Professional Documents
Culture Documents
For
By
Rahul Verma
C-41
In partial fulfillment for the award of the degree
Post Graduate Diploma in Business Management
(2009-11)
1
SUMMER TRAINING REPORT ON
Of
ACKNOWLEDGEMENT
2
I would like to express great gratitude to various people of New Delhi Institution
of Management, for encouraging me to do the project. I would like to thanks my
company mentor Mr. KULDEEP and my faculty mentor Ms. SHWETA
BHATNAGAR for their valuable guidance and support in the project.
In the last not least I express my profound gratitude to the staff of Sundaram
Finance Ltd for their support and empathy.
RAHUL VERMA
C-41
DECLARATION
3
I was in regular contact with the nominated guide and contacted five times for
discussing the project.
Rahul Verma
Faculty’s comments:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
TABLE OF CONTENTS
1. Executive summary 6
2. Company’s profile 7
4
4. Objective of study 15
7. Regulatory Acts 27
9. SWOT analysis 39
12. Limitations 78
13. Conclusions 79
14. Recommendation 80
15. Appendix 81
16. Bibliography 83
EXECUTIVE SUMMARY
Therefore what this has led to is the flooding of the life insurance market with a
number of private players which in collaboration with recognized foreign
companies promises to deliver the best of services at the lest price. All these
companies are trying to grasp the maximum of market share in life insurance
sector.
The methodology for carrying out the project was very simple that is through
primary data and secondary data obtained through various mediums like survey
through questionnaire, facts sheet of the funds, the internet, Business magazines,
Newspapers, etc the analysis of funds has been done with project to its various
parameters
SUNDARAM HISTORY
The Company was incorporated in 1954, with the object of financing the
purchase of commercial vehicles and passenger cars. The company was started
with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972. The
6
Company's shares were listed in the Madras Stock Exchange in 1972 and in the
National Stock Exchange in January 1998.
Subsequently, the equity shares of the Company have been delisted from Madras
Stock Exchange Limited (MSE) with effect from January 27, 2004, in
accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary
delisting.
7
He was not only deeply involved in negotiations with foreign collaborators for the
manufacture of quality auto components, but also in financial planning and
project financing. His financial acumen was always regarded highly, not just in
the TVS group, but outside as well. He served on the Government's Direct Taxes
Advisory Committee, and the study Group on Road Transport Financing among
others.
For Mr.Santhanam, quality was paramount. He ensured that his auto component
distribution companies provided transport operators genuine and quality products
at fair prices.
He was also the founder chairman of trade associations such as the Federation of
Automobile Dealers' Association and the South India Hire Purchase Association.
He was an ardent supporter of sports, especially football, cricket and tennis. In the
late 1940s he promoted TVS Greens, which had several leading national football
players. A keen tennis player himself, he sponsored several leading players
during the early stages of their career. He was often spotted at Wimbledon during
the tennis fortnight cheering on India's maestro, Ramanathan Krishnan.
8
managed by it stand testimony of his keen interest in charitable causes.
"Work was worship for him," according to officials in the TVS Group. "His
number sense was incredible," said a ranking official of Sundaram Finance, who
had worked with him closely. He knew his principal employees by name and
qualification. He kept himself updated on the happenings in the group companies
and attended meetings of the Sundaram Finance Board.
Even in early 1950s, he had understood the need for a good road infrastructure.
"He tirelessly worked for the uplift of transport operators," Mr.Srinivasaraghavan
said, and pointed to the travels Mr.Santhanam had undertaken across the country
often sipping tea with the drivers.
9
Birth of Sundaram Finance
10
Limited, a joint venture with Royal & Sun Alliance Plc, for
Non-Life Insurance
11
Board of Directors:
Chairman:
Sri S Viji
Directors:
Sri S Ram
Sri S Narayanan
Sri T R Seshadri
Sri S Ravindran
Sri S Prasad
Sri Aroon Raman
Sri Srinivas Acharya
Managing Director:
Sri T T Srinivasaraghavan
12
Company Secretary:
Compliance Officer:
• “Second Best Tax Payer” in the category of Private Sector Company for
Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax
Department, Tamil Nadu.
