A PROJECT REPORT

ON
FACTORS INFLUENCING LIFE INSURANCE PURCHASE DECISIONS
& CUSTOMER SATISFACTION SURVEY w.r.t.
AVIVA LIFE INSURANCE IN NEW DELHI.

EXECUTIVE SUMMARY

Aviva Life Insurance Company India Pvt. Ltd. is a combined venture between
Aviva of UK and Dabur, one of Indias most important producers of traditional
healthcare products. Aviva holds a 26 per cent stake in the joint business enterprise
and the Dabur group holds the balance 74 per cent share.
Aviva is UKs largest and the worlds sixth 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. Aviva pioneered the notion of Banc
assurance in India. Currently, Aviva has Banc assurance tie-ups with ABN Amro
Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The
Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in
Gujarat, Rajasthan, Jammu & Kashmir and Maharashtra and one regional Bank in
Sikkim.
Aviva has 40 Branches in India (including rural branches) supporting its sharing
network. Through its Banc assurance partner locations, Aviva products are
available in 378 towns and cities across India.

This project aims at providing information regarding insurance sector, factors

influencing decision purchase and customer satisfaction survey w.r.to AVIVA in
New Delhi.

Chapter 1 explains about the concept of insurance, its purpose and need in
contemporary world. Governing legislation over insurance. IRDA (Insurance
Regulatory and Development authority) governs insurance industry. Indian life
insurance joint ventures.
Chapter 2 is all about the main as well as sub objectives of the organization and
what are their research methodologies.
Chapter 3 is about a brief comparison between private players and LIC.
Chapter 4 includes the analysis of data being collected regarding the Aviva Life
Insurance Co. Ltd. over other private players.
In chapter 5 findings are based on data analysis presented in earlier chapter and in
the later half of this chapter recommendations are given.
Chapter 6 is the conclusion made on the basis of this project. New players are
leading the sector due to their strategic management and tailor made projects.
People opting for Aviva plans are more as compared to other private players but the
latter are gaining momentum in the market day by day.

ACKNOWLEDGEMENT
The success of my research report would not hint at any one individual, but it was
a consolidated effort on the part of all who contributed to this report.
I express my gratitude to the entire panellist who took active part in accomplishing
my project. To begin with, I would like to acknowledge my sincere thanks to for
giving me an opportunity to work on this project. Further I thank

for arranging

my SIP in this company.

I wish to express my deepest and most sincere thanks to my who has continuously
guided me throughout the project.
I am thankful to

for providing me an opportunity to gain both theoretical and

practical knowledge in the field of Marketing and extending their full support.
I would like to thank all the respondents who took an active part in fulfilling the
questionnaire.
Last but not the least; I would like to thank my parents and friends for their moral
support throughout the project.

TABLE OF CONTENTS
Chapter 1.0 INTRODUCTION

1.1

Insurance Industry Overview

1.2

Profile of Aviva Life Insurance Co. Ltd.

1.3

Problems of the Organization

1.4

Competition Information

1.5

S.W.O.T- Analysis

Chapter 2.0 OBJECTIVES AND METHODOLOGY

2.1

Significance

2.2

Managerial Usefulness of the study

2.3

Research Objective

2.4

Scope of the study

2.5

Research Methodology

Chapter 3.0 CONCEPTUAL DISCUSSION

Chapter 4.0 DATA-ANALYSIS
Chapter 5.0 FINDING AND RECOMMENDATIONS
Chapter 6.0 CONCLUSIONS
ANNEXURES
BIBLIOGRAPHY

CHAPTER 1.0 INTRODUCTION

1.1

Insurance Industry Overview

1.2

Organization profile of Aviva

1.3

Competition Information

1.4

Problems of the Organization

1.4

S.W.O.T- Analysis

INTRODUCTION
1.1 OVERVIEW OF INSURANCE INDUSTRY
1.1.1 Insurance?
Every asset has a value for its owner and for those who are benefited with the existence
of that asset. Insurance is concerned with the protection of economic value of assets.
All of us are interested in the creation of assets because:
i.

All assets have values.

ii.

They yield income to the owner.

iii.

They meet some other needs of the owner.

iv.

They may provide satisfaction of some needs and also yield income to the
owner.

Every asset has normally an expected lifetime. During this period, it is expected to
perform and provide income/comfort to the owner. The owner, being aware of this, plans
the things in such a way that by the time the expected lifetime of the asset expires, he is
ready with the funds required for its replacement. In this way, he ensures that the value or
income from the asset is not lost. Well, this appears to be a fine arrangement provided the
asset completes its expected lifetime.
All assets carry the risk of being destroyed or damaged. But all assets may not necessarily
get destroyed or damaged. Only in a few instances, the probability turns out to be true
and the assets gets actually lost or destroyed by accident or some other unfortunate event
before the compilation of its expected lifetime. The owner and those deriving benefits
8

from the asset will suffer because the arrangement to make available its substitute is not
yet ready.
Insurance is helpful in mitigating such adverse consequences. To sum up, assets are
insured, as they are likely to be lost or made non-functional through an accidental
occurrence.
Insurance does not protect the assets. This means that insurance cannot prevent loss to the
assets due to perils. Nor can insurance avoid the occurrence of perils. It only
compensates, may not be fully, the economic or financial loss resulting to the asset from
such damage or destruction.

1.1.2 Governing legislation

Insurance is a federal subject in India and the legislation that governs insurance in India
is:
The Insurance Act, 1938; and
The IRDA Act.

1.1.3 Insurance Regulatory & Development Authority

Insurance Regulatory and Development Authority (IRDA) was constituted in 1999
by an Act of Parliament to protect the interests of the policyholders and to regulate,
promote and ensure orderly growth of the insurance industry. IRDA consists of a ten
member team that comprises a Chairman, five whole-time members and four part-time
members.
IRDA allows registration of new players in the insurance field. It also has the
authority to renew, modify, withdraw, suspend or cancel such registration. IRDA ensures
9

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. It specifies
requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents.
After creation of IRDA, insurance sector has seen tremendous growth. Before
IRDA came into force there were only players in the insurance field, namely, Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
Since then 13 new players have entered in the insurance sector.

Indian Life Insurance Joint Ventures

Foreign Entity
AIG
Allianz
Aviva Life
Cardiff
ING Life
New York Life
Met Life
Old Mutual
Prudential
Standard Life
Sun Life

1.2

Local Company/Venture
Tata
Bajaj
Dabur
State Bank of India Life
Vysya
Max
J & K Bank, Pallonji Group & others
Kotak Mahindra
ICICI
HDFC
Birla

COMPANY PROFILE
10

Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the
leading providers of life and pensions products to Europe and has substantial businesses
elsewhere around the world. With a history dating back to 1696, Aviva has a 40 millioncustomer base worldwide. It has more than 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) Avivas sales force has been able to establish its
credibility in the market. The FHC is a free service administered by the FPAs for a needbased analysis of the customers long-term savings and insurance needs. Depending on
the life stage and earnings of the customer, the FHC assesses and recommends the right
insurance product for them.
Aviva pioneered the concept of Bancassurance in India, and has leveraged its global
expertise in Bancassurance successfully in India. Currently, Aviva has Bancassurance tieups 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

11

Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and
Maharashtra and regional Banks.
When Aviva entered the market, most companies were offering traditional life products.
Aviva started by offering the more modern Unit Linked and Unitised With Profit products
to the customers, creating a unique differentiation. Avivas products have been designed
in a manner to provide customers flexibility, transparency and value for money. It has
been among the first companies to introduce the more modern Unit Linked products in
the market. Its products include: whole life (LifeLong), endowment (LifeSaver, EasyLife
Plus), 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.
Avivas Fund management operation is one of its key differentiators. Operating from
Mumbai, Aviva has an experienced team of fund managers and the range of fund options
includes Unitised With-Profits Fund and four Unit Linked funds: - Protector Fund, Secure
Fund, Balanced Fund and Growth Fund.
Aviva has 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.

