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INTRODUCTION
Insurance is basically risk management device. The losses to assets resulting from natural calamities like fire, flood,

earthquake, accident etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This contribution of many is used to pay the losses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events, which are beyond the human control. Secondly insured person should not make any gains out of insurance. It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often be forget that creator all these assets is the human being whose effort have gone a long way in building up to assets. In that scene human life is a unique income generating assets. Unlike physical assets, which decrease with the passage of time, the individual become more experienced and mature as he advances in age. This raises his earning capacity and the purpose of life insurance is to protect the income to individual and provide financial security to his family, which is dependent on his income in the event of his pre-mature death. The individual also himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. Insurance also has an element of saving in certain cases. Insurance is rupees 400 billion business in India and yet its spread in the country is relatively thin. Insurance as a concept has not being able to make headway in India. Presently LIC enjoys a monopoly in Life Insurance business while GIC enjoys it in general insurance business. There have been very little option before the customer to decide the insurer. A successful passage of the IRA bill have clear the way of private

sector operators in collaboration with their overseas partners. It is likely to bring in a more professional and focused approach. More over the foreign players would bring sophisticated actuarial techniques with them, which would facilitate the insurer to effectively price the product. It is very important that the trained marketing professionals who are able to communicate specific features of the policy should sell the policy. In the next millennium all these activities would play a crucial role in the overall development and maturity of the insurance industry. Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance industry, in this year the life insurance industry was liberalized after more than fifty years. Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise. But nowadays the market opened up and t here are many private players competing in the market. There are fifteen private life insurance companies has entered the industry. After the entry of these private players, the market share of LIC has been considerably reduced. In the last five years the private players is able to expand the market (growing at 30% per annum) and also has improved their market share to 18%. For the past five years private players have launched many innovations in the industry in terms of products, market channels and advertisement of products, agent training and customer services etc.

GENERAL DEFINITION :
In the words of John Magee, Insurance is a plan by which large numbers of people associate themselves and transfers to the shoulders of all risks that attach to individuals

FUNDAMENTAL DEFINITION:
In the words of D S Hansel, Insurance may be defined as a social device providing financial compensation for th e effects of misfortune, the payments being made from the accumulated contributions of all participating in the scheme.

CONTRACTUAL DEFINITION:
In the words of justice Tidal Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency.

CHARACTERISTICS OF INSURANCE
Sharing of risk Co-operative device Evaluation of risk Payment on happening of special event The amount of payment depends on the nature of losses incurred

ABOUT THE PROJECT

The project deals with comparative analysis of different insurance products offered by insurance companies.

PURPOSE OF THE PROJECT

The main purpose of the project is to do comparative analysis of different insurance products, check the awareness level and perception of insurance by the individuals. The project would also help in understanding preference of people regarding private and public insurance companies. The main objective of the research is making comparative analysis between :-

i) Birla sun life insurance with Life insurance Corporation of India. ii) Birla sun life insurance with Tata AIG life insurance. iii) National Health Plan with Reliance Health Wise Policy. Finding out the features and benefits of these plans. To find out the awareness level of insurance in Kolkata. To determine customer preference towards private insurance and companies. Marketing of different insurance products. public insurance

SCOPE OF THE PROJECT

The entry of foreign MNCs and the conductive business environment fostered by the government, it is no wonder that the re-entry of private insurance has marked a second coming for the sector. In just five years, the sector has undergone a makeover, offering more choice, better services, quicker settlement, tighter regulation and greater awareness the environment become more and more competitive and services and products become alike, creating a differentiation is becoming extremely tough. Thus, the main objective of my project was to find out the preference of people regarding insurance companies.The study then goes on to evaluate and analyze the findings so as to present a clear picture of recent trends in the Insurance sector.

The various life insurers entered India:1. HDFC Standard Life Insurance Company Ltd. 2. Max New York Life Insurance Co. Ltd. 3. ICICI Prudential Life Insurance Company Ltd. 4. Kotak Mahindra Old Mutual Life Insurance Limited. 5. Birla Sun Life Insurance Company Ltd. 6. Tata AIG Life Insurance Company Ltd. 7. SBI Life Insurance Company Limited. 8. ING Vysya Life Insurance Company Private Limited. 9. Met life India Insurance Company Ltd. 10. Royal Sundaram Life Insurance Company Limited. 11. Aviva Life Insurance Co. India Pvt. Ltd. 12. Sahara India Insurance Company Ltd. 13. Shriram Life Insurance Company 14. Life Insurance Corporation of India. 15. Reliance Life Insurance Company Limited. 16. Bharti AXA Life Insurance Company Limited.

REVIEW OF LITERATURE
About Insurance Industry

"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."Insurance is a protection against

financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured. Similarly, in a car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage. It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. In the western world, life insurance evolved mainly from the maritime industry. Started by private financiers who used to gamble on the lives of seafarers by offering five times the money deposited with them in case of certain contingencies?In its present form, life insurance has its origin in England and made its debit in India in the year 1818.Initially, Indians were not considered on par with Europeans as far as their insurability was concerned. There were also many other failures. It was in the early part of the 20th century that some kind of legislation was made to regulate the industry. From then on life insurance made great strides in the country. At the time of independence and thereafter, there were more than 200 companies operating in India and not all of them on sound ethical principles. Many factors combined together to prompt the then government to nationalize the life insurance industry in 1956 to form the Life Insurance Corporation of India.The years from 1956 to 1999 saw the life insurance

