1.

INTRODUCTION TO INSURANCE AND NJ INDIA INVEST PVT

LTD.

Insurance is a contract, represented by a policy, in which an individual or entity receives

financial protection or reimbursement against losses from an insurance company. Insurance
constitutes a very important aspect of any person's or family's financial life. It is an important
pillar ensuring the continued financial well-being of a family in case of any eventuality. Though
we all are familiar with the term "insurance", there exists a huge gap in "what the customer
needs" and "what the customer gets". The need is for an unbiased approach to insurance
advisory keeping 'you' at the centre and then providing you with quality advisory and customer
services.

NJ Wealth is one of India's leading and most successful network of distributors in the financial
services industry. Started in 2003, NJ Wealth seeks to reach out to the common man and extend
the opportunity to create wealth through an empowered network of financial products
distributors – the NJ Wealth Partners. To its Partners, NJ Wealth provides a full service,
comprehensive business platform with end-to-end solutions critical for success in financial
products distribution practice. With its compelling set of offerings covering every area of
distribution practice, NJ Wealth has managed to successfully transform the lives of many small
and big distributors. To the common man, NJ Wealth offers a comprehensive wealth
management platform with a wide choice of financial and non-financial products. Backed by
high levels of excellence in operational and service standards, NJ Wealth offers customers of
its Partners, with solutions that truly make a difference. Driven by the strong vision of 'Creating
Wealth and Transforming Lives', NJ Wealth's constant endeavour is to build on the ideas that
are meaningful & effective in scaling business challenges, seizing available opportunities and
serving the interests of the customer. The NJ Wealth family has grown steadily and today it
has over 33,000+ NJ Wealth Partners, spread across 95 branches in 19 states in India with over
25,00,000+ investors, and over INR 65,000+ crores of mutual fund assets under advice.
Irrespective of the numbers though, it is trust in us which fuels the passion for creating solutions
with excellence that touch many lives, day after day.

NJ Insurance Brokers, realises this "need gap" and aims to fulfil it by providing customers with
360o service offering to identify, satisfy and manage insurance needs of customers. The vision
is to help customers create wealth and enjoy overall financial well-being. NJ Insurance brokers
seeks to achieve this vision by offering a comprehensive basket of insurance products to meet
a wide range of insurance needs backed by quality IT platform and world class claim settlement
services. The tagline 'Beyond Circumstances' epitomises the idea to provide clients with
financial security and continued financial well-being. NJ Insurance Brokers has appointed
Broker Qualified Persons who work with customers in managing and fulfilling their insurance
needs. Currently there are about 800+ Broker Qualified Persons in 38 offices across India. NJ
Insurance Brokers Pvt. Ltd. is a licensed broker by IRDA of India. NJ Insurance Brokers
leverages from the rich investment management and financial products distribution experience
of over 25 years of NJ India Invest Pvt. Ltd, one of the leading players in the financial services
industry.
 2. PROBLEM STATEMENT (ISSUES, CHALLENGES,
DIFFICULTIES

The Insurance market in India was an under developed market that was only tapped by the state
owned LIC till the entry of private insurers. Insurance industry, as on 1.4.2000, comprised
mainly two players: the state insurers – Life Insurance Corporation of India and General
Insurers, the General Insurance Corporation of India. In India, insurance is generally
considered as a tax-saving device instead of its other implied long-term financial benefits.
Indian people are prone to investing in properties and gold followed by bank deposits. They
selectively invest in shares also, but the percentage is very small. Even to this day, Life
Insurance Corporation of India dominates Indian insurance sector. The insurance penetration
reached 3.69% in 2017. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under insured with no flexibility or
transparency in the products.
The entry of the private insurers the rules of the game have changed. Private sector players
backed by foreign expertise have made the Indian insurance market more vibrant. The growing
popularity of the private insurers shows in other ways. Twenty-four private Life Insurance
Companies have been registered since the year 2000 till now. They are coining money in new
niches that they have introduced. The state-owned companies still dominate segments like
endowments and money back policies. But in the annuity or pension products business, the
private insurers have already wrested over 30.64% of the market as of 2018.
Finally, this study attempts to see in customer perception towards private Insurance
Companies. It also pin points the various causes for failure on the part of public sector insurance
companies to sufficiently penetrate the market for insurance in India.

3. OBJECTIVES OF THE STUDY

• To examine the Indian Insurance market and make a comparative study of the
operations and claim settlement procedures of Public Sector and Private Sector
Insurance Companies.
• To analyse the shift in customer perceptions and preference towards Private Sector
Life Insurance Companies and to investigate the causes there to.
• To understand why people prefer private insurance companies in a government
dominant market.
• To offer suggestions to customers about the long-term financial benefits and security
offered by insurance and be a catalyst to change the perceptions of customers so as to
make them aware of the need for insurance.
 4. NEED FOR THE STUDY

This study aims at making an in-depth study of Life Insurance Companies only, both in the
Public Sector and Private Sector. It deals with products offered by insurance companies to
attract customers. Examining the Indian Insurance market and make a comparative study of the
operations and claim settlement procedures of Public Sector and Private Sector Insurance
Companies. Analysing the shift in customer perceptions and preference towards Private Sector
Life Insurance Companies and to investigate the causes there to. Understand why people prefer
private insurance companies in a government dominant market. Offer suggestions to customers
about the long-term financial benefits and security offered by insurance and be a catalyst to
change the perceptions of customers so as to make them aware of the need for insurance.

5. METHODOLOGY FOLLOWED

This study is based on both primary and secondary data. Data required for the survey was
collected from various publications, articles, journals, related to insurance.

Primary data will be collected by a questionnaire asking the people (who have an insurance
policy) to know why people prefer private insurance products in a public sector dominant
market.

6. POSSIBLE EXPECTED OUTCOME OF THE PROJECT

To know which sector in India has been ineffective in meeting insurance needs of the 11 huge
Indian population. The vast majority of Indian population is still unaware of the need of
financial security offered by life insurance. The introduction of private insurance companies
has brought in a vibrant competition in the insurance segment, so as to enhance customer
satisfaction through increased consumer choice and lower premiums, while ensuring the
financial security of the insurance market. There is a shift in customer preference towards
private insurance companies. To know quality of services offered by Private insurance
companies and their efficiency in claim settlements have enhanced customer loyalty towards
private life insurance companies when compared to Life Insurance Corporation of India. The
performance of private companies has paved the way for a future when private companies show
a higher profitability than public sector.