A PROJECT REPORT ON INDIA INFOLINE (ICICI PRUDENCIAL) IN PRIVATE LIFE INSURANCE SECTOR AT INDIA INFOLINE.

COM, JHANSI SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF MARKETING MANAGEMENT (MMM) SUBMITTED BY SHWETANK SHARMA (BATCH 2006-2008)

VISHWAKARMA INSTETUTE OF MANAGMENT S. No. 309/310, Kusgaon (Bk.),, Pune.

CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that this project titled Market Potential Of INDIA INFOLINE (ICICI PRUDENCIAL In Private Life Insurance Sector at, Jhansi is a bonafide work carried out by Mr. Shwetank sharma student of MMM of Vishwkarma Institute of management, Kusgaon (Bk.), Lonavala, Pune in the partial fulfillment for the degree of Master of Marketing Management, University of Pune.He has worked under our Guidance and direction. His work is found to be good and complete in all respect.

Prof. sharad Jhosi (Director)

ACKNOWLEDGEMENT

All oneself whether it is big or small can undertake no study. Behind this project too is guidance of those individual people to whom I will be always grateful.

I express my deep sense of gratitude to India infoline Group for giving me the opportunity of doing this project in their well-renowned organization

Which otherwise would not have been easy. I am deeply indebted to Mr. Subham Singh, Sales Manager in India infoline Life Insurance who selected me as a trainee to work with him and guided me throughout the project. I am grateful and would like to express sincere thanks to my project guide for their valuable suggestion and guidance throughout this project. This tremendously helped me in execution of the entire Project.

Mr. (MMM 2006-2007)

CONTENTS

Sr.No NO. 01. 02 03. 04 05. 06 07. 08. 09 10. 11. 12. 13. 14.

TITLE Executive Summary Objective & Scope Introduction Industry profile Company Profile Products Research Methodology Data Analysis And Interpretation Observation Findings And limitation Recommendation Conclusion Bibliography Annexure -

PAGE 6 8 9 11 14 20 21 29 42 45 47 49 50 52

EXECUTIVE SUMMARY
The Indian Financial Sector is one of the sunrise sectors, which holds great future for country. If nurtured carefully it has the potential to put India on the world map as a hub of global financial activities. Though India s large insurance market is captured by LIC, but in the recent flow of privatization India infoline insurance services ltd is also acquiring trust in people. Project involved a blend of marketing where we have to interact with all Kinds of customers such as retailers, wholesalers, real estate agents, builder & Other service group to gather information on site and tell them what are the new opportunities and benefits with India I Life Insurance if they insured with India infoline group. The main task of project involved carrying the fieldwork where we supposed to visit all kind of retail outlets as well as non-retail business in major localities. The first half of my project involved in India infoline is to carry the field work along with campaigning in different localities in Pune region. Data collected from fieldwork were submitted to the company for future requirements and also to get back to the customers. The study undertaken for two months. As I have to target specifically to retailers and whole sellers who form the majority portion of the total market. We were given more than one month for the collection of data and scanning of data. This report shows detail work on following areas - Pune Satara Road - Chinchwad - Dhole Patil Road - Bibwewadi Area - Bund Garden Road

For this purpose Feedback form was prepared which gave a broader Picture of the potential customers about their existence investment segments. The form shows details regarding current savings and planning for their future events

Through this form we got to know what people think about private insurance Sector and get the idea about different flows in the insurance sector because it has seen that during interview few people had an idea about private players in the insurance sector and their developments. The questionnaire contains various aspects like profession, education, current savings, number of dependants, address Etc.

OBJECTIVE:The objective of the project is Market Research & Find out the Market Potential for India infoline in Private Life Insurance Sector . For this we have to understand consumer response, time frame, personality constraints and emotions for assessing the potential of Private insurance sector. So specifically the project target is to focus of the high network income groups and retailers for their investment portion. It also contains scanning the market thought form/questionnaire making proper evaluation of given information and going back to them showing how they need to plan their future and the direction to achieve their desired goals.

