INTERNATIONAL SCHOOL OF

MANAGEMENT PATNA

PGDM (2018-20)

Summer Internship Project Report

On

“ROLE OF CRM FOR EFFECTIVE SELLING OF LIFE INSURANCE

PRODUCT WITH SPECIAL REFERENCE TO SHRIRAM LIFE INSURANCE”

Submitted in the partial fulfillment for the

Requirements of the degree of PGDM

Dr. NAWAB AKRAM ABDUL KALAM

Assistant Professor ISM PGDM182057

 DECLARATION

I hereby declare that the Project Work entitled “ROLE OF CRM FOR

EFFECTIVE SELLING OF LIFE INSURANCE PRODUCT WITH

SPECIAL REFERENCE TO SHRIRAM LIFE INSURANCE”, has been

carried out by me under the guidance of (Name of Research Guide with

designation), at International School of Management, Patna. The research

work is original and has not violated any of plagiarism norms.

I also declare that this Project has not been submitted to any University/

Institute for the award of any Degree/Diploma.

Place: Patna

Date: ABDUL KALAM

 CERTIFICATE
This is to certify that the Project Work entitled “ROLE OF CRM FOR
EFFECTIVE SELLING OF LIFE INSURANCE PRODUCT WITH
SPECIAL REFERENCE TO SHRIRAM LIFE INSURANCE” has been
accomplished by (Name of student, roll no, course) under my guidance and
supervision. This project is being submitted by him/her as the partial
fulfillment of requirements for the award of PGDM from International
School of Management, Patna.

This work has not been submitted by him/her anywhere else for the award of
any degree or diploma. All sources of information and help have been duly
mentioned and acknowledged.

Research Guide:

Dr.Nawab Akram

Assistant Professor, ISM PATNA.

 ACKNOWLEDGEMENT

The most awaited moment of successful completion of endeavor is

always a result of persons involved explicitly or implicitly there in. It
is impossible without the help and guidance of the people around to
carry on this research work. I take the opportunity to express my
sincere gratitude to each and every person who gave me the guidance
and help for preparing the report.

I take this opportunity to thanks to (Management), International

School of Management for providing me an opportunity to work for
this research.

I am also desirous of placing on record profound indebtedness to

MR. NAWAB AKRAM SIR and all the members of faculty of
International School of Management, Patna, for the valuable advice,
guidance and support that they offered.

Last but not the least; I would also like to thanks all the respondents
for giving me their time and relevant information.

My strength and inspiration are the blessings of my parents and my

friends. I owe all my success and achievements to them.

ABDUL KALAM

PGDM-I
 TABLE OF CONTENTS
Chapter No. Contents Page No.
1 History of Insurance
2 Introduction to Insurance Sector
3 What is Insurance
4 Functions of Insurance
5 Life Insurance
6 Types of Life Insurance
7 Insurance Regulatory Authority
8 Shriram Life Insurance Co. Ltd.
9 Vision of the Company
10 Products
11 Major players in life insurance
12 SWOT Analysis
13 Literature Review
14 Rationale of the study
15 Objective of the study
16 Sources of Data
17 Research Instrument
18 Scope & Limitation of Study
19 Data Analysis & Interpretation
20 Findings, Recommendation & Conclusion
21 Bibliography
22 Annexure
OVERVIEW OF INSURANCE
INDUSTRY
 CHAPTER-1

HISTORY OF INSURANCE

Insurance has been around since ancient times. The Babylonians and Phoenicians had
ocean marine insurance to protect a merchant against losses incurred when a ship did not
reach its intended destination with its load of goods or did not return with payment. This
form of insurance, called Respondentia, evolved because the goods on board often were
used as collateral for a loan. The lender charged the borrower interest on the loan and
levied an additional sum, the premium, to cover the cost of the respondentia contract. If
the ship reached its destination and returned, the merchant received payment for the
goods and in turn paid the moneylender. If the ship failed to return, the debt was
cancelled. This system was profitable to lenders because many respondentia contracts
were sold, and debts were paid more often than cancelled. In ancient Rome, associations
had a form of insurance for their members. Each member made regular payments to the
association in return for coverage of funeral expenses or for assistance to family members
who were injured or ill.

Insurance also existed in 17th-century England, which was then one of the world's
principal maritime powers. Those seeking marine insurance would post a list of their
cargo and voyages in a London coffee house owned by Edward Lloyd. Private investors
would examine the list and sign their name by the entries they were willing to guarantee
for a fee. These private investors were the first insurance underwriters, and the coffee
house became the world center of marine insurance. Today the organization is known as
Lloyds of London, and it brings together individuals, most often working in syndicates,
who write all types of insurance.

