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CHAPTER 1
INTRODUCTION
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CONCEPT OF INSURANCE
Human life is subject to various risksrisk of death or
disability due to natural or accidental causes. Humans are also
prone to diseases, the treatment of which may involve huge
expenditure. On the other hand, property owned by man is
exposed to various hazards, natural and man-made.
When human life is lost or a person is disabled permanently
or temporarily, there is a loss of income to the household. The
family is put to hardship. Sometimes survival itself is at stake for
the dependants. When it comes to property, loss or damage to
property it results in either whole or partial loss in income to the
person or entity.
Risk has the element of unpredictability. Death/disability or
loss/damage could occur at anytime. Losses can be mitigated
through insurance. Insurance is a commodity which offers
protection against various contingencies.
Insurance products available for life and non-life are many.
In non-life, apart form personal covers such as accident covers
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perils of nature including flood, earthquake etc. Machinery may
be insured for breakdown. Goods in transit can be insured under
a marine cargo insurance cover. Insurance covers are also
available for ships and other vessels. A motor insurance policycovers third party damage as well as damage to the vehicle.
Insurance of property is based on the principle of indemnity.
The idea is to bring the insured to the same financial position as
he /she was before the loss occurred. It safeguards the
investment in the property. Where there is no insurance, losses
can mar a project or an industry. General Insurance offers
stability to the economy and to the society.
Insurance offers security and so peace of mind to the
individual. The concept of insurance is that the losses of a few are
made good by contribution from many. It is based on the law of
large numbers. It stemmed from the need of man to find a
solution for mitigation of losses. It also reflects the nature of man
to find a solution collectively.
It is important for all to understand the various products
that life and general insurance companies offer before they make
a choice as to the product they want to buy.
As per regulations, insurers have to give the various
features of the products at the point of sale. The insured should
also go through the various terms and conditions of the products
and understand what they have bought and met their insurance
needs. They ought to understand the claim procedures so that
they know what to do in the event of a loss.
The concept of insurance is that the losses of a few are
made good by contribution from many. It is based on the law of
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large numbers. It stemmed from the need of man to find a
solution for mitigation of losses. It also reflects the nature of man
to find a solution collectively.
The meaning of insurance:Insurance is a policy froma large financial institution that offers a person,
company, or other entity reimbursement or financial
protection against possible future losses or damages.
The meaning of insurance is important to understand for
anybody that is considering buying an insurance policy or simply
understanding the basics of finance.
Insurance is a hedging instrument used as a
precautionary measure against future contingent losses.
This instrument is used for managing the possible risks of
the future.
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INSURANCE SECTOR IN INDIA
The insurance sector in India has come as a full circle from
being an open competitive market to nationalization and back toa liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost 190 years.
The business of life insurance in India in its existing form
started in India in the year 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta.
Some of the important milestones in the life insurance business
in India are:
1818: Oriental Insurance company first insurance company
in India.
1870: Bombay mutual life assurance company first Indian
Insurance company.
1912: The Indian Life Assurance Companies Act enacted as
the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to
enable the government to collect statistical information
about both life and non-life insurance businesses.
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1938: Earlier legislation consolidated and amended to by
the Insurance Act with the objective of protecting the
interests of the insuring public.
1956: 245 Indian and foreign insurers and providentsocieties taken over by the central government and
nationalised. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
India's share in the global life insurance business rose to
1.97% in 2007 as compared to 1.68% in 2006.
However, the business volume in new life insurance
products has slowed down considerably in the 2007 to 2008
period.
But the overall business growth has been more than 36%
(measured in dollar terms). One reason for this has been rupee
appreciation (in terms of the US dollar). Another factor has been
the premium renewal factor.
As per a report from Swiss Re, the global life insurance
market experienced a real growth rate of 5.4%. This is the
inflation adjusted growth. The comparable figure for India was
14.2% for the 2008-09 period. This was two-and-half times over
the global average.
Swiss Re predicts a robust life insurance sector for 2008 but
quite the opposite scenario for the non -life sector. A modest
growth is forecasted for 2008 in view of the stock market and
capital market volatility.
Later on the following companies had thus been granted
licenses:
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ICICI -Prudential
Reliance General
Reliance Life
Tata-AIG General
HDFC StandardLife
Royal-Sundaram
Max-New York Life
IFFCO-Tokio Marine
Birla-SunLife
Bajaj-AllianzGeneral
Tata-AIG Life
ING-Vyasa
Bajaj-Allianz Life
SBICardiff Life
All of these companies were either in the life insurance
business or in the non-life insurance business. No license was
granted for reinsurance business.
Registration Of Private Companies With IRDA For LifeInsurance Business.
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The Indian insurance industry is governed by the Insurance
Act 1978, the General Insurance Business Act 1972, Life
Insurance Corporation Act 1956 and Insurance Regulatory and
Development Authority Act, 1999. The capital requirement for
starting a general or Life Insurance Company is equity paid-up
Sr.no. Reg.n
o
Date of
reg.
Name of the company
1 101 23.10.2000 HDFC Standard Life Insurance Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company Ltd.4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance
Limited5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private
Limited9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.11 121 03.01.2002 Reliance Life Insurance Company Limited.
12 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
13 127 06.02.2004 Sahara India Insurance Company Ltd.
14 128 17.11.2005 Shriram Life Insurance Company Ltd.
15 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.
16 133 04.09.2007 Future Generali India Life Insurance Company
Limited
17 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
18 136 08.05.2008 Canara HSBC Oriental Bank of Commerce Life
Insurance Company Ltd.19 138 27.06.2008 Aegon Religare Life Insurance Company Ltd.
20 140 27.06.2008 DLF Pramerica Life Insurance Company Ltd.
21 142 Star Union Dai-ichi Life Insurance Co. Ltd.,
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capital of Rs. 100 corer and for starting a reinsurance company it
is Rs. 200 corer. The solvency margin requirements have been
laid down in section 64VA of the Act. It has been stated that the
required solvency margin shall be the highest of1) Rs. 50 cr and Rs. 100 cr in case of reinsurance,
2) A sum equivalent to 30% of net incurred claims.
