Project 2009

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“SUMMER TRAINING REPORT ON” “COMPARITIVE ANNALYSIS OF LIFE INSURANCE COMPANIES”

POST GRADUATE DIPLOMA IN INSURANCE AND RISK MANAGEMENT

UNDER THE GUIDENCE OFMR. ABHISEK RAI BRANCH HEAD, SUNDARRAM DIRECT

SUBMITTEDBYESAHN DVIVEDI PGDM (IRM)3RD SEM. ROLL NO. IRM/03/23

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TABLE OF CONTENT DECLEARATION

(3)

PREFACE

(5)

ACKHNOWLEDGEMENT

(7)

RESEARCH OBJECTIVES

(9)

RESEARCH METHODOLOGY

(11)

ABOUT LIC

(14)

ABOUT PRIVATE SECTOR INSURANCE COMPANY

(30)

GRAPHS AND INTERPRETATION

(45)

FINDINGS

(61)

CONCLUSIONS

(65)

SUGGESTIONS

(67)

LIMITATIONS

(69)

BENEFITS

(72)

BIBLIOGRAPHY

(73)

ANEXTURE

(75)

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DECLEARATION

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DECLEARATION

I am Eshan Dvivedi (PGDM-IRM 3rd) from School Of Management Sciences, Varanasi. Hereby declare that the survey report on “COMPARITIVE ANNALYSIS OF LIFE INSURANCE COMPANIES” is the result of my own efforts and is raised on information collected and guidance given by my mentor & faculty members. The survey report is correct to the best of my knowledge & this report so far has not been published anywhere else.

Signature ESHAN DVIVEDI

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PREFACE

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PREFACE It is a great privilege for me to place this survey report before the reader. The report is concern about “COMPARITIVE ANNALYSIS OF LIFE INSURANCE COMPANIES” This report is presented in very simple and understandable

language on the basis of primary data. Lastly I would like to state that although every possible care has been taken to make the report error free but still the possibility of some error keeping inadvertently cannot be ruled out. I shall be feeling highly obliged to all reader if some are brought to my notice. Critical evaluation welcome and shall be grateful acknowledge. I sincerely express my gratefulness to all those who directly or indirectly, helped me in this project. I firmly believe that there is always scope for improving and accordingly I shall look forward for welcome suggestion in this direction from all the reader and subject spiel, which shall be thankfully acknowledged.

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ACKNOWLEDGEMENT

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ACKHNOWLEDGEMENT First of all I would like to bow before all the mighty presence of God without whose mercy this project would have not been possible. I am extremely grateful to K.K. SIR for giving me this opportunity to carry out this project work. I would like to thanks SATYA SIR for helping me in this project. I also thanks to the respondent and my friends, without whose co-operation this would not have been possible.

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RESEARCH OBJECTIVES

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RESEARCH OBJECTIVES 1. To find out the investors opinion with LIC v/s private Sector insurance companies. 2. To find out the market position of LIC and private sector Insurance company. 3. To know about new private insurance companies which are Posing as threats to the LIC. 4. To know about the major private and public sector Insurance companies still are working 5. To find out the special policies, products and services Which are provided by the LIC and private sector insurance Companies?

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY Research is a careful investigation or enquiry through search for the facts in any branch of Knowledge. Research methodology refers to the method and techniques that are used for activities involved in performing the research operations such as making observation, recording data etc. Type of research

Descriptive Research

Type of data

Primary data

Data collection method Primary data collection technique

Structured Questionnaire method Personal interview with the help of Questionnaire

Universe of study

Delhi

Sampling technique

Simple random

Sample Size

100 people (respondents)

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Sample size Sample size refers to the number to be selected from the universe to constitute the sample for conducting the survey. The sample size of this project is 100. Data collection method This survey has been done through primary data collection. For primary data questionnaire method has been adopted for consumer. The questionnaire has close ended and open ended. Data analysis technique The data analysis technique used in statistical and quantitative in nature and the data analysis and the instrument used for conducting the research are tabulation, bar chart and pie chart.