12

DABUR

Founded in 1884, Dabur is one of India's oldest and largest groups 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 1990s 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

13

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 worlds 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
14

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

15

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 banks 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
16

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 unitized 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 and 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.

PURE PROTECTION PRODUCTS

17

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

Life Shield 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. Life Shield 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 up to

18

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 policiesEasy 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

19

Easy Life Plus

Easy Life 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 childs education, wedding or any other
financial need.
Easy Life Plus also offers an extra protection against accident without requiring you to
undergo any medical examinations.
Easy Life 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%.
20

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%.
21

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 childs 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
22

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 childs
life. It is specially designed to help you save for important milestones in your childs 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

23

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%.

1.3

PROBLEMS OF THE ORGANIZATION

Service delivery / Logistics perception is weak

Negative Environment
Top management takes large amount of time to approve high value loan borrowers.

24

1.4

COMPETITION INFORMATION

1.4.1 Insurance Companies in India

Before insurance sector was opened to the private sector Life Insurance
Corporation (LIC) was the only insurance company in India. After the opening up
of Insurance sector in India there has been a glut of insurance companies in India.
These companies have come up with innovative and flexible insurance policies to
cater to varying needs of the individual. Opening up of the Insurance sector has also
forced the L.I.C to tighten up its belt and deliver better service. All in all it has been
a bonanza for the consumer.
Major Life insurance Companies in India are:

Bajaj Allianz

Birla Sun Life Insurance

HDFC Standard Life Insurance

ICICI Prudential

ING Vysya

Kotak Mahindra

LIC

MetLife India Insurance

Reliance Life Insurance

SBI Life Insurance

25

Shriram Life Insurance

Tata AIG Life Insurance

Bajaj Allianz

Bajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance
companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the
world. Bajaj Allianz is into both life insurance and general insurance.
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and threewheelers in India and one of the largest in the world.
Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies.
Currently, it has presence in more than 550 locations with over 60,000 Insurance
Consultants.

Birla Sun Life Insurance

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group
and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational
conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt,
Canada, Australia and China.
Sun Life Assurance, Sun Life Financial's primary insurance business, is one of the
leading insurance companies of the world and ranks amongst the largest international
financial services organizations in the world. The Group has presence in several countries
such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda.
26

HDFC Standard Life Insurance

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's
largest housing finance institution and Standard Life Assurance Company, Europe's
largest mutual life company. It was the first life insurance company to be granted a
certificate of registration by the IRDA on the 23rd of October 2000.
Standard Life, UK was founded in 1825 and has experience of over 180 years.
Companies. The company is rated as "very strong" by Standard & Poor's (AA) and
"excellent" by Moody's (Aa2).
HDFC Standard Life's cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So far
the company has covered over 11,00,000 individuals and has declared 5th consecutive
bonus in as many years for its 'with profit' policyholders.
ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it has
diversified into retail banking and is the largest private bank in the country. Prudential plc
was established in 1848 and is presently the largest life insurance company in the UK.
ICICI Prudential is currently the No. 1 private life insurer in the country. For the financial
year ended March 31, 2005, the company garnered Rs 1584 crore of new business
premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies.

27

ING Vysya Life Insurance

ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and
ING Group of Holland, the world's 4th largest financial services group, with presence
across 50 countries, and a heritage of over 150 years.
ING Vysya Life Insurance Company Private Limited entered the private life insurance
industry in India in September 2001. With in a short span of time ING Vysya Life
Insurance has registered an impressive growth. The company currently has over 10,000
active advisors working from 75 branches (in 30 cities) across the country and over 2300
employees.
Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's
leading financial institutions and offers a range of financial services such as commercial
banking, stock broking, mutual funds, life insurance, and investment banking.
Old Mutual was established more than 150 years ago and offers a diverse range of
financial services in South Africa, the United States and the United Kingdom. The
company is listed on the London Stock Exchange with a market capitalization and has its
headquarters in London.

28

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the
life insurance business in India with its Head Office at Mumbai. It has been established
by an act of the Parliament and started functioning from 1/9/1956.
LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766
crore generated by the insurance industry through group business in the year 2005-06,
LIC alone accounted for Rs 3051 crore.
In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives
insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC
has a growth of 2%. LIC's market share in number of individuals covered and number of
policies stands at 77% and 81%, respectively.
MetLife India Insurance

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its
Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka
Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu.
Met Life Group has presence in America and Asia and has an experience of over 137
years in providing financial services. The MetLife companies are the number one life
insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. MetLife
serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian
insurance sector in 2001.

29

Reliance Life Insurance

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent
shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP
Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio.
AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar
Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country,
9,000 agents, and more than 900 employees.
SBI Life Insurance

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of
France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a
paid up capital of Rs 350 crores.
State Bank of India is the largest banking franchise in India. Along with its 7 Associate
Banks, SBI Group has a network of over 14,000 branches across the country, the largest
in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading
Bank. BNP is one of the oldest foreign banks with a presence in India dating back to
1860
Shriram Life Insurance

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based
Shriram Group and the South African insurance major Sanlam.
The company launched its operations in India in December 2005.

30

Shriram Life has set a target of achieving a premium income of Rs 110 crore during the
first year of operations. While focussing largely on the strong network of over 65,000
agents and distribution network of more than 550 branches, Shriram Life is also
contemplating bancassurance alliances with couple of banks.1.3.14 Tata AIG Life
Insurance
Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and
American International Group, Inc. (AIG). Tata Group is one of the oldest and leading
business groups of India. Tata Group has had a long association with India's insurance
sector having been the largest insurance company in India prior to the nationalization of
insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance
Co. Ltd., a group company incorporated way back in 1919.

American International Group, Inc is the leading U.S. based international insurance and
financial services organization and the largest underwriter of commercial and industrial
insurance in the United States. AIG has one of the most extensive life insurance networks
in the world.

1.5 SWOT ANALYSIS

31

Both Strengths and Weaknesses are inherent with the company while Opportunities and
Threats are usually outside factors, which affect the existence of the company at large.
Let us make the SWOT Analysis for Life Insurance Corporation:

1.5.1 Strengths
The early bird advantage
More penetration in the rural parts of India
The trust they have created so far
Established agency network during the last decades
The incomparable supremacy in the number of agents
More awareness among the people

1.5.2 Weaknesses
The marketing approach is not that much professional
The sluggishness of the activities has given at times a bad repute
As a public company lacks sincerity and activeness.