The supervisory controls on insurance companies are
exercised by Insurance Development and Regulatory Authority
(IRDA) and these powers flow from Insurance Act, 1938 as well as
IRDA Act 1999. Regulatory and supervisory powers of the
authority are wide and pervasive. These controls are exercised
through grant of licence to insurance to an insurance company,
approving its product and pricing, guiding deployment of
investment funds, prescribing solvency margin, making it
obligatory to appoint an actuary by the companies and approving
the appointment of chief executives of the companies. The
authority has also got the powers of investigation and inspection,
monitoring the activities of intermediaries, making it obligatory
on the part of insurance companies to prepare a balance sheet, a
profit and loss account, a separate account of receipts and
payments and a revenue account in respect of each class of
business. It also has the power to issue licenses to surveyors and
loss assessors and guiding reinsurance programs to insurance
companies.
Distribution Channels
Till date insurance agents still remain the main sources
through which insurance products are sold. The concept is very
well established in the country like India but still the increasing
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use of other sources is imperative. It therefore makes sense to
look at well-balanced, alternative channels of distribution.
LIC has already well established and have an extensive
distribution channel and presence. New players may find itexpensive and time consuming to bring up a distribution network
to such standards. Therefore they are looking to the diverse
areas of distribution channel to have an advantage. At present
the distribution channels that are available in the market are:
Direct selling
Corporate agents
Group selling
Brokers and co-operative societies
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WHAT IS LIFE INSURANCE
Life insurance is insurance on human beings. Though
Human Life cannot be valued, a monetary sum could be
determined which is based on loss of income in future years.
Hence in life insurance, the sum assured is by way of a benefit
in the case of life insurance. Life insurance products provide a
definite amount of money to the dependents of the insured in
case the life insured dies during his active income earning period
or becomes disables on account of an accident causing
reduction/complete loss in his income earnings.
An individual can also protect his old age when he ceases to
earn and has no other means of income by purchasing an
annuity product.
There are a number of life insurance products which offer
protection and also coupled with savings.
Life Insurance is insurance for you and your family's peace
of mind. Life insurance is a policy that people buy from a life
insurance company, which can be the basis of protection and
financial stability after one's death. Its function is to help
beneficiaries financially after the owner of the policy dies.
It can also be a form of savings in the long run if you
purchase a plan, which offers the option of contributing regularly.
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Additionally, a little known function of life insurance is that it can
be tied in with a person's pension plan. A person can make
contributions to a pension that is funded by a life insurance
company. These are considered private pension arrangements.In addition, you should also make a list of what you feel
needs to be protected in your family's way of life. With a life
insurance policy in place, A person can:
provide security for his/her family
protect their home mortgage
take care of their estate planning needs
look at other retirement savings/income vehicles
Life insurance offers a way to replace the loss of income
that occurs when someone dies (usually the person who produces
the majority of income in a family situation). It is a contract
between a person as the insured person and the company or
"carrier" that is providing the insurance. If policyholder dies while
the contract is in force, the insurance company pays a specified
sum of money free of income tax "cash benefits" to the
person or persons you name as beneficiaries.
A good life insurance program does more than just replace
the loss of income that occurs if you die. It should also provide
money to cover the new costs that arise after your death
funeral expenses, taxes, probate costs, the need for
housekeepers and child care, and so on. And these cash benefits
should provide for your family's future needs as well, including
college education for your children and part or all of your
spouse's retirement needs. In almost all cases, your beneficiary
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can use the cash benefits in the way he or she sees fit, without
restriction.
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NEED FOR LIFE INSURANCE
If there is someone who would suffer economic hardship if a
person died, then the answer is yes... you need life insurance!Families with young children have a clear need for life insurance.
If both spouses work, the loss of one income will cause the family
immediate economic hardship and make it harder for them to
realize future goals, such as paying for the children's' education.
But even if one spouse works "inside the home" and doesn't bring
in a formal income, his or her death will require the surviving
spouse to hire child care, housekeepers and other professionals
to help run the household - and that can be a significant new
expense.
If a person is married; without children or single, then
he/she may need life insurance to protect their partner or
surviving family members against the costs associated with the
persons death. Funeral expenses, probate and administrative
fees, outstanding debts, special obligations to charities, and
federal and state taxes are costs that all of us must consider.
And, they can add up quickly. Unless a person already has
sufficient financial resources, his/her survivors will probably need
life insurance to cover these expenses.
A person needs life insurance if he/she wants to provide
financial protection for their dependents (or to their creditors) in
the event of their death. A business may want to use life
insurance to fund its employee benefit plans, protect against the
premature death of a key person or to provide for business
continuation.
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The following are typical examples of family and business
purposes to consider when assessing the need for life insurance:
Dependent children.
Dependent spouse, parent or grandparent. Credit enhancement.
Key person indemnification.
Business continuation.
Employee benefit plans.
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ADVANTAGES OF HAVING LIFE INSURANCE
It is a general belief that life insurance is meant only for
those with families. It is true that Life Insurance Policies likewhole-life insurance, joint-life-insurance, pension-life-insurance
etc are essential for family's financial security, but they are
equally important for individuals. Term Insurance policies protect
a persons financial resources against the uncertainties of life so
he/she can protect their family's future.
Some of the life insurance advantages are:
If an estate owner has not accumulated enough assets for
his family. Insurance quote helps create an instant estate
for the sake of the Familys security.
Life Insurance provides the option to pass equal assets to
the children who are not active in the Family business at the
time the family business is passed on.
Life Insurance policies can help secure the future of children
for college/educational purposes as the amount of life
Insurance Policy increases on a minors or parents life.
The growth of a cash-value policy is tax-deferred - you do
not pay taxes on the cash value accumulation until you
withdraw funds from the policy.
Life Insurance can be useful in paying estate taxes, along
with other estate settlement amounts. Federal Estate Taxes
are due nine months after death.
If theres a Business Transfer, life insurance can provide
ready cash to finance a transaction between business
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owners who are ready to buy the deceased owners share
from his or her estate after death.
If theres a home mortgage, one can pass the family
residence to their spouse/children to free them of anymortgage if one has a Life Insurance Policy for the same. It
is preferred to have a decreasing term policy that decreases
in face amount as the mortgage balance is paid down.
Life Insurance helps retain your Business from the loss of a
key employee. Untimely death of a key employee can pose
severe financial loss to the business.
