chapter 1 mari main project
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1.1 INTRODUCTION
The term insurance may be defined as The act, business, or system of insuring, thestate or a means of being insured, coverage by a contract binding a party to indemnify
another against specified loss in returns for premium paid.
Generally speaking insurance is nothing but the spreading of the risk of loss of the
few over the many. The loss faced by a few persons is spread to all people who have the
possibility of facing similar risk.
DIVISIONS OF INSURANCE BUSINESS:
Insurance business is divided into four classes:
1. Life Insurance
2. Fire Insurance
3. Marine Insurance
4. Miscellaneous Insurance
Life Insurers transact life insurance business, General Insurers transact the rest.
MERITS OF LIFE INSURANCE:
Life insurance involves both the elements of protection and investment. The
following are the advantages of life insurance:
Superior savings plan
Encourages and forces thrift
Protection against creditors
Suitable for raising loan
Tax benefits and investment element reduces financial burden
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Reduces financial burden
NEEDS OF INSURANCE:
Youth makes us feel immortal and invincible. It is all about dreams not
about death and disease. But this is the best time to think of insurance so that the
dreams are not shattered by death.
Life Insurance provides risk cover which no other investment option offers.
Following are the advantages of Life Insurance:
It provides full protection against risk of death.
Encourages and forces compulsory savings as the saved money cannot be
withdrawn and premium has to be paid regularly. Provides loan to tie over a temporary difficult phase and is also acceptable as
security for a commercial loan.
Provides tax benefits to policyholders.
Hedges risk against uncertainty.
Risk cover
Life is full of uncertainties-accident, illness, theft, natural disaster might happenanytime. Human beings do not have much control over lifes risks and uncertainties
however they can at least be prepared for them and their aftermath. Life insurance can be
a big support to a family in troubled times, to meet their financial needs, to fulfill their
dreams of -another child, a bigger home, a new business, college education, travel,
retirement Life insurance is all about making sure your family has adequate financial
resources to make their future plans and dreams come true.
Insurance provides you with that unique sense of security that no other form of
investment provides. By buying life insurance, you buy peace of mind and are prepared
to face any financial demand that would hit the family in case of an untimely demise.
Insurance also provides a safeguard in the case of accidents or a drop in income after
retirement. An insurance policy can lend timely support to the family in case of an
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accident or disability. It also comes as a great help when you retire, in case no untoward
incident happens during the term of the policy.
Investment
Insurance can be an attractive option for investment too. A lot of Insurance
products yield more compared to regular investment options, with the added advantages
of providing incentives. No other investment schemes can offer financial protection from
risks.
The premium you pay for an insurance policy is an investment against risk. Before
comparing it with other schemes, one must remember that a part of the total amount
invested in life insurance goes towards providing for the risk cover, while the rest is usedfor savings.
Also life insurance provides you get maturity benefits on survival at the end of the term.
i.e. if you take a life insurance policy for 20 years and survive the term, the amount
invested as premium in the policy will come back to you with added returns. In case of
death or disability within the tenure of the policy, the family/insured will receive the sum
assured.
Now, let us compare insurance as an investment options. If you invest Rs. 10,000 in
other investment options like PPF or Bonds, your money might give better returns but
you cannot access your funds. One can withdraw 50 per cent of the initial deposit only
after 4 years. The same amount can give you an insurance cover of up to approximately
Rs 5-10 lakh (depending upon the plan, age health, etc) and this amount would be
immediately available to the nominee of the policyholder on death.
Thus insurance provides sound returns in addition to risk cover.
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Tax Planning
Insurance can be used for tax planning too. Under Section 88 of Income Tax Act,
an individual is entitled to a rebate of up to 20 per cent on the annual premium payable on
his/her life , life of spouse and life of his/her children .This benefit is available to anindividual or a Hindu Undivided Family.
If the gross income per annum is less than Rs. 1.5 lakhs per annum maximum benefit
available is 20% of the eligible amount i.e Rs. 14,000. If the gross income per annum is
between Rs. 1.5 lakhs per annum and Rs. 5 lakhs per annum maximum benefit available
is 15% of the eligible amount i.e Rs. 10,500.
More Options & Products
The entry of new players after opening up of sectors has helped in more ways than one.
Aggressive advertising has improved awareness levels.
Many new and innovative products have been launched. Customers have
tremendous choice from a large variety of products from pure risk insurance
to unit-linked investment products.
Customers are offered unbundled products with a variety of benefits as ridersfrom which they can choose. More customers are buying products and
services based on their true needs and not just traditional money-back policies.
Advice and need based selling is emerging through much better trained sales
force and advisors.
There is improvement in response and turnaround times in specific areas such
as delivery of first policy receipt, policy document, premium notice, final
maturity payment, settlement of claims etc.
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At present there are 14 life insurance companies in India.
Bajaj Allianz Life Insurance Company Limited
Birla Sun Life Insurance Company Limited
HDFC Standard Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited
ING Vysya Life Insurance Company Limited
Life Insurance Corporation of India
Max New York Life Insurance Company Limited
MetLife India Insurance Company Pvt. Limited
Kotak Mahindra Old Mutual Life Insurance Company Limited SBI Life Insurance Company Limited
Tata AIG Life Insurance Company Limited
AMP Sanmar Life Insurance Company Limited
Aviva Life Insurance Company Pvt. Limited
Reliance Life Insurance Company Limited
How do I compare life insurance policies?
There is such wide range of policies that it is natural that a person would feel lost in the
jargon. To make the right decision, compare the following features of different policies:
Premium - the amount of money you have to pay regularly to continue your insurance
coverage. The premium amount is depends on age, policy, premium payment options and
policy term.
Term - the number of years the policy is valid. The longer the term the lower the
premium. The policy term varies from a minimum of 5 years to a maximum 55 years.
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Term of premium payment - the number of years you have to pay premium on your
policy. It may be the same as the policy term or less. Some policies have the options
wherein one can select the premium payment term.
Sum Assured - the amount received on death of the policyholder. A lot of policies offera larger amount of sum assured than other benefits .So, if you are concerned more about
leaving a bigger amount for your family for the same premium select a policy with more
sum assured
Bonus - is declared as a proportion of the sum assured, by the insurance company each
year depending on the profit made by the company. It is paid only as a lump sum either
on maturity or to the family upon death.
Maturity - It is the amount of money you receive from the insurance company if you
survive the policy term.
Cover - is also known as death benefit. It is the amount of money your nominee receives
from the insurance company upon your death. It is the sum assured plus the bonus.
Returns - the amount of money realized at the end of the term of the policy calculated in
percentage terms every year. It can be compared to the rate of interest that you receivefrom other investment.
Riders-Insurance companies offer some options in addition to the regular policy features
for a small increase in premium like personal accident benefit, waiver of premium rider
etc. Thus, for a small increase a larger benefit can be obtained. For e.g. you want to have
a policy for 10 lakhs. This would mean a large premium however if you buy a policy of 5
lakhs with a term rider which pays additional 5 lakhs in case you die in the next 20 years
would cost much less.
Therefore, for a given sum assured and term compare policies on the basis of
these parameters and choose a policy depending on your insurance objectives. risk
cover or returns or both.
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Factors to consider while taking insurance:
How much insurance can you afford?
Low premium high cover
Cover for short term
Higher cover with high returns
What is you motive for taking insurance?
protection
investment
future expenses
retirement planning
How much insurance you need?
This will depend on:
Your life stage and your needs
The wealth, income and expense levels of your dependents
Their significant foreseeable expenses The inheritance you would leave them, and
The lifestyle you want to provide for them.
Max New York Life Insurance is one among the leading insurance provider in the nation.
In order to become the leader in the insurance sector, a survey titled NEED BASED
SELLING OF INSURANCE PRODUTS has been carried out.
