ldquoStudy on the behaviour of customer while investing in insurance sectorrsquorsquo

An Project Report

Submitted in the partial fulfillment of the requirement for the award of the Degree

of Master of Business Administration

2009-2011

Submitted By Under the Guidance of

VAIBHAV VASHISTH MS GEETU TUTEJA

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT amp RESEARCH NEW DELHI

An ISO 90012000 Certified Institute

ldquoArdquo Grade Accreditation by NAAC

Student Undertaking

This is to certify that I have completed the Project Report titled ldquoStudy on the

behaviour of customer while investing in insurance sectorrsquorsquounder the guidance

of MS SEEMA SINGHAL in the partial fulfillment of the requirement for the award of

Master of Business Administration of Bharati Vidyapeeth University Pune This is an

original piece of work amp I have neither copied from anywhere nor submitted it earlier

elsewhere

Students Signature

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo under my guidance amp direction

To the best of my knowledge and belief the data amp information presented by himher in the project has

not been submitted earlier

Name of the Internal Guide

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo

It has been completed under the guidance of MsGEETU TUTEJA (Internal Guide) and MsSEEMA

SINGHAL (Corporate Mentor)

We are thankful to PACL INDIA LIMITED for having allowed our student to undergo project work training

under the guidance of Ms SEEMA SINGHAL

Dr Sachin S Vernekar

(Director)

Table of Contents

PART ndash 1

INSURANCE [14-28]

Insurance 15

About Insurance 16

Characteristics of Insurance 16-17

About General Insurance 17-18

Life Insurance in India 18-20

Essential Features 20-22

Function of Insurance 22-26

Working of Life Insurance 27-28

PART ndash 2

ABOUT pearl INSURANCE [30-56]

PART ndash 3

RESEARCH METHODOLOGY [58-71]

Research Methodology 59

Objective of Study 60-62

SWOT Analysis 63-71

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Student Undertaking

This is to certify that I have completed the Project Report titled ldquoStudy on the

behaviour of customer while investing in insurance sectorrsquorsquounder the guidance

of MS SEEMA SINGHAL in the partial fulfillment of the requirement for the award of

Master of Business Administration of Bharati Vidyapeeth University Pune This is an

original piece of work amp I have neither copied from anywhere nor submitted it earlier

elsewhere

Students Signature

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo under my guidance amp direction

To the best of my knowledge and belief the data amp information presented by himher in the project has

not been submitted earlier

Name of the Internal Guide

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo

It has been completed under the guidance of MsGEETU TUTEJA (Internal Guide) and MsSEEMA

SINGHAL (Corporate Mentor)

We are thankful to PACL INDIA LIMITED for having allowed our student to undergo project work training

under the guidance of Ms SEEMA SINGHAL

Dr Sachin S Vernekar

(Director)

Table of Contents

PART ndash 1

INSURANCE [14-28]

Insurance 15

About Insurance 16

Characteristics of Insurance 16-17

About General Insurance 17-18

Life Insurance in India 18-20

Essential Features 20-22

Function of Insurance 22-26

Working of Life Insurance 27-28

PART ndash 2

ABOUT pearl INSURANCE [30-56]

PART ndash 3

RESEARCH METHODOLOGY [58-71]

Research Methodology 59

Objective of Study 60-62

SWOT Analysis 63-71

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo under my guidance amp direction

To the best of my knowledge and belief the data amp information presented by himher in the project has

not been submitted earlier

Name of the Internal Guide

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo

It has been completed under the guidance of MsGEETU TUTEJA (Internal Guide) and MsSEEMA

SINGHAL (Corporate Mentor)

We are thankful to PACL INDIA LIMITED for having allowed our student to undergo project work training

under the guidance of Ms SEEMA SINGHAL

Dr Sachin S Vernekar

(Director)

Table of Contents

PART ndash 1

INSURANCE [14-28]

Insurance 15

About Insurance 16

Characteristics of Insurance 16-17

About General Insurance 17-18

Life Insurance in India 18-20

Essential Features 20-22

Function of Insurance 22-26

Working of Life Insurance 27-28

PART ndash 2

ABOUT pearl INSURANCE [30-56]

PART ndash 3

RESEARCH METHODOLOGY [58-71]

Research Methodology 59

Objective of Study 60-62

SWOT Analysis 63-71

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Certificate

This is to certify that the Project Report titled ldquoStudy on the behaviour of customer

while investing in insurance sectorrsquorsquo submitted in the partial fulfillment of the

requirement for the award of the Degree of ldquoMaster of Business Administrationrdquo from ldquoBharati

Vidyapeeth University Punerdquo

It has been completed under the guidance of MsGEETU TUTEJA (Internal Guide) and MsSEEMA

SINGHAL (Corporate Mentor)

We are thankful to PACL INDIA LIMITED for having allowed our student to undergo project work training

under the guidance of Ms SEEMA SINGHAL

Dr Sachin S Vernekar

(Director)

Table of Contents

PART ndash 1

INSURANCE [14-28]

Insurance 15

About Insurance 16

Characteristics of Insurance 16-17

About General Insurance 17-18

Life Insurance in India 18-20

Essential Features 20-22

Function of Insurance 22-26

Working of Life Insurance 27-28

PART ndash 2

ABOUT pearl INSURANCE [30-56]

PART ndash 3

RESEARCH METHODOLOGY [58-71]

Research Methodology 59

Objective of Study 60-62

SWOT Analysis 63-71

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Table of Contents

PART ndash 1

INSURANCE [14-28]

Insurance 15

About Insurance 16

Characteristics of Insurance 16-17

About General Insurance 17-18

Life Insurance in India 18-20

Essential Features 20-22

Function of Insurance 22-26

Working of Life Insurance 27-28

PART ndash 2

ABOUT pearl INSURANCE [30-56]

PART ndash 3

RESEARCH METHODOLOGY [58-71]

Research Methodology 59

Objective of Study 60-62

SWOT Analysis 63-71

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

RESEARCH DESIGN [84-94]

Research Design 84-85

Source of Data 86-89

Sampling Plan 90-91

CHAPTER 4

Data Analysis 92-94

Observation 95

Recommendation 96

QUESTIONNAIRE [97-108]

Questionnaire ndash 1 98-102

Bibliography 109-110

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

EXECUTIVE SUMMARY

The Indian Insurance Industry is broadly segmented into public and private

insurance companies Before year 2000 only public sector insurance companies

were allowed to do business in India But after year 2000 insurance sector was

thrown open for private insurance companies as well

But as of now there now around 19 private life insurance companies and around 9

private non-life insurance companies doing business in India

This report is prepared with an aim to provide an overview of present Indian

Insurance Industry Also with LIC heading the public life insurance companies

and PEARL INSURANCE SERVICES LIMITED (PISL) NIRMAL CHHAYA

INSURANCE SERVICES LIMITED (THE CORPORATE AGENT OF MAX

NEW YORK INSURANCE SERVICES LIMITED) Subsidiary of PACL INDIA

LIMITED heading the private life insurance players this report also provides a

comparative analysis of Life policies

Based on this report the prospecting insurance customers would get help in

choosing the right insurance products for themselves

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

CHAPTER-1

INDUSTRY OVERVIEW

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

INSURANCE INDUSTRY

Insurance is pooling of risk and compensation of lasses to some extent

I - Innovation

N - Need Based

S - Solution Oriented

U - Urgent

R - Rational

A - Assume

N - Neutral

C - Compensation

E - Effective

MEANING OF INSURANCE

Insurance in law and economics is a form of risk management primarily used to hedge against

the risk of a contingent loss Insurance is defined as the equitable transfer of the risk of a loss

from one entity to another in exchange for a premium and can be thought of as a guaranteed and

known small loss to prevent a large possibly devastating loss An insurer is a company selling

the insurance an insured or policyholder is the person or entity buying the insurance The

insurance rate is a factor used to determine the amount to be charged for a certain amount of

insurance coverage called the premium Risk management the practice of appraising and

controlling risk has evolved as a discrete field of study and practice

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property Insurance is a collective bearing of risk Insurance is a financial device to spread the

risks and losses of few people among a large number of people as people prefer small fixed

liability instead of big uncertain and changing liability

Insurance can be defined as a ldquolegal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event which

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

may be certain or uncertainrdquo The other party called insured pays in exchange a fixed sum known

as premium

Insurance is desired to safeguard oneself and onersquos 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

CHARACTERISTICS OF INSURANCE-

1 Sharing of Risk

2 Cooperative device

3 Evaluation of Risk

4 Payment of event of happening of any special event

5 The amount of payment depends on the size and type of loss

6 The success of Insurance business depends on the law of large number of

people insured against similar risk

7 Insurance is a business which spreads the loss and the risk of few people in the large

number of people

8 The insurance is a plan in which insured transfer his risk to insurer

9 Insurance is a legal contract

IMPORTANCE OF INSURANCEInsurance constitutes one of the major segments of the financial market Insurance services play

predominant role in the process of financial intermediary Today insurance industry is one of the

most growing sectors in India There is lot of potential in the Indian Insurance Industry There

are many issues which require study The scope of the study of insurance industry of India

would be very great as there are ongoing developments in the industry after the opening of the

sector The major issue right now is the hike in FDI (Foreign Direct Investment) limit from 26

to 49 in the insurance sector Government may in near future allow 49 FDI in Insurance

