SUMMER TRAINING PROJECT

REPORT
ON
Comparative analysis of
insurance Companies with
special reference to products &
consumer behavior
AT

ING Vysya Life Insurance

Company Ltd

SUBMITTED TO- SUBMITTED BY-

 DECLARATION

I hereby declare that the project work entitle “Comparative

analysis of insurance Companies with special reference to
products & consumer behavior AT ING Vysya Life
Insurance Company Ltd” Submitted at the NSB SCHOOL OF
BUSINESS as a summer training project report for the partial
fulfillment of the two years full time Master of Business
Administration (MBA) in marketing as an authentic work
developed by me at ING VYSYA LIFE INSURANSE
COMPNEY LIMITED , Nehru Place New Delhi from 22nd
April 2008 to 21st July 2008. This work has not been submitted
in part or full to this or any other university/ Institute for any
Degree or Diploma and does not form part of any other course
undergone by me.

Akhilesh Tripathi
NSB School of Business
B-II/66, M.C.I.E. Badarpur
New Delhi-110044

2
 TABLE OF CONTENTS

ACKNOWLEDGEMENT………………………………………………….4
PREFACE…………………………………………………………………...6
EXECUTIVE SUMMARY………………………………………………….8
ABOUT LIFE INSURANCE……………………………………………….9
ABOUT IRDA………………………………………………………………11
DUTIES AND OBLIGATION OF AN AGENT………………………..….14
HISTORY OF ING VYSYA…………………………………………….….17
INSURANCE IN INDIA……………………………………………….…. 19
EXECUTIVE SUMMARY-ING……………………………………….…..39
PRODUCTS OFFERD BY ING VYSYA LIFE……………………….…..40
COMPARATIVE ANALYSIS OF LIC AND ING LIFE PRODUCTS.…..86
FACT AND FINDINGS …………………………………………………..113
DATA ANALYSIS AND INTERPRETATION…………………………..114
LIMITATION……………………………………………….…………..…121
CONCLUSION……………………………………………..…………..…122
SUGGESTION……………………………................................................124
RECOMMENDATIONS…………………………………………………125
BIBLIOGRAPHY……………………………………………………...…127

3
 ACKNOWLEDGMENT

Progress in life of any project comes through taking initiative and

continuing on with new concepts and Ideas, the original momentum
is not enough to keep your moving forward. Your progress will grind
to halt unless you refill your engine of inspiration with fuel of fresh
ideas and enthusiasm and proper guidance. I take this opportunity
of acknowledge those who have a great helping hand to make this
research work successful. I am really grateful to sales manager Mr.
Jayant Manohar & Mr Mayank Mishra for his amazing guidance
& constant support to me throughout my training process. They not
only infused sense of motivation but also proved to me my northern
star in every sense. Without their coordination, I could not have
been able to successfully complete this wonderful & enriching
journey at Ing Vysya Life Insurance. The quality of my training was
greatly enhanced by his gracious guidance and assistance. I would
like to thank my parents for providing me with values and virtues
that has and will help me throughout my career.

I would also like to thanks Mr. Arpan Kothiyal, Branch Manager,

the staff of ING VYSYA Life Insurance, Nehru Place Branch. I am
also deeply indebted to all the faculty members of NSB School of
Business and Prof. Alok Satsangi, Corporate Placement Cell of
NSB School of Business Without their help this project would have
never been completed. Also is would like to extend my gratitude to
Mr. Nikhil Kulsrestha (Associate Dean of NSB School of Business).

I would also like to express my sincere thanks and gratitude to all

the staff member of Ing Vysya Life Insurance Company, without

4
whose constant support and cooperation this training would not
have been a success.

I extend my thanks for all those involved in making this project a

success.

(AKHILESH TRIPATHI)

5
 PREFERENCE

“Insurance is a contract between two parties whereby one party

called Insurer undertakes in exchange for a fixed sum called

premiums, to pay the other party called insured a fixed amount

of money on the Happening of a certain event.”

Insurance is a protection against financial loss arising on the

happening of an unexpected event. Insurance companies collect

premiums to provide for this protection. A loss is paid out of the

premiums collected from the insuring public and the insurance

companies act as trustees to amount collected.

A family counts on the bread earner every day for the financial

support: food, shelter, transportation, education, and much more.

Insurance provides a unique sense of security that no other form

of investment provides. It gives insured a sense of financial

support during the time of crisis irrespective of fluctuations in

the stock market. Insurance provides for your career goal from

right from the childhood years.

6
Insurance is desire to safeguard oneself and one’s family against

possible losses on account of risks and perils. It provides

financial compensation for the losses suffered due to the

happening of any unforeseen events. By taking insurance a

person can have a piece of mind and need not worry about the

financial consequences in the case of any untimely death.

Life is all about making sure your family has adequate financial

resources to make those plans and dreams come true. It provides

financial protection to help your family or businesses to manage

after insured’s death.

7
 EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance

sector has the maximum growth and potential as compared to the

other sectors. Insurance has the maximum growth rate of 70-80%

while as FMCG sector has maximum 12-15% of growth rate. This

growth potential attracts me to enter in this sector and ING VYSYA

LIFE INSURANCE has given me the opportunity to work and get

experience in highly competitive and enhancing sector.

The success story of good market share of different market

organizations depends upon the availability of the product and

services near to the customer, which can be distributed through a

distribution channel. In Insurance sector, distribution channel

includes only agents or agency holders of the company. If a

company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have

adequate agents in the market they can capture big market as

compared to the other companies. Agents are the only way for a

company of Insurance sector through which policies and benefits of

the company can be explained to the customer .

8
 ABOUT LIFE INSURANCE

Life insurance or life assurance is a contract between the

policy owner and the insurer, where the insurer agrees to pay a

sum of money upon the occurrence of the insured individual's or

individuals’ death or other event, such as terminal illness or

critical illness. In return, the policy owner (or policy payer)

agrees to pay a stipulated amount called a premium at regular

intervals or in lump sums. There may be designs in some

countries where bills and death expenses plus catering for after

funeral expenses should be included in Policy Premium. In the

United States, the predominant form simply specifies a lump

sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract

between the insurer and the policy owner (policyholder)

whereby a benefit is paid to the designated beneficiary (or

Beneficiaries) if an insured event occurs which is covered by the

9
policy. To be a life policy the insured event must be based upon

life (or lives) of the people named in the policy.

Insured events that may be covered include: Serious illness

Life policies are legal contracts and the terms of the contract

describe the limitations of the insured events. Specific

exclusions are often written into the contract to limit the liability

of the insurer; for example claims relating to suicide, fraud, war,

riot and civil commotion.

Life based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of

specified event, typically a lump sum payment. A common form

of this design is termed insurance.

Investment policies: - where the main objective is to facilitate

the growth of capital by regular or single premiums.

10
 THE INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY

Duties, Powers and Functions

Section 14 of IRDA act,1999 lays down the duties,

powers and functions of IRDA.

• Subject to the provisions of this act and any

other law for the time being in force, the authority
shall have the duty to regulate ,promote and
ensure orderly growth of the insurance business
and re-insurance business.
• Without prejudice to the generality of the
provisions contained in sub-section(1),the powers
and functions of the authority shall include,

1. Issue to the applicant a certificate of

registration, renew,
modify, withdraw, suspend or cancel such
registration;
2. Protection of the interests of the policy
holders in matters concerning assigning of
policy, nomination by policy holders, insurable
interest, settlement of insurance claim,
surrender value of policy and other terms and
conditions of contracts of insurance;
3. Specifying requisite qualifications, code
of conduct and practical training for
intermediary or insurance intermediaries and
agents;
4. Specifying the code of conduct for
surveyors and loss assessors;
5. Promoting efficiency in the conduct of
insurance business;
11
 6. Promoting and regulating professional
organizations connected with the insurance
and re-insurance business;
7. Levying fees and other charges for
carrying out the purposes of this act;
8. Calling for information from, undertaking
inspection of, conducting enquiries and
investigations including audit of the insurers,
intermediaries, insurance intermediaries and
other organizations connected with insurance
business;
9. Control and regulations of the rates,
advantages, terms and conditions that may
be offered by insurer in respect of general
insurance business not so controlled and
regulated by the tariff advisory committee
under section 64U of the insurance act,1938(4
of 1938).

10. Specifying the form and manner in which

book of account shall be maintained and
statement of accounts shall be rendered by
insurers and other insurance intermediaries;
11. Regulating investment of funds by insurance
companies;
12. Regulating maintenance of margin of
solvency;
13 Adjudication of disputes between insurers
and intermediaries or insurance
intermediaries;
14. Supervising the functioning of the tariff
advisory committee;
15. Specifying the percentage of premium
income of the insurer to finance schemes for
promoting and regulating professional
organizations referred to in clause(f);
12
 16. Specifying the percentage of life
insurance business and general insurance
business to be undertaken by the insurer in
the rural or social sector; and
17. Exercising such other powers as may be
prescribed;

Essentials for the license

The IRDA has prescribed both qualifications and

disqualification for a person to be given a license.

QUALIFICATIONS

The person must :-

• Be at least 18 years of age;

• Have passed at least 12th standard or more (if
he is appointed in a place with population 5000 or
more),10th standard otherwise;
• Have undergone training for at least 100 hours
in life or general insurance business as the case
may be from an institution, approved and notified
by the authority;
• Should have also passed the pre-recruitment
examination conducted by the Insurance Institute
of India or any other examination body recognized
by the authority.
• In case of an applicant for the composite
insurance agent, he/she should have completed at
least 150 hours practical training in life & general
insurance business, which may be spread over six
to eight weeks.

DISQUALIFICATIONS

13
 The factors that would debar a person from
obtaining a license are that he/she

• Has been found to be of unsound mind by a

court of competent jurisdiction
• Has been found guilty of criminal breach of
trust, misappropriation, cheating, forgery or
abetment or attempt to commit any such offence.

