A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF BAJAJ ALLIANZ LIFE INSURANCE & BIRLA SUN LIFE INSURANCE

By JITENDRA A. YADAV (MMS-2ND YEAR MARKETING) IMCOST K M DASTUR RE-INSURANCE BROKERS PVT. LTD.

A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF BAJAJ LIFE INSURANCE & BIRLA SUN LIFE INSURANCE

The study was conducted from 5thof MAY 2013 to 20th of June 13 At

K M DASTUR RE-INSURANCE BROKERS PVT. LTD.

Company Guide: Mr. Dattaram Parab Regional Manager K M DASTUR REINSURANCE BROKERS PVT. LTD.

Submitted by: Jitendra A. Yadav (MMS 2ND Year marketing)

INSTITUTE OF MANAGEMENT & COMPUTER STUDIES

CERTIFICATE

T0 Whom It May Concern: This is to certify that Mr. Jitendra A.Yadav have undergone summer project training in our organization from 5th May 2013 to 28th June 2013.

He has successfully completed a project on LIFE INSURANCE OF K M DASTUR RE-INSURANCE BROKING PVT. LTD.
2

During the tenure of his project we have found him to be sincere and hard working. We wish him all the best in his future endeavors.

FOR K M DASTUR RE-INSURANCE BROKING PVT LTD.

MR. DATTARAM R. PARAB REGIONAL MANAGER (8108358864)

CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled comparative analysis of bajaj Allianz life insurance & Birla sun life insurance is a piece of work done by Jitendra A. Yadav, student of Institute of management & Computer Studies, under my guidance and supervision for the partial fulfillment of the course MMS, To the best of my knowledge and belief the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.

Signature of the Faculty Guide Name of Faculty Guide Designation

3

DECLARATION

I hereby declare that the project report entitled COMPARATIVE ANALYSIS OF BAJAJ LIFE INSURANCE & BIRLA SUN LIFE INSURANCE is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at Institute of management & computer Studies, for the partial fulfillment of the course MMS, and the report has not been submitted to any other educational institutions for any other purpose.

Date: Signature

CONTENTS PARTISULARS Acknowledgement Executive Summary Introduction Introduction of the Industry Life Insurance General Insurance Major Policy changes Changing Face of Indian Insurance Industry Various types of Life Insurance Policies Introduction of the Company Company Profile Achievement Management Insurance Plans Research Methodology Objective Scope of study Sampling Methodology Limitations Survey Graph Analysis & Data Interpretation Findings & recommendations Findings & Recommendations Growth Potential Conclusion Bibliography Annexure Questionnaire Page No. 7 8 9 11 12 13 14 15 18 19 20 21

26 27 28 29 30-47 49 50 51 52 54-55

LIST OF GRAPHS Particulars [Fig 1] No of People Having Insurance

5

Page No. 30

[Fig 2] Types of Insurance Policy Respondents Have [Fig 3] Preferance of Respondents of Insurance Cos [Fig 4] Benefits of Insurance Perceived by Respondents [Fig 5] Features of Insurance Policy That Attracted Respondents [Fig 6] Peoples Perception About Insurance [Fig 7] Persons Having Insurance For [Fig 8] Reasons Behind Taking Insurance Policies [Fig 9] Satisfaction of Respondents With Respect to Policies [Fig 10] Satisfaction of Respondents With Respect to Agents [Fig 11] No of Respondents Paying Tax

31 32 33 34 35 36 37 38 39 40

[Fig 12] Respondents Perception About Best Form of Investment 41 [Fig 13] Peoples Perception of Appropriate Age For Buying Insurance [Fig 14] Peoples Opinion About Insurance Companies in India 44 [Fig 15] What People Look For in Insurance Companies 45 [Fig 16] People Interested In Going For Insurance Away From Their City [Fig 17] Peopleanning For New Investment 46 42 43

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibilities to complete this thesis. I would like to thank Prof. Shilpa Kadam, Director- J N shah, Institute Of Management & Computer Studies, Mr.Dattram Parab, Regional Manager,K M Dastur Re-Insurance Brokers Pvt. Ltd. and college authorities first for providing me the opportunity to work with one the prestigious organization. I want to thank Regional Manager, K M Dastur Re-Insurance Brokers Pvt. Ltd. Mr.Dattaram Parab for giving me permission to commence this thesis in the first instance, to do the necessary research work and for being my Company Guide. With a deep sense of gratitude and humble submission I would like to express my heartiest gratefulness to my Faculty Guide Prof. Shilpa Kadam, Institute Of Management & Computer Studies, whose help, stimulating suggestions and encouragement helped me in all the times of research for and writing of this thesis.