13
• “The Best Financier of the New Millennium 2000” to Shri. G K Raman,
Managing Director, from the All India Motor Transport Congress.
Main objective of the project is to find out the market potentiality of Life
Insurance. Project is all about Analysis on Life insurance, how many private sector
public sector company’s in Insurance and customer first preferences for Insurance.
Nowadays all the insurance companies in India are trying to establish themselves
in the competitive market. They are introducing innovative marketing strategies to
survive in the market. Many other private companies are looking to enter in the
Indian Insurance market.
14
Introduction to life Insurance
Life insurance offers a way to replace the loss of income
that occurs when someone dies (usually the person who produces the majority of
income in a family situation). It is a contract between you as the insured person
and the company or "carrier" that is providing the insurance. If you die while the
contract is in force, the insurance company pays a specified sum of money free of
income tax — "cash benefits" — to the person or persons you name as
beneficiaries.
Life insurance: Purchase policy; the insurance company promises to pay a lump
sum at the time of the policy holder’s death, or sometimes while they are still alive.
Purpose of life insurance: Protect someone who depends on you from financial loss
related to your death.
15
➢ Your premium is based on your life expectancy and the projections for
the payouts for persons who die.
16
➢ Do premiums or benefits vary from year to year?
➢ How much cash value builds under the policy?
➢ Are premiums, benefits or interest rates guaranteed or subject
➢ To change by the company?
➢ What is the effect of interest on money paid and received at
➢ Different times on the policy?
17
➢ The “Family Need” Method:
○ More thorough than the first three because it also considers employer
provided insurance, Social Security benefits, and income and assets.
18
TERM LIFE INSURANCE
➢ Protection for a specified period of time.
➢ If you stop paying premiums, coverage stops.
➢ A renewability option means that at the end of the term you can renew
the policy without having a physical.
➢ Conversion option allows you to exchange your term policy to a whole
life policy without having a physical.
➢ With decreasing term insurance your premium stays the same, but the
amount of coverage decreases as you age.
A term insurance policy is a pure risk cover for a specified period of time.
What this means is that the sum assured is payable only if the policyholder dies
within the policy term. For instance, if a person buys Rs 2 lakh policy for 15-years,
his family is entitled to the money if he dies within that 15-year period.
What if he survives the 15-year period? Well, then he is not entitled to any
payment; the insurance company keeps the entire premium paid during the 15-year
period.
1) Traditional whole life insurance policy- gives you a guaranteed minimum rate
of return on your cash value portion.
3) Single-premium- is for someone who has a large sum of money and would like
to purchase a policy up front. Like other whole life insurance options, single-
premium whole life insurance accrues cash value and has the same tax shelter
on returns.
20
Provides a permanent sum of money (called a face amount or death benefit) to
your beneficiaries- even if you die before the maturity date of the policy. OR it will
pay you if you live when the policy pays out (endows).
This is similar to whole life insurance, except: if used before the endowment
period, the life insurance ends and the face value becomes a living benefit.
Another area where they differ is with the period of time when it matures. A whole
life insurance policy is generally set up to mature at age 100. But with an
endowment you can pay the premiums well before the final date, for a limited
period of time, or in a lump sum; and the cash value builds up faster since the
funds are intended to be used while the insured is alive. But the premium is
considerably more expensive than with an ordinary straight life insurance policy.
The sooner a policy endows, the higher the premium will be. The endowment
period can be set for ten years, twenty years or to age 65.
21
Any resident of India who is above 18 years of age can possess ULIP. People
who are less than 55 years and 6 months of age can join the plan for 10 years
and those less than 50 years and 6 months can join for 15 years. In this plan
premium is payable half yearly. This amount is used to pay a small premium to
the Life Insurance Corporation and the rest is invested in units which earns an
income and is re-invested every year. The extent of life insurance cover is equal
to the target amount secured under the plan.
It wasn’t too long back when the good old endowment plan was the preferred way
to insure oneself against an eventuality and to set aside some savings to meet one’s
financial objectives. The traditional endowment policies were investing funds
mainly in fixed interest Government securities and other safe investments to ensure
the safety of capital. Thus the traditional emphasis was always on security of
capital rather than yield. However, with the inflationary trend witnessed all over
the world, it was observed that savings through life insurance were becoming
unattractive and not meeting the aspirations of the policyholders.