The license once issued can be cancelled

whenever the person acquires a disqualification. In
the case of companies & firms who want to
become agents, the test of qualification &
disqualification would be applied to all the
directors or partners.

There are two separate forms, one for individuals

& another for those other than individuals, in
which the applications are to be made. The two
forms are numbered by IRDA-Agent VB & are
annexed to the regulation. The applications in the
respective forms have to be made to the
designated person appointed buy the insurer
sponsoring the application.

The application for the license should be

accomplished by proofs.

• Of fee having been remitted to the authority.

• Of age
• Of having completed the training & passed the
prescribed examination.

The fee to be sent to the authority directly is Rs.

250 for new license & for renewals applied for
14
within the prescribed period, viz, at least 30 days
before the date of expiry. If the application is
made after the date of expiry it would be normally
refused. But, if the authority is satisfied that
hardship would be caused otherwise, the license
may be renewed. Prior to renewal of the license of
the license the agent should have completed at
least 25 hours practical training in life or general
insurance business or at least 50 hours practical
training in life & general insurance business in the
case of a composite insurance agent.

The Duties & Obligations of

the Agent

As per the IRDA guidelines every advisor must be

trained & licensed to sell life insurance. The
responsibilities & obligations of the advisors have
been clearly defined.

• Every insurance agent should himself & the

insurance company that he represents along with
the license particulars.
• The advisors should take into the actual needs
of the clients before recommending a plan.
• All requisite information in respect of the
products recommended should be provided with a
'Sales Illustration' & the premium to be paid.
• The agent is obligated to disclose the scales of
commission likely to be earned by him through
sale of the recommended product, should the
client wish to know it.
• The nature of information required in the
application form should be adequately explained

15
along with the requirement for supporting
documents.
• Once the proposal is submitted, the advisor
shall inform the status of decision by insurer
promptly.
• In case of a claim, the advisor is required to
render necessary assistance in complying with the
requirements for settlement of claims by the
insurer.
• He/she should not interfere with any proposal
introduced by any other any insurance
advisor/agent or force the client to terminate an
existing policy taken from him/her & take a new
proposal within 3 years.
• An advisor cannot induce the client to omit
any material information or submit any wrong
information in the proposal form.
• Further no rebating or offering any
inducements in lieu of taking a policy is allowed.

Code of Conduct for the Agent

The licensing of Insurance Agent Regulations,

2000 lays down a code of conduct for the agents
which state that the agent shall

• Disclose the license to the prospect on

demand.
• Explain all available options to the prospect.
• Disclose the scales of commission, if asked for
by the prospect.
• Impress upon the prospect need to disclose all
information
• Inform the insurer about any adverse habits &
materials facts of the person to be insured.
16
• Convey to the proper about the acceptance or
rejection of the proposal.
• Render necessary assistance to policy holders
or claimants or beneficiaries in complying with the
requirements, asked for by the insurer. Advise
policy holders to affect nomination.

• Make every attempts to ensure remittance of

premiums by the policy holders within the
stipulated time by giving notice orally or in
written.
• Not induce the prospect to submit any wrong
information.
• Not interfere with the proposal introduced by
other insurance agents.
• Not demand or receive share of proceeds
under an insurance contract.
• Not cause the termination of an existing policy
with a view to effect a new proposal.

17
 HISTORY

Insurance began as a way of reducing the risk of traders, as early

as 5000 BC in China and 4500 BC in Babylon. Life insurance

dates only to ancient Rome; "burial clubs" covered the cost of

members' funeral expenses and helped survivors monetarily.

Modern life insurance started in late 17th century England,

originally as insurance for traders: merchants, ship owners and

underwriters met to discuss deals at Lloyd's Coffee House,

predecessor to the famous Lloyd’s of London.

The first insurance company in the United States was formed in

Charleston, South Carolina in 1732, but it provided only fire

insurance. The sale of life insurance in the U.S. began in the late

1760s. The Presbyterian Synods in Philadelphia and New York

created the Corporation for Relief of Poor and Distressed

Widows and Children of Presbyterian Ministers in 1759;

Episcopalian priests organized a similar fund in 1769. Between

1787 and 1837 more than two dozen life insurance companies

were started, but fewer than half a dozen survived.

18
Prior to the American Civil War, many insurance companies in

the United States insured the lives of slaves for their owners. In

response to bills passed in California in 2001 and in Illinois in

2003, the companies have been required to search their records

for such policies. New York Life for example reported that

Nautilus sold 485 slaveholder life insurance policies during a

two-year period in the 1840s; they added that their trustees

voted to end the sale of such policies 15 years before the

Emancipation Proclamation.

INSURANCE IN INDIA

INSURANCE SECTOR IN
INDIA

19
20
Insurance in India started as life insurance back in 1818, when it

was introduced for English Widows. Even till the end of the

nineteenth century, Insurance Companies in India were mainly

the overseas companies investing in the insurance works in

India. An interesting fact here was that higher premiums were

charged for Indian lives, as they were considered riskier for

insurance cover.

The Indian Government took various steps for the regulation of

insurance in India by passing various insurance laws and acts.

These include:

Life Insurance Companies Act, 1912

Provident Fund Act 1912

Insurance Act of 1938

Life Insurance Corporation Act, 1956

21
General Insurance Business (nationalization) Act, 1972

Insurance Regulatory and Development Authority (IRDA) Act,

1999

In 1972, the General Insurance Company was nationalized with

four main subsidiaries National Insurance Company, New India

Insurance Company, Oriental Insurance Company and United

India Insurance Company. Today Insurance Companies in India

have grown manifold. The insurance sector in India has shown

immense growth potential. Even today a giant share of Indian

population nearly 80% is not under life insurance coverage, let

alone health and non-life insurance policies. This clearly

indicates the potential for insurance companies to grow their

market in India.

In 1999, various reforms were suggested in the insurance

industry in India. This has changed a lot of things for the

insurance companies in India. These reforms were:

Bringing down of the governments stake holding to 50%

22
Only the private companies with a minimum capital of Rs.100

crores should be allowed to enter the insurance sector.

No insurance company can deal in both life and non-life

insurance under the same business entity.

Foreign Insurance Companies can enter India only in

collaboration with domestic insurance companies

Interest should be paid on delays of payments by the insurance

companies in case of non settlement of insurance claims.

And many more to bring greater freedom and a well-planned

regulation to the insurance companies in India.

The various fields covered by insurance companies in India

include:

Life Insurance: For students, children, family, individual etc.

Health insurance: For self, for family, accidental insurance

premium, medical claim policies etc.

23
Non-life insurance: Home or House Insurance and other

property insurance, Auto Insurance (for cars, motorcycle and

other two-wheelers, commercial vehicles), Infrastructure

Projects Insurance, Travel Insurance, real estate insurance,

mobile insurance etc.

Another field coming up in insurance is re-insurance. This is

insurance for the insurer. Re-insurance helps the primary

insurers to accept risks that are normally beyond their capacity

and also in maintaining the financial stability in case of losses

due to mass settlement cases in catastrophic events. The general

insurance company (GIC) is the major player in re-insurance in

India. It assumes the role of national reinsurer and all the

insurance companies in India are supposed to pay 20% of their

re-insurance businesses to GIC.

The insurance companies employ insurance agents and brokers

to sell their insurance policies and products. A work license

from the insurance regulation department is must to sell any

insurance plans. The insurance premiums offered vary from

24
company to company and also from the policy to policy. The

premium asked depends on the risk factor involved like

mentioned earlier in the case of riskier life of Indians in the

British rule demanded higher premium.

The insurance jobs include an insurance quote by the insurance

company, usually conveyed by the insurance broker or agent,

filling up of forms for your complete information and contact

details, written documents for the insurance premium offered in

the quote, term of the insurance taken, the prices charged for the

services, and a brief on the details of the claim process and

settlement terms. The insurance claims can be made as direct

claim or third party claims; information regarding this is given

by your insurance providers.

You can also contact an insurance agency for info on the types

of insurance available, the estimate prices of the insurance

policies, and a lead on the insurance product best suited for your

requirement. Besides this, many websites also provide this

information and also an online insurance estimator along with

25
the ratings for the top insurance companies in India that help

you in deciding the insurance compan from where to buy the

insurance product chosen.

List of Life Insurers (as of Sept, 2008)

Apart from Life Insurance Corporation, the public sector life

insurer, there are 17 other private sector life insurers, most of

them joint ventures between Indian groups and global insurance

giants.

Life Insurer in Public Sector

1. Life Insurance Corporation Of India

Life Insurers in Private Sector

1. ICICI Prudential Life Insurance

2. Bajaj Allianz Life Insurance

3. MYNL Life Insurance

4. Sahara Life Insurance

5. Tata AIG Life

6. HDFC Standard Life

7. Birla Sun life

26
 8. SBI Life Insurance

9. Kotak Mahindra Old Mutual Life Insurance

10. Aviva Life Insurance

11. Reliance Life Insurance Company Limited

12. Metlife India Life Insurance

13. ING Vysya Life Insurance

14. Max New York Life Insurance

15. Shriram Life Insurance

16. Bharti AXA Life Insurance Co Ltd

17. Future General Life Insurance Co Ltd

18. IDBI Fortis Life Insurance Co Ltd

19. AEGON Religare Life Insurance Co Ltd

20. DLF and Pramerica ( will soon Launch the operations)

Top 10 Insurance Companies of India

S.No. Site

1. Life Insurance Corporation Of India

2. Tata AIG Insurance Solutions

3. AVIVA Life Insurance
27
4. MetLife
5. ING Vysya Life Insurance

6. Birla Sun Life Financial Services

7. MAX New York Life
8. Aditya Birla Group

9. MAX NEW YORK

10. Bharati AXA Life Insurance

28
Major Players in The Insurance Industry

In India

Life Insurance Corporation of India

(LIC)

Life Insurance Corporation of India (LIC) was

established on 1 September 1956 to spread the

message of life insurance in the country and

mobilise people's savings for nation-building

activities. LIC with its central office in Mumbai

and seven zonal offices at Mumbai, Calcutta,

Delhi, Chennai, Hyderabad, Kanpur and Bhopal,

operates through 100 divisional offices in

important cities and 2,048 branch offices. LIC has

5.59 lakh active agents spread all over the

country.

