Delhi State Cooperative Bank

8/10/2019 Delhi State Cooperative Bank

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A PROJECT

ON

STUDY OF LIFE

INSURANCE NEEDS AND HABITS AMONG PEOPLE

AND DIRECT SELLING OF THE INSURANCE

POLICIES


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TABLE OF CONTENT

Chapter 1: Objective of the study - Abstract

Chapter 2: esearch !ethodo"o#y

Chapter $: Co%pa&y 'rofi"e

Chapter (: )&sura&ce

Chapter *: A&a"ysis a&d )&terpretatio&

'roduct +&o,"ed#e .ypothesis Testi

Chapter /: Co&c"usio& a&d Li%itatio&

Chapter 0: u##estio&

Chapter : Bib"io#raphy

Chapter 3: A&&e4ure

5uestio&&aire


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ABSTRACT

The project is tit"ed as 6tudy of Life i&sura&ce &eeds a&d habits a%o peop"ea&d direct se""i of "ife i&sura&ce po"icies78 The project ,i"" focus o& tudy of the

co&su%er behavior ,hi"e #oi for the "ife i&sura&ce po"icies8 )t ,i"" trace the history a&d

#ro,th of i&sura&ce i&dustry a&d fi&a&cia" %ar9ets8 The project ,i"" acco%p"ish the tas9

of ide&tifyi a&d educati o& the various i&sura&ce i&stru%e&ts avai"ab"e i& the

%ar9ets8 )t ,i"" a"so "ay e%phasis the direct se""i a&d %ar9eti of the CB L)fe

)&sura&ce"ife;s i&sura&ce po"icies8 )t ,i"" spread the a,are&ess about the various products

ofLIFE INSURANCE COMPANY i& the %ar9et a&d ,i"" e&ha&ce our %ar9eti s9i""8 )t

,i"" #ive a &e, a&d practica" idea to,ards the %ar9et a&d ,i"" he"pfu" for us because ,e

have ta9e& %ar9eti a&d fi&a&ce as a ua"-specia"i a&d "oss of i&co%e due to disabi"ity or death8

8

The L)FE )N?ANCE8 is o&e of the 9ey %ar9et p"ayers i& @aipur a&d

ehradu&= havi a stro i&vestor base a&d the %ar9et operatio&8 o the fi&di of the

project ,ou"d he"p i& the u&dersta&di the &eed a&d e4pectatio& of custo%er better8 The

i&sura&ce objective ris9= retur& e4pectatio& a&d future e4pectatio& ,i"" be cover8

The perfor%a&ce of the i&sura&ce i&dustry as co%pare to the deve"opi ,or"d is

&ot up to the %ar98 o the ,i"" a"so e4press the 9ey issue i& the i&dustry is faci Acti

as co%pa&y resources ,e ,i"" be active"y i&vo"ved i& se""i the i&sura&ce cu%

i&vest%e&t products of the co%pa&y= besides co""ecti data fro% the %ass as their

thou#hts a&d prefere&ces ,hi"e #oi for "ife i&sura&ce po"icies8

The process be#a& ,ith a trai&i ,hich ,as i%parted to us by our sa"es

%a&a#er for 1 %o&th i& @aipur= i& ,hich ,e studied the various products of the co%pa&y

a&d the co%petitive adva&ta#e a&d disadva&ta#e of the co%petitors a&d a"so the


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%ar9eti tech&iues i&vo"ved i& co&vi&ci the custo%ers to #o for e"ia&ce;s

)&vest%e&t p"a&s8

)& the "ater part of the i&ter&ship the tea% ,as %i#rated to their ho%eto,&s ,here

it cou"d #e&erate %uch %ore busi&ess tha& @aipur= because it bei their &atura" %ar9et8

o acti upo& the #uida&ce of %y Co%pa&y #uide= ) %oved to %y ho%eto,& ehradu&

to #e&erate busi&ess8


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INTRODUCTION

!ai& objective of this project ,i"" be co""ecti data a&d be"iefs of the peop"e a&d

studyi their co&su%er behavior ,hi"e #oi for the i&sura&ce po"icies= a"so studyi

the i&vest%e&t products of other Life i&sura&ce co%pa&ies a&d co%petitors8 After

a&a"y


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Winds o !"#n$%

The Life )&sura&ce Corporatio& of )&dia L)C has bee& depe&de&t o& its distributio&

