“ROLE OF LIFE INSURANCE AS AN INVESTMENT”

IN

Submitted in the partial fulfillment of the requirement for the degree of

(MASTER OF BUSINESS ADMINISTRATION)

PROJECT GUIDE SUBMITTED BY

 CERTIFICATE

It is certified that Project Report entitled “ROLE OF LIFE

INSURANCE AS AN INVESTMENT” has been completed by
Gurpreet singh in the partial fulfillment for the degree in Master of
Business Administration under my supervision and guideance.The
Work speaks about the sincere efforts of the candidate and I think it is
quite satisfactory and should be accepted for evaluation.

Date…………….
 PREFACE
Aviva Life Insurance was an obvious for my project. Aviva is
UK’s largest and the world’s fifth largest insurance Group. It is one of
the leading providers of life and pensions products to Europe and has
substantial businesses elsewhere around the world. With a history
dating back to 1696, Aviva has a 40 million-customer base
worldwide. It has more than £364 billion of assets under management.
My basic idea was to known as much I can in the stipulated time
period. The project is ‘ROLE OF LIFE INSURANCE AS AN
INVESTMENT.

This project is a part of our two-year degree course of Master of

Business Administration. M.B.A. course imparts the students with
virtues & prepare them to take business world in their stride. In the
final lap of course, Summer Training Project Report prepares student
to face the actual business environment & gives them practical
experience & helps them to view the real business world closely,
which in turn widely influence their conception & perception.

The project assigned to us required a lot of extensive study, as

we had to research the ‘ROLE OF LIFE INSURANCE AS AN
INVESTMENT. It gives us a great deal to exposure to work
environment, which will be very helpful for our future.

ACKNOWLEDGEMENT
It is difficult to acknowledge precious a debt as that of learning as it is the only
debt that is difficult to repay except through gratitude.

First and foremost I wish to express my profound gratitude to the almighty, the
merciful and compassionate with whose grace and blessing I have been able to
complete my work.

Thanks all my friends who have guided me and stood by me throughout.

CONTENTS
•Objectives of the study
•Research Methodology
•History of Insurance
•IRDA
•Company profile
•Products of company
•Benefits of investing with Aviva
•Customer satisfaction
•Market Share
•Data analysis & interpretation
•Conclusion
•Suggestion
•Limitation
• Bibliography
• Annexure
 OBJECTIVES

 To know the general views of people about life

insurance

 To know the position of AVIVA life insurance in

the market

 To know, whether life insurance is an investment or

not?

RESERCH METHODOLOGY
A research methodology is a sample frame work or plan for a
study that is used as a guide for conducting research.

RESEARCH DESIGN

It is the blueprint of the research to be conducted.

Research design used in the study: - Descriptive research
It is the research in which the already existing facts are
studied in the way they exist.

DATA SOURCE:
 Primary data – Questionnaire & interviews
 Secondary data – internet, Magazine and company
literature available.

SAMPLING PLAN

 Sampling unit – AVIVA Life Insurance

 Sampling size - 100
 Sampling procedure – convenience sampling
 Research area - Ludhiana

Brief History of Insurance

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some
sort of sacrifice in order to achieve security. Though the concept of insurance is
largely a development of the recent past, particularly after the industrial era –
past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established
during that period were brought up with the purpose of looking after the needs
of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives.
But Indian lives were being treated as sub-standard lives and heavy extra
premiums were being charged on them. Bombay Mutual Life Assurance Society
heralded the birth of first Indian life insurance company in the year 1870, and
covered Indian lives at normal rates. Starting as Indian enterprise with highly
patriotic motives, insurance companies came into existence to carry the message
of insurance and social security through insurance to various sectors of society.
Bharat Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance
in Calcutta and the Co-operative Assurance at Lahore were established in 1906.
In 1907, Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later
Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year
1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certified
by an actuary. But the Act discriminated between foreign and Indian companies
on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it
rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. 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,

What is insurance?

We face a lot of risks in our daily lives. Some of these lead to financial losses.
Insurance is a way of protecting against these financial losses. For a payment
(premium), an insurance company will take the responsibility of compensating
your financial losses.

Classification of Insurance

Life is full of uncertainty. Trials and tribulations abound in each and every
aspect of life. No one can truly predict or even estimate what the future has in
store for him. Life offers no guarantees by itself, except the incidences of death
and taxation.

This lack of security present throughout life can be overcome partially through
insurance. Insurance can never replace or repair a loss. But the monetary value
offered by insurance helps in adjusting to the new circumstances.

Despite offering innumerable options and immense scope, insurance can be

classified into four main categories.

• Insurance of Person

• Insurance of Property

• Insurance of Interest
 • Insurance of Liability

Insurance of Person:

Under the purview of this class of insurance, the risks associated with human
life in general can be covered up to the limit specified. A person can insure his
or her life and his health against any unplanned contingencies.