Date: Signature:

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and K M Dastur Re-Insurance Brokers Pvt. Ltd. has given me the opportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG,RELIANCE LIFE INSURANCE,FUTURE GENERALLY etc has adequate agents in the market they can capture big market as compared to the other companies. Agents are the best way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

THE HISTORY OF INDIAN INSURANCE INDUSTRY

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

Life Insurance In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. Was set up to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four companys viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd . GIC incorporated as a company.

10

MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956; The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100 crores. The minimum paid up equity capital for carrying on reinsurance business has been prescribed as Rs.200 crores. The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

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 set up 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.

11

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. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy. Penetration of life insurance is beginning to cut across socioeconomic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment. Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products. So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting.

Various types of life insurance policies:-

12

Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive. Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies. Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder. Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy. Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period. Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

13

COMPANY PROFILE

K. M. Dastur & Company was founded in 1973 by the late Mr K.M. Dastur, erstwhile Country Head of Norwich Union Insurance Company. Headquartered in Mumbai with local branches in 12 other Indian cities, it is a leading independent direct and reinsurance broker in Asian, African & Middle Eastern markets. Represented in London, Dubai, Kuala Lumpur, Casablanca, Johannesburg, Istanbul, Moscow, Jakarta and Baku

K M Dastur is a private independent Company with a carefully selected network of offices established to service our Clients. We value our independence very highly as this ensures that our people have the liberty to make the right decisions for our each of our Clients. It is through the strength of our relationships and the effort we make to strengthen these relationships that we measure our value. The Company takes great pride in the success and development of all it's employees and ensures that the highest quality of training, technology and exposure

14

is given to each employee so that they deliver a very high quality of professional service.

VISION To become one of the most admired life insurance company of India.

MISSION

Become one of the top quartile broking firm in India Be a national player Be the brand of first choice Be the employer of choice Become principal of choice for agents

VALUES Knowledge: Knowledge leads to expertise; and our expertise is in helping people protect themselves. Perfectly combining global expertise with local knowledge, we are India's life insurance specialist. K m Dastur believes that for knowledge to be of value it must be focused, current, tested and shared. Caring: K M Dastur is redefining the life insurance paradigm by focusing on customers first. The service process is responsive, personalized, humane and empathetic. Every individual who represents the company is for us our brand champion. Honesty: Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and dependability form the cornerstones of the K M Dastur experience. The company ensures that everyone who represents the brand carries a promise : we care in word as well as deed.

15

Excellence: Excellence at K M Dastur implies the ability to perform at a consistently high level. Focused on the value of continuous improvement in people, processes and the organization, the company strives for the highest standards of quality in every aspect of its business. ACHEIVEMENTS K M Dastur is the first Broking company in India to be awarded the IS0 9001:2000 certification. K M Dastur was among the top 25 companies to work with in India, according to 2003 Business World magazine, "Great Workplaces In India", K M Dastur was ranked at the 20th position. This survey is the local version of the "Great Places To Work" survey carried out every year in 22 countries. Been among top five most respected private life insurance companies in India according to a 2004 and 2006 Business World survey. Have truly built an enviable sales force. With 345 agents becoming members of the MDRT in 2006, K M Dastur has moved up to 21st rank in MDRT global list.

INSURANCE PLANS Protection Plans: Five Year Renewable and Convertible Term Insurance Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-Participating) plan not only provide you with a low cost insurance cover during its tenure of five years, it also helps you plan in advance for various future needs and your family's financial security, should anything unfortunate happen to you. Offering a guaranteed Death Benefit, this plan is particularly useful as a short-term protection plan. An important feature of this policy is that it allows the insured to convert the policy to a regular policy during the tenure of the policy. Level Term (Non Participating) Policy Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a very low cost and reduces the consequent hardship your family may have to bear in the unfortunate event of your death.
16

Incase of the unfortunate death of the policy holder during the term of the plan, an amount equal to the sum assured is paid to the nominee. Children Plans: Children's Endowment to 18 (Par) Plan Max New York Life presents Children's Endowment Participating Insurance to age 18 with an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy which is especially designed to enable you to provide for higher education of your child and take care of your childs future needs in case of spiraling costs.