The Corporation also transacts business abroad

and has offices in Fiji, Mauritius and United

29
Kingdom. LIC is associated with joint ventures

abroad in the field of insurance, namely, Ken-

India Assurance Company Limited, Nairobi; United

Oriental Assurance Company Limited, Kuala

Lumpur; and Life Insurance Corporation

(International), E.C. Bahrain. It has also entered

into an agreement with the Sun Life (UK) for

marketing unit linked life insurance and pension

policies in U.K.

General Insurance Corporation of India (GIC)

The general insurance industry In 1995-96, LIC

had a total income from premium and

investments of $ 5 Billion while GIC recorded a

net premium of $ 1.3 Billion. During the last 15

years, LIC's income grew at a healthy average of

10 per cent as against the industry's 6.7 per cent

30
growth in the rest of Asia (3.4 per cent in Europe,

1.4 per cent in the US).

LIC has even provided insurance cover to five

million people living below the poverty line, with

50 per cent subsidy in the premium rates. LIC's

claims settlement ratio at 95 per cent and GIC's

at 74 per cent are higher than that of global

average of 40 per cent. Compounded annual

growth rate for Life insurance business has been

19.22 per cent per annum in India was

nationalized and a government company known

as General Insurance Corporation of India (GIC)

was formed by the Central Government in

November 1972. With effect from 1 January 1973

the erstwhile 107 Indian and foreign insurers

which were operating in the country prior to

nationalization, were grouped into four operating

companies, namely, (i) National Insurance

31
Company Limited; (ii) New India Assurance

Company Limited; (iii) Oriental Insurance

Company Limited; and (iv) United India Insurance

Company Limited. (However, with effect from

Dec'2000, these subsidiaries have been de-linked

from the parent company and made as

independent insurance companies). All the above

four subsidiaries of GIC operate all over the

country competing with one another and

underwriting various classes of general insurance

business except for aviation insurance of national

airlines and crop insurance which is handled by

the GIC.

Besides the domestic market, the industry is

presently operating in 17 countries directly

through branches or agencies and in 14 countries

through subsidiary and associate companies.

32
IN ADDITION TO ABOVE STATE INSURERS
THE FOLLOWING HAVE BEEN PERMITTED TO
ENTER INTO INSURANCE BUSINESS: -

The introduction of private players in the industry

has added to the colors in the dull industry. The

initiatives taken by the private players are very

competitive and have given immense competition

to the on time monopoly of the market LIC. Since

the advent of the private players in the market

the industry has seen new and innovative steps

taken by the players in this sector. The new

players have improved the service quality of the

insurance. As a result LIC down the years have

seen the declining phase in its career. The market

share was distributed among the private players.

Though LIC still holds the 75% of the insurance

sector but the upcoming natures of these private

players are enough to give more competition to

LIC in the near future. LIC market share has

33
decreased from 95% (2002-03) to 82 %( 2004-

05).

34
1. HDFC Standard Life Insurance Company

Ltd.

HDFC Standard Life Insurance Company Ltd. is

one of India's leading private life insurance

companies, which offers a range of individual and

group insurance solutions. It is a joint venture

between Housing Development Finance

Corporation Limited (HDFC Ltd.), India's leading

housing finance institution and The Standard Life

Assurance Company, a leading provider of

financial services from the United Kingdom. Their

cumulative premium income, including the first

year premiums and renewal premiums is Rs.

672.3 for the financial year, Apr-Nov 2005. They

have managed to cover over 11,00,000

individuals out of which over 3,40,000 lives have

35
been covered through their group business tie-

ups.

36
2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is

a joint venture that brings together two large

forces - Max India Limited, a multi-business

corporate, together with New York Life

International, a global expert in life insurance.

With their various Products and Riders, there are

more than 400 product combinations to choose

from. The Company have a national presence

with a network of 57 offices in 37 cities across

India.

2. ICICI Prudential Life Insurance Company

Ltd

3. ICICI Prudential Life Insurance Company is a

joint venture between ICICI Bank, a premier

financial powerhouse and Prudential plc, a leading

international financial services group

37
headquartered in the United Kingdom. ICICI

Prudential was amongst the first private sector

insurance companies to begin operations in

December 2000 after receiving approval from

Insurance Regulatory Development Authority

(IRDA). The company has a network of about

56,000 advisors; as well as 7 bancassurance and

150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co.

Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a

joint venture between Kotak Mahindra Bank Ltd.

(KMBL), and Old Mutual plc.

5.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint

venture between Aditya Birla Group and Sun Life

financial Services of Canada.

38
 • Tata AIG Life Insurance Company Ltd.

• SBI Life Insurance Company Limited

• ING Vysya Life Insurance Company

Private Limited

• Allianz Bajaj Life Insurance Company Ltd.

• Metlife India Insurance Company Pvt. Ltd.

• AMP SANMAR Assurance Company Ltd.

• Dabur CGU Life Insurance Company Pvt.

Ltd.

1. Royal Sundaram Alliance Insurance

Company Limited

The joint venture bringing together Royal & Sun

Alliance Insurance and Sundaram Finance Limited

started its operations from March 2001. The

company is Head Quartered at Chennai, and has

two Regional Offices, one at Mumbai and another

one at New Delhi.

39
2. Bajaj Allianz General Insurance Company

Limited

Bajaj Allianz General Insurance Company Limited

is a joint venture between Bajaj Auto Limited and

Allianz AG of Germany. Both enjoy reputation of

expertise, stability and strength.

Bajaj Allianz General Insurance received the

Insurance Regulatory and Development Authority

(IRDA) certificate of Registration (R3) on May 2nd,

2001 to conduct General Insurance business

(including Health Insurance business) in India.

The Company has an authorized and paid up

capital of Rs 110 crores. Bajaj Auto holds 74%

and the remaining 26% is held by Allianz, AG,

Germany.

3. ICICI Lombard General Insurance

Company Limited

40
ICICI Lombard General Insurance Company

Limited is a joint venture between ICICI Bank

Limited and the US-based $ 26 billion Fairfax

Financial Holdings Limited. ICICI Bank is India's

second largest bank, while Fairfax Financial

Holdings is a diversified financial corporate

engaged in general insurance, reinsurance,

insurance claims management and investment

management.

Lombard Canada Ltd, a group company of Fairfax

Financial Holdings Limited, is one of Canada's

oldest property and casualty insurers. ICICI

Lombard General Insurance Company received

regulatory approvals to commence general

insurance business in August 2001.

4. Cholamandalam General Insurance

Company Ltd.

41
Cholamandalam MS General Insurance Company

Limited (Chola-MS) is a joint venture of the

Murugappa Group & Mitsui Sumitomo. Chola-MS

commenced operations in October 2002 and has

issued more than 1.4 lakh policies in its first

calendar year of operations. The company has a

pan-Indian presence with offices in Chennai,

Hyderabad, Bangalore, Kochi, Coimbatore,

Mumbai, Pune, Indore, Ahmedabad, Delhi,

Chandigarh, Kolkata and Vizag.

5. TATA AIG General Insurance Company

Ltd.

Tata AIG General Insurance Company Ltd. is a

joint venture company, formed from the Tata

Group and American International Group, Inc.

(AIG). Tata AIG combines the strength and

integrity of the Tata Group with AIG's

42
international expertise and financial strength. The

Tata Group holds 74 per cent stake in the two

insurance ventures while AIG holds the balance

26 per cent stake.

Tata AIG General Insurance Company, which

started its operations in India on January 22,

2001, offers the complete range of insurance for

automobile, home, personal accident, travel,

energy, marine, property and casualty, as well as

several specialized financial lines.

6. Reliance General Insurance Company

Limited.

7. IFFCO Tokio General Insurance Co. Ltd

8. Export Credit Guarantee Corporation Ltd.

43
 EXECUTIVE SUMMARY

At ING Vysya Life Insurance, in a short span of 8 years of

operations, we have established ourselves as a distinctive life

insurance brand in India.

With an innovative, attractive and customer friendly product

portfolio backed by a professional advisor force, we are proudly

serving over 3,00,000 customers today.

Here the main problem is to known the level of awareness about life

insurance among those who can afford to buy insurance especially

now when a no. of private insurer has entered the market.

The researcher would also like to establish the main reasons for

buying a life insurance policy, to know what type of cover is

preferred by most of people. After going through the literature

review, the researcher has found out that people still believe in

government insurance policies i.e. LIC policies, even many of them

don’t known about that ING Vysya is in insurance sector, which is

no. 1 insurance company in Netherland also in today’s world when

privatization has been given the green signal the people rely more

on Govt. insurance companies than in private and this would take

time when the general awareness would change.

44
 ING VYSYA Life Insurance

FACT SHEET – As of June 30th, 2008

Founded 2000

Started Operations Sep 2001

Headquarters Banglore (India)

World Wide Web Address www.Ingvysyalife.com

Chairman Mr.Ranjan Raheja

Managing Director & CEO Mr. Kshitij Jain

Paid-Up Capital Rs. 1232 crore

Employees 7000

Advisor 51,000

Customer 5.5 lakh

ING VYSYA LIFE IN INDIA - AN OVERVIEW

ING Vysya Life Insurance Company Limited a part of the ING Group

the world’s largest financial services provider entered the private

life insurance industry in India in September 2001. Headquartered

at Bangalore, ING Vysya Life is currently present in 246 cities and

has a network of over 300 branches, staffed by 7,000 employees

45
and over 51,000 advisors, serving over 5.5 lakh customers.