This would lead to more capital inflow by foreign partners Another major issue is the effects on

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

LIC after the entry of private players in the market Though market share of LIC has been

affected it has improved in terms of efficiency There are number of other hot topics like

penetration of Health Insurance Rural marketing of insurance new distribution channels new

product ranges insurance brokersrsquo regulation incentive scheme of development officers of LIC

etc So it offers lot of scope for studying the insurance industry Right now the insurance industry

has great opportunities in a country like India or China which huge population Also the

penetration of insurance in India is very low in both life and non-life segment so there is lot

potential to be tapped Before starting the discussion on insurance industry and related issues we

have to start with the basics of insurance So first we understand what is insurance How the

word lsquoinsurancersquo is different from the word lsquoassurancersquo Etc

PRINCIPLES OF INSURANCE

An insurance contract is based on some basic principles of insurance

(1) Principle of ldquoUberrima Fidesrdquo or Principle of utmost good faith

It means ldquomaximum truthrdquo Both the parties should disclose all material information regarding

the subject matter of insurance

(2) Principle of indemnity

This means that if the insured suffers a loss against which the policy has been made he shall be

fully indemnified only to the extent of loss In other words the insured is not entitled to make a

profit on his loss

(3) Principle of subrogation

This means the insurer has the right to stand in the place of the insured after settlement of claims

in so far as the insuredrsquos right of recovery from an alternative source is involved The insurer

before the settlement of the claim may exercise the right In other words the insurer is entitled to

recover from a negligent third party any loss payments made to the insured The purposes of

subrogation are to hold the negligent person responsible for the loss and prevent the insured from

collecting twice for the same loss The concept of lsquoThird Party Claimsrsquo is based on the same

principle

(4) Principle of causa proxima

The cause of loss must be direct and an insured one in order to claim of compensation

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

(5) Principle of insurable interest

The assured must have insurance interest in the life or property insured Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking place and

if the event does not take placed he remains in the same old position

HISTORY OF INSURANCEThe concept of insurance is believed to have emerged almost 4500 years ago in the ancient land

of Babylonia where traders used to bear risk of the carvan by giving loans which were later

repaid with interest when the goods arrived safely

The concept of insurance as we know today took shape in 1688 at a place called Lloydrsquos Coffee

House in London where risk bearers used to meet to transact business This coffee house became

so popular that Lloydrsquos became the one of the first modern insurance companies by the end of

the eighteenth century

Marine insurance companies came into existence by the end of the eighteenth century These

companies were empowered to write fire and life insurance as well as marine The Great Fire of

London in 1966 caused huge loss of property and life With a view to providing fire insurance

facilities Dr Nicholas Barbon set up in 1967 the first fire insurance company known as the Fire

office

The early history of insurance in India can be traced back to the Vedas The Sanskrit term

lsquoYogakshemarsquo (meaning well being) the name of Life Insurance Corporation of Indiarsquos

corporate headquarters is found in the Rig Veda The Aryans practiced some form of

lsquocommunity insurancersquo around 1000 BC

Life insurance in its modern form came to India from England in 1818 The Oriental Life

Insurance Company was the first insurance company to be set up in India to help the widows of

European community The insurance companies which came into existence between 1818 and

1869 treated Indian lives as subnormal and charged an extra premium of 15 to 20 per cent The

first Indian insurance company the Bombay Mutual Life Assurance Society came into existence

in 1870 to cover Indian lives at normal rates

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

The Insurance Act 1938 the first comprehensive legislation governing both life and non-life

branches of insurance were enacted to provide strict state control over insurance business This

amended insurance Act looked into investments expenditure and management of these

companies

By the mid- 1950s there were 154 Indian insurers 16 foreign insurers and 75 provident societies

carrying on life insurance business in India Insurance business flourished and so did scams

irregularities and dubious investment practices by scores of companies As a result the

government decided to nationalize the life assurance business in India The Life Insurance

Corporation of India (LIC) was set up in 1956 The nationalization of life insurance was

followed by general insurance in 1972

TIME LINE IN INSURANCE HISTORY

(MAJOR LANDMARKS)

1048766 1818 British introduced the life insurance to India with the establishment of the Oriental Life

Insurance Company in Calcutta

1048766 1850 Non life insurance started with Triton Insurance Company

1048766 1870 Bombay Mutual Life Assurance Society is the first India owned life insurer

1048766 1912 The Indian Life Assurance Company Act enacted to regulate the life insurance business

1048766 1938 The Insurance Act was enacted

1048766 1956 Nationalization took place Government took over 245 Indian and foreign insurers and

provident societies

1048766 1972 Non-life business nationalized General Insurance Corporation (GIC) came into being

1048766 1993 Malhotra committee was constituted under the chairmanship of former RBI chief R N

Malhotra to draw a blue print for insurance sector reforms

1048766 1994 Malhotra committee recommended reentry of private players

1048766 1997 IRDA (Insurance Regulatory and Development Authority) was set up as a regulator of

the insurance market in India

1048766 2000 IRDA started giving license to private insurers ICICI Prudential HDFC were first

private players to sell insurance Policies

1048766 2001 Royal Sundaram was the first non-life private player to sell an insurance policy

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

1048766 2002 Bank allowed to sell insurance plans as TPAs enter the scene insurers start setting non-

life claims in the cashless mode

MEANING OF LIFE INSURANCE

There are three parties in a life insurance transaction the insurer the insured and the owner of

the policy (policyholder) although the owner and the insured are often the same person

Another important person involved in a life insurance policy is the beneficiary The beneficiary

is the person or persons who will receive the policy proceeds upon the death of the insured

Life insurance may be divided into two basic classes ndash term and permanent

bull Term life insurance provides for life insurance coverage for a specified term of years for a

specified premium The policy does not accumulate cash value

bull Permanent life insurance is life insurance that remains in force until

The policy matures unless the owner fails to pay the premium when due

bull Whole life insurance provides for a level premium and a cash value table included in the

policy guaranteed by the company The primary advantages of whole life are guaranteed death

benefits guaranteed cash values fixed and known annual premiums and mortality and expense

charges will not reduce the cash value shown in the policy

bull Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return A universal life policy includes a cash account Premiums

increase the cash account

If you want insurance protection only and not a savings and investment product buy a term life

insurance policy

If you want to buy a whole life universal life or other cash value policy plan to hold it for at

least 15 years

Cancelling these policies after only a few years can more than double your life insurance costs

Check the National Association of Insurance Commissioners website (wwwnaicorgcis) or your

local library for information on the financial soundness of insurance companies

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

HISTORY OF LIFE INSURANCE

Risk protection has been a primary goal of humans and institutions throughout history

Protecting against risk is what insurance is all about Over 5000 years ago in China insurance

was seen as a preventative measure against piracy on the sea Piracy in fact was so prevalent

that as a way of spreading the risk a number of ships would carry a portion of another ships

cargo so that if one ship was captured the entire shipment would not be lost

In another part of the world nearly 4500 years ago in the ancient land of Babylonia traders

used to bear risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely In 2100 BC the Code of Hammurabi granted legal status to the

practice It formalized concepts of bottomryrdquo referring to vessel bottoms and ldquorespondentrdquo

referring to cargo These provided the underpinning for marine insurance contracts Such

contracts contained three elements a loan on the vessel cargo or freight an interest rate and a

surcharge to cover the possibility of loss In effect ship owners were the insured and lenders

were the underwriters

Life insurance came about a little later in ancient Rome where burial clubs were formed to cover

the funeral expenses of its members as well as help survivors monetarily With Romes fall

around 450 AD most of the concepts of insurance were abandoned but aspects of it did

continue through the Middle Ages particularly with merchant and artisan guilds These provided

forms of member insurance covering risks like fire flood theft disability death and even

imprisonment

During the feudal period early forms of insurance ebbed with the decline of travel and long-

distance trade But during the 14th to 16th centuries transportation commerce and insurance

would again reemerge Insurance in India can be traced back to the Vedas For instance

yogakshema the name of Life Insurance Corporation of Indias corporate headquarters is

derived from the Rig Veda The term suggests that a form of community insurance was

prevalent around 1000 BC and practiced by the Aryans

And similar to ancient Rome burial societies were formed in the Buddhist period to help

families build houses and to protect widows and children

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

MODERN INSURANCE

Illegal almost everywhere else in Europe life insurance in England was vigorously promoted in

the three decades following the Glorious Revolution of 1688 The type of insurance we see today

owes its roots to 17th century England Lloyds of London or as they were known then Lloyds