Insurance in the modern form originated in the Mediterranean during 14th century. The
earliest references to insurance have been found in Babylonia, the Greeks and the
Romans. The use of insurance appeared in the account of North Italian merchant banks
who then dominated the international trade in Europe at that time. Marine insurance is the
oldest form of insurance followed by life insurance and fire insurance. The patterns that
have been used in England followed in other countries also in these kinds of insurance

The oldest and the earliest records of marine policy relates to a Mediterranean voyage in
1347. In the year 1400, a book written by a merchant of Florence, indicates premium
rates charged for the shipments by sea from London to Pisa. Marine Insurance spread
from Italy to trading routes in other countries of Europe.

Fire insurance has its origin in Germany where it was introduced in municipalities for
providing compensation to owners of the property, in return for an annual contribution,
based on the rent of those premises. The fire insurance in its present form started after the
most disastrous fire in human history known as the 'Great Fire' in London, which had
destroyed several buildings. It drew the attention of the public and the first fire insurance
commercially transacted in 1667. The Industrial Revolution (1720-1850) gave much
impetus to fire insurance. The Nineteenth century marked the development of fire
insurance.

Due to the increasing demands of the time, different forms of insurance have been
developed. Industrial Revolution of 19th century had facilitated the development of
accidental insurance, theft and dacoits, fidelity insurance, etc. In 20th century, many
types of social insurance started operating, viz., unemployment insurance, crop insurance,
cattle insurance, etc. This way the business of insurance developed simultaneously with
human and social development. Today, the use of computers in the field of insurance is
frequently increasing. Insurance becomes an inseparable part of human development.

The early developments of life insurance were closely linked with that of marine
insurance. The first insurers of life were the marine insurance underwriters who started
issuing life insurance policies on the life of master and crew of the ship, and the
merchants. The early insurance contracts took the nature of policies for a short period
only. The underwriters issued annuities and pension for a fixed period or for life to
provide relief to widows on the death of their husbands. The first life insurance policy
was issued on 18th June 1583, on the life of William Gibbons for a period of 12
months.

The history of life insurance in India dates back to 1818 when it was conceived as a

means to provide for English Widows. Interestingly in those days a higher premium was

charged for Indian lives than the non-Indian lives as Indian lives were considered more

risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The first general insurance company- Tital
Insurance Company Limited was established in 1850. Till the end of nineteenth century
insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during 20's
and 30's sullied insurance business in India. By 1938 there were 176 insurance
companies. The first comprehensive legislation was introduced with the Insurance Act
of 1938 that provided strict State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance remained an urban
phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and LIC was born.
Nationalization was justified on the grounds that it would create much needed funds for
rapid industrialization. This was in conformity with the Government's chosen path of
State- led planning and development.
 CHAPTER-2

INTRODUCTION TO INSURANCE SECTOR

The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed over a
period of almost 190 years. The business of life insurance in India in its existing form
started in India in the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.

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

1912– The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928 – The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938 – Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956 – 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crores from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:

1907 – The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957 – General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.

1968 – The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972 –The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
 CHAPTER-3

WHAT IS INSURANCE?

Insurance is a contract that provides compensation for specific losses in exchange for a
periodic payment. An individual contract is known as an insurance policy and the
periodic payment is known as the insurance premium. Insurance provides a mechanism
for shifting risk from a person, business, or organization to an insurance company in
exchange for the payment of the insurance premium.

There are many types of insurance and our guide provides information about the most
common types. The most important ones for most individuals are health insurance, life
insurance, and auto insurance. Health insurance provides protection against sickness
and bodily injury. Auto insurance provides can pay for injuries or damage resulting from
an auto accident or when an auto is vandalized or stolen. Life insurance makes a
payment to your beneficiaries in the event of your death.

Life insurance pays a specified sum to the beneficiaries upon the death of the insured. It
is generally used to provide cash to your family in the event of your death. There are
several types of life insurance policies. The most common types are whole life
insurance and term life insurance. Whole life insurance provides a lifetime of protection
 CHAPTER-4

FUNCTIONS OF INSURANCE

The functions of Insurance can be bifurcated into two parts:

1. Primary Functions

2. Secondary Functions

3. Other Functions

The PRIMARY FUNCTIONS of insurance include the following:

Provide Protection

The primary function of insurance is to provide protection against future risk, accidents
and uncertainty. Insurance cannot check the happening of the risk, but can certainly
provide for the losses of risk. Insurance is actually a protection against economic loss, by
sharing the risk with others.