corporation of India emerge as a giant financial institution and the lone organization purveying life insurance, if we ignore the minimal presence of postal life insurance. The institution succeeded in penetrating in many areas and segments of the population and in garnering public money for public welfare. It was in the 1990s that the winds of change started sweeping over India and brought in their wake many changes in the economy. Liberalization ensured competition in many fields and there was a clamor that the insur ance industry too is opened up to Private Indian and foreign players to provide the customer with a choice. The Malhotra committee, appointed in 1993 was given the mandate to study the industry and to suggest the changes that were necessary to make it modern and in tune with peoples aspirations. The report submitted by the committee was the precursor of the IRDA Bill. By the passing of the IRDA Bill, the Insurance sector has been opened up for the private companies to carry on insurance business. Now the life insurance industry in India is rapidly evolving and growing. It has witnessed a big growth as many Indian and foreign were entered in to the Indian insurance sector. The life insurance industry in India has become fiercely competitive with the entry of several new players including major multinational insurers after the deregulation of the sector. It has opened up a range of untapped opportunities for new entrants into the industry, as the potential market for buyers is high since the emerging market in India has a low insurance penetration and high growth rates. Logic of insurance

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the amount premiums collected from the insuring public and the Insurance Companies act as trustees to the collected.

Need of insurance Insurance is desired to safeguard oneself and one's family against possible losses on

account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death. Certain Insurance contracts are also made compulsory by legislation. For example, Motor Vehicles Act 1988, stipulates that a person driving a vehicle in a public place should hold a valid insurance policy covering Act" risks. Another example of compulsory insurance pertains the Environmental Protection Act, wherein a person using or to carrying hazardous substances (as defined in the Act) must hold a valid public liability (Act) policy.

Insurance in India

Insurance is a federal subject in India and has a history dating back to 1818. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.5% of the country's GDP while general insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes, particularly in the recent years when the Govt. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. Currently, the largest life insurance company in India is still owned by the government.

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HISTORY OF INSURANCE IN INDIA

Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. It was only in the year 1870, Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates. At the dawn of the twentieth century, insurance companies started mushrooming up. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. However, the disparage still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is National Insurance Company Ltd, which was founded in 1906 and is doing business even today. The Insurance industry earlier consisted of only two state insurers: Life Insurers i.e. Life Insurance Corporation of India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been de-linked from parent company and made as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

Life insurance corporation act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance the Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, inter-alia, form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. There were 245 insurance

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companies of both Indian and foreign origin in 1956. Nationalization was accomplished by the govt. acquisition of the management of the companies. The Life Insurance Corporation of India was created on 1 September, 1956, as a result and has grown to be the largest insurance company in India as of 2006

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, and United India Insurance which were headquartered in each of the four metropolitan cities.

Insurance Regulatory and Development Authority (IRDA) Act, 1999

Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In recent years many private players entered in the Insurance sector of India. Companies with equal strength started competing in the Indian insurance market. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. With more and more private players in the sector this scenario may change at a rapid pace.

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ADVANTAGES OF LIFE INSURANCE

i) Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available.

ii) Protection during old age Life insurance can also be used as a means of saving for ones future. There are a number of life insurance policies, which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for the old age.

iii) Forced savings

Payment of life insurance premiums is compulsory and becomes a habit. Savings in other scheme can be easily withdrawn and may be used for less worthy purpose. Termination of a life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

iv) Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect of loans advanced for educational purpose or to provide donations to charitable institutions like hospital and school.

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v) Nomination and assignment

The life insured can name the person or persons to whom the policy money would be payable in the event of his death .the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect to the extent of any interest in the policy retained by the insured. Marketability and suitability for borrowing after 3 years, if the policyholder finds that he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life insurance policy is accepted as a security for a commercial loan.

vi) Loans from the insurance company

A policy holder can take a loan from his insurance company against the Security of his life insurance policy provided the terms of the terms of his policy allow such a loan. This loan can be taken usually after a period of 3 years from commencement of the policy and is a percentage of its surrender value.

vii) Investment options

The unit link products gives comprehensive insurance solutions that cater to an individuals dual need of earning potentially high returns as well as stay for life. Thus there is an option to invest money in the products that combine the best of insurance and investment. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio.

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viii) Tax benefits

The Indian income tax act provides tax concessions to the policyholder both on payment of premium and on the maturity amount. Under sec 88 the tax benefits on premium paid by an individual for life insurance policies on his own life\on the life of spouse \children minor or major, including married daughters. Under sec 6 of the married womens property act if a married man takes a policy of life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them, then it shall be deemed to be a trust for the benefit of his wife and children or any of them, According to the interest so expressed and shall not so long as any object of trust remains be subject to the control of the husband or to his creditors or form part of his estate. An insurance policy taken by a married man in the above manner is ideal way to protect the interest of his wife and children, even after his untimely death.

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TYPES OF INSURANCE PRODUCTS

Term assurance plan- In insurance language this is a pure risk cover and can be described as an insurance or risk management product in its purest and simplest form. In case of your untimely death, your dependents will receive the risk-cover amount or the sum assured. On the other hand, there is no survival benefits if you survive the policy term, and you also do not get back the premiums paid.

Endowment assurance plans- It is a traditional investment-cum-insurance plan. In other words, it provides both life cover (in the event of death of life insured) or maturity benefits if he/she survives the policy term. Endowment plans are typically frontloaded. Therefore it makes sense for you to remain in the policy for at least 12-15 years.

Money-back policy- It is a variant of the endowment assurance policy-the difference is that you get the survival benefits intermittently over the life of the policy. Thus taking care of his lump-sum monetary requirements to enable him to meet his financial goals and major commitments. The maturity benefit is the sum assured value less the survival benefits already paid under the policy, plus bonuses accrued, if any. In case of untimely death the nominee will receive the entire sum assured without considering the payouts already made to you before the unfortunate death.