Coffee House was the location where merchants ship owners and underwriters met to discuss

and transact business deals

While serving as a means of risk-avoidance life insurance also appealed strongly to the

gambling instincts of Englands burgeoning middle class Gambling was so rampant in fact that

when newspapers published names of prominent people who were seriously ill bets were placed

at Lloydrsquos on their anticipated dates of death Reacting against such practices 79 merchant

underwriters broke away in 1769 and two years later formed a ldquoNew Lloydrsquos Coffee Houserdquo that

became known as the ldquoreal Lloydrsquosrdquo Making wagers on peoples deaths ceased in 1774 when

parliament forbade the practice

TYPES OF INSURANCE

Any risk that can be quantified can potentially be insured Specific kinds of risk that may give

rise to claims are known as perils An insurance policy will set out in detail which perils are

covered by the policy and which is not Below are (non-exhaustive) lists of the many different

types of insurance that exist A single policy may cover risks in one or more of the categories set

out below For example auto insurance would typically cover both property risk (covering the

risk of theft or damage to the car) and liability risk (covering legal claims from causing an

accident) A homeowners insurance policy in the US typically includes property insurance

covering damage to the home and the owners belongings liability insurance covering certain

legal claims against the owner and even a small amount of coverage for medical expenses of

guests who are injured on the owners property

Business insurance can be any kind of insurance that protects businesses against risks Some

principal subtypes of business insurance are (a) the various kinds of professional liability

insurance also called professional indemnity insurance which are discussed below under that

name and (b) the business owners policy (BOP) which bundles into one policy many of the

kinds of coverage that a business owner needs in a way analogous to how homeowners

insurance bundles the coveragersquos that a homeowner needs

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

1 Auto insurance

Auto insurance provides property liability and medical coverage

a) Property coverage pays for damage to or theft of your car

b) Liability coverage pays for your legal responsibility to others for bodily injury or

property damage

c) Medical coverage pays for the cost of treating injuries rehabilitation and sometimes lost

wages and funeral expenses

2 Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters In

some geographical areas the standard insurances exclude certain types of disasters such as flood

and earthquakes that require additional coverage

3 Health

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other

publicly-funded health programs will cover the cost of medical treatments Dental insurance like

medical insurance is coverage for individuals to protect them against dental costs In the US

dental insurance is often part of an employers benefits package along with health insurance

4 Accident Sickness and Unemployment Insurance

Disability insurance policies provide financial support in the event the policyholder is

unable to work because of disabling illness or injury It provides monthly support to help pay

such obligations as mortgages and credit cards

Disability overhead insurance allows business owners to cover the overhead expenses of

their business while they are unable to work

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Total permanent disability insurance provides benefits when a person is permanently

disabled and can no longer work in their profession often taken as an adjunct to life insurance

Workers compensation insurance replaces all or part of a workers wages lost and

accompanying medical expenses incurred because of a job-related injury

5 Casualty ndash

Casualty insurance insures against accidents not necessarily tied to any specific property

Crime insurance is a form of casualty insurance that covers the policyholder against

losses arising from the criminal acts of third parties For example a company can obtain crime

insurance to cover losses arising from theft or embezzlement

Political risk insurance is a form of casualty insurance that can be taken out by businesses

with operations in countries in which there is a risk that revolution or other political conditions

will result in a loss

6 Life -

Life insurance provides a monetary benefit to a decedents family or other designated

beneficiary and may specifically provide for income to an insured persons family policies often

allow the option of having the proceeds paid to the beneficiary either in a lump sum cash

payment or an annuity

7 Property -

This tornado damage to an Illinois home would be considered an Act of God for insurance

purposes Property insurance provides protection against risks to property such as fire theft or

weather damage This includes specialized forms of insurance such as fire insurance flood

insurance earthquake insurance home insurance inland marine insurance or boiler insurance

1048766 Final Thoughts

Even though the American insurance industry was greatly influenced by Britain the US market

developed somewhat differently from that of the United Kingdom Contributing to that was

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Americas size land diversity and the overwhelming desire to be independent As America

moved from a colonial outpost to an independent force from a farming country to an industrial

nation the insurance business developed from a small number of companies to a large industry

Insurance became more sophisticated offering new types of coverage and diversified services

for an increasingly complex country

KEY FEATURES OF LIFE INSURANCE

1) Nomination -

When one makes a nomination as the policyholder you continue to be the owner of the policy

and the nominee does not have any right under the policy so long as you are alive The nominee

has only the right to receive the policy monies in case of your death within the term of the policy

2) Assignment -

If your intention is that your policy monies should go only to a particular person you need to

assign the policy in favor of that person

3) Death Benefit -

The primary feature of a life insurance policy is the death benefit it provides Permanent policies

provide a death benefit that is guaranteed for the life of the insured provided the premiums have

been paid and the policy has not been surrendered

4) Cash Value -

The cash value of a permanent life insurance policy is accumulated throughout the life of the

policy It equals the amount a policy owner would receive after any applicable surrender

charges if the policy were surrendered before the insureds death

5) Dividends -

Many life insurance companies issue life insurance policies that entitle the policy owner to share

in the companys divisible surplus

6) Paid-Up Additions -

Dividends paid to a policy owner of a participating policy can be used in numerous ways one of

which is toward the purchase of additional coverage called paid-up additions

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

7) Policy Loans -

Some life insurance policies allow a policy owner to apply for a loan against the value of their

policy Either a fixed or variable rate of interest is charged This feature allows the policy owner

an easily accessible loan in times of need or opportunity

8) Conversion from Term to Permanent -

When in need of temporary protection individuals often purchase term life insurance If one

owns a term policy sometimes a provision is available that will allow her to convert her policy

to a permanent one without providing additional proof of insurability

9) Disability Waiver of Premium

Waiver of Premium is an option or benefit that can be attached to a life insurance policy at an

additional cost It guarantees that coverage will stay in force and continue to grow

BENEFITS OF LIFE INSURANCE

1) Risk cover -

Life Insurance contracts allow an individual to have a risk cover against any unfortunate event of

the future

2) Tax Deduction -

Under section 80C of the Income Tax Act of 1961 one can get tax deduction on premiums up to

one lakh rupees Life Insurance policies thus decrease the total taxable income of an individual

3) Loans -

An individual can easily access loans from different financial institutions by pledging his

insurance policies

4) Retirement Planning -

What had provided protection against the financial consequences of premature death may now be

used to help them enjoy their retirement years Moreover the cash value can be used as an

additional income in the old age

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

5) Educational Needs -

Similar to retirement planning the cash values that flow from ones life insurance schemes can be

utilized for educational needs of the insurer or his children

ROLE OF LIFE INSURANCE IN THE GROWTH OF THE ECONOMY

The Life Insurance Industry has an enviable track record among public sector units It has a

Consistent profit and dividend paying record accompanied by a steady growth in its financial

resources Through investments in the Government sector and socially- oriented sectors the

Industry has contributed immensely to the nations development The industry is recognized as

one of the largest financial Institutions in the country The ventures initiated by the industry in

the areas of Mutual Fund Housing Finance has done exceedingly well in recent years To protect

the countrys foreign exchange reserves the reinsurance arrangement are so organized that

maximum retention is made possible within the country while at the same time protecting

interests of the policy holders

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

If we talk in terms of India only then the result will be something like this-

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY (IRDA)The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of the

Government of India based in Hyderabad It was formed by an act of Indian Parliament known

as IRDA Act 1999 which was amended in 2002 to incorporate some emerging requirements

Mission of IRDA as stated in the act is to protect the interests of the policyholders to regulate

promote and ensure orderly growth of the insurance industry and for matters connected therewith

or incidental thereto

The law of India has following expectations from IRDA

1 To protect the interest of and secure fair treatment to policyholders

2 To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments) for the benefit of the common man and to provide long term funds

for accelerating growth of the economy

3 To set promote monitor and enforce high standards of integrity financial soundness fair

dealing and competence of those it regulates

4 To ensure that insurance customers receive precise clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard

5 To ensure speedy settlement of genuine claims to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery

6 To promote fairness transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players

7 To take action where such standards are inadequate or ineffectively enforced

8 To bring about optimum amount of self-regulation in day to day working of the industry

consistent with the requirements of prudential regulation

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Duties Powers and Functions of IRDA

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force the

Authority shall have the duty to regulate promote and ensure orderly growth of the insurance

business and re-insurance business

(2) Without prejudice to the generality of the provisions contained in sub-section (1) the powers

and functions of the Authority shall include

(a) Issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(b) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender value

of policy and other terms and conditions of contracts of insurance

(c) Specifying requisite qualifications code of conduct and practical training for intermediary or

insurance intermediaries and agents

(d) Specifying the code of conduct for surveyors and loss assessors

(e) Promoting efficiency in the conduct of insurance business

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business

(g) Levying fees and other charges for carrying out the purposes of this Act

(h) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and other

organizations connected with the insurance business

(i) control and regulation of the rates advantages terms and conditions that may be offered by

insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act 1938 (4 of 1938)