Children's Endowment to 24 (Par) Plan Max New York Lifes Children's Endowment Participating Insurance to age 24 provides an option to buy a permanent life insurance policy without medical underwriting (irrespective of his/her health at that time). This policy enables you to provide for various events in your childs life such as a grand wedding of your child. This excellent plan is a participating plan, which is also eligible for bonuses and Max New York Life may declare these bonuses from time to time and from the third policy year. An important feature of this plan is that the entire sum assured is paid out on maturity and the plan automatically vests when the child turns 18. Stepping Stones (Par) Plan Max New York Lifes Stepping Stones is a smart way to plan your childrens education and their future irrespective of whether you are there or not. It provides you with regular money when it is required. This policy also builds cash value, which you can use during your lifetime to fund any unforeseen needs by surrendering accumulated PUAs. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps Plan Introducing Max New York Lifes regular premium unit linked life insurance childrens plan SMART Steps, which will help you plan for your child's future in a SMART way and takes your worries away. This plan offers the required financial protection for your loved ones if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

17

SMART Steps Plus A regular premium unit linked life insurance plan, Max New York Lifes SMART Steps Plus will help you plan for your child's higher education, marriage, and financial security. This plan offers no-compromise 360 degree protection to your children even if you are not alive and provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future. SMART Steps Single Premium Plan Max New York Lifes SMART Steps Single Premium policy will help you plan for your child's future in a SMART and organized manner. Apart from offering 360 degree protection to your child if you are not alive, this plan also provides an unmatched investment opportunity by way of well managed investment funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in the future.

Investment Plans: Life Maker Premium Investment Plan The latest Life Maker Premium Investment Plan gives you a lot of choices - especially when you are looking for Great life style, Big Home, your own well established Business and top of all - Protection for your family. Our Unit linked Life Insurance plan can be the financial cornerstone for your objectives. Max New York Life Insurance provides you a powerful investment-cum-insurance plan where you can direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns. You can choose to invest your premiums in one or more of these funds, basis your risk taking ability.

Life Maker Platinum - a Unit Linked Investment Plan With the Life Maker Platinum - a Unit Linked Investment Plan , you can meet all your financial needs, without the tedium of managing multiple products. In this plan, you can direct your investments in the customized unit linked funds such as equities, money market instruments, investment grade corporate bonds, and government securities. These funds offer a wide range of returns basis market returns.

18

You can also choose to invest your premiums in one or more of these funds, basis your risk taking ability. Life Maker Gold Plan This plan enables you to choose an attractive investment fund, enjoy free loyalty units and tax benefits on premiums and maturity value. Life Maker Gold Plan also provides you insurance cover, in which, your nominee will get the Sum Assured plus the Fund Value to your nominee(s), in case of unfortunate event of your death. Our Plan also offers you the flexible investment feature, where you can choose one out of four attractive funds options and also change your risk return profile of your existing investments by switching across funds with our high customization feature. Life Invest Plan This policy will provides you comprehensive protection from 3 Ds i.e. Death, Disease and Disability. Apart from loyalty units and tax benefits, the maturity feature of this policy will also pay you the fund value. Flexible Investment with choice of four attractive fund options, lump sum investment in your plans through top ups as per your cash flow, increasing death benefits, flexibility to choose premium payment terms are few of the benefits you can enjoy through this policy. SMART Assure Plan Our smart assure plan also enables you to make partial withdrawals at the time of unexpected expenses. The switching feature of this policy provides you the facility to change the investment pattern by moving from one fund to other fund(s) amongst the funds offered under this contract

Retirement Plans: Easy Life Retirement (Par) Plan Catering to the diverse set of needs of various customers looking for retirement planning, Max New York Life offers some splendid retirement plans, which would suit their budget and lifestyle. Max New York Life's Easy Life Retirement Plan Regular Premium/Single Premium (Participating) Policy is designed to help you save money for your retirement. It also provides you with an opportunity to take home a regular retirement income (i.e. pension). SMART Invest Pension Plan Offering competitive returns to secure the golden years of your life, Max New York Life's SMART Invest Pension Plan is a comprehensive unit
19

linked pension plan to meet your post retirement financial needs, ensuring you complete peace of mind. One-third of the corpus can be commuted at vesting age the amount commuted are eligible for tax exemption u/s 10A.