Product Portfolio

ING Vysya Life follows a “customer centric approach” while

designing its products. The Company’s product portfolio offers

products that cater to every financial requirement, at all life stages.

In fact, the company has developed the LifeMakerTM a

simple tool which can be used to choose a plan most
suitable to a specific customer based on his needs,
requirements and current life stage. This tool helps you
build a complete financial plan for life at every lifestage,
whether the requirement is Protection, Savings,
Investment or Retirement. Suitable products from ING
Vysya Life Insurance’s product portfolio for each such
requirement, makes selection of your plan an easy
exercise.

The Company aims to make customers look at life insurance afresh,

not just as a tax saving device but as a means to live life to the
fullest. It believes in enhancing the very quality of life, in addition to
safeguarding an individual's security.

Distribution Channels

ING Vysya Life has a diversified distribution platform. While Tied

Agency remains the strongest channel, the Alternate Channels
business within ING Vysya Life is one of the fastest growing
distribution channels. ING Vysya Life has strengthened its position
as the unparallel leader in the life insurance industry in cooperative
banks tie ups. The company currently has tie ups with 130
cooperative banks across the country. The Alternate Channels
division has Bancassurance, ING Vysya Bank, Corporate Agents and
SMINCE.

The Brand Positioning

46
In 2007, ING Vysya Life developed its unique brand positioning
‘Mera farz’. This positioning means, ING Vysya Life helps its
customers fulfill their responsibilities towards themselves and their
families. This powerful positioning has helped ING Vysya Life create
a distinct identity for itself. The latest brand campaign with a very
catchy jingle dwells on how a little planning and a helping hand
from ING Vysya life can help lighten the burden of responsibilities
that often come with happy moments and let you enjoy your life
without any worries.

ING Vysya Life Insurance Company Private Limited (the

Company) entered the private life insurance industry in

India in September 2001, and in a short span of 7 years

has established itself as a distinctive life insurance brand

with an innovative, attractive and customer friendly

product portfolio and a professional advisor sales force.

It has a dedicated and committed advisor sales force of

over 51,000 people, working from 300 branches located in

70 major cities across the country and over 7,000

employees. It also distributes products in close

cooperation with the ING Vysya Bank network. The

Company has a customer base of over 5,50,000 & is

headquartered at Bangalore. In 2005, ING Vysya Life

earned a total income in excess of Rs. 400 crore and also

has a share capital of Rs. 440 crore.The Company aims to

47
make customers look at life insurance afresh, not just as a

tax saving device but as a means to add protection to life.

The one thing we hold in highest esteem is 'life' itself. We

believe in enhancing the very quality of life, in addition to

safeguarding an individual's security. Our core values are

therefore defined as Professional, Entrepreneurial,

Trustworthy, Approachable and Caring.

The Company’s portfolio offers products that cater to

every financial requirement, at any life stage. We believe

in continuously developing customer-driven products and

services and value being accessible and responsive to the

needs of our customers.

Corporate Objective

At ING Vysya Life, we strongly believe that as life is

different at every stage, life insurance must offer flexibility

and choice to go with that stage. We are fully prepared

and committed to guide you on insurance products and

services through our well-trained advisors, backed by

competent marketing and customer services, in the best

possible way.
48
It is our aim to become one of the top private life

insurance companies in India and to become a

cornerstone of ING’s integrated financial services business

in India.

Mission

“To set the standard in helping our customers manage

their financial future”.

Partners

A glance at our equity partners:

► ING Group,

► Exide Industries Limited ,

► Gujarat Ambuja Cements Limited ,

► Enami Group

ING Group’s Presence in India

ING operates through three businesses in India, ING Vysya

Life Insurance, ING Vysya Bank and ING Investment

Management. ING Vysya Bank is a premier private sector

49
bank with over 76-year heritage and 1.5 million satisfied

customers. ING Investment Management comprises of two

operations: ING Fund - a mid sized asset management

company with a retail investor focus and Optimix - a fund

of funds business.

ING Group’s Presence in India

ING operates through three businesses in India, ING Vysya Life

Insurance, ING Vysya Bank and ING Investment Management. ING
Vysya Bank is a premier private sector bank with over 76-year
heritage and 1.5 million satisfied customers. ING Investment
Management comprises of two operations: ING Fund - a mid sized
asset management company with a retail investor focus and
Optimix - a fund of funds business.

50
Management Team

Board of Directors (as on January 18, 2008)

Mr. Rajan Raheja : Chairman of the Board
Mr. Kshitij Jain : Managing Director & Chief Executive Officer
Mr. N.N. Joshi : Director
Mr. Satish Raheja : Director
Mr. Rajesh Kapadia : Director
Mr. S.B. Ganguly : Director
Mr. Ron Van Oijen : Director

Senior Management Team

Kshitij Jain : Managing Director & CEO

Amit Gupta : Director - Marketing & Communication
Hemamalini : Appointed Actuary & Chief Investment Risk
Ramakrishnan Officer (CIRO)
Marco Fredriks : Financial Controller
Priya Gopalakrishnan : Director – Human Resources
Rahul Agarwal : Director - Customer Services & Risk
Ravishankar : Director – Information Technology & Corporate
Subramanian Services
Rene van der Poel : Director – Alternate Channels
T K Uthappa : Director – Sales, Tied Agency
Y V D V Prasad : Director – Business Development

ING Group is known for its philosophy of ‘keeping it

simple’. This thought is the result of ING Group’s 150

years of understanding of customers’ needs and fulfilling

them.

ING is a global financial institution of Dutch origin. It has

150 years of experience, and provides a wide array of

banking, insurance and asset management services in

over 50 countries and is trusted by over 60 million

51
customers. Its 1,13,000 employees work daily to satisfy

a broad customer base – individuals, families, small

businesses , large corporations, institutions and

governments. The ING Group has gone from strength to

strength year after year and is the world's 17th largest

company*. The ING Group is the world's fourth largest

financial services group* with over US $ 1 trillion# in

assets and profits of US $ 8.5 billion in 2005#.

Over the last 150 years, ING Group has grown to become

one of the largest life insurance organizations in the world.

Today it touches the lives of millions of people across 50

countries.

ING Group has wide and deep experience in setting up

companies in new markets, which require substantial

investments underlining ING's long-term commitment. In

the last 20 years, ING Group has established successful

life insurance companies in 15 countries contributing to

the development of insurance services in these countries

successfully.

52
53
 ING VYSYA LIFE INSURANCE PLANS

At ING Vysya Life, there is nothing we hold higher than life

itself. We therefore view our plans not as tax saving

devices but as a means to add protection to life. We

believe in Our products are designed in a way that helps

you bear heavy expenses while building your home or

providing for your children's education and marriage. We

make sure your post retirement years are carefree and

secure, ensuring your family and loved ones are protected

against financial difficulties in the event of a premature

death.

Depending on your personal needs, priorities and

individual responsibilities, you can go for a Protection,

Saving or Investment plan. If you are not sure of which

plan would suit you best, you could use the LifeMaker, an

application we developed for that very purpose.

Conquering Life

54
What are these plans ?

Saving

Saving plans act as a compulsory savings instrument for

families when the premium is paid regularly. They work as

long-term savings, enhanced by tax benefits, which give

you the financial strength to achieve your life goals.

Investment

Investment plans act as wealth creation instruments

helping to create big estates for the family. It is a long-

term investment, free from the risk of market swings. At

the end of the term, you or your family can enjoy added

returns on investment.

Retirement

Retirement plans can ensure that your post-retirement

years are spent in peace and comfort. They make sure

that you have regular income after you retire and also

help you maintain your standard of living. Conquering

Life Critical Illness Plan

What can this plan do for me?

55
The Conquering Life Plan is a comprehensive critical

illness cover that helps bear the financial burden of a

critical illness. This is a unique health insurance benefit

that helps you to protect yourself and your family against

health and lifestyle risks.

The Conquering Life Plan is ideal because it provides

protection to you and safeguards your family's lifestyle

through an easily affordable, pure risk life cover. And more

importantly, it covers you against ten life- threatening

critical illnesses- Cancer, Heart Attack, Coronary Artery

Bypass Graft, Stroke, Kidney Failure, Major Organ

Transplant, Brain Tumor, Paralysis, Coma and Blindness.

Key Features
Complete Protection Against 10 Critical Illnesses And

Death,

Money When You Need it Most (Critical Illness Claims Paid

on Diagnosis)

Free Life Cover After a Critical Illness Claim.

Benefits

56
Illness Benefits

A critical illness cover of up to 50% of the sum assured is

paid to you in the event of a confirmed diagnosis of any

one of the critical illnesses covered. This sum can be up to

a maximum of Rs. 20 lakhs.

The critical illness cover is only valid for the first critical

illness suffered and not any that follow.

In the event of critical illness, the remaining premium

payments for the period of the policy will be waived.

Death Benefit

Your family will get the total sum assured or

Your family will receive the difference between the total

sum assured and the Critical illness claim paid, if any.

Additional Benefits

57
Rider Benefits
Increase your coverage at a nominal extra cost by opting

for any of our riders.

Term Rider, Accidental Death Rider, Accidental Death,

Disability & Dismemberment Rider.

Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are

available on all our life insurance plans and riders.

Look-in Period
This is a 15-day period for you to go through the terms

and conditions and decide upon taking or canceling the

policy.

Product Features

Eligibility
Minimum age for application: 18 years,

Maximum age for application: 50 years,

Maximum age up to which premium can be paid: 65 years.

Premium Payment Term

Choose premium paying terms of 10-25 years.

58
Coverage Term

Same as the Premium Payment Term.