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ABOUT LIC

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HISTORY OF LIFE INSURANCE CORPORATION OF INDIA (LIC) The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to 15

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cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional Other Birla Sun Life Insurance for Savings include: • Birla Sun Life Insurance Flexi Save Plus • Birla Sun Life Insurance Dream Plan • Birla Sun Life Insurance Gold-Plus II • Birla Sun Life Insurance Classic Life Premier •

Birla Sun Life Insurance Prime Life Premier

• Birla Sun Life Insurance Saral Jeevan Plan •

Birla Sun Life Insurance Prime Life

• Birla Sun Life Insurance Life Companion • Birla Sun Life Insurance Simply Life • Birla Sun Life Insurance Flexi Cash Flow • Birla Sun Life Insurance Flexi Life Line • Birla Sun Life Insurance Supreme-Life • Birla Sun Life Insurance Single Premium Bond offices, 7 zonal offices and the corporate office. LIC Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and

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closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 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 are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz.

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LIC Act, 1956, with a capital contribution of Rs.5 crore from the Government of India. Insurance sector reforms: In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…" In 1994, the committee submitted the report and some of the key recommendations included: 1) Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. 2) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to operate in each state. 18

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3) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry).

4) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time). 5) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

PRESENT STATUS OF LIC OF INDIA

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Existing as a towering insurance company for over 50 years, LIC has acquired almost monopoly power in the solicitation and sale of life insurance policies in India. In addition to the summary regarding the present stature provided at the beginning, LIC has extended its activities in 12 countries other than India with the objective of catering to the insurance needs of Non Resident Indians. The enforcement of New Economic Reforms in 1991 coupled with the formation of INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT (IRDA) of 2000 (which started issuing licenses to private life insurers ) has diluted the monopolistic attitude commanded by LIC. The only insurance company belonging to the public sector now has to compete with several other corporate entities of its kind which often are heavyweight Indian as well as Multinational Life Insurance Brands in themselves.

The other subsidiary companies under LIC are:  Life Insurance Corporation (LIC) of India International - A joint venture

offshore company promoted by LIC which commenced its operations in July, 1989 with the objective of offering policies denominated in US $ to NRIs residing in the Gulf.  LIC Nepal - Formed in 2001 in joint venture with Vishal Group of

Industries, Nepal.  LIC Lanka - Formed in 2003 in joint venture with Bartleet Group of

Companies, Sri Lanka  LIC Housing Finance - Established in 19 th June,1989 in Dubai with the

objective of providing long term finance for construction of houses or apartments.

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21  LIC Housing Finance Limited Care Homes - A wholly owned subsidiary of

LIC Housing Finance which builds "Assisted Community Living Centers" for senior citizens.

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

Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company.  The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.  The minimum paid up equity capital for life or general insurance business is Rs.100 crores.  The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores.

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The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Reinsurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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Label1

Type Founded

Life Insurance Corporation of India

Government-owned corporation September 1, 1956

Headquarters

Headquarters in Mumbai, India (Various other locations in India and abroad)

Key people

T.S Vijayan, (Chairman)D.K.Mehrotra,Thomas Mathew and A. Dasgupta (Managing Directors)

Industry

Life insurance

Products

Individual Life Insurance,Group Insurance and Pension Plans

Employees 112,184 Parent

Subsidiaries

Website

NIL LIC Housing Finance Limited, LIC(Nepal)Ltd, LIC(Lanka)Ltd, LIC(International)BSC(C),Behrain, http://www.licindia.com

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OBJECTIVES OF LIC OF INDIA  Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.  Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.  Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.  Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.  Act as trustees of the insured public in their individual and collective capacities.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment.  Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.  Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

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PRODUCTS OF LIC As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. LIC Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Children’s Assurance plan •

Jeevan Anurag

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CDA Endowment Vesting 21

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CDA Endowment Vesting 18

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Komal Jeevan

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Marriage Endowment Or Educational Annuity Plan