(j) Specifying the form and manner in which books of account shall be maintained and statement

of accounts shall be rendered by insurers and other insurance intermediaries

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

(k) Regulating investment of funds by insurance companies

(l) Regulating maintenance of margin of solvency

(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries

(n) Supervising the functioning of the Tariff Advisory Committee

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f)

(p) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector and

(q) Exercising such other powers as may be prescribed

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

COMPANYrsquoS OVERVIEW

ABOUT PACL INDIA LIMITED

PACL India Limited was incorporated on 13th February 1996 with the registrar of companies

Jaipur under Companies Act 1956 having its Registered Office 22nd 3rd floor Amber Tower

Sansar Chand Road Jaipur - 302 004 and Corporate office at 7th Floor Gopaldas Bhawan 28

Barakhamba Road New Delhindash110001 The PACL is popularly known with its brand name

Pearls PACL India Limited is Indias Premier ISO-90012008 amp ISO 140012004 Real Estate

Development Company with Multi-dimensional portfolio ranging from commercial to retail and

residential segments The company is also engaged in sale and purchase of agricultural land and

supported with huge land bank

Vision

TO develop vast chunk of barren land into cultivable with the help of modern scientific

technology To provide possible support to the Indian economy for the infrastructural

development and to provide qualitative residential and commercial properties to the customers

on affordable price Utmost to fulfill its social responsibilities by providing employment

opportunities career growth to the weaker section of the society and to generate avenues to earn

revenues to the youth specially belonging to rural areas

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

STRENGTHS

I Financial Acumen - Holds a stable and diversified portfolio and has received some of the

highest ratings in financial strength from industryrsquos independent rating agencies

II Disciplined fund management - Years of experience in asset management and a strong

track record in managing funds - backed by the acclaimed expertise of Old Mutual plc

III Innovativeness - Known for being an innovator in providing world-class pragmatic

financial solutions with a constant focus on customization and flexibility

IV Unrelenting Customer Focus - A highly committed sales force with customer satisfaction

as the key driving force - a major differentiator

V Transparency in Services - Daily declaration of fund performances regular performance

benchmarking well regulated asset management and monthly newsletter on market updates

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

WEAKNESSES

Industry in nascent stage

Rural areas still not covered

Not very known among Indian population

Lack of credibility among the people because Kotak being a private player

Premiums are high as compared to its competitors

Very few branches in the country

Products

raquo The policy doesnrsquot have the surrender option before third year

raquo Plan does not offer any guarantee or assured return

raquo Product profile is not very comprehensive

raquo Mortality management and administrative charges are sky scrapping as compared to its

competitors

OPPORTUNITIES

Liberalization of Indian economy

As the industry is growing the whole market is virgin

The whole private sector is opened to be trapped even though the competition is fierce

from government owned insurance companies

Itrsquos a volume business that is even if the company has few good corporate the turnover

cease to increase by manifold

Products

raquo Preserver funds look good due to comfortable liquidity in the economy and there is little

chance hike in short-term rate by RBI

raquo Finance minister unveiled a budget favoring consumer spending boosting demand and

therefore higher economic growth

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

THREATS

The government players will become aggressive thus growth is going to be tough

Entry of other players is not ruled out

Apprehension towards Kotak being a private life insurance company

We expect the industry to rationalize in future that is mergers and acquisitions will

happen which will impact the industry and Kotak life fortunes

Products

raquo Past performance of these plans is not indicative of the future performance of the plan

raquo The sum invested in the funds is subject to market risks and there can be no assurance

that the objective of plan will be achieved

raquo All benefits payable under the policy are subject to tax laws and other financial

enactment as they exist from time to time

FIVE CORE VALUES OF

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

PACL LIFE INS (NIRMAL CHHAYA INSSERVICES)

The PACL Life Insurance shares five core values understanding excellence unity and

responsibility These values which have been part of the Groups beliefs and convictions from its

earliest days continue to guide and drive the business decisions of PACL companies The Group

and its enterprises have been steadfast and distinctive in their adherence to business ethics and

their commitment to corporate social responsibility This is a legacy that has earned the Group

the trust of many millions of stakeholders in a measure few business houses anywhere in the

world can match

NIRMAL CHHAYA GROUP has always sought to be a value-driven organization These values

continue to direct the Groups growth and businesses The five core PACL values underpinning

the way we do business are

raquo Integrity We must conduct our business fairly with honesty and transparency

Everything we do must stand the test of public scrutiny

raquo Understanding We must be caring show respect compassion ands humanity for our

colleagues and customers around the world and always work for the benefit of India

raquo Excellence We must constantly strive to achieve the highest possible standards in our

day-to-day work and in the quality of the goods and services we provide

raquo Unity We must work cohesively with our colleagues across the Group and with our

customers and partners around the world building strong relationships based on tolerance

understanding and mutual cooperation

raquo Responsibility We must continue to be responsible sensitive to the countries

communities and environments in which we work always ensuring that what comes from the

people goes back to the people many times over

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

SERVICES OF PACL INDIA LIMITED

PEARLS REAL ESTATE

Understand the need of fast changing world Pearls has come up with customized residential and

commercial complexes keeping in mind stringent quality policy and international standard

infrastructure practices

Pearls group is involved in number of prestigious projects all over India We are committed to

deliver the projects in time following international construction standards the current ongoing

construction projects are in progress at Noida Delhi Zirakpur Mohali Bathinda Mumbai

Pune Vadodara Madurai etc

During the past few decades we have seen frequent changes in the trend of urbanization social

amp cultural values and brain drain from underdeveloped developing countries to developed

countries

Recent market survey and research conducted on the matter indicates reversal in the trend again

People after gaining prosperity in the entire field have started searching for peace amp prosperity

in modern civilized villages which are very close to the Mother Nature and also where all the

ultra ndash modern facilities of the urbanization are available

To find the air and the water exhilarating to be refreshed by a morning walk or and evening

saunter to be thrilled by the stars at night to be dated over a birds nest or a wildflower in

spring- these are some of the rewards of the simple life

RESEARCH AND DEVELOPMENT

The company has strong in-house RampD and accordingly varied agricultural activities are being

carried out based on geographical location of Farms eg production of Wheat Paddy Babycorn

and Vegetables in Northern India and Mangoes Pomegranate Sapota Amla Cashew Nuts etc

in Southern States

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

PEARLS TOURISM LIMITED

Pearls Tourism Limited is professionally managed destination management company intends to

build its position by strengthening all the quality aspect of tourism industry We cater total travel

solution for all kind of groups be it small or large The company is a part of Famous Pearls

Group engaged in the sector of Real Estate Insurance News Network and Entertainment

Business Our presence almost all over India gives us a quick and prompt access to the farthest

corner of the country thus ensuring the best quality of service

Pearls Tourism Ltd an ISO 90012000 is committed towards best quality of services We are

located at the most prestigious and busiest business location of New Delhi city We have a well-

equipped and modern office with enough staff to cater all need of travel solutions We are

connected with all major Airlines big hotel chains and individual hotels car and coach rental

companies We have a team of professional who are specialist in their respective field of

operation Business travel being our forte we provide complete customized travel solution

covering all the aspect of travel need under one roof Our team of professional takes care of

every query in a very professional way yet blended with a very PERSONAL TOUCH which we

believe is the most important aspect of travel trade We understand your need and cater to every

query accordingly We offer services beyond providing traditional travel advice and documents

In fact we manage the travel needs of our corporate

PEARL INSURANCE SERVICES LIMITED

PACL Insurance Services Ltd (PISL) was incorporated on 14th May 2001 in Jaipur with the

avowed object of promoting insurance business It proposes to act as a catalyst to growth in this

sector It pursues life insurance business and provides necessary support to insurers to discharge

their statutory obligations in rural and unorganized sector by creating awareness about benefits

of insurance to economically vulnerable and backward class

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

PACL Insurance Services Ltd (PISL) a subsidiary of PACL India Ltd was formed to conduct

insurance business all over India for life as well as non-life products PISL has tied up with

MAX NEW YORK LIFE INSURANCE CO LTD

PISL is a committed services organization which along with has jointly ventured into marketing

of insurance products of MAX NEW YORK LIFE INSURANCE CO LTD All over India

Pearl insurance services ltd(PISL) acts as an corporate agent for marketing the insurance

products of the max new York life insurance co ltd with the name of NIRMAL CHHAYA