32

1.5.3 Opportunities
As people become more internet savvy, the Adv. Expenditure will come down as
the prospective clients can be approached through net.
The high growth rate of Indian Economy
The penetration of Insurance in rural area is minimal.
The Government policies are offering more and more rebates on the insured
amount and such a scenario will help more people getting interested in it. The
people are becoming more aware of Insurance and started considering it.

1.5.4 Threats
Now as India is on the brim of emerging out as an economic power center,
stringent laws can be expected in the coming future.
As the number of agents are considerably huge, efficient management of all the
field force need greater strain and effort
The aggressive style of marketing by the private players is a threat to LIC
More and more companies are coming into the field and the existing ones have to
struggle hard to keep the customers loyal and to get more customers.

33

Chapter 2.0

OBJECTIVES AND METHODOLOGY

1.

Significance

2.

Objectives

3.

Scope of the study

4.

Research Methodology

34

2.1

SIGNIFICANCE
The main significance of the study is the reasons of salaried people taking up
Insurance Services pertaining to Life Insurance.

2.2

MAIN OBJECTIVE
To study the reasons of salaried people taking up Insurance Services pertaining to
Life Insurance
To know the Most Preferred Policy.
To study the types of benefits provided by Insurance Services.

2.3

RESEARCH METHODLOGY

The research process:

It includes following steps
1. Defining the research problem & research objective:
The definition of the research problem includes the study of the topic
FACTORS INFLUENCING LIFE INSURANCE PURCHASE
DECISIONS & CUSTOMER SATISFACTION SURVEY w.r.to AVIVA
LIFE INSURANCE in few of the local markets in Delhi/NCR

35

2. Developing the research plan:

Second stage for developing the research plan calls for gathering the
information. It consists of
Data sources: The researcher can gather primary data, secondary data or both.
Primary data are data freshly gathered for specific purpose or for a specific
research project. Secondary are data that were collected for another purpose and
already exist somewhere.
Research Approaches:
Primary data can be collected in five ways:
1) Through observation: Fresh data can be gathered by observing the relevant
actors and settings.
2) Survey research: Surveys are best suited for descriptive research. Surveys
are used to learn about organizations knowledge, beliefs, preferences and
satisfaction.
3) Behavioral data: Organizations leave traces of their purchase behavior in store
scanning data, catalog purchase and customer database. Much can be learned by
analyzing these data.
4) Experimental research: The purpose of experimental research is to capture
cause & affect relationship by eliminating competing explanations of the observed
findings.

36

RESEARCH INSTRUMENTS: Three main instruments used in collecting

primary data are:
1) Questionnaires:
A questionnaire consists of a set of questions presented to respondents.
Questionnaire needs to be carefully developed, tested and debugged before they
are administered on large scale.
2) Psychological tools:
Psychological tools consist of depth interviews.

QUESTIONS ARE OF TWO TYPES:

1) Closed end questions
2) Open end questions
Closed end question include:
Dichotomous
Multiple choice
Likert scale
Open end questions include:
Structured questions

37

SAMPLING PLAN
After deciding the research plan and research instrument, the marketing
researcher must design a sampling plan. This calls for three decisions:

1) Sampling unit:
Who is to be surveyed? The market researcher must define the target industrial
area that will be sampled. Once the sampling unit is determined, a sampling
frame must be developed so that everyone in the target industrial area has an
equal or known chance of being sampled. I have completed my survey in
local markets of Delhi/NCR
2) Sampling size:
How many organizations to be surveyed? Large samples give more reliable results
than small samples. It mainly refers to no. of respondents from the universe. My
sample size consists of 100 respondents of life insurance from different local
markets of Delhi/NCR region.
3) Sampling procedure:
How should the respondents be chosen? To obtain a representative sample, a
probability sample of the population should be drawn.
SAMPLING
1) Probability sampling
It includes:

Simple random sampling

38

2)

Non probability sampling

It includes

Convenience sampling

SAMPLING TECHNIQUE USED:

Due to constraint of time, convenient sampling is used. This sampling method
involves purposive or deliberate selection of particular units of the universe for
constituting a sample, which represents the universe. In this population
elements are selected for inclusion in the sample based on the ease of access.
3) Collect the information:
The data collection phase is most expensive and most prone to error. Problems that
can arise in this phase can be:
1) Other will give biased answers.
2) Some interviewers will be biased.
4) Analyze the information:
The next to last step in the marketing research process is to extract findings from the
collected data. Different types of statistical techniques are used.
5) Present the findings:
As the last, the researcher presents the findings. The researcher should present
findings that are relevant to major marketing decisions.
6) Decision making:
39

After completing all phases decision is formulated that is advantageous for the
organization. Decisions made are checked and implemented by managers.
STATISTICAL TOOLS USED:

One dimensional diagrams are used e.g. bar diagrams.

Two dimensional diagrams are used e.g. pie diagrams.

Sampling methods are used.

Scope of Study:
The study is restricted to some areas within some particular markets in Delhi/NCR
only.
The study covers all respondents in the given area.
LIMITATIONS OF THE STUDY:
Every person tries to do the work in the best possible way, but yet
he/she faces certain difficulties. But still proper care was taken to present
the report in the best possible way, but still the difficulties which was faced
are as follows1) Area of survey is also limited as survey was conducted in only few local
markets of delhi/NCR region.
2) Time and other factors, which are beyond human limitation, have also a
bearing on the study.
3) Sample size taken for the study is quite small and it therefore does not
represent the whole population.
4) Since only limited number of respondents have been selected which do
not represent the whole of the population in the Delhi/NCR.
5) Some of the respondents do not take interest in filling questionnaire.
40

6) Some of the respondents give wrong answers due to lack of interest.

7) Some of the respondents are biased.
Research Design:
Descriptive: The research design involves descriptive style. Descriptive research
studies are those research studies which are concerned with describing the
characteristics of a particular individual or of a group.
Here I took descriptive research design because I know that company have
problem but the type of problem is unknown.
Sample technique:
Convenience sampling:
A method in which samples are drawn at the convenience of the researcher or
interviewer, often as the study is being conducted. The assumptions underlying this
method are that the defined target population is homogeneous and the individuals
interviewed are similar to the overall target population with regard to the
characteristics being studied.
Also I have less time to complete the project so I applied convenience sampling
method on 100 respondents.
Sample size: 100
Area of operation: local markets of Delhi/NCR
Method of data collection: survey (interview)