Whole life plan- This policy provides the life assurance cover for almost the entire life. Most of the insurance companies provide protection up to the age of 100 years. The sum assured is paid to you once you reach this age, and the policy is terminated. In this payment of premium is for whole life, and the sum assured is paid to your nominee in the event of your death. In other words, this is equivalent to a term plan over your lifetime.

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Pension plan- A pension plan can be looked as more of an investment product offered by insurers to cater to the golden retirement years of an individual. Also referred to as retirement plans, these are designed to ensure that you are financially independent during your retirement years. Most of the pension plans also provide an optional life assurance cover in them.

Child plan- It basically aims at ensuring the achievement of life goals of your child. The goal can be higher education, financial help in establishing a business or profession, or even marriage. In a child plan, the life assured can be the parent or the child. The beneficiary for the policy, however, is the child. As a child is a minor, the life insurance contract is between the parent and the insurance company. In case of early death of the parent, the premium payment is waived off by the insurance company and the policy continues as originally planned.

Unit Linked Insurance Plan- ULIPs have been the darling of insurance companies, intermediaries and the insured population alike over the last five years. The main reason for this popularity is the twin advantage of a pure life cover (insurance component) and a range of investment funds or options (savings component) to match your risk profile. While the pure life cover provides the much needed financial security to your dependents in the event of your untimely death, the savings component allows you to participate in the capital markets and build wealth over the long-term tenure of the policy.

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CHANGING FACE OF INDIAN INSURANCE INDUSTRY

Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can setup their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: Low market penetration. Ever growing middle class component in population. Growth of customers interest with an increasing demand for better insurance products. Application of information technology for business. Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives.

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INDIA: THE NEXT INSURANCE GIANT

Market Performance & Forecast: In 2000, Indian insurance market size was $21.71 billion. Between 2000 and 2007, it had an increase of 120% and reached $47.89 billion. Between 2000 and 2007, total premiums maintained an average growth rate of 11.96% and the CAGR growth during this time frame has been 11.96%. It was one of the most consistent growth patterns we have noticed in any other emerging economies in Asian as well as Global markets.

Indian Insurance Market Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is on the fulcrum of an ever increasing growth curve. Insurance is one major sector which has been on a continuous growth curve since the revival of Indian economy. Taking into account the huge population and growing per capita income besides several other driving factors, a huge opportunity is in store for the insurance companies in India. According to the latest research findings, nearly 80% 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 subjected to weak social security and pension systems with hardly any old age income security. As per our findings, insurance in India is primarily used as a means to improve personal finances and for income tax planning; Indians have a tendency to invest in properties and gold followed by bank deposits. They selectively invest in shares also but the percentage is very small 4-5%. This in itself is an indicator that growth potential for the insurance sector is immense. Its a business growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.India is a vast market for life insurance that is directly proportional to the growth in premiums and an increase in life density. With the entry of private sector players backed by foreign expertise, Indian insurance market has

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become more vibrant. Competition in this market is increasing with companys continuous effort to lure the customers with new product offerings. However, the market share of private insurance companies remains very low -- in the 10-15% range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy hand of government still dominates the market, with price controls, limits on ownership, and other restraints.

Major Driving Factors Growing demand from semi-urban population Entry of private players following the deregulation Rising demand for retirement provision in the ageing population The opening of the pension sector and the establishment of the new pension regulator Rising per capita incomes among the strong middle class, and spreading affluence Growing consumer class and increase in spending & saving capacity Public private partnerships infrastructure development Dearth of innovative & buyer-friendly insurance products Success of Auto insurance sector.

Emerging Areas Healthcare Insurance & Pension Plans Mutual fund linked insurance products Multiple Distribution Networks .i.e. Bank assurance.

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The upward growth trend started from 2000 was mainly due to economic policies adopted by the then Indian government. This year saw initiation of an era of economic liberalization and globalization in the Indian economy followed by several reforms and long-term policies that created a perfect roadmap for the success of Indian financial markets. On the basis of several macroeconomic factors like increase in literacy rate & per capita income, decrease in death rate and unemployment, better tax rebates, growing GDP etc., we estimate that the Indian insurance sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a CAGR (compounded annual growth rate) of 12.44% and a growth of 59.82%.

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VALUING THE INVALUABLE

Both under insurance and over insurance can often be attributed to the lack of proper understanding of the exact insurance needs for oneself and the family, and the failure to spot and cover all liabilities properly and adequately, or being over-conservative in this regard.

Under Insurance
Under insurance, typically occurs when the existing financial liabilities and insurance needs are fully taken care of. In the event of the untimely death of the only (or the main earning) member of the family, his financial liabilities would obviously fall on his dependents, leaving them in a state of financial distress that could threaten their need of sustenance.

Over Insurance
Conversely, there are also instances where individuals indulge in life insurance covers that far exceed in value than what is actually required. This is a classic case of over insurance, which leads to an unnecessarily higher premium payment, leaving you much poorer. It results in unnecessary expenditure that could otherwise be wisely invested elsewhere. The need for an adequate insurance cover is never static and keeps on varying with changes in the life stages and important events of an individual. The table below provides an insight into the various life stages and events when life insurance cover usually requires a revision.