cha&&e" of over = = a#e&ts8 But the corporatio&s rete&tio& rates have bee& "o,=

%ai&"y because of poor ua"ity a#e&ts8 Dhi"e it re%ai&s obvious that a#e&ts ,i"" co&ti&ue

to be the %ai&stay i& i&sura&ce distributio& for so%e ti%e i& )&dia= there is a"so stro

i&dicatio& that this sa"es %ode" is s"o,"y chai There are three basic reaso&s for this:

ustai&i hu#e sa"es force is a cost"y affair especia""y ,he& "o,-cost e"ectro&ic

distributio& cha&&e"s are avai"ab"e8

A"ter&ate de"ivery cha&&e"s are &ot burde&ed by the %o&etary a&d #eo#raphic

"i%itatio&s of %ai&tai&i a physica" prese&ce8

A"ter&ate cha&&e"s a"so he"p to cut bac9 costs a&d e&ha&ce custo%er service

thereby #ivi the co%pa&y a co%petitive ed#e8

ue to this= the private p"ayers ,hich %ere"y have a %ar9et share of $G i& a"" have a

co%petitive adva&ta#e i& %a9i their %ar9 i& the i&dustry8 A"so= a&other adva&ta#e of

the private p"ayers is that= they 9eep a&d hire o&"y those peop"e as a#e&ts ,ho% they

thi&9 ca& ,or9 a&d have the ,i"" i& the%8


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Limitations

There are various "i%itatio&s i& the co%p"etio& of the ,or9 do&e so far a&d they are as

fo""o,s:

'eop"e sti"" do &ot re"y o& these private i&sura&ce co%pa&ies8

'eop"e fee" that pre%iu% is very hi#h8

E4iste&ce of various co%petitors i& the i&sura&ce sector8

'eop"e sti"" prefer to buy po"icies for ta4 be&efits rather tha& i&sura&ce cover8

'eop"e &eed products that #ive hu#e retur&s8

The &eed of each i&dividua" differs fro% o&e a&other

Today;s #e&eratio& ,a&t products that are at par ,ith the products of deve"oped

cou&tries8

The ris9 a&d retur&s ca& vary as per the fi&a&cia" %ar9et co&ditio&s8

Advisors just se"" the products to co%p"ete their tar#ets rather eva"uati the &eed

of the custo%ers8

'eop"e are very re"ucta&t i& fi""i up uestio&&aires8

'eop"e re"ucta&t"y buy i&sura&ce po"icies i& Apri" a&d !ay8

The database ,i"" be asse%b"ed coveri s%a"" sa%p"e si


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Data collection methods and sources

?&der the ,or9 of this project= ) a% fo""o,i certai& %ethodo"o#ies usi pri%ary as

,e"" as seco&dary sources of data8

T"% &'i(#') '%s%#'!" *i++ in!+,d%-

Face to face i&teractio& ,ith the i&vestors

)&teractio& ,ith the facu"ty a&d co%pa&y #uide8

T"% s%!ond#') d#.# *o,+d in!+,d%-

ata fro% i&ter&a" records of L)fe )&sura&ce8

ata fro% )&ter&et sites of L)fe )&sura&ce a&d other p"ayers8

)&sura&ce a&a"yst fro% )CFA)8

ata fro% busi&ess ,ee9"ies8

Other tha& these data= ) a% usi certai& %ethods to tar#et the %ar9et8 ) had p"aced

s%a"" 9ios9s i& fro&t of hospita"s= schoo"s a&d hote"s8 ) have distributed the pa%ph"ets of

chi"dre& p"a&s ,ith %y pho&e &u%ber ,ritte& o& that to the chi"dre& of ju&ior sectio&s of

schoo"s a&d received ca""s upo& that fro% there pare&ts8


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MAIN TE/T

)&sura&ce is &ot &ecessari"y a& i&vest%e&t fro% ,hich o&e e4pects to #et o&es %o&ey

bac98 Nor is it #a%b"i A #a%b"er ta9es ris9s= ,hi"e i&sura&ce offers protectio& a#ai&st

ris9s that a"ready e4ist8 )&sura&ce is a ,ay to share ris9 ,ith others8 )&sura&ce has e4isted

for thousa&ds of years8 A for% of credit i&sura&ce ,as i&c"uded i& the Code of

.a%%urabi= a co""ectio& of Baby"o&ia& "a,s said to predate the La, of !oses8 To

fi&a&ce their tradi e4peditio&s i& a&cie&t ti%es= ship o,&ers obtai&ed "oa&s fro%