The right insurance proceeds can provide liquidity to pay off
personal loans or business loans.
Charitable Remainder Trusts provide tax benefits. Life
Insurance helps replace a charitable gift.
A lot of Insurance products presently provide good returns,
which could be a beneficial way for saving necessary funds
for retirement years.
Benefits are available immediately and may be used to help
pay expenses such as final illness and funeral costs,
eliminating the need to sell estate assets to cover these
costs.
Why is insurance superior to other forms of
savings
Protection
Aid to thrift
Liquidity
Tax relief
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Money when you need it
Tax Savings through Insurance
Life insurance may be divided into two basic classes:
Temporary and Permanent or following subclasses Term, Wholelife, Universal, and Endowment life insurance.
Term Insurance
Term assurance provides life insurance coverage for a
specified term of years in exchange for a specified premium. The
policy does not accumulate cash value. Term is generally
considered "pure" insurance, where the premium buys protection
in the event of death and nothing else.
There are two basic types of life insurance: whole life
insurance and term life insurance. Term life insurance policies
have a set duration that limit the coverage period. It is then up to
the term life insurance policy owner to decide whether to renew
the term life insurance policy, or to let the coverage terminate.
Yes, there are quite a few different types of life insurance
policies out there. However, the two most basic and important
that you really need to know about are the one-year renewable
term and the straight life insurance. These two can satisfy the
needs of most buyers.
There are three key factors to be considered in term
insurance:
1. Face amount (protection or death benefit),2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).
Various insurance companies sell term insurance with many
different combinations of these three parameters. The face
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amount can remain constant or decline. The term can be for one
or more years. The premium can remain level or increase.
Common types of term insurance include Level, Annual
Renewable and Mortgage insurance.Annual renewable term is a one year policy but the
insurance company guarantees it will issue a policy of equal or
lesser amount without regard to the insurability of the insured
and with a premium set for the insured's age at that time.
Advantages of Term Life Insurance:
It pays a death benefit to the beneficiary you name.
It will cover your final expenses and provide a lump sum
for your dependents.
It covers you for the full amount of life insurance you
choose.
It can be convertible and renewable depending on the
policy.
It gradually increases annual premium as you get older.
It traditionally works well to meet temporary insurance
needs.
Disadvantages of Term Life Insurance:
It doesn't provide a cash value account for some later point
such as retirement.
Mortgage insurance:-
Another common type of term insurance is mortgage
insurance, which is usually a level premium, declining face
value policy. The face amount is intended to equal the amount of
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the mortgage on the policy owners residence so the mortgage
will be paid if the insured dies.
A policy holder insures his life for a specified term. If he dies
before that specified term is up (with the exception of suicide seebelow), his estate or named beneficiary receives a payout. If he
does not die before the term is up, he receives nothing. However,
in some European countries (notably Serbia), insurance policy is
such that the policy holder receives the amount he has insured
himself to, or the amount he has paid to the insurance company
in the past years. Suicide used to be excluded from ALL insurance
policies, however, after a number of court judgments against the
industry, payouts do occur on death by suicide (presumably
except for in the unlikely case that it can be shown that the
suicide was just to benefit from the policy). Generally, if an
insured person commits suicide within the first two policy years,
the insurer will return the premiums paid. However, a death
benefit will usually be paid if the suicide occurs after the two year
period.
Permanent Life Insurance:-
Permanent life insurance is life insurance that remains in
force (in-line) until the policy matures (pays out), unless the
owner fails to pay the premium when due (the policy expires OR
policies lapse). The policy cannot be canceled by the insurer for
any reason except fraud in the application, and that cancellation
must occur within a period of time defined by law (usually two
years). Permanent insurance builds a cash value that reduces the
amount at risk to the insurance company and thus the insurance
expense over time. This means that a policy with a million dollar
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face value can be relatively expensive to a 70 year old. The
owner can access the money in the cash value by withdrawing
money, borrowing the cash value, or surrendering the policy and
receiving the surrender value.The four basic types of permanent insurance are:-
Whole life
Universal life
Limited pay
Endowment.
Whole life coverage:
As the name implies, whole life insurance covers the
policyholder for his or her whole life. There is no fixed end date
for the policy, as there is with term life insurance. When the
policy holder dies, the face value of the policy, known as a death
benefit, is paid to the person or persons named in the life
insurance policy (the beneficiary or beneficiaries).
The cost of a whole life insurance policy is spread out across
many years, so the premium remains the same. This ensures that
older people on a fixed income will not have to cope with rising
premiums.
Whole life insurance policies are different than term life
insurance policies because the duration extends till the insured
reaches 100 (hence, a whole life).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. The primary
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disadvantages of whole life are premium inflexibility, and the
internal in the policy may not be competitive with other savings
alternatives. Also, the cash values are generally kept by the
insurance company at the time of death, the death benefit onlyto the beneficiaries. Riders are available that can allow one to
increase the death benefit by paying additional premium. The
death benefit can also be increased through the use of policy
dividends. Dividends cannot be guaranteed and may be higher or
lower than historical rates over time. Premiums are much higher
than term insurance in the short term, but cumulative premiums
are roughly equal if policies are kept in force until average life
expectancy.
Cash value can be accessed at any time through policy
"loans" and are received "income-tax free". Since these loans
decrease the death benefit if not paid back, payback is optional.
Cash values support the death benefit so only the death benefit is
paid out.
Dividends can be utilized in many ways. First, if Paid up
additions is elected, dividend cash values will purchase additional
death benefit which will increase the death benefit of the policy
to the named beneficiary. Another alternative is to opt in for
'reduced premiums' on some policies. This reduces the owed
premiums by the unguaranteed dividends amount. A third option
allows the owner to take the dividends as they are paid out.
(Although some policies provide other/different/less options than
these - it depends on the company for some cases)
Universal life coverage:-
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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 greater growth of cash values. There are severaltypes of universal life insurance policies which include "interest
sensitive" (also known as "traditional fixed universal life
insurance"), variable universal life (VUL), guaranteed death
benefit, and equity indexed universal life insurance.
Universal life insurance offers many features of whole life
insurance, but allows greater flexibility once the policy is in force.
Like whole life insurance, universal life insurance is a permanent
policy. It protects the policyholder until deathhowever long that
may be. Also like whole life insurance, universal life insurance
accrues cash value over time.