The policyholder found that the sum assured guaranteed on maturity had really
depreciated in real value because of the depreciation in the value of money. The
investor was no longer content with the so called security of capital provided under
a policy of life insurance and started showing a preference for higher rate of return
on his investments as also for capital appreciation. It was, therefore found
necessary for the insurance companies to think of a method whereby the
expectation of the policyholders could be satisfied. The object was to provide a
hedge against the inflation through a contract of insurance. Decline of assured
return endowment plans and opening of the insurance sector saw the advent of
ULIPs on the domestic insurance horizon. Today, the Indian life insurance market
is riding high on the unit linked insurance plans.
Features:
22
Unit linked insurance plans (ULIPs) are insurance plans that combine the benefit
of investment with insurance. They give the investor an option to put a part of their
premium in various investment portfolios and derive the benefits depending upon
the performance of the funds chosen by them. ULIPs were launched at an
opportune time when stock markets had just taken off. Being market- linked, they
were major beneficiaries of the secular rise in stock markets.
ULIPs have gained high acceptance due to the attractive features they offer. These
include:
1. Flexibility
➢ Flexibility to choose Sum Assured.
➢ Flexibility to choose premium amount.
➢ Option to change level of Premium even after the plan has started (Top up
facility).
➢ Flexibility to change asset allocation by switching between funds.
2. Transparency
➢ Changes in the plan & net amount invested are known to the customer.
➢ Convenience of tracking one’s investment performance on a daily basis.
3. Liquidity
➢ Option to withdraw money after few years (comfort required in case of
exigency).
➢ Low minimum tenure.
➢ Partial / Systematic withdrawal allowed
4. Fund Options
➢ A choice of funds (ranging from equity, debt, cash or a combination).
➢ Option to choose fund mix based on desired asset allocation.
23
Traditionally, endowment plans have invested in government securities, corporate
bonds and the money market. ULIPs however, have a broader choice. They invest
across the board in stocks, government securities, corporate bonds and money
market instruments. Of course, within a ULIP there are options wherein equity
investments are capped. The common types of funds available in ULIPs are Bond
Fund, Protector Fund, Secure Fund, Balanced Fund, Growth Fund, Index Fund,
and Enhancer Fund. Depending on one’s risk appetite one can choose the fund.
However the investment risk is borne by the investor.
The common type of charges, fees and deductions in ULIPs are Premium
allocation charges, Mortality charges, Fund management charges,
Policy/administration charges, Surrender charges, Fund switching charges and
Service tax.
Insurance companies are required to declare the NAV of various ULIPs on a daily
basis. The movement of NAV enables the policy holder to assess the performance
of his investment and accordingly make intervention in the form of switches,
withdrawal and top-ups. After opening up of the insurance sector, Unit-linked
insurance policies (ULIPs) have become increasingly popular.
Analysis of figures for the last three years indicates the growth pattern of unit
linked business.
24
Unit Linked Business (%) Non-linked Business (%)
25
➢ The increase in the cash value of the policy reflects the interest earned on
short-term investments.
REGULATORY ACTS
A number of acts govern the insurance sector -
26
Government ordinance. The Life Insurance Corporation Act, 1956 effective from
1.9.1956 was enacted in the same year to, form Life Insurance Corporation after
nationalization of the 245 companies (both Indian and foreign origin) into one
entity.
27
➢ The company's sole purpose is to carry on life insurance business or general
insurance business or reinsurance business.
➢ The minimum paid up equity capital for life or general insurance business is
100crores
➢ The minimum paid up equity capital for carrying on reinsurance business has
been prescribed as 200crores
(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
28
(D) Specifying the code of conduct for surveyors and loss assessors
(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
29
(M) Adjudication of disputes between insurers and intermediaries or insurance
intermediaries
(P) Specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector
30
➢ Uses the accumulated cash value to pay the premium if you do not pay it
during the grace period.
➢ A rider to a policy modifies the coverage by adding or excluding
conditions or altering benefits.
➢ Waiver of premium disability benefit.
➢ Accidental death benefit - double indemnity.
➢ Guaranteed insurability option.
➢ Cost of living protection.
