INTRODUCTION

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or uncertain
loss.

An entity which provides insurance is known as an insurer, an insurance company, an

insurance carrier or an underwriter. A person or entity who buys insurance is known
as an insured or as a policyholder. The insurance transaction involves the insured
assuming a guaranteed and known - relatively small - loss in the form of payment to
the insurer in exchange for the insurer's promise to compensate the insured in the
event of a covered loss. The loss may or may not be financial, but it must be reducible
to financial terms, and usually involves something in which the insured has an
insurable interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insurer will compensate the insured.
The amount of money charged by the insurer to the policyholder for the coverage set
forth in the insurance policy is called the premium. If the insured experiences a loss
which is potentially covered by the insurance policy, the insured submits a claim to
the insurer for processing by a claims adjuster. A mandatory out-of-pocket expense
required by an insurance policy before an insurer will pay a claim is called a
deductible (or if required by a health insurance policy, a copayment). The insurer may
hedge its own risk by taking out reinsurance, whereby another insurance company
agrees to carry some of the risks, especially if the primary insurer deems the risk too
large for it to carry.

TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of present day
economic system. The different type of insurance have come about by practice with in
insurance companies, and by the influence of legislation controlling the transacting of
insurance business, broadly, insurance may be classified into the following categories:
1. Classification from business point of view
a) Life insurance, and

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 b) General insurance

2. Classification on the basis of nature of insurance

a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance

MARKETING
Marketing is a social and managerial process by which individuals and group obtain
what they need and want through creating, offering and exchanging products of value
with others

Marketing Management: Marketing Management is the process of planning and

executing the conception, pricing, promotion and distribution of individual and
organizational goals.

Marketing Research: Marketing research is the systematic and objective search for,
and analysis of information relevant to the identification and solution of any problems
in the field of marketing.

Consumer Research: Consumer research is the methodology used to study consumer

behaviour.

Consumer Behaviour: Consumer behaviour is the study of how individuals make

decisions to spend their available resources [time, money, efforts] on consumption
related items.
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Market Segmentation: Market segmentation is the process of dividing a market in
the distinct subsets of consumer with common needs or characteristics and selecting
one or more segments to target with distinct marketing mix.

Positioning: Positioning is the act of designing the company’s offering and image so
that they occupy a meaningful and distinct competitive position in the target
consumer’s mind.

Perception: Perception is the process by which an individual selects, organizes, and

interprets information input to create a meaningful picture of the world. For a
marketer to influence a motivated buyer to buy their products rather than competitors
they must be careful to take the perception process into account while designing their
marketing campaigns. Perception therefore influence what product consumer buys.

Attitude: An attitude is a person enduring favorable or unfavorable evaluation,

emotional feeling and action tendencies towards some object or idea.

Attributes: Attributes are the strengths and weaknesses of a brand that create
attitudes and are used by consumers to choose between brands that are relatively
similar or functionally equivalent.

Values: A value is a concept of the desirable. An internalized standard of evaluation a

person possession. This standard determines or guide an individual evaluation of the
many objects encountered in everyday life.

Brand: A brand is a name, term, sign, symbol, or design or a combination of them,

used to identify the goods or services of one seller or group of seller and the
differentiate them from those of competitors.

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 IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by

many people. But it also serves many other important economic and societal
functions. Because insurance is available and affordable, banks can make loans with
the assurance that the loan’s collateral (property that can be taken as payment if a loan
goes unpaid) is covered against damage. This increased availability of credit helps
people buy homes and cars. Insurance also provides the capital that communities need
to quickly rebuild and recover economically from natural disasters, such as tornadoes
or hurricanes. Insurance itself has become a significant economic force in most
industrialized countries. Employers buy insurance to cover their employees against
work-related injuries and health problems. Businesses also insure their property,
including technology used in production, against damage and theft. Because it makes
business operations safer, insurance encourages businesses to make economic
transactions, which benefits the economies of countries. In addition, millions of
people work for insurance companies and related businesses.

In 1996 more than 2.4 million people worked in the insurance industry in the United
States and Canada. Insurance as an investment that offers a lot more in terms of
returns, risk cover & also that tax concessions & added bonuses not all effects of
insurance are positive ones. The possibility of earning insurance payments motivates
some people to attempt to cause damage or losses. Without the possibility of
collecting insurance benefits, for instance, no one would think of arson, the willful
destruction of property by fire, as a potential source of money.

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 NEED FOR THE STUDY

 The deeper the understanding of consumer’s needs and perception, the earlier the
product is introduced ahead of competitors, the expected contribution margin will
be greater .Hence the study is very important.

 Consumer markets and consumer buying behavior can be understood before

sound product and marketing plans are developed.

 This study will help companies to customize the service and product, according
to the consumer’s need.

 This study will also help the companies to understand the experience and
expectations of the existing customers.