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BIRLA SUN LIFE INSURANCE

Birla sun life Insurance Company limited is a joint venture between the Aditya Birla group,one of the largest business houses in India and Sun Life Financial Inc. as leading international financial services organization. The local knowledge of the Aditya Birla group combined with the expertise of Sun Life Financial Inc. offer a formidable protection for your future. The Aditya Birla group has a turnover of Rs. 1,33,875crores(as on 31st march 2008). It has over 100,000 employees across all its units worldwide.It is led by its chairman Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo. Sun Life Financial Inc. and its partners, have operations in key

markets worldwide. These include Canada, U.S, U.K, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under management of over us$ 404.7 BILLION (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Birla sun life insurance (BSLI) has been operating for 7 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of unit linked life insurance plans amongst the private player in India. It pioneered the launch of united linked life insurance plans amongst the private players in India. It was the first player in industry to sell its policies through the Bancassurance route and through the internet. It was the first private sector player to introduce a pure term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations.

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LIFE INSURANCE CORPORATION OF INDIA

Mission

"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India Every day we wake up to the fact that more than 220 million lives are part of our family called LIC. We are humbled by the magnitude of the responsibility we carry and realize that the lives that are associated with us are very valuable indeed. Although this journey started five decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 52 years has been a process called TRUST.

PRODUCTS OF LIFE INSURANCE CORPORATION OF INDIA

Children's Policy Komal Jeevan - Plan No. 159 Children Deferred - Plan no.41 Jeevan Kishore - Plan no.102 Jeevan Chhaya - Plan no.103 Marriage Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168

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Endowment Policy Endowment with Profits - Plan no.14 Limited Payment Endowment with Profits - Plan no.48 Jeevan Mitra - Plan no.88 New JanaRaksha Policy - Plan no.91 Jeevan Anand Plan no. 149 Jeevan Mitra Triple Cover - Plan no.133 Group Insurance Policy Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme Shiksha Sahayog Yojana Joint Life Policy Jeevan Saathi - Plan no.89 Money Back Policy Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157 Bima Bachat- Plan no.175

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Pension Plans or Annuities New Jeevan Dhara - Plan no.148 New Jeevan Suraksha Plan no. 147 Jeevan Akshay II Plan no. 163 Jeevan Nidhi Plan no. 169 Jeevan Akshay V Plan no. 183 Special Plans Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 167 Term Policy Convertible Term Assurance - Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No- 164 Amulya Jeevan-Plan No-17 Whole Life Policy Whole Life with Profits - Plan no.2 Limited Payment Whole Life with Profits - Plan no.5 Single Premium Whole Life - Plan no.8 Jeevan Tarang- Plan no.178

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PENSION PLAN PRODUCTS OF LIC INDIA & ITS FEATURES

LIC of India retirement income plan LIC of India retirement income plan (unit linked)

What is the LIC of India retirement income plan?

The LIC of India retirement Income plan is a saving plan designed to meet your post retirement needs. It is a plan that gives you jeene ki azaadi . It gives you the choice to remain independent even after retirement .The LIC of India retirement income plan is a participating plan. The plan comes in two forms: One with cover and one without cover .

WHO CAN AVAIL OF THE LIC OF INDIA RETIREMENT INCOME PLAN?

How old do you have to be to avail of this plan?

Minimum age -18 years Maximum age 60 years

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For what term can choose to pay the premiums? 5 years 30 years

At what intervals can you pay premiums? Quarterly Half yearly Annually What are the advantages of this plan? You can choose to retire at any age between 45 years and 65 years. On retirement: Annuity option: Early retirement benefits:

Other products are: Money plus Auto plus Child plan Health plan

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SWOT ANALYSIS
Strengths: a. Dedicated Employees. b. Well Efficient Management. c. Technology. d. Diversification of funds. e. Strong and popular brand name. f. Adaptability to changes.

Weakness: a. Lack of good services. b. Lack of awareness about insurance among people. c. Less coverage in Rural Areas.

Opportunities: a. Fast growing economy. b. Increasing per capita income in India. c. Saving behavior. d. High growth of ULIP industry. Threats: a. Arrival of new entrants in the insurance industry. b. Cut throat competition within the industry

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TATA AIG LIFE-A NEW LOOK AT LIFE

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. The Tata Group holds 74 percent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was licensed t operates in India on February 12, 2001 and started operations on April 1, 2001. Tata AIG Life offers a broad array of life insurance coverage to both individuals and groups, providing various types of add-ons and options on basic life products to give consumers flexibility and choice.

MAX NEW YORK LIFE INSURANCE

Max New York Life Insurance Company Ltd. is a joint venture between Max India Ltd., one of Indias multi-business corporations and New York Life Enterprises, a business unit of New York Life, a Fortune 100 company. Incorporated in 2000, Max New York Life started commercial operation in 2001 and today is one of Indias leading private life insurance companies. The company offers individual and group life insurance products and is present across the country through a wide distribution network of multi channel distribution

Max New York Life has 23 individual life and health insurance products and 9 riders that can be customised. Besides this, the company offers 4 products and 7 riders in group insurance business. The Company's paid up capital as on 31st March, 2011 was Rs. 1976 crore.

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NATIONAL INSURANCE COMPANY LIMITED

National Insurance Company Limited was incorporated in 1906 with its registered office in Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it and National became a subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the Government of India. After the notification of the General Insurance Business (Nationalisation) Amendment Act, on 7th August 2002, National has been delinked from its holding company GIC and presently operating as a Government of India undertaking. National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's foreign operations are carried out from its branch offices in Nepal. National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The Company offers protection against a wide range of risks to its customers. The Company is privileged to cater its services to almost every sector or industry in the Indian Economy viz. Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment, Space Research etc. National Insurance is the second largest non life insurer in India having a large market presence in Northern and Eastern India.