➢ Accelerated benefits, also called living benefits, pay to those who are
terminally ill before they die.
➢ Second-to-die option, also called survivorship, insures two lives.
31
LIST OF INSURANCE COMPANIES IN INDIA:
Following is the list of all LIFE & GENERAL INSURANCE COMPANIES
granted permission by IRDA.
32
DLF Pramerica Life Insurance Co. Ltd www.dlfpramerica.com
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com
2. Underwriters – They are the people involved in the checking of the data
mentioned by an individual in the policy. They also conduct a health check.
33
After this they offer various policies based on the outcomes of these checks.
They constitute 1.5% of the total people in the process.
3. Sales People – The Major chunk of people lies in the sales. They are the
people who have a direct contact with the actual customer and try to
convince them to purchase a policy explaining the various feature of the
policy. They constitute the most, which is 98% of the total people involved
in the process.
Life is full of surprises. Unexpected events that strike without warning can disrupt
the smooth rhythm of life. You must be prepared at all times. As the primary
earning member, you need to make sure that your family is never lacking in
anything even if you are taken away from them forever. Do your best today to
ensure that your family can always enjoy a comfortable lifestyle. In double income
families, both spouses should get adequate life covers especially if there are
dependent children involved. We have plans that guarantee maximum protection at
a low cost.
Children Plans:
Your parenting is perfect but is your planning adequate? Are you thinking beyond
the immediate to the future, about higher education and professional courses, in
India and abroad? Many children are keen to pursue unconventional careers. Are
you in tune with their aspirations and passions? As parents you would never let
money come in the way of your children and the fulfillment of their true potential.
34
Our plans will help build the corpus that allows your children to dream big and
soar high.
Investment Plans:
Building a nest egg is about aggregating surplus amounts regularly to allow them
to grow into a sizeable sum. Investments should be aligned to specific, long-term
goals. Luxury car, foreign holiday or dream house, create your own wish list and
make it come true. Your dreams are in your hands. Every move that you make
today will bring you a step closer to your goals. Our Investment Plans offer the
dual benefit of protection and market-linked returns with the flexibility to choose
the premium and determine the market exposure.
Retirement Plans:
Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You will
never miss your salary cheque or be constrained by rising inflation. Even as you
work hard to make a better today, it is up to you to create a superior tomorrow. If
you want to sustain your current lifestyle even after you stop working, make that
money work for you. Our Retirement Plans will keep you comfortable and content,
and let you live the life you deserve.
Health Plans:
Do you know the cost of healthcare has climbed faster than inflation? Medical
costs can be a big drain on finances. A medical crisis can strike anyone, anytime
and may even force an individual to dip into savings to meet these sudden and
steep costs. Such an eventuality could delay or destroy a cherished financial goal.
No wonder, health is wealth. The health of every member of the family is precious
and you need to safeguard it as a priority. Use our Health Plans to make sure your
family stays fit and fine.
35
Savings Plans:
Is your money working for you? Clearly not, if it is lying idle in multiple bank
accounts. We will instill the discipline of investment through force of habit as you
park your money for protection and growth to meet your needs over your lifetime.
Choose a plan that matches your needs and budget. Our dual benefit saving plans
recognize your need for all round financial protection, and include a life cover that
will protect you till the last day.
Most people desire a carefree life. They want to be happy and comfortable at all
times. But needs keep evolving and you must always be one step ahead. Our
Strategic Products Plans will meet your special needs and are available through
additional distribution channels. You can choose a plan to meet the planned events
and unforeseen incidents in your life.
Group Plans:
People are the most valuable asset of any organization. Organizations have to
innovate newer forms of compensation to retain talented employees. Pay and perks
are all very fine but an organization needs to show employees that it cares.
36
Ensuring the financial wellbeing of employees and their families will earn an
organization their enduring trust and loyalty. Our Group Plans offer a three-in-one
advantage, as they are a powerful tool for motivation, reward and retention, in
these times of high attrition.
PAYMENT OPTIONS
Premium Payment Options Customers - Policy Renewals Options
Renewing an insurance policy has never been so easy. Choose from any of the 10
options listed below to pay your premium. We will send the premium receipt to
your mailing address.