 Apart from creating, manufacturing and distribution capabilities for life

insurance products, an in depth study of the consumers, their preferences and
demand for their product is very necessary for setting up an efficient marketing
network. 

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 SCOPE OF THE STUDY

This study is limited to the consumers within the limit of Tanuku. The study
will be able to reveal the preferences, needs, perception of the customers regarding
the life insurance products, It also help the insurance companies to know whether the
existing products are really satisfying the customer’s needs .

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 OBJECTIVES OF THE STUDY

 Ascertain the profile and characteristics of potential buyers.

 To have an insight into the attitudes and behaviors of customers.
 To find out the differences among perceived service and expected service.
 To produce an executive service report to upgrade service characteristics of life
insurance companies.
 To access the degree of satisfaction of the consumers with their current brand of
Insurance products.

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 METHODOLOGY OF THE STUDY

The data obtained for the study may be divided into two groups.

1. Primary Data
2. Secondary Data

PRIMARY DATA:-

Primary data are those, which are collected for the first time. Primary data is
collected by framing questionnaires. The questionnaire contained questions, which are
both open-ended and closed-ended. Open-ended questions are questions requiring
answers in the responder’s own words. Closed-ended questions are those wherein the
respondent has to merely check the appropriate answer from a list of options
available.

SAMPLE DESIGN: The process of drawing a sample from a large population is

called sampling. Population refers to the total of items about which information is
defined. Well-selected samples may reflect fairly and accurately the characteristics of
the population.

Sampling Unit: The sample unit of this survey was the customers having life
insurance policies in Tanuku.

SECONDARY DATA:-

Secondary data means data that are already available i.e. they refer to the data which
have been collected and analyzed by someone and can save both money and time of
the researcher. Secondary data may be available in the form of company records,
trade publications, libraries etc. Secondary data sources are as follows: Company
Reports Daily Newspaper Standard Textbook Various Websites

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 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning
there are several limitations, which handicapped the research.

 The time stipulated for the project to be completed is less and thus there are
chances that some information might have been left out, however due care is taken
to include all the relevant information needed.
 Due to time constraints the sample size was relatively small and would definitely
have been more representative if I had collected information from more
respondents
 It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information.

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 INDUSTRY PROFILE

History and Development of Life Insurance

Life Insurance, in its present form, came to India from the United
Kingdom with establishment of a British firm, Oriental Life Insurance Company in
Calcutta in 1818, followed by Bombay Life Assurance Company in 1823, the Madras
Equitable Life Insurance society in 1829 and Oriental Government security Assurance
Company in1874. Prior to 1871, Indian Lives were treated as sub-standard and
charged an extra premium of 15% to 20%. Bombay Mutual Life Assurance Society,
an Indian insurer which came into existence in 1871 was the first to cover Indian lives
at normal rates. The Indian life Assurance Companies Act, 1912 was the first
statutory measure to regulate life insurance business. Later, in 1928, the Indian
Insurance Companies Act was enacted, to enable the government to collect statistical
information about both life and non-life insurance business transacted in India by
Indian and foreign insurers, including the provident insurance societies.
Comprehensive arrangements were, however, brought into effect with the enactment
of the Insurance Act, [Link] 1956, 154 Indian insurers, 16 non-Indian insurers and
15 provident societies were carrying online insurance business in India. On 19th
January 1956, the management of the entire life insurance business of 229 Indian
insurers and provident insurance societies and the Indian life insurance business of 16
non-Indian Life insurance companies then operating in India, was taken over by the
central Government and then nationalized on 1stSeptember 1956 when the Life
Insurance Corporation came into existence. With largest number of life insurance
policies in force in the world, Insurance happens to be a mega opportunity in India.
It’s a business growing at the rate of 15-20 per cent annually and presently is of the
order of Rs 450 billion. Together with banking services, it adds about 7 per cent to
the country’s GDP. Gross premium collection is nearly 2 percent of GDP and funds
available with LIC for investments are 8 per cent of GDP.

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 Yet, nearly 80 per cent of Indian population is without life insurance cover
while health insurance and non-life insurance continues to be below international
standards. And this part of the population is also subject to weak social security and
pension systems with hardly any old age income security. This it is an indicator that
growth potential for the insurance sector is immense. A well-developed and evolved
insurance sector is needed for economic development as it provides long-term funds
for infrastructure development and at the same time strengthens the risk taking ability.
It is estimated that over the next ten years India would require investments of the
order of one trillion US dollar. The Insurance sector, to some extent, can enable
investments in infrastructure development to sustain economic growth of the
country .INSURANCE AND BUSINESS ENVIRONMENT Insurance is considered
as one of the important segment of the economy for its growth and development. This
industry provides long term funds which are essential for the growth and development
of the nation .so the growth of insurance industry largely depends up on the
environment in which they exists. Here I would like to mention about Indian business
environment and their impact on insurance sector. There are two type of environment
which affect the business one is environment which is internal to the organization
(internal environment) and the other one which is external to the organization
(external environment). Internal environment includes management, technology,
competitors, employees, shareholders, policyholders, marketing intermediary etc. The
external environment of insurance business has been classified in four parts, namely
legal, economic, financial, and commercial. let us discus them in detail by taking one
by one