The descriptive type of research was undertaken for the study and the survey method
was adopted to collect the primary data. A structured questionnaire was employed as
research tool to collect the primary data.
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The collected data were analyzed with the help of tables, percentages, charts and
statistical tools.
1.2 INDUSTRY PROFILE
THE HISTORY OF INDIAN INSURANCE INDUSTRY
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made
with the introduction of the Indian Life Assurance Companies Act in 1912. A number of
amendments to this Act were made until the Insurance Act was drawn up in 1938.Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to
the public through regulation and control. When the Act was changed in 1950, this meant
far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much
tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted the higher
echelons of society. Unethical practices adopted by some of the players against the
interests of the consumers then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so-
called Life Insurance Corporation (LIC). It was felt that nationalization has lent the
industry fairness, solidity, growth and reach.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
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1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.1956: The market contained 154 Indian and 16 foreign life insurance companies.
General Insurance
The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance,
the British brought General Insurance to India, and a similar path was followed in the
development of this industry. A number of private companies were in existence for years
and years until, in 1971, the Indian Government decided that the public interest would be
served by nationalizing the industry, merging all the 107 companies into four companies,
depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were
the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New
India Assurance Company Ltd., and the United India Insurance Company Ltd. located in
Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a holding company, having these fourcompanies as its subsidiaries.
Some of the important milestones in the general insurance business in India are:
1907: TheIndian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, framesa code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
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1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the
general insurance business in India with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies viz. the National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
MAJOR PLAYERS IN THEMAJOR PLAYERS IN THE INSURANCEINSURANCE INDUSTRY IN INDIAINDUSTRY IN INDIA
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spreadthe message of life insurance in the country and mobilise peoples savings for nation-
building activities. LIC with its central office in Mumbai and seven zonal offices at
Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100
divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh active
agents spread over the country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.
Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit
linked life insurance and pension policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while
GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income
grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth inthe rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty
line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95
per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.
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Compounded annual growth rate for Life insurance business has been 19.22 per cent per
annum.
General Insurance Corporation of India (GIC)
The general insurance industry in India was nationalized and a government company
known as General Insurance Corporation of India (GIC) was formed by the Central
Government in November 1972. With effect from 1 January 1973 the erstwhile 107
Indian and foreign insurers which were operating in the country prior to nationalization,
were grouped into four operating companies, namely, (i) National Insurance Company
Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United
India Insurance Company Limited. (However, with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent
insurance companies). All the above four subsidiaries of GIC operate all over the country
competing with one another and underwriting various classes of general insurance
business except for aviation insurance of national airlines and crop insurance which is
handled by the GIC.
Besides the domestic market, the industry is presently operating in 17 countries directly
through branches or agencies and in 14 countries through subsidiary and associate
companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN
PERMITTED TO ENTER INTO INSURANCE BUSINESS: -
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in this sector. The new players have improved the service quality of the
insurance. As a result LIC down the years have seen the declining phase in its career. The
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market share was distributed among the private players. Though LIC still holds the 75%
of the insurance sector but the upcoming natures of these private players are enough to
give more competition to LIC in the near future. LIC market share has decreased from
95% (2002-03) to 82 %( 2004-05).
1. HDFC Standard Life Insurance Company Ltd.
HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.), Indias leading housing finance institution and The Standard Life Assurance
Company, a leading provider of financial services from the United Kingdom. Theircumulative premium income, including the first year premiums and renewal premiums is
Rs. 672.3 for the financial year, Apr-Nov 2005. They have managed to cover over
11,00,000 individuals out of which over 3,40,000 lives have been covered through our
group business tie-ups.
2. Max New York Life Insurance Co. Ltd.
Max New York Life Insurance Company Limited is a joint venture that brings together
two large forces - Max India Limited, a multi-business corporate, together with NewYork Life International, a global expert in life insurance. With their various Products and
Riders, there
are more than 400 product combinations to choose from. They have a national presence
with a network of 57 offices in 37 cities across India
3. ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA). The
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company has a network of about 56,000 advisors; as well as 7 bancassurance and 150
corporate agent tie-ups.
4. Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak
Mahindra Bank Ltd. (KMBL), and Old Mutual plc.
5. Birla Sun Life Insurance Company Ltd.
Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and
Sun Life financial Services of Canada.6. Tata AIG Life Insurance Company Ltd.
7. SBI Life Insurance Company Limited
8. ING Vysya Life Insurance Company Private Limited
9. Bajai Alliancz Life Insurance Company Ltd.
10. Metlife India Insurance Company Pvt. Ltd.
11. AMP SANMAR Assurance Company Ltd.
12. Aviva Life Insurance Company Ltd.,
13. Reliance Life Insurance Company Ltd.,
Some of the General Insurance Companies are:
1. Royal Sundaram Alliance Insurance Company Limited
The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram
Finance Limited started its operations from March 2001. The company is Head Quartered
at Chennai, and has two Regional Offices, one at Mumbai and another one at New Delhi.
2. Bajaj Allianz General Insurance Company Limited
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Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and DevelopmentAuthority (IRDA) certificate of Registration (R3) on May 2nd, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs
110 crores. Bajaj Auto holds 74% and the remaining 26% is held
by Allianz, AG, and Germany.
3. ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI
Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI
Bank is India's second largest bank; while Fairfax Financial Holdings is a diversified
financial corporate engaged in general insurance, reinsurance, insurance claims
management and investment management.
Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in
August 2001.
4. Cholamandalam General Insurance Company Ltd.
Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture
of the Murugappa Group & Mitsui Sumitomo.
Chola-MS commenced operations in October 2002 and has issued more than 1.4 lakh
policies in its first calendar year of operations. The company has a pan-Indian presencewith offices in
Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore,Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.
5. TATA AIG General Insurance Company Ltd.
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Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the
Tata Group and American International Group, Inc. (AIG). Tata AIG combines the
strength and integrity of the Tata Group with AIG's international expertise and financial
strength. The Tata Group holds 74 per cent stake in the two insurance ventures while AIG
holds the balance 26 per cent stake.
Tata AIG General Insurance Company, which started its operations in India on January
22, 2001, offers the complete range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as several specialized financial
lines.
6. Reliance General Insurance Company Limited.
7. IFFCO Tokio General Insurance Co. Ltd
8. Export Credit Guarantee Corporation Ltd.
9. HDFC-Chubb General Insurance Co. Ltd.
Marketing of Insurance In India
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is
also a sector, which leads to benefits across the full spectrum, from the individual who
now have wider choices, to the economy, which see increased savings, to theinfrastructure sector, which can look forward to long term funding being available. In an
under-insured economy, newer channels of distribution have to be utilized to intensify the
reach of insurance both in urban and rural markets. This will create huge employment
opportunities not only within insurance companies but also as agents and consultants of
insurance companies.
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1.3 COMPANY PROFILE
Max New York Life Insurance Company Limited is a joint venture between Max
India Limited, which is a one of India's leading multi-business corporations and NewYork Life International, the international arm of New York Life, a Fortune 100 company
& global expert in life insurance.
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.
Incorporated in 2000, Max New York Life Insurance started its commercial operations in
India in April 2001. in line with its values of financial responsibility, Max New York Life
has adopted prudent financial practices to ensure safety of policyholders funds.
Company's paid up capital as on 31st March, 2009 is Rs 1782 crore.
It is the first life insurance company in India to be awarded the IS0 9001:2000
certifications. The company has around 133 offices all over the country.
Max New York Life has multi-channel distribution spread across the country. Agency
distribution is the primary channel complemented by partnership distribution,
bancassurance, alliance marketing and dedicated distribution for emerging markets. The
Company places a lot of emphasis on its selection process for agent advisors, which
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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 93,000 agent advisors and more than 800 own
employed sales force at 712 offices across 389 cities. The company also has 36 referral
tie-ups with banks, 24 partnership distribution and alliance marketing relationships each.