In event of his death, his dependants will be reimbursed to the full amount that
he was insured for. Or if the insured person meets with an accident or suffers
from an illness that cripples him forever, he will be compensated with the
complete sum assured anyway since he may not be able to lead a normal life
again.

In case, the accident is not that severe, he should be able to recover after
medical treatment and rehabilitation. If he has opted for medical cover, then his
medical expenses, treatment and medication will be paid for by his insurance
policy. |

Insurance of Property:

Everyone possesses material value in the form of tangible assets. Assets can be
in the form of a landed estate or a vehicle, share holdings or plain old paper
money.

Since tangible property has a physical shape and consistency, it is subject to

many risks ranging from fire, allied perils to theft and robbery. An individual's
lifetime of hard work can be wiped out in a blink of an eye.

But if a person judiciously invests in insurance for his property prior to any
unexpected contingency then he will be suitably compensated for his loss as
soon as the extent of damage is ascertained.

Insurance of Interest:

Every individual has to discharge certain specific duties. Everyone is expected

to maintain a standard of conduct. But then, it is an intrinsic part of human
nature to err. No one is infallible and no one will ever be.

Owing to an occasional error or omission committed by us, our clients or

customers might suffer a loss. In turn we might have to pay them damages or
compensation out of our own personal resources.
However, if our chosen profession qualifies for insurance of interest, then our
insurance policy will more than suffice in arranging for the funds and court
formalities that might ensue in the aftermath of legal libel.

Insurance of Liability:

Every person has to regulate his actions and behaviour so as not to cause injury
or damage to other people and their property. Everyone is personally
responsible and liable for his actions.

If due to lack of control over his actions or prejudiced behaviour, a person

incurs any liability then he has to provide compensation out of his personal
resources. Liabilities: legal, civil or criminal can have severe repercussions on
social standing and prestige besides the financial status.

By investing in liability insurance, an individual can ward off any liabilities he

might incur due to his actions and behaviour. Besides, the premiums payable on
liability insurance are fairly minimal when compared to the damages that have
to be compensated in the long run.

IRDA: - INSURANCE REGULATORY AND

DEVELOPMENT AUTHORITY (The Authority) was
established by an Act of Parliament-Insurance Regulatory & Development
Authority Act, 1999 (ACT)- and was constituted on April 19, 2000 by a
notification issued in the Gazette of India. The Authority was established with a
view to protect the interests of the holders of insurance policies, to regulate,
promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto. The Authority, in terms of section 13
of Insurance Regulatory and Development Authority Act, 1999 [Act], has been
vested with the assets and liabilities of the Interim Insurance Regulatory
Authority as are available on the appointed day i.e. April 19, 2000. In terms of
section 16 of the Act a fund shall be constituted namely ‘The Insurance
Regulatory and Development Authority Fund” [Fund]. The Fund shall
constitute of all Government grants, fees and charges received by the Authority,
all sums received by the Authority from such other source as may be decided
upon by the Central government and the percentage of prescribed premium
income received from the insurer. The Fund shall be applied for meeting the
salaries, allowances and other remuneration of the members, officers and other
employees of the Authorityand the other expenses of the Authority in
connection with discharge of its functions and for the purpose of the Act.

DUTIES, POWERS AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 laysdown the duties,powers and functions of

IRDA..

(1)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.
(2)Without prejudice to the generality of the provisions contained in sub-section
(1), the powers and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration;
(b) 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;
(c) specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors;
(e) promoting efficiency in the conduct of insurance business;
(f) promoting and regulating professional organizations connected with the
insurance and re-insurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the insurers, intermediaries,
insurance intermediaries and other organizations connected with the insurance
business;
(i) control and regulation of the rates, advantages, terms and conditions that
may be offered by insurers 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);
(j) specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and other
insurance intermediaries;
(k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n) supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations referred to in
clause (f);
(p) specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed

AVIVA LIFE INSURANCE COMPANY PVT.LTD.

: INTRODUCTION
Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one of
the leading providers of life and pensions products to Europe and has substantial
businesses elsewhere around the world. With a history dating back to 1696,
Aviva has a 40 million-customer base worldwide. It has more than £364 billion
of assets under management.

In India, Aviva has a long history dating back to 1834. At the time of
nationalization it was the largest foreign insurer in India in terms of the
compensation paid by the Government of India. Aviva was also the first foreign
insurance company in India to set up its representative office in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest
Group of companies. A professionally managed company, Dabur is the
country's leading producer of traditional healthcare products.