Collective bearing of risk

Insurance is a device to share the financial loss of few among many others. Insurance is a
mean by which few losses are shared among larger number of people. All the insured
contribute the premiums towards a fund and out of which the persons exposed to a
particular risk is paid.

Assessment of risk

Insurance determines the probable volume of risk by evaluating various factors that give
rise to risk. Risk is the basis for determining the premium rate also.
The SECONDARY FUNCTIONS of insurance includes the following:

Prevention of Losses

Insurance cautions individuals and businessmen to adopt suitable device to

prevent unfortunate consequences of risk by observing safety instructions;
installation of automatic sparkler or alarm systems, etc. Prevention of losses cause
lesser payment to the assured by the insurer and this will encourage for more
savings by way of premium. Reduced rate of premiums stimulate for more
business and better protection to the insured.

Small capital to cover larger risks

Insurance relieves the businessmen from security investments, by paying small

amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries

Insurance provides development opportunity to those larger industries having

more risks in their setting up. Even the financial institutions may be prepared to
give credit to sick industrial units which have insured their assets including plant
and machinery as long as you pay the premiums to keep the policy active.

They also accrue a cash value and thus offer a savings component. Term life
insurance provides protection only during the term of the policy and the policies
are usually renewable at the end of the term.
 CHAPTER-5

LIFE INSURANCE

Life insurance is a form of insurance that pays monetary proceeds upon the death of the
insured covered in the policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance company agrees to pay
an agreed upon sum of money to the insured's named beneficiary so long as the insured's
premiums are current.

Life insurance is a guarantee that your family will receive financial support, even in your
absence. Put simply, life insurance provides your family with a sum of money should
something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving

scheme, which empowers you to accumulate wealth-to buy a new car, get your children
married and even retire comfortably.

Usually the insurance contract provides for the payment of an amount on the date of
maturity or at specified dates at periodic intervals or at unfortunate death if it occurs
earlier. Obviously, there is a price to be paid for this benefit. Among other things, the
contract also provides for the payment of premiums by the assured. Life Insurance is
universally acknowledged as a tool to eliminate risk, substitute certainty for uncertainty
and ensure timely aid of the family in the unfortunate event of the death of the
breadwinner. In other words, it is the civilized world's partial solution to the problems
caused by death.

In a nutshell, life insurance helps in two ways: premature death, which leaves dependent
families to feed for itself and old age without visible means of support.
 CHAPTER-6
TYPES OF LIFE INSURANCE

Whole Life Insurance

Whole life insurance, also known as traditional, straight, or permanent life insurance is a
policy that is kept in force for a person's whole life as long as the scheduled Premiums
are paid. Whole insurance policies can be a great value because they accrue cash value--
you get savings as well as insurance. Some even pay a dividend which depending on how
well the insurance is doing. If the company is doing well then the premiums are paid back
to the policyholder in the form of dividends. The policyholder can use the dividend to
offset his premiums, to purchase more insurance, or to purchase additional term life
insurance.

Term Life Insurance

Term life insurance is a low-cost form of life insurance that covers the insured for only a
certain period of time (the term), not for his entire life. If the insured dies during the
coverage period, the beneficiary receives the death benefit. If the insured survives the
time period, the policy expires and no benefit is paid.

Term life insurance is best when coverage is only needed for a certain period of time or
the short-term cost is the most important factor. In early years, term life insurance costs
significantly less than whole life or other types of policies. It becomes increasingly
expensive, as the insured grows older.

Based on a "risk profile" created by the insurance company, you will be offered an
insurance "premium" (monthly or yearly cost) for the amount of life insurance coverage
you request. This risk profile takes into consideration a number of factors (including your
age, weight, gender, personal health history, family health history, smoking/drinking
habits, where you live, and various other aspects about your life like your marital status).
 CHAPTER-7

INSURANCE REGULATORY AUTHORITY

On the recommendation of Malhotra Committee, an Insurance Regulatory

Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to
activate an insurance regulatory apparatus essential for proper monitoring and control of
the Insurance industry. Due to this Act several Indian private companies have entered
into the insurance market, and some companies have joined with foreign partners.

In this economic reform process the Insurance Companies will boost the socio-economic
development process. The huge amount of funds that will be at the disposal of Insurance
Companies will be directed as desired avenues like housing, safe drinking water,
electricity, primary education and infrastructure. The growth of the debt market will also
get a boost. Above all the policyholders will get better pricing of products from
competitive insurance companies.