i&vestors8 )f a ship ,as "ost= the o,&ers ,ere &ot respo&sib"e for payi bac9 the "oa&s8

i&ce %a&y ships retur&ed safe"y= the i&terest paid by &u%erous ship o,&ers covered the

ris9 to the "e&ders8

The i&sura&ce i&dustry provides protectio& a#ai&st fi&a&cia" "osses resu"ti fro% a

variety of peri"s8 By purchasi i&sura&ce po"icies= i&dividua"s a&d busi&esses ca& receive

rei%burse%e&t for "osses due to car accide&ts= theft of property= a&d fire a&d stor%

da%a#e> %edica" e4pe&ses> a&d "oss of i&co%e due to disabi"ity or death8

) have bee& researchi co&ti&uous"y i& the %ar9et for i&sura&ce i&dustrya&d have co""ected fo""o,i data

[A] The investment in life insurance product has many roles to play some of these are

Role 1: Life insurance as "Investment"

)&sura&ce is a& attractive optio& for i&vest%e&t8 Dhi"e %ost peop"e reco#&i


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Role 2: Life insurance as "Ris cover"

First a&d fore%ost= i&sura&ce is about ris9 cover a&d protectio& - fi&a&cia" protectio&= to

be %ore precise - to he"p out"ast "ifes u&predictab"e "osses8 esi#&ed to safe#uard a#ai&st

"osses suffered o& accou&t of a&y u&foresee& eve&t= i&sura&ce provides you ,ith that

u&iue se&se of security that &o other for% of i&vest%e&t provides8 By buyi "ife

i&sura&ce= you buy peace of %i&d a&d are prepared to face a&y fi&a&cia" de%a&d that

,ou"d hit the fa%i"y i& case of a& u&ti%e"y de%ise8

Role !: Life insurance as "Ta plannin#"

eductio&s fro% #ross i&co%e o& Life )&sura&ce pre%iu% paid Traditio&a" H ?&it

Li&9ed '"a&s

?&der ec C of )&co%e Ta4 Act

Avai"ab"e for 're%iu% paid %a48 up to 2G of A o& Life )&sura&ce po"icies a&d as a

co&tributio& o& a pe&sio& p"a& ,ith a %a4i%u% cei"i p8a8 s81== irrespective of

the Iross Tota" )&co%e8

?&der ec of )&co%e Ta4 Act

're%iu% paid for Critica" )""&ess rider is deductib"e as %edica" i&sura&ce pre%iu% fro%

the a&&ua" i&co%e char#eab"e to ta4 up to a %a4i%u% a%ou&t of s81


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E0%(&.ion 'o( ."% Li% Ins,'#n!% &'o!%%ds

Und%' S%! 12312D4 o IT A!.

!aturity be&efits are ta4-free i& the ha&ds of the po"icyho"der if= at a&y poi&t

of ti%e duri the po"icy "ife= pre%iu%s paid ,ithi& o&e year do &ot e4ceed

2G of the basic u% Assured8

eath be&efits are ta4-free8

5B6 Indi#n Ins,'#n!% Ind,s.')

Dith such a "ar#e popu"atio& a&d the u&tapped %ar9et area of this popu"atio&=

)&sura&ce happe&s to be a very bi# opportu&ity i& )&dia8 Today it sta&ds as a busi&ess

#ro,i at the rate of 1*-2 per ce&t a&&ua""y8 To#ether ,ith ba&9i services= it adds

about 0 perce&t to the cou&try;s I' 8)& spite of a"" this #ro,th the statistics of the

pe&etratio& of the i&sura&ce i& the cou&try is very poor8 Near"y G of )&dia&

popu"atio&s are ,ithout Life i&sura&ce cover a&d the .ea"th i&sura&ce8 This is a&

i&dicator that #ro,th pote&tia" for the i&sura&ce sector is i%%e&se i& )&dia8 )t ,as due to

this i%%e&se #ro,th that the re#u"atio&s ,ere i&troduced i& the i&sura&ce sector a&d i&

co&ti&uatio& ."% $o7%'n(%n. in 1889 .o %0#(in% ."% 7#'io,s #s&%!.s o ."% ind,s.')