41

CHAPTER 3.0 Conceptual Discussion

3.1 Private Insurers vs. LIC

3.2 Private players and Government monopoly in insurance

42

CONCEPTUAL DISCUSSION
3.1 Private insurers vs. LIC
Private players in the life insurance business are growing at a scorching pace. Within
three years of their inception, they have seized about 14 per cent of the market.
Compare this to new generation private-sector banks, which took nine years for 20 per
cent share in the Indian banking industry. And after seven years in the industry, in 2000,
private mutual funds accounted for just 9 per cent of a market that had been dominated by
the Unit Trust of India.
There's another dimension to the insurance numbers game. While the private insurance
companies have attained 13 to 14 per cent share of the overall insurance market, their
share in the key metros (Mumbai and Delhi) is as high as 30 to 40 per cent.
"We have to struggle to complete a deal in the metros now, because policyholders are
comparing products and asking for better deals," says S B Mathur, chairman of the Life
Insurance Corporation of India.
Private insurance companies are essentially joint ventures with global insurance
companies holding a maximum of 26 per cent stake. The foreign partners are investing
heavily in the Indian market and, thereby, driving sales, because they see India emerging
as one of the biggest markets in the Asian region.
"India will become the biggest market for us in the next three to four years," predicts Dan
Bardin, Prudential Corporation Asia managing director south Asia and greater China.
Private players have certainly done their bit to increase the penetration levels of
insurance, mainly by creating alternative distribution channels--such as associations with
banks, brokers and corporate agents.
43

"Our banc assurance channel--with tie-ups with four banks--contributes almost 70 per
cent of our total sales," says Aviva CEO Stuart Purdy.
OM Kotak Mahindra Life, which is ranked eighth among private players, is also leaning
towards alternative distribution channels that will contribute to 45 per cent of total sales,
in line with the contribution from its tied agency force.
In sharp contrast, most of the LIC's policies continue to be sold through its tied-agency
network. The state life corporation acknowledges that it is unable to maintain its lead in
some metros: penetration by the private-sector insurers has come of age and they are
giving the LIC a run for its money.
The multi-channel approach adopted by private insurance companies has proved to be a
boon in terms of costing and their ability to capture business. Earlier, most private
insurance companies focused their energies on the top 20 cities. Today they are moving to
smaller cities.
"The potential in smaller cities is increasing and companies are moving to smaller cities
and towns because these are increasingly becoming more prosperous with a rise in
agricultural income. With the increase in buying power, this has fuelled growth
opportunities for us".
AMP Sanmar, another private player, has tied up with various chit funds and transport
finance companies in the country, where it is selling life policies on the back of fixed
deposits and bonds. A senior company official cites the example of Vijaywada where a
significant portion of the income is derived from farming activities.
"The rural populace is managing their money well and no longer keeping it under their
beds. They have mobile phones and have opened bank accounts. They are not very
different from their urban counterparts when it comes to purchasing life insurance
covers," he points out.
44

And that's making the private sector optimistic about its future in the Indian insurance
market. "We [private insurers] are becoming an alternative to LIC. If a customer has
already bought an LIC plan, his second policy is likely to be bought by the private
insurance sector on account of various reasons--more specifically flexibility and
transparency," says OM Kotak Mahindra Life CEO Shivaji Dam.
Perhaps this partly explains why the LIC has increased its advertising spend multifold
since the insurance sector was privatized. Its ad spend more than doubled to Rs 81 crore
(Rs 810 million) in fiscal 2003, against Rs 37 crore (Rs 370 million) in 1999-2000, prior
to the industry being privatized.
Of course, the private insurance sector has also been steadily increasing its ad spend,
from Rs 29 crore (Rs 290 million) in fiscal 2001 when the industry opened up, to Rs 92
crore (Rs 920 million) the following year. In fiscal 2003, private insurers spent Rs 143
crore (Rs 1.43 billion) on advertising.
But it's not the increased spend on advertising alone that has helped private players in
grabbing market share. One of the key differential factors responsible for their growing
market is the 150,000-odd life insurance advisors of the private insurance companies.
"The private insurance agents sell better than their counterparts at the LIC. Life insurance
advisors of private sector insurance companies adopt the need-based selling approach,
unlike the LIC's agency force that pushes the number of policies," says Dam.
This also gets reflected in the average sum assured by private insurance companies being
higher than that of the LIC. Policies sold by the private players tend to be of a higher
value.
For instance, Birla Sun Life's average premium stands at Rs 24,500, while that of OM
Kotak Mahindra Life is equally high at Rs 20,400. Against this is the LIC's average
premium of Rs 3,200.
45

Of course, there's also a difference in the target client of the private and the state-run
insurance companies. While the private players are targeting the upper middle-class and
high net-worth individuals, the LIC aims for the masses through its 2,048 branches
spread across semi-rural and rural towns.
Meanwhile, private insurance companies are capitalizing on global relationships.
"Business deals are often a call away since we capitalize on AIG's global relationship
with multinational companies such as GE and Kodak," says Tata AIG Life Ian Watts.
OM Kotak has gone a step further and tied up with Swiss Life International so that it can
capitalize on the latter's relationship with 300 multinational subsidiaries and affiliates.
But it's not as if LIC has lost out on group insurance. The insurance major's group
business reached new heights in fiscal 2004, recording a 119 per cent growth in new
premium income and 50 per cent increase in the number of lives covered.
Still, new business income for private companies has grown at 146 per cent in fiscal
2004, compared to the 18 per cent average industry growth in new premium income for
the same period.
"The key in product sales lies in offering unbundled and transparent products that give
customer value," points out Dam.
The biggest draw in insurance in fiscal 2004 was unit-linked plans. Ninety-five per cent
of the policies sold by Birla Sun Life and over 80 per cent of the 436,000 policies sold by
ICICI Prudential were unit-linked plans.
And even though the LIC was late (January 2004) in pushing its unit-linked product
"Bima Plus", it managed to mop up a premium income of Rs 373 crore (Rs billion) with
the sale of just under 1.7-lakh unit-linked policies, the highest sales figure in the industry.

46

The advantage with unit-linked plans is that they offer policyholders transparency in
terms of costs, annual returns and bonus calculations. With many companies guaranteeing
the capital investment (some like Birla Sun Life even guarantee 3 per cent assured returns
on its unit-linked plans), the interest in unit-linked plans only increased.
And the switch from traditional products to unit-linked plans gained momentum as the
Sensex climbed higher: the returns on such policies are linked to the equity market.
"The stock market has helped to a certain extent and has contributed to our growth and
performance," agrees Birla Sun Life CEO Nani Javeri.
Aviva has shown a compounded aggregate growth rate of 36 per cent since the inception
of its fund. Returns on OM Kotak's balanced and growth funds stand at 31.79 to 43.25
per cent respectively.
Dam claims that OM Kotak has sold several policies of Rs 25-50 lakh (Rs 2.5-5 million)
since the "savvy investor thinks it best to invest in unit-linked products." He adds:
"Growth is coming faster in insurance companies with unit-linked plans."