The company has 133 offices dedicated to rural areas.
Max New York Life invests significantly in its training programme and each agent is
trained for around 100 hours as opposed to the mandatory 50 hours stipulated by the
IRDA before beginning to sell in the marketplace. Training is a continuous process for
agents at Max New York Life and ensures development of skills and knowledge through
a structured programme spread over 400 hours in two years. This focus on continuousquality training has resulted in the company having amongst the highest agent pass rate in
IRDA examinations and the agents have the highest productivity among private life
insurers
Max New York Life offers a variety of flexible products covering both life and health
insurance including 8 riders that can be customized to over 800 combinations which
enable the customers to choose the policy that suits their needs. Max New York Life also
offers 6 products and 7 riders in group insurance business. The company has a plan for
every need, designed as to meet your long term financial goals & aspirations. They help
you fulfilling your dreams & commitments. The list of few plans provided by Max New
York Life
New York Life Insurance Company:
New York Life Insurance Company (NYLIC) is the largest mutual life insurance
company in the United States, and one of the largest life insurers in the world. New YorkLife has the highest possible financial strength ratings from all four of the major credit
rating agencies. Founded in 1845 and headquartered in New York City, New York Life
maintains operations in all 50 states and eight overseas markets through a network of
17,000 employees and 104,000 licensed agents. New York Lifes family of companies
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offers life insurance, retirement income, investments and long-term care insurance. New
York Life Investments* provides institutional asset management and retirement plan
services. Other New York Life affiliates provide an array of securities products and
services, as well as institutional and retail mutual funds. The company is the 76th largest
company in the United States according to the Fortune 500 list.**
Some Facts About the Company:
FOUNDED : 2000
STARTED OPERATION : April 2001
HEADQUATERS : New Delhi, India
CHAIRMAN : Analijit Singh
CEO & MANAGING DIRECTOR : Rajesh Sud
PAID UP CAPITAL : Rs. 1,968 crore
SUM ASSURED : Rs.1,23,098 crore
EMPLOYEES : 10,454
AGEND ADVISORS : 72,813
NO. PRODUCTS : 33
NO OF RIDERS : 8NO PF OFFICES : 705
CLAIMS PAID : 9 DAYS
MDRTs : 193 (for calendar year 2009)
TRAINERS : 749
Achievements and Awards
Some of the Industry Firsts
First company to provide Freelook period of 15 days to the customer. This was
later made mandatory by the regulator
First company to start toll free line for agent services
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First and the only life insurance company in India to implement Lean
methodology of service excellence in service industry
First life insurance company in India to provide various services to the agents and
customers over phone
First Indian life insurance company to start service center at the regional level
First life insurance company in India to receive ISO 9001:2000 certification
First life insurance Company to be awarded CII-EXIM Bank commendation
certificate for Strong Commitment to Excel.
Awards
Outlook Money survey ranked MNYL No.1 in Slow, Medium and Quick fundcategories
BT Mercer Ranked No7 in the Best companies to Work For
Awarded the Gallup Great Work Place Award 2009
CII Exim Bank Commendation Certificate for Business Excellence 2008 &
2009
Received Best Six Sigma Project award at 6th CII National Six Sigma
conventions 2009. Recognized as a Superbrand
Recipient of 2008 CIO 100 Award for technology implementation
Golden Peacock Award for Innovation 2008
Among the top 25 companies to work for in India, according to Businessworld
2003 Great Workplaces of India
Among the top five most respected insurance companies in India as per
Businessworld 2004 & 2006 survey Won Indo-American Corporate Excellence Award for Best Indo-US company in
Financial Services Category in 2006
Received Best Six Sigma Project award at Sakal Six Sigma Excellence Awards
2006
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Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted
by Asia Insurance Review
Received the Amity Corporate Excellence Award 2007
Received the Outlook Money Award for being among the best new insurers inthe country.
Max New York Life bags the Asia Insurance Industry Innovation of the Year
Award 2009.
1.4 PRODUCT PROFILE
Protection Plans
Five Yr Renewable & Convertible Plan Level Term Policy
Children Plans
Children's Endowment to 18 (Par) Plan
Children's Endowment to 24 (Par) Plan
Skiksha Plus
Investment Plans
SMART Express
Fortune Builder
Secure Dreams
Retirement Plans
Super Invest Pension
Easy Life Retirement (Par) Plan
Health Plans Lifeline Medicash
Lifeline Wellness Plus
Lifeline Medicash Plus
Lifeline Safety Net
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Savings Plans
Whole Life Participating
Life Gain Plus 25 Participating Plan
20 year Endowment (Par) Plan
Life Pay Money Back Plan
Strategic Products Plans
Bancassurance
1. Capital Builder Plan
Partnership Distribution
1. Max Mangal
2. Capital Builder
3. Max Vriksha
4. Max New York Life Unit Builder
Max Amsure
1. Future Builder
2. Business Builder
3. Bonus Builder
4. Secure Returns Builder
Group Plans
Group Credit Life
Unit Linked Group Superannuation Plan
Group Gratuity cum Term Assurance
Group Term Life
Unit Linked Group Gratuity Plan
Employee Deposit Linked Insurance
Max Super Life
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2.1 NEED OF THE STUDY
The study will help the customer to realize their actual need about the life
insurance.
The study will create awareness in the minds of general public about the life
insurance.
The study will help the customer in a possible way for their betterment of life.
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2.2 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To study the need based selling of life insurance products.
SECONDARY OBJECTIVE:
To create awareness in the minds of the general public.
To study the process of life insurance products.
To study and analyze future outcome of the life insurance products.
To suggest few measures to improve the betterment of the company.
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2.3 SCOPE OF THE STUDY
The study will analyze how the life insurance plays a vital role in the human life
It bridges the gap between the general public and the life insurance companies.
The study will change the perception of the customers about life insurance
The study will increase the selling activities of the life insurance products.
The study will encourage the savings pattern of the general public.
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2.4 LIMITATION OF THE STUDY
The study was confined only to customers at chennai so it cannot begeneralized to other areas.
Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings.
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2.5 REVIEW OF LITERATURE
Needs-Based Selling
A needs-based long-term care sale is an approach to offering financial productsin which the Clients overall financial needs are defined and analyzed. This process goes
into great detail in discovering and analyzing needs and creating recommendations that
align those needs with a suitable product solution.
A needs-based selling system analyzes a customer's situation, needs, and concerns and
determines first which policy is an appropriate option and, how it can best be designed or
structured to meet the customers needs. The process uncovers customers long-term care
concerns, their current financial condition, and projected financial circumstance. Their
issues are personalized so that they begin to actually recognize the extent of their needs.
Based on the results of the process, the most suitable plan can be developed for meeting
the specific needs identified.
Needs based selling is a six -stage process:
Prospecting:
The sales cycle stats with identifying qualified prospects. Prospecting is a process of
continually seeking out people who are interested in and have the current (or) future
potential buying power to purchase insurance. Prospecting forms the hub of the entire
sales cycle. There are several forms of prospecting: cold calls, personal introductions,
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referrals, seminars, strategic alliances with other professional and direct mail. Prospecting
is also referred to as pre approach.
Approach:
The next step is obtaining permission to work with a prospect. This is called theapproach. It is the initial contact an agent advisor has with a prospect. Since first
impressions are important in building a business relationship. This step in the sales cycle
becomes vital to the agent advisors overall success.
Fact finding:
Fact finding is the next step, which involves gathering enough facts from a
prospect to offer viable alternative solution. Here, an agent advisor gathers all relevant
data about the prospect. With all the data in hand, the agent advisor will determine with
the prospects exactly which concerns are important enough to deal with today and which
should take priority for the future. This step is also referred to as the problem step
because there is a problem (or) insurance need that is required to be identified and met by
an appropriate solution.