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Jeevan Chhaya

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Child Future Plan

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Plans for handicapped dependence •

van Vishwas Jee

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van Vishwas Jee

Endowment Assurance plans •

The Endowment Assurance Policy

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The Endowment Assurance Policy-Limited Payment

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Jeevan Mitra(Double Cover Endowment Plan)

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Jeevan Mitra(Triple Cover Endowment Plan)

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Jeevan Anand

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New Janaraksha Plan

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Jeevan Amrit 26

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Plans for high worth Individuals Jeevan Shree-I Jeevan Pramukh

Money back plans •

Jeevan Varsha

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The Money Back Policy-20 Years

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The Money Back Policy-25 Years

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Jeevan Surabhi-15 Years

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Jeevan Surabhi-20 Years

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Jeevan Surabhi-25 Years

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Bima Bachat

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Special money back plan for women •

Jeevan Bharati – I

Whole life plans •

The Whole Life Policy

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The Whole Life Policy- Limited Payment

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The Whole Life Policy- Single Premium

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Jeevan Anand

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Jeevan Tarang

Term Assurance plan

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Two Year Temporary Assurance Policy

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The Convertible Term Assurance Policy

•

Anmol Jeevan-I

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ABOUT PRIVATE SECTOR INSURANCE COMPANY

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ABOUT ICICI PRUDENTIAL Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

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ABOUT BAJAJ ALLIANZ Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among the top insurance companies in the world. Bajaj is the biggest two and three wheeler manufacturer in the world. Bajaj Allianz Life Insurance Company boasts of a nationwide presence with 876 offices and over 4 million satisfied customers.

Products of BAJAJ Allianz • Individuals Plans • Unit Gain Insurances • Term Care Plans • Lifetime Care Insurance Policy • Business Insurance Policies • Savings And Security Policies For You And Your Family • Rural Insurance Plan • Healthcare Insurance • Financial Insurance • Pension Plus • Retirement Plans • Children's Policies • Endowment Plans and many more. • Group Insurance Schemes

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• Insurance For Employee-Employer Groups • Insurance For Non-Employer - Employee Groups • Employees Deposit Linked Insurance • New Group Superannuation Scheme • New Group Gratuity Care Scheme • Special Insurance Policies for NRI's • Investgain Endowment Plan • Cashgain Money Back Plan • ·Childgain Kids Special Plan • Swarna Vishranthi

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ABOUT HDFC STANDARD LIFE INSURANCE COMPANY HDFC Standard Life Insurance Company Limited. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by Others. As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently. We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far Our gross premium income, for the year ending March 31, 2008 stood at Rs. 4,859 crores. As of 31 December, 2008 our new business premium income stood at Rs. 1,839.70 crores. The company has covered over 812,811 lives as on December 31, 2008. Our Mission: "To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency, and become a model life insurance company in India in the post liberalization period". Trustworthiness Ambition Innovation Dynamism Excellence

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ABOUT SBI LIFE INSURANCE COMPANY SBI Life Insurance Company Limited is a joint venture between the State Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000 crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country, arguably the largest in the world. BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the world's top 6 group of banks by market value and a European leader in global banking and financial services, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries mainly through the banc assurance and partnership model.SBI Life has a unique multidistribution model encompassing Banc assurance, Agency and Group Corporate.SBI Life extensively leverages the SBI Group as a platform for crossselling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country ensuring true financial inclusion. Agency Channel, comprising of the most productive force of more than 63,000 Insurance Advisors, offers door to door insurance solutions to customers.

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Unit Linked Products: Unit linked Plans are an attempt to meet all your financial & insurance needs through a single non participating product." What’s more you get marke t linked returns which in the long term has always proved to give better returns than traditional savings products".