In accordance with the government regulations Aviva holds a 26 per cent stake
in the joint venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 28,000 Financial Planning Advisers (FPAs),
Aviva has initiated an innovative and differentiated sales approach to the
business. Through the “Financial Health Check” (FHC) Aviva’s sales force has
been able to establish its credibility in the market. The FHC is a free service
administered by the FPAs for a need-based analysis of the customer’s long-term
savings and insurance needs. Depending on the life stage and earnings of the
customer, the FHC assesses and recommends the right insurance product for
them.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its
global expertise in Bancassurance successfully in India. Currently, Aviva has
Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara
Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab &
Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir,
Bihar, West Bengal, Andhra Pradesh and Maharashtra and regional Banks.

When Aviva entered the market, most companies were offering traditional life
products. Aviva started by offering the more modern Unit Linked and Unitised
With Profit products to the customers, creating a unique differentiation. Aviva’s
products have been designed in a manner to provide customers flexibility,
transparency and value for money. It has been among the first companies to
introduce the more modern Unit Linked products in the market. Its products
include: whole life (LifeLong), endowment (LifeSaver, EasyLife Plus), child
policy (Young Achiever) single premium (LifeBond and LifeBond Plus),
Pension (PensionPlus), Term (LifeShield), fixed term protection plan (Freedom
LifePlan) and a tax efficient investment plan with limited premium payment
term (LifeBond5). Aviva products are modern and contemporary unitised
products that offer unique customer benefits like flexibility to choose cover
levels, indexation and partial withdrawals.

Aviva’s Fund management operation is one of its key differentiators. Operating

from Mumbai, Aviva has an experienced team of fund managers and the range
of fund options includes Unitised With-Profits Fund and four Unit Linked
funds: - Protector Fund, Secure Fund, Balanced Fund and Growth Fund.

Aviva has 156 Branches in India (including rural branches) supporting its
distribution network. Through its Bancassurance partner locations, Aviva
products are available in close to 500 towns and cities across India.

Aviva is also keen to reach out to the underprivileged that have not had access
to insurance so far. Through its association with Basix (a micro financial
institution) and other NGOs, it has been able to reach the weaker sections of the
society and provide life insurance to them.

DABUR

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

Partners

At Aviva we are committed to helping our customers get 'Kal par Control'
and make the most out of their lives. It is our constant endeavour to ensure that
our customers have easy access to Aviva products and services at all times.
Aviva has pioneered bancassurance in the country through its tie-ups with 22
leading private and nationalized Banks in the country. Aviva also focuses on
bancassurance worldwide and has a proven track record of successful
bancassurance relationships. It has 40 major partnerships with leading banks
across the globe. Aviva is a leading bancassurer in countries such as France,
Italy, Spain, Australia and New Zealand.

ABN AMRO Bank

ABN AMRO is a prominent international bank with European roots and a clear
focus on consumer and commercial banking gaining a competitive edge on the
chosen markets and client segments. ABN AMRO Bank (India) ventured into
the Indian market in 1920 primarily to finance the diamond trading business and
evolved by mid 1990’s into a fastest growing retail bank and a well-respected
wholesale bank.

The Bank is recognized as one of the most successful consumer banking outfits
in the county, known for its innovation and aggression. ABN India consumer
banking pioneered the distribution of third party financial products like mutual
funds, bonds and life insurance.

Aviva's relationship with ABN India commenced in June 2002 under which the
bank introduces its customers to Aviva for insurance and provides access to its
affluent customer base across the country through its operations in 21 branches
at 14 locations.

American Express Bank

American Express Company is a diversified worldwide travel and financial

services company founded in 1850. It is the world’s largest single card issuer,
based on purchase volume generated of nearly 55 million cards worldwide.
Present in India since 1921, American Express provides high quality travel
related and financial services in India.
Aviva Life Insurance entered into a strategic alliance with American Express
for distribution of Life Insurance in June 2002 to offer top-of the line saving-
cum-protection plans to Amex bank and card customers.

Aviva offers tailor-made investment solutions to the high net worth clients of
the Wealth Management channel. The retail card segment is being tapped
through outbound calling to the Amex card holders. The American Express
Inbound call centre also pitches Aviva products to its callers.

The Lakshmi Vilas Bank Ltd

The Lakshmi Vilas Bank Ltd, based out of Karur, is among the top private
banks in India. It has 221 branches with a customer base of 1.2 million, across
10 states. Currently Aviva products are sold across 204 branches of LVB.

CANARA BANK

Canara Bank is one of the largest retail banks in India with 2,513 branches
spread across 25 States and 4 Union Territories. The customer base of Canara
Bank exceeds 27 million. With a net profit of INR 1110 Crores, deposits of over
INR 96,908 Crores, 47389 employees for the year ending Mar 2005, Canara
Bank is truly a Bank to be reckoned with for the sheer magnitude of coverage it
offers its clients. Canara Bank has tied up with Aviva as a Corporate Agent for
its Life Insurance Products. Aviva products are currently offered in 1030 Canara
Bank branches in 103 Cities.