SCOPE:The study of potential of insurance business is concerned with market Study i.e. research and fieldwork. This study is going to help the India Infoline Life Insurance to find out market potential with other private companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private companies as well as overall analysis. Availability of time was also taken into account while deciding the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic

INTRODUCTION
Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty of the financial loss. We don t have any command on uncertainties. This makes it essential that we think in favor of a device that becomes instrumental in spreading the loss. It is in this context that we think about insurance. Protection against the possible chances of generating uncertain losses. It eliminates worries and miseries of losses or destruction of property and death. Life insurance is a contract between the insurer and a life insurance company, which provides insurer a predetermined amount in case of his death, accidents or any uncertain events during the contract term. Buying insurance is extremely useful if one is the principle-earning member in the family and unfortunate premature demise, his family can remain financially secured because of the life that he have purchased. The primary purpose of life insurance is therefore protection of the family for uncertain events for future. Life insurance is also seen as a tool to plan effectively for the future years, insurer s retirement, education of the children s and their future needs. Today, market offers insurance plans that not just cover insurer and his family but at the same time it helps to grow his wealth too. Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it accurately and manage it wisely. Insurance sector has a great Importance in the developing economy like India as it gives boost to the growth of economy. As it is becoming biggest investor in long gestation infrastructure development projects at macro level and generating saving habits in the individuals at micro level. The annual growth rate is of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.

Introduction to the topic:The main purpose of the project is basically to find the market potential for India infoline insurance services sector Jhansi. It included extensive market surveys and meetings mainly with the retailers, whole sellers, builder and other merchants from different regions of Jhansi. The project is divided in two parts, for the first half is contains period of 30 days in which I done research, surveys and meetings with the people to collect data. In the later part I met various retailer, whole sellers, real estate agents, stockiest and few others to promote and make them aware about the company. The survey also helped to provide details regarding various opportunities and different plans and policies that are coming up in the company. This was useful information for them to get the benefits and to know future growth prospects if they join with the company. Importance of the topic The topic gives broader picture about who is the market leader among all the insurance providers. The study is all about finding out the market potential of India infoline insurance service sector for the Jhansi region. India infoline group recently launched India infoline Insurance services along with old mutual plc. as join venture. There are already 13 private insurance companies in the Indian market & what is the present position of India infoline insurance services could be determined by market research and fieldwork. This data will be helpful to determine what the problems are & competitions India infoline is facing in the market, how people perceive India infoline services group as life insurance providers.

INDUSTRY PROFILE :- INSURANCE SECTOR REFORMS:1) Structure: Government stake in the insurance companies to be brought down to 50%. 2) Competition: Private companies with a minimum paid up capital of Rs. 1billion should be allowed to enter the industry. No company should deal in both Life and General Insurance though a single entity. Foreign companies may be allowed to enter the industry in collection with the domestic companies. Postal Life Insurance Should be allowed to operate in the rural market. Only One State Life Insurance Company should be allowed to operate in each state. 3) Regulatory Body: - The Insurance Act should be changed - An Insurance Regulatory body should be set up - Controller of Insurance (Currently a part from the Finance Ministry) Should be made independent. 4) Investments: Mandatory Investment of LIC Life Fund in government securities to be reduced from 75% to 50%. 5) Customer service: LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance; industry should be opened up to competition.

ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS:Insurance sector is seeing a strong growth in terms of penetration, life insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact that India boosts a saving rat of around 25 percent, less than 5 percent is spent on insurance. The insurance landscape in India is undergoing major changes. Close to foreign competition since nationalization in 1956,the life insurance industry had been protected from competitive pressures. Now with the re-opening of the sector, several new players have entered the scene. Besides, India infoline Insurance services ltd there is 13 other private players working in insurance sector which are as follows. 1. AMP Sanmar Assurance Company Ltd. Indian Promoter Reliance Group Foreign Insurer None 2. AVIVA Life Insurance Company Ltd. Indian Promoter DABUR Foreign Insurer AVIVA, UK 3. BAJAJ Allainz Life Insurance Company Ltd. Indian Promoter BAJAJ Auto. Foreign Insurer ALLIANZ, Germany 4. BIRLA Sun Life Insurance Company. Indian Promoter ADITYA BIRLA Group Foreign Insurer SUN LIFE, Canada 5. HDFC Standard Life Insurance Company. Indian Promoter- HDFC Foreign Insurer Standard Life, UK 6. ICICI Prudential Life Insurance Indian Promoter ICICI Bank Foreign Insurer Prudential, UK 7. KOTAK MAHINDRA OLD MUTUAL Life Insurance Indian Promoter- KOTAK Bank Foreign Insurer- OLD MUTUAL, South Africa.