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SBI Life - Horizon™ II

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SBI Life - Unit Plus™ II

 SBI Life - Unit Plus™ Child Plan 

SBI Life - Unit Plus™ Elite



SBI Life - Smart ULIP

Pension Products: You need to have a comprehensive plan to meet your post retirement financial needs ensuring complete peace of mind. To make your post retirement years truly golden, we offer you –

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SBI Life - Horizon™ II Pension



SBI Life - Unit Plus™ II Pension

 SBI Life - Lifelong Pensions  SBI Life - Immediate Annuity

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Pure Protection Products: There are times when everything seems to be perfect, but who can predict future and there is always a place to make this world a better place for our loved ones. To ensure that these uncertainties do not shatter the dreams you have for your family, SBI Life offers you –



SBI Life - Swadhan



SBI Life Shield



"SBI Life - Shield" used as Keyman Protection cum Savings Products:

SBI Life offers a variety of plans that gives you the benefit of protection and the opportunity to save for various events like purchase of new house, wedding, car etc. We assist your savings.



SBI Life - Sudarshan

 SBI Life - Scholar II (Child Plan)

Money Back Scheme Products: As an individual your life is fueled by dreams. You experience different special moments in life like wedding, birth of a child, child’s education or purchasing a new home. You have to be financially

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prepared for these special moments. What you need is easy liquidity at regular intervals with life insurance protection to take care of these special moments.



SBI Life - Money Back

 SBI Life - Sanjeevan Supreme

For Brokers Taking inspiration from the endeavours of various industries and to make life simpler for ’You’, we at SBI Life are proud to introduce “Saral ULIP” a simple Unit Linked Non-Participating Insurance Plan to take care of your Life Insurance needs.



SBI Life - SARAL ULIP

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ABOUT RELIANCE LIFE INSURANCE COMPANY Reliance Life Insurance Company Ltd. Is one of the major market players in insurance sector. It is an associate company of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Being one of the top 3 private sector financial services companies in India, Reliance Insurance aims at "empowering everyone live their dreams". Reliance Life Insurance or RLIC has insured more than 1.7 Million people in 2 years of operation. Not only this, it is certified ISO 9001:2000 for all the processes. To add another feather to its hat, Reliance Life Insurance was awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Certificate of Merit. Reliance Life Insurance Products Reliance Life Insurance provides a number of investment plans for individuals as well as group. Some of these plans include: Protection Plans- with these plans one can protect his/her family. One can choose between a limited period plan and a lifetime protection plan. Savings & Investment Plans- these plans help one to save some money for the specific future purposes. Now, one can provide for the families daily needs and also not worry about expenditures! Retirement Plans- as the name suggests, these plans help one to save money even after retirement. Now enjoy the freedom of being independent even after your retirement!

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ABOUT BIRLA SUNLIFE INSURANCE COMPANY Risk management against a huge loss is very necessary, and insurance is transfer of risk from one entity to another. Several companies have come up these days with life, health, medical and travel insurance. One such company is Birla Sun Life Insurance. Providing a number of insurance products, Birla Sun Life is a prestigious company to bond with. Birla Sun Life Insurance Company Limited is a joint venture between the Sun Life Financial Inc and the Aditya Birla Group. Birla Sun Life Insurance was the first company in the sector of financial solutions to begin Business Continuity Plan. In fact, policies were first issued by this insurance company on the Internet. This insurance provider company has pioneered the unique Unit Linked Life Insurance Solutions in India. It is one of the top players in the industry of Private Life Insurance Scheme. The company believes in passion, integrity, speed, commitment and seamlessness. The mission of the company is to help people with risk management. It also helps in managing the financial situation of firms as well as individuals.

Some of the Birla Life Insurance products include: • Insurance for protection • Insurance for retirement • Insurance for saving • Insurance for children • Insurance for riders • Insurance for rural

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Birla Sun Life Insurance for Protection includes insurance such as Birla Sun Life Insurance Term Plan and Birla Sun Life Insurance Premium Back Term Plan. Birla Sun Life Insurance Term Plan is apt for those seeking insurance benefits at economic costs. The plan covers all the liabilities and provides absolute security. The minimum age limit for acquiring the insurance is 18 years and maximum is 55 years. One can pay the premium either annually, monthly, quarterly or semiannually. One can pay it through the ECS mode of payment or on a one-time basis.