Punjab & Sind Bank

Punjab & Sind Bank was established in the year 1908. Based on the principles
of social commitment to the people, help the farmers, and the weaker sections
of the society to raise their standard of living and play a significant role in the
development of the country. Even after 96 years of its inception, Punjab & Sind
Bank stands committed to honor the high ideals of its founding fathers. Punjab
and Sindh Bank has a network of 759 branches and 132 extension counters all
over the country with close to 9,765 employees. 42 per cent of its branches are
in the rural and semi urban areas.

In line with spirit of liberalisation the Bank has laid special emphasis on
International banking, Hire purchase, Leasing, Tele-banking and Credit card
facilities. The bank has also started their Rural Development Division, High
Tech Agricultural Branches, Specialised Locker Branches, Industrial Finance
and SSI branches, besides Housing Finance Branch for the convenience of its
customers.

Centurion Bank of Punjab

Centurion Bank of Punjab is a new generation private sector bank offering a

wide spectrum of retail and corporate banking products and services. It holds
leadership positions in retail two-wheeler loans and commercial vehicle loans. It
has been among the earliest banks to offer a technology-enabled customer
interface that provides easy access and superior customer service.

RBI has approved the merger between Centurion Bank and Bank of Punjab
effective from October 1st, 2005. The merged entity, named Centurion Bank of
Punjab, has a strong nationwide franchise of 241 branches and extension
counters and 389 ATMs. With strengths in the retail, SME and agriculture
businesses the bank is well poised to capture the opportunities that exist in the
Indian market. The combined bank’s 3,500 employees will continue to provide
support and an enhanced banking experience to our customers, as part of a
bigger, stronger bank.

IndusInd Bank

IndusInd Bank Ltd., is one of the leading new-generation private-sector banks

in India, commenced operations in 1994 and had a net worth of Rs.866 crore as
at March 31, 2006. As of date, the Bank has a network of 148 branches and 87
offsite ATMs spread over 118 geographical locations in 24 states and Union
Territories.

Recently the Bank received licenses for opening 19 new branches across the
country. With this the network will now increase to 180 branches by March-
April 2007. Internationally, the Bank has a representative office each in Dubai
and London. The Bank also enjoys strategic alliances with Union National
Bank, Abu Dhabi in the UAE and Doha Bank in Qatar. These strategic alliances
encompass a wide range of banking services, including deposit accounts,
remittance business, loans, wealth management advisory, distribution of third
party products, trade finance, global banking, and investment banking including
corporate finance.

PRODUCTS & SERVICES

The right investment strategies won't just help you plan for a more comfortable
tomorrow -- they will help you get Kal Par Control.

At Aviva, life insurance plans are created keeping in mind the changing needs
of you and your family. Our life insurance plans are designed to provide you
with flexible options that meet both protection and savings needs.

We offer our customers a full range of transparent, flexible and value for money
products that include whole life (LifeLong), endowment (LifeSaver, EasyLife
Plus), child policy (Young Achiever) single premium (LifeBond, LifeBond
Plus), Pension (PensionPlus), Term (LifeShield), fixed term protection plan
(Freedom LifePlan) and a 5 year recurring premium investment cum protection
plan (LifeBond5). Aviva products are modern and contemporary unitised
products that offer unique customer benefits like flexibility to choose cover
levels, indexation and partial withdrawals.

We also offer you a choice of investment options. You can choose between our
Unit Linked Fund or our With Profits Fund.

The With Profits Fund guarantees that the selling price of the units will never
fall. The unit value of this fund is increased by crediting bonuses on a daily
compounding basis. The fund provides investment security to your capital.

The Unit Linked Fund is designed to provide relatively more progressive capital
growth wherein you automatically receive the benefit related to the investment
performance of the fund.

Under Unit Linked Fund, on some of our products we offer a choice of fund
options:
Protector Fund:

Progressive returns on your investment by investing higher element

of assets in debt securities, with minimum exposure to equities. The fund
comprises of debt securities in the range of 60-100%, equities in the
range of 0-20% and money market and cash in the range of 0-20%.

Secure Fund:

The investment objective of this fund is to provide progressive

return on your investment with a minimum guarantee on maturity. The fund
comprises of debt securities in the range of 50-100%, equities in the range of 0-
20% and money market and cash in the range of 0-20%. Initially the equity
exposure will be 10 %.

Growth Fund:

The investment objective of this fund is to provide high capital

growth by investing higher element of assets in the equity market. The
fund will comprise of debt securities in the range of 0-50%, equities in
the range of 0-85% and money market and cash in the range of 0-20%.
Initially the equity exposure will be 75%.