!ons.i.,.%d M#+"o.'# Co((i..%%8 The 9ey e"e%e&t of the refor% process ,as

'articipatio& of overseas i&sura&ce co%pa&ies ,ith 2/G capita" creati a %ore efficie&t

a&d co%petitive fi&a&cia" syste% suitab"e for the reuire%e&ts of the eco&o%y ,ith the

"i%it o& F) i& the i&sura&ce sector= the #over&%e&t e&sured that state ru& a#e&cies such

as the L)C a&d I)C ca& %ai&tai& their pro%i&e&ce8


12/61

i&ce the i&ceptio& the i&sura&ce i&dustry has #o&e throu#h %a&y sea chaes= ear"ier

there ,as o&"y L)C that provides "ife i&sura&ce i& )&dia but i& 1333= the )A ,as setup

u&der the )A Act8 Co%pa&ies= aspiri to carry o& i&sura&ce a&d rei&sura&ce busi&ess

i& )&dia= are reuired to re#ister ,ith )A= the so"e authority #ra&ti "ice&se to carry

out i&sura&ce busi&ess i& )&dia after the for%atio& of )A %a&y private p"ayer;s e&teredthe %ar9et of "ife i&sura&ce busi&ess a&d that "ead to Creati a %ore efficie&t a&d

co%petitive fi&a&cia" syste% suitab"e for the reuire%e&ts of the eco&o%y i&ce the

"ibera"i


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5C6 THE FACE OF INSURANCE INDUSTRY IN INDIA-

Fro% the )&dia& Life )&sura&ce Co%pa&y Act i& 1312 to the )A Act i& 1333=

re#u"atio& of i&sura&ce busi&ess has co%e a "o ,ay8 )&sura&ce is a subject of federa""a, a&d a"" i&sura&ce i& )&dia has bee& &atio&a"i


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Co&siste&t #ro,th has bee& observed i& the private i&sura&ce %ar9ets8 Thou#h L)C

has bee& i& the cou&try for a "o ti%e= it did&;t tap %uch of the rura" %ar9et8 )t o&"y

co&ce&trates o& the e&do,%e&t a&d %o&ey bac9 po"icies8 'rivate i&surers had ta9e&

adva&ta#e of this a&d had co%e ,ith i&&ovative products "i9e ?&it Li&9 )&sura&ce'roducts ?L)'s8

SOURCE:-)A jour&a" KApri" 2/

5D@ MARET SHARE OF ARIOUS PLAYERS OPERATING IN LIFE

INSURANCE INDUSTRY

i&ce the adve&t of the private p"ayers i& the %ar9et the i&dustry has see& &e,

a&d i&&ovative steps ta9e& by the p"ayers i& this sector8 The &e, p"ayers have i%proved

the service ua"ity of the i&sura&ce8 As a resu"t L)C do,& the years have see& the

dec"i&i phase i& its career8 The "ife i&sura&ce i&dustry has recorded a #ro,th of

128(1G i& pre%iu% co""ectio& for the period of Apri" / to February 0 over

correspo&di period i& the previous year8 The %ar9et share ,as distributed a%o the

private p"ayers8


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NA!E OF T.E

CO!'AN

TOTAL 'E!)?!

COLLECTE ?'TO

February 212)& Crores

!A+ET .AE )N G AN+)NI

18BA@A@ ALL)ANP 233081 *810 $rd

28)NI MA $(38 8/$ 12th

$ CB L)FE

)N?ANCEL)FE

/(8** 18($ 3th

( B) L)FE 1011833 283* (th

* TATA A)I *(/8*1 83($2 1th

/ .FC TANA 12381 282( *th

0 )C)C) '?ENT)AL (/38/ 082( 2&d

B)LA ?NL)FE /*18$/ 1812(2 0th

3 AM)MA *283 18/ th

1 +OTA+ !A.)NA

OL !?T?AL

(($8// 80/*0 11th

11 !A NEDO+ 01383 182(2( /th

12 !ET L)FE 2$(8$ 8(*$ 1$th

1$ A.AA L)FE 2*8/0 8(($ 1*th

1( .)A! L)FE 12(8/$ 821* 1(th

1* B.AT) AA (8( 800 1/th

1* L)C ($*0$8(* 0*82 1t

TOTAL :89>: 1 --------

SOURCE: -Jeport card: Life;=

)A jour&a" KApri" 20 p# (-*


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TOTAL !A+ET )PE::89>: C'o'%s