A universal life insurance policy includes a cash value.
Premiums increase the cash values, but the cost of insurance
(along with any other charges assessed by the insurance
company) reduces cash values. However, with the exception of
VUL, interest is credited on cash values at a rate specified by the
company and may also increase cash values. With VUL, cash
values will ebb and flow relative to the performance of the
investment sub accounts the policy owner has chosen. The
surrender value of the policy is the amount payable to the policy
owner after applicable surrender charges, if any.
Universal life insurance addresses the perceived
disadvantages of whole life namely that premiums and death
benefit are fixed. With universal life, both the premiums and
death benefit are flexible. Except with regards to guaranteed
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death benefit universal life, this flexibility comes at a price:
reduced guarantees.
Depending on how interest is credited, the internal rate of
return can be higher because it moves with prevailing interestrates (interest-sensitive) or the financial markets (Equity Indexed
Universal Life and Variable Universal Life). Mortality costs and
administrative charges are known. And cash value may be
considered more easily attainable because the owner can
discontinue premiums if the cash value allows it.
Flexible death benefit means the policy owner can choose
to decrease the death benefit. The death benefit could also be
increased by the policy owner but that would (typically) require
that the insured go through new underwriting. Another example
of flexible death benefit is the ability to choose option A or option
B death benefits - and to be able to change those options during
the life of the insured.
Option A is often referred to as a level death benefit.
Generally speaking, the death benefit will remain level for the life
of the insured and premiums are expected to be lower than
policies with an Option B death benefit.
Option B pays the face amount plus the cash value. If cash
values grow over time, so would the death benefit which is
payable to the insured's beneficiaries. If cash values decline, the
death benefit would also decline. Presumably option B death
benefit policies require greater premium than option A policies.
Limited-pay
Limited-pay life insurance:-
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Another type of permanent insurance is Limited-pay life
insurance, in which all the premiums are paid over a specified
period after which no additional premiums are due to keep the
policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.
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Accidental Death:-
Accidental death is a limited life insurance that is designed
to cover the insured when they pass away due to an accident.
Accidents include anything from an injury, but do not typicallycover any deaths resulting from health problems or suicide.
Because they only cover accidents, these policies are much less
expensive than other life insurances.
In anAD&D policy, benefits are available not only for
accidental death, but also for loss of limbs or bodily functions
such as sight and hearing, etc.
Accidental death benefits can also be added to a standard
life insurance policy as a rider. If this rider is purchased, the
policy will generally pay double the face amount if the insured
dies due to an accident. This used to be commonly referred to as
double indemnity coverage. In some cases, some companies may
even offer a triple indemnity cover.
Endowments:-
Endowments are policies in which the cash value built up
inside the policy, equals the death benefit (face amount) at a
certain age. The age this commences is known as the endowment
age. Endowments are considerably more expensive (in terms of
annual premiums) than either whole life or universal life because
the premium paying period is shortened and the endowment date
is earlier.
Endowment Insurance is paid out whether the insured lives
or dies, after a specific period (e.g. 15 years) or a specific age
(e.g. 65).
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LIFE INSURANCE CORPORATION OF INDIA
The first two decades of the twentieth century saw lot of
growth in insurance business. From 44 companies with total
business-in-force as Rs.22.44 crore, it rose to 176 companies with
total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance
Act 1938 was the first legislation governing not only life
insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalizationof life insurance industry was made repeatedly in the past but it
gathered momentum in 1944 when a bill to amend the Life
Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization
was accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The
Parliament of India passed the Life Insurance Corporation Act on
the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to
the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable
cost.
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LIC had 5 zonal offices, 33 divisional offices and 212 branch
offices, apart from its corporate office in the year 1956. Since life
insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need wasfelt in the later years to expand the operations and place a
branch office at each district headquarter.
Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organisation
servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with
the performance of the corporation. It may be seen that from
about 200.00 crores of New Business in 1957 the corporation
crossed 1000.00 crores only in the year 1969-70, and it took
another 10 years for LIC to cross 2000.00 crores mark of new
business. But with re-organisation happening in the early
eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum
Assured on new policies.
Today LIC functions with 2048 fully computerized branch
offices, 100 divisional offices, 7 zonal offices and the corporate
office. LICs Wide Area Network covers 100 divisional offices and
connects all the branches through a Metro Area Network. LIC has
tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LICs ECS and ATM
premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres
have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other
cities.
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With a vision ofproviding easy access to its policyholders,
LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhereservicing and many other conveniences in the future.
MISSION:
"Explore and enhance the quality of life of people through
financial security by providing products and services of aspired
attributes with competitive returns, and by rendering resources
for economic development."
VISION
"A trans-nationally competitive financial conglomerate of
significance to societies and Pride of India.
OBJECTIVES OF LIC
Spread Life Insurance widely and in particular to the rural
areas and to the socially and economically backward
classes with a view to reaching all insurable persons in the
country and providing them adequate financial cover
against death at a reasonable cost.
Maximize mobilization of people's savings by making
insurance-linked savings adequately attractive. Bear in mind, in the investment of funds, the primary
obligation to its policyholders, whose money it holds in
trust, without losing sight of the interest of the community
as a whole; the funds to be deployed to the best advantage
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of the investors as well as the community as a whole,
keeping in view national priorities and obligations of
attractive return.
Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
Act as trustees of the insured public in their individual and
collective capacities.
Meet the various life insurance needs of the community that
would arise in the changing social and economic
environment.
Involve all people working in the Corporation to the best of
their capability in furthering the interests of the insured
public by providing efficient service with courtesy.
Promote amongst all agents and employees of the
Corporation a sense of participation, pride and job
satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
VARIOUS POLICIES /SCHEMES OF LIC FOR LIFE INSURANCE
1. Children Plans
Life insurance buying is approached in the proper manner it
can be very beneficial to an individual and his/her family.