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

(IRDA)
The Malhotra Committee felt the need to provide greater autonomy to
insurancecompanies in order to improve their performance and enable them to act as
independentcompanies with economic motives. For this purpose, it had proposed
setting up anindependent regulatory body- The Insurance Regulatory and
Development [Link] on the Malhotra committee report in April 2000 IRDA
was incorporated. Sincebeing set up as an independent statutory body the IRDA has
put in a framework ofglobally compatible regulations. Section 14 of the IRDA Act
1999, lays the duties, power and functions of the authority .the authority shall have
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the duty to regulate, promote and ensure orderly growth of the insurance business and
reinsurance business. Reforms and Implications The liberalizations of the Indian
insurance sector has been the subject of much heated debate for some years. The
sector is finally set to open up to private competition.

The Insurance Regulatory and Development Authority bill will clear the way
for private entry into insurance, as the government is keen to invite private sector
participation into insurance. To address those concerns, the bill requires direct
insurers to have a minimum paid-up capital of Rest. 1 billion, to invest policyholder’s
funds only in India; and to restrict international companies to a minority equity
holding of 26 percent in any new company. Indian Promoters will also have to dilute
their equity holding to 26 percent over a 10-year period. Over the past three year,
around 30 companies have expressed interest in entering the sector and many foreign
and Indian companies have arranged alliances. Whether the insurer is old or new,
private or public, expanding the market will present challenges. A number of foreign
Insurance Companies have set up representative offices in India and have also tied up
with various asset management companies. Some of the Indian companies, which
have tied up with International partners, areIndian Partners International Partners
Bombay Dyeing General Accident, UKTata American Int. Group, USDabur Group
Liberty Mutual Fund, USICICI Prudential, UKSundaram Finance Winterthur
Insurance, SwitzerlandHindustan Times Commercial Union, UKRanbaxy Cigna,
USHDFC Standard Life, UKCK Birla Group Zurich Insurance, SwitzerlandDCM
Shriram Royal Sun Alliance, UKGodrej J Rothschild , UKM A Chidambaram Met
LifeCholamandalam Guardian Royal Exchange, UKSK Modi Group Legal and
General, Australia20th Century Finance Canada LifeAlpic Finance Allianz Holding,
GermanyVysya Bank INGKotak Mahindra Chubb, USThe likely impact of opening
up of India’s insurance sector is that private playersmay swamp the market.
International insurers often derive a significant part oftheir business from
multinational operations. Multinational insurers are indeed keenly interested as;
perhaps there home markets are saturated while emerging countries have low
insurance penetration and high growth rates

Type of life insurance policies

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Whole life insurance
Whole life is a form of permanent insurance, with guaranteed rates and guaranteed
cash values. It is the least flexible form of permanent insurance .
Universal life insurance
Universal life is similar to whole life, except that you can change the death benefit
(the money paid to the beneficiary when the insured person dies), the amount of
premiums and how often you pay the premiums.
Variable life insurance
Variable life insurance is the riskiest form of permanent insurance, but it
can also give you the best return for your money. Essentially, the life insurance
company will invest your insurance premiums for you. If the investments do well, the
death benefit and cash value of the policy go up. If they do poorly, they go down. Its a
little like putting your savings into the stock market. Group life insurance Many
companies allow their employees to buy group life insurance through the company.
Usually, you can get very good rates for this insurance but you have to give the
insurance up when you stop working there. For that reason, group insurance can be a
good way to buy a little extra life insurance, but it does not make sense to make it
your main policy.

There are a number of policies for specific insurance needs. Some of these include:

1. Family income life insurance. This is a decreasing term policy that provides a
stated income for a fixed period of time, if the insured person dies during the term of
coverage. These payments continue until the end of a time period specified when the
policy is purchased.

2. Family insurance. A whole life policy that insures all the members of an
immediate family -- husband, wife and children. Usually the coverage is sold in units
per person, with the primary wage-earner insured for the greatest amount.

3. Senior life insurance. Also known as graded death benefit plans, they provide for a
graded amount to be paid to the beneficiary. For example, in each of the first three to
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five years after the insured dies, the death benefit slowly increases. After that period,
the entire death benefit is paid to the beneficiary. This might be appropriate if the
beneficiary is not able to handle a large amount of money soon after the death, but
would be in a better position to handle it a few years later.

4. Juvenile insurance. This is life insurance on a child. Coverage is paid for by an

adult, usually the parents or guardians. Such policies are not considered traditional life
insurance because the child is not producing an income that needs to be protected.
However, by buying the policy when the child is young, the parents are able to lock in
an extremely low premium rate and allow many more years of tax-deferred cash value
buildup.