The Birla Sun Life Flexi Secure Life II- Retirement Plan is segregated into 2 sections. One is the Accumulation or build up phase and the other is the Annuity or the payout phase. With this plan one can enjoy tax benefits. Surrender scheme is also applicable to this plan. One can give up the policy after the 3 years of policy till the vesting age.

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Other Birla Sun Life Insurance for Savings include: • Birla Sun Life Insurance Flexi Save Plus • Birla Sun Life Insurance Dream Plan • Birla Sun Life Insurance Gold-Plus II • Birla Sun Life Insurance Classic Life Premier • Birla Sun Life Insurance PrimeLife Premier • Birla Sun Life Insurance Saral Jeevan Plan • Birla Sun Life Insurance PrimeLife • Birla Sun Life Insurance Life Companion • Birla Sun Life Insurance Simply Life • Birla Sun Life Insurance Flexi Cash Flow • Birla Sun Life Insurance Flexi Life Line • Birla Sun Life Insurance Supreme-Life • Birla Sun Life Insurance Single Premium Bond

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ABOUT MET LIFE INSURANCE COMPANY MetLife Insurance is a prime mover in the India's insurance market. MetLife India Insurance Company Limited is affiliated to the MetLife, Inc. MetLife offers its customers a wide array of value added, innovative financial products. The company operates in over 600 locations in India, via its own offices and its bank partners. MetLife Insurance's client base comprises individual entities as well as customer groups. Over 32,000 financial advisors work under MetLife Insurance. These personnel are engaged in the provision of quality financial advice to customers through out India. It may be noted that MetLife, Inc. serves over 70 million customers around the world, Via its affiliates. Services of MetLife companies involve the following areas. • Life insurance • Retail banking • Annuities • Home insurance • Automobile insurance Financial services provided by the company include individual insurance, reinsurance and group insurance. Savings and retirement product services are offered to corporations and various types of other institutions. MetLife India Insurance Company Ltd offer the following services. Individual plans Micro Finance Employee Benefits

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The company provides its customers with a premier Financial Advisor Zone. A new offering from MetLife India Insurance Company Ltd has come in the form of introduction of 'drop box facilities' for premium collection. At present this facility is available at the following metros. • Bangalore • Mumbai • Chennai • Kolkata • Delhi It may be noted that, these drop boxes are placed at strategic locations in the above mentioned metros. MetLife India Insurance Company Ltd is also currently providing customers with reply-paid envelopes, for payment of premium cheques

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GRAPHS AND INTERPRETATION

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Q. 1 Do you have any Insurance policy? (A) YES (B) NO Option

Respondents

Yes

88

No

12

Interpretation Out of 100 respondents 88 respondents have said yes I have while 12 respondents have said no I don’t have any Insurance policy.

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Q.2 you have purchased your policy from LIC or any private sector Insurance company? (A) LIC

(B)

Private sector Insurance company

LIC 65 Private sector insurance company

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Interpretation According to data 74% respondents have taken their policy from LIC while 26% respondents have taken their policy from Private Sector Insurance Company.

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Q, 3 you have taken your policy from which private company? (A) ICICI prudential (B) Bajaj Allianz (C) HDFC standard life (D) TATA AIG (E) Any other ……………………….. Option ICICI Prudential BAJAJ Allianz HDFC standard life TATA AIG

Respondents 12 6 4 1

Interpretation According to data 53% respondents was in favor of ICICI prudential, 26% respondents were in favor of BAJAJ Allianz, 17% have taken their policy from HDFC standard life while only 4% respondents was in favor of TATA AIG.

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Q.4 why you have taken your policy from LIC? (A) brand name ( B) oldest (C) flexible premium rate

(D) tax saving/high returns (E) any other pls specify…………… Option flexible premium rate brand name oldest & reliable tax saving

Respondents 35 15 10 5

Interpretation This data has collected from the 65 respondents, who have taken their policies to the LIC. According to the data 54% respondents have taken their policy due to flexible premium rate of policy, 23% respondents by their brand name, 15% respondents have said its oldest and reliable and 8%respondents was in favor of tax saving.