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RELIANCE GENERAL LIFE INSURANCE

Reliance General Insurance is the fastest growing private sector general insurance company in India with innovative product offerings and customer service standards that are benchmarked to the best insurance practices in the world. Reliance General Insurance offers a range of products for corporate and individual customers. With a focus on customer-centric products, multiple distribution channels and technology, reliance general insurance aims to increase its presence in the retail sector.

Reliance General Insurance is 100% subsidiary of reliance capital limited, which is one of the Indias leading and fastest growing private sector financial services companies. It ranks among the top three private sector financial companies and banking groups in terms of net worth. Reliance capital has interests in asset management and mutual funds, life insurance, general insurance, private equity and proprietary investments, stock broking and other activities in financial services. Reliance capital is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. Whatever your career goal, Reliance Life Insurance is a company big enough for your dreams. We, along with the other businesses of Reliance Capital, enjoy a strong position in the financial services category. And this may be the place where you can have the career you always wanted.

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Product Details of Reliance Life Insurance Products:Individual Plans

Reliance Wealth + Health Plan Reliance Secure Child Plan Reliance Automatic Investment Plan Reliance Money Guarantee Plan Reliance Endowment Plan Reliance Special Endowment Plan Reliance Cash Flow Plan Reliance Child Plan Reliance Term Plan Reliance Whole Life Plan Reliance Market Return Plan Reliance Golden Years Plan Reliance Golden Years Plan Value Reliance Golden Years Plan Plus Reliance Simple Term Plan Reliance Special Term Plan Reliance Credit Guardian Plan Reliance Connect 2 Life Plan Employee Benefit Plans Group Term Assurance Policy Reliance EDLI Scheme Reliance Group Gratuity Policy Reliance Group Superannuation Policy

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Automatic investment plan:The Key benefits of Reliance Automatic Investment Plan are as follows:

A smart plan which adapts to your changing risk profile with increasing age Option to lower the average cost of units through systematic transfer of your funds Flexibility to switch between funds and plans Options for additional Insurance cover available through riders

Key Features Reliance Automatic Investment Plan

Two plan options to choose from Ready-made and Tailor-made Life Stage asset allocation to ensure automatic change in investment patterns, under the Ready-made Plan option

Freedom to decide your own fund mix based on your risk profile under the Tailormade Plan

Regular, limited, single premium paying options Unmatched flexibility through our Exchange Option Liquidity in the form of partial withdrawal Option to avail of Accidental Death Benefit, Accidental Total, Premium Disability and Term Insurance riders

How does this Plan work? As a customer you will have the liberty to choose between the Ready-made and Tailormade Plan options. The premium contributions made by you, net of Premium Allocation Charges and Sum Assured Related Charges are invested in fund/funds of your choice and units are allocated depending on the price of units for the fund/funds. The Fund Value is the total value of units that you hold in the fund/ funds. The Mortality Charges and Policy Administration Charges are deducted through cancellation of units, whereas the Fund Management Charge is priced in the Unit Value.

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HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance is a joint venture between HDFC Limited and Standard Life Plc of United Kingdom. It was the first private life insurance company to set shop in India and started its operations in late 2000.

HDFC Limited is a leader in Indias housing finance industry and has been in operations since 1977. It has more than 270 offices and services more than 2400 cities across India. The World Bank has praised HDFC as a model housing finance company for the developing countries. The UK based Standard Life Group is an insurance and investment industry specialist with a history dating back to the last decade and an international presence. It manages assets of more than 156bn pounds globally.

HDFC Standard Life Insurance alone has 568 branches and reaches out to customers in 700 cities in India. This along with the partnerships with group companies like HDFC Bank and HDFC Limited give it an enviable reach among the private life insurance companies. The company also has entered into tie-ups with Sarswat Bank and Indian Bank to sell their insurance products through their network. The companys advertisement campaign of Sar Utha ke Jiyo was a successful one which did strike a chord in the Indian consumer minds. The company offers a healthy mix of traditional and unit linked products which cater to protection, savings, pension, investment and health requirements of individuals. Amitabh Chaudhry is the Managing Director and CEO of HDFC Standard Life Insurance Company.

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HDFC Life Insurance Plans-:

Term Insurance Plans HDFC Life Click 2 Protect Plan HDFC Term Assurance Plan HDFC Premium Guarantee Plan

Unit Linked Insurance Plans - ULIPs HDFC SL Crest HDFC SL Pro Growth Super II HDFC SL Pro Growth Flexi HDFC SL Pro Growth Maximiser

Money Back Plan HDFC New Money Back Plan Retirement Plans HDFC Personal Pension Plan * Endowment Plans HDFC Endowment Assurance Plan HDFC Assurance Plan HDFC Savings Assurance Plan HDFC Endowment Gain Insurance Plan Whole Life Plan HDFC Whole of Life Insurance - Single Premium HDFC ClassicAssure Insurance Plan Sampoorn Samridhi Insurance Plan HDFC Immediate Annuity HDFC SL Pension Maximus *

Child Plans HDFC Children Plan HDFC SL Young Star Super II ULIP HDFC SL Young Star Super Premium ULIP

Health Plans HDFC Critical Care Plan HDFC Surgi Care Plan

Loan Cover Plans HDFC Loan Cover Term Assurance Plan HDFC Home Loan Protection Plan

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BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LIMITED

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE. As on 31st March 2010, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. Bajaj Allianz has made a profit before tax of Rs. 180 crores and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last four years. The profit after tax was Rs. 121 crores, 27% higher than the previous year.

Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.

Vision

To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry To be the number one insurer for creating shareholder value

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Mission As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money.

A Partnership Based on Synergy

Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance.