Four children policies are given below: Jeevan Anurag
Komal Jeevan
Jeevan Kishore
Jeevan Chhaya
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2. Endowment Plans
Endowment Policy
Endowment Policy 1
Jeevan Mitra (Double) Jeevan Mitra (Triple)
Jeevan Anand
New Janaraksha Plan
3. Money Back Plans
Money Back 20 Years
Money Back 25 Years
Jeevan Surabhi 1
Jeevan Surabhi 2
Jeevan Surabhi 3
Jeevan Rekha
Bima Bachat
Whole life insurance covers the policyholder for his or her
whole life. There is no fixed end date for the policy, as there is
with term life insurance. When the policy holder dies, the face
value of the policy, known as a death benefit, is paid to the
person or persons named in the life insurance policy (the
beneficiary or beneficiaries).
4. Life Plans
Whole Life Policy
Whole Life Policy 1 Whole Life Policy 2
Jeevan Rekha
Jeevan Anand
Loans
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Many of LIC plans are of endowment type and a person
would be allowed to raise a loan against their policy should
require funds. A person repays the loan with interest or continues
paying the interest and allows the loan to be deducted at thetime of the claim payments.
Further loans on policies are also allowed after deduction of
earlier out standings most financial institutions too allow loans
against LIC policies based on the value LIC quotes on request
from them.
Policy Loans
The Corporation can grant a loan to the policyholder against
his policy as per the terms and conditions applicable to the
policy. The requirements for granting a loan are as under:
a) Application for loan with an endorsement of terms and
conditions of the loan being placed on the policy.
b) Policy to be assigned absolutely in favour of the
Corporation
c) A receipt for the loan amount.
The maximum loan amount available under the policy is
90% of the Surrender Value of the policy (85% in case of paid up
policies) including cash value of bonus. The rate of interest
charged on loans is at 10-1/2% to be paid half-yearly.
COMPETITORS OF LIC
ICICI Prudential Life Insurance Company
HDFC Standard Life Insurance Company
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BAJAJ ALLIANZ Life Insurance Company Limited
AVIVA Life Insurance CO. India Pvt. Ltd
SBI Life Insurance Company
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank - one of India's foremost financial
services companies-and prudential plc - a leading
international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 47.80 billion, with
ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
They began their operations in December 2000 after
receiving approval from Insurance Regulatory Development
Authority (IRDA). Now their nation-wide team comprises of 2099branches (inclusive of 1,116 micro-offices), over 276,000
advisors; and 18 banc assurance partners.
ICICI Prudential is the first life insurer in India to receive a
National Insurer Financial Strength rating of AAA from Fitch
ratings. For three years in a row, ICICI Prudential has been voted
as India's Most Trusted Private Life Insurer, by The Economic
Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As
they grow their distribution, product range and customer base,
they continue to tirelessly uphold their commitment to deliver
world-class financial solutions to customers all over India.
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The ICICI Prudential edge comes from their commitment to
their customers, in all that they do - be it product development,
distribution, the sales process or servicing. Here's a peek into
what makes them the leaders.
1. The products have been developed after a clear and
thorough understanding of customers' needs. It is this
research that helps them develop Education plans that offer
the ideal way to truly guarantee the child's education,
Retirement solutions that are a hedge against inflation and
yet promise a fixed income after a person retires, or Health
insurance that arms a person with the funds he/she might
need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally
important to ensure that their customers can access them
easily and quickly. To this end, ICICI Prudential has an
advisor base across the length and breadth of the country,
and also partners with leading banks, corporate agents and
brokers to distribute their products.
3. Robust risk management and underwriting practices form
the core of their business. With clear guidelines in place,
ICICI ensures equitable costing of risks, and thereby ensure
a smooth and hassle-free claims process.
4. Entrusted with helping their customers meet their long-term
goals, ICICI Prudential adopts an investment philosophy that
aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, their team is given the
opportunity to learn and grow, every day in a multitude of
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ways. They believe this keeps them engaged and
enthusiastic, so that they can deliver on their promise to
cover their customer, at every step in life.
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Vision
To be the dominant Life, Health and Pensions player built on
trust by world-class people and service. ICICI Prudential hopes to
achieve their vision by: Understanding the needs of customers and offering them
superior products and service.
Leveraging technology to service customers quickly,
efficiently and conveniently.
Developing and implementing superior risk management
and investment strategies to offer sustainable and stable
returns to their policyholders.
Providing an enabling environment to foster growth and
learning for their employees.
And above all, building transparency in all their dealings.
The success of the company will be founded in its
unflinching commitment to 5 core values
Integrity
Customer First
Boundary less
Ownership
Passion. Each of the values describes what the company
stands for, the qualities of their people and the way they
work.
ICICI Prudential believes that they are on the threshold of an
exciting new opportunity, where they can play a significant role in
redefining and reshaping the sector. Given the quality of their
parentage and the commitment of their team, there are no limits
to their growth.
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HDFC Standard Life Insurance Company
Established on 14th August 2000, HDFC Standard Life
Insurance Co. Ltd. is a joint venture between Housing
Development Finance Corporation Limited (HDFC Limited) -
India's leading housing finance institution, and a Group Company
of the Standard Life Plc, UK. . It has international offices in Dubai,
London and Singapore with service associates in Saudi Arabia,
Qatar, Kuwait and Oman. As of December 2008, the total asset
size has crossed more than Rs. 95,000 crores including the
mortgage loan assets of more than Rs. 82,800 crores. The
corporation has a deposit base of Rs. 17,551 crores, earning the
trust of more than 9,00,000 depositors.
The Company is one of leading private insurance
companies, offering a range of individual and group insurance
solutions, in India. Being a joint venture of top financial services
groups, HDFC Standard Life has adequate financial expertise to
manage long-term investments safely and resourcefully.
HDFC Standard Life Insurance offers a range of individual
and group solutions, which can be easily personalized to specific
needs. Its group solutions have been planned to offer complete
flexibility, together with a low charging structure.
HDFC Limited, Indias premier housing finance institution
has assisted more than 3.3 million families own a home, since its
inception in 1977 across 2400 cities and towns through its
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network of over 250 offices Customer Service and satisfaction
has been the mainstay of the organization. HDFC has set
benchmarks for the Indian housing finance industry. Recognition
for the service to the sector has come from several national andinternational entities including the World Bank that has lauded
HDFC as a model housing finance company for the developing
countries. HDFC has undertaken a lot of consultancies abroad
assisting different countries including Egypt, Maldives, and
Bangladesh in the setting up of housing finance companies.