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Q.5. why you have taken your policy from private sector Insurance Company? (A) Quick & high returns (B) better services (C) tax saving (D) Any other please disclose………………… Option Quick& high returns better services Tax saving

Respondents 15 5 3

Interpretation According to data 65% respondents was in favor of quick and high returns, 22% was in favor of their better services, while 13% respondents was in favor of tax saving also.

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Q.6. which policy or schemes you have taken? (A) ULIP plan (B) endowment plan (C) whole life plan (D) Pension plan (E) any other …………………… Option ULIP Endowment plan whole life plan pension plan Any other

Respondents 11 21 38 16 2

Interpretation According to data we can say that 43% respondents was in favor of whole life plan, 24% respondents was in favor of endowment plan, 18% respondents was in favor of pension plan, 13% have agreed with ULIP plan while 2% respondents have opted to children assurance plans.

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Q.7. why you have chosen this policy? (A) Low premium (B) high returns (D) it’s your needs (E) all of them Option Low premium high returns well awareness its your needs All of them

(C) well awareness

Respondents 40 20 15 10 3

Interpretation As per data is saying that out of 88 respondents 40 have said that they have taken their policy due to low premium, 20 have said that high returns, 15 was in favor of well awareness, 10 have said that is our my needs while 3 respondents was in favor of all of them.

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Q.8. Do you want to take any other policy from same company? (A) Yes (B) No (C) never (D) can think Option Yes No Never Can think

Respondents 27 33 10 18

Respondents

33

35 30

27

25 18

20

Respondents

15

10

10 5 0

Yes

No

Never

can think

Interpretation According to my question 27 respondents have said yes, 33 respondents have said no I will not take any policy by same company, 10 respondents was highly dissatisfied they said never while 18 (max. LIC policy holder) have said we can think about take other policy.

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Q.9 How much premium you have paid for your policy? (A) Less than 1000 (B) more than 5000 (C) more than 10000 (D) more than 15000 (E) don’t want to disclose

Option Less than 1000 more than 5000 more than 10000 more than 15000 Don't want to disclose

Respondents 40 20 15 10 3

Interpretation According to the questionnaire maximum data is collected from LIC and the premium of maximum LIC products is less than 1000Rs per 6 month. As per data is saying 40 respondents are in favor of less than 1000, 20 respondents are in favor of more than 5000, 15 respondents in favor of more than 10000, 10 are in favor of more than 15000 and 3 are not interested to disclose their premium. 54

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Q.10. Have you closed any insurance policy and why? (A) No (B) If yes (pls give company name……………………..) 1st. financial problem 2nd. Miss behavior of agent 3rd. benefits & returns of the policy

Option No If yes

Respondents 80 8

Respondents 80 80 70 60 50 Respondents

40 30

8

20 10 0 No

If yes

Interpretation Out of 88 respondents, 80 respondents said I don’t have left any insurance policy while 8 respondents have said that they have left their policy due to miss behavior of agent and some financial problem also.

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Q.11 Will you act as referred to others people seeking insurance policy? (A) yes (B) No (c) never Option Yes No Never

Respondents 30 45 13

Interpretation According to this graph 30 respondents have said I will refer it to seek this policy, 45 respondents have said no while only 13 respondents have said I will never suggest to any one to seek this policy.

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Q.12. Do you look for IRDA Instructions before taking Insurance policy? (A) Yes (B) no (C) I don’t know about IRDA Option Yes No I don’t know about IRDA

Respondents 50 31 7

Interpretation According to data 57% respondents have seen IRDA instructions, 35% respondents have not studied about IRDA guidelines while at the same time 8% respondents is also there who don’t have any about IRDA.

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Q.13. Are you satisfied with on line services of Insurance Company? (A) Yes (B) no (C) never

Option Yes No Never

Respondents 40 35 13

Interpretation According to my question 45% respondents was satisfied with the on line services of Insurance company, 40% respondents was not satisfied with on line services while 15% respondents was never satisfied by the on line services of insurance company.