5. Credit life insurance. This insurance is designed to pay off the balance of a loan if
you die before you have repaid it. Credit life insurance is available for many kinds of
loans including student loans, auto loans, farm equipment loans, furniture and other
personal loans including credit cards. Credit life insurance can be purchased by an
individual. Usually it is sold by financial institutions making loans, like banks, to
borrowers at the time they take out the loan. If a borrower dies, the proceeds of the
policy repay the loan directly to the lender or creditor.

6. Mortgage insurance This decreasing term coverage is designed to pay off the
unpaid balance of a mortgage if you die before the mortgage is paid off. Premiums are
generally level throughout the term of the policy. The policy is usually independent of
the mortgage, meaning that the financial institution granting the mortgage is separate
from the insurance company issuing the policy. The proceeds of the policy are paid to
the beneficiaries of the policy, not the mortgage company. The beneficiary is not
required to use the proceeds to pay off the mortgage

7. Annuity An annuity is a form of insurance that enables you to save for your
retirement. Basically, you give the insurance company money for a certain period of
time, and then after you retire they will pay you a certain amount of money every year
until you die. There are many different forms of annuities. . Most people who buy
annuities are 55 or older

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 PROFILE OF THE ORGANISATIONS

LIFE INSURANCE CORPORATION OF INDIA

Life Insurance Corporation of India was formed in September 1956 by passing

LIC Act, 1956 in Indian parliament. On the nationalization of the life insurance in
1956, the premium rating of Oriental Government security life Assurance company
were adopted by LIC with a reduction of 5% of the tabular premium or Re. 1 per
thousand sum assured, whichever was less. This reduction was made in anticipation of
economies of scale that would emerge on the merger of different insurers in a single
entity. Life Insurance Corporation Of India - there are many things to consider as Life
Insurance Corporation of India offers various insurance products which are very
complex, but underlying this complexity is a simple fact. The building blocks for all
Life Insurance Corporation of India are (1) investment return; (2) mortality
experience; and (3) expense management; for your Life Insurance Corporation of
India

Objectives of LIC
 Spread Life Insurance much more widely and in particular to the rural areas
and to the socially and economically backward classes with a view to reaching
all insurable persons in the country and providing them adequate financial
cover against death at a reasonable cost.
 Maximize mobilization of people’s savings by making insurance-linked
savings adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best

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 advantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and collective
capacities.
 Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
 Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service
with courtesy. Promote amongst all agents and employees of the Corporation a
sense of participation, pride and job satisfaction through discharge of their
duties with dedication towards achievement of Corporate Objective.

VISION
"A trans-nationally competitive financial conglomerate of significance to
societies andPride of India “

MISSION
"Explore and enhance the quality of life of people through financial security
by providingproducts and services of aspired attributes with competitive
returns, and by renderingresources for economic development.

”Various policies offered by life insurance corporation of India are

1) Whole Life Schemes

 Whole life with profit
 Limited payment whole life
 Single Premium whole life
 Convertible whole life plan
2) Endowment Schemes
• Endowment plan with profit
• Limited payment Endowment

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 • Jeevan Mitra (Double Cover)
• Jeevan Mitra (Triple cover)
• Bhavishya Jeevan
• Jeevan Anand
• New Jana Raksha
3) Term Assurance Plan
• Anmol Jeevan
• 2 Year Term Assurance
• Covertible Term
• New Bima Kiran
4) Plan for needs of Children
• Komal Jeevan
• Jeevan Sukanya
• Jeevan Kishore
• Jeevan Balya
• Jeevan Chaya
• Marriage/educational annuity
• Deffered Endowment
5) Periodic Money Back Plan
• Jeevan Samridhi
• Jeevan Rekha Plan
• Money Back Plan
• Jeevan Surabhi
• Jeevan bharathi
6) Medical benefits linked insurance
• Asha Deep II
• Jeevan Asha II
7) For benefits to Handicapped
• Jeevan Aadhar
• Jeevan Vishwas
8) Plans to cover housing loans
• Mortagage redemption
9) Joint life plan
• Jeevan sathi
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 10) Investment plan
• Bima Nivesh Triple cover
11) Capital market linked plan
• Bima plus.