The Government of India (GOI) opened the insurance sector to private players on
October 24, 2000, thus unraveling a new chapter in this field. This new policy of the GOI
is an outcome of India’s policy of liberalization and also the result of its obligation as a
signatory to the WTO to conform to its principles and guidelines relating to the reduction
of barriers to trade in services. This epoch-making decision has ushered in a new era that
has transgressed four decades of complete control by the public sector over the insurance
sector (life insurance was nationalized in 1956 by merging 245 private insurance
companies to form the Life Insurance Corporation of India (LIC) while general insurance
was nationalized with the formation of the General Insurance Corporation (GIC) in
1972).
This decision of the GOI has been accompanied by a set of laws and regulations
governing this domain. Accordingly, the Insurance Regulatory and Development
Authority Act, 1999 (the IRDA Act) was enacted with the predominant aim of setting up
an autonomous body known as the Insurance Regulatory and Development Authority
(IRDA) to regulate, promote and ensure orderly growth of the insurance industry.
Further, the Insurance Act, 1938 has been significantly amended so as to bring it in
conformity with the IRDA Act.

The IRDA has a twin role, i.e., regulation as well as development of the insurance sector.
Insurance is a federal subject in India and the legislation that governs insurance in India
is: -

1. The Insurance Act, 1938; and

2. The IRDA Act.

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.

In the private sector 12 life insurance and 6 general insurance companies have been
registered.
 CHAPTER-8

SHRIRAM LIFE INSURANCE CO LTD

The Shriram group is one of the largest and well respected financial services
conglomerates in India. The group’s main line of activities in financial services include,
chit funds, truck financing, consumer durable financing, stock broking, insurance
broking, and life insurance. The group has a customer base of 30 lack chit subscribers
and investors and operates through a network of 630 offices all over the country. The
group has the largest agency force in the privet sector consisting of more than 75000
loyal and dedicated agents.

Shriram Life insurance Co Ltd. was launched in January 2006. India currently accounts
for 16% of the world’s population. 70% of the populations is below 35 years of age.
Between 2001 and 2006, Indian demography has changed with the higher income classes
constituting about 79%. This presents huge market for insurance products.

This is amply reflected in the growth of insurance industry in the last recent years.
However this growth has not reached to rural and semi urban areas. Shriram group with
its network of branches particularly in these areas a unique opportunity for reaching out a
wider audience and sustain the growth story of the insurance industry. Most of the
products of Shriram life were designed by advisors working in the field and based on
need analysis done through intense market research.

During the first year of operation the company earned a profit of 2 crores which doubled
to 4 crores in the subsequent year. For the fiscal ended march 2009 the company earned a
profit of 8 crores adding the total premium at the end of 2008-09 stood at 1000 crores.
The company aims to garner new business premium of Rs 1000 crores in the next 3-4
years. The company also intends to increase in 100 cities in next couple of years.
 THE JOINT VENTURE

Shriram Life Insurance Company Ltd is a joint venture of Shriram group and Sanlam
with South Africa holding 26% of the stack.

Sanlam Life insurance Limited, a part of the Sanlam Group, is one of the largest
providers of life insurance in South Africa with 3.2 million individuals policies under
administration
 CHAPTER-9

VISION OF THE COMPANY

The Shriram Life Insurance Company is set out with the objective of reaching out to the
common man with a host of products and services that would be helpful to him in his
path to prosperity.

Efficiency in operations, integrity and a strong focus on catering to the needs of the
common man, by offering him high quality and cost-effective products and services, are
the values driving the organization. These core values are deep-rooted within the
organization and have been strongly adhered to over the decades.

The company prides itself on its perfect understanding of the customer. Each product or
service is tailor-made to perfectly suit the needs of the customer. It is this guiding
philosophy of putting people first that has brought the Company closer to the grassroots
and has made it the preferred choice for all the truck financing requirements amongst the
customers
 CHAPTER-10

PRODUCTS

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A
brief detail of both segments:
Unit Linked Insurance Products

ULIPs have gained high acceptance due to attractive features they offer. These include:

1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum Assured even after the plan has
started.
4. Flexibility to change asset allocation by switching between funds
2. Transparency
1. Charges in the plan & net amount invested are known to the customer
2. Convenience of tracking one’s investment performance on a daily basis.

3. Liquidity
1. Option to withdraw money after few years (comfort required in case of
exigency)
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed
4. Fund Options
1. A choice of funds (ranging from equity, debt, cash or a combination)
2. Option to choose your fund mix based on desired asset allocation.