INSURANCE SERVICES LIMITED

PEARL MEDIA

Pearl group has recently entered in the media sector It started the news

channel naming P7 NEWS

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

ABOUT MAX NEW YORK LIFE INSURANCE

New Delhi Max New York Life Insurance one of Indiarsquos leading life insurance companies

introduced lsquoLIFELINE Healthy Familyrsquo a health insurance plan the most comprehensive long

term insurance coverage for hospitalization surgeries and critical illness for the entire family

under one single policy

raquo With the launch of lsquoHealth Familyrsquo Max New York Life also became the first and the

only company to offer benefits for congenital disorder It also introduces some other significant

firsts and bests to the industry

raquo - Highest number of Hospitalization Days and Daily Cash limits

raquo - Highest number of critical illness covered

raquo - Health insurance coverage for the longest duration ndash 10 years

raquo - No upper limit on the family size

raquo - Yearly increases on surgical benefits even after claims

raquo - Guaranteed renewability till the age of 75 years

raquo - Relevant and segmented benefit for parents

raquo ldquoMax New York Life Insurance Company is excited to offer this comprehensive health

insurance solution for the entire family that responds realistically to their needs which are far

from being met With the growing incidence of diseases due to lifestyle changes health

insurance is recognized as one of the primary protection needs for all the members of the

familyrdquo said Max New York Life Insurance Senior Vice President amp Head - Health amp

Retirement ndash Sumit Rai Announcing the launch of lsquoHealthy Familyrsquo Sumit Rai added ldquoWith a

complete and comprehensive portfolio of Health Insurance solutions backed by best in class

services the company have emerged as a leader in setting quality benchmarks

raquo Max New York Life works on the principle of trust and imparts the same values to its

Agent advisors Company work closely with the customers and the process of aiming to provide

relevant solutions for their needs begins with understanding them better and recognizing their

needsrdquo

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

raquo Whatever public need Max New York Life has a plan for everyone Because they

understand everyone has different needs There plans are designed towards meeting your long

term financial goals amp aspirations amp helping public fulfill dreams amp commitments

raquo Max New York Life Insurance Company Ltd is a joint venture between Max India

Limited one of Indias leading multi-business corporations and New York Life International the

international arm of New York Life a Fortune 100 company The company has positioned itself

on the quality platform In line with its vision to be the most admired life insurance company in

India it has developed a strong corporate governance model based on the core values of

excellence honesty knowledge caring integrity and teamwork

THE LINEAGE

raquo Started its operations in 1845

raquo It is expert in life insurance business for more than 160 years

raquo It is a largest company in USA and ranked 82 in the fortune 100 company lists

raquo The company led Million Dollar Round Table (MDRT) for 53 consecutive years

raquo It has the insurance and investment sales of Rs 1 85328 Cores in 2007

raquo Cash and invested Assets Rs72 960 Cores

raquo Ranks 78 on the prestigious Fortune 500 List(2007)

raquo Ranks 2 on fortunersquos Global List of ldquoMost admired Life Insurance Companiesrsquo(2007)

raquo Over US $ 1468 billion in surplus and reserves amp over US $ 280 billion in assets under

management

raquo Insured Millions of lives globally

raquo Has never failed to deliver to its policy holders inspite of world wars famine drought

and 911

raquo Amongst the top two fortunes Max is ldquoMost Admiredrdquo Life Insurance Company

MAJOR MILESTONES ACHIEVED

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

raquo Sold life insurance Cover of over Rs 82000 Core

raquo Strong focus on quality

raquo First Indian Company to be given the ISO 9001 2000 Certification

raquo Nation wide presence with 480 offices in 261 + cities

raquo A strong foot prints of over 54000 Agent Advisors

raquo Over 285 million Policies sold

raquo New York Life Insurance has been the 1 in MDRT membership for over 50 years in a

row

raquo Incorporated in 2000 Max New York Life started commercial operation in 2001 In line

with its values of financial responsibility Max New York Life has adopted prudent financial

practices to ensure safety of policyholders funds The Companys paid up capital as on 30th

April 2009 is Rs 1782 core

Max New York Life has multi-channel distribution spread across the country Agency

distribution is the primary channel complemented by partnership distribution banc assurance

alliance marketing and dedicated distribution for emerging markets The Company places a lot of

emphasis on its selection process for agent advisors which comprises four stages - screening

psychometric test career seminar and final interview The agent advisors are trained in-house to

ensure optimal control on quality of training The company currently has around 94594 agent

advisors at 711 offices across 389 cities

raquo The company also has 36 referral tie-ups with banks 24 partnership distribution and

alliance marketing relationships each Max New York Life has put in place a unique hub and

spoke model of distribution to deepen our rural penetration This is the first time such a model

has been put in place for rural marketing of insurance The company has 137 offices dedicated to

rural areas

Max New York Life offers a suite of flexible products It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need Besides this the company offers 6

products and 7 riders in group insurance business

raquo Max New York Life Insurance Company-

raquo Present in384 cities with 578 offices across India

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

raquo The company has Sum Assured of more than Rs 96000 Cores

raquo It had sold more than 35 Lakh policies

raquo The company currently has more than 13188 employees

raquo It has Asset under Management of more than Rs 4500 Cores

raquo The company has Employee strength of more than 15000

COMPETITORS WITH THEIR MARKET SHARE

If we look at the status of MAX NEW YORK LIFE INSURANCErsquoS market share in

comparison of other private company in comparison of premium earned-

No Insurer Market Share

1 Bajaj Allianz 756

2 ICICI Prudential 735

3 HDFC Standard Life 287

4 SBI Life 231

5 Birla Sun Life 189

6 Tata AIG 129

7 Max New York 123

8 Aviva 114

9 Kotak Mahindra OLD Mutual 111

10 ING Vysya 079

11 Reliance Life 054

12 MetLife 040

13 Sahara Life 006

14 Shriram Life 003

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

If we talk the growth of Insurance industryrsquos private players in recent years the data will reflect-

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

PRODUCTS amp PLANS

Children Plans

Parenting is all about creating the right environment for your children to grow in The care amp love

that you shower on them must also be accompanied with the proper planning for their future

Helping your child win the battle of life is the best gift that a Parent can give to his child Max

New York Life with their children plans makes it possible for you to achieve this dream of giving

your child a happy and financially secured future Following are the products which will provide

financial support to your children while pursuing their dream careers getting married buying a

home etc

Childrens Endowment to 18 (Par)

Childrens Endowment to 24 (Par)

SMART Stepstrade

SMART Stepstrade Plus

SMART Stepstrade Single Premium

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Retirement PlansPeople retire but needs dont Max New York Life with their retirement plans comes

forward to support you in your old age and makes the unfulfilled dreams of your life come

true Retirement is like a second life where you can fulfill all your dreams which you

have been pushing aside in your past because of lack of time Our retirement plans make

sure that you maintain your comfortable lifestyle and dont compromise with your wishes

because of lack of financial resources in your old age

Easy Lifetrade Retirement (Par)

SMART Investtrade Pension

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Health Plans

A very common saying - Heath is Wealth may have become old but its true Diseases can

grab anyone at anytime So you have to pre-plan in such a way that you dont have any

financial constraint at the time when your loved ones are in severe pain Everybody believes

that prevention is better than cure and adapt strict diet plans exercise daily for it as well but

no matter how well you take care of your self diseases can grab you anytime So Max New

York Lifes Health Plans have been designed to take into account the diverse set of needs at

times of an individuals ill health These health plans provide you financial security at the

time of health treatments required

LifeLine MediCashtrade

LifeLine Wellnesstrade Plus

LifeLine MediCashtrade Plus

LifeLine Safety Nettrade

LifeLine Wellnesstrade

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

SAVINGS PLANSIt must be admitted that a certain degree of instability lies in every individuals life Foreseen and

unforeseen needs can arrive at any point of time Max New York Lifes savings plans will help

you Our dual benefits saving plans recognizes your need for a complete all round financial

protection and therefore provides you life cover and helps in the growth of your money

Money will fly soon if not taken care of Therefore we offer you diverse savings plans which

would undoubtedly suit your needs and your budget

Whole Life Participating

Life Gaintrade Plus 25 (Par)

20 year Endowment (Par)

Life Paytrade Money Back

Endowment to Age 60 (Par)

Life Gaintrade Endowment

Life Gaintrade Plus 20 (Par)

Life Partner trade

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

CHAPTER-3

RESEARCH METHADOLOGY

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

MARKET RESEARCH

What is Market Research

Market research is the systematic design collection analysis and reporting of data and findings

relevant to a specific marketing situation facing the company

Market research firms fall in to the three categories

1) Syndicated-service research firms-These firms gather consumer and trade information

which they sell for a fee

2) Customs market research firms-These firms are hired to carry out specific projects They

design the study and report the findings

3) Specialty-line market research firms-These firms provide specialized research services to

other firms

Benefits of Market Research

Information gained through marketing research isnt just nice to know Its solid information

that can guide your most important strategic business decision Market research is effective when

the findings or conclusions you reach have a value that exceeds the cost of the research itself

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

RESEARCH STUDY

RESEARCH OBJECTIVES

The objective of the project is to find out the consumer Satisfaction or Preference and behavior

of customer towards ldquoInsurance Sector especially towards NIRMAL CHHAYA INSURANCE