Vision
The most successful and admired life insurance company,
which means that we are the most trusted company, the easiest
to deal with, offer the best value for money, and set the
standards in the industry.
Values
Integrity
Innovation
Customer centric
People Care One for all and all for one
Team work
Joy and Simplicity
HDFC Standard Life Insurance Company Ltd.
Given below is a comprehensive list of policies and products
on offer by HDFC Standard Life Insurance:
1. Children's Plans
HDFC Children's Plan
HDFC Unit Linked Young Star II
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HDFC Unit Linked Young Star Plus II
HDFC Unit Linked YoungStar Champion
2. Retirement Plans
HDFC Personal Pension Plan HDFC Unit Linked Pension II
HDFC Unit Linked Pension Maximiser II
HDFC Immediate Annuity
3. Savings & Investment Plans
HDFC Unit Linked Endowment Plus II
HDFC SimpliLife
HDFC Unit Linked Endowment II
HDFC Unit Linked Endowment Winner
HDFC Endowment Assurance Plan
HDFC Money Back Plan
HDFC Assurance Plan
HDFC Savings Assurance Plan
4. Health Plans
HDFC Critical Care Plan
HDFC SurgiCare Plan
5. Protection Plans
HDFC Term Assurance Plan
HDFC Loan Cover Term Assurance Plan
HDFC Home Loan Protection Plan
6. Group Plans
Group Term Insurance Plan
Group Variable Term Insurance Plan
Group Unit Linked Plan - Gratuity
Group Unit Linked Plan - Leave Encashment
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AVIVA LIFE INSURANCE CO. INDIA PVT. LTD.
Aviva Life Insurance Company India Ltd. is a private
insurance company, formed by a joint venture between the Aviva
insurance group of UK and the Dabur group of India. In reference
to the government regulations, Aviva holds 26 percent stake and
the Dabur group holds the balance 74 percent share in the joint
venture. Not only largest in the UK, Aviva is also known as the
fifth largest insurance group in the world. Since 1834, Aviva is
ensuring the lives of Indians. At the time of nationalization, Aviva
was the largest foreign insurer in India in terms of thecompensation paid by the Government of India.
Aviva is distinguished for being the first foreign insurance
company to set up its representative office in India, in 1995.
Aviva Life Insurance Company established the concept of
Bancassurance in India, and has leveraged its global expertise in
Bancassurance successfully here. The company boasts of 223
branches in India, supporting its vast distribution network. Aviva
offers various products that are meant to provide customers
flexibility, transparency and value for money. Given here is a
complete list of products & services offered by Aviva Life
Insurance Company India Ltd.
VARIOUS POLOCIES BY AVIVA
1. Whole Life Plans
LifeLong
Aviva Lifeline
2. Pure Term Plans
LifeShield
Aviva LifeShield Plus
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3. Endowment Plans
LifeSaver
SaveGuard
LifeSaver Plus Freedom LifePlan
Aviva DhanVriddhi
Anmol Suraksha
Aviva Money Back
Aviva EasyLife Plus
Aviva Wealth Plus
4. Pension Plans
PensionPlus
Secure Pension
Aviva Pension Elite
5. Child Plans
Aviva LittleMaster
Aviva Young Scholar
6. Health Plans
Aviva Health Plus
7. Group Plans
CreditPlus
LoanSuraksha
CorporateLifeGroupShield
8. Rural Plans
Amar Suraksha
Jana Suraksha
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
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Bajaj Allianz Life Insurance Co. Ltd. is a joint venture
between Allianz SE, one of the world's largest insurance
companies, and Bajaj Finserv. Allianz SE is a leading insurancecorporation globally and one of the largest asset managers in the
world, that manage assets worth over a Trillion. With over 115
years of financial experience, Allianz SE is present in over 70
countries around the world. Bajaj Allianz is into both life insurance
and general insurance. Today, Bajaj Allianz is one of India's
leading and fastest growing insurance companies. Currently, it
has presence in more than 550 locations with over 60,000
Insurance Consultants.
In June 2008, Bajaj Allianz entered into partnership with
Thomas Cook India to provide travel finance. Bajaj Allianz Life
Insurance ensures excellent insurance and investment solutions
by offering customized products, supported by the best
technology. A comprehensive list of policies and products offered
by Bajaj Allianz Life Insurance Co. Ltd. is as follows:
1. UNIT LINKED PLANS
Regular Premium
New UnitGain Super
UnitGain Plus Gold
New UnitGain Plus
New UnitGain
YoungCare
YoungCare Plus
New FamilyGain-R
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Single Premium
New UnitGain Premier SP
New UnitGain Plus SP
2. PENSION PLANSAnnuity
Pension Guarantee
Retirement
Future Income Generator
Swarna Vishranti
New UnitGain Easy Pension Plus RP
New UnitGain Easy Pension Plus SP
Future Secure
3. TRADITIONAL PLANS
Endowment
InvestGain
SaveCare Economy SP
Life Time Care
Super Saver
Money Back
CashGain
4. Term Plans
Protector
Term Care
New Risk Care
5. Women Insurance Plans
House Wives
Working Women
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6. Health Plans
Care First
Health Care
Family CareFirst7. Children Plans
ChildGain
8. Group Plans
Non Employer Employee
Credit Shield
Group Term Life(Non Employer Employee)
Group Suraksha
Swayam Shakti Suraksha
Group Loan Protector
Group Income Protection
Employer Employee
Group Term Life(Employer Employee)
New Group Gratuity Care
New Group Superannuation Care
Group Save Plus
Group Term Life in lieu of EDLI
Group Leave Encashment Scheme
Group Annuity
Group Gratuity Gold
Other Plans
Family Assure
Fortune Plus
Capital Shield
CenturyPlus II
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SBI LIFE INSURANCE COMPANY
SBI Life Insurance is a joint venture between the State Bank
of India and BNP Paribas Assurance. SBI Life Insurance is
registered with an authorized capital of Rs 2000 crores. SBI owns
74% of the total capital and BNP Paribas Assurance the remaining
26%.
State Bank of India enjoys the largest banking franchise inIndia. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,500 branches across the country,
arguably the largest in the world.