Solutions:
Given the data and the needs determined in the previous step, designing the
solution that fit the prospects situation is the next step. In this step, the agent advisor
recommends the most suitable insurance product (or) insurance solution including face
amount, premium and service to fulfill the need.
Decision closing:
Once the solution is designed and presented the prospect need to take decision
on buying the insurance plans that have been designed for the prospect. T his is when
agent advisor will close the deal and convert a prospect into a customer.
Referred leads:
Selling insurance is a continuous phenomenon. To remain in this business it is
essential to continuously sell insurance. Referred leads are a golden opportunity that an
agent advisor would have at this point. An agent advisor can ask a new client to give
references of some people known to him/ her, who can be good prospects. But remember,
a client would only do that if the client is satisfied with the services received so far.
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The sales cycle started with prospecting and ended with referred leads. A
referred lead is not the end however it is beginning of another new sales opportunity. In
fact, the referred leads are the one of the effective sources of prospecting. It is a circular
process and this circular process goes on and on throughout the career of agent advisor in
insurance business
Selling Life Insurance Today
Success begins with profiling your clients, offering them value, partnering
with other professionals andabove alldeveloping a passion for your product.
By Karl Lueders and Lucretia DiSanto Jones
Business Wire
Needs-Based Selling is at the Heart of Multicultural Marketing, Insurance Ethics
Leader Advises.
Business Editors
NEW YORK--(BUSINESS WIRE)
"Ethical marketing in the multicultural market is needs-based selling at the most
fundamental level," Brian Atchinson, executive director of the Insurance Marketplace
Standards Association (IMSA), the ethics standards setting organization for the life
insurance, long-term care insurance and annuities industry
To successfully sell life insurance today, keep these points in mind:
Aggressively mine for referrals and profile your current clientele.
Learn to manage the indecisiveness of your clients and prospects.
Capture every opportunity.
Increase your client retention.
Dont forsake the middle market.
Focus on value selling.
Partner with other advisors.
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Specialize.
Sell the client what he needs.
Above all, have a passion for what you sell.
3.1 RESEARCH METHODOLOGY
Research:
Research in common refers to a search for knowledge. The Advanced Learner's
Dictionary of Current English lays down the meaning of research as "a careful
investigation or inquiry specially through search for new facts in any branch of
knowledge." Redman and Mory define research as a "systematized effort to gain new
knowledge." According to Clifford Woody research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and reaching conclusions; and at last carefully testing
the conclusions to determine whether they fit the formulating hypothesis.
Research Design:
The formidable problem that follows the task of defining the research problem is
the preparation of the design of the research project, popularly known as the "research
design". "A research design is the arrangement of conditions for collections and analysis
of data in a manner that aims to combine relevance to the research purpose with the
economy in procedure." The research design adopted for this project is descriptive in
nature.
Descriptive research
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Descriptive research studies are those studies, which are concerned with describing the
characteristics of a particular individual, or of a group. Descriptive research includes
surveys and fact-finding enquiries of different kinds. The major purpose of descriptive
research is description of the state of affairs, as it exists at present. A descriptive study is
undertaken in order to ascertain and be able to describe the characteristics of the variables
of interest in a situation.
Sampling plan
Sampling plan is a definite plan for obtaining a sample from a given population.
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern.
Sampling unit
The sampling unit means that who is to be surveyed.Sample unit consists of the
customers of Max New York.
Sample area
The sample area was in Chennai
.
Sample size
The sample size taken for study is 140, which is obtained through a pilot survey
of 30 samples.
Type of sampling
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Sampling methods are classified as either probability or non-probability.
Probability sampling under restricted sampling techniques may result in complex random
sampling designs. Such designs may as well be called 'mixed sampling designs' for many
of such designs may represent a combination of probability and non-probability sampling
procedures in selecting a sample. Some of such designs are systematic sampling,
stratified sampling, cluster sampling, area sampling, multi-stage sampling, sequential
sampling and sampling with probability proportional to size.
.Sampling technique
Since the sample was selected from a heterogeneous group, Stratified sampling
technique is used in this project
Stratified random sampling is one of the random methods which, by using the
available information concerning the population, attempt to design a more efficient
sample than obtained by the simple random sampling. Here the universe to be sampled is
sub-divided into groups which are mutually exclusive and includes all items in the
universe and a simple random sample is then chosen independently from each group.
Method of data collection
The type of data collection adopted for this research was primary data. Data was
collected from the customers personally with the help of questionnaire. Hence, more
quantitative and better responses were obtained from the customers.
While deciding about the method of data collection to be used for the study, the
researchers should keep in mind two types of data.
Primary Data are those, which are collected afresh and for the first
time, and thus happened to be original in character.
Secondary Data are those which have already been collected by
someone else and which have already been passed through the statistical process.
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Collection of primary data
Primary data is collected during the course of during experiments in an
experimental research but in case of descriptive type and surveys, primary data can be
obtained either through observation or through direct communication with respondents in
one form or another or through personnel interviews. This, in other words, means that
there are several methods of collecting primary data.
The method of collecting primary data through questionnaire is being discussed
below, as this was the technique adopted for survey.
Questionnaire
An important feature of the questionnaire is in design of the question whose forms
and contents depend upon the research objectives and hypothesis. The question should be
such as to translate fully the objective, minimize the distortion of the response and excite
accurate replies, as there are little opportunities to seek further clarification.
The questions where carefully framed keeping in mind the objectives of the
research. The questionnaire was prepared in an unbiased manner giving enough scope tothe customers to speak out what they feel. A total of 22 questions were asked in the
questionnaire.
The Non-disguised structured questionnaire is used for the study. This
approach employs a standardized questionnaire to collect the data on belief, feelings and
attitudes from the respondents.
Types of Questions
Open-ended questions: These questions are used to get the suggestion from the
respondents in order to get feedback to the company.
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Close-ended questions: These questions limit respondents answer to the survey. These
types of questions have a clear delineated set of alternatives that confine the respondents
to choice one of them.
Dichotomous (Yes/No) questions: In this type of questions the respondents are giventwo choices in which the respondents has to select one. For this type of questions we can
apply statistical tools like internal estimate method.
Multiple choice questions: In this type of questions the respondents are given 4-5
choices in which the respondents has to select one. For this type of questions we can
apply statistical tools like Chi-square and weighted average method.
.
Tools used for analysis:
The role of statistics in research is to furnish a tool in designing research,
analyzing its data and drawing conclusions there from. As well it is known that a
researcher cannot ignore the science of statistics. Tools used in the study are as follow.
Percentage Analysis:
Percentage refers to a special kind of ratio. Percentages are used in making
comparison between two or more series of data and to describe the relationships. It can be
also used to compare the relative terms, the distribution of two or more series of data.
Percentage = Number of Respondents 100
Total respondents
Chi square test:
This test is most widely used non-parametric tests in a statistical work. There
may be situation in which it is not possible to make any rigid assumption about
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distribution of the population from which samples being drawn. This limitation has led
to the development of a group of alternative techniques known as non-parametric tests.
To quantity Chi-square describes the magnitude of the discrepancy between
theory and observation. Chi-square is calculated as follows:
Column weight
E = * 100
Row weight
X2 is calculated as follows
X2 =i
ii
E
EO 2)(
Oi = Observed frequency
Ei = Expected frequency
In a contingency table, the degree of freedom is worked out as follows:
Degree of freedom= (c-1)* (r-1)
Where,c- Number of columns.
r- Number of Rows.
Uses of Chi-square:-
To find out whether there is significant difference between the two attributes.
