurers, Regulation on insurance agents,
Solvency Margin, Re-insurance, Obligation of Insurers to Rural and
Social sector, Investment and Accounting Procedure, Protection of
policy holders' interest etc.
Applications were invited by the Authority with effect from 15th
August, 2000 for issue of the Certificate of Registration to both life and
non-life insurers. The Authority has its Head Quarter at Hyderabad.

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

Embedded in this vision are the core values of Integrity, Customer

centricity, Passion for winning, Innovation and Empowered team that
they have collectively defined and committed to working towards.

Partners

Aviva has committed to help its customers get 'Kal par Control'
and make the most out of their lives. It is their constant endeavor to
ensure that their customers have easy access to AVIVA products and
services at all times.
Aviva has pioneered banlk assurance in the country through its tieups with 22 leading private and nationalised Banks in the country. Aviva
also focuses on bank assurance worldwide and has a proven track record
of successful bank assurance relationships. It has 40 major partnerships
with leading banks across the globe. Aviva is a leading bank assurer in
countries such as France, Italy, Spain, Australia and New Zealand.

Organisation structure
The following chart shows, in simplified form, the organisational
structure of the Group as at 31 December 2014. Aviva plc is the
holding company of the group

SWOT ANALYSIS
The SWOT analysis of Insurance sector is as follows:1. Strength-Very good policies of life coverage.

2. Weaknesses:-unable to convince the people about the products.

There are not much advisors for the insurance companies
3. Oppourtunities:-Untapped rural sector and small towns
4. Threats:-growing competition from larger MNC's.

Unique Achievements

Aviva Indias Whats Your Big Plan campaign won the Gold for
the Most Effective Insurance Marketing Campaign of the year at the
prestigious DMAi awards in May, 2014. At the same awards, Aviva
India also bagged the silver medal for Creative Social App
Development across categories for its Padding Up with Sachin
campaign
o In June 2014, Whats Your Big Plan campaign was bestowed with
the bronze medal in the Best Integrated Campaign led by PR
category at the Goa Fest
o Aviva India won the Certificate of Excellence at the PR Week Asia
Awards 2014 in Hong Kong
o Avivas Street to School Campaign was the runner-up in the CSR
Awards 2014, organized by BFSI Vision Magazine
o Aviva India was also one of the finalists at the 2014 Asian Marketing
Effectiveness & Strategy Awards and was chosen in DELHI NCR
HOT 50 at the Delhi Brand Summit 2014
o The Street to School programme also received the CRY Child Rights
Champion Award in 2012
o The Aviva Great Wall of Education won the TVE Corporate
Sustainability Award at BAFTA London in 2012

o Aviva India won the Out-of-the box PR idea award at the India PR &
Corporate Communications Awards 2012. The award recognised the
Aviva

Great

Wall

of

Education as

the

most

innovative

conceptualization and implementation of a PR initiative that enhances

brand recall
o The Aviva Great Wall of Education won the Indys Award in the
Community and Social Welfare category in 2011
o The Aviva Great Wall of Education won Bronze at Effies 2010 and
Silver at Effies 2011
o
The Aviva Great Wall of Education won Gold at Spikes
Asia 2010 in Singapore.
The Product Offered By Aviva Life Insurance

Easy life plus

Life bond 5
Life saver
Life saver super
Pension plus

secure pension
Aviva life line
Aviva money back
Freedom Life Plan
Life long
Life saver plus

 Little master
Save guard
Aviva sachin century plan
Aviva health plus

Future plans
Aviva New Young Scholar
o Overview
o Aviva New Young Scholar is a comprehensive plan that enables you to
secure your childs future in any eventuality through:
o Attractive returns, enhanced by loyalty additions every year starting
end of 5th year and maturity addition to build the desired corpus of
funds on maturity of the policy
o All future premiums being waived off and invested as a lump sum
amount in to the funds, so the policy continues even in the unfortunate
event of the parents death, disability or on contracting a critical
illness, while the Sum Assured is paid out immediately
o Provision of a regular income for the minor child, in the event of
parents death
o Systematic Transfer Plan (STP) for safe entry and safer exit into
equities
o Option to minimize the effect of inflation through Indexation

Aviva Extra Cover - A combo plan

Overview
Life today is full of uncertainties. To ensure our family is secure, in
case something unfortunate happens to us, we need adequate life cover.
But this is not enough. There are unforeseen risks that we often choose
to ignore. The increasing health challenges posed by our high pressure
sedentary lifestyle can turn into critical illnesses. Hence, it is important
to leave nothing uncovered.
Aviva Extra cover is a unique combination of Aviva i-Life and
Aviva Health Secure that gives you comprehensive protection with a life
cover at nominal cost, and pays you a lump sum on diagnosis of 12
critical illnesses.