Premium Payment Options

Annual, half-yearly or quarterly.

Minimum Premium Payable

Annual Rs.2, 500

Half-Yearly Rs.1, 500

Quarterly Rs. 1, 000

Processing Fee Rs. 700 (non-refundable one time fee).

LIFE ENDOWMENT PLAN (REVERSIONARY BONUS)

What can this plan do for me?

Ideally, once your protection needs are met, consider a

saving plan. The Reassuring Life Endowment Plan with

reversionary bonus* is one such offering. Besides being a

savings option, it also acts as a highly reliable safety net

for your family in case something happens to you.

The Reassuring Life Plan is ideal because it gives you the

incredible benefit of a reversionary bonus which enhances

your life cover, and hence your sum assured, dramatically,

59
every year. So when the policy matures you can receive

almost double the initial sum assured.

Key Features

Lump Sum Benefit at Maturity,

Customised Life Covers,

Enhancing Life Cover (Attractive Reversionary Bonus).

Benefits

Survival Benefits

A sizeable financial asset for you and your family once the

policy matures, so you can meet large expenses - like

higher education for your kids, investment in a house, or

organizing your child’s wedding.

 A life cover that enhances rapidly, annually, thanks to

the reversionary bonus* feature. This basically means the

bonus is earned not just on the original sum assured but

also on the previously accumulated bonus - an amount

which goes on increasing every year.

A final additional bonus**.

60
 • Bonus are non-guaranteed and are based on the

company's performance.

**Applicable if at least premiums for 15 years have

been paid.

Death Benefit

Your family would receive a large sum which would include

the sum assured and the accumulated reversionary bonus

and final additional bonus.

Additional Benefits

Rider Benefits

Increase your coverage at a nominal extra cost by opting

for any of our riders –

Term Rider, Accidental Death Rider, Accidental Death,

Disability & Dismemberment Rider and Waiver of

Premiums Rider.

Loan Benefit

After paying a premium for three years, you will be eligible

for a loan.

61
Tax Benefits

Tax benefits under Section 88 and Section 10 (10D) are

available on all our life insurance plans and riders.

Look-in Period

This is a 15-day period for you to go through the terms

and conditions and decide upon taking or canceling the

policy.

Product Features

Eligibility

Minimum entry age: 12 years,

Maximum entry age: 55 years,

Maximum maturity age: 65 years.

Premium Payment Term

You can choose paying premium terms from

Payment Term 10-30 years. (i.e. 10,11,12...20...30)

Life Coverage Term

Same as the Premium Payment Term

62
Premium Payment Options

Annual, half-yearly, quarterly or monthly

Minimum Premium Payable

Annual : Rs. 6, 000

Half-Yearly : Rs. 3, 000

Quarterly : Rs. 1, 500

Monthly : Rs. 750

Creating Life Child Protection Plan

This plan is perfect if you have small children. You can

provide for their future by setting aside a small portion of

your current income. The money you set aside will help

your children pursue their dream even when you are not

around to take care of them. Death cover will provide

immediate relief and the maturity benefit will come to

your child at the right time when they need it.

The Creating Life Child Protection Plan helps you ensure

that your children’s future is secure and prosperous, so

they can pursue their dreams no matter what the future

brings.
63
Key Features

Guaranteed Maturity Benefits (Payment in case of Death

and at Maturity) ,Flexible Maturity Benefit Options,

Built-in Waiver of Premium Benefit.

Benefits

Guaranteed maturity benefits

The sum assured and the accumulated compound

reversionary bonus are paid on maturity.

A final additional bonus based upon the performance of

company is paid on maturity.

Death Benefits

 Your child will receive the sum assured in case of your

death.

 The policy continues even after the sum assured on

death is paid.

 No premiums have to be paid after the death of the

parent

64
whose life is insured (Built-in waiver of premium benefit).

 Your child will be eligible for guaranteed maturity

benefits.

Additional Benefits.

Rider Benefits
Increase your coverage at a nominal extra cost by opting

for any of our riders –

Term Rider, Accidental Death Rider, Accidental Death,

Disability & Waiver of Premiums Rider.

Loan Benefit
After paying a premium for three years, you will be eligible

for a loan.

65
Maturity Benefit
Your child can either receive a lump sum or receive the

amount in 3 or 5 equal installments after the maturity

date.

Tax Benefits
Tax benefits under Section 88 and Section 10 (10D) are

available on all our life insurance plans and riders.

Look-in Period
This is a 15 day period for you to go through the terms
and conditions and decide upon taking or canceling the
policy.
Product Features.

Eligibility

Minimum entry age: 18 years,

Maximum entry age: 55 years,

Maximum maturity age: 65 years.

Premium Payment Term

Choose premium paying terms of 10 - 25 years

Premium Payment Options

Annual, half-yearly, quarterly or monthly

66
Minimum Premium Payable

Annual : Rs. 6, 000

Half-Yearly : Rs. 3, 000

Quarterly : Rs. 1, 500

Monthly : Rs. 750

Safal Jeevan Endowment Plan

What can this plan do for me?

A product that offers comprehensive protection and

savings in an easy and hassle free manner. "Safal

Jeevan" is the simplest life insurance plan giving you

complete freedom to choose from pre-packaged solutions,

and decide how much and how long you want to pay

premiums. It offers death benefit, maturity benefit and has

an in-built accident cover.

The plan provides for policy coverage terms of 10,15 and

20 years. Premium is payable annually, half yearly and

quarterly.

Key Features

Low Premium ,
67
In-built Accident Premium.

Benefits

Death Benefit

Sum Assured with non-guaranteed bonuses, if any,

payable on death of the Life Assured.

In-built Accident Cover

In case of death due to accident, an additional benefit

equal to the basic Sum Assured is payable.

Additional Benefits

Maturity Benefit

Sum Assured with non-guaranteed bonuses, if any,

payable on maturity.

Premium Payment

Premium is payable annually, half-yearly or quarterly

during the policy term. The policy coverage terms are

fixed at 10, 15 and 20 years.

68
CREATING LIFE MONEY BACK PLAN

What can this plan do for me?

As a parent, you always want to give all the good things in

life to your child. See your children grow into successful

individuals, fulfill their dreams at every important stage of

their life and help them grab all the opportunities at the

right time.

ING Vysya life helps you to achieve this. Be it for their

computer training classes, dance lessons or anything that

makes them experience the good things in life. No matter

what happens to you, your child's future is always taken

care of.

How does this plan work?

Creating Life Money Back Plan is ideal for parents like you

who want a life cover that pays you 20% of the Sum

Assured at regular intervals, that is, on completion of

every 1/5 of the Policy Term. For example, if you choose a

15 year Policy Term for Rs 5,00,000 Sum Assured, you

69
will get Rs. 1,00,000 each on completion of the 3 , 6 , 9 ,

12 and 15 year. In essence it not only gives financial

security but also the flexibility to take care of your child's

important milestones in life.

What's more, the Policy also earns bonuses, which are

paid on maturity. You can pay Premiums either Yearly,

Half yearly, Quarterly or even Monthly as per your

convenience during the Policy Term.

SAFAL JEEVAN MONEY BACK PLAN

What can this plan do for me?

A rewarding life comes from intelligent investing right

from the beginning. ING Vysya Life Insurance can help you

take the right decisions so that whatever stages of life you

are in, you are always in control and self-reliant.

In fact, life cover is just one part of an ING Vysya Life Plan.

It also ensures that you lead a financially secure life

without having to worry about the uncertainties of

tomorrow. So whether you want to build a new home, or

70
plan early for your children's education, realizing your

dreams should never stop.

How does this plan work?

Safal Jeevan Money Back plan is ideal if you are

planning to take your first life insurance policy. It offers

you protection in an easy, hassle-free way and helps you

secure your goals and dreams despite the odds. All you

have to do is to choose a suitable policy term from 'pre-

packaged' solutions, and allows you to decide how much

and how long you want to pay premiums.

The plan ensures an easy and hassle free process, yet

offering you a comprehensive protection and savings

proposition with coverage terms of 16 and 20 years.

Premium is payable annually, half yearly and quarterly.

FREEDOM PLAN UNIT LINKED POLICY

What can this plan do for me?

The ING Vysya Life Freedom Plan allows you to customize

your insurance cover to suit your requirements. It gives

you freedom to plan your investments to suit your

71
preferences and risk profile. This plan also offers survival

benefits at regular intervals.

The premiums and top-up amounts paid by you, less

charges are credited to an account called the Individual

Policyholders’ Account (IPA) and are used to purchase

units in one or more investment plans as per your choice.

At any point in time, the balance in the IPA is represented

by the number of Units multiplied by the respective Unit

Price of the Units held from time to time under all the

Investment Plans under this Policy.

Key Features
Flexible premiums ,

Flexible life cover,

Flexible withdrawals,

Flexible investment options,

How is Unit Price calculated?

The Unit Price on any day will be determined as

72
The resulting Unit Price shall be computed to four decimal

points.

How does this plan work?

The ING Vysya Life Freedom Plan gives you complete

flexibility to plan your finances. You can decide how long

you want to pay, how much to pay, the extent of

insurance cover, the frequency of payments that you

would make each year and so on.

Flexibility in Premium and Frequency

You can choose the amount of premium you wish to pay

subject to certain minimum premium limits. The frequency

of payment may be yearly, half yearly, quarterly or

monthly. The minimum amounts of premium for different

frequencies are: Yearly : Rs 15,000, Half-yearly : Rs

8,000, Quarterly : Rs.4,000 and Monthly : Rs 1,500.

Top-up Amount

This plan provides you with an option to pay additional

top-up amounts (subject to a minimum of Rs.5000) over

and above your regular premiums as and when you wish

73
allowing you to increase your investments and savings at

your own pace.