8. Max New York Life Insurance Company Indian Promoter MAX India Foreign Insurer NEW YORK LIFE, US 9. MET LIFE Insurance Company Indian Promoter J & K Bank Foreign Insurer MET LIFE, US 10. SAHARA Life Insurance Company Ltd Indian Promoter SAHARA INDIA Ltd. Foreign Insurer NONE 11. SBI Life Insurance Indian Promoter SBI Foreign Insurer CARDIFF, France 12. TATA AIG Indian Promoter TATA Group Foreign Insurer AIG, US 13. ING Vysya life insurance co. ltd.

COMPANY PROFILE ABOUT INDIA INFOLINE GROUP

We are a one-stop financial service shop, most respected in quality of its advice, personalized services and cutting edge technology. India infoline ltd is listed on both the leading stock exchanges in India, vis. The stock exchange, Mumbai(BSE) and national stock exchange(NSE). The India infoline grop , compaision the holding company, India infoline Led and its subsidiaries, Straddles the entire financial services space with offerings ranging from Equity research, Equity and derivatives trading, Portfolio management services, Mutual funds,Life insurance, Fixed deposits, Gol bonds and other small saving one of India's leading financial institutions was born in 1995 as India infoline.com. This company was promoted by Mr.Nirmal Jain . It's been a steady and confident journey to growth and success. India infoline is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 2,840 crore, employs around 20000 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 264 cities and towns in India. Company is also listed in NSE/BSE. JOURNEY OF INDIA INFOLINE.COM The India infoline group was born in 1995 as India infoline.com . this company.India infolineLtd is listed on both the leading stock exchange in India,The stock Exchange, Mumbai(BSE) and the National Stock Exchange(NSE).The India infoline group ,comprising the holding company,India Infoline Ltd and its subsidiaries, Straddles the entire financial services space with offerings ranging ranging form Equty research , 1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting. 1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market. 1990 The Auto Finance division is started. 1992 The Investment Banking Division is started. Takes over FICOM, one of India s financial retail marketing networks. 1992 Enters the Funds Syndication sector. 1995 Brokerage and distribution business incorporated into a separate company Kotak Securities. Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company. 1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The

launch of Matrix Information Services Limited marks the Group s entry into information distribution. 1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business. Kotak Securities launches kotakstreet.com its on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation Launches Insurance Services. 2003 Kotak Mahindra Finance Limited converts to bank 2005 In October 2005, Kotak group acquired the 40% stake in Kotak prime held by ford Credit international (FCL) and FCL acquired the stake in ford Credit Kotak Mahindra (FCKM) held by kotak group. 2006 In May 2006, Kotak group bought 25% stake held by Goldman sachs in Kotak capital and kotak securities.

GROUP OF COMPANIS:KOTAK MAHINDRA BANK LTD. KOTAK MAHINDRA CAPITAL COMPANY LTD. INTERNATIONAL SUBSIDIARIES KOTAK MAHINDRA PRIME LTD. KOTAK SECURITIES LTD. KOTAK MAHINDRA ASST MANAGEMENT COMPANY.