Health Plans: LifeLine-MediCash Plan Max New York Life's Lifeline-MediCash health Insurance plan provides you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). LifeLine-MediCash Plus Plan Presenting Lifeline - MediCash Plus health Insurance plans from MNYL that provide you support by giving you hospital cash benefit, whenever you are hospitalized. Through this plan you will get a fixed benefit towards hospitalization, ICU and recuperation (post hospitalization). And the surgical expenses of a fixed Lump-sum amount will be paid under LifeLine MediCash Plus for more than 400 listed surgeries that you may undergo. LifeLine-Wellness Plan Max New York Life's LifeLine-Wellness is a health plan, which would provide you 360-degree benefit in terms of long tenure of coverage, coverage for 10 critical illnesses, and permissible tax benefit under an Income Tax Act.

SOME OF THE OTHER PLANS ARE: SAVINGS PLANS: W hole Life Participating 20 Year Endowment (Par) Endowment to Age 60 (Par)
20

 Life Gain Plus 20 (Par) Life Gain Plus 25 (Par) Life Pay Money Back Life Gain Endowment Life Partner RURAL PLANS: Max Suraksha Easy Term Policy STRATEGIC PRODUCTS PLANS:

Bancassurance Super Saver Bond Capital Builder

Additional Distribution Max Mangal Max Vriksha Capital Builder

Max Amsure Future Builder Family Money Back Bonus Builder Business Builder RESEARCH METHODOLOGY TITLE:
21

To Study Potential of Life Insurance Industry in Mumbai.

TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on K M Dastur Re-Insurance Brokers Pvt. Ltd.. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied. OBJECTIVE Main objective of the research is to have an analysis of life insurance industry in Mumbai. To determine customer perception towards private insurance

companies and their expectation from private insurance companies. To Determine reasons behind opting for an Insurance.

SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with Reliance in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

22

SIGNIFICANCE TO THE INDUSTRY: This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends. SIGNIFICANE FOR THE RESEARCHER: To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for K M Dastur Re-Insurance Brokers Pvt. Ltd.

RESEARCH DESIGN NON-PROBABILITY EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire.

23

SAMPLING METHODOLOGY Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc. Sample size: The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Bhubaneswar due to time constraints.

Sampling Area: The area of the research was Mumbai, India.

LIMITATIONS OF THE RESEARCH

24

1. The research is confined to a certain parts of Delhi and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

25

DATA ANALYSIS & INTERPRETATION NUMBER OF PEOPLE HAVING INSURANCE RESPONSE Yes No Total NO. OF RESPONDENTS 70 30 100 SHARE (%) 70% 30% 100%

NO 30%

[F ig1]
Y ES 70%

INTERPRETATION Of the sample size of 100 surveyed respondents 70% of the respondents are having Insurance policy. 30% of the respondents are either not having any Insurance policy at present or their policy is already matured.

TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE LIFE POLICY NON LIFE POLICY
26

NO. OF RESPONDENTS 75 25

SHARE (%) 75 25

BOTH

45

45

INTERPRETATION 75% of the respondents have only Life Insurance Policy. while 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANYS NAME L.I.C. RELIANCE LIFE INSURANCE ICICI PRUDENTIAL SBI LIFE Max New York Life TOTAL NO.OF RESPONDENT 78 3 10 7 2 100
27

SHARE (%) 78 3 10 7 2 100

SBI MNYL [Fig3] 2% ICICI 7% 10% REL 3% LIC 78%

INTERPRETATION 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

28

REPUTATIO N OF COMPANY 11% LOW PREMIUM 30% EASY ACCESS TO AGENTS 7% INTERPRETATION

[Fig 5]

MONEY BACK GUAARENT EE 15% LARGER RISK COVERAgE 37%

Majority of the respondent (37%) found larger risk coverage as the most attracted feature of the all.

Minimum respondents (7%) opted for easy access to agents.

29

PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDENTS 81 74 100 SHARE (%)

A saving tool A tax saving device A tool to protect your family

81% 74% 100%

[F ig6]
150 100 50 0 A savings tool A tax saving device

As aving s tool, 81

A taxs aving device, 74

A tool to protect yoou r fam ily , 100

A tool to protect yoour fam ily

INTERPRETATION 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device. But 100% of the respondents are with the view that Insurance is a tool to protect your family. REASONS BEHIND TAKING INSURANCE RESPONSE Tax saving
30

NO. OF RESPONDENTS 80

SHARE (%) 50%

Saving / Investment Family protection

80 100

50.% 100%

120 100 80 60 40 20 0 Tax saving

[F ig8] Saving/Investm
Tax saving, 80 ent, 80

Family protection, 100

Saving/Investm ent

Fam ily protection

INTERPRETATION 80% of the Respondents opted for Insurance for tax saving benefits and saving/investment both. But all of them, i.e. 100% of the respondents have opted for insurance for their family protection.