Flexible Premium Payment Term

You can choose the duration you wish to pay the

premiums. The premium payment term can range from 5

to 25 years.

Flexibility in Insurance Cover

You can choose a life insurance cover starting from a

minimum of Rs.75,000 and a maximum sum assured

equal to one and half times of the total regular premiums

payable under the Policy issued to you.

For e.g. If you choose to pay a premium of Rs.20,000 per

annum for term of 20 years the maximum sum assured

that you may be eligible for will be Rs.6,00,000 and so

you can choose any sum assured between Rs.75,000 to

Rs.6,00,000.

Continued Insurance Cover

74
 This plan comes with a unique in-built safeguard against

lapse of life insurance cover. If you are unable to pay your

premium in any year, the life insurance cover under your

policy will continue as long as the balance in your IPA is

sufficient to pay the charges. However, if the premiums

are not paid for two years and balance in your IPA is less

than Rs.15,000, then the policy will be cancelled and

balance in the IPA if any, after deducting charges will be

refunded.

Flexible Investments

You can choose one or more of the following Investment

plans for investing your premium and top-up amount, net

of applicable charges.

Investmen Investment Pattern Objective

t Plans
100% of the available funds are Provides

invested in debt instruments . safety and

Debt Plan growth with

minimum

risk.

75
 Up to a maximum of 20% of the Provides for

available funds are invested in growth with

Secure
growth instruments like equity, low risk
fund
property and the rest in debt

instruments.
Up to a maximum of 40% of the Provides for

available funds are invested in higher

Balanced
growth instruments like equity, growth with
fund
property and the rest in debt reasonable

instruments. security.
Up to a maximum of 60% of the Provides for

available funds are invested in opportunity

Growth
growth instruments like equity, of high
fund
property and the rest in debt growth.

instruments.

ONE LIFE

You believe in working hard and playing hard. In spending

time with your family, giving them the best and securing

their future. Securing benefits through regular insurance

plans and making small payments on a regimented basis

76
leave you feeling dissatisfied. You feel you are capable of

investing so much more.

Presenting the ING Vysya Life’s One Life – a plan that

is much more than just insurance. A superlative

investment plan that gives you the unique option of

making one single lump sum payment and additional top

ups as per your convenience.

One Life also provides you with a life cover of your choice

and also enhances your investment opportunities to earn

returns in line with the market. So go ahead . Make the

choice of a lifetime.

Key Features

One time Premium,

Provides you life cover of your choice ,

Provides you investment opportunity to earn market linked

returns.

Platinum Life Plan

What can this plan do for me?

77
For those special persons who have achieved financial

success, ensuring that success is well protected and loved

ones are cared for is an important necessity. It is

important for you to be able to provide financial security

and resources for your family in a flexible way. Platinum

Life plan does just that by allowing you to pay for the

policy in a short period and enjoying the life insurance

coverage and maturity benefits for a long period. ING

Vysya Life Insurance can help you to ensure that your

family’s future is safe and secure.

What are the benefits of this plan?

The plan provides an opportunity for building a safe and

secure financial asset for your self and your family and

providing for life insurance protection while giving you

freedom to pay the premiums as per the premium

payment term chosen by you .

Simple Guaranteed Additions: Simple Guaranteed

Additions of Rs. 50/- per thousand sum assured per

annum are payable during the first 5 policy years and will

be attached to the Policy at the end of each policy year.

78
These Simple Guaranteed Additions are payable under this

Policy to the Life Assured on the Date of Maturity or to the

Beneficiaries on death of Life Assured provided that on

death of Life Assured only vested additions will be paid.

Participation in Profits: The policy is also eligible for

simple reversionary bonus for the full term from the first

policy year itself at such rates declared by the Company.

This provides opportunity to earn bonuses over and above

the simple guaranteed additions during the first 5 policy

years.

Maturity or Death benefit: Sum Assured, Simple

Guaranteed Additions and simple reversionary bonuses, if

any, are payable on maturity of the Policy or up on death

of Life Assured.

When can you opt for Platinum Life?

The minimum entry age is 18 years (last birthday).

The maximum entry age is 65 years (last birthday).

The maximum premium ceasing age is 70 years.

The maximum maturity age is 75 years.

Premium payment: Premiums are payable annually, half-

79
yearly or quarterly during the chosen premium payment

term. You can choose premium payment term of 5, 6, 7,

8 or 9 years.

80
GROUP TERM LIFE INSURANCE PLAN

Protection. On Your Terms.

ING Vysya Life's Group Term Life Insurance Plan is a

special way to safeguard your employees' interests. It

enables you to comprehensively safeguard your

employees in case of the unfortunate death of an

employee due to any reason, by providing timely and

hassle free relief. It provides the essential life cover for all

the members you wish to include in the group.

Death Benefit

This act as a lifeline for the family of an insured member in

case something unfortunate were to happen to him. The

beneficiaries will receive a fixed Sum Assured which will

act as their financial protection in their time of need.

81
Additional Accidental Death Benefit

To further protect your employees against a life full of

uncertainties, the plan allows you to add this extra shield.

So, in case the death of an insured member occurs due to

accident, his beneficiaries receive an additional Sum

Assured as per the contract.

The maximum additional accidental death benefit can go

up to as much as Rs.20,00,000.

Exclusions for Additional Accidental Death Benefit

(i) Where Accidental Death occurs directly or indirectly as

a result of:

Any disease or infection.

Intentional self-inflicted injury, suicide or attempted

suicide, while sane or insane. Life Assured being under the

influence of drugs, alcohol, narcotics or psychotropic

substances unless taken in accordance with the lawful

directions and prescription of a qualified and registered

medical practitioner.

82
War (Declared or undeclared), invasion, civil commotion,

riots, revolution or any war-like operations.

Participation by the Life Assured in any flying activity,

except as a bonafide passenger in a commercially licensed

aircraft.

Participation by the Life Assured in a criminal or unlawful

act.

Any injury incurred before the Risk Commencement Date.

Participation in hazardous sports, hobbies or pastimes

including (but not limited to) racing, parachuting,

mountaineering etc no benefits shall be paid.

The Cover Continues

Leaving a job doesn't mean the end of being protected.

This plan comes with a convenient continuation

option.An employee can choose to maintain the cover

after resignation or retirement. This is done by simply

effecting an individual insurance policy, without further

medical evidence. The facility can be availed by meeting

certain basic conditions.

83
Share Concern. Share Profit

While you have your employee's best interests at heart,

we have yours. This is the reason why we share part of the

mortality experience profits with you, if the scheme

experience is favourable. The extent of such profit sharing

depends on the size of your member group. This share is

adjusted against the next premium.

Lion Advantages:

For you

It provides a comprehensive life insurance cover at a

lower cost as compared to individual life insurance

policies.

Just one master policy covers all employees.

It is easier to cover all your employees as there are

minimal requirements for accepting cover.

It is a hassle-free way of securing life cover for all

employees at one go.

84
It enables you to customize the amount of life cover based

on requirements like graded cover or flat cover, or certain

multiples of annual salary etc.

It offers the possibility of premium reduction over a period

of time, with profit sharing and/or experience rating

arrangement.

It is a yearly renewable scheme. No long-term

commitment.

It offers you the flexibility to add new members or exclude

existing members.

It has provision for Accidental death benefit at a very

nominal extra cost.

It allows you to increase scope of benefit by adding

optional additional benefits like Critical Illness and

Accidental Death, Disability, at a marginal cost. It is a tax

efficient way of securing benefits to employees. Premiums

paid by you are not treated as taxable perquisites, for

your employee. And for you it is a deductible business

expense.

85
 reduces administrative work, as it is backed by an

efficient administrative process.

Premiums can be paid monthly, quarterly, half-yearly or

yearly, based on requirements.

Helps employee retention.

Enables you to be a good corporate citizen.

Allows employees to contribute part of the premium.

For your employees

They get a comprehensive life insurance coverage. It

provides for payment of the Sum Assured to an

employees' beneficiaries in the event of an unfortunate

death.

They get insurance cover with minimal or no medical

examinations.

A hassle-free process of keeping life cover in-force.

In case an employee leaves, he can still choose to

continue the life cover by converting it into a regular

individual policy (subject to certain conditions)

86
In case employees are paying premiums, they are eligible

for tax exemption under

Section 88 of Income Tax Act.

There is no limit on travel or residence.

A COMPREHENSIVE PROTECTION

ING Vysya Life's Group Disability Plus Rider helps you to

comprehensively safeguard your employees' interests in

cases of unfortunate events like an accidental death,

permanent disability due to disease or accident, by

providing timely and hassle free relief. Thus you can

safeguard your employees' financial interests. This plan

provides a range of protective covers. These are as

follows:

Event Benefit Time of

Payable as % payment

of SA
Accidental death benefit 100% Immediately on

admission of

claim
Dismemberment benefit
87
due to Accident or

Disease
- Thumb & index finger 25% Immediately on

on same hand admission of

claim
- Any one limb 50% As above
- Two limbs or more 100% As above
Total and Permanent Loss

due to Accident or

Disease
- Loss of speech 25% Lump sum after

establishing

TPD
- Loss of use of any one 50% As above

limb
- Loss of use of any two 100% As above

or more limb
Total and Permanent 100% As above

Disability due to Accident

or Disease (any

occupation)

88
Advantages

You can provide a comprehensive protection package

cover at a lower cost as compared to individual life

insurance policies.

One master policy covers all employees for a range of

benefits. Your staff gets maximum protection at minimal

underwriting requirements for accepting the cover.

Save tax while you safeguard the interests of your

employees.

Reduce your administrative workload. We take care of it

all.

Build a positive attitude in your workforce, inspire loyalty

and retain employees for longer.

Achieve your objective of being a conscientious employer

and a good corporate citizen.

For your employees

89
They get comprehensive life insurance cover. In other

words, more wholesome protection against life's

uncertainties.