ULIP Plans:
1. Future Wealth 2,
 2. Pension Plan 2,
3. Shri Plus 2,
4. Shri Vidya Plus 2,
5. Shri Vikas 2,
6. Shri Vishram 2.

TRADITIONAL PLANS

These are the oldest types of plans available. These plans cater to customers with a low
risk appetite. Some of the common features of traditional plans are:

1. Steady Investment
1. Major chunk of investible funds are in debt instruments
2. Steady and almost assured returns over the long term
2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus
2. Helps in asset creation as they are for a long tenure
3. Premium to Sum Assured ratios are fixed for each plan and age.
4. Generally withdrawals are not allowed before maturity

1. Shri Laabh,

2. Shri Life,

3. Shri Raksha,

4. Akshya Nidhi,

5. Shri Surksha,

6. Shri Vidya,

7. Shri Vivah
 CHAPTER-11

MAJOR PLAYERS IN LIFE INSURANCE

Sr. No. Name of the Company

1 Bajaj Allianz Life Insurance Company Limited
2 Birla Sun Life Insurance Co. Ltd
3 HDFC Standard Life Insurance Co. Ltd
4 ICICI Prudential Life Insurance Co. Ltd
5 ING Vysya Life Insurance Company Ltd.
6 Life Insurance Corporation of India
7 Max New York Life Insurance Co. Ltd
8 Met Life India Insurance Company Pvt. Ltd.
9 Kotak Mahindra Old Mutual Life Insurance Limited
10 SBI Life Insurance Co. Ltd
11 Tata AIG Life Insurance Company Limited
12 Reliance Life Insurance Company Limited.
13 Aviva Life Insurance Co. India Pvt. Ltd.
14 Sahara India Life Insurance Co, Ltd.
15 Bharti AXA Life Insurance Company Ltd.
 CHAPTER-12

SWOT ANALYSIS

Strength:

 Quality of products
 Quality of services
 Highly cooperative and efficient staff & crew members
 Wide distribution network across the whole country.

Weakness:

 Less promotional activities

 Less advertising efforts
 Low market share compared to PSUs

Opportunities:

 By making some good promotional efforts Shriram can gain more number
of customers who will be loyal.
 Increasing awareness will result in increase in customer base.
 Company has already proved its strength in market so, soft work required to
launch this product
 Huge potential of insurance business in India.

Threats:

 Challenges posed by other competitor in the market.

 Lower customer base may hinder prompt service
 Social scenario.
 Government policies
 CHAPTER-13

LITERATURE REVIEW

 Kirchler and Angela-Christian Hubert found that the present study aims at
describing spouses ‘relative dominance in decisions concerning different forms
of investment. As determinants of spouses’ dominance, partnership
characteristics, such as partnership role attitudes, marital satisfaction and
individual expertise in relation to different investments, were considered. A
questionnaire on spouses’ dominance in making decisions on various
investments, on the characteristics of particular investments and on partnership
characteristics was completed by 142 Austrian couples. Basically, wives
appeared to adapt to the dominance exerted by their husbands in savings and
investment decisions. Wives’ dominance was highest in egalitarian partnerships,
where autonomic and wife-dominated decisions were reported more frequently
than in traditional partnerships. Additionally, spouses’ relative expertise in
relation to the investments in question showed strong effects on dominance
distribution: Spouses with higher expertise than their partners exerted more
dominance in decision-making processes.