Weighted average method:
This method is widely used in finding the weight age given to different attributed
by respondents. The respondents assign different weight age to the different ranking and
weighted average percentage is found and graphs are plotted.
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Net score = (weight for column * no. of respondents)/total weight
Net score in %age = net score in row /total net score*100
Interval Estimation method
In many situations one is interest to find the no. of customer doing for product of
a particular brand in preference to another suppose that np is the proportion of customers
who for this particular brand. This implies that q=1-p is the proportion of customer.Choosing other brand the estimates for population p is given for (P-1.96pq/N,
p+1.96pq/N) .This is known as 95% confidence interval for p this means that one is
confidence is 95 put of 100 of the population. Parameter would lie in the interval.
(P-1.96pq/N)
(p+1.96pq/N)
Correlation Analysis:
The degree of relationship between the variables under consideration is measured
through correlation analysis. It is also known as simple linear correlation or product
moment method .It is the most widely used method of discovering the extent of
correspondence of movement.
r =n XY XY / [(nX2-(X) 2] [(nY2-(Y) 2]
XY stands for the sum of products of the responding deviations of the various values of
two series from their respective mean, n stands for number of pairs of observations
ANOVA:
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It is a statistical technique specially designed to test whether the means of more
than two quantitative populations are equal. It consists of classifying and cross
classifying statistical result and testing whether the means of a specified result
classification differ significantly.
The analysis of variance is studied by:
1. Correction factor (CF) = T 2
N
2. Total sum of squares(TSS) = X12 + X 22+ X 32 + X42 + + X n 2 CF
3. Sum of squares between the samples (SSC ) =
( X1)2 + (X 2) 2+ (X 3)2 + + (X n) 2 CF
N
4. Sum of squares within samples (SSE) = TSS SSC
5. Construct ANOVA table
6. Calculate the values of F
F = Variance between samples
Variance within samples
BAR DIAGRAM:
Bar diagram is a popular form of diagrammatic representation. This diagram
consists of series of rectangular bars standing on a common base. This comparison
among the bars is only based on their lengths. The length of the bar diagram isproportional to their magnitude.
Simple Bar Diagram:
A simple bar diagram represents single variables like sales, production, profits, etc.
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Multiple bar Diagrams:
Multiple bar diagram is used for comprising two or more sets of statistical data.
Bars are constructed side by side to represent the sets of values for comparison.
PIE DIAGRAM:
The pie diagram ranks its components and a circle can be divided in to sectors. As
their 360 degrees at the centers, proportionate sectors are cut taking the whole data equal
to 360 degrees.
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3.2 DATA ANALYSIS & INTERPERTATION
3.2.1. Table showing the Age of the Respondents
Age Total No of Respondents % of the Respondents
55 25 18
Total 140 100
Findings:
From the above table it was observed that among the total respondent 28%
belonged to the 26 35 yrs, 24% belonged to 36 -45 yrs, 22% belonged to 46- 55 yrs,18% belonged to the >55 and the least investors IS 8% belonged to
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Age of The Respondents
0
5
10
1520
25
30
55
Age
TotalNo
of
Responde
nts
% of the Respondents
Inference:
It is inferred that most of the investors belonged to the 26 -35 years age group.
3.2.2 Table showing the Gender of the Respondents
Gender Total No of Respondents % of the Respondents
Male 82 59
Female 58 41Total 140 100
Findings:
From the above table it was observed that among the total respondent
59% were male and remaining 41% female.
3.2.2. Chart showing the Gender of the respondent
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Gender of Respondents
0
10
20
3040
50
60
70
Male Female
Gender
TotalnoofRespondents
% of the Respondents
Inference:
It is inferred that most of the investors are male investors.
3.2.3 Table showing the Marital Status of the Respondents
Marital Status Total No of Respondents % of the Respondents
Single 13 9
Married 127 91
Total 140 100
Findings:
From the above table it was observed that among the total respondent
91% were married and remaining 9% unmarried
3.2.3 Chart showing the Marital status of the respondents
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Marital Status of Respondents
0
20
4060
80
100
Single Married
Gender
TotalN
oof
Respond
ents
% of the Respondents
Inference:
It is inferred that most of the respondents are married people.
3.2.4 Table Showing the Respondents interested in Taking up Life Insurance
Policy
Option Total No of Respondents % of the RespondentsYes 129 92
No 11 8
Total 140 100
Findings:
From the above table it was observed that among the total respondent 92%
respondents interested in taking up life insurance and 8% not interested in taking up lifeinsurance.
3.2.4. Chart showing Respondents interested in Taking up Life Insurance Policy
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Interested in Taking up Life Insurance
92
8
Yes
No
Inference:
It is inferred that most of the respondents 92% interested in taking up insurance
policy.
Calculation of Interval Estimation:
n = Sample size 140
Yes = 129 No = 11
p = .92 q = .08
p 1.96pq/n
= .92+1.96.92*.08/140 = .92-1.96.92*.08/140
= .92 > p > .91
= 92% > p > 91%
Conclusion:
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From the above test that the respondents interested in taking up life
insurance policy lies between 0.92 and 0.91 at 95% confidence interval and population
proportion lies between 92% to 91%
3.2.5 Table Showing the Reason for taking up Life Insurance
Reasons Total No of Respondents % of the RespondentsSavings 35 27
Life Coverage 51 40
Tax Benefits 15 12
Performance of fund 11 9
Brand Image 9 7
Service 6 5
Total 140 100
Findings:
From the above table it was observed that among the total respondent reason for
taking up Life insurance is Life coverage 40%, Savings 27%, Tax benefit 12%,
Performance o the fund 9%, Brand Image - 7%, Service 5%
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3.2.5 Chart showing the Reason for taking up Life Insurance
Reason for taking up Life Insurance
27
40
12
9
75
Savings
Life Coverage
Tax Benefits
Performance of fund
Brand Image
Service
Inference:
It is inferred that most of the investors are chosen Life coverage (40%) is the
reason for taking up Life Insurance.
3.2.6 Table showing the Respondents aware about the Insurance Companies
Option Total No of Respondents % of the Respondents
Yes 140 100
No 0 0
Total 140 100
Findings:
From the above table it was observed that among the total respondents
100% of investors are aware about the Insurance companies
3.2.6 Chart showing the Respondents aware about the Insurance Companies
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Aware about the Insurance Companies
0
20
40
60
80
100
120
Yes No
Option
TotalN
oof
Respond
ents
% of the Respondents
Inference:
It is inferred that the awareness among the public with regard to insurance
companies is growing rapidly.
3.2.7. Table showing the mode of awareness about the Insurance Companies
Mode Total No of Respondents % of the Respondents
Friends 38 27
Agents 73 52
Newspapers 12 9
Tv 10 7
Web sites 5 4
Others 2 2
Total 140 100
Findings:
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From the above table it was observed that among the total respondents the
majority of the mode of awareness is Agent (52%), and other modes are Friends (27%),
Newspapers (9%), Tv (7%), Websites (4%) and the least mode is Others (2%)
3.2.7 Chart showing the mode of awareness about the Insurance Companies
Mode of Awarness about Insurance Companies
27
52
9
74 2
Friends
Agents
Newspapers
Tv
Web sites
Others
Inference:
It is inferred that most of the investors aware through agent 52%
3.2.8 Table showing the awareness about the Life Insurance Companies
Name of thecompanies
Total No ofRespondents
% of theRespondents
Total No ofRespondents
% of theRespondents
LIC 140 100 0 0
ICICI 81 58 59 42
MAX NEW YORK 72 51 68 49
HDFC 43 31 97 69
SBI 37 26 103 74
BIRLA 78 56 62 44RELIANCE 16 11 124 89
BAJAJ 111 79 29 21
Total 140 100 140 100
Findings:
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From the above table it was observed that among the total respondents themajority of awareness is LIC (100%), and other companies are Bajaj (79%), ICICI(58%), Birla (56%), Max New York (51%), HDFC (31%), SBI (26%) and the least isReliance (11%)
3.2.8. Chart showing the awareness about the Life Insurance Companies
Awarnes About Life Insurance Companies
100
58
513126
56
11
79LIC
ICICI
MAX NEW YORK
HDFC
SBI
BIRLA
RELIANCE
BAJAJ
Inference:
It is inferred that most of the investors aware about LIC 100% still LICdominant the industry.