The Ways of
making
Premium
Payments
SWOT ANALYSIS
The SWOT analysis of Insurance sector is as follows:-
1. Strength-Very good policies of life coverage.
2. Weaknesses:-Unable to convince the people about the products. There are not
much advisors for the insurance companies
3. Opportunities:-Untapped rural sector and small towns
37
4. Threats:-growing competition from larger MNC's.
RESEARCH METHODOLOGY
Research is an art of scientific and systematic search of pertinent information on a
specific topic. In fact research is an art of scientific investigation. The advance
learner’s dictionary of current English lay down the meaning of research as “a
careful investigation or inquiry especially through search for new facts in any
branch of knowledge. Redman and Mory define research as “systematized effort to
38
gain nee knowledge”. Some people consider research as a movement, a movement
from the known to unknown. It is actually a voyage of discovery.
RESEARCH DESIGN:
Research type applied over here is Exploratory Research because the main purpose
of such studies is that of formulating a problem for more precise investigation the
working hypothesis from an operational point of view. The major emphasis in such
studies is on the discovery of ideas and insights.
➢ Primary Data
➢ Secondary Data
Primary Data:
Primary data arte those which are collected afresh for the first time, and thus
happen to be original in character.
Secondary data:
39
Secondary data are those have already been collected by someone else and which
have already been passed through the statistical process.
For the purpose of our study I have used both primary data and secondary data.
This method of data collection is quite popular, particularly in case of big
enquiries, as the customer himself/herself becomes an advisor so his /her point of
view is must this can be obtained only with primary data
The area of sampling is Delhi & Ghaziabad. The sample size is 100 which include
the Agent & Advisors of Sundaram Finance Ltd.
TABLE 4.1
RESPONDENTS PROFILE OF AGE
40
AGE(In years) Frequency/percentage
25-35 4
35-45 25
45-55 66
More than 55 5
Total 100
(Source: Primary Data)
Table 4.1 shows, among the 100 sample respondents, the majority of 66% of
the respondents fall in the age group of 45-55 years. Another 25% fall in the
category of 35-45 years. There are 5% of the respondents who fall in the age
group of above 55 years, while the remaining 4% are in the age group of 25-
35 years. Thus, from the analysis it can be concluded that the majority (66%)
of respondents fall in the age group of 45-55.
TABLE 4.2
GENDER PROFILE OF RESPONDENT
Gender Frequency/percentage
Male 73
Female 27
Total 100
(Source: Primary Data)
Table 4.2 shows, the 100 sample respondents, the majority of 73% of the
respondents are Male, while the remaining 27% are female. Thus, from the
analysis it can be concluded that the male respondents constituted the major
position (73%)
41
TABLE 4.3
MARITAL STATUS OF RESPONDENTS
Marital Status Frequency/ Percentage
Married 99
Unmarried 1
Total 100
(Source: Primary Data)
Table 4.5 shows, among the 100 sample respondents, the majority (99%) of
the respondents are married while the remaining 1% is unmarried among the
respondents. Thus, from the analysis it can be concluded that the majority
(99%) of respondents who are married.
TABLE 4.5
ANNUAL INCOME LEVEL OF RESPONDENTS
Frequency/ percentage
Annual income
Less Than 180000 27
180000-300000 50
300000-420000 14
More than 420000 9
Total 100
(Source: Primary Data)
Table 4.5 shows, out of 100 sample respondents, the majority 50% of the
respondents earn annual income between 180000-300000.Another 27% of
respondents are less than 180000. There are 14% of the respondents who
earn between 300000-420000, the remaining 9% among the respondents
earn above 420000. Thus, from the analysis it can be concluded that the
42
respondents who earn between 180000-300000 constituted the major
position (50%).
TABLE 4.6
AWARENESS ABOUT LIFE INSURANCE POLICIES
Awareness Frequency/ percentage
Yes 100
No 0
Total 100
(Source: Primary Data)
As it could be seen in table 4.6 among the 100 sample respondent all of them
were aware of the life insurance policies, (i.e.) 100%. Thus from the analysis
it can be concluded that 100% of respondents are aware of the life insurance
policies.