GROUP MANAGEMENT Mr. Nirmal Jain - Executive vice chairman & managing
director Mr. Shivaji Dam Mr. C. Jayaram Mr. Dipak Gupta

ABOUT OLD MUTUAL Old Mutual was established more than 150 years ago and
has developed into an International services group w focused on asset gathering and asset

management. The old mutual Group offers a diverse range of financial services geographies: South Africa, the United States and United Kingdom. The company is listed on the London Stock Exchange capitalization of approximately $6 billon and is member of the elite FSTS 100 index. In the 2003 rankings of the w corporations Fortune magazine, Old mutual climbed 87 places to position number 366 and was also listed 14th company in the world. Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, and insurance operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africa operations. In the USA Old Mutual is one of the top ten fixed annuity business offering an array of specialist asset management. The company s US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Garrard as one the leading private business in the UK. The Old Mutual Group has the ability to cater for variety of consumer segments and offers a comprehensive and in products for all income groups. Kotak Mahindra old mutual life insurance Ltd. is a joint venture between kotak Mahindra Bank ltd.(KMBL), and Old Mutual plc. At Kotak life insurance, we aim to help customers take important financial decision at every stage in life by offering them a wide range of innovation life insurance products, to make them financially independent.

ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LTD.

Kotak Mahindra old mutual life insurance Ltd. is a joint venture between

kotak Mahindra Bank ltd. (KMBL), and Old Mutual plc. At Kotak life insurance, we aim to help customers take important financial decision at every stage in life by offering them a wide range of innovation life insurance products, to make them financially independent.

LOGO:VISION:Global Indian financial services brand - Indian understanding: global standards of delivery Most preferred employer/business partner - Home for bright minds and entrepreneurial skill Most trusted financial services company - High standard of compliance/corporate governance Value & not just size - Business driven with both value and growth in mind OUR MANAGEMENT TEAM FOR LIFE INSURANCE Mr. Gaurang Shah -Managing Director Mr. G Murlidhar -Chief Financial Officer Mr. Nandip Vaidya -Vice President - Sales Mr. Arun Patil -Vice President - Sales & Management Development Mr. Eksteen de Waal -Head Sales Training 20

PRODUCTS: Individual
Kotak Term Plan Kotak Privileged Assurance Plan Kotak Preferred Term Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Riders Kotak Premium Return Plan

Group
Employee Benefits Kotak Term Plan Kotak Credit-Term Grouplan Kotak Complete Cover Grouplan Kotak Gratuity Grouplan Kotak Superannuation Grouplan

Rural
Kotak Gramin Kotak Gramin Bima Yojana.

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RESEARCH METHODOLOGY INTRODUCTION:

Marketing Research is a systematic and objective study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects.

RESEARCH PROCESS:For assessing the customer response following market research process followed Step 1:Define the objective: First step is defining the objective i.e. Market Potential for Kotak Life Insurance researcher covered most of the areas, which had been instructed by the company. Step 2:Develop research plan: The second step was to develop the most efficient plan for gathering the needed information. i) Data sources: Both primary & secondary data are taken into consideration. Primary data are data gathered from field for specific research project. ii) Research approach: I have mainly collected the primary data through survey & few cases by observations. iii) Research instrument: Questionnaire is used to collect most of the primary data. iv) Sample plan: after deciding on the research approach the instruments I decided sampling plan this cause for three decisions. a) Sampling unit: project was concentrated on retailers, whole sellers, real estate agents, builder service group & others for the sampling unit 22 b) Sampling size: project consists of 125 respondents from different areas & from different professions. c) Contact method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails, telephone, personal visit or online interview. In my project research it was mostly personal interview and telephonic interviews was held. Step 3:Collect the information: Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information and might not be available and must be contacted or replaced. Others refused to co-operate and finally some respondents will be biased or dishonest to share information. Step 4:Analyze the information: The collected information needs to be analyzed thoroughly to extract the findings that will be useful to the company. Again this data must be

tabulated and averages/measures are computed from various variables. Step 5:Present the findings: And the last step is present the findings that are relevant to the

METHOD OF DATA COLLECTION:- 1) Primary Data;

The major source for collecting primary data has been the interviews held with retailers, whole sellers, real estate agents, stockiest and few other segment of market. The maximum prospects were visited directly at the shops and interviewed provided they had time to spare. Some of them interviewed via tale calling and few were interviewed after taking prior permission and appointment. The information given by them was satisfactory and relevant to the subject.