SERVICES MAX NEW YORK LIFE INSUERANCE

What all are the stimuli effecting there choices before selecting a Insurance company Is it the

credibility good return or celebrity endorser

It also helps in letting the above Insurance know its basic position in relation to its competitors in

the market amp how better can it help re-design its product in achieving higher sales growth

The study of this research also analyses the findings and provide NIRMAL CHHAYA

INSURANCE SERVICES MAX NEW YORK LIFE INSUERANCE with the effective

recommendations or suggestions

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the information

needed It is overall operational pattern or framework of the project that stipulates what

information is to be collected from which source by what procedures A research design is a type

of blue print prepared depending on various types of blueprints available for the collection

measurement and analysis of data A research design calls for developing the most efficient plan

of gathering the needed information The design of research study is based on the purpose of the

study

SCOPE OF THE STUDY

The project undertaken makes me able to improve my professional skills

And expertise It helps me in getting an idea of insurance industry and its

Importance in our life It increases my confidence on professional ground by dealing with

consumers that is very hard to convince As far as companyrsquos benefit is concerned this project

helps company to know its market condition and level of competition Also it helps in creating

Awareness to consumers regarding insurance documents and in promotion of their services In

order to accomplish the objectives of the project a survey has been conducted amongst customers

of the insurance market The survey is based on questionnaire filling method and limited to some

parts of Delhi region The survey is restricted to the information needed to show legal technical

and financial transparency between project developer and customer

RESEARCH METHODOLOGY ADOPTED

bull Type of research - Qualitative research

-Element- Consumers

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

-Sampling unit- Each element acts as an independent unit

bull Sampling Type - Area sampling

As research was limited on the basis of geographical location ie DELHI

bull Sample Size - 160 Customers

bull Data Source - Primary Data collected by conducting face to face personal

interviews

bull Research instruments -

Questionnaire was used to extract the information from the respondents

Questions were

- Close ended

- Multiple choices

bull Method of Sampling - Random

LIMITATIONS

1 The research covers only west Delhi so the survey results are restricted to a particular area

2 Biased answers can sometimes be received in questionnaire because customers some times tend to hide their salary price as the factor for buying the product etc

3 Survey is done under limited time constraint so the completeness of the product may not be sure

4 Behavior of the customer keeps on changing as they are continuously in linked with the external environmental happening

5 Market is more heterogeneous so the survey is not too flexible

6 Consumer taste and preferences are hard to judge so it can change frequently

7 People were hard pressed with time so most of them were reluctant to answer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

MANAGERIAL USEFULNESS

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how

The psychology of how consumers think feel reason and select between different

alternatives (eg brands products and retailers)

The psychology of how the consumer is influenced by his or her environment (eg

culture family signs media)

The behavior of consumers while shopping or making other marketing decisions

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

How consumer motivation and decision strategies differ between products that differ in

their level of importance or interest that they entail for the consumer and

How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

CHAPTER-3

DEFINITIONS OF CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy

products It blends elements from psychology sociology social anthropology and economics

Involves the process by which people determine whether what when where how from

whom and how often to purchase goods and services

Research that focuses on psychographics eg the criteria for segmenting consumers by life-style

attitudes beliefs values personality and buying motives

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

Study of how people behave when obtaining using and disposing of products (and

services)

CONSUMER BEHAVIOR

Consumer behavior is the study of when why how and where people do or do not buy product

It blends elements from psychology sociology social anthropology and economics It attempts

to understand the buyer decision making process both individually and in groups It studies

characteristics of individual consumers such as demographics and behavioral variables in an

attempt to understand peoples wants It also tries to assess influences on the consumer from

groups such as family friends reference groups and society in general

Customer behavior study is based on consumer buying behavior with the customer playing the

three distinct roles of user payer and buyer Relationship marketing is an influential asset for

customer behavior analysis as it has a keen interest in the re-discovery of the true meaning of

marketing through the re-affirmation of the importance of the customer or buyer A greater

importance is also placed on consumer retention customer relationship management

personalization customization and one-to-one marketing Social functions can be categorized

into social choice and welfare functions

Each method for vote counting is assumed as a social function but if Arrowrsquos possibility theorem

is used for a social function social welfare function is achieved Some specifications of the

social functions are decisiveness neutrality anonymity monotonicity unanimity homogeneity

and weak and strong Pareto optimality No social choice function meets these requirements in an

ordinal scale simultaneously The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks Marketing provides services in order to satisfy customers With that in mind the

productive system is considered from its beginning at the production level to the end of the

cycle the consumer

One official definition of consumer behavior is The study of individuals groups or

organizations and the processes they use to select secure use and dispose of products services

experiences or ideas to satisfy needs and the impacts that these processes have on the consumer

and society Although it is not necessary to memorize this definition it brings up some useful

points

Behavior occurs either for the individual or in the context of a group (eg friendsrsquo

influence what kinds of clothes a person wears) or an organization (people on the job make

decisions as to which products the firm should use)

Consumer behavior involves the use and disposal of products as well as the study of how

they are purchased Product use is often of great interest to the marketer because this may

influence how a product is best positioned or how we can encourage increased consumption

Since many environmental problems result from product disposal (eg motor oil being sent into

sewage systems to save the recycling fee or garbage piling up at landfills) this is also an area of

interest

Consumer behavior involves services and ideas as well as tangible products

The impact of consumer behavior on society is also of relevance For example

aggressive marketing of high fat foods or aggressive marketing of easy credit may have serious

repercussions for the national health and economy

THERE ARE FOUR MAIN APPLICATIONS OF CONSUMER

BEHAVIOR

The most obvious is for marketing strategymdashie for making better marketing

campaigns For example by understanding that consumers are more receptive to food advertising

when they are hungry we learn to schedule snack advertisements late in the afternoon By

understanding that new products are usually initially adopted by a few consumers and only

spread later and then only gradually to the rest of the population we learn that (1) companies

that introduce new products must be well financed so that they can stay afloat until their products

become a commercial success and (2) it is important to please initial customers since they will

in turn influence many subsequent customersrsquo brand choices

A second application is public policy In the 1980s Acutance a near miracle cure for

acne was introduced Unfortunately Acutance resulted in severe birth defects if taken by

pregnant women Although physicians were instructed to warn their female patients of this a

number still became pregnant while taking the drug To get consumersrsquo attention the Federal

Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed

babies be shown on the medicine containers

Social marketing involves getting ideas across to consumers rather than selling

something Marty Fishbein a marketing professor went on sabbatical to work for the Centers for

Disease Control trying to reduce the incidence of transmission of diseases through illegal drug

use The best solution obviously would be if we could get illegal drug users to stop This

however was deemed to be infeasible It was also determined that the practice of sharing needles

was too ingrained in the drug culture to be stopped As a result using knowledge of consumer

attitudes Dr Fishbein created a campaign that encouraged the cleaning of needles in bleach

before sharing them a goal that was believed to be more realistic

As a final benefit studying consumer behavior should make us better consumers

Common sense suggests for example that if you buy a 64 liquid ounce bottle of laundry

detergent you should pay less per ounce than if you bought two 32 ounce bottles In practice

however you often pay a size premium by buying the larger quantity In other words in this

case knowing this fact will sensitize you to the need to check the unit cost labels to determine if

you are really getting a bargain

There are several units in the market that can be analyzed Our main thrust in this course is the

consumer However we will also need to analyze our own firmrsquos strengths and weaknesses and

those of competing firms Suppose for example that we make a product aimed at older

consumers a growing segment A competing firm that targets babies a shrinking market is

likely to consider repositioning toward our market To assess a competing firmrsquos potential threat

we need to examine its assets (eg technology patents market knowledge and awareness of its

brands) against pressures it faces from the market Finally we need to assess conditions (the

marketing environment) For example although we may have developed a product that offers

great appeal for consumers a recession may cut demand dramatically

CHAPTER-4Analysis amp Data Interpretation

Analysis amp Data Interpretation

Table-1

TABLE IS SHOWING THE SEX RATIO OF THE RESPONDENTS WHILE TAKING THE SAMPLING IN DELHI REGION

SEX MALE FEMALE

NOOF RESPONDENTS 125 35

No of Respondents

78

22

MALE

FEMALE

Analysis- From above table we can see that 78 people are male respondent and 22 are female while taking the sample out of 160 people

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

become a commercial success and (2) it is important to please initial customers since they will

in turn influence many subsequent customersrsquo brand choices

A second application is public policy In the 1980s Acutance a near miracle cure for

acne was introduced Unfortunately Acutance resulted in severe birth defects if taken by

pregnant women Although physicians were instructed to warn their female patients of this a

number still became pregnant while taking the drug To get consumersrsquo attention the Federal

Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed

babies be shown on the medicine containers

Social marketing involves getting ideas across to consumers rather than selling

something Marty Fishbein a marketing professor went on sabbatical to work for the Centers for