Key features:

o 100% Sum assured as lump sum on death Covers all forms of

death only exclusion is suicide within one year

o Cover for 12 major critical illness

o A hassle-free online application process, without any tedious
paperwork
o A 30-day Free-Look period to review detailed terms and conditions
o High Sum Assured Discounts
o Low premium rates for non-smokers for life cover

Aviva wealth builder

Overview
We all have aspirations and milestones that we hope to achieve in
our life. Be it commitments such as a childs education/marriage, or
dreams of purchasing a house, or retiring comfortably. We plan for the
time when these events are likely to happen, but dont always plan for
having enough to fulfil them as per our dreams. At Aviva we recognise
this and have specially designed Aviva Wealth Builder plan to help you
achieve these dreams to the fullest. This life insurance plan guarantees
double the amount of total premium that you pay, at maturity. Thats not
all, Aviva Wealth Builder also ensures that your family is well protected,

in case you are not around. So, go ahead and fulfil your dreams. Key
attractions of the plan are:
Doubles your money for defined milestones

Guaranteed protection for your family in case of your death

Flexibility in choosing premium payment and policy terms
Tax Benefits at the time of investment as well as maturity, for
regular premium policies.

Aviva Annuity Plus

Overview

Aviva Annuity Plus is a non-participating, non-linked immediate

annuity plan specially designed to provide you with lifetime income
during your post-retirement years.
Immediate annuities are designed to provide you with income
immediately, by exchanging your Pension Plan proceeds. In exchange
for this lump sum premium, the insurance company pays you a stream of
income as long as you live.
Key attractions of the plan are:
Option to select from 7 annuity options to suit your specific
financial needs
Annuity amount payable is guaranteed for the life of the policy
Flexibility to enhance the Purchase Price at inception for higher
annuity instalment

Functional profile
Production

This report will be looking at the services which Aviva provides

and how the services the business offer differ from a typical
manufacturing firm. Looking at the theoretical issues of intangibility,
heterogeneity, inseparability and perishability which affect the various
elements of the services marketing mix of Aviva's products provided to
their customers.

The Marketing Mix

Marketing is the ability of an organisation to provide the right
product, at the right price, via the right outlets and presented in the
correct way . In addition to product, price, place and promotion, services
marketing calls for three additional Ps - people, processes and physical
evidence.
The idea of classification affecting the marketing mix often
expands our understanding of the marketing mix itself. For example
excluding product classifications such as tangibility, reputation,
heterogeneity, inseparability, perish-ability and ownership which are

associated with service, we can look at the marketing mix as simply four
P's: The product, the price, the place, and the promotion. This initial idea
of a marketing mix originated in the 1960's when developed by Neil
Borden in his book: "The Concept of the Marketing Mix" (Borden,
1965) In this article Borden lists various elements of the marketing mix
for manufacturers, twelve in total, stating the list "can be long or short
depending on how far one wishes to go in his classification and subclassification of the marketing procedures." From this list has derived
the four P's of the marketing mix we know today.
These four P's make up the raw product without any service factor,
the actual product, where it is sold, the promotion to the target consumer
and the selling price. There is arguably no evidence to show any kind of
customer service in the four P's marketing mix, can be thought of as
"distinctly producer-orientated." (Kotler, Armstrong, Harker, & Brennan,
2009)
Product Distinctions

Theoretical issues of Intangibility, Heterogeneity, Inseparability

and Perishability are as follows
Intangibility is a unique characteristic of service which cannot be
seen physically, felt, tasted or touched as physical goods are. For
example when we watch a movie in the theatre, we are entertained by
watching it. Entertainment is the output of the service that is delivered.
Issues caused by intangibility are
Lack of service inventories: Services cannot be stored as the
physical goods are.
Lack of patent protection: As services are intangible, they cannot
be patent protected as the physical goods are. Service offered by one
firm can be also offered by other company in different way.
Difficulty in communicating services: Goods can be physically
displayed, but whereas services are not physically shown to customers.
It's hard for the companies to convince the customer to buy make the
products that are offered as services. E.g. Insurance