Fro% the above pie chart a&d tab"e ,e ca& co&c"ude that sti"" L)C is the %ar9et

"eader i& i&sura&ce i&dustry as it has a %ar9et share of a"%ost =i& "ife i&sura&ce

i&dustry co%pared to private p"ayers ,hich have o&"y 2$G of the tota" %ar9et share up


17/61

to !arch 20= L)C curre&t"y has a pre%iu% co""ectio& of ?9:9>?: C'o'%sco%pared to

1?9:>? C'o'%sof private p"ayers but the poi&t here ,hich is to be &oted here is that over

a period of ti%e the %ar9et share of L)C has dec"i&ed a&d %ar9et share of private p"ayers

have i&creased it ca& further be c"eared fro% the tab"e #ive& be"o,:

Fi&a&cia" year 22-$ 2$-( 2*-/ 2/-20 ?p

to !arch

CBL)C 32GQ 28$$G 018/*2G 0*G

')MATE

'LAE

GQ 108/0G 28$(G 2*G

QSo,'!%:-)A reports

SOURCE:-)A jour&a" K@u&e 2(= K!arch 20

o fro% the above tab"e ,e ca& say that there is a dec"i&e i& %ar9et share of L)C

i& 21-2 it ,as arou&d 3G but i& !arch 20 it is 0*G so %ar9et share of L)C has

dec"i&ed by a"%ost 2$8$(G fro% 21-2 to February 2/= ,e a"so &ote that the

%ar9et share of L)C has i&creased up ti"" 0*G ti"" !arch 20= but the poi&t ,hich is to

be &oted here is that this dec"i&e i& %ar9et share is &ot due to dec"i&e i& pre%iu%s of L)C

as they have rise& fro% year to year= )& %a&ifo"d but this dec"i&e i& %ar9et share is

%ai&"y due to e&try of other private p"ayer;s a&d a"so due to i&crease i& the pre%iu%

co""ectio& by the overa"" i&dustry8

GROWTH TREND IN LIFE INSURANCE INDUSTRY

FINANCIAL


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YEAR 3UPTO

FEBRUARY


19/61

1> The %ajor opportu&ity for i&sura&ce busi&ess is that sti"" a "ar#e portio& of

popu"atio& is u&i&sured a&d those ,ho are i&sured are u&der i&sured so there is a&

opportu&ity for i&sura&ce co%pa&ies to i&crease there reve&ues by i&suri the

u&tapped portio& of the popu"atio&8

The savis of peop"e ca& be diverted fro% ba&9i sector to i&sura&ce sector by

offeri custo%ers hi#her i&terest rates throu#h u&it-"i&9ed p"a&s89> There is a& opportu&ity for private p"ayers to i&crease their %ar9et share by

providi better products a&d services tha& L8)8C8

CHALLENGES-


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T"% i7% (#in !"#++%n$%s #!%d ) ins,'#n!% ind,s.') #'% #s o++o*s

1> Lo* #*#'%n%ss +%7%+- "ar#e portio& of the popu"atio& of )&dia is sti"" u&a,are of

the i&sura&ce as a ,ho"e= so it is a %ajor cha""ee before a"" the p"ayers i&

i&sura&ce i&dustry to %a9e the custo%ers a,are about i&sura&ce a&d ,hat are

their %ajor products8 P'od,!. inno7#.ion-Co%pa&ies sti"" fo""o, the sa%e o"d traditio&a" p"a&s ,ith

,hich the i&sura&ce i&dustry started8 There is a very "itt"e chae i& the products

offered8 Co&su%ers today see9 product that offer f"e4ib"e optio&s= products ,ith

be&efits u&bu&d"ed= products custo%i Dis.'i,.ion-curre&t distributio& cha&&e"s are &ot ab"e to serve the rura" areas of

the cou&try= so i&sures &eed to e4p"ore a"ter&ative cha&&e"s of distributio& for

both urba& a&d rura" area8

?> C,s.o(%' s%'7i!%- The prese&t co%%u&icatio& a&d pro%otio&s about various

i&sura&ce products i& )&dia are o&"y i&for%ative8 o ,hat &eeds to be do&e is to

,i& the hearts of the custo%ers by providi the% the e4tra ,hat the custo%ers

,a&ts ,ithout as9i for i8e8 hi#h "eve" of custo%er service8 T',s. #nd

!onid%n!%-peop"e te&d to have %ore faith i& #over&%e&t

:> ector dea"i ,ith i&sura&ce e8#8 L8)8C= 'eop"e fee" %ore secure a&d co&fide&t i&

i&vesti i& p"a&s of L8)8C8 rather tha& i& private p"ayers8

Apart fro% the above cha""ees the %ajor cha""ee faced by i&sura&ce sector is

to i&crease the pe&etratio& rate of i&sura&ce ,hich is very "o, i& )&dia it is o&"y