3.2.9 Table showing the Respondents opinion about Investment in Insurance
Option Total No of Respondents % of the Respondents
Yes 132 94
No 8 6
Total 140 100
Findings:
From the above table it was observed that among the total respondents 94% of
investors feels Insurance is a best investment, 6% feels not best investment.
3.2.10 3.2.9. Chart showing the Respondents opinion about Investment in Insurance
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Respondents opinion about
Investment in Insurance
94
6
Yes
No
Inference:
It is inferred that most of the investors feels insurance is the best investment
for their life 94%
3.2.10. Table Showing Income of the Respondents
Income Total No of Respondents % of the Respondents
50,000 24 17.1
Total 140 100
Findings:
From the above table it was observed that among the total respondents 25%
belonged to the 10,000- 20,000, and 22.9% belonged to 20,001 30,000, 20.7%
belonged to 30,001- 50,000, 17.1% belonged to 50,000
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3.2.10. Chart Showing Income of the Respondents
Income of The Respondents
0
5
1015
20
25
30
50,000
Income
TotalNoof
Respondents
% of the Respondents
Inference:
It is inferred that most of the investors 22.9% belonged to 20,001 30,000
income group.
3.2.11. Table showing monthly expenses of the Respondents
Monthly Expenses Total No of Respondents % of the Respondents75,000 5 3.5
Total 140 100
Findings:
From the above table it was observed that among the total respondents the
monthly expenses the investors is 30% belonged to the 10,000- 25,000, and 28.6%
belonged to 75,000
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3.2.11. Chart showing monthly expenses of the Respondents
Expenses of the Respondnts
05
101520253035
75,000
Monthly Expenses
TotalNoof
Respondents
% of the Respondents
Inference:
It is inferred that most of the investors is 30.7% belonged to 10,000
25,000 expenses category.
3.2.12. Table Showing the respondents expect for the childrens higher education
Amount Total No of Respondents % of the Respondents
10,00,000 65 46.
Total 140 100
Findings:
From the above table it was observed that among the total the investors
expect for the childrens higher education is 46.4% belonged to the >10,00,000 and
25.7 2% belonged to 5,00,0011 10,00,000, 12.2% belonged to 3,00,001 5,00,000,
10.7% belonged to
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3.2.12. Chart Showing the respondents expect for the childrens higher education
Childrens Higher Education
11
5
12
26
46
10,00,000
Inference:
It is inferred that most of the investors is 46.4% belonged to the
>10, 00,000 category.
3.2.13Table showing the respondents require for the childrens marriage
Amount Total No of Respondents % of the Respondents
20,00,000 6 4
Total 140 100
Findings:
From the above table it was observed that among the total respondents theinvestors require for the childrens marriage is 35.7% belonged to the 5,00,001
10,00,000 , and 25.7% belonged to 10,00,001 15,00,000, 19.3% belonged to
20,00,000
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3.2.13. Chart Showing the respondents require for the childrens marriage
Childrens Marriage
19
3626
154
20,00,000
Inference:
It is inferred that most of the investors is 35.7% belonged to the 5, 00,001
10, 00,000 categories.
3.2.14. Table Showing Money require to fulfill the respondents dreams
Amount Total No of Respondents % of the Respondents
50,00,000 15 11
Total 140 100
Findings:
From the above table it was observed that among the total respondents
money require to fulfill the respondents dream is 27.9% belonged to the 10,00,000-
25,00,000, and 25% belonged to 25,00,001 35,00,000, 20% belonged to
50,00,000
3.2.14. Chart Showing Money require to fulfill the respondents dreams
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Respondents Dream
0 5 10 15 20 25 30
50,00,000
Amount
Total No of Respondents
Total No of Respondents
Inference:
It is inferred that most of the investors is 27.9 % belonged to the 10,00,001
25,00,000 category.
3.2.15. Table showing money require to satisfy the needs after retirement of the
respondents
Amount Total No of Respondents % of the Respondents
75,000 11 8
Total 140 100
Findings:
From the above table it was observed that among the total respondents
money require to satisfy after retirement is 32.1% belonged to the 10,000- 25,000,
and 23.6% belonged to 25,001 50,000, 18.5% belonged to 75,000
3.2.15. Chart showing money require to satisfy the needs after retirement of the
respondents
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Money Need After Retairment
05
101520
253035
75,000
Amount
Total No of
Respondents % of the Respondents
Inference:
It is inferred that most of the investors is 32.1% belonged to the 10,001
25,000 category.
3.2.16. Table Showing Respondents Having Medical insurance
Option Total No of Respondents % of the Respondents
Yes 47 33.6
No 93 66.4
Total 140 100
Findings:
From the above table it was observed that among the total respondents 66.4% of
investors not having medical insurance and 33.6.% of investors only having medical
insurance.
3.2.16. Chart Showing Respondents Having Medical insurance
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Respondents Having Medical insurance
33.6
66.4
Yes
No
Inference:
It is inferred that the 66.4% of investors not having medical insurance.
3.2.17. able Showing amount Require for medical emergency for respondents
Amount Total No of Respondents % of the Respondents
50,000 57 40.7
Total 140 100
Findings:
From the above table it was observed that among the total respondents the
amount require for medical emergency 40.7% belonged to the >50,000, 15,001-
30,000 (21.4%), and 15% belonged to 30,001 50,000, 13.6% belonged to 5,001-
15,000, least 9.3% belonged to
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3.2.17. Chart Showing amount Require for medical emergency for respondents
Emergency for Respondents
9.3
13.6
21.4
15
40.750,000
Inference:
It is inferred that most of the investors the amount require for medical
emergency 40.7% belonged to the >50,000 category.
3.2.18. Table Showing the Avenues of investment of the respondents
Avenues Total No of Respondent
yes
% of theRespondents
Total No ofRespondents
No
% of theRespondents
Banks 123 88 17 12
Lands 99 71 41 29
Insurance 88 63 52 37
Govt. Bonds 0 0 140 100
Share market 24 17 116 83
Gold 48 34 92 66
Post Office 5 4 135 96
Total 140 100 140 100
Findings:
From the above table it was observed that among the total respondents the
majority investors like to invest in Banks (88%), Lands (71%), Insurance (63%), Govt
Bonds (0%), Share Market (17%), Gold (34%), and Post office (4%)
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3.2.18. Chart Showing the Avenues of investment of the respondents
Avenues of investment of the respondents
88
71
63
017
34 4 Banks
Lands
Insurance
Govt. Bonds
Share market
Gold
Post Office
Inference:
It is inferred that most of the investors (i.e) 88% like to invest in Banks.
3.2.19. Table Showing the Amount of Investment till now made by the Respondents
Amount Total No of Respondents % of the Respondents
10,00,000 35 25.0
TOTAL 140 100
Findings:
From the above table it was observed that among the total respondents the
amount of investment made by the investors is 25% belonged to the >10,00,000, and
22.8% belonged to 3,00,001 5,00,000, 21.4% belonged to 5,00,001 10,00,000,
17.9% belonged to 1,00,001 3,00,000, least is 12.9% belonged to
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Investment made by the Respondents
0 5 10 15 20 25 30
10,00,000
Am
ount
Total No of Respondents
% of the Respondents
Inference:
It is inferred that most of the investors belonged to >10, 00,000 category
(25%).