31

NUMBER OF RESPONDENTS PAYING TAX RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 100 0 100 SHARE (%) 100% 0% 100%

INTERPRETATION Of the sample size of 100 respondents, all the respondents are paying tax.

32

PEOPLES OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%

INTERPRETATION 67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans. 29.5% feel that Indian Insurance companies are Non-user friendly.
33

26.5%

feel

that

services

of

Indian

Insurance

companies

are

Unsatisfactory. 35.75% of the respondents are with the view that Indian Insurance companies are Non-aggressive. 24% of the respondents feel that products and services of Indian Insurance companies is Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

34

WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY RESPONSE NO. OF RESPONDEN TS 82 71 81 49 SHARE (%) 82% 71% 81% 49%

A trusted name Friendly service & responsiveness Good plans Accessibility

[F ig15]
100 50 0 A trusted Nam e Friendlyservice & responsiveness Good plans Accessibility

INTERPRETATION 82% customers look for a Trusted name in a company for insurance. 81.5% customers look for a good plan in a company for insurance. Friendly service & responsiveness and Accessibility are also important factors looked by customers in a company. FINDINGS & RECOMMENDATIONS

1. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India.

35

2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3. Since K M Dastur Re-Insurance Brokers Pvt. Ltd. is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers

GROWTH POTENTIAL At present life insurance penetration in India is quite low 3% of GDP.

PHASE OF TRANSITION Life Insurance industry is under the phase of infancy after 50 years of monopoly. Competition from within and other sectors of financial market. Needs environmental support till it reaches a comfort zone

36

CONCLUSION Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high penetration of print, radio and Television Ad campaigns over the years is beginning to have its impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times. The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative player like K M Dastur Re-Insurance Brokers Pvt. Ltd. LIC has

never been known for prompt service or customer oriented methods and K M Dastur Re-Insurance Brokers Pvt. Ltd. can build on these factors.

37

BIBLIOGRAPHY

WEBSITES REFERRED
www.maxnewyorklife.com www.irdaindia.org www.thehindubusinessline.com

38

39

QUESTIONNAIRE
NAME:_________________________ ADDRESS:______________________ ______________________________OCCUPATION:___________________ 1. ARE YOU EMPLOYED? YES NO If YES, only then proceed 2. DO YOU HAVE ANY INSURANCE POLICY? YES NO 3. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANKTHEM) a) LIC c) SBI LIFE INSURANCE VYSYA LIFE e) MAX NEW YORK LIFE INSURANCE AIG LIFE g) ANY OTHER ________( Specify) b) ICICIPRUDENTIAL d) ING f) TATA

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN? (RANK THEM) a) COVER FUTURE UNCERTAINITY c) FUTURE INVESTMENT OTHER _________ (Specify) b) TAX DEDUCTIONS d) ANY

40

6. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT? (RANK THEM) a) LOW PREMIUM RISK COVERAGE c) MONEY BACK GUARNTEE COMPANY e) EASY ACCESS TO AGENTS _________ (Specify) b) LARGER d) REPUTATION OF f) ANY OTHER

7. WHATS YOUR PERCEPTION ABOUT INSURANCE ? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE 8. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED SAVING TOOL c) NOT RESPONDING 9. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED SAVING TOOL c) NOT RESPONDING 10. YES 11. DO YOU PAY TAXES? NO WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) b) BANK DEPOSITS d) SECURITIES, i.e. Bonds, MFs f) INSURANCE
41

b) NOT SATISFIED

b) NOT SATISFIED

a) FIXED ASSETS c) JEWELLERY e) SHARES

12.

. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? b) SECURITY

a) SAVING & RETURNS c) TAX BENIFITS 13.

WHATS THE RIGHT AGE TO BUY INSURANCE ? b) AFTER 35 Yrs d) ANYTIME

a) AFTER 25 Yrs c) AFTER 45 Yrs 14.

HOW WOULD YOU RATE INDIAN INSURANCE COs? b) NON-USER FRIENDLY d) NON-AGGRESSIVE f) GOOD

a) RIGID PLANS c) UNSATISFATORY SREVICES e) SATISFACTORY g) VERY GOOD

15. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY

16. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES 17. b) NO c) UNCERTAIN

ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING THANK YOU.

42