BNP Paribas Assurance is the insurance arm of BNP Paribas -
Euro Zones leading Bank. BNP Paribas, part of the worlds top 10
group of banks by market value and part of Europe top 3 banking
companies, is one of the oldest foreign banks with a presence in
India dating back to 1860. BNP Paribas Assurance is the forth
largest life insurance company in France, and a worldwide leader
in Creditor insurance products offering protection to over 50
million clients. BNP Paribas Assurance operates in 41 countries
mainly through the bancassurance and partnership model.
SBI Life Insurancesmission is to emerge as the leading
company offering a comprehensive range of Life Insurance and
pension products at competitive prices, ensuring high standards
of customer service and world class operating efficiency. SBI Life
has a unique multi-distribution model encompassing Banc
assurance, Agency and Group Corporate.
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SBI Life extensively leverages the SBI Group as a platform
for cross-selling insurance products along with its numerous
banking product packages such as housing loans and personal
loans. SBIs access to over 100 million accounts across thecountry provides a vibrant base for insurance penetration across
every region and economic strata in the country ensuring true
financial inclusion.
Agency Channel, comprising of the most productive force of
more than 63,000 Insurance Advisors, offers door to door
insurance solutions to customers.
Mission:
"To emerge as the leading company offering a
comprehensive range of life insurance and pension products at
competitive prices, ensuring high standards of customer
satisfaction and world class operating efficiency, and become a
model life insurance company in India in the post liberalization
period".
Values :
Trustworthiness
Ambition
Innovation
Dynamism
Excellence
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CHAPTER 2
RESEARCHMETHODOLOGY
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RESEARCH METHODOLOGY
Research is common refers to a research for knowledge.
One can also define research as a scientific & systematic searchfor pertinent information on scientific topic. In fact it is an art of
scientific investigation. Research is not only concerned to revision
of the facts for building up to data knowledge but also discovers
the new facts evolved through the process of dynamic change in
the society.
Research is the manipulation of the things, concept or
symbol for the purpose of generating to extend, correct or verify
knowledge whether that knowledge adds in the construction of
theory or in practice an art.
This section defines the research methodology, which has
been adopted for the purpose of study. It shows the type of
samples, size and procedure used for handling special problems
during the course of study; it includes the description of the
research design, data, collection, research instruments and
sampling.
SOURCE OF DATA:
Data obtained only from primary source. A primary source
itself collects the data. Data collected through the questionnaire.
RESEARCH INSTRUMENTS
Questionnaire has been used to collect the data from the
respondents.
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This is far the first common instrument in collecting the
primary data, which has been used for fulfilling our objectives for
obtaining further information.
SIZE OF SAMPLE
The overall sample involved in the study consisted of 50
individuals. Keeping in view the limited sources of time, a limited
sample of individuals from the local area of city of Ludhiana was
picked up.
COLLECTION OF DATA:
The data was collected with the help of questionnaire that
was administrated on 50 individuals from the local areas of the
city of Ludhiana.
LIMITATIONS
Due to time and resource constraints, the study was
conducted within the city of Ludhiana; therefore the survey
might not present a true picture of the respondents
opinions.
The respondents bias must have crept in while filling the
questionnaire.
A sample size of 100 respondents might not be
representative of the universe.
Questionnaire preparation is prone to researchers basis as
well.
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OBJECTIVES OF THE STUDY
Comparative analysis of LIC & private insurance companies.
To study the need and benefits involved in taking Life
Insurance.
Investigation of factors influencing upon choice of particular
sector for insurance investment.
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CHAPTER 4
DATA ANALYSISAND
INTERPRETATION
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DATA ANALYSIS AND INTERPRETATION
Table 1 : Are you aware of the Life insurance Policies
Particulars No. ofrespondents % age ofrespondents
Yes 94 94%No 6 6%
94%
6%
Yes No
INTERPRETATION
It is clear from above table & pie chart that 94% people
have the awareness of life insurance policies and 4% people have
no information of life insurance policies.
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Table 2. Do you have a life insurance policy/investmentplan in your name?
Particulars No. of
respondents
% age of
respondents
Yes 86 86%No 14 14%
86%
14%
Yes No
INTERPRETATION
From the analysis it is clear that 86% people have the
investment plan in insurance policies. While 14% people dont
have any plans.
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Table 3. Which sector do you prefer?
Particulars No. of
respondents
% age of
respondents
Public Sector 48 48%Private Players 52 52%
48%52%
Yes No
INTERPRETATION
48% people prefer public sector public sector 52% people would
like to go towards private sector.
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Table 4: Which Brand provides you Maximum returns?
Particulars No. ofrespondents
% age ofrespondents
LIC 44 44%ICICI 28 28%HDFC 12 12%Aviva 4 4%Others 12 12%
44%
28%
12%
4%
12%
LIC ICICI HDFC Aviva Others
INTERPRETATION
From the pie chart we conclude that LIC provide the
maximum return, 44% people agree to it, 28% agree with ICICI.
AVIVA, HDFC and other banks also provide better return.
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Table 5: Which Brand provides you various schemes for
Insurance?
Particulars No. of
respondents
% age of
respondentsLIC 48 48%ICICI 18 18%HDFC 10 10%Aviva 8 8%Others 8 8%Bajaj Allianz 8 8%
48%
18%
10%
8%
8%
8%
LIC ICICI HDFC Aviva Others Bajaj Allianz
INTERPRETATION
From the analysis, we conclude that LIC provide various
scheme of insurance then other banks 48% people agree to it.
18% people believe in ICICI. Whereas 10% vote for HDFC and 8%
think AVIVA as a good bank. 8% considers BAJAJ Allianz as a
better bank. 8% prefer other banks.
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Table 6: What is the main problem faced by employees in
selling the policy ?
Particulars No. of
respondents
% age of
respondentsInadequate Information 36 36%Less Commission 32 32%Late Redemption 22 22%Mistake in Punching 10 10%
36%
32%
22%
10%
Inadequate Information Less Commission
Late Redemption Mistake in Punching
INTERPRETATION
From the study we found that 36% people believe that in
adequate information is main reason for selling the policy. Less
commission is consider a reason by 32%. 22% consider late
redemption as a problem and 10% consider mistake in punching
as reason.
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Table 7: What is the approximate premium paid by you
annually (in Rupees)?
INTERPRETATION
This has been found by calculating the average value using
arithmetic mean.