 Evan Mills, Ph.D. Studied the insurance industry is rarely thought of as having
much concern about energy issues. However, the historical involvement by
insurers and allied industries in the development and deployment of familiar
technologies such as automobile air bags, fire prevention/suppression systems,
and anti-theft devices, shows that this industry has a long history of utilizing
technology to improve safety and otherwise reduce the likelihood of losses for
which they would otherwise have to pay. We have identified nearly 80 examples
of energy-efficient and renewable energy technologies that offer “loss-
prevention” benefits, and have mapped these opportunities onto the appropriate
segments of the very diverse insurance sector (life, health, property, liability,
business interruption, etc.).
 Slovic, Fischhoff, Lichtenstein, Corrigan, and Combs (1977) found that subjects
were more likely to buy insurance against small, high-probability losses than
insurance against large, low probability losses, Hershey and Schoemaker (1980)
reported the opposite result.
 Michael L. Walden (1985) told that the option's package view of the whole life
insurance policy suggests that a whole life policy is a package of options, each of
which has value and is expected to influence the price of the policy. This
viewpoint implies the general hypothesis that price differences between whole
life policies can be explained by differences in policy contract provisions and
differences in selected company characteristics. The option's package 3 theories
were empirically investigated using regression analysis on data from a sample of
policies marketed in NorthCarolina. The results suggest support for the options
package theory.
 Roger. A. Formisano (1981) examined, via consumer interviews, the impact of
the National Association of Insurance Commissioner's Model Life Insurance
Solicitation Regulation as implemented in New Jersey. A substantial portion of
the insurance buyers sampled did not become aware of the provisions of the
regulation aimed to improve their buying ability. Further, many life insurance
buyers were not well informed concerning the nature and operation of life
insurance contracts, and in particular, the life insurance policies that they had
purchased.
 CHAPTER-14
RATIONALE OF THE STUDY
 After government opened the doors for the private insurance players to conduct
insurance business in Indian market in the year 2000, many private life and non-
life (general) insurance companies entered in Indian market. And at present there
are 4 public sector companies and more than 12 private sector companies are
doing business of life insurance in Indian market. However till the date public
sector companies are in dominant position and private general insurance
companies have very less market share as compared to PSUs.
 The reason behind this less business of private insurance companies is the lack of
awareness among the people about these private general insurance companies.
Shriram has started its operation in Patna in the recent years. It is essential to
know for the company that at what extent industrial areas of Patna are aware
about Shriram Life Insurance Co. Ltd. and familiarity of industries with the
insurance products and services offered by the company.
 So this research study is conducted with the objective to know the Consumer
Awareness of Shriram Life Insurance Co. Ltd among the people of Patna.

CHAPTER-15

OBJECTIVE OF THE STUDY

1. To evaluate the role of CRM pre-sales activities.

2. To understand the effect of CRM on CROSS-SELLING & UP-SELLING of life insurance
products.
3. To analyze the importance of post-sales contact on sale of life insurance products.
4. To analyze the role CRM employees efficiencies and sales performance.
 CHAPTER-16

SOURCES OF DATA

Primary Data:

For my project primary data I have collected through structured questionnaire and
interview with respondents from different location in areas of Patna city.

Secondary Data:

For this project secondary data is the information collected from catalogues of the
Company, Internet, books, articles, magazines and interaction with company
professionals.
 CHAPTER-17

RESEARCH INSTRUMENT

For this project research instrument is the personal interview with the structured
questionnaire containing related questions for the selected topic of the research study

SAMPLING PROCESS

For this research project random respondents are taken from areas of Patna city

Sampling universe: PATNA city

Sampling technique: Random sampling

Sample size: 70 respondents

Research instrument: Personal interview with structured questionnaire.

 CHAPTER-18

SCOPE OF THE STUDY

This project study is helpful in following aspects.

 It will be helpful to the professionals of Shriram life insurance co. ltd. to know the
level of brand awareness among the industrial units of Patna city.
 It will be helpful in knowing awareness about the competitors.
 It will be helpful in knowing the awareness level about the policies offered by
Shriram life insurance.
 It will be helpful to know the satisfaction level of the customers to the insurance
companies.

LIMITATION OF THE STUDY

There are some limitations of this study are as follows:
 Personal Bias: Some respondents may have biasness towards some other
insurance company, so they may have not given correct information, which may
affect the conclusion of this study
 Time Limit: Time for this research work was limited otherwise more information
could have been collected.
 Area: The area for this research work was limited to Patna only, so we cannot
know about other customers outside this area.
 Sample Size: The sample size for this research is of only of 70 respondents which
may not reveal adequate and correct information
CHAPTER-19

DATA ANALYSIS

AND DATA INTERPRETATION

1. The Process of CRM has its influence on sales efficiency:-

Yes No

94% 6%

65 05

No, 7%

Yes, 93%

INTERPRETATION:- According to the survey conducted, 93% people believes that te

process of CRM has great influence on Sales Efficiency. While there were 7% people
who do not agree to this.
Q2. Qualify a prospect becomes easier with the help of effective CRM

STRONGLY SOMEWHAT NEITHER AGREE SOMEWHAT STRONGLY

AGREE AGREE NOR DISAGREE DISAGREE DISAGREE

37 24 06 02 01

56% 35% 6.9% 1.4% 0.7%

40 37
35
30 25 STRONGLY AGREE
25
20 SOMEWHAT AGREE
15
10 NEITHER AGREE NOR
5 3 3 2 DISAGREE
0 SOMEWHAT DISAGREE

STRONGLY DISAGREE

INTERPRETATION:- According to the survey conducted, 56% of people believes that

a prospect becomes easier with the help of effective CRM. While there are 35% people
who are somewhat agreeing that a prospect becomes easier with the help of effective
CRM.
Q3. CRM helps in building effective prospecting