Difficulty in pricing services: Services offered by companies differ

and no two services can be same as customers' needs are different.
Services are customised and hence tend to have fixed pricing.
Heterogeneity is a unique characteristic of service that reflects the
difference in the service that is provided from one customer to other
customer. For example when a customer goes to a restaurant and ordered
food would be different kind from the other customer and no customer's
experience is the same. Similarly no one's custom made jewellery looks
alike as it's unique to the customers' requirements.
Issues caused by heterogeneity
Service standardization and quality control are difficult to achieve
Services provided by different providers within the same location
tend to be same.
Mood and skills of a single provider differ from day-to-day
Inseparability is a unique characteristic of service which displays
the association between the people or company which provides service

and the person who is engaged in receiving the service and also other
customers who are indirectly or directly getting the knowledge. For
example when a customer wants to take an internet connection, the sales
team of the internet company need not interact face to face with the
customer to give the information about the product. But whereas in a
production process like Saloon, the customer has to be physically
present to get his hair cut.
Issues caused by inseparability
Physical connection of the service provider to the service: In order
to provide the service to the customer, the service provider has to be
physically present and Face-to-face interaction with customers makes
employee's satisfaction critical when they are not able to provide proper
guidance to customers.
Involvement of the customer in the production processes:
Customers involvement may vary according to the requirement that the
customer be physically present to receive the service, i.e. for a dental

service, customer has to be physically present in order to solve his or her

problem related to teeth.
Involvement of other customers in the production process:
Customers presence is required in some service and some customers
often share a common service experience and that shared experience can
be negative or positive depending upon the experience the customer gets
out of the service he has received.
Perishability is a unique characteristic of service in which the
service cannot be saved. Unused services cannot be reserved or neither
can be inventoried. For example seats in a theatre can be inventoried for
a period of time before the purchase of the ticket and cannot be
inventoried after the show is finished. Another example of perishability
is fresh meat, it can be stored for certain time period but once it sold it is
completely perished.

Issues caused by Perishability

Matching supply and demand is a major challenge for the service
provider, if there is a higher demand of service, than service providers
tend to make the supply of the service maximum. When there is a higher
demand, than the service provider gives optimal supply level.

Hiring Process
At Aviva, we understand that you come from diverse backgrounds
and therefore we evaluate you only for who you are. We have a uniform
multistage procedure, where every applicant gets a fair chance of
making it to our team. We have a numerical rating system, where all
your attributes, be it your qualifications or experience, age or family
background, all have predetermined points weightage. These points
determine the basic eligibility of a candidate. Once eligible, a screening
interview is conducted, followed by a basic assessment test. Successful
candidates make it to the final round of interviews. Final selections
depend upon your overall performance. So whether you are a housewife,

ex-serviceman, freelancer, post office agent, entrepreneur, or a chartered

accountant, you can join our team.

Chapter-4

Theoritical framework
Aviva Money Back Plan is a Traditional Money Back Plan

with Bonus Facility.

In this plan, the premium needs to be paid till the end of the
Policy Term or earlier Death. There is a Guaranteed Addition in
the first 3 years and after that the policy participates in the simple
Reversionary Bonus. This plan being a Money Back Plan, a
certain sum of money is given back to the Policyholder as
Survival Benefit as per the schedule mentioned at the time of
Policy Inception.

(120% of the Sum Assured + Guaranteed Additions

accrued Bonus all Survival Benefits already paid) is given to the
policyholder at the end of the Policy Term as Maturity Benefit.
However, if the Life Insured dies within the policy tenure, the
nominee would receive the entire Sum Assured as Death Benefit,

irrespective of the Survival Benefit already paid. This plan has

Guaranteed Additions of Rs 40 per Rs 1000 Sum Assured which is
paid till the end of the Policy Term. This plan also has Accidental
Death Benefit as an additional rider.

Eligibility conditions and other restrictions in Aviva Money

Back Plan

Minimum

Maximum

For 12 and 15 year Policy Term,

SA= Rs 50,000
Sum Assured (in Rs.)