3.2.20. Table Showing Respondents Taking Insurance Policy
Option Total No of Respondents % of the Respondents
Yes 108 77.1No 32 22.9
Total 140 100
Findings:
From the above table it was observed that among the total respondents 77.1%
like to take insurance policy and 22.9% not to take insurance policy.
3.2.20. Chart Showing Respondents Taking Insurance Policy
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Taking Insurance Policy
0
20
4060
80
100
Yes No
Option
TotalN
oof
Respondents
% of the Respondents
Inference:
It is inferred that most of the investors (i.e) 77.1% like to take insurance policy.
3.2.21. Table Showing the Insurance companies the respondents Taken the policy
Companies Total No of Respondents % of the RespondentsLIC 82 75.9
HDFC 33 30.5
MAX NEW YORK 49 45.3
RELIANCE 29 26.9
BIRLA 62 57.4
ICICI 54 50.0
OTHERS 24 22.2
Total 140 100
Findings:
From the above table it was observed that among the total respondents themajority of the investors like to take insurance in LIC (75.9%), and other companies areBrila (57%), ICICI (50%), Max New York (45.3%), HDFC (30.5%), Reliance (26.9%),others (22.2%)
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3.2.21. Chart Showing the Insurance companies the respondents Taken the policy
the Insurance companies the respondents Taken the policy
0 20 40 60 80
LIC
HDFC
MAX NEW YORK
RELIANCE
BIRLA
ICICI
OTHERS
Companies
Total No of Respondents
% of the Respondents
Inference:
It is inferred that most of the investors (i.e) 75.9% like to take insurancepolicy in LIC.
3.2.22. Table showing the savings of the respondents
Amount Total No of Respondents % of the Respondents50,000 13 9.3
Total 140 100
Findings:
From the above table it was observed that among the total respondents most
of the investors is 28.6% belonged to the 5,001 10,000, 10,001- 25,000 (27.1%),
and 19.3% belonged to50,000
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3.2.22. Chart showing the savings of the respondents
Savings of the Respondents
19.3
28.6
27.1
15.7
9.3
50,000
Inference:
It is inferred most of the investors is 28.6% belonged to 5,001 10,000 of
savings category.
Calculation showing chi-square test ofindependence
Chi-Square Test on Income & Savings of the respondents
Null Hypothesis Ho: There is no relation between income & savings of the respondents.
Alternative Hypothesis H1: There is significant relation between income & savings of
the respondents.
3.2.22. (a) Table showing Income & Savings of the respondents
Oi Ei (oi Ei) (Oi Ei)2 (Oi Ei)2/Ei
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27 28 -1 1 0.04
40 28 12 144 5.14
38 38 10 100 3.57
22 28 -6 36 1.28
13 28 -25 625 22.32
Calculated chi square value: 32.35
Inference:
= 5% with n-1 degrees of freedom
n => 5-1 =4
From chi square table at = 5%, 4 degrees of freedom
With (5-1) df = 4, df = 9.488
2table = 32.35
Calculated value > Table value
Therefore H1 is accepted.
Conclusion:
Hence,there is relation between income & savings of the respondents..
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Calculation of Pearsons Co-efficient of Correlation
3.2.22. (b) Table showing correlation between Income & Savings of the respondents
X Y X2 Y2 XY
20 27 400 729 540
35 40 1225 1600 1400
32 38 1024 1444 1216
29 22 841 484 638
24 13 576 169 312
X = 140 Y = 140 X2 = 4066 Y2 = 4426 XY = 4106
r = 5(4106) 140(140)
(5(4066) - 1402) * (5(4426) - 1402)
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n = 5
r = 0.6843
Conclusion:
Thus there exists a degree of positive correlation between the income and the
savings of the respondents.
3.2.23. Table Showing the aware of services offered by the various Insurance
Companies
Option Total No of Respondents % of the Respondents
Yes 107 76
No 33 23
Total 140 100
Findings:
From the above table it was observed that among the total respondents the
awareness of services offered by the insurance companies is 84.3 % and unaware is
15.7%
3.2.23. Chart Showing the aware of services offered by the various Insurance
Companies
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Service offered by the Various Insurance Companies
76
23
Yes
No
Inference:
It is inferred that most of the investors were aware about services offered by
various insurance companies is 84.3%
Calculation of Interval Estimation:
n = Sample size 140
Yes = 118 No = 22
p = .84 q = .16
p zpq/n
= .84+1.96.84*.16/140 = .84-1.96.84*.16/140
= .85 > p > .83
= 85% > p >83 %
Conclusion:
From the above test that the respondents aware about the services offered by
various insurance companies lies between 0.85 and 0.83 at 95% confidence interval and
population proportion lies between 85% to 83%
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Calculations of Two - way ANOVA:
ANOVA Test on Customer awareness of the services offered by
insurance companies & Interest towards Taking up insurance Policy
Null Hypothesis Ho: There is no relation between customer awareness of the services
offered by insurance companies & interest towards taking up insurance policy.
Alternative Hypothesis H1: There is significant relation between customer awareness of
the services offered by insurance companies & interest towards taking up insurance
policy.
3.2.23 (A) Table showing Cross Tabulation for Customer awareness
of services offered by insurance companies &Interest towards taking
up insurance Policy
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Insurance Policy
Awareness
Yes No Total
Yes 72 35 107
No 11 22 33
Total 83 57 140
Correction Factor CF = T/N
= 140/4 = 4900
Total sum of squares SST = 72 +35 + 11 + 22 - CF
= 5184 + 1225 + 121 + 484 - 4900
= 2114
Sum of squares between columns SSC = 83/2 + 57/2 CF
= 3444.5 + 1624.5 - 4900
= 169
Sum of squares between Rows SSR = 107/2 + 33/2 CF
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= 5724.5 + 544.5 - 4900
= 1369
Residual SSE = SST - (SSC + SSR)
= 2114 (169+1369)
= 576
ANOVA TABLE
Source of
Variation
Sum of
squares
Degrees of
freedom
Variance F value
Between
columns
SSC = 169 (c-1) = 2 -1 = 1
169 0.29
Between rows SSR = 1369 (r-1) = 2 -1 = 1
1369 2.38
Residual SSE = 576 (c-1)(r-1) = 1
576
Inference:
For Degrees of freedom (1, 1) the table of F = 161.4
Calculated F value < Table value.
Hence the null hypothesis is accepted.
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Conclusion:
There is no relation between awareness of services offered by insurance
companies & interest towards taking up insurance policy.
3.2.24Table showing the respondents like to take Insurance policy in Max New York
Life Insurance
Option Total No of Respondents % of the Respondents
Yes 83 59
No 57 41
Total 140 100
Findings:
From the above table it was observed that among the total respondents 41.4% of
the investors like to take Max New York life insurance policy and 58.6% of investors not
to take insurance policy.
3.2.24. Chart showing the respondents like to take Insurance policy in Max New
York Life Insurance
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0 10 20 30 40 50 60
Total No of Respondents
Yes
No
Option
Max New York Life Insurance
% of the Respondents
Inference:
It is inferred that the 41.4% of respondents like to take Max New York LifeInsurance Policy.
3.2.25. Table showing the tenure of taking policy of the respondents
Tenure Total No of Respondents % of the Respondents
20 yrs 11 7.9
Total 140 100
Findings:
From the above table it was observed that among the total respondents 32.1%
belonged to the 5 10yrs tenure, 28.6% belonged to the 10 -15 yrs , 16.4% belonged to
20yrs
3.2.25. Chart showing the tenure of taking policy of the respondents
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Tedure of Taking Policy
16.4
32.128.6
15
7.9
20 yrs
Inference:
It is inferred that most of the investors 32.1% belonged to 5 -10Years of tenure of
policy.