STRONGLY SOMEWHAT NEITHER SOMEWHAT STRONGLY

AGREE AGREE AGREE NOR DISAGREE DISAGREE
DISAGREE

37 25 03 03 02

55.2% 37.3% 4.5% 4.5% 3%

40 37
35
30 25 STRONGLY AGREE
25
20 SOMEWHAT AGREE
15
10 NEITHER AGREE NOR
5 3 3 2 DISAGREE
0 SOMEWHAT DISAGREE

STRONGLY DISAGREE

INTERPRETATION:- According to the survey conducted, 55.2% people are strongly

agree to the fact that CRM helps in building effective prospect. While 37.3% people are
somewhat agreeing to this.
Q4. Do you feel that CRM contributes to your presentation and demonstration functions?

Yes NO

65 5

93% 7%

Yes
No

65

INTERPRETATION:- According to the survey conducted, 93% people feels that CRM
helps in contributing to their presentation and demonstration function. While there were only
7% people who do not agree to this.
Q5. For cross selling and up selling, effective CRM is ________________________

EXTREMELY SOMEWHAT NEITHER SOMEWHAT NOT AT ALL

IMPORTANT IMPORTANT IMPORTANT NOR IMPORTANT IMPORTANT
IMPORTANT

39 19 06 05 01

59% 27% 7% 5.8% 1.2%

45 39
40
35
30 EXTREMELY IMPORTANT
25 19
20 SMEWHAT IMPORTANT
15
10 6 5
5 1 NEITHER IMPORTANT
0 NOR UNIMPORTANT
SOMEWHAT
UNIMPORTANT
NOT AT ALL IMPORTANT

INTERPRETATION:- According to the survey conducted, 59% feels that CRM is

extremely important for UP SELLING and CROSS SELLING. While there were 27%
people who thinks that it is somewhat important.
Q6. Post sales contact to the customer by CRM helps in building long term Customer relation
and Customer retention

STRONGLY SOMEWHAT NEITHER SOMEWHAT STRONGLY

AGREE AGREE AGREE NOR DISAGREE DISAGREE
DISAGREE

45 15 8 2 0

65% 22% 10% 3% 0%

50
45
45
40 Strongly Agree
35
30 Somewhat Agree
25
20 Neither Agree nor
15
15 Disagree
10 8
Somewhat Disagree
5 2
0
0 Strongly Disagree
Strongly Somewhat Neither Somewhat Strongly
Agree Agree Agree nor Disagree Disagree
Disagree

INTERPRETATION:- According to the survey conducted, 65% people believes that

post sales contact to the customer by CRM helps in building long term Customer relation
and Customer retention. While there are 22% people who somewhat agree to this.
Q7. CRM helps in retaining profitable customers

STRONGLY SOMEWHAT NEITHER SOMEWHAT STRONGLY

AGREE AGREE AGREE NOR DISAGREE DISAGREE
DISAGREE

42 23 3 0 2

62% 31% 4.2 % 0% 2.8%

45 42
40
35
30
25 23

20
15
10
5 3 2
0
0
Strongly Agree Somewhat Neither agree Somewhat Strongly
Agree nor Disagree Disagree Disagree

INTERPRETATION:- According to the survey conducted, 62% people believes that

CRM helps in retaining profitable customers. While there were 31% people who
somewhat agree to this.
Q8. Well trained CRM workforce has great influence on sales performance of
sales team.

STRONGLY SOMEWHAT NEITHER SOMEWHAT STRONGLY

AGREE AGREE AGREE NOR DISAGREE DISAGREE
DISAGREE

51 11 3 2 3

72.1% 14.4% 4.8% 3.6% 4.8%

60
51
50

40

30

20
11
10
3 2 3
0
Strongly Agree Somewhat Neither Agree Somewhat Strongly
Agree nor Disagree Disagree Disagree

INTERPRETATION:- According to the survey conducted, 72.1% people strongly

agreed that Well trained CRM workforce has great influence on sales performance of
sales team, while there were 14.4% who are somewhat agreeing to this.
CHAPTER-20

FINDING, RECOMMENDATION

AND CONCLUSION
FINDING AND RECOMMENDATIONS TO THE COMPANY

On the basis of the research project work I did, there are some findings and
recommendations that have been mentioned here.
 Public sector insurance companies have very large business as compared to private
general insurance companies. So private companies have to go long for more and
increased business.
 These private companies have to focus significantly on CUSTOMER
RELATIONSHIP MANAGEMENT . People put more trust on government hold
companies than the private insurance companies. So private insurance companies
have to win confidence of people and have to create strong corporate image.
 This is clear from the research that CRM has a huge influence on the sales
efficiency of Life Insurance. So, the company must work on CRM effectively in
order to enhance its Sales efficiency
 It has also been find that CRM helps in retaining profitable customer, which is
again very important in generating profit for a company.