43
TABLE 4.7
SOURCE YES NO
Agent 85 15
Employer 15 85
Press 24 76
Relatives 10 90
T.V 37 63
Internet 10 90
Bankers 21 79
Brokers 4 96
Friends 23 77
Mobile 3 97
SOURCE OF INFORMATION
44
(Source: Primary Data)
As it can be seen in table 4.7, among the 100 sample respondent, it is clear
that most of the respondents came to know about the insurance through
agents (85%) and the second highest source are the T.V (37%). None of the
respondents have come to know about the insurance through mobile. Thus,
from the analysis it can be concluded that 85% of the respondents came to
know about insurance polices through agents.
FIGURE 4.1
CHART SHOWING SOURCE OF INFORMATION
45
100
Rows
YES
NO
75
respondent
50
25
0
A GE NT Cou nt RELA TIVES Co unt BANKE RS Count M OBILE Co unt
EMP LO YER Co unt T V Cou nt B RO KERS Coun t
P RESS Cou nt INT E RNE T Cou nt FRIE NDS Count
source
TABLE 4.8
AWARENESS ABOUT THE INSURANCE COMPANY
46
Company name Yes No
LIC 100 0
Birla 26 74
HDFC 75 25
Bajaj 27 73
ICICI 55 45
SBI 55 45
Sriram 18 82
Kotak 6 94
Aviva 3 97
Reliance 12 88
Tata AIG 19 81
Metlife 0 100
Max Newyork 5 95
Sahara 3 97
Barathi 0 100
ING Vysya 16 84
(Source: Primary Data)
As it can be seen in tab le 4.8 among the 100 sample respondent, it is clear
that 100% of the respondents are aware of LIC. And among the private
players HDFC has ranked first (75%) and followed by ICICI (55%), BAJAJ
(27%), BIRLA (26%). None of the respondent has come to know about
47
Metlife and Max Barathi AXA life insurance. Thus most of the respondents
are aware of LIC and in the private sector HDFC Standard Life insurance.
FIGURE
AWARENESS OF INSURANCE COMPANY
O THER Rows
YES
NO
S HRIRA M LIFE
S BI LIFE
compan ies
B AJA J ALL IA NZ
B IRLA SUNLIFE
LIC
0 25 50 75 100
respondent
48
TABLE 4.9
Purpose Yes No
tax saving 57 43
investment 38 62
life risk 46 54
regular returns 22 78
health maintenance 19 81
retirement benefits 6 94
Others 1 99
PURPOSE OF TAKING POLICIES
49
policies. Thus from the analysis it can be concluded that most of the
respondents are preferred to take policies for the purpose of Tax Savings.
FIGURE 4.3
PURPOSE OF TAKING POLICIES
O THERS Co u nt Rows
YES
NO
RET IRE ME NT B ENE FIT S Co un t
INV E ST ME NT Cou n t
T AX SA V ING Co un t
0 25 50 75 1 00
RESPONDENT
50
TABLE 4.10
AWARENESS OF THE POLICIES
51
Policies Name Yes No
Endowment 83 17
Whole life 41 59
Money back 84 16
With profit 24 76
Joint life 30 70
Children's 41 59
Convertible 2 98
Without profit 2 98
Variable Insurance 0 100
Annuity policy 7 93
Handicapped 2 98
policy 24 76
Retirement policy 36 66
Salary saving 18 82
scheme
ULIP
Table 4.10, shows among the 100 sample respondents, 84% of the
respondent are preferred money back policy and 83% of respondent are
52
preferred endowment policies. None of the respondents are preferred to
Variable insurance, without profit policy and handicapped policy. Thus from
the analysis it can be concluded that most of the respondents are preferred to
take money back and endowment policies.
FIGURE 4.4
AWARENESS OF THE POLICIES
M ONEY BA CK P OL ICY Co u n t
0 25 50 75
RESPONDENT
TABLE 4.12
PREFERRED PREMIUM PERIOD
53
Period Frequency/
Percentage
Annual 21
Half yearly 16
Quarterly 15
Monthly 48
Total 100
(Source: Primary Data)
Table 4.12 shows, among the 100 sample respondents, 48% of the
respondents preferred monthly premium payment period and 21% of the
respondents preferred annual premium payment period. Thus from the
analysis it can be concluded that 48% of the respondents preferred monthly
premium payment per annum.