Calculation showing chi-square test ofindependence
Chi-Square Test on Age & Tenure of policy taken by the respondent
Null Hypothesis Ho: There is no relation between the age & the tenure of policy taken
by the respondents.
Alternative Hypothesis H1: There is relation between the age & the tenure of policy
taken by the respondents.
3.2.25(a) Table showing Age & Tenure of policy taken by the
respondent
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Oi Ei (Oi Ei) (Oi Ei)2 (Oi Ei)2/Ei
23 28 -5 25 0.89
45 28 17 289 10.32
40 28 12 144 5.14
21 28 -7 49 1.75
11 28 -17 289 10.32
Calculated chi square value: 28.42
Inference:
= 5% with n-1 degrees of freedom
n => 5-1 =4
From chi square table at = 5%, 4 degrees of freedom
With (5-1) df = 4, df = 9.488
2table = 28.42
Calculated value > Table value
Therefore H1 is accepted.
Conclusion:
Hence,there is relation between the age & the tenure of policy taken by the
respondents.
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Calculation of Pearsons Co-efficient of Correlation
3.2.25. (b) Table showing correlation between Age & Tenure of policy taken by the
respondent
X Y X2 Y2 XY
11 23 121 529 253
39 45 1521 2025 1755
34 40 1156 1600 1360
31 21 961 441 651
25 11 625 121 275
X = 140 Y = 140 X2 = 4384 Y2 = 4716 XY = 4294
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r = 5(4294) 140(140)
(5(4384) - 1402) * (5(4716) - 1402)
n = 5
r = 0.6154
Conclusion:
Thus there exists a degree of positive correlation between the Age and tenure of
policy taken by the respondents.
3.2.26. Weighted Average on awareness of service offered by
various Life Insurance companies
Companies Whole life
(7)
Endowment
(6)
Money
back(5)
Child
plan(4)
Health
plan(3)
Pension
plan(2)
ULIPS
(1)
LIC 140 24 78 23 4 18 38
HDFC 32 8 14 27 8 4 30
Max NewYork
44 12 18 59 12 14 62
Birla 52 14 21 54 13 20 67
Reliance 21 5 10 46 5 10 65
ICICI 25 3 5 49 3 12 58
Weight:
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Whole life = 7
Endowment = 6
Money back = 5
Child plan = 4
Health plan = 3
Pension plan = 2ULIPS = 1
Weighted average table:
Companies 7 6 5 4 3 2 1 WA Rank
LIC 780 1444 390 92 12 36 38 53.29 1
HDFC 224 48 70 108 24 8 30 18.29 4
Max NewYork
308 72 90 236 36 28 62 29.71 3
Birla 364 84 105 216 39 40 67 32.68 2
Reliance 147 30 50 184 15 20 65 18.25 5
ICICI 175 18 25 196 9 24 58 18.04 6
1. 780 +144 + 390 + 92 + 12 + 36 + 38
152. 224 + 48 + 70 +108 + 24 + 8 + 30
153. 308 + 72 + 90 + 236 + 36 + 28 + 62
154. 3.64 + 84 + 105 + 216 + 39 + 40 + 67
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155. 147 + 30 + 50 + 184 + 15 + 20 + 65
15
6. 175 + 18 + 25 + 196 + 9 + 24 + 5815
Inference:
It is inferred that the most influencing service offered by LIC is 53.29, Birla is
32.68, Max New York is 29.71, HDFC is 18.29, Reliance is 18.25 and ICICI is 18.04
3.2.27. Weighted Average On Life Insurance Products Offered By
Various Insuracne Companies
a) LIC
S. No Services HS S NSNDS DS HDS
1 Whole life 41 49 20 33 21
2 Child Plan 23 30 10 5 0
3 Health plan 20 23 15 15 5
4 Pension Plan 14 10 0 0 0
5 Growth Plan 25 15 20 25 10
Weight:
Highly satisfied = 5
Satisfied = 4
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Neither satisfied nor dissatisfied = 3
Dissatisfied = 2
Highly dissatisfied = 1
Weighted average Table:
Services HS S NSNDS DS HDS WA Rank
1 205 196 60 66 21 36.53 1
2 115 120 30 10 0 18.33 3
3 100 92 45 30 5 18.13 4
4 70 40 0 0 0 7.33 5
5 125 60 60 50 10 20.33 2
1. 205 + 196 + 60 + 66 + 21
15
2. 115 + 120 + 30 + 10 + 0
15
3. 10 + 92 + 45 + 30 + 5
15
4. 70 + 40 + 0 + 0 + 015
5. 125 + 60 + 60 +50 + 10
15
Inference:
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It is inferred that the majority of the services offered by LIC is Whole life policy
(13.6.53), Growth Plan (20.33), Child plan (18.33), Health plan (18.13) and least service
is Pension plan (7.33)
b) Max New York
S. No Services HS S NSNDS DS HDS
1 Whole life 30 10 5 15 0
2 Child Plan 34 31 5 0 0
3 Health plan 11 12 14 5 0
4 Pension Plan 12 6 3 0 0
5 Growth Plan 23 21 10 7 3
Weighted average Table:
Services HS S NSNDS DS HDS WA Rank 1 150 40 15 30 10 15.67 32 170 124 15 0 0 20.60 13 55 48 42 10 0 10.33 44 60 24 9 0 0 6.20 55 115 84 30 14 3 16.40 2
Inference:
It is inferred that the majority of the services offered by Max New York Life
Insurance is Child plan (20.6), Growth plan (16.4), Whole plan (15.67), Health plan
(10.33) and least service is Pension pan (6.20).
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c) HDFC
S. No Services HS S NSNDS DS HDS
1 Whole life 4 5 15 25 32
2 Child Plan 15 17 15 0 0
3 Health plan 21 13 0 1 0
4 Pension Plan 17 21 0 4 1
5 Growth Plan 35 22 15 2 1
Weighted average Table:
Services HS S NSNDS DS HDS WA Rank 1 20 20 45 50 32 11.13 42 75 68 45 0 0 12.53 23 105 52 0 2 0 10.60 54 85 84 0 8 1 11.87 35 175 88 45 4 1 20.87 1
Inference:
It is inferred that the majority of the services offered by HDFC is Growth plan(20.87),Child plan (12.53), Pension plan (11.87), Whole life (11.13) and least service is
Health plan (10.5).
d) ICICI
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S. No Services HS S NSNDS DS HDS
1 Whole life 10 15 5 3 2
2 Child Plan 20 21 10 3 0
3 Health plan 23 17 0 3 0
4 Pension Plan 20 25 0 1 0
5 Growth Plan 47 31 13 5 4
Weighted average Table:
Services HS S NSNDS DS HDS WA Rank 1 50 60 15 6 2 8.87 52 100 84 30 6 0 14.67 2
3 115 68 0 6 0 12.6 44 100 100 0 2 0 13.47 35 235 124 39 10 4 27.47 1
Inference:
It is inferred that the majority of the services offered by ICICI is Growth plan
(27.47), Child plan (14.67), Pension plan (13.47), Health plan (12.6) and least service is
Whole life (8.87).
e) Others
S. No Services HS S NSNDS DS HDS
1 Whole life 15 13 4 1 0
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2 Child Plan 10 13 14 0 2
3 Health plan 12 14 15 0 4
4 Pension Plan 31 33 10 0 0
5 Growth Plan 45 29 12 3 0
Weighted average Table:
Services HS S NSNDS DS HDS WA Rank 1 75 52 12 20 0 9.40 52 50 52 42 0 2 9.73 43 60 56 45 0 4 11 34 155 132 30 0 0 21.13 25 225 116 36 6 0 25.53 1
Inference:
It is inferred that the majority of the services offered by other life insurance is
Growth plan (25.53), Pension pl