CONCLUSION

India has traditionally been a high savings oriented country - often described as being on
par with the thrifty Japan. Insurance sector in the US of A is as big in size as the banking
industry there. This gives us an idea of how important the sector is. Insurance sector
channelizes the savings of the people to long term investments. In India where
infrastructure is said to be of critical importance, this sector will bring the nations own
money for the nation.

There has been tremendous change in the insurance history. And with it there has been
continuous growth in this sector both in Indian as well as world context. The opening up
of the insurance sector has changed the whole look of the industry. Also the demand for
insurance is likely to increase with rising per-capita incomes, rising literacy rates and
increase of the service sector, as has been seen from the example of several other
developing countries. So let’s conduct this business with utmost economy with the spirit
of trusteeship; thereby making insurance widely popular.
 CHAPTER-21

BIBLIOGRAPHY

Books:

 I.M.Pandey: Basic Text Book of Financial Management: 9th Edition (2008): Vikas
Publication
 C.B.Gupta: Human Resource Management: 4th Edition (2007): Sultanchand and Sons
 Kotler, Keller, Koshy and Jha: Marketing Management: 6th Edition (2007): Pearson
Education
 C.R.Kothari: Research Methodology: 4th Edition (2004): New Age International Limited
 Khan and Jain: Financial Management: 4th Edition (2004): Tata McGraw Hill
 Cooper and Schindler: Business Research Method: 9th Edition (2006): Tata McGraw Hill

Magazines & Journals:

 Walden, Michael L. (1985); The Journal of Risk and Insurance: “Whole life policy is a
package of options“ (Vol.52 no.1,pp 44-58).
 Slovic, Fischhoff, Lichtenstein, Corrigan and Combs, (1977) Decision Research:
“Insurance against small, high-probability losses” (vol.2, issue 2, pp83-93).
 Formisano, Roger A. (1981); The Journal of Risk and Insurance: “Awareness of the
provisions of the regulation” (Vol.48 no.1, pp59-79)
 Smith, Michael L.(1982); The Journal of Risk and Insurance, “Policy owner behavior
towards life insurance” (Vol.49 no.4, pp583-601)
 Kirchler and Angela Christian Hubert: “Spouses ‘relative dominance in decisions
concerning different forms of investment” (.1999; accepted 1999; Available online
1999); Institute of Psychology, University of Vienna.
Websites:

www.shriram.com

www.irda.com

www.apnapaisa.com

www.indiainfoline.com

www.sanlam.com

Other Materials:

The Hindu- Business Line, Catalogs, Broachers, Business Operation Prospects

 CHAPTER-22 ANNEXURE

QUESTIONNAIRE FOR SHRIRAM LIFE INSURANCE

1. The Process of CRM has its influence on sales efficiency

(a) Yes (b) No
2. Qualify a prospect becomes easier with the help of effective CRM
(a) Strongly agree (b) Somewhat agree (c)Neither agree nor
disagree

(d) Somewhat disagree (e)Strongly disagree

3. CRM helps in building effective prospecting

(a) Strongly agree (b) Somewhat agree (c) neither agree nor
disagree

(d) Somewhat disagree (e) strongly disagree

4. Do you feel that CRM contributes to your presentation and demonstration functions?

(a) Yes (b) No

5. For cross selling and up selling, effective CRM is ________________________

(a) Extremely important (b) Somewhat important

(c) Neither important nor unimportant (d) Somewhat unimportant

(e) Not at all important

6. Post sales contact to the customer by CRM helps in building long term Customer
relation and Customer retention.

(a) Strongly agree (b) Somewhat agree (c) Neither agree nor
disagree

(d) Somewhat disagree (e) Strongly disagree

 7. CRM helps in retaining profitable customers.

(a) Strongly agree (b) Somewhat agree (c) Neither agree nor disagree

(d) Somewhat disagree (e) Strongly disagree

8. Well trained CRM work force has great influence on sales performance of sales team.

(a) Strongly agree (b) Somewhat agree (c) Neither agree nor disagree

(d) Somewhat disagree (e) Strongly disagree