An Average is a figure that represents the whole group. It is
a statistical measure representing a group of individual values in
simple and comprehensive manner.
Findings & Analysis: - About Rs. 23100 is the mean premiums
that from the group of 50 respondents pay annually from their
income for the Life Insurance Policy.
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Table 9: How much would you be willing to spend per
annum if you were to go for an insurance plan?
INTERPRETATION
This has been found by calculating the average value using
arithmetic mean.
Findings & Analysis: - About Rs 31410 is the mean premium
that from the group of 50 respondents is willing to pay annually
from their income for the Life Insurance Policy.
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Table 10. What is the opinion on the Insurance policy
provided by LIC?
Particulars No. ofrespondent
s
% age ofrespondent
sGood 46 46%Excellent 28 28%Average 22 22%Poor 4 4%
46%
28%
22%
4%
Good Excellent
Average Poor
INTERPRETATION
46% considers insurance policy by LIC as good, 28%
consider it excellent, 22% consider it average, 4% consider it
poor.
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Table 11. How you know about the Schemes?
Particulars No. of
respondent
s
% age of
respondent
sAdvisors of Company 48 48%Management Trainees 16 16%Advertisements 30 30%Others 6 6%
48%
16%
30%
6%
Advisors of Company Management Trainees
Advertisements Others
INTERPRETATION
48% believe that advisors of company provide information
about schemes, 30% considers advertisement as a good source
of information of schemes, 16% considers management trainees
as a good medium. 6% considers other sources as source of
information of schemes.
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Table 12. What are the factors you consider while
choosing your Insurance plans?
Particulars No. of
respondents
% age of
respondents
Profit 28 28%Liquidity 14 14%Safety 42 42%
Tax benefits 6 6%
28%
14%
42%
6%
Profit Liquidity Safety Tax benefits
INTERPRETATION
28% considers profit as a main factor while choosing
insurance plans, 42% give value to safety while selectinginsurance plan, liquidity is considered by 14% and 6% considers
tax benefits as a main factor.
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CHAPTER 5
FINDINGSAND
CONCLUSIONS
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FINDINGS AND CONCLUSIONS
94% people have the awareness of life insurance policies
and 4% people have no information of life insurance
policies.
86% people have the investment plan in insurance policies.
While 14% people dont have any plans.
48% people prefer public sector public sector 52% people
would like to go towards private sector.
From the study we conclude that LIC provide the maximum
return, 44% people agree to it, 28% agree with ICICI. AVIVA,
HDFC and other banks also provide better return.
From the analysis, we conclude that LIC provide various
scheme of insurance then other banks 48% people agree to
it. 18% people believe in ICICI. Whereas 10% vote for HDFC
and 8% think AVIVA as a good bank. 8% considers BAJAJ
Allianz as a better bank. 8% prefer other banks.
We found that 36% people believe that in adequate
information is main reason for selling the policy. Less
commission is consider a reason by 32%. 22% consider late
redemption as a problem and 10% consider mistake in
punching as reason.
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46% considers insurance policy by LIC as good, 28%
consider it excellent, 22% consider it average, 4% consider
it poor.
48% believe that advisors of company provide information
about schemes, 30% considers advertisement as a good
source of information of schemes, 16% considers
management trainees as a good medium. 6% considers
other sources as source of information of schemes.
28% considers profit as a main factor while choosing
insurance plans, 42% give value to safety while selecting
insurance plan, liquidity is considered by 14% and 6%
considers tax benefits as a main factor.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Research Methodology Kothari C.R.2007, Research
Methodology, Techniques and Methods, New Delhi, 2007
www.licindia.com
www.sbilife.co.in
www.hdfcinsurance.com
www.iciciprulife.com
www.irda.org
www.bajajallianz.com
www.aviva.com
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http://www.licindia.com/http://www.sbilife.co.in/http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.irda.org/http://www.bajajallianz.com/http://www.aviva.com/http://www.licindia.com/http://www.sbilife.co.in/http://www.hdfcinsurance.com/http://www.iciciprulife.com/http://www.irda.org/http://www.bajajallianz.com/http://www.aviva.com/ -
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ANNEXURE
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QUESTIONNAIRE
.
Name : _________________________________ Age : ________ Gender :
_______
Occupation : _________________________________ Income :
________________
1. Are you aware of the Life insurance Policies
a) Yes b) No
2. Do you have a life insurance policy/investment plan in
your name?a) Yes b) No
3. Which sector do you prefer?
a) Public Sector b) Private Players
4. Which Brand provides you Maximum returns?
a) LIC b) ICICI
c) HDFC d) Aviva
e) Others
5. Which Brand provides you various schemes for Insurance?
a) LIC b) ICICI
c) HDFC d) Aviva
e) Others f) Bajaj Allianz
6. What is the main problem faced by employees in selling
the policy ?
a) Inadequate Information
b) Less Commission
c) Late Redemption
d) Mistake in Punching
7. What is the approximate premium paid by you annually
(in Rupees)?
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a) Rs. 5,000 Rs. 10,000
b) Rs. 10,001 Rs. 15,000
c) Rs. 15,001 Rs. 25,000
d) Rs. 25,001 Rs. 50,000
e) Rs. 50,001 Rs. 60,000
f) Rs. 80,001 Rs. 1,00,000
8. What kind of insurance policy would suit you best in your
current stage of life?
a) Life Insurance
b) Life Insurance and Investment Plans
c) Pension Plans
d) Child Plans
e) Tax saving plans
9. How much would you be willing to spend per annum if
you were to go for an insurance plan?
a) Less than Rs. 6,000
b) Rs. 6,001 Rs. 10,000
c) Rs. 10,001 Rs. 25,000
d) Rs. 25,001 Rs. 50,000 e) Rs. 50,000 Rs. 1,00,000
f) More than Rs. 1,00,000
10. How will you find the concept of life insurance?
a) Very Good b) New Concept
c) Similar to Others d) Will not work
11. What is the opinion on the Insurance policy provided by
LIC
a) Good b) Excellent
c) Average d) Poor
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12. How you know about the Schemes?
a) Advisors of Company
b) Management Trainees
c) Advertisements
d) Others
13. What are the factors you consider while choosing your
Insurance plans?
a) Profits b) Liquidity
c) Safety d) Tax Benefits