No lengthy procedures to go through, it is a hassle free

process.

They don't need to worry about maintaining the plan by

making periodic premium payments:

Specifications
Minimum age at 18 years age last birthday,

entry:
Maximum age at 64 years age last birthday,

entry:
Maximum risk 65 years age last birthday,

coverage age:
Premium mode: As per base plan.
Can be attached to: Yearly Renewable Term

Assurance.
Profit sharing: Not available.
Amount of benefit: Optimal Sum Assured not

exceeding the SA under the

90
 basic policy.
Maximum amount of Up to a maximum of Rs.

benefit: 20,00,000/- depending upon

occupation

Exclusions

While we provide prompt and assured support to your

employees in the event of an accident, there are some

exceptions to the rule. If the accident occurs due to any of

the following :

Intentional self-inflicted injury, attempted suicide, while

sane or insane.

Insured Member being under the influence of alcohol,

narcotics, psychotropic substances or drugs unless taken

in accordance with the lawful directions and prescription

of a qualified and registered medical practitioner.

Participation in any flying activity, except as a bonafide

passenger in a commercially licensed aircraft.

Participation in a criminal or unlawful act.

91
Any injury sustained before the Date of Risk

Commencement under this Rider.

Any Disease for which care, treatment, or advice was

recommended by or received from any consultant

including but not limited to a physician or a Specialist or

which first manifested itself or was contracted before the

start of the Risk Commencement Date, or for which a

claim for an event under this rider has or could have been

made under any earlier policy.

Participation in hazardous sports, hobbies or pastimes

including (but not limited to) racing, parachuting,

mountaineering.

Atomic energy explosion or radiation of any kind,

biological and chemical accidents.

War (declared or undeclared), invasion, civil commotion,

riots, terrorism, revolution or any war-like operations.

Disease in the presence of HIV infection.

92
A COMPARATIVE STUDY OF LIC AND ING

VYSYA POLICIES

LIC and ING Vysya both provide different policies and

plans depending upon the various requirements of people.

Different plans are been categorised under seven major

categories of policies. Then a comparative analysis is done

between the plans of both LIC and ING Vysya. Both the

company provide similar types of plan just with the

difference in the features or premium amounts.

Whole life policies:

LIC ING Vysya

WHOLE OF LIFE PLANS LIFE TIME PLAN

The most cheapest form of Policy that meets your

LIC policy changing need over a

lifetime

Premiums are payable

through out the life Premium part is adjusted

93
 towards morality and

administrative charges and

Sum assured is payable on
rest is invested in plan of
the death of the life assured
your choice.

Bringing the difference in the plan of LIC and ING Vysya

we can find out that LIC plans are very simple to

understand whereas the other provide plans according to

your the changing needs of people.

94
 ENDOWMENT POLICIES

LIC ING Vysya

ENDOWMENT WITH PROFITS ING Vysya SAVE N PROTECT

These are the policies of An ING Vysya ideal plan for

limited duration payable on those who want to

maturity or death of the life accumulate funds on a

assured. regular basis with life cover.

These plans are available It is a fixed term policy that

with different option like combines saving with life

with or without profit or cover. The premium is paid

double or special regularly during the term.

endowments.

On death up to age: - basic

premium returned without

interest

95
 On death after age 7: - sum

assured @3.5%

compounded interest for

first 4 yrs and then vested

bonus.

We can make out comparing the plans of both the

companies that while ING Vysya are more concerned

about saving and are categorised for the different section

of people. LIC is straight and simple plan.

96
 MONEY BACKS POLICIES

LIC ING Vysya

JEEVAN MITRA ING Vysya CASH BACK

A high risk low cost plan and An ideal plan for every

with profit plan. milestone of life. It

combines life

cover+liquidity+savings.
This plan provide for an

additional insurance cover,

equal to the sun assured in

the event of policy holder

It provides survival benefit
death during the term of
after every 3 or 4 yrs and
policy.
add-on benefit for a nominal

extra premium.

JEEVAN SURBHI

Premium payable for limited

97
periods available with

periods of 12,15 and 18

yrs.

Money back at interval of 4

and 5 yrs as per policy

term.

JEEVAN SANCAY

Plan having a provision of

guarantee addition at 70p.a.

per thousand and loyalty

addition payable on date of

maturity.
The LIC under money back policies provide various plans

each having

different kinds of features. On the other hand ING Vysya,

which combines all the features in just one single plan.

The LIC plans like jeevan surbhi are suitable for high

income and tax categories.

SINGLE PREMIUM POLICIES

98
LIC ING Vysya

BIMA NIVESH ING Vysya REASSURE

This is a unique, short- A safe and comprehensive plan

term, multiple benefits for those about to retire or has

insurance plan which retired. It combines best of

provide safety, insurance and investment,

liquidity attractive

returns and tax

Liquidity with assured and steady
benefit.
annual returns. Life cover up to

110% of premium paid.

ING Vysya ASSURE INVEST

This plan can be

An investment with healthy
assigned as a
returns and added benefit of
collateral security,
insurance.

This policy has a fixed term of 7

or10 yrs.

It provides loyalty and ING Vysya LIFE LINK

99
guarantee addition An ideal market linked insurance

too. plan that enables you to enjoy the

upside of market returns,

It gives you flexibility of choosing

your investment option between

growths, income or balanced plan.

Under the single premium policies heading LIC just

provides one policy as compared to ING Vysya, which

gives different policies.

Moreover ING Vysya gives higher assured returns and

various other benefits.

100
 TERM INSURANCE PLANS

LIC ING Vysya

BIMA KIRAN ING Vysya LIFE GUARD

A plan with the provision for An ideal low cost policy

return of premium paid on that covers your life with

surviving of the term. uncertainties.

Free term cover after maturity It comes with a choice of

provided the policy is in full two convenient premium

force. payment modes-one time

and regular.

It gives the flexibility of

Having an added attraction of
accident and disability
loyalty addition.
cover for a extra
JEEVAN GRIHA
premium .

For people desirous of

Minimum premium
obtaining a housing loan with
payable 2400 per annum.
policy acting as collateral
It has no maturity
security.
benefits.

It ensure repayment of loan in

101
the event of premature death

of the borrower.

A high risk low cost plan.

Available as double and triple

cover plans.

Comparison between the plans of both the companies’

shows that while ING Vysya provide more flexible and

stable return plans the LIC are safer plan taking care of

family as a whole.

Again LIC provides different plan under this category of life

insurance.

102
LIC ING Vysya

JEEVAN BALYA SMART KID

Plan provides for a monthly Plan designed for critical

income up to age of 21 in educational milestone

case of unfortunate death of include specialized course in

parents, the country and abroad,

Premium waiver benefit is

available.
The sum assured is paid

immediately from 100,000

to 300,000

BAL VIDYA

All future payments are

waived off,
The plan takes care of

family expenses-on school

college, health or just Most importantly the Child’s

starting a career , will continue to receive the

policy benefits.

Money in regular monthly

103
installments and in lump

sum at specific point of

 DATA ANALYSIS

PROFILE OF INSURED PERSON

104
Age No. of Respondents

25-35 38

35-45 44

45-55 8

55-65 10

105
 OM KOTAK
ICICI ING Vysya
MAHENDRA
PRUDENTIAL 2%
3%
10%

SBI LIFE
INSURANCE
6%

LIC.
79%

For 100 people who are opting for life insurance,

the average is 39.67 for all age groups .

The modal class is 35-45 having frequency 44 which

is a highest frequency that means people between

age of 35-45 constitute the maximum share of life

insurance.

INSURED PEOPLE

PROFILE NUMBER OF RESPONDENTS

Service 55

Self Employed 30

Business 8

Retired 7

106
 60 55

50

40
30
30

20
8
7
10

0
SERVICE SELF BUSINESS RETIRED
EMPLOYED

The above graph shows 55% of the insured persons

were employees and 35% are self-employed

107
INCOME

INCOME NUMBER OF RESPONDENTS

5000-10000 38

10001-20001 32

20001-30000 8

30001 & above 22

38
40

35 32

30

25 22

20

15
8
10

5 108

0
5000-10000 10001-20000 20001-30000 30001 & above
From the total sample of 100, 38 belongs to 5000-

10000 Income group and 10001-20000 income

group that is 32 respectively .

PREFERENCE OF RESPONDENTS OF

INSURANCE COMPANY

COMPANY’S NAME NO. OF SHARE (%)

RESPONDENT

LIC. 78 78

SBI Life Insurance 7 7

ICICI Prudential 10 10

109
 OM Kotak Mahendra 3 3

OM KOTAK
ICICI ING Vysya
MAHENDRA
PRUDENTIAL 2%
3%
10%

SBI LIFE
INSURANCE
6%

LIC.
79%

Most of (79%) of the people have LIC policy and is

ranked number one by that percent of respondent.

110
INVESTMENT OBJECTIVES

INVESTMENT OBJECTIVES NO.OF

RESPONDENTS
To Meet Long-Term Liability 14

Retirement Benefit 40

Child’s Marriage 18

High Returns 5

To Meet Short Term Liability 5

Children Education 18

111
 Children Education

To Meet Short Term

Liability

High Returns

Child’s Marriage

Retirem ent Benefit

To Meet Long-Term
Liability

0 5 10 15 20 25 30 35 40 45

Above Chart shows that the first objective of

investment is to get Retirement Benefit.

112
BENEFITS

BENEFITS NO. OF SHARE (%)

RESPONDENTS

Cover Future 55 55

Uncertainty

Tax Deductions 15 15

Future Investment 23 23

Loan Facilities 7 7

60 55
50
40
30 23
20 15
7
10
0
Cover Future Tax Deductions Future Loan Facilities
Uncertainty Investment

113
55% of the respondent believe that covering future

uncertainty is the biggest benefit of insurance

policy.