2G of I' a&d sti"" G of the popu"atio& is &ot i&sured a&d those ,ho are

i&sured are &ot fu""y i&sured8

The "i%ited covera#e i& the rura" areas a&d the vu"&erab"e sectio&s of the society

co&ti&ues to be a source of co&cer& for the re#u"atory body8 Dhi"e the private i&surers are

adheri to the tar#ets stipu"ated i& the e#u"atio&s= there is &eed for a #reater

i&vo"ve%e&t of the %a&a#e%e&t at various "eve"s so that the product that is fi&a""y

de"ivered serves the &eeds of those tar#eted #roup8 De have strea%"i&ed the defi&itio& of


21/61

Rrura" areasR to bri it o& par ,ith the c"assificatio& fo""o,ed by the Ce&sus epart%e&t

to avoid co&fusio& o& ,hat co&stitutes a Rrura" areaR8 )& the case of covera#e of the

socia""y disadva&ta#ed sectio&s= the )A has co%e out ,ith a draft %icro i&sura&ce

re#u"atio& to faci"itate easy covera#e a&d provide ua"ity service to the i&sured8

As ,e "oo9 bac9 at these four years= o&e ca& reaso&ab"y be proud of the strides

%ade by the i&dustry8 De are ,it&essi a de%o#raphic chae i& the cou&try a&d the

youer #e&eratio& ,hich is e4posed to the outside ,or"d de%a&ds products a&d services

,hich are at par ,ith ,hat is avai"ab"e i& the adva&ced cou&tries8 This is the bi##est

cha""ee8 ) have &o doubt that the )&dia& i&sura&ce co%pa&ies ,ou"d face this cha""ee

a&d provide services o& par ,ith services provided i& the adva&ced cou&tries8 The

re#u"atory re#i%e ,ou"d be happy to faci"itate this process ,he&ever its i&terve&tio& is

reuired8

5E6 Ao,. LIFE INSURANCE COMPANY


22/61

L)fe )&sura&ce Co%pa&y Li%ited is a part of CB L)fe )&sura&ceCapita" Ltd8 of

the CB L)fe )&sura&ce A&i" hirubhai A%ba&i Iroup8 CB L)fe )&sura&ceCapita"

is o&e of )&dia;s "eadi private sector fi&a&cia" services co%pa&ies= a&d ra&9s a%o the

top $ private sector fi&a&cia" services a&d ba&9i co%pa&ies= i& ter%s of &et ,orth8

CB L)fe )&sura&ceCapita" has i&terests i& asset %a&a#e%e&t a&d %utua" fu&ds= stoc9

bro9i= "ife a&d #e&era" i&sura&ce= proprietary i&vest%e&ts= private euity a&d otheractivities i&

Fi&a&cia" services8 CB L)fe )&sura&ceCapita" Li%ited CL is a No&-Ba&9i

Fi&a&cia" Co%pa&y NBFC re#istered ,ith the eserve Ba&9 of )&dia u&der sectio& (*-

)A of the eserve Ba&9 of )&dia Act= 13$(8

DSCB LIfe Insurance Capital sees immense potential in the

rapidly growing nancial services sector in India and aims to become a

dominant player in this industry and oer fully integrated nancial

services. LIfe Insurance is another step forward for DSCB LIfe

InsuranceCapital Limited to oer need based Life Insurance solutions

to individuals and Corporates.

The co%pa&y after ta9i over the Che&&ai based i&surer= A!' a&%ar #roup=

started roari to #o out i&to the %ar9et8

As a first step= a& app"icatio& ,as fi"ed for the chai the &a%e of the co%pa&y

to L)fe )&sura&ce8 )ts &e, CEO= ' Na&da#opa"= ,ho ,as poached fro% Bir"a u& Life

)&sura&ce Co%pa&y Li%ited= had bee& hired a&d used to spe&d %uch of his ti%e shutt"i

bet,ee& !u%bai a&d Che&&ai to reach out to the e%p"oyees ,ith the &e, o,&er;s visio&