ING VYSYA LIFE INSURANCEING

Vysya Life Insurance Company Private Limited entered the private life insurance
industry in India in September 2001, and in a short span of 18 months has established
itself as a distinctive life insurance brand with an innovative, attractive and customer
friendly product portfolio and a professional advisor force. It also distributes products
in close cooperation with its sister company ING Vysya Bank through Bank
assurance. Currently, it has over 3000 advisors working from 22 locations across the
country and over 300 employees. ING Vysya Life Insurance Company is
headquartered at Bangalore and has established astrong presence in the cities of Delhi,
Mumbai, Kolkata, Hyderabad and Chennai. In addition ING Vysya Life operates in
Vizag, Vijaywada, Mangalore, Mysore, Pune,Nagpur, Chandigarh, Ludhiana and
[Link] Vysya Life has pioneered product innovations in the Indian life insurance
marketwith customer-oriented cash bonus endowment and money back products.
(ReassuringLife and Maximising Life), the first anticipated whole life product
(Fulfilling Life) andthe first Term/Critical Illness combination product (Conquering
Life). Conquering Life isan innovative term and critical illness product that has been
launched [Link] Life provides affordable term cover and critical illness
coverage for 10critical illnesses of upto 50% of the Sum Assured. ING Vysya Life
declared a bonus inSeptember 2002 of 5% (cash bonus - payable immediately) and
4% (reversionary bonus -payable at the end of the term).
The company has over 25,000 customers at the end of 2002 and has achieved a
firstpremium income of Rs. 17 crores in [Link] Vysya Life Insurance is a joint
venture between ING Insurance International BV apart of ING Group, the worlds
largest life insurance company (Fortune Global 500,2002), ING Vysya Bank, with 1.5
million customers and over 400 outlets and GMR Technologies and Industries
Limited, part of GMR Group also based in Bangalore and involved in the field of
power generation, infrastructural development and several other [Link]

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Vysya Life has a paid up capital of Rs.140 crores and an authorised capital of Rs.200
[Link] insurance products offered by the company are:
1) Protection plan
• Critical illness plan
• Endowment plan
2) Savings plan
• Endowment plan
• Child protection plan
• Money back plan.
3) Investment Plan
• Whole life plan
• Limited payment endowment plan
• Anticipated whole life plan
TATA-AIG Life Insurance
Tata-AIG Life Insurance Company is a joint venture between the Tata Group
and American International Group Inc (AIG), the leading US-based international
insurance and financial services organization and the largest underwriter of
commercial and industrial insurance in America. Its member companies write a wide
range of commercial, personal and life insurance products through a variety of
distribution channels in approximately 130 countries and jurisdictions throughout the
world. AIG’s global businesses also include financial services and asset management,
including aircraft leasing, financial products, trading and market making, consumer
finance, institutional, retail and direct investment fund asset management, real estate
investment management, and retirement savings products. TATA holds 76% shares
and AIG holds 24% shares in the total share capital of TATA AIG. Tata AIG Life
Insurance Company Ltd. "Tata AIG Life" offers a broad array of life insurance
products to individuals, associations and businesses of all sizes, with awide variety of
additional coverage to ensure our customers can find an insurance product to meet
their needs. Tata-AIG Life Insurance and Tata-AIG General Insurance, both joint
ventures between the Tata Group and American International Group (AIG), provide
life and general insurance policies and solutions to companies, institutions and
organizations across India. It is licensed to operation on 12th February 2001. TATA-
AIG life is spread over28 branch offices and 39 training offices across the country.
Tata-AIG Life offers a broad array of life insurance products and solutions to
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corporate and other organizations. These products and solutions have various value-
added benefits and options that deliver flexibility and choice to the company’s clients.
Tata AIG Life has completed its 4th year of operations and registered a Total
Premium of Rs. 497 Crores for the period April 2004 - March 2005.
The company has some 20 life insurance products with over 250 product
combinations, including endowment to term, pension to group life and credit life,
money back to whole life plans, etc. Tata-AIG Life uses different distribution
channels, including direct marketing, brokerage and banc assurance, to service client
groups in 19 Indian cities. Tata-AIG Life is the first private insurer in India to offer
group retirement schemes. Additionally, the company’s group management division
focuses on providing employee benefit solutions.
PRODUCTS
The product range of TATA-AIG Life is wide-spread across different segments. Some
of the products are mentioned below. Maha life Invest Assure Health Protector Star
Kid Shubh Life Nirvana Nirvana Plus Money Saver Plan Health First Assure Golden
Life Assure 10, 20, 30 years – Security and Growth Assure Educate at 18, 21 Assure
Career Builder Plan at 27 Assure Golden Years Plan Assure 21 Money Saver Plan
Assure 1/5/10/15/20/25 years/ to age lifelines TROP
HDFC STANDARD LIFE INSURANCE
The Partnership:HDFC and Standard Life first came together for a possible joint
venture, to enter the LifeInsurance market, in January 1995. It was clear from the
outset that both companiesshared similar values and beliefs and a strong relationship
quickly formed. In October1995 the companies signed a 3 year joint venture
[Link] this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship. The next three years were filled with uncertainty, due
to changes in government andongoing delays in getting the IRDA (Insurance
Regulatory and Development authority) Act passed in parliament. Despite this both
companies remained firmly committed to the [Link] October 1998, the joint
venture agreement was renewed and additional resource made available. Around this
time Standard Life purchased 2% of Infrastructure DevelopmentFinance Company
Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury
department to advise them upon their investments in India. Towards the end of 1999,
the opening of the market looked very promising and both companies agreed the time
was right to move the operation to the next level. Therefore, in January 2000 an
20
expert team from the UK joined a handpicked team from HDFC to form the core
project team, based in Mumbai. Around this time Standard Life purchased a further
5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard
Life agreed to participate in the Asset ManagementCompany promoted by HDFC to
enter the mutual fund market. The Mutual Fund waslaunched on 20th July 2000.
Incorporation of HDFC Standard Life Insurance Company Limited:The
company was incorporated on 14th August 2000 under the name of HDFC
StandardLife Insurance Company Limited. Company’s ambition from as far back as
October 1995, was to be the first private company to re-enter the life insurance market
in India. On the23rd of October 2000, this ambition was realized when HDFC
Standard Life was the onlylife company to be granted a certificate of registration.
HDFC are the main shareholdersin HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given StandardLifes existing investment in the HDFC Group, this
is the maximum investment allowedunder current regulations. HDFC and Standard
Life have a long and close relationshipbuilt upon shared values and trust. The
ambition of HDFC Standard Life is to mirror thesuccess of the parent companies and
be the yardstick by which all other insurancecompanys in India are [Link]
offered by the company are:
INDIVIDUAL PLAN