2) Secondary Data:
The major sources of secondary data are; INSTITUTION: - Business Magazines - News Paper - Annual Reports / Company Periodicals REFERENCES: - Internet, Company websites - Telephone Directory (BSNL and TATA Indicom) - References from company employees - Annual Reports / Company Periodica

QUESTIONNAIRE METHOD This method is used to collect general information

about the company like total number of employees viz. agents, sales executive, management trainees, front line staff etc. Sales executive provided this information. This information helped to know the basic knowledge about the company before doing the actual research.

RESEARCH DESIGN:
SAMPLING UNITS: This combines all those respondents in the market who can be the future prospects of being a part as an insurer of Kotak Mahindra Life Insurance. Some of them are retailers, whole sellers, real estate agents, stockiest and few others from different commercial areas of PUNE. As instructed by the company- following are the few segments. 1. Business Class - Retailers - Wholesalers - Construction/ Builders 2. Agents - Postal Agents - General Insurance Agents - Travel Agents - Real Estate Agents 3. Employees / Service Class - Professor / Teachers 25 - Office Staff, Banks Staff - Government Employees 4. Mutual Fund Agents 5. Tax Consultants 6. Investment Consultants 7. Share Brokers 8. Financial Advisors 9. Chartered Accountants / Company Secretaries 10. Others- House wife, Medical Representatives Out of these various segments, the researcher targeted following

- Retailers - Whole sellers - Real Estate Agents - Stockiest - Others Note: It was instructed by the company to target the people having net income between 15000 and above p.m. The required data for above segments is to be such, which is helpful to know the background & potential of the prospects. For all that researcher collected information as there, Name Present Age Address Ph No.- E-mail- Brief Information about family - Personal Goals - Retirement Plans 26 - Present monthly expenses - Existing Investment Avenues

SAMPLE DESIGN Sample Size (125)

Retailers (34) Wholesalers (23) REAL ESTATE AGENT (20) Others STOCKIEST (38) (12

DATA COLLECTION TECHNIQUES: Questionnaire Method - Telephone Interview Method QUESTIONNAIRE METHOD The individual questionnaire of the survey was designed for population between age group of 18 60 years of age who can be the prospect of becoming Kotak Mahindra Life Insurance clients from different areas of PUNE. In total 125 questionnaires were completed who were the samples for research work. SAMPLE SIZE: The sample size of the respondents was taken as 165 considering the scope and constraints of the study. FIELD WORK: The fieldwork was conducted for a period of 60 days in different commercial areas of PUNE. Interviews were conducted from respondents across segments, above 18 years of age and as per their convenience. So as to contrive representative sample. The interview and presentation mode by researcher were carried for the duration of 20 minutes.

DATA ANALYSIS AND INTERPRETATION 1. INVESTMENT OPTIONS

PREFERRED BY RESPONDENTS. Sr. No Investment Options No. Of Respondents 1 Insurance 41 2 Fixed Deposit 14 3 Post 8 4 PPF 10 5 Mutual Fund 19 6 Shares 18 7 Other 15 TOTAL 125 RESPONDENTS FOR INVESTMENT OPTION 41 14 10 8 19 18 15 Insurance Fixed Deposit Post PPF Mutual Fund Shares Other Out of total respondents, maximum i.e. 41 respondents think Insurance is a safer option to invest the money. It gives them long-term benefits for not only individual but for the entire family. Thus, people find insurance safe and better option rather than investing in FD, Post, Mutual Funds, Shares etc. 30 2. ESSENTIAL OF LIFE INSURANCE

RESPONSE No. Of Respondents YEAS 95 NO 30 TOTAL 125 ESSENTAIL OF LIFE INSURANCE 76% 24% YEAS NO Around 76 % of the total on of respondents thinks that insurance is essential part of the life. But for everyone the need for life insurance is different reasons.24% of the respondents think other options are better than life insurance. Following factors determine the need for life insurance. 31 Factors to determine need for L.I No. Of respondents Security/Safety 63 Savings 23 Long term Investments 18 Tax Saving 21 Total 125 EASSENTIAL OF LIFE INSURANCE 51% 18% 14% 17% Security/Safety Savings Long term Investments Tax Saving Still majority i.e. 51% people think that insurance is essential. However safety is major concern when people see insurance as investment