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Q.14. Are you satisfied with your Insurance agent regarding their services? (A) Highly satisfied (B) satisfied (C) dissatisfied Option Highly satisfied Satisfied dissatisfied

Respondents 25 50 13

Interpretation When I asked a question regarding their satisfaction with the insurance agent than 50 respondents was satisfied with the services of agent, 25 respondents was highly satisfied and 13 respondents was also their who are dissatisfied with the services of insurance agents.

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Q.15 Suggestions………………………… Suggestion Right recruitment of agent Improve On line services low premium Others

Respondents 35 25 21 7

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This was the last question of my questionnaire. According to data 40% answer was focus on right recruitment of agents, 28% was in favor of on line services, 24% answers were related to low premium and 8% data was not clear to me that what he want to say.

FINDINGS

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FINDINGS After complete this survey report I found that: 1. I have taken 100 people as a sample size out of this 88% respondents have life insurance policy while 12% respondents were not having any insurance policy. 2. Out of 88 respondents 65 respondents were having LIC policy while 23 respondents have their policy from private sector insurance company. 3. According to my survey I found that ICICI Prudential is the most preferred private sector life Insurance company and up to some extent BAJAJ Allianz is also there. 4. I found that maximum LIC policy holder have taken their policy on the basis of flexible premium rate, brand name and their reliability.

5. I found that due to high/quick return and better services maximum respondents have taken their policy from private sector insurance company.

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6. I found that maximum respondents have taken whole life plan after this few respondents have taken endowment plan and few respondents have taken pension plan.

7. I found that maximum respondents have taken their policy due to low premium rate and high returns. 8. out of 88 respondents 27 have said yes I will take, 33 have said no, 10 respondents have said never while 27 respondents have said yes I can think about take any other policy from the same company.

9. I found that premium play an most important role before taking any investment in insurance because maximum respondents have select option less than 1000Rs. 10. I found that 80 respondents have not left any insurance policy while 8 respondents have left their policy due to financial problem and miss behavior of agents. 11. When I asked the question that will you referred to other people Seeking same Insurance policy 45 respondents answer were in the form of yes, 30 respondents have said no while 13 respondents have said never. 12. I found that 57% respondents was well aware about the IRDA, 35% have said no while 8% have said I don’t have any idea about IRDA.

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13. According to data the ratio between satisfaction of on line services is equal to each other. 14. Out of 88 respondents 25 respondents are satisfied, 50 have satisfied while

left are dissatisfied with the services of Insurance companies. 15. Lastly I found that maximum suggestion was regarding the improvement of services, right recruitment of agent and most of the focus was on rate of premium and returns. So, these are the most important findings which I fond after completion of this survey project.

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CONCLUSIONS

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CONCLUSIONS According to my collection of data I have tried to give conclusion on Survey topic which is as follows: 1. The maximum respondents were agreeing to invest their money in LIC.

2. According to my survey 74% market has been captured by LIC while left

26% have occupied by Private Sector Insurance Company. 3. The private players have finished the monopoly of the LIC from the market.

The major private sector Insurance companies which are posing as a threats to the LIC are as follows: • ICICI Prudential life Insurance company • Bajaj Allianz life Insurance company • HDFC standard life Insurance company • TATA AIG life insurance company • SBI Life Insurance company 4. There is only one public sector insurance company that is LIC & there are

22 private sector Insurance companies working in India, except few most of them are working in Varanasi also.

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5. The most popular and new plan of Insurance companies are Children

assurance plans with special riders and their on line services.

SUGGESTIONS

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SUGGESTIONS 1. According to the collection of data maximum respondents was in favor of

that the company must have to recruit the right kind of agent for the job. 2. Maximum respondents have said that they should try to improve quality

of the services and also consider the low/flexible premium rate for the policy. 3. They must have to think about the risk and returns of the policy.

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LIMITATIONS

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LIMITATIONS

Though the study gives the deep exploration but still it has a some limitation:1. The time provided was less for the collection of primary data for my survey project which was the major limitation.

2. The resources were limited for conducting my survey report.

3. The money was also limited to carry out my survey report which was also

one of the major limitations.