20% & 25% of them believe that other benefit are

tax deduction & future investment.

114
 FEATURES OF INSURANCE POLICY

FEATURE NO. OF SHARE (%)

RESPONDENTS

Money Back 15 15

Guarantee

Larger Risk 37 37

Coverage

Easy Access To 7 7

Agents
Low Premium 30 30

Reputation Of 11 11

Company

115
 Reputation Of Money Back
Company Guarantee
Low Premium 11% 15%
30%

Larger Risk
Coverance
37%

Easy Access To
Agents
7%

Most of the respondents found larger risk coverage

as the most attracted feature of their policy.

116
INSURANCE POLICY TYPE

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

Life Policy 75 75

Non Life Policy 25 25

Both 45 45

80 75
70
60
50 45
40
30 25
20
10
0
Life Policy Non Life Policy Both

117
The graphs shows that 75% of the respondent have

life insurance policy while 45%have both.

118
 FACTS & FINDINGS
FACTS/FINDINGS

1.As the people think that insurance is a tool to

protect their family & a tax saving device. They
are aware of the fact & realizing its, importance.
The company should try to expand & build up its
infrastructure because there is a large potential
for insurance in India.

2.Company should come up with its branch in

Delhi. With the objective and goals to meet the
demands & expectations of the public. Because
the entrance of private players will increase the
competition and it would be a tough task to
secure a good position in market.

3.Since ING VYSYA Life Insurance is leading with

several companies' policies it should be easy for
them to penetrate into the market and secure a
good position if they pay greater attention to the
service part provided to their customer and
thereby forming a long and trusted relationship.

4.As seen from the survey that at present 70% of

the customer are having insurance policy out of
which 87.5% of the customer are planning for
new investments. So it can be a good potential
for the company and they should make an
attempt to trap these customers.

5.43% of the customer is even ready to go for

insurance if a service provider away from their
home is providing it. But intend they should
provide good products and services. The
company should try to convince these customers
119
 and get them in its favor.

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS &

INTERPRETATION
o DATA GIVES PREFERENCE OF
RESPONDENTS OF INSURANCE
COMPANIES

COMPANY'S NO.OF SHARE (%)

NAME RESPONDEN
T

L.I.C. 78 78

RELIANCE LIFE 3 3
INSURANCE

ICICI 10 10
PRUDENTIAL

SBI LIFE 7 7

HDFC 2 2

TOTAL 100 100

INTERPRETATION

120
 • 78% of the people contacted prefer LIC
policy to any other and therefore it is ranked
no.1 by that percent of respondents.

• DATA GIVES BENEFITS OF

INSURANCE PERCEIVED BY
RESPONDENTS

BENEFITS NO.OF SHARE (%)

RESPONDENT
S

Cover Future 55 55
Uncertainty

Tax Deductions 20 20

Future 25 25
Investment

TOTAL 100 100

INTERPRETATION

• 55% of the respondents believe that

covering future uncertainty is the biggest
benefit of an insurance policy.
• Whereas, 20% and 25% of them believe
that the other benefits are Tax deduction and
future investments respectively.

121
• DATA PROVIDES FEATURES OF
INSURANCE POLICY THAT ATTRACTED
RESPONDENTS

FEATURE NO.OF SHARE

RESPONDENT (%)
S

Money Back 15 15
Guarantee

Larger Risk 37 37
Coverance

Easy Access to 7 7
Agents

Low Premium 30 30

Company's 11 11
Reputation

TOTAL 100 100

INTERPRETATION

o Majority of the respondent (37%)

found Larger risk coverance as the most
attracted feature of the all.

• DATA PROVIDES NUMBER OF

INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENT
S
122
 LIFE POLICY 75 75

NON LIFE 25 25
POLICY

BOTH 45 45

INTERPRETATION

• 75% of the respondents have Life

Insurance Policy while 45% have both. (The
% is calculated out of 280 positive response)
• DATA GIVES PEOPLE PERCEPTION
ABOUT INSURANCE

RESPONSE NO. OF SHARE

RESPONDENT (%)
S

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect 100 100%

your family

INTERPRETATION

• 81% of the respondents have perception

of Insurance being a saving tool.
• And 74% of the respondents have
perception of Insurance being a tax saving
device.
• But 100% of the respondents are with the
view that Insurance is a tool to protect your
family.
123
 DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION

• Of the sample size of 400 surveyed

respondents 70% of the respondents are
having Insurance policy.
• 30% of the respondents are either not
having any Insurance policy at present or
their policy is already matured.
• And at present 100% of the respondents
are with the view that Insurance is a tool to
protect your family.

• DATA SHOWS BUYING PROCESS OF

THE PEOPLE

BUYING PROCESS NO. OF SHARE

RESPONDENT (%)
S

Customer 45 45%
approached
Insurance
124
company/Agent

Company/agent 55 555
approached
customer

125
 FINDINGS

Based on the quantitative analysis the major findings of

the study have been highlighted below….

► Most of the people are satisfied with the extent of their

life insurance cover. They are not interested in buying

more life insurance.

►People do not consider life insurance as a good savings

because of low returns.

►As life insurance is a long term contract, Maximum

people do not have faith on private life insurance

companies, they still prefer LIC.

►Because of less advertising not many people are aware

about private life insurance companies.

►Most of the people do not know about broker, corporate

agents and banc assurance, they rely on their agents only.

►The most preferred type of plan is money back. The

reason being availability of funds after every five years

which can be used for paying further premium, thus

saving the regular income.

126
► Some people have no idea about what type of cover

they have.

Most of the people feel that life insurance is essential but

they think returns are low.

►Some people have their doubts on the credibility and

long stay of private insurance companies.

127
 LIMITATION OF THE STUDY

No study is generally full proof, this report suffers from

certain limitation with respect to information and analysis.

The reason for the above are related to:

►It was difficult to get appointment from the person

whom I know because of their busy schedule .

► Since the project had to be submitted within seven

weeks and within this time period It’s very difficult to

convert .

Since the study involved a through analysis of the

insurance market and

►relative study of various players offering the similar

products and that of similar, it was required a dedicated

labor in term of both time and effort. Since the curriculum

did not permit more time, the study had to be very

limited.

►ING-VYSYA is a newly establish company in Guwahati

and it has only one branch in North East . The company is

128
not fully successful to give a brand awareness through

advertisement, banners and hoardings .

CONCLUSION

The various conclusions I had drawn from my project are:

-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 in the world context.

The opening up of the insurance sector has changed the

whole look of the industry. While the LIC in order to face

the competition is coming with new strategies. New

players like ING Vysya are leading the sector due to their

strategic management and tailored made projects.

From my research also I conclude that though the

awareness and people opting for LIC plans are more as

compare to ING Vysya but the later are gaining

momentum in the market day by day. The primary

reasons for buying an insurance policy, whether life or

non-life is to protect us from vagaries of life. We do not

invest in insurance for returns; rather we invest in it for

129
regrettable necessities. Though a large proportion of

policies available in the country provide for returns, but

nobody is looking for returns to the inflation rate. So what

does insurance offer, perhaps peace of mind, but even

that takes time, due to poor claim performance .

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. In fact, opening up of

the insurance sector is an integral part of the liberalization

process being pursued by many developing countries .

Insurance as a concept has not been able to make

headway in India.

There has been a strong fall in insurance business in

recent years. Furthermore, it can be observed that non-life

business is not increasing as strongly as life business. Life

insurance business by contrast achieved average growth

rates of 6%, although the actual rates ranged from 0% to

13%. This shows on the one hand the increasing

significance of life insurance as an instrument for old age

130
provisions and on the other hand indicates the sensitivity

of life insurance to changes in the institutional and

economic environment.

So lets conduct this business with utmost economy with

the spirit of trusteeship; thereby making insurance widely

popular.

SUGGESTIONS

Advertising of insurance product should stress on the need of security.

Insurance should be popularized as the means of securing future rather

than saving tax.

New entrants should come out with innovative riders.

Policy should be issued quickly and with less formality.

Other services should also be improved.

Newspaper/Magazines and television are the most effective medium of

advertising the life insurance.

Insurance agent should be well trained.

131
Insurance companies also give preference to whole family Insurance to

attract the customers.

People are less aware about health insurance, because they think there is

no return so that, this is not beneficial to them, so that there should be

much information give to the people about health insurance.

Insurance products should be more flexible to pay premiums.

RECOMMENDATION

► Advertising of the insurance product should stress on

the need of security.

► Insurance should be popularized as the means of

securing future rather than saving tax.

► Policies should be issued quickly and with less

formalities.

► Other service should also be improved.

► Newspaper/Magazines and television are the most

effective medium of advertising life insurance.

132
►Insurance agents should be well trained.

133
SWOT ANALYSIS

Strength:-

► Excellent reputation, ► Loyal Customer,

► Market Leader.

Weaknesses:-

► Small Business, ► Profit Margin too low.

Opportunity:-

► Expand to new large location , ► Local

Competition,

► Increase Revenue

Threat:-

► Lack of organize workforce,

► Lack of brand Awareness in India.

BIBLIOGRAPHY
134
► Abhishek Agarwal - Distribution of Life Insurance
Products in India, Insurance Chronicle, August, 2005.

► Christopher Lovelock - Services Marketing; A European

Perspective.

► D C Srivastava & Shashank Srivastava - Indian

Insurance Industry - Transition & Prospects.

► George E Rejda - Principles of Risk Management and

Insurance.

► Ian Watts - New Distribution Channels, Insurance

Chronicle, February, 2003.

► V Sesha Iyer - Insurance - Origin & Development,

Insurance Chronicle, February, 2004.

► Non Banking Financial Companies: SBI Banking Briefs,

2005.

Web-sites:-

www.licindia.com

www.inglife.co.in

www.money.com

www.insure.com

www.bimaguru.com

135