Our Achievements

Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's Investors Service, for Claims Paying ability. This rating indicates highest claims paying ability and a fundamentally strong position.

Bajaj Allianz General Insurance has received the prestigious "Business Leader in General Insurance", award by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.

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KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products, helping them take important financial decisions at every stage in life and stay financially independent. The company covers over 3 million lives and is one of the fastest growing insurance companies in India.

ABOUT KOTAK MAHINDRA GROUP Established in 1985, the Kotak Mahindra group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received the banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to become a bank - Kotak Mahindra Bank Ltd.

The Kotak Mahindra group has a consolidated net worth of Rs 12,416 crore (approx US$ 2.34 billion) as on December 31, 2011. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore. Kotak conducts all securities activities in the United States through its SEC-registered affiliate Kotak Mahindra, Inc.

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OLD MUTUAL Old Mutual plc is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual plc is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others. In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of 1.5 billion (on an IFRS basis) and had 309 billion of funds under management, from core operations.

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ICICI PRUDENTIAL LIFE INSURANCE

OVERVIEW:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nationwide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world class financial solutions to customers all over India.

VISION: To be the dominant Life, Health and Pensions player built on trust by world-class people and service.This we hope to achieve by: Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders. Providing an enabling environment to foster growth and learning for our employees. And above all, building transparency in all our dealings.

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The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

VALUES: Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

PRODUCT DETAILS OF ICICI PRUDENTIAL LIFE INSURANCE PRODUCTS : Life Time Gold Premium Life Gold Life Stage Pension Life Time Super Pension Hospital Care Life Link Super Premier Life Pension Invest Shield Life

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RESEARCH METHODOLOGY

TYPES OF RESEARCH: The research includes different options. They are:

Exploratory research: It is usually a small-scale study undertaken to define the exact nature of a problem and to gain a better understanding of the environment within which the problem has occurred. It is the initial research, before more conclusive research is under taken.

Descriptive research: It is to provide an accurate picture of some aspects of market environment. Descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible. It provides the number of time something occurs, or frequency, lends itself to satisfied calculations such as determining average number of occurrences. Casual research: If the objective is too determined which variable might be causing a certain behavior that is whether there is a cause and effect relationship between variable, casual research must be undertaken. In order to determine causality, it is important to hold the variable that is assumed to cause the change in the other variable constant and than measure the changes in the variable. This type of research is very complex and the researcher can never be completely certain that there are no other factors influencing the casual relationship, especially when dealing with peoples attitudes and motivation. This research is about understanding the market stand and also find the strength & weakness of the products of three insurance companies by making comparing analysis of the products of the

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companies, mainly descriptive research methodology are adopted. Descriptive research was adopted since it provides accurate picture about some aspect of market environment such as which brand is performing well and what the company can do to improve its market share. SAMPLING PROCEDURE How should the respondents be chosen? To obtain a representative sample and nonprobability sample can be drawn, they are Judgment sample: The researcher selects population numbers who are good prospects for accurate information. For collection of research data judgment-sampling technique is used where all of them are employees of the three insurance companies as they are good prospect for accurate information

ACTUAL COLLECTION OF DATA Data sources: The sources of data include either secondary data or primary data and even some times the combination of both. The present study is more concentration on both primary and secondary data. Primary data: Primary data is collected through face-to face interaction with employees of the insurance companies, by meeting them in personal. Secondary data: The secondary data used for their study are inclusive of the data collected from the internet, catalogues and brochures and magazines.

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COMPARATIVE ANALYSIS:

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Min to Max Age 12-60 years Name the company

Premium Base Comparison Endowment Plan LIC

Min to Max. term 10-30 years ICICI PRO OM KOTAK

of HDFC SLIC

Age of the 30 years person

30 years

30 years

30 years

Term of the 20 years policy Sum assured 1,00,000

20 years

20 years

20 years

1,00,000

1,00,000

1,00,000

Basic premium (without any premium)

5,100

4,895

5,216

5,321

Returns (on S.A. + Bonus death)

S.A. Accumulated Bonus

+ S.A. + Bonus

S.A. + Bonus

Returns (on S.A. + Bonus maturity)

S.A. + Bonus

S.A. GA

Bonus+ S.A. + Bonus

Other benefits

(CI),(ADB),(DSA),( WOP)

(WOP), (ADB)

(ADB),(ABR), (CI),(MSR)

(CI),(ADB)(DS A),(2GD), (TB)

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Min to Max Age 18-60 years

Premium Base Comparison Term Plan LIC

Min to Max. term 10-30 years ICICI PRO OM KOTAK

Name of the HDFC SLIC company Age person of the 30 years

30 years

30 years

30 years

Term policy

of

the 10 years

10 years

10 years

10 years

Sum assured

1,00,000

1,00,000

1,00,000

1,00,000

Basic premium 10,300 (without premium) any

9,324

11,809

11,237

Returns death) Returns maturity)

(on S.A. + Bonus

S.A. Bonus

+ S.A. + Bonus

S.A. + Bonus

(on NI2

NI2

NI2

NI2

other benefits

(CI),(ADB),(ASA)

(WOP), (ADB)

(ADBR),(ABR)

(CI),(ADB)(PDB)

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Min to Max Age of Child 0-17 Premium Base Comparison Min to Max. term Min to Max Age of Policy Holder 12-60 years Name company Age of the Child Term of the policy 6 years 15 years 6 years 15 years 6 years 15 years 6 years 15 years of the HDFC SLIC LIC ICICI PRO OM KOTAK Children Policy 10-30 years

Sum assured Basic (without premium) Returns (on death)