• With Profit Endowment Assurance

• With Profits Money Back
• Single Premium Whole of Life
• Term assurance Plan
• Loan Cover Term Assurance
• Personal Pension Plan
• Children’s Plan

GROUP PLANS
• Group Term Insurance
• Development Insurance Plan

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

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 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 Prudential was
amongst the first private sector insurance companies to begin operations in December
2000 after receiving approval from Insurance Regulatory Development Authority
(IRDA). ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the quarter ended June
30,2005 , the company garnered Rs 335 crore of new business premium for a total
sumassured of Rs 2,619 crore and wrote 111,522 policies. For the past four years,
ICICIPrudential has retained its position as the No. 1 private life insurer in the
country, with awide range of flexible products that meet the needs of the Indian
customer at every stepin [Link] offered by ICICI Prudential are

[Link] Plan
1) Smart kid
2) Life Time
3) Save ‘n’ Protect
4) Cash Bak
2. Protection plan
• Life Guard Extra Protection Through
• Riders
3. Retirement Plans
• Forever Life
• Life link pension
• Life time pension
• Reassure
4. Investment Plans
• Assure Invest
• Life Link
5. Group plans
• Group Superannuation
• Group Gratuity
• Group Term Assurance

22
OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

Established in 1985 as Kotak Capital Management Finance promoted by UdayKotak

the company has come a long way since its entry into corporate finance. It has
dabbled in leasing, auto finance, hire purchase, investment banking, consumer
finance, broking etc. The company got its name Kotak Mahindra as industrialists
Harish Mahindra and Anand Mahindra picked a stake in the company. Kotak
Mahindra is today one ofIndias leading Financial Institutions Old Mutual plc is an
international financial services group based in London with expanding operations in
life assurance, asset management, banking and general insurance. Old Mutual is listed
on the London Stock Exchange (where it is included on the FTSE 100 Index) and also
on the South African, Namibian, Malawi and Zimbabwe stock exchanges. It has 156
years of experience in the life insurance business. The Products offered by the
Company are
Individual Plan
• Kotak Endowment Plan
• Kotak Term Plan
• Kotak Retirement Income Plan
• Kotak Child Advantage Plan
• Kotak Preferred Term Plan
• Kotak Capital Multiplier Plan
• Kotak Safe Investment Plan
• Riders
• Exclusions under Riders
Group Plan
 Kotak Term Group plan
 Kotak Gratuity Group plan
 Kotak Credit Term Group plan
 RidersExclusions Under Riders
 RuralKotak Gramina Bima Yojana

MET LIFE INSURANCE COMPANY

23
MetLifeFor almost 137 years, Metropolitan Life Insurance Company has been
insuring the livesof the people who depend on them. Their success is based on their
long history of socialresponsibility, strong leadership, sound investments, and
innovative products [Link] BeginsThe origins of Metropolitan Life
Insurance Company (MetLife) go back to 1863, when agroup of New York City
businessmen raised $100,000 to found the National Union LifeandHelping and
Healing PeopleIn 1909, MetLife Vice President Haley Fiske announced that
"insurance, not merely as abusiness proposition, but as a social program" would be
the future policy of the companySupporting Country and CommunityOver the years,
MetLife has made a difference by supporting urban renewal projects andcommunity
financing. The companys social commitment and its commitment to thesecurity of its
policyholders have proven to be good [Link] Today In 2001 MetLife was
the first insurance company to establish a financialholding company with a nationally
chartered [Link] Offered by the company are
Whole Life
• Met 100 Non par
• Met 100 Gold par
• Met 100 Platinum par
Endowment
• Met Gold par
• Met Platinum par
• Met Junior par
• Met junior Non par
Money Back
• Met Sukh
• Met Junior MB
Term
• Met Mortagage Protector
• Met Riders
• Accidental death