3.2 Private players and Government monopoly in insurance

About 48 years after the business was first nationalized, the Government kept its word
and issued the first life insurance certificate of registration today to the HDFC-Standard
Life combine. Two certificates were also issued to Reliance General Insurance Company
and Royal-Sundaram Insurance for the general insurance business; this had been
nationalized in 1972.
So, from next year Indians across the country can hope to get their life and other
insurance done from private sector companies offering a host of new and different
47

products. To cite one example, foreign insurance firms sell insurance policies to guard
directors of companies against possible lawsuits and prosecution of their firms. Similarly,
with more private players, it's very likely that insurance policies will be increasingly
linked with pension plans -- the pension business, however, has not been opened up to
private players as yet.
With just 5 per cent of India's population insured, private insurance firms have been very
keen that the market be opened up to them at the earliest. Opening up of the insurance
sector has also been a big demand of countries like the US since a host of US firms are
also allying with Indian firms to access the market.
Apart from HDFC, Reliance and Royal-Sundaram, three other companies -- ICICIPrudential Life Insurance, Aviva Life Insurance and IFFCO-Tokyo Marine General
Insurance Company -- have been given in-principle approval for registration.
Speaking to The Indian Express, HDFC Chairman Deepak Parekh said the insurance firm
would have a soft launch of its products in December and a formal launch in January.
Deepak Satwalekar, Managing Director of the insurance joint venture, said the company
would be offering a host of new products -- the exact types would be decided by what
their market research threw up. ``As in the case of HDFC, we'll give consumers the
products they want,'' he added.
HDFC's insurance venture will have a paid up capital of Rs 168 crore, 81.6 per cent of
which will be owned by HDFC and the rest by Standard Life.
The Insurance Regulatory Development Authority (IRDA) had earlier announced that the
first batch of licenses would be granted by Diwali.
So far, 10 companies have applied for an insurance license. Public sector banks, including
SBI, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India and

48

Corporation Bank are also preparing to enter the insurance market -- these banks have the
advantage of their existing customer base and a huge branch network as well.
The Bill to open up the insurance sector was first conceived and moved by the United
Front Government when P. Chidambaram was Finance Minister. This Bill was, however,
defeated by the BJP which voted against it. When it came to power, the BJP came up with
a similar legislation but restricted the equity share of foreign insurance firms to 26 per
cent -- in addition, another 14 per cent could be held either by foreign institutional
investors or NRI-controlled overseas corporate bodies.
The BJP's Bill, too, faced problems for a while with the swadeshi brigade opposed to it
and the equity share of foreign insurance firms (earlier, the equity proposed for them was
40 per cent) had to be whittled down to get their support.
Dalip Verma, managing director, Tata AIG General Insurance Company, is an insurance
industry veteran with over 26 years of experience. He has been spearheading AIGs entry
into the general insurance business right from 1996, when he joined as the chief operating
officer of AIG India. Since December 2000, he has been at the helm of affairs at AIGs
joint venture company with the Tata group. Prior to joining AIG, Mr Verma spent 19
years with the state-run New India Assurance Company. In an exclusive interview with
Papiya De of The Financial Express, Mr Verma discusses the changing dynamics of the
general insurance business in India and Tata AIGs role in it.
There seems to be greater rush amongst the private sector players to get into life
insurance business via general insurance. Why?
I dont think there has been any conscious effort to do so. There are 12 general insurance
companies and 15 life insurance companies. Out of this, eight in general insurance and
fourteen in life insurance are private sector companies. Therefore, in India, there is really
no big difference.

49

India is still at a very nascent stage with a $8-9 (Rs 400-450) per capita expenditure on
insurance, out of which $2 to $2.5( Rs 100-150) will be on general insurance. Even in
some of the neighboring countries like Thailand, Malaysia, Philippines etc. the per capita
spend is significantly higher.
How big is the general insurance market in India? What kind of growth rates has it been
witnessing?
This year the market was somewhere close to Rs 15,000 crore, roughly $3 billion. The
sector has been growing steadily between 10 and 12 per cent. The private sector players
have been witnessing much better growth rates for obvious reasons.
The private sector would command about 9.5 to 10 per cent of the market and I would
say that it has been a rather good start for us because, to reach a figure of 10 per cent of
the overall industry in other liberalized markets has taken much longer.
Which is a more preferred route of selling general insurance - is it the agency route or
bancassurance model?
Traditionally, in India general insurance was more bought than sold. General insurance
was purchased because it was compulsory to do so. With the private sector coming in,
general insurance policies are now being sold and every player is looking all possible
channels to sell their products.
Globally, bancassurance has been successful in certain countries like UK and France but
has had a mixed run in Germany and the US. Typically life insurance products are more
suited to the bancassurance model. At Tata AIG, we will look at all modes of distributing
our products. Brokers, who can source products from a cross-section of players, and
solicit insurance on behalf of the insured, have been successful and we would look at this
option too. We are also looking at corporate agents to sell a range of our products. We
have tie-ups with HSBC and Thomas Cook in India.

50

How stiff is the competition in the marketplace?

India is a big market. Prior to nationalization, there were 106 general insurance
companies and 250 life insurance companies, today there are only 12. Competition is
good for the consumers and good for the companies as well. It helps in increasing
awareness and creating a market.
How difficult is it to compete with a behemoth like GIC?
GIC has a distribution network that cannot be replicated overnight. It is spread across
four companies and 4000 branches and it will be a part of the Indian economy. We are
trying to create a niche with our superior services. We have a 24 hour call centre; new
products and we go and sell our products right at the customers doorstep.
Which segments of general insurance are you targeting?
We are present in all lines of the general insurance business. We have motor and overseas
travel, specialized liability product for the InfoTech sector and several tariff products. We
cannot really single out any segment. We are set out to build a balanced book in business
and we have so far succeeded in doing that. Motor products, for instance, commands 35
per cent of all general insurance products, and our portfolio reflects that trend.
You had a target of breaking even in the fourth year of your operations. How far or close
are you to your target?
We will break even within three-and-a-half years of operation. Normally a life insurance
company takes around 7-8 years to break even and for general insurance companies the
figure stands between three and four years.
In a market where everyone is betting on superior customer service, what will be Tata
AIGs USP?
I believe a good thing does not get bad just by repeating it. We intend to provide superior
service and shorten the claim settlement time considerably. In pre-liberalization days, a
motor claim would take anywhere around six months before it got settled, we have
51

brought it down to around three weeks. We also have a 24 hour customer service cell to
lodge complaints, buy products (in certain areas) and submit claims. Servicing claims
will be one of the crucial determinants to success.
How important is pricing in the general insurance business?
India is a very price sensitive market. However, 65 per cent of the business is in tariff,
where pricing is still determined by the government. It is going to change over the next
few years. In non-tariff products like personal accident etc there is a lot of pressure on
pricing. Companies will have to be reasonable while determining a pricing structure
because, across the globe, there are instances of companies going bust while playing the
game of undercutting state-run companies.

Insurance: Good times to continue

The life insurance industry has been a dynamic one since the entry of the private players
into the insurance market. Customer focus and product innovation have taken centre
stage, which, one has to say, has been a departure of sorts from the days gone by. Last
year was no different for this sector; it saw a lot of activity in the year.

Budget changes
The most significant event of the year for the insurance sector was the increase in tax
benefits on life insurance plans.
Earlier, the benefits on premium payments stood at Rs 70,000 for the year; these were
brought within the consolidated Section 80C banner to Rs 100,000. This limit includes
Section 80CCC pension plan tax benefits upto a maximum of Rs 10,000.