Balanced Fund:
The investment objective of this fund is to provide capital growth
by availing opportunities in debt and equity markets and providing a good
balance between risk and return. The fund comprises of debt securities in
the range of 50-90%, equities in the range of 0-45% and money market
and cash in the range of 0-10%.
Aviva also offers a whole range of group insurance products and
corporate solutions. We have a dedicated team that works with corporates
across the country.

PURE PROTECTION PRODUCTS

Aviva Life Insurance offer the following policies to take care of our protection
needs-

• Life Long
• Life Shield

LIFE LONG

LifeLong is designed to suit your individual requirements, no matter which life

stage you are at, and changes as your needs change during your entire life. For
the same premium, you can opt for a higher life cover (protection) and lower
savings or lower life cover and higher savings. The choice of protection-savings
mix is yours, and the decision can be based on your priorities and age. You can
also cover your spouse under the same policy without any additional expense
through a joint life policy (first death basis).

LifeLong offers a With Profits or 3 Unit Linked investment fund options, which
give you the flexibility of choosing how your money should be invested in
terms of the risk and the security of the return on the investment. You can invest
100% of your premiums either in With Profits Fund or in any of the Unit
Linked Funds. The minimum allocation in each selected unit linked fund must
be 10%.

LIFESHIELD

Insurance Term Pure

LifeShield is a low cost life insurance plan which guarantees to pay a lump sum
amount in case of your death during the term of the policy. LifeShield can be
purchased for any life between 18 to 55 years of age. However, the maximum
age of the life insured at expiry of the policy is 65 years. The minimum and
maximum policy terms are 5 years and 40 years, respectively. The minimum
annual premium is Rs.2,000 and the minimum sum insured is Rs.500,000. The
sum insured of the policy can be increased (only upto 40 years of age) once by
50% (subject to maximum increase of Rs.1,000,000) during the term of the
policy, without submitting any evidence of good health, if:
- You decide to increase the sum insured within three months of your marriage.
- You decide to increase the sum insured within three months of the birth of
your child.
This option to increase the sum insured is available if the policy has been
accepted on standard rates. It can be exercised only when outstanding term of
the policy is at least 5 years and the policy is inforce for full sum insured

PURE SAVINGS PRODUCTS

Aviva Life Insurance offer the following savings policies-

• Easy Life Plus

• Young Achiever
• Life Bond 5
• Life Bond
• Life Saver
• Life Long
• Pension Plus
• Save Guard
• Life Bond Plus
• Save Guard Junior
• Life saver Plus
• Freedom Life Plan

• Easy Life Plus

EasyLife Plus is a simple, unit-linked endowment plan with the benefit of life
protection. By choosing an appropriate premium level and term, you can match
the maturity date of the plan to a specific savings need such as your child’s
education, wedding or any other financial need.

EasyLife Plus also offers an extra protection against accident without requiring
you to undergo any medical examinations.

EasyLife Plus offers a With Profits or 3 Unit Linked investment fund options,
which give you the flexibility of choosing how your money should be invested
in terms of the risk and the security of the return on the investment. You can
invest 100% of your premiums either in With Profits Fund or in any of the Unit
Linked Funds. The minimum allocation in each selected unit linked fund must
be 10%.

• Young Achiever

Child policy

YoungAchiever is a regular premium life insurance product designed to meet

the financial needs of your children- be it higher education, marriage,
establishing themselves while starting a career or a business, or any other need.
Through this policy, you save regularly to meet your children's needs, and at the
same time their financial needs are taken care of should something unfortunate
happen to you. YoungAchiever can be purchased on the life of any one of the
parents with the child as the nominee. YoungAchiever offers a With Profits or 3
Unit Linked investment fund options, which give you the flexibility of choosing
how your money should be invested in terms of the risk and the security of the
return on the investment. You can invest 100% of your premiums either in With
Profits Fund or in any of the Unit Linked Funds. The minimum allocation in
each selected unit linked fund must be 10%.