BIRLA SUN LIFE INSURANCE COMANY LIMITED

24
Birla Sun Life Financial Services offers a range of financial services for resident
Indiansand Non Resident Indians. Brought together by two large, powerful and
reputed businesshouses, the Aditya Birla Group and Sun Life Financial , it is our aim
to offer diverse andtop quality financial services to customers. The Mutual Fund and
Insurance companiesprovide wealth management and protection products to
customers while the Distributionand Securities companies provide brokerage and
trading services for investment inequities, debt securities, fixed deposits,
[Link] is not about something going wrong. Its often about things going right.
One of thewonders of human nature is that we never believe anything can actually go
wrong. Surely, life hasits share of ifs. At Birla Sun Life however, they believe it has
its equally pleasant share of buts aswell. Birla Sun Life stand committed to help you
realize those happy moments which make a [Link] it living the same lifestyle in your
post retirement days or providing a secure future for yourloved ones, in case
something happens to [Link] life insurance products offered by the company are

Individual life
• Premium Back Term Plan
• Flexi Secure Life Retirement Plan
• Single Premium Bond
• Birla Sun Life Term Plan
• Flexi Life Line Whole Life Plan
• Flexi Cash Flow Money back Plan
Group Life
• Pro Group Term Insurance
• Group Superannuation Plan
• Group Gratuity Plan.

MAX NEW YORK LIFE INSURANCE COMPANY LTD

. Max New York Life today emerged as the countrys leading private life
insurancecompany having recorded a sum assured of over Rs 2100 crore for the
year ending March31, 2002. This was the first full year of operations for Max
New York [Link] company has sold over 64,000 policies in the last financial
year. The total annualizedfirst year premium for the financial year was over Rs 43
25
crore with the First YearPremium Income amounting to over Rs 38 crore. This has
exceeded the expectations ofthe company and the projections as submitted to
IRDA. Over 70 per cent of the premiaincome was from protection-oriented Whole
Life Policies, which reinforces thecompanys focus on providing the true value of
life insurance to the customerGiven the better-than-expected performance of the
company, the shareholders haveincreased their investment in the company t o Rs
250 crore with an authorized sharecapital to Rs 300 crore making Max New York
Life Insurance Company among thehighest capitalized life insurance companies in
IndiaMax New York Life also met its commitment for the rural and social
[Link] company has 11 offices, over 1900 Agent Advisors and over 490
employees. MaxNew York Life believes in delivering top value to all its
stakeholders. As part of the bestpractices adopted, the Company instituted
satisfaction surveys conducted by independentagencies to measure the satisfaction
levels of its customers, agents and employees. MaxNew York Life has clearly
emerged as delivering top value across all these stakeholdersMax New York Life
offers a suite of flexible products. It has eight base products andnine options &
riders that can be customized to over 250 combinations enablingcustomers to
choose the policy that best fits their need The products are –Whole Life
Participating d ConvertibleWhole Life-Non-Participating,Children Endowment at
age 18,Children Endowment at age 24,20-year Endowment Participating
Policy,Endowment to age 60,Five-year Term Renewable an,Easy Term

BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

Bajaj Allianz life Insurance Company Limited is a joint venture between

BajajAuto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stabilityand strength. Bajaj Allianz General Insurance received the
Insurance Regulatory andDevelopment Authority (IRDA) certificate of
Registration (R3) on May 2nd, 2001 toconduct General Insurance business
(including Health Insurance business) in India. TheCompany has an authorized
and paid up capital of Rs 110 crores. Bajaj Auto holds 74%and Allianz, AG, holds
the remaining 26% Germany. In its first year of operations, the company has
acquired the No. 1 status amongthe private non-life insurers. As on 31st March
2003, Bajaj Allianz General Insurancemaintained its leadership position by
26
garnering a premium income of Rs.300 [Link] Allianz also became one of
the few companies to make a profit in its first full yearof operations. Bajaj Allianz
made a profit after tax of Rs.9.6 crores Bajaj Allianz today has a network of 42
offices spread across the length andbreadth of the country. From Surat to Siliguri
and Jammu to Thiruvananthapuram, all theoffices are interconnected with the
Head Office at Pune. In the first half of the current financial year, 2004-05, Bajaj
Allianz garnered apremium income of Rs. 405 crores, achieving a growth of 84%
and registered a 52%growth in Net profits of Rs.20 Crores over the last year for
the same period. In thefinancial year 2003-04, the premium earned was Rs.480
Crores, which is a jump of 60%and the profit zoomed by 125% to Rs. 21.6 Crores.

DATA ANALYSIS & INTERPRETATION

1. Do you have a Life Insurance with any life Insurance Company?

OPINION NO OF RESPONENTS PERCENTAGE

Yes 38 76

No 12 24

TOTAL 50 100

27
 NO OF RESPONENTS

12

38

INTERPRETATION:

From the above table and graph it is observed that 38 of the respondents said yes & 12
of the respondents said no that don’t have a life insurance with any life insurance
company.