ULIPs form a major portion of new business

Unit-linked insurance plans (ULIPs) continued to rule the roost; taking off from where
they had left last year. For many life insurance companies, ULIPs accounted for more
than half of new business.
52

Mis-selling still continues

ULIPs have been aggressively marketed by life insurance companies. ULIPs as a product,
has been a valuable addition for the insurance seeker. But many insurance agents have
'sold' ULIPs without really understanding the individual's needs his risk profile or the
fundamentals of asset allocation.
As Personals, we believe that equities are equipped to do better in the long run compare
to their fixed return counterparts like bonds and G-sectors. But at the same time, we also
believe that individuals should make investments in ULIPs in tune with their risk profile
and asset allocation.
Recently, the Insurance Regulatory and Development Authority have come out with
certain guidelines for ULIPs. It has proposed a compulsory 3-year lock-in period for
ULIPs.
In other words, individuals will not be allowed to withdraw any money from their ULIP
'account' for the first 3 years. The primary intention behind this is to preserve the identity
of life insurance (and therefore ULIPs) as a long-term savings option.
The IRDA has also specified that the minimum tenure for ULIP policies be 5 years and
that a ULIP have a 'sum assured' and not be totally linked to the markets. In addition, the
IRDA has also proposed that life insurance agents be given separate training for selling
ULIPs as ULIPs demanded better understanding than that currently prevalent in the
industry.
The guidelines will be effective from June 2006. These guidelines by way of
'restructuring' the product, will help in protecting the interests of individuals and also go a
long way in curbing the malpractices currently prevalent in the life insurance industry.

53

Term plans still not being 'sold'

Term plans are the purest form of life insurance available. Despite a term plan being a
must in every individual's portfolio, they continue to remain poor cousins to savings
based plans (life insurance with a maturity benefit).
Blame the many unscrupulous agents for this. Individuals need to ensure that their
financial portfolio consists of a term plan, which will help the overall long-term financial
planning cause.

Endowment plans still being 'bought'

Individuals continue to be 'enticed' by endowment plans for the maturity benefits and the
'safety' that they provide. While such plans do have an insurance element, the returns that
they offer hardly manage to beat inflation, leave alone help individuals plan their finances
effectively.
We do believe that from a long-term perspective, individuals need to look at other more
efficient means of savings like tax saving mutual funds or ULIPs. However, as always,
the same should be in line with their asset allocation and risk appetite.

Pension funds on the anvil?

The interest rate offered on EPF has been brought down from 9.50% to 8.50%. The EPF
being long-term savings, the rate cut has made the need for the setting up of pension
funds even more acute.
While the process of putting up the pension fund regulatory and development authority
(PFRDA) has been initialized, the pace needs to pick up so that individuals can park their
pension monies with a body, which will make their money work harder for them as
compared to the earlier scenario.

54

Private firms boost insurance sector growth

Led by private players ICICI Lombard, Bajaj Allianz and Iffco-Tokio, general insurance
industry grew by an impressive 15 per cent in the first quarter of 2005-06 even as
National Insurance and Reliance General continued to decline in business.
Except Reliance General, the new players gave a tough fight to the established players in
all departments of business to capture 26 per cent of market share.
The non-life insurance industry, consisting of five public and eight private players, grew
by 14.75 per cent at Rs 5,504 crore in premium collection till June 2005, as per figures
released by regulator IRDA.

Market leader New Indias premium grew by 9.18 per cent to Rs 1,176 crore till June and
cornered a market share of 21.37 per cent.
Kolkata-based NIC regained its second slot despite posting 5.85 per cent decline in
premium collection at Rs 935 crore till the first three months of this fiscal and had a
market share of 16.98 per cent. Delhi-based Oriental was at the third spot after logging
11.26 per cent growth in premium income at Rs 933.5 crore and a market share of 16.96
per cent. Chennai-based United India grew by 4.3 per cent at Rs 895 crore till June and
had 16.26 per cent of market share. Export Credit Guarantee Corporation recorded 18.52
per cent growth in premium collection at Rs 134 crore. It had a market share of 2.44 per
cent. Among the private players, ICICI Lombard performed excellently by recording 92
per cent growth in premium at Rs 423 crore while Bajaj Allianz grew by 51.7 per cent at
Rs 319 crore.
ICICI Lombard is well ahead of other private players with a market share of 7.69 per cent
while Bajaj Allianz has 5.8 per cent of the market.
55

Iffco Tokio is in the third spot among new players by collecting Rs 236 crore in premium
income (4.29 per cent).

Private insurance comes of age

The numbers tell the story. In five years, private insurers have cornered more than a
fourth of the total life insurance market with a share of 26.18 percent. And it does not end
there.
Swiss Re, one of the world's largest re-insurance firms, estimates that real life premiums
will grow by a staggering 300 per cent or at a 15 per cent compound annual growth rate
in the next 10 years.
Moreover, industry watchers believe private life insurers can grow at around 37 per cent
till 2011, and achieve a market share of new business around 55-60 percent by financial
year 2008-09. Premium income in financial year 2004-05 was Rs 18,700 crore (Rs 187
billion).
One of the key factors that have contributed to the success of private players has been the
introduction of the unit linked insurance policy.
Unit Linked Insurance Plans, which marry investment and insurance and account for as
much as 70-80 percent of premium incomes for top players, have attracted the "younger,
affluent Indian" who is keen to dabble in the stock market and at the same time buy an
insurance product. Thus, insurers have cashed in on the increasing participation of
individuals in the stock market.
Says Shikha Sharma, CEO, ICICI Prudential, "Some of the more educated people have
opted for ULIPs because they find it easier to understand than the traditional endowment
products. In that sense, there is a new customer base."

56

According to Deepak Satwalekar, managing director, HDFC Standard Life, the company'
growth has been faster after it launched ULIPs. He believes that HDFC Standard Life
will continue to be the best-selling product for some time to come. Ticket sizes, too, are
becoming bigger: the average premium per policy was nudging Rs 11,000 in the first
quarter of 2005-06, up sharply from Rs 6,000 in 2003-04.
The other reason why private life insurers have done well and in some sense scored over
their mutual fund counterparts is the strong distribution network they have built. HDFC is
now present in 480 towns, while Bajaj Allianz is in 400 towns.
Says Sam Ghosh, CEO of Bajaj Allianz, "our strategy has been to penetrate the tier-II
towns where the costs are lower and the mutual funds have virtually no presence.'
Satwalekar believes that mutual funds have not focused on expanding their reach as much
as insurers have. Sharma feels that effective use of tied agents -- where an agent is
affiliated with only one insurer, compared with the mutual fund industry where wealth
managers and banks are the main advisers -- has also helped insurers.
Besides, insurers have also used the banking channel -- ICICI Prudential has seven bank
assurance partners. In fact, owing to their strong customer focus, insurers have actually
managed to extract high fees and upfront charges from customers.
Satwalekar, however, contends that the maturity value for an insurance product is
superior to that of a mutual fund over a 25-year period.
Within the private sector, there has been some churn. In the initial years, it was ICICI
Prudential and Birla Sunlife which were ahead, the latter having been the first to launch
ULIPs.
Today, ICICI Prudential retains its premier position (7.26 per cent). The company's
strategy is to target volumes, as evident from its aggressive marketing. Bajaj Allianz
(5.94 per cent), the star of 2004-05, which now occupies the second spot, has set its sights
on the tier-II cities where Life Insurance Corporation is the main competitor.
HDFC Standard Life (3.11 per cent), which started out slowly, has based its strategy on
the 'quality plank' and has moved up steadily to the third place. Says Satwalekar, 'We
have been accused of being conservative, but in a long-term business like insurance, there
are no short-cuts.'
57

CHAPTER 4.0 Data Analysis

DATA ANALYSIS
4.1 Data gives figures of ranking of insurance company according to the respondents.
Table 1

Company Name
LIC
Aviva
ICICI Prudential
OM Kotak Mahindra
HDFC
Total

Number of respondents

Share (%)

45
40
10
3
2
100

45
40
10
3
2
100

Fig. 9

Interpretation:
40%

of

people
Aviva

the
have

policy

and is ranked number one by that percent of respondent.