4. The authenticity of my survey report is fully dependent on the responses of the respondents.

5. Sometime people hesitate to give their opinion and personnel detail so that’s why it was also one of the major limitations which I faced during my survey.

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BENEFITS OF THE SURVEY

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BENEFITS

1. Now I am well aware about the market position of LIC and Private sector insurance company. 2. It helps us in understanding the investors opinion with LIC and Private sector insurance company. 3. By this survey I have tried to know about the various Public as Well as private sector insurance companies are working In India. 4. After completion of the survey I understand about the Policies & products of insurance company.

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BIBLIOGRAPHY

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BIBLIOGRAPHY 1. BOOKS AND MAGAZINS REFFERED: LIFE INSURANCE BY M.N. MISHRA INSURANCE WATCH MONEY OUT LOOK 2. WEBSITES REFFERED: WWW. ICICIPRULIFE.COM WWW.MONEY OUTLOOK.COM WWW.INSURANCE.COM WWW.TATA-AIG.COM WWW.SBILIFE.COM 2. REPORT REFFERED: BREIF PROFILE OF LIC INSURANCE SECTOR IN INDIA.

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ANAXTURE

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QUESTIONNAIR FOR SUMMER TRAINING Respected sir/madam, I, Eshan dvivedi, student of PGDM (Insurance and Risk management program) second semester from “School Of Management Science’s Varanasi.” Kindly fill the questionnaire containing your profile. This is meant for the study of “Compartive analysis Life insurance companies”. Please provide your kind support in filling up this questionnaire.

NAME

……………………………………………………………………

………………… ADDRESS

……………………………………………………………………

………………… AGE

……………..

GENDER

…………………….

OCCUPATION …………………………………………………………………… ………… QUALIFICATION ……………………………………………………….. 78

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CONTACT NO. …………………..…………………. INCOME GROUP

(A) below 10000 (C) 20000 - 30000

(B) 10000 - 20000 (D) 30000 & Above

Q.1. Do you have any insurance policies? (A) Yes

(B) No

Q.2. you have purchased your policy from LIC or from any private sector Insurance companies. (A) LIC

(B) private sector Insurance company

Q.3. you have taken your policy from which private company? ( A) ICICI prudential (B) Bajaj Allianz (C) TATA AIG (D) HDFC standard life (E) any other (Pls. specify)……………………… …….…. Q.4. why you have taken your policy from LIC, (Please rank)? (A) Brand name [ ] (B) oldest [ ] (C) flexible premium rate [ ] (D) Tax saving/high return [ ] (E) any other (Pls. specify)……………… ………. Q.5. Why you have taken your policy from private sector Insurance Company (Please rank)? (A) Quick & high returns (B) better services (C) tax saving (D) Any other (Please specify) ………………………. Q.6. which policy or schemes you have taken? (A) ULIP plan (D) Pension plan

(B) endowment plan (C) whole life plan (E) any other ……………………

Q.7. why you have chosen this policy?

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(A) Low premium (B) high returns (D) it’s your needs (E) all of them

(C) well awareness

Q.8. Do you want to take any other policy from same company? (A) Yes

(B) No

(C) never

(D) can think

Q.9. How much premium you have paid for your policy? (A) less than 1000 (B) more than 5000 (C) more than 10000 (D) More than 15000 (E) don’t want to disclose Q.10. Have you closed any insurance policy and why? No

(B) If yes (pls give company name……………………..) 1 . financial problem 2nd. Miss behavior of agent 3rd. benefits & returns of the policy st

Q.11. Will you act as references to other people seeking insurance policy? (A) Yes (B) no (C) never Q.12. Do you look for IRDA Instructions before taking Insurance policy? (A) Yes (B) no (C) I don’t know about IRDA Q.13. Are you satisfied with on line services of Insurance Company? (A) Yes (B) no (C) never Q.14. Are you satisfied with your Insurance agent regarding their services? (A) Highly satisfied (B) satisfied (C) dissatisfied Q.15. Suggestion ……………………………………………………………… …….

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