No Limit
For 18 and 21 year Policy Term,
SA= Rs 75,000

Policy Term (in years)

12

Premium Payment Term (in years)

21
Equal to Policy Term

12 years for PT= 18 years

52 years for PT= 18 years

13 years for PT= 15 years

55 years for PT= 15 years

14 years for PT= 12 years

58 years for PT= 12 years

15 years for PT= 21 years

49 years for PT= 21 years

70

5,000

No Limit

Entry Age of Policyholder (in years)

Age at Maturity (in years)

Premium (in Rs.)
Payment modes

Yearly, Half-yearly, Quarterly and Monthly

Sample illustration of Premiums in Aviva Money Back Plan

Age = 25, 35 and 45 years
Sum Assured = Rs 1,00,000
Policy Term = 21 years
Premium Paying Term = Regular Pay

Additional Features and Benefits of Aviva Money Back Plan

Riders There is 1 additional rider available in this policy

1.

Accidental Death Benefit rider

What happens if?

You stop paying the premium

If you stop paying the

premiums, the policy would lapse and all benefits would cease.
Then the policyholder would have an option to convert the plan
into a Paid Up Policy if at least 3 years premiums have been paid
and continue the life coverage for a Reduced Sum Assured. The
policy can also be revived within 2 years from the date of first
unpaid premium.

You want to surrender the policy There is a Guaranteed

Surrender Value after 3 policy years

Guaranteed Surrender Value = 30% of all premiums paid

1st years premium

There is Special Surrender Value in this plan as well.

You want a loan against your policy Loan facility is not

available under this policy.

Chapter-5
Questionnare&Findings

1.Awarness of life insurance in consumer

Yes
no of respondants
percentage of
respondants

104

No
100%

0%

yes

no

Interpretation:

According to the data, maximum people are aware of life insurance policy;
here 100% of the people are aware of life insurance.

2. In buying insurance policy, your decision is influenced by

Family
Friends
professional and
trade union
brand and
advertisement

No of
respondants
38
31

percenta
ge of
responda
nts
37%
30%

16

15%

19

18%

18%
37%
15%

30%
family

friends

professional and trade union

brand and advertisement

Interpretatoin:

From the above data, when any one buy insurance policy then his or her
decision is depend on family friends etc. here if we see 37% respondents
believe his family to buy insurance policy but only 18% respondents decision
depend on brand advertisement of the company.so here we that family and
friends plays a big role to buy insurance policy

3.what makes u more attract in insurance?

No of respondants % of respontants
Bonus
69
66%
Generated income
31
30%
Return depend on
13
4%
market

Return depend on market

Generated income

Bonus

10

20

30

no of respondants

Interpretation:

40
Column1

50

60

70

80

Mostly people invest money in insurance for his life security but now they also
think about profit. Here 66% of people attracted by bonus and only 4% people
attracted by return depend on market.

4.What is your purpose of buying insurance policy?

For old age saving

Family saving
Time to time needs

No of
Responde
nts

Opposite
circumstances

% of
responden
53 ts
51%
14
14%
22
21%
15

14%

14%

For old age saving

Family saving

21%

51%

Time to time needs

Opposite circumstances

14%

Interpretation:
Most of the people buy insurance policy for his old days saving because they
want to save money for old age and only 21% people buy insurance for time to
time needs.

5.How much money you want to invest in insurance?

Premiu
m
Amoun
10000 to
15000
15001 to
20000
20001 to
25000 to
25001
30000
30001 to
35000

No. of
responden
ts

15
29
31
21
5

premium
35
30
25
20
15
10
5
0

Interpretation:

Mode
Cash
Cheque
Deman
d Draft

No. Of
Responde
nts

36
41
27

According to above data, Here most of the people

invest 20001 Rs. To 25000 Rs. And very less
number of people invest huge amount in

insurance.

6.How do you pay your premium?

way of paying premium

26%

35%

Cash
Cheque
Demand Draft

39%

Interpretation:
Most of the respondent pay their premium through cheque. Here 41
respondent pay their premium through cheque and 36 respondent pay their
premium through cash and 27 respondent pay their premium through demand
draft.

7.In what mode do you pay want to give your premium?