• Life Bond

LifeBond 5 is an investment plan where you pay premiums only for 5 years and
get investment returns with maximum tax benefits. This unit-linked plan gives
you the flexibility that you, as a smart investor, seek both at the time of
investment and at maturity. LifeBond 5 offers 3 Unit Linked investment fund
options, which give you the flexibility of choosing how your money should be
invested in terms of the risk and the security of the return on the investment.
You can invest your premiums in any one fund or in a combination of funds.
The minimum allocation in each selected fund must be 10%. LifeBond is a unit
linked, Single Premium Whole Life plan, designed to provide you the maximum
benefit of investment returns and tax benefits. You can gift LifeBond to your
newborn and provide financial security when he/ she needs it. Also, you can
cover your spouse under the same policy without any additional expense
through a joint life policy (second death basis). LifeBond offers a With Profits
Fund and 3 unit linked funds, which give you the flexibility of choosing how
your money should be invested in terms of risk and security of return on
investment.
 • Life saver

Life Saver is a unit linked endowment plan designed to meet your specific long-
term savings needs such as education and wedding costs for your children, with
the added reassurance of a life cover to meet those costs in the unfortunate event
of your death before the policy matures. You can take LifeSaver on single life
or jointly with your spouse (first death basis). LifeSaver can be purchased on
any life between 18 to 65 years. However, for any rider cover the maximum
entry age is 55 years. LifeSaver offers a With Profits or 3 Unit Linked
investment fund options, which give you the flexibility of choosing how your
money should be invested in terms of the risk and the security of the return on
the investment. You can invest 100% of your premiums either in With Profits
Fund or in any of the Unit Linked Funds. The minimum allocation in each
selected unit linked fund must be 10%.

• Pension plus

Pension Plus is a tax efficient, personal pension plan that is designed to help
you earn a regular income, even after you stop working. Through this plan, you
build a fund till you retire which provides you financial security after
retirement. Pension Plus can be purchased for any life between 18 to 65 years of
age. The minimum age at maturity is 40 years and the maximum age at maturity
is 70 years. You have the option of either paying regular premiums or paying a
single premium. The minimum annual premium is Rs. 6,000 for regular
premium and Rs 1,00,000 for a single premium option. The minimum policy
term is 5 years. A With Profits Fund or 3 unit linked funds; Secure, Growth and
Balanced Funds.

• Save Guard

SaveGuard is a simplified, unit-linked endowment plan. It is specially designed

to help you save for important milestones like your child’s education and
marriage, building a house or even creating a retirement fund. It also provides
financial protection for your dependants in the unfortunate event of your
demise. SaveGuard offers life insurance as well as an investment opportunity
without requiring you to undergo any medical examinations.
SaveGuard offers 3 Unit Linked investment fund options, which give you the
flexibility of choosing how your money should be invested in terms of the risk
and the security of the return on the investment. You can invest your premiums
in any one fund or in a combination of funds. The minimum allocation in each
selected fund must be 10%.

• Life Bond plus

LifeBond Plus is a unit linked, Single Premium Endowment plan, designed to

provide you the maximum benefit of investment returns and tax benefits.The
entry age is 18 to 65 years (last birthday) and in case rider is opted, the
maximum entry age is 55 years. The policy terms is 5 to 25 years (maximum
age at maturity 70 years).A With Profits Fund or 3 unit linked funds; Secure,
Growth and Balanced Funds.

• SaveGuard Junior

SaveGuard Junior is a simplified, unit-linked endowment plan, which covers

your child’s life. It is specially designed to help you save for important
milestones in your child’s life like education, setting up a business or marriage.
SaveGuard Junior offers an investment opportunity as well as life insurance
without requiring you to undergo any medical examinations. SaveGuard Junior
offers entry ages from 0 to 17 years, a choice of policy terms, from 10 to 30
years as well as an option of investing in any or a combination of 3 unit-linked
funds. SaveGuard Junior also offers a guarantee that the units invested in the
Secure Fund will not be less than the price they were bought at plus 3% interest
compounded annually. LifeSaver Plus is a Unit Linked endowment plan
designed to meet your future savings requirements besides offering a higher life
cover. The plan offers full Sum Assured in addition to the Fund Value as death
benefit in case of your unfortunate death, thereby providing a higher financial
protection to your family. You can also opt for the “Systematic Transfer Plan”.
The plan provides a guaranteed addition at maturity. In addition, the Plan offers
a minimum guarantee on maturity on the funds allocated towards the Secure
Fund.

• LifeSaver Plus

LifeSaver Plus can be purchased for any age between 0 to 60 years. However, in
case any rider is opted for the maximum entry age is 55 years. You can also
choose the premium payment term separately from the policy term so that you
can match your paying capacity to your financial goals. You have the freedom
of choosing from 4 Unit Linked Funds: Protector, Secure, Growth and Balanced
Funds and the option of investing through the Systematic Transfer Plan. In
addition, you get a minimum 2% Guaranteed Addition at maturity and have the
choice of increasing or decreasing your premium amount whenever you like.

• Freedom Life Plan

Freedom LifePlan is a unit-linked limited premium paying endowment plan

with guaranteed loyalty additions. This unit linked plan gives you the flexibility
to customise the plan to suit your individual needs and alter it subsequently with
your changing needs. You can take Freedom LifePlan on single life or jointly
with your spouse (first death basis). Freedom LifePlan offers 3 Unit Linked
investment fund options, which give you the flexibility of choosing how your
money should be invested in terms of the risk and the security of the return on
the investment. You can invest your premiums in any one fund or in a
combination of funds. The minimum allocation in each selected fund must be
10%.