FIGURE 4.6
PREFERRED PREMIUM PERIOD
54
50
40
30
48
O
A
D
N
R
P
S
E
T
20
10 21
16 15
0
ANNUAL HALFYEARLY QUARTERLY MONTHLY
PREMIUM PAYMENT PERIOD
TABLE 4.13
55
PREFERRED PREMIUM PAYMENT
Mode Frequency/percentage
Salary deduction 58
Through agent 11
By cash 7
By cheque 18
Online payment 6
Total 100
(Source: Primary Data)
Table 4.13 shows, 4.7 among the 100 sample respondents, 58% of the
respondents preferred Salary Deduction as mode of payment and 18% of the
respondents preferred cheque as the mode payment. Thus from the analysis
it can be concluded that 58% of the respondents preferred Salary Deduction
as mode of payment.
FIGURE 4.7
PREFERRED PREMIUM PAYMENT
56
60
50
40
30
58
O
R
A
D
N
E
P
S
T
20
10
18
11
7 6
0
SALARY THROUGH BY CASH BY CHEQUE ONLINE
DEDUCTION AGENT PAYMENT
MODE OF PAYMENT
TABLE 4.14
57
PREFERRED DELIVERY OF POLICY DOCUMENTS
FIGURE 4.8
PREFERRED DELIVERY OF POLICY DOCUMENTS
58
50
40
30
43
O
A
D
N
R
P
S
E
20
T
32
22
10
3
0
ONLINE BY POST THROUGH AGENT PERSONALLY AT
INSURANCE
COMAPNY'S
OFFICE
MODE OF DELIVERY
TABLE 4.15
59
PREFERRED MODE OF
SETTELEMENT
Mode Frequency/
Percentage
By cash 19
By cheque 75
On account transfer 6
Total 100
FIGURE 4.9
THE PREFERRED MODE OF SETTELEMENT
60
80
60
40
75
O
A
D
N
R
P
S
E
T
20
19
6
0
BY CASH BY CHEQUE ON ACCOUNT TRANSFER
MODE OF SETTLEMENT
Sector Frequency
Public sector 75
Private sector 25
Total 100
(Source: Primary Data)
Table 4.17 shows, among the 100 sample respondent 75% of respondents are
preferred public sector and 25% of the respondents are preferred private
61
sector. Thus from the analysis it can be concluded that 75% of respondents
are preferred public sector.
FIGURE 4.11
PREFERRED
SECTOR IN
INSURANCE
COMPANY
PUBLIC SECTOR
PRIVATE SECTOR
25
75
62
TABLE 4.20
Table 4.20 shows, among the 100 sample respondent 66% of respondents are
preferred to take policy in future and 34% of the respondents are not
preferred to take policies in future. Thus from the analysis it can be
concluded that 66% of respondents are preferred to take policy in future.
63
FIGURE 4.13
PREFERENCE
FOR FUTURE
POLICY
YES
NO
34
66
64
TABLE 4.21
65
TABLE 4.22
Company Respondent
LIC 55
HDFC 9
BAJAJ 1
ICICI 1
Total 66
(Source: Primary Data)
TABLE 4.23
66
As it could be seen in Table 4.23 among the 100 sample respondent 98% of
respondents are currently having policies and 2% of the respondents are not
having policies. Thus from the analysis it can be concluded that 98% of
respondents are currently having policies.
FIGURE 4.14
67
CURRENT POLICY
YES
NO
98
TABLE 4.24
68
HDFC 1
OTHERS 2
Total 98
(Source: Primary Data)
TABLE 4.25
NO. OF POLICIES
69
3 36
4 11
Total 98
(Source: Primary Data)
TABLE 4.26
Policies Yes No
Endowment 57 41
70
Joint Life 28 70
Whole Life 14 84
Children 50 48
Money Back 54 44
ULIP 24 74
(Source: Primary Data)
FIGURE 4.15
71
Rows
YES
75
NO
N IL
RESPONDANT
50
25
0
E NDOWME NT P OL ICY Cou n t CHILDRE N'S PO LICY Co un t
JOINT L IFE POL ICY Co u nt M ONEY BA CK P OL ICY Cou n t
WHO LE L IFE P O LICY Co un
UNIT
t LINKE D INSURANCE P OL ICY Co u nt
POLICIES
TABLE 4.27
Purpose Yes No
Tax saving 55 42
Investment 39 59
Life risk 36 62
Regular returns 30 68
Health maintain 18 80
Retirement benefits 8 89
(Source: Primary Data)
72
Tables 4.27 among the 98 sample respondents, 59 respondents are having
policies for the purpose of tax savings and 39 respondents are having policies
for the purpose of Investment. Thus from the analysis it can be concluded that
59 respondents are having policies for the purpose of tax savings.