No. of
Responde
Mode
Monthly nts
HalfYearl
y
Yearly

% of
responde
27 nt
26%
41

39%

36

35%

Mode of premium

Monthly

Half- Yearly

Yearly

Interpretation:
Customer pay the premium in three mode monthly, half yearly and yearly.
Here 39 % respondent pay in half yearly mode and 35% respondent pay yearly
mode premium and 26% pay monthly.

8.In which type of company u believe most?

Company
Private
Compa
ny
Public
Company

No. of
responde
nt
38%
62%

private company

public company

Interpretation:
Most of the people want to invest their money in public insurance
company and in private insurance company only 38 respondent want to invest
their money.

9.Which type of insurance plan you want?

PLAN
ULIP Plan

No. of
Responde
nts

% of
responden
22 ts
21%

Traditin
ol Plan
Health Plan
Term plan

41
24
17

40%
23%
16%

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

ulip plan

traditional plan

health plan

term plan

Interpretation:

In insurance plan respondent want mostly traditional plan. 40%

respondent use traditional plan and 21% respondent want to buy ULIP
Plan,23% want health plan and 16% want term plan

10.Are you aware of money back policy of any life insurance company?

Yes

No. of
Responde
nts

% of
responden
87 ts
84%

No

17

16%

Awarness of money back policy

16%
yes
no

84%

Interpretation:

There are 84% respondents who aware about money back policy and
16% respondent have no idea about money back policy.

11. How many money back policy do you have?

No. of
No. of policy Responde
0 nts
1
2
3
4 and above

% of
responden
17 ts
16%
37
36%
27
26%
20
19%
3
3%

3%
16%
19%

0
1
2
3
4 and above

26%

36%

Interpretation:
There are 84% aware with Money back policy in this 84% respondent 37
people have 1 money back policy and 27 people have 2 money back policy.
There are 16% respondent say they havent any money back policy.

12. Are you interested to take money back policy?

Yes
No
Can't say

No. of
Responde
nts

% of
responden
57 ts
71%
28
13%
19
16%

16%

13%

yes
no
cant say

71%

Interpretation:

There are 55% respondent interested to take money back policy again
but 27% respondent have no interest to take this policy again and 18%
respondent dont know what to do.

13. Are you satisfied with the return on investment, which you are getting
from your policy?

No. of
Responde
Very satisfied nts
Satisfied
Can't say
Not
Much
satisfies
dissatisfied

% of
responden
22 ts
21%
62
60%
4
4%
4
12

4%
11%

Satisfaction level
70%
60%
50%
40%
30%
20%
10%
0%

Very satisfied

Satisfied

Can't say

Not Much satisfies

dissatisfied

Interpretation:

Here we see very positive result of my respondent about money back

policy product. In that 81% respondent 60 % respondent satisfied with return
on this money back policy and 21% respondent very satisfied with money
back policy and 11% respondent not satisfied with return on this money back
policy.

Chapter-6

Results
In present Indian market, the investment habits
of Indian consumers are changing very frequently.
The individuals have their own perception towards
various types of investment plans. The study of this
research

work

was

focused

over

consumers

perception on investment towards money back

policy of Life Insurance Services. The objectives of
the study were to evaluate the factors

underlying

consumer perception towards investment in life

insurance policies; and to compare the differences in consumer
perception of male and female consumers.
In india LIC have a 25 years monopoly and costumers were
bound to buy insurance from LIC but in 2000 maximum private
insurance companies enter in the Indian insurance market and that
time very less number of people want to buy insurance from this
private companies and today also if see this survey then according
to survey 62% people believe in LIC and remaining 38% people

go with private companies like Aviva Life Insurance, ICICI

Prudential. But today the face of insurance market is totally
changed now people move to private sector insurance companies.
because this private companies gives more bonus and return to his
costumer .and costumer also buy that policy where he got more
bonus and return. Now a days controversy is going on between
SEBI and IRDA about ULIP policies. In ULIP policies companies
charged a huge money in first premium of his policy and that
policy return also depend on market if market is on peak then
costumer have good profit with good return. and insurance market
is affected by this controversy now people are scared to buy ULIP
policy only 22% people interested to buy this plan but people
more attracted in traditional plan because in this costumer have a
certain return guarantee and charges also less in comparison than
ULIP policy and Money Back policy is a traditional plan where
more number of people attracted.According to survey 71% people
interested to buy this Money Back policy and they are satisfied
with this policy. In 61 respondent out of 104 respondent are
satisfied with Money Back policy.