The pension plan market in India currently constitute 8 players who

offers 18 products
 Minimum Max
Sl. Mode of
Name of the Plan Entry Sum Maturity
No. Term Payment
Age Assured Age
 Life Insurance Corporation
Yearly, half
1. Jeevan Dhara - Plan No.96 18 Rs. 20,000 2 -
yearly
2. Jeevan Akshay - Plan No.97 30 Rs. 100 - No One time
Yearly, half
Jeevan Suraksha - Plan yearly,
3. 25 - 5 70 Yrs
No.122 quarterly,
monthly
New Jeevan Akshay - Plan
4. 30 Rs, 1,000 - None One Time
No.144
Yearly, half
New Jeevan Dhara - Plan yearly,
5. 12 Rs. 20,000 NA 75 Yrs
No.145 quarterly,
monthly
Bima Nivesh 2001-Plan Single
6. 35 Rs.25,000 5 75 Yrs
No.141 Premium
ICICI
7. ICICI Pru Forever Life 18 Rs 50000 5 65 -
8. ICICI PruReAssure 7 Rs 50,000 5 - One time
ICICI Pru ForeverLife
9. 8 Rs.50000 5 65 -
(Deferred Pension)
10. ICICI Pru LifeLink Pension 18 - 3 70 -
Yearly, half
yearly,
11. ICICI Pru Lifetime 0 - 10 70
quarterly,
monthly
HDFC
12. HDFC Pension Plan 18 - 10 70 -
Tata AIG Life Insurance
Yearly, Half
Yearly,
13. Assured Golden Years Plan 18 Rs. 25,000 - -
Quarterly,
Monthly
14. Nirvana - Pension Plan - - 10 60 -
Om Kotak Mahindra
15. Kotak Capital Multiplier Plan 18 - 5 65 -
Aviva India Life Insurance
16. Pension Plan 18 - 5 70 -
Max New York Life
Easy Life Retirement Yearly, half
17. 20 - 10 70
(Participating) Plan yearly

BENEFITS OF INVESTING WITH AVIVA

Tax benefits

Tax benefits as per the prevailing provisions of the income Ta Act, 1961
 Choice of investment options

You can choose between the unit linked fund or the with profits fund:
Unit linked funds are designed to provide relatively more progressive capital
growth wherein you automatically receive the benefits related to the investment
performance of the fund. Unit linked fund offers three investment fund option
which gives you the flexible of choosing how your money should be invested in
terms of the risk the and the security of the return on the investment:

Secure fund-

The investment objective of this fund is to provide progressive

return on your investment with a capital guarantee on maturity.

Growth fund-

The investment objective of this fund is to provide high capital

growth by investing higher element of assets in the equity market.

Balance fund-

The investment objective of this fund is to provide capital growth

by availing opportunities in debt and equity markets and provides you a
good balance between risk and return.

Indexation

To protect against inflation, indexation offers the option of

increasing the premium and the sum insured so that you get a meaningful
Amount on maturity.

Partial With drawls

Option for partial withdrawals from your fund whenever you need.

Additional Single Premium

Flexibility of making lump sum investments as often as you

require over the duration of the policy. These increase the saving value of your
policy besides maximizing tax benefits.
Cover Level

Cover level is a multiple of annual premium used to calculate the

sum insured. You have the flexibility of choosing your own cover level,
depending upon your needs.

CUSTOMERS STISFACTION

Fair treatment of customers is, fundamentally, good business practice and is key
to securing customers confidence in financial services. All our businesses are
focused on that goal.
As the world’s fifth largest insurer and one of Europe’s leading providers of life
and pensions products,Aviva as committed to ensuring open and transparent
relationship with our customers, we also seek to mind or our customers at every
of their lives.

Although we have yet to introduce one overarching customer policy to support

or diverse activities, the standards of business conduct policy does provide
minimum standards for the Aviva business to follow in seeking to provide our
customer with a service hallmarked by integrity, quality and care.

Business throughout Aviva are also committed to managing service levels

offered to customers and are continually seeking new and improved ways of
providing better customer service.

Market Share of different insurance company

As awareness about AVIVA life insurance Company among rural people is very
less than other company that is the reason of less market share of AVIVA.
 DATAANALYSIS
&
INTERPRETATIONS

Q.1 Which age group do you belong to?

 Age No of People
< 25 years 6
26-35 years 25
36-45 years 40
46-55 years 19
55 years or more 10

40

Q.2 The income class scenario of sample size.