4.2 Data gives figures of benefits of insurance cover perceived by respondents.
Table 2

Benefits
Cover Future Uncertainty
Tax Deductions

Number of respondents

Share (%)

55
20

55
20
58

Future Investment
Total

25
100

25
100

Fig. 10

Interpretation: 55% of the respondents believe that covering future uncertainty is the biggest
benefit of insurance policy. 20% and 25% of them believe that other benefits are tax deduction
and future investment.

59

4.3 Data provides features of insurance policy which attracted the respondents the most.
Table 3

Features

Number of

Share (%)

respondents
Money Back Guarantee

15

15

Larger Risk Coverance

37

37

Easy Access to Agents

Low Premium
Reputation of Company

30
11

30
11

Total

100

100

Fig. 11
Interpretation: Majority of the respondent found larger risk conversance as the most attracted
feature of their policy.

60

4.4 Data provides type of policy respondents are holding

Table 4

Policy Type

Number of respondents Share (%)

Life Policy
Non Life Policy
Both
Total

60
25
15
100

60
25
15
100

Fig. 12

Interpretation: 60% of the respondents have life insurance policy while 15% have both life and
non life insurance policy.

61

4.5 Data provides various instruments of Insurance.

Table 5

Instrument
Protection
Investment
Tax
Great Returns
Risk Management
Total

Number of respondents

Share (%)

75
10
6
5
4
100

75
10
6
5
4
100

Fig. 13

Interpretation: 75% of the respondents say protection is most important.

62

4.6 Data provides how many people are aware of Private Participators.
Table 6

Awareness
Yes
No.
Total

Number of respondents

Share (%)

80
20
100

80
20
100

Fig. 14

Interpretation: 80% of the respondents are aware of private participators.

4.7 Data provides how many people think insurance is important.

63

Interpretation: 75% of the respondents think insurance is important.

4.8 Ranking of various factors associated with Insurance

64

Interpretation
80% respondents think life is the most important factor for taking insurance.
30% respondents think automobile insurance must be done.
40% respondents think that property should be insured.

65

4.9 Insurance is an instrument for.

Interpretation
Risk management is the factor people think should go for insurance
Greater returns and saving taxes are followed

66

CHAPTER 5.0 FINDINGS & RECOMMENDATIONS

5.1

Findings

5.2

Recommendations

67

5.1 FINDINGS
The project study report has the following findings with it:
Almost 75% of respondents have an insurance policy.
People have more number of life insurance policies as compared to non life
insurance.
Only 80% people are aware that Insurance has been opened for Private
Participators.
Due to increased in consumerism new product is launched everyday thus non
life/general insurance business is also going to have boom period.
Due to the increasing concern of people towards their health/life the life insurance
business has good prospects.
Majority of the respondent believed that larger risk conversance of their policy
was the main feature of their policy that attracted them to buy that policy. Though
saving taxes was the next important feature.
Majority of the respondent preferred to have Aviva policies than other private
companies.
Not many people know about the IRDA Act.
Majority of the respondents believe that covering future uncertainty is the most
important benefit of an insurance policy.

68

 Risk management is the most important instrument of insurance followed by

investment, tax, and greater returns.

5.1.1 Life insurance industry grows 21%. Sources are:

Life insurance industry grew by 21 per cent with LIC and 13 private players mopping up
Rs 4,437 crore in the first three lean months of 2005-06, according to agency reports.
Private players expanded business by 73 per cent while state-owned Life Insurance
Corporation grew by 10.2 per cent.
Fueled by aggressive growth, the private players have now cornered over 25 per cent of
the life insurance market till June 2005 compared to 17.61 per cent a year ago in terms of
premium income from fresh businesses, as per data released by regulator IRDA.
LIC continues to shed ground as its market share came down to 74.87 per cent till June
2005 as against 82.39 per cent during the corresponding period last year.
LIC mopped up Rs 3,322 crore in premium income during April-June this fiscal by
selling 33.86 lakh policies.
To arrest the decline in market share, LIC is planning to engage a large chunk of its
60,000 odd Class-III staff in selling products and is focusing on widening policyholders
base rather than run after a niche segment.
ICICI Prudential topped the chart of private players with a market share of 7.53 per cent
after logging a business growth of 51 per cent at Rs 334 crore.

69

Bajaj Allianz was second with a market share of 4.18 per cent followed by HDFC
Standard (3.2 per cent), Tata AIG (1.93 per cent), Birla Sunlife (1.84 per cent), SBI Life
(1.69 per cent), Aviva (1.44 per cent) and MNYL (1.14 per cent).

5.2 RECOMMENDATIONS
There are certain flaws existing in this working of the insurance industry. There are some
of the recommendation I come across while doing this thesis. It will help to make
insurance more important sector in todays economy.
The need of the hour is to devise a comprehensive strategy that will help the firms
face the challenges of the future. The financial service industry around the world
over is undergoing a major transformation. It is very important that trained
marketing professionals who are able to communicate specific features of the
policy should sell the policy.
From the research I could find out that people are not aware about the policies and
features of insurance. Therefore LIC and ICICI are recommended to shed light on
policies and explain the benefits, thus increasing the awareness.
The penetration of insurance in India is around 22%. This indicates that a vast
majority of rural population is not covered. The market player needs to explore
this untapped potential through their marketing and sales network.
The returns of the policies are not properly managed and never given in time. So,
these areas must be looked at.
Pricing of insurance products, as empirically available in India, shows that pricing
is not in consonance with market realities. Life Insurance premium is generally
70

perceived, as being too high while general insurance (especially motor insurance)
is priced too low.
Some insurance products, which are not available in India, should, be introduced
in market. There are areas for new product development like Industry all risk
policies; large projects risk cover, Risk beyond a floor level, extended public and
product liability cover.
Insurance companies will also have to get savvy in distribution. Enhanced
marketing thus will be crucial. Already many companies have full operation
capabilities over a 12-hour period. Facilities such as customer service center are
already into 24-hour mode. These will provide services such as motor vehicle
recovery. Technology will also play an important role on the market.
The lines of distinction between banks insurance companies and brokerages are getting
blurred. The future seems to belong to financial supermarkets that will offer a host of
services and products to the consumer. In the next millennium all these activities would
play a crucial role in the overall development and maturity of the insurance industry.