Conclusion

The perception of the Money back plan of reliance life

insurance is good towards the costumer. In RLI Reliance Cash
Flow Plan is the cash back plan. Necessarily customer need that
type of plan where they get any benefit and safety for his money
and this plan is safe as well as benefitted also because there is a
lots of benefit with this plan so this is the reason this plan is more
popular in Indian market. Savings and Investment Plan gives
the double benefit of easy liquidity through lump sum cash along
with life insurance. During the time of need this policy provides
the money at times. This policy gives the freedom to the insured
to live to the full at present and at the same time assures the safety
of the future by giving the flexibility of being paid a specific
percentage of the Sum Assured at particular intervals.

But Indian customer perception basically this

1. Easy liquidity of periodic cash flow at the end of the 4th
year and thereafter at the end of every 3 years.
2. Savings with Investment Plan
3. Safety for the money

The consumers perception towards Life Insurance Policies

is positive. It developed a positive mind sets for their investment
pattern, in insurance policies. Still some actions are needed for
developing insurance market. The major factors playing the role in
developing consumers perception towards Life Insurance Policies
are Consumer Loyalty, Service Quality, Ease of Procedures,
Satisfaction Level, Company Image, and Company-Client
Relationship. Insurance industry has to go ahead. A lot of
opportunities are still waiting. This research will help in
developing the market share, loyalty and further development in
insurance sector.

Suggestions
1. Insurance companies should try to adopt different strategies to market
their products or plan. Companies should not primarily focus on the agents
for their business.
2. Insurance company should try to decrease its charge.

3. Agents should not be cheat with his client .they should

be give clear information about insurance product

Annexure
QUESTIONNAIRES
Data Sheet of data collection In Visakhapatnam

QUESTIONNAIRES
Declaration: It is purely for academic purposes and the data given will not be
passed to anyone. I request you to kindly fill up the form. Thank you.
NAME:

SURNAME

DATE OF BIRTH:
PRESENTADDRESS

LANDMARK:

PIN

PHONE NO

MOBILE

PERMANENT ADDRESS:

EDUCATION:
OCCUPATION:
MONTHLY INCOME:
a) <Rs15,000

b) Rs15000-Rs-30,000

1. Do you aware with life Insurance?

c)> Rs30, 000

a) Yes

b) No

2. Are you interested in investing your money?

i) Yes

ii) No

iii) Not now

3. Where you want to invest your money?

i) Shares

ii) Mutual funds

iii) Insurance

iv) Fixed deposits

4. What is your purpose for buying insurance policy?

a) For old age saving

b) Family needs
c) Time to time needs
d) Opposite circumstances

5. In buying insurance policy, your decision is influenced by

a) Family
b) Friends
c) Professional and trade union group
d) Brand and Advertisement

6. What is your savings as a percentage of annual income?

a).15 to 20

b) 20 to 40

c) 40 to 50

7. How much money you want to invest in insurance? a)

10,000 to 15,000
b) 15,001 to 20,000
c) 20,001 to 25,000
d) 25,001 to 30,000
e) 30,001 to 35,000

7. In which company you believe most ?

d) 50 to 60

a) Private insurance company

b) Public insurance company

8. Do you know how many insurance companies prevailing in India?

a) 1

b) 8

c) 16

d) More than 20

d) No idea

9. What will you more attract in insurance?

a) Bonus
b) Generated Bonus
c) Return depend on market

10. How do you want to give your premium?

a) Cash
b) Cheque
c) Demand Draft

11.

Do you think that insurance is necessary in todays life?

a) Yes

b) No

12. In what mode you want to give premium?

a. Monthly
b. Half-yearly
c. Yearly

13. Do you want which type of insurance plan?

a) ULIP
b) Traditional
c) Health
d) Term Plan
14. Do you aware with Money Back Policy of any life insurance company ?
a) Yes
b) No

15. How much Money Back policy you have ?

a) 0
b) 1
c) 2
d) 3
e) 4 and above

16. Do you interested to take Money Back policy ?

a) Yes
b) No
c) Cant say
17. Do you interested to take Money Back policy?
a. Yes
b. No
c. Cant say
18. Are you satisfied with the return on investment, which you are getting from your
policy?
a. Very satisfied
b. Satisfied
c. Cant say
d. Not much satisfied
e. Dissatisfied.