Disease Control trying to reduce the incidence of transmission of diseases through illegal drug

use The best solution obviously would be if we could get illegal drug users to stop This

however was deemed to be infeasible It was also determined that the practice of sharing needles

was too ingrained in the drug culture to be stopped As a result using knowledge of consumer

attitudes Dr Fishbein created a campaign that encouraged the cleaning of needles in bleach

before sharing them a goal that was believed to be more realistic

As a final benefit studying consumer behavior should make us better consumers

Common sense suggests for example that if you buy a 64 liquid ounce bottle of laundry

detergent you should pay less per ounce than if you bought two 32 ounce bottles In practice

however you often pay a size premium by buying the larger quantity In other words in this

case knowing this fact will sensitize you to the need to check the unit cost labels to determine if

you are really getting a bargain

There are several units in the market that can be analyzed Our main thrust in this course is the

consumer However we will also need to analyze our own firmrsquos strengths and weaknesses and

those of competing firms Suppose for example that we make a product aimed at older

consumers a growing segment A competing firm that targets babies a shrinking market is

likely to consider repositioning toward our market To assess a competing firmrsquos potential threat

we need to examine its assets (eg technology patents market knowledge and awareness of its

brands) against pressures it faces from the market Finally we need to assess conditions (the

marketing environment) For example although we may have developed a product that offers

great appeal for consumers a recession may cut demand dramatically

CHAPTER-4Analysis amp Data Interpretation

Analysis amp Data Interpretation

Table-1

TABLE IS SHOWING THE SEX RATIO OF THE RESPONDENTS WHILE TAKING THE SAMPLING IN DELHI REGION

SEX MALE FEMALE

NOOF RESPONDENTS 125 35

No of Respondents

78

22

MALE

FEMALE

Analysis- From above table we can see that 78 people are male respondent and 22 are female while taking the sample out of 160 people

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

marketing environment) For example although we may have developed a product that offers

great appeal for consumers a recession may cut demand dramatically

CHAPTER-4Analysis amp Data Interpretation

Analysis amp Data Interpretation

Table-1

TABLE IS SHOWING THE SEX RATIO OF THE RESPONDENTS WHILE TAKING THE SAMPLING IN DELHI REGION

SEX MALE FEMALE

NOOF RESPONDENTS 125 35

No of Respondents

78

22

MALE

FEMALE

Analysis- From above table we can see that 78 people are male respondent and 22 are female while taking the sample out of 160 people

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

CHAPTER-4Analysis amp Data Interpretation

Analysis amp Data Interpretation

Table-1

TABLE IS SHOWING THE SEX RATIO OF THE RESPONDENTS WHILE TAKING THE SAMPLING IN DELHI REGION

SEX MALE FEMALE

NOOF RESPONDENTS 125 35

No of Respondents

78

22

MALE

FEMALE

Analysis- From above table we can see that 78 people are male respondent and 22 are female while taking the sample out of 160 people

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

No of Respondents

78

22

MALE

FEMALE

Analysis- From above table we can see that 78 people are male respondent and 22 are female while taking the sample out of 160 people

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Table-2

TABLE IS SHOWING THE AGE GROUP OF THE RESPONDENTS

AGE 18-25 26-35 36-45 ABOVE 45

NOOF RESPONDENTS 40 60 38 22

Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375

Inference- From above table and analysis we can see the maximum no of respondents are of age between 26to35

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Table-3

TABLE IS SHOWING THE OCCUPATION OF THE RESPONDENTS

OCCUPATION BUSINESS SER-VICE PROFES-SIONAL

ANY

OTHERS

NOOF RESPONDENTS

43 82 25 10

Analysis- From above table we can get that 2687 respondents are from business class 5125 belongs to service class and 1562are professionals and rest 625 belongs to other class

Inference- From above table we can infer that majority of respondents belongs to service class

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

NOOF RESPONDENTS

BUSINESS

SER-VICE

PROFES-SIONAL

ANY OTHERS

Table-4

TABLE IS SHOWING THE INCOME LEVEL OF THE RESPONDENTS

INCOME BELOW

250000

250000

--400000

400000

--600000

ABOVE

600000

NO OF

RESPONDETS

123 22 13 2

Analysis- From above table we can find that 7687 respondents belongs to income group of below 250000 1375 belongs to income group of 250000-400000 812 of 400000 to 600000 and 125 of above 600000

Inference- From above table and analysis we can infer that maximum no of respondents are belongs to income group below 250000

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

NO OF

BELOW 250000

250000 400000

400000 600000

ABOVE 600000

Table-5

TABLE IS SHOWING WHY PEOPLE BUY INSURANCE POLICY

SAFETY OF LIFE INVESTMENT TAX SAVING OTHERS

30 55 75 0

Analysis- From above table we can see that the 1875 respondents buy the insurance policy for safety purpose3437 people take it as a investment and 4687 buy it for tax saving

Inference- From above table and analysis we can infer that the maximum respondents want the tax saving while buying a insurance plan

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

0

10

20

30

40

50

60

70

80

SAFETY OFLIFE

INVESTMENT TAX SAVING OTHERS

Series1

Table-6

TABLE IS SHOWING THAT PEOPLE ARE ASSOCIATED WITH WHICH INSURANCE COMPANY

ICICI

ldquoPRUDENTIALrdquo

LIC BIRLA

SUN LIFE

MAX NEW YORK

OTHERS

30 96 4 18 12

30

96

418 12

0

10

20

30

40

50

60

70

80

90

100

ICICI LIC BIRLA MAX NEWYORK

OTHERS

Analysis- From above table we can see that 60 respondents are associated with LIC 1875 with ICICI ldquoPRUrdquo 1125 with MAX NEW YORK25 with BIRLA SUN LIFE AND 75 with others

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Inference- From above table and analysis we can infer that majority of people are associated with LIC but ICICI is the biggest private life insurance provider

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Table-7

TABLE IS SHOWING HOW PEOPLE COME TO KNOW ABOUT NEW POLICIES

AGENT

ADVISIORS

NEWSPAPER

MAGAZINE

INTERNET OTHERS

120 26 8 6

AGENT ADVI-SIORS

NEWSPA-PER

MAGAZINE

INTERNET OTHERS0

20

40

60

80

100

120

Analysis- From above table we can see that 75 respondents get information about new policies through AgentAdvisors 1625 through NewspaperMagazine 5 through Internet 375 through other ways

Inference-From above table and findings we can infer that AgentAdvisors are the main medium of information about insurance plan

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Table-8

TABLE IS SHOWING WHAT INFLUENCES PEOPLE TO BUY A POLICY AND WHAT IS THE REASON OF THEIR ASSOCIATION WITH THIS COMPANY

RETURN SERVICE ADVERTISENENT CELEBRITY ENDORSER

OTHERS

116 34 2 2 6

116

34

2 2 60

20

40

60

80

100

120

RETURN CELEBRITYENDORSER

Analysis- From above table we can see that 2125 people go for service of the company 725 want high return 25 associated with the company due to advertisement and celebrity endorser and 375 with other factor

Inference- From above table and analysis we can infer that majority of people influenced by the return of the company

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

Table-9

TABLE IS SHOWING HOW PRIVATE LIFE INSURANCE COMPANIES ARE PERFORMING

GOOD FAIR POOR CANrsquoT SAY

113 35 5 7

113

35

5 70

20

40

60

80

100

120

GOOD FAIR POOR CANrsquoT SAY

Analysis- From above table we can get that majority of people 7062 think their company is performing good and 218 think fair where 312 think their company performing poor and 437 give no response

Inference- From above table and analysis we can infer that maximum no of people say their company are performing good

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

CHAPTER 5

CONCLUSIONS

1 The age group between 26-35 is more conscious about the insurance and they avail the policies

2 People get insured for safety purpose but some people have different thoughts like investment or tax saving

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

3 Professionals are the highly insured group and following are service class as well as businessmen

4 Economic condition of a person influenced for getting insurance policies

5 ICICI ldquoPrudentialrdquo is the biggest private life insurance company according to finding of research After LIC it has the most number of customers

6 Agent or Advisors are the big sources of information about a new plan of insurance company

7 Due to credibility of that company people buy a insurance plan

8 People are now thinking the private insurance companies are doing a good job and it is easily accessible

9 ULIP is the popular plan among the insure because it has a higher return

10 Change is very important and one who goes with the changing environment always succeed that is what I have learned from the study The competition has grown too much in the insurance sector with the opening of the sector This is for the LIC to change their strategy on the basis of the competition On the basis of the project I can conclude that the insurance sector is one of the oldest industry of India It was under private control earlier but

9 Nationalized after independence For many years it was only LIC for life and GIC for general insurance companies available In 1991 when the liberalization started foreign investors become attracted towards the country In 1993 government appointed Mr RN Malhotra committee to suggest reforms measures In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies

Multinational insurance companies aligned with the Indian companies to step into this sector LIC has the largest network of operation with 2148 offices 124000 employee and 750000 agents

ICICI Prudential is the largest private player in the insurance industry in India It has sold over one-lakh fifty thousand policies till date Besides LIC ICICI Prudential is facing stiff competition from other private insurance players

