The uploaded summer internship project report which is titled for The study of life Insurance products being offered by the global market in insurance of IDBI Federal Life Insurance Corporation. The above summer internship project report is made by Mr. Ankit Mohan Lal for M.B.A. 3rd sem in the College of management of Studies, mc - Robertganj, kanpur UP. Through this report I got 141 marks out of 150 marks and examiner say to me that the data collection is current and report is up to date and he pray to god for best blesing to me in future. I have own business which is titled for the real-Estate and company's titled is GREEN PARIVAR AGRO AND BIO-TECH (P) Ltd. Website:-www.greenparivar.com E-mail:- [email protected]
Text of The study of life Insurance products being offered by the global market in insurance cms college,...
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 1 The study of life Insurance products being offered by the global market in insurance (A summer training project report submitted in partial fulfillment of the requirement of Master of Business Administration) (Session 2012-2014) Under the guidance of: Submitted By: Mr. UPENDRA SINGH ANKIT MOHAN LAL (MANAGER DISTRIBUTION) MBA 3rd Sem. GBTU IDBI FEDERAL LIFE INSURANCE Roll No.-:1205070008 Co. LTD. COLLEGE OF MANAGEMENT STUDIES Mc Robertganj, Kanpur, 208001 (Affiliated to Gautam Budhdha Technical University, Lucknow) Formerly known as Uttar Pradesh technical University
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 2 CONTENTS S.N. Topic Page Declaration i College Certificate ii Company Certificate iii Acknowledgement iv Preface v PART A 1. Introduction of Insurance 2. Introduction of life Insurance Business History of Insurance Scope of Insurance business in India 3. The Decision Process 4. Market Segmentation Resistance to Insurance Managing Information 5. Introduction of IRDA 6. Overview of IDBI Federal Life Insurance 7. Product of IDBI Federal Life Insurance
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 3 PART B 8. Objective of Research Plan 9. Methodology used in Study 10. Life Insurance Product 11. Questionnaire Designing 12. SWOT Analysis 13. Suggestion and Recommendation 14. Limitation 15. Conclusion 16. Bibliography 17. Annexure Questionnaire
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 4 DECLARATION I, ANKIT MOHAN LAL, Student of College of Management Studies, Mc Robertganj, Kanpur of 3rd Semester, hereby declare that the research project report having the title The study of Life Insurance Products being offered by the Global Market in Insurance is the outcome of my own work and effort and the same has not been submitted by any university/College/Institution for Professional degree. Date: 17/Jan./14 ANKIT MOHAN LAL Place: Kanpur 3rd Sem. CMS KANPUR Roll No. 1205070008
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 5 Acknowledgement Doing a project work of this nature is an arduous task in itself was fortunate enough to get support from a large no. of person to whom I shall always remain grateful. My humble thanks are due to all my professor notable Dr. M. A. Naqvi (Director) for teaching me practical, paramagnetic and possible approach. I would also like to thank the ex. Customer of IDBI Federal Life Insurance Co. Ltd. Based in Kanpur are who provided me all the relevant information on the basis of which report has been prepared. Lastly I would like to pay my special regards to all member of IDBI Federal Life Insurance Co. Ltd. Forming for their encouragement and full support for completing this project work. Ankit Mohan Lal (M.B.A.3rd Sem.) College of Management Studies (Mc-Robertganj Kanpur)
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 6 PREFACE Life insurance business is booming in India. The business of life insurance is related to the protection of the economic value of human life and this project is just offered to draw the attention of individuals, who are interested in life insurance business running by insurance regulatory Development Authority (IRDA). Insurance industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakh, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers. This project likes just an extract of my rigorous work in Life Insurance Companies, and I hope the beneficiaries decision regarding recruitment of advice; or, all information and data. This responsibility really in hence my effective communication and convincing power and such quality will help me in near future for having decision making.
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 7 PART - A
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 8 Introduction of Insurance Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specified event. As the first step in helping you to gain the knowledge you need to become a professional and successful life insurance agent, we are going to first take an overview of life insurance what it is and why it is needed. In seeing how life insurance works we will need to make reference to the insurance market as a whole insurance is available for many other things, not just for human life but our focus will remain firmly on the life insurance part of it. How does insurance work We can move on to understanding how insurance works exactly. Case study:- Ajay is 35 years old and works for a multinational corporation (MNC). He has a 10 year old son, Vijay, whom he dreams will one day become a doctor. Ajays spouse is a housewife, and his parents are retired and depend on him. Ajay has a home loan and is making monthly investments for Vijays higher studies and marriage and his own retirement. Ajay wants to ensure that Vijay gets the best of everything and that he himself is not depend on Vijay during his retirement in the way that Ajays parents are on him. So far everything is going well with Ajays plans. But imagine what will happen in the following scenario. One day while returning home from the office Ajay has an accident and dies. What will happen? Who will take care of the family, Vijays education and marriage, the home loan etc? What are options available to Ajay so that his family can be taken care of in his absence? Life insurance provides protection to a family on the untimely death of income provider. If Ajay has adequate life insurance cover, then should he die, the money received from the life insurance company can help to support his family. The
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 9 insurance money will help to take care of the familys living expenses, Vijays education and marriage, and the cost of the home loan etc. Let us continue with our case study of Ajay. The risk of premature death described above is only one of the risks that Ajay faces. He faces any other risks that he will need medical care at some point, that his home may burn down, for instance. Ajay can handle these risks in different ways. Risk retention: One, not very wise way, of handling these risks is to retain them, i.e. for Ajay to bear the risk that he will have to provide these situations himself, and so do nothing about them. While times are good and none of these events happen, Ajay need not be worried. But the moment any one of them does happen, Ajay will be in trouble. So it is definitely not wise for Ajay retain, or handle, these risks himself. Risk transfer: the other way of handling these risks is to transfer them to someone who can handle them properly. In simple words, the process of transferring risks from one person who does not have the capacity to bear them to someone who does have the capacity for them, is known as insurance. At this point, it may be useful to return to our definition of insurance: Insurance is a contract between the insurance company (insurer) and the policyholder (insured). In return for a consideration (the premium), the insurance company promises to pay a specified amount to the insured on the happening of a specified event. So, from the above explanation we can see that insurance is: The process of transferring the risk from the owner (insured person); To another party (insurer) who can bear that risk; In for a consideration (premium). Role of financial services and insurance: we can see from all of this that a well developed and evolved insurance sector benefits economic development and at the same time strengthens the risk taking ability of the country. Insurance has a role o play at the individual level too. Some of the benefits for the policyholder are shown below:
IDBI federal Life Insurance Co. Ltd. 2013 Ankit Mohan Lal Page 10 Investment option Insurance products are an excellent investment option where the policyholder not only gets the advantage of insurance cover, but also a return on their investments based on their risk appetite. Protection of financial security Insurance companies provide compensation in case something happens to the assets or the individual insured, as per the terms and conditions of the policy. Life insurance protects the family against the loss of the income provider, helping to provide for the familys needs and the childrens education and marriage. Hence the effect of loss is considerably reduced for and individual. Tax benefits Insurance offers considerable tax benefits under the income tax act 1961. Premium paid up to Rs. 1,00,000 qualifies for education from taxable income under section 80C of the Act, subject to certain terms and conditions. The death benefit or the maturity benefit received by the nominee or the policyholder is tax free under section 10 (10D) of the Act, as per prevailing laws, before premium paid up to Rs. 1,00,000. Planning for life stage needs Today the insurance products that are being off