FIGURE 4.16
73
Rows
YES
NO
75
N IL
RESPONDANT
50
25
0
T AX SA V ING Co un t REGUL A R RET URNS Co un t
INV E ST ME NT Cou n t HEA L TH MA INT ANA NCE Co un t
L IFE RIS K COV E RA GE Cou n t RET IRE ME NT B ENE FIT S Co un t
PURPOSE
74
TABLE 4.28
Period Respondent
Annual 13
Half yearly 13
Quarterly 20
Monthly 51
One time 1
Total 98
(Source: Primary Data)
75
TABLE 4.29
Amount Respondent
< 3000 23
3000-5000 34
5000-7000 22
>9000 19
Total 98
(Source: Primary Data)
76
Limitations of Study
➢ Time limitation
➢ Research has been done only in Delhi and NCR region.
➢ Companies did not disclose their secrets data and strategies.
➢ Possibility of Error in data collection.
➢ Possibility of Error in analysis of data due to small sample size.
➢ Respondents’ error.
➢ Limited resources.
77
CONCLUSION
Life insurance is also now being regarded as a versatile financial planning
tool. Research indicates that Indians have four basic financial needs during their
life asset accumulation (such as buying a house or car), protecting their family,
securing their children’s education, and provision for their retirement.
Insurance sector is one of the most booming sectors in India. The penetration
level of insurance in India is only 2.3% when compared to 9-15% in the developed
nations. There is a huge market for the Insurance products in the future in India.
The project was very useful to the researcher to understand the life insurance
business.
RECOMMENDATIONS
78
In the modernized well advanced hi-tech approach to the customer every possible
facilities and effort to build up the confidence of the rising policy holders towards.
Insurance companies, to complete one another nothing is left to recommend. But
some recommendations that are intensely felt and highly required for insures to
sustain in the market. These are as follows:
a) More and more transparency should be ascertained between insurers and
policy holders.
b) Particularly, in the emerging boom in the insurance company, every
insurance
company should be customer centered, and well versed in the handling of
problem and grievances of the policy holders.
c) Each and Every product launched by the Insurance Company should be in
favour of increasing need of policy holders.
APPENDIX
QUESTIONNAIRE
79
Ques1. Do you have any Life Insurance policy?
YES ( ) NO ( )
Ques2. Are you aware about Life insurance product or will prefer to purchase the
Life insurance product?
LIC ( ) ICICI ( )
SBI Life ( ) HDFC ( )
TATA AIG ( ) ANY OTHER ( )
Ques3. In which sector do you invest?
Public sector ( ) Private sector ( )
Ques4. Term of your insurance policy?
Less than 5 years ( ) 5-10 years ( )
10-20 years ( ) Any other ( )
Ques5. What do you think are the benefits of Insurance policy?
Cover future uncertainties ( ) Tax savings ( )
Investment ( ) Risk cover investment ( )
Ques6. Which feature of life insurance product will you consider while buying?
Money back policy ( ) Larger risk coverage ( )
Low premium ( ) Company’s creditability ( )
Easy access of agent ( )
Ques7. Are you satisfied with your life insurance policy?
Yes ( ) No ( )
80
Newspaper ( ) Agent ( )
Advertisement ( ) Mouth of spread ( )
THANK YOU
NAME …………………………………………………………………….
AGE ......…………..
ADDRESS …………………………………………………………………….
CONTACT NO. …………………………………………………………………….
E-MAIL ADDRESS …………………………………………………………………….
OCCUPATION ……………………………………………………………………..
BIBILOGRAPHY
www.irdaindia.org
www.licindia.in
www.scribd.com
www.wikipedia.org
81
www.sundaramfinance.com
82