Out of total population of 1 billion of country only 22 have insurance cover So we can say that there is still large potential for both the public and private

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

companies Private companies have to give varied customized product to compete with the LIC which is holding about 97 of the total market

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

RECOMMENDATIONS

1 People have less knowledge about current Insurance plan so company should advertise it more through Television Radio and Newspaper because these mediums are easily accessible to them

2 The return in insurance plan should be hiked because people are ready to take risks

3 Insurance companies has some plan about poor people but it is not implemented properly they are remain untouched

4 Government should allow hiking the stake of foreign collaborator because it makes more competitive market of insurance

5 Government should withdraw its umbrella from LIC it make healthier competition among insurance companies

6 Insurance companies should come up with new policies that can cover the entire family in one policy

7 Insurance companies should extend its cover to poor people because it is known fact that merely 22 people are insured out of 100

8 Insurance companies should venture their policies in remote areas of our country

The insurance companies should now try to identify the gap between current level of customer service and customer expectations Some of the strategies being recommended are as follows

1 Product Differentiation Offering a product that is distinctly different from other products available in the market

2 Innovativeness Identifying means of a delightful customer experience

3 Riders These are additional offerings along with the main product

4 Flexibility The companies should make their products flexible for the convenience of their customer

5 Hassle Free Service All bureaucracy in customer interactions should be eliminated

6 Proper Policy Documentation Wrong interpretations non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

BIBLIOGRAPHY

1 Insurance Advisorrsquos Manuals and Study Material of MAX NEW YORK

2 Insurance materials of pacl india ltd

3 Insurance Watch and other Magazines

4 Economic Times

5 wwwlicindiacom

6 wwwmaxnewyorklifecom

7 wwwirdagovin

8 wwwpearlsgroupin

9 wwwpaclindiacom

APPENDICES

ANNEXUREQuestionnaire for Study of Insurance Preferences

Dear SirMadam

I am a student of ldquohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliprdquo as a part of my curriculum I am doing a brief survey to find out more about consumer preference regarding Insurance I would be grateful if you could spare a few minutes to participate in it Kindly mark where required

1 Name --------------------------------------------------------------(Optional)

2 Contact No -------------------------------------------------------(Optional)

3 Location -----------------------------------------------------------

4 Sex 1048766 Male 1048766 Female

5 Occupation 1048766 Business 1048766 Service

1048766 Professionals 1048766 Others

6 Age 1048766 18-25 yrs 1048766 26-35 yrs

1048766 36-45 yrs 1048766 45 amp above

7 Annual Income 1048766 lt 2 50000 1048766 2 50000-4 00000

1048766 400000-6 00000 1048766 6 00000 amp above

8 Do you possess a life insurance policy

1048766 Yes 1048766 No

9 Why do you buy insurance policy

1048766 Safety for life 1048766 Investment purpose

1048766Tax saving 1048766 others

10 Which insurance company you are associated with

1048766 ICICI lsquoprursquo 1048766 LIC

1048766 MAX NEW YORK LIFE 1048766 Birla Sun life

1048766 Others

11 Why you are associated with this company what influences you to buy a policy

1048766 Good return 1048766 Service

1048766 Advertisement 1048766 Celebrity endorser

1048766 Others

12 How do you come to know about new policies of your insurance Company

1048766 AgentAdvisors 1048766 NewspaperMagazine

1048766 Internet 1048766 Others

13 How do you think the private insurance companies are performing

1048766 Good 1048766 Fair

1048766 Poor 1048766 Canrsquot say

14 Should the stake of foreign collaborator be hiked If Yes why

---------------------------------------------------------------------------------------------

15 What other services would you want from your insurance company

---------------------------------------------------------------------------------------------

THANKING YOU

• Certificate
• • EXECUTIVE SUMMARY
  • • 2 Home insurance
    • Home insurance provides compensation for damage or destruction of a home from disasters In some geographical areas the standard insurances exclude certain types of disasters such as flood and earthquakes that require additional coverage
    • 3 Health
    • 6 Life-
    • Life insurance provides a monetary benefit to a decedents family or other designated beneficiary and may specifically provide for income to an insured persons family policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity
    • • RESEARCH METHODOLOGY
      • RESEARCH DESIGN
      • RESEARCH METHODOLOGY ADOPTED
      • • Table-2
        • AGE
        • Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375
        • Table-3
        • Table-4
        • Table-5
        • Table-6
        • Table-7
        • Table-8
        • • CONCLUSIONS
          • THANKING YOU

ANNEXUREQuestionnaire for Study of Insurance Preferences

Dear SirMadam

I am a student of ldquohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliprdquo as a part of my curriculum I am doing a brief survey to find out more about consumer preference regarding Insurance I would be grateful if you could spare a few minutes to participate in it Kindly mark where required

1 Name --------------------------------------------------------------(Optional)

2 Contact No -------------------------------------------------------(Optional)

3 Location -----------------------------------------------------------

4 Sex 1048766 Male 1048766 Female

5 Occupation 1048766 Business 1048766 Service

1048766 Professionals 1048766 Others

6 Age 1048766 18-25 yrs 1048766 26-35 yrs

1048766 36-45 yrs 1048766 45 amp above

7 Annual Income 1048766 lt 2 50000 1048766 2 50000-4 00000

1048766 400000-6 00000 1048766 6 00000 amp above

8 Do you possess a life insurance policy

1048766 Yes 1048766 No

9 Why do you buy insurance policy

1048766 Safety for life 1048766 Investment purpose

1048766Tax saving 1048766 others

10 Which insurance company you are associated with

1048766 ICICI lsquoprursquo 1048766 LIC

1048766 MAX NEW YORK LIFE 1048766 Birla Sun life

1048766 Others

11 Why you are associated with this company what influences you to buy a policy

1048766 Good return 1048766 Service

1048766 Advertisement 1048766 Celebrity endorser

1048766 Others

12 How do you come to know about new policies of your insurance Company

1048766 AgentAdvisors 1048766 NewspaperMagazine

1048766 Internet 1048766 Others

13 How do you think the private insurance companies are performing

1048766 Good 1048766 Fair

1048766 Poor 1048766 Canrsquot say

14 Should the stake of foreign collaborator be hiked If Yes why

---------------------------------------------------------------------------------------------

15 What other services would you want from your insurance company

---------------------------------------------------------------------------------------------

THANKING YOU

• Certificate
• • EXECUTIVE SUMMARY
  • • 2 Home insurance
    • Home insurance provides compensation for damage or destruction of a home from disasters In some geographical areas the standard insurances exclude certain types of disasters such as flood and earthquakes that require additional coverage
    • 3 Health
    • 6 Life-
    • Life insurance provides a monetary benefit to a decedents family or other designated beneficiary and may specifically provide for income to an insured persons family policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity
    • • RESEARCH METHODOLOGY
      • RESEARCH DESIGN
      • RESEARCH METHODOLOGY ADOPTED
      • • Table-2
        • AGE
        • Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375
        • Table-3
        • Table-4
        • Table-5
        • Table-6
        • Table-7
        • Table-8
        • • CONCLUSIONS
          • THANKING YOU

10 Which insurance company you are associated with

1048766 ICICI lsquoprursquo 1048766 LIC

1048766 MAX NEW YORK LIFE 1048766 Birla Sun life

1048766 Others

11 Why you are associated with this company what influences you to buy a policy

1048766 Good return 1048766 Service

1048766 Advertisement 1048766 Celebrity endorser

1048766 Others

12 How do you come to know about new policies of your insurance Company

1048766 AgentAdvisors 1048766 NewspaperMagazine

1048766 Internet 1048766 Others

13 How do you think the private insurance companies are performing

1048766 Good 1048766 Fair

1048766 Poor 1048766 Canrsquot say

14 Should the stake of foreign collaborator be hiked If Yes why

---------------------------------------------------------------------------------------------

15 What other services would you want from your insurance company

---------------------------------------------------------------------------------------------

THANKING YOU

• Certificate
• • EXECUTIVE SUMMARY
  • • 2 Home insurance
    • Home insurance provides compensation for damage or destruction of a home from disasters In some geographical areas the standard insurances exclude certain types of disasters such as flood and earthquakes that require additional coverage
    • 3 Health
    • 6 Life-
    • Life insurance provides a monetary benefit to a decedents family or other designated beneficiary and may specifically provide for income to an insured persons family policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity
    • • RESEARCH METHODOLOGY
      • RESEARCH DESIGN
      • RESEARCH METHODOLOGY ADOPTED
      • • Table-2
        • AGE
        • Analysis- From above table we can find that the 25 respondents are of age group between 18-25 and 375 people are of 26-35 Rests are of 237 between36-45 and above 45 are 1375
        • Table-3
        • Table-4
        • Table-5
        • Table-6
        • Table-7
        • Table-8
        • • CONCLUSIONS
          • THANKING YOU