2. Do you have Own?

OPINION NO OF RESPONENTS PERCENTAGE

House 19 38

Two Wheeler 25 50

Car 6 12

TOTAL 50 100

28
 NO OF RESPONENTS
6

19

25

House Two Wheeler Car

INTERPRETATION:

From the above table and graph it is observed that 19 of the respondents said house,
25 of the respondents said two wheeler & 6 respondents says car that they have own.

3. What is the market share of different life Insurance Companies?

COMPANIES NO OF RESPONDENTS PERCENTAGE

LIC 39 78
TATA AIG 1 2
HDFC 3 6
ICICI 4 8
MAX NEWYORK 1 2
KOTAK MAHINDRA 1 2
ALLIANZ BAJAJ 1 2
TOTAL 50 100

29
 NO OF RESPONDENTS
11 1
4

39

LIC TATA AIG HDFC ICICI

MAX NEWYORK KOTAK MAHINDRA ALLIANZ BAJAJ

INTERPRETATION:

From the above table and graph it is observed that 39 of the respondents said
that follow LIC, 3 of the respondents folowed HDFC,4 of the respondents followed
ICICI,1 respondents followed Tata Aig, 1 respondents followed Max New York, 1
respondents followed Kotak Mahindra,1 respondents followed Allianz Bajaj
respectively.

4. What factors do you consider while selecting a Life Insurance Company?

OPINION NO OF RESPONDENTS PERCENTAGE

Premium Outflow 10 20
Company Reputation 13 26
Service Quality 10 20
Return on Investments 17 34
TOTAL 50 100

30
 NO OF RESPONDENTS

10

17

13

10

Premium Outflow Company Reputation

Service Quality Return on Investments

INTERPRETATION:

From the above table and graph it is observed that 10 of the respondents said
that Premium outflow, 13 of the respondents said that company reputation, 10
respondents said that service quality & 17 of the respondents said that return on
investments respectively.

5. Are you satisfied with Current Life Insurance Company?

OPINION NO OF RESPONENTS PERCENTAGE

Yes 47 94

No 3 6

TOTAL 50 100

31
 NO OF RESPONENTS
3

47

Yes No

INTERPRETATION:

From the above table and graph it is observed that 47 of the respondents
said yes & 3 of the respondents said no that are not satisfied with current life
insurance company.

6. How do you rate services offered by Life Insurance Companies?

OPINION NO OF RESPONDENTS PERCENTAGE

Excellent 7 14
Very Good 12 24
Good 20 40
Average 11 22
Poor 0 0
TOTAL 50 100

32
 NO OF RESPONDENTS
7
11

12

20

Excellent Very Good Good Average Poor

INTERPRETATION:

From the above table and graph it is observed that 7 of the respondents
said excellent, 12 of the respondents opined very good, 11 of the respondents opined
good, & 11 of the respondents said average for services offered by life insurance
companies.

FINDINGS

 It is identified that LIC has a major Market share of 78%

 It is found that majority of consumers are satisfied with the service of the life
insurance companies.
 It is observed that majority of consumers are aware about Life Insurance
Companies.
 It is noticed that LIC stands first followed by ICICI, followed by HDFC.

33
 SUGGESTIONS

 It is suggested to the Companies have to adopt better strategies to attract more

consumers.
 It is recommended to the companies keeping the cost,quality and return on
investments is necessary in order to tackle the competition.
 It is advised to the Companies to release life insurance products for lower income
groups so it leads to increase the market share.
 It is suggested to the companies to concentrate on Return on Investments,
company reputation and premium outflow.
 It is recommended to the Private Life Insurance Companies to adopt effective
promotional strategies to increase awareness level among the consumers.

34
 BIBLIOGRAPHY

TEXT BOOKS:

 Kotler Philip, Marketing Management, Pearson Education

 Dr Singh, Avtar, Principles of Insurance, [Link] & Sons.

NEWS PAPER:

 Business Line

WEBSITES:

[Link]

35
 QUESTIONNAIRE

1. Do you have a Life Insurance with any life Insurance Company?

a. Yes b. No

2. Do you have own?

a. House [Link]-Wheeler c. Car

3. What is the market share of different life Insurance Companies?

a. LIC b. Tata-Aig c. HDFC

d. ICICI e .Max-NewYork f. Kotak Mahindra

g. Bajaj-Allianz

36
4. What factors do you consider while selecting a Life Insurance Company?
a. Premium Outflow b. Company Reputation

c. Service Quality d. Return on Investments

5. Are you satisfied with Current Life Insurance Company?

a. Yes b. No

6. How do you rate services offered by Life Insurance Companies?

a. Excellent b. Very Good c .Good

c. Average d. Poor

37