1,00,000

1,00,000 6,380

1,00,000 7,991

1,00,000 7,620

premium 7,500 any

Future premium Future waived and premium

Future premium Future

premium

waived and sum waived and Policy and assured continue till maturity

Policy continue waived till maturity

Policy continue immediately till maturity after the death

Returns maturity)

(on Sum Bonus

assured+ Return after 2- Return after 2-2 Sum assured+ Bonus 2 years gap 20 % 20%-30% years gap on maturity S.A.+ Bonus

30% and Bonus Other benefits (ADB,(WOP) (PWP), (TRB) (ADB),(IBR), (ABR),(WOP) (LGB),(ADB),(WO P)

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Min to Max Age 12-60 years

Premium Base Comparison Money Back Policy LIC

Min to Max. term 10-30 years ICICI PRO OM KOTAK

Name of the HDFC SLAIC company Age of the 30 years person Term of the 20 years policy Sum assured Basic premium (without any premium) Returns (on S.A. + Bonus death) 1,00,000 7,585

30 years

30 years

30 years

20 years

20 years

25 years

1,00,000 6,380

1,00,000 7,019

1,00,000 6,040

S.A. + Bonus

S.A. + Bonus

S.A. + Bonus

Returns (on Return after 5-5 Return after 5- In 20 years Return after 5-5 maturity) years For Policy 20 5 years Years For 20 Years 20%Policy returns years after years gap. 4-4 For Policy 20 Years 20%-20%

20%-20% Policy

and 20% alte 5-5 20% and 20% 1st year-10% years gap+ Bonus alte 5-5 years gap+ Bonus 2nd year-15% 3rd year-20% 4th year-25% On maturity-

and 20% alte 5-5 years gap+ Bonus

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50%+ Bonus

Other benefits

(CI),(ADB),(DSA) ,(WOP)

(WOP), (ADB)

(ADB),(DAB ), (CI),(MSR)

(CI),(ADB),(PDB) , (2GD)

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FINDINGS AND INTERPRETATIONS

We have presented below the findings and analysis of the questionnaire addressed to the respondents to gauge the attitude and perception of the people towards insurance.

Respondents having life Insurance

The question was asked to the respondents to know how many of the respondents had a life insurance policy.

From the survey it was found out that 85% of the respondents had a life insurance policy whereas 15% of the respondents didnt had a life insurance policy.

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Insurance policy taken from which company

The question was asked to the respondents so as to get to know from which insurance company they have bought the policy?

The finding which came out from the survey was that 40% of the respondents who have a life insurance cover bought life insurance from Life Insurance Corporation of India (LIC). LIC is the most preferred brand in the insurance industry because it is the only government company which offers insurance. People prefer to buy insurance from LIC because of the security being one of the prime factors. In the figure we can also see that nowadays people mindset have changed towards insurance and are opting for private company for insurance cover or policy.

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PREFERENCE OF INSURANCE SECTOR ACCORDING TO AGE GROUP

AGE GROUP BEYOND 40

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PIE CHART

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AGE GROUP BETWEEN 25 40

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PIE CHART

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RESULTS
After the survey it was found that still major portion of customers go for public insurance companies, but with the entry of more and more private companies the scenario is changing rapidly, people with a need of more and better returns are opting for private companies, and this can be justified by the increasing market share of private companies in the Indian insurance sector.There are various ways in which private companies are found much more lucrative than public companies and the facts which support this statement are as follows:1. Versatility of products. 2. Efficient fund managers. 3. Better customer services. 4. More returns. 5. Regular follow up. 6. Quicker settlement

SUGGESTIONS AND RECOMMENDATIONS

People are not aware of the life insurance. Most of them know only one company which provides life insurance i.e. LIC. So awareness campaign should be run so that people are aware of different life insurance companies in India. People should be educated about the different types of products or plans offered by the life insurance companies. Most of them dont know much of the different types of plan or products. It was felt that most of the people took life for tax savings or just to cover up their life, not as an investment avenue. Life Insurance companies need to advertise in such a manner that people start investing in life insurance like the way they invest in the stock market Now at the time of global turmoil insurance company had to hold on to the Policyholders trust which might lead the company to the path of success.

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ROLE OF LIFE INSURANCE

Role 1 : Life Insurance as INVESTMENT Insurance is an attractive option for investment. While most people recognize thetax hedging and tax saving potential of life insurance, many are not aware of its advantages as an investment option as well as. Insurance products yield more compared to regular

investment option as this is besides the added incentives (read bonuses) offered by insurers.You cannot compare an insurance product with other investment schemes for simple reason that it offers financial protection from risks, something that is the missing in non- insurance products. Infact, the premiu m you pay for a investment against risk. Thus, before comparing with other scheme, you must accept that a part of total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term the amount investor as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Now, let us compare insurance as an investment o options. If you invest Rs. 10000/- in PPF, year money grows to Rs. 10950 at 9.5% interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50% of the initial deposit only after four years. The same amount of Rs. 10000/- can give you an insurance cover of upto approximately Rs. 5 to 12 lacs. ( depending upon the plan, age and medical condition of life insure etc. ) and this amount can become immediately available to the nominee of the policy holder on death.Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