35
Income class (in Rs.)

Business Class
In %

63
30
Service Class 37
25
63% of people was from business class, major people was able to understand
the things more precisely as businessmen are more conscious about any
investment plan.

Q.3 What is your income level?

 Annual Income No. of people
Less than Rs. 600000 30
Rs. 600000 to 1.5 lakhs 22
Rs. 1.5 to 2.5 lakhs 35
More than Rs. 2.5 lakhs 13
TOTAL 100

52% people belongs to income level less than 1.5 lakh and
rest more than 1.5 lakh.

13

Q.4 From which sources have you get awareness about insurance?
 AWARNESS ABOUT NO. OF PEOPLE
INSURANCE
News Paper 20
TV 35
Radio 12
Agents 25
Friends 8

As TV becomes the most entertaining visual media, that why people

get early information through TV and in case of insurance, agent play
very important role in case of information.
40

35
Q.5 What are the main considerations while investment in insurance?

30

25
 MAIN CONSIDERATION NO. OF PEOPLE
Tax 36
Saving & Investment 16
Protection 34
Pension 14
TOTAL 100

Most of people investing in life insurance for Tax benefits and the second thing
of their consideration is protection. Some people investing in insurance for
pension scheme that’s why only 14% are considering insurance for pension.

40 36
Q.6 WHICH BRAND WILL YOU PREFER?

Brand PERCENTAGE
ICICI Prudential 14
AVIVA Life Insurance 13
HDFC Standard Life 8
LIC 65
TOTAL 100

70%

60%
LIC is govt. sector player; therefore people have more faith on LIC. In case of
private player ICICI Prudential has largest network that’s why 14% people are
50%
giving importance to ICICI and 13% to AVIVA.

40%

30%
 Q.7 Which private player you know more?

PRIVATE PLAYER PERCENTAGE

ICICI Prudential 45
AVIVA Life Insurance 21
HDFC Standard Life 25
BAJAJ Allianz 6
Birla Sun Life 3
TOTAL 100

In case of private player ICICI Prudential has largest network that’s why 45%
people are aware with the brand ICICI, 24% to AVIVA and 25 % to HDFC
standard life.

45
45
40
 Q.8 Do you think that life insurance is a good investment?

Yes 90%
No 10%

As we have seen earlier, in present business scenario peoples are taking

insurance as an investment opportunity rather than safety. Therefore 90% gave
preference towards investment option.
 Conclusion
I have conclude that in present market scenario the main focus of

peoples are not only on safety & security but also on the better return.

Therefore, we can say that insurance also act as investment opportunity

because of Tax benefits, good return and security of life. These are the basic

reason, which shows that people become more conscious about return and

security of money than life insurance factor. This is the cause of growing of

insurance sector in geometric form.

 SUGGESTION
After analyzing the whole project, I would like to give few suggestion
to company to increase their market area. These facts are:-

 Company must have to focus on advertisement to aware

customers regarding Aviv’s products.

 Since peoples are focusing on good return so company must

have to give preference on those products.

 Company must also focus on rural area to increase market share.

 Company must has to focus on relationship strategy to retain the

old customer and create new customer.
 LIMITATON

• There was lack of time on the part of respondents.

• There may be some bias information provide by
company professionals.
• As only single city surveyed, it does not represent
the overall view of Indian market.
• Some of the respondents may give the incorrect
information.
 BIBLIOIGRAPHY

Research Methodology – Kothari

Marketing Management- Philip Kotler

WEBSITES

• http://www.answers.com
• http://www.wikipedia.com
• http://www.Avivalifeinsurance.com
 Annexure

Q.1 Which age group do you belong to?

 Age
< 25 years
26-35 years
36-45 years
46-55 years
55 years or more

Q.2 The income class scenario of sample size.

Income class (in Rs.)

Business Class
Service Class

Q.3 What is your income level?

Annual Income
Less than Rs. 600000
Rs. 600000 to 1.5 lakhs
Rs. 1.5 to 2.5 lakhs
More than Rs. 2.5 lakhs
TOTAL

Q.4 From which sources have you get awareness about insurance?

AWARNESS ABOUT INSURANCE

News Paper
TV
Radio
Agents
Friends

Q.5 What are the main considerations while investment in insurance?

 MAIN CONSIDERATION
Tax
Saving & Investment
Protection
Pension
TOTAL

Q.6 WHICH BRAND WILL YOU PREFER?

Brand
ICICI Prudential
AVIVA Life Insurance
HDFC Standard Life
LIC
TOTAL

Q.7 Which private player you know more?

PRIVATE PLAYER
ICICI Prudential
AVIVA Life Insurance
HDFC Standard Life
BAJAJ Allianz
Birla Sun Life
TOTAL

Q.8 Do you think that life insurance is a good investment?

Yes
No