71

CHAPTER 6.0 CONCLUSIONS

I have drawn various conclusions from this study. There has been tremendous change in
the insurance history. And with it there has been continuous growth in this sector both in
Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry. While
the various companies in order to face the competition is coming with new strategies.
New players are leading the sector due to their strategic management and tailor made
projects.
From the research also I conclude that though the awareness and people opting for Aviva
plans are more as compared to other private players but the latter are gaining momentum
in the market day by day.
The primary reasons for buying an insurance policy, whether life or non-life is to protect
us from vagaries of life. We do not invest in insurance for returns; rather we invest in it
for regrettable necessities. Though a large proportion of policies available in the country
provide for returns, but nobody is looking for returns to the inflation rate. So what does
insurance offer, perhaps peace of mind, but even that takes time, due to poor claim
performance.
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an
integral part of the liberalization process being pursued by many developing countries?
Insurance is an Rs.400 billion business in India and yet its spread in the country is
relatively thin. Insurance as a concept has not been able to make headway in India. There
has been a strong fall in insurance business in recent years. Furthermore, it can be
observed that non-life business is not increasing as strongly as life business. On the other
72

hand, growth fluctuations have been relatively small with growth rates varying between
1% and 5%.
Life insurance business by contrast achieved average growth rates of 6%, although the
actual rates ranged from 0% to 13%. This shows on the one hand the increasing
significance of life insurance as an instrument for old age provisions and on the other
hand indicates the sensitivity of life insurance to changes in the institutional and
economic environment.
The current state of insurance distribution in India is still in flux. On one hand, insurers
are awaiting regulations to be approved for brokerages and bancassurance to be truly
launched. On the other hand they are trying the corporate model of intermediaries in
addition to the traditional models in the market.
There is no right and wrong in all this. The success of marketing insurance depends on
understanding the social and cultural needs of the target population, and matching the
market segment with the suitable intermediary segment.
In addition a major segment of the Indian population has low disposable income,
meaning that every penny won will be obtained after a lot of persuasion and the expected
value for money is high.
All intermediaries can't sell all lines of business profitably in all markets. There should be
clear demarcation in the marketing strategies of the company from this perspective.
Clients should also receive price differentials for using different channels. This is not a
new concept, as the Public sector Property & Casualty companies are giving discounts in
lieu of agency commission. The channel composition should not be homogeneous but
should reflect the larger society.

73

For example:
Agents from different economic, social strata and different age and gender.
Banc assurers ranging from multinational banks to micro credit lending agencies.
Brokers stretching from corporate to NGOs to milk co-operatives.
These intermediaries need to be empowered with the right learning, training and sales
tools and technology enablers. Coupled with the right product mix, this will help the
insurers to survive and flourish in this competitive market.
Let us conclude with a story of a retired postal clerk who became a success story for
selling postal savings and insurance in his village in Punjab in Northern India. The person
is the father of my colleague, who is a retired postal employee and took up agency for
postal savings and insurance to supplement his meager retirement earnings.
Today 10 years later he is one of the top agents selling postal savings and insurance in
his village, assisted by his illiterate wife and grandson (a seven year old computer
literate) doing all the administrative work from home on a small Personal computer using
a package (developed by our friend who is a programmer) to handle his client portfolio!
The entire village population trusts him with the investment advices that he doles out and
has no qualms in handing over small amounts of cash to him for depositing in the post
office. He is their trusted customer care or financial consultant. This we feel is the
essence of distribution of financial products in India.
So lets conduct this business with utmost economy with the spirit of trusteeship; thereby
making insurance widely popular.

74

QUESTIONNAIRE About FACTORS INFLUENCING LIFE INSURANCE

PURCHASE DECISIONS & CUSTOMER SATISFACTION SURVEY w.r.t
AVIVA LIFE INSURANCE IN NEW DELHI

1). Do you think that Insurance is important?

Yes

{ }

No

{ }

2). Do you have any insurance policy?

Yes

{ }

No

{ }

3). which insurance policy do you have?

Life

Non Life {

Both

4). Do you know about Aviva Life Insurance?

Yes

{ }

No

{ }

75

5). Can you rank these in terms of importance?

(5) Most Important, (4) Important, (3) Necessary, (2) Not Important, (1) Least
Important
Life

{ }5

{ }4

{ }3

{ }2

{ }1

Auto

{ }5

{ }4

{ }3

{ }2

{ }1

Property

{ }5

{ }4

{ }3

{ }2

{ }1

Fire

{ }5

{ }4

{ }3

{ }2

{ }1

Theft

{ }5

{ }4

{ }3

{ }2

{ }1

Any Others { } 5

{ }4

{ }3

{ }2

{ }1

(Pls. Specify)

6). in your Opinion, Insurance is an instrument for

a. Saving Taxes
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

b. Safe Investment
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

c. Risk Management
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

d. Greater Returns
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

e. Protection
{ } Strongly Agree { } Agree { } Indifferent { } Disagree { } Strongly Disagree

76

7). Do you have insurance from any Private Player?

Yes

{ }

No

{ }

8). Are you aware as to how many private Life Insurance Companies have set up
the operations in the country? If yes please count them.
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

9). which companies insurance policy you prefer the most (rank them)?
a)

Aviva

b)

L.I.C

c)

ICIC Prudential

d)

OM Kotak Mahindra

e)

HDFC Standard Life

f)

Any Other ______________________ (Please Specify)

10). Are you aware of any Act Passed for Insurance?

Yes

{ }

No

{ }

77

11). Do you know anything about IRDA (Insurance Regulatory & Development
Authority)?
Yes

{ }

No

{ }

12). for how many years do you have insurance policy?

a)

<5 years

b)

5 10 years {

c)

10 15 years

d)

Any Other ______________________ (Please Specify)

13). what do you think are the benefits of insurance cover?

a)

Cover Future Uncertainty

b)

Tax Deductions

c)

Future Investment

d)

Any Other ___________________ (Please Specify)

14). which feature of your policy attracts you to buy it (rank them)?
a)

Low Premium

b)

Larger Risk Coverance {

c)

Money Back Guarantee

d)

Reputation of Company {

e)

Easy Access to Agents

f)

Any Other ______________________ (Please Specify)

78

15). Are you employed?

Yes

{ }

No

{ }

16). your monthly house hold income?

a)

<10,000

b)

10,000 20,000

c)

20,000 30,000

d)

30,000 40,000

Name:
Age:
Qualification:
Ph no:

79

BIBLIOGRAPHY
BOOKS
C.R Kothari, Research Methodology
M. N. Mishra, Principles of Insurance
Nalini Trivedi and Paul, Insurance Theory and Practice
R. K. Trivedi, Investment Prospects

INTERNET
http://www. avivaindia.com
http://www.iloveindia.com
http://www.irdaindia.org
http://indianinsurance.org/blog/insurance-companies/details-of-aviva-lifeinsurance/

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