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Role 2 : Life Insurance as RISK COVER First and foremost, insurance is about risk cover and protection financial protection, to be more presize-to help out last once unpredictable losses. Designed to safe guard against losses suffered on account of an unforeseen even ts. Insurance provide you with that uniqueness sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contributions for many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the moneys. Insurance also provides a safeguard in the case of accident or a drop in income after retirement. An accident or disability can be devastating and an insurance policy can lend timely support to the family in such time. It also comes as a great help when you retire, in case untoward incident happens during the term in the policy. With the entry of private sector player in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs considering the amount you have to pay now, its worth buying some extra sleep. Role 3 : Life Insurance as TAX PLANNING Insurance serves as an excellent tax saving mechanism too. The Govt. of India have offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. U/S 88 of Income Tax Act 1961, an individual is entitled to rebate 20% on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is reductible from tax payable by a individual or Hindu undivided family. This rebate is can be availed upto a maximum of Rs 12000/- on payment of yearly premium of Rs 60000/- a year, you can buy anything upward of Rs 100000/- in sum. assured. This means that you get Rs 12000/- tax benefit. This rebate is deductible from the tax payable by an individual or a Hindu undivided family

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LIMITATIONS
Useful Financial insights are not easily available. Due to time constraint sufficient research on all the investment tools is difficult. The survey sample is not very large for analysis. Properly convincing people to invest in insurance products is challenging. Due to recession there is liquidity crunch in the market. There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions. The research is confined to Kolkata and does not necessarily shows a pattern applicable to other parts of the country.

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FUTURE SCENARIO:-

Before looking in future prospectus of the insurance industry, we must take a look into its past history. The independent India started with private sector Insurance companies. These companies were nationalized by the union govt in 1956 to form a monopoly known as Life Insurance Corporation of India has being under public sector for over four decades till the govt. opened the insurance sector for private companies in 2000. When the insurance Industry was nationalized, it was consider a land mark and a milestone on the way to the socialistic pattern of society that India had chosen after independence. Nationalization has lent the industry solidity and growth which is unparalleled. Forever, along with these achievements there also grew a feelings of insensitivity to the needs of the market, traditions in adoption of modern practices to upgrades technical skills coupled with a scene of lethargy which probably led to a feeling amongst that the insurance industry was not fully responsive to customers needs. The life insurance corporation of India has not succeeded in extending the insurance cover to all the needy people of the country due to various reasons. LIC could not insure very fast growth of insurance in India even in a long period extending over four decades. Hence the penetration of insurance is very low in India.

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The following indicates as explained and support this contention:

1. While per capita insurance premium in developed country is high, it is quite low in India. For instance, per capital insurance premium in India in 1999 was only $8 while it was $4800 for Japan $1000 for Republic of Korea ,$887 for Singapore, $823 for Hong-Kong and $144 for Malaysia.

2. Similarly the penetration of insurance is also assessed by the ratio of Insurance premium to gross domestic products in a country. While insurance premium as a percentage of GDP was 14 % in Japan, 13% for South-Africa, 12% for Korea, 9% for UK and France. It was only around 2% in India in 1999. hence the penetration of insurance is low here.

3. The penetration of Insurance is also assessed by a ratio of Insurance premium to gross domestic savings (GDS). While insurance premium as a percentage of GDS was 52% for UK, 35 % for other European and American countries, it was only 9% in India in 1999. Hence even this index indicates low level of penetration of insurance in India.

4. The share of India in the world market in terms of gross insurance premium is again very small. For instance while Japan has 31%, European union 25%, South Africa 2.3%, Canada 1.7% share of global insurance premium is only 0.3% for India.

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CONCLUSION
The financial markets have continued to witness unprecedented liberalization, growth and reforms over the last decade prompted by regulatory compulsions and a rapid integration between

domestic and global markets. And as a result, one has seen substantial growth in the number of financial firms (insurance companies, mutual funds,

brokerages, banks etc.) and in the number and variety of financial products and services offered by them. As the need of the people is changing so is changing the investment habits of the people and this has brought in a spate of new products and schemes where people can invest. The concept of insurance as an investment option has arrived where people first identify the varying needs of money then converts the needs into specific amount of money and time required to achieve the objective of investments plans. The objective of insurance as an investment is to ensure that investments are driven by pre determined and well thought out investment plan and that the investments are suitable and adequate to meet these plans. But for this the planner must understand the universe of investments options. He/she must be well informed on the risk and return attributes of these options. In addition to the above, companies should also innovate to come up with better products that would suit the Indian population and should also try to market and sell their products through new channels of

distribution that can be effective in selling their products to the masses.

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People should identify their needs and then decide on the type of policy they want to invest in insurance is a good investment option for those people who do not know where to invest and who do not want to the risk of capital erosion. But, people who are financially savvy can opt for term insurance and invest the rest in other options that may give them higher returns. Insurance is one sector that witnessed continuous growth owing to the reforms in 2000. The insurance sector is likely to attain a size of Rs. 2,00,000 crore ($ 51.2 billion) in 20092010. In life insurance, the business grew by 23.3% to Rs. 93,000 crore in 2007-08.The sector alone employs close to 30 lakh people (including agents and direct employees).A well-functioning insurance market plays an important role in economic development and financial stability of developing economies such as Indias. First, it inculcates and encourages the habit of saving. Second, it provides a safety net to rural and urban enterprise and productive individuals. The life insurance market in India is on a growth path. In spite of this, the country lags far behind the others in awareness about life insurance. The challenge is to spread awareness about life insurance and it true benefits. The industry has to convince people to park their hard earned money in long-term insurance and just not look

at it as a tax saving instrument .

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BIBLIOGRAPHY

REFERENCES:

BOOKS: Life and Health Insurance Kenneth Black and Harold D. Fundamental of Risk and Insurance- Emmet J Vaughan and John Willy

WEBSITES: www.lic.co.in www.wikipedia.com www.tata-aig-life.com www.birlasunlife.com www.irdaindia.org www.google.com www.wikipedia.com