a&d #oa"8

The co%pa&y;s &e, CEO had %ade it c"ear to the e%p"oyees that the pace of the

top"i&e #ro,th shou"d be acce"erated8 eachi this a%bitious tar#et ,ou"d reuire a

%u"ti-proed approach8 The t,o %ai& pros ,ere desi#&i &e, products a&d beefi

up the distributio&8


23/61

Dith a prese&ce i& si4 states= CB L)fe )&sura&ceLife ,a&ts a pa& )&dia prese&ce a&d

a"so %u"tip"e distributio& part&ers8 This %ea&s= the co%pa&y ,i"" ope& %ore bra&ches

a&d a"so active"y covet corporate a#e&ts= ba&9s a&d others8 )&cide&ta""y= it ,as

Na&da#opa" ,ho first i%p"e%e&ted the successfu" ba& assura&ce %ode" i& )&dia= ,hi"e he

,as se&ior vice preside&t= a"ter&ate cha&&e"s ,ith Bir"a u& Life8 Dhi"e there ,ere &o

e%p"oyees ,ho ,ere pur#ed= so%e operatio&s "i9e i&vest%e&ts= actuaria" a&d fi&a&ce ,i""be shifted to !u%bai i& the future8

Mission-De ai% to be the top &e, "ife i&sura&ce co%pa&y i& the %ar9et8 This does &ot

just %ea& bei the "ar#est or the %ost productive co%pa&y i& the %ar9et= rather it is a

co%bi&atio& of severa" this "i9e- S Custo%er service of the hi#hest order S Ma"ue for

%o&ey for custo%ers S 'rofessio&a"is% i& carryi out busi&ess S )&&ovative products to

cater to differe&t &eeds of differe&t custo%ers ?se of tech&o"o#y to i%prove service

sta&dards )&creasi %ar9et share8

#+,%s-

S EC?)T: 'rovidi "o-ter% fi&a&cia" security to our po"icyho"ders ,i"" be our

co&sta&t e&deavor8 De ,i"" be doi this by offeri "ife i&sura&ce a&d pe&sio& products8

S T?T: De appreciate the trust p"aced by our po"icyho"ders i& us8 .e&ce= ,e ,i"" ai%

to %a&a#e their i&vest%e&ts very carefu""y a&d "ive up to this trust8

S )NNOMAT)ON: eco#&i


24/61

SWOT ANALYSIS FOR DSCB LIFE INSURANCEINFOCOMM LTD>

STRENGTHS

)NFAT?CT?E .EAM BAC+ EN

Fin#n!i#+ %0&%'.is%: As a subsidiary co%pa&y of CB L)fe )&sura&ceCapita"=

L)fe )&sura&ce has the fi&a&cia" e4pertise reuired to %a&a#e your "o-ter%

i&vest%e&ts safe"y a&d efficie&t"y8

Inno7#.i7% id%#s: The Co%pa&y has a vast poo" of ta"e&t ,ho have the capabi"ity

a&d the abi"ity to ,or9 upo& &e, a&d i&&ovative i&vest%e&t p"a&s for the

custo%ers8

L#'$%' &oo+ o '%so,'!%s- The co%pa&y has a& i%%e&se capita" structure= ,hich

,as proved ,he& the co%pa&y acuired the south )&dia based A!'-AN!A

)&sura&ce co%pa&y= thus c"ear"y outbiddi the other suitors "i9e AM)MA= )C)C)

'?ENT)AL etc

R#n$% o so+,.ions: De have a rae of i&dividua" p"a&s ,hich ca& be by

ready%ade or tai"or %ade accordi to the choice of the custo%er thus he"pieach a&d every custo%er to #et e4act"y ,hat he ,a&ts8

B%s. M,.,#+ ,nd: The co%pa&y has bee& a,arded the best %utua" fu&d a,ard

for the year 20 !arch8


25/61

'EENCE ACO T.E CO?NT

The co%pa&y a"ready has its %utua" fu&d busi&ess across the cou&try a&d is

co%i up ,ith its &e, busi&ess ,hich is a bro9i house= &a%ed CB L)fe

)&sura&ce !o&ey across )&dia8

The co%pa&y has e&tered i&to a joi&t-ve&ture ,ith its subsidiary co%pa&y CB

L)fe )&sura&ce Co%%u&icatio&s to use it as a subsidiary cha&&e" ,ith its data

base for tappi &e, custo%ers8

The co%pa&y is o& a fast a&d vast e4pa&di phase= it is co%i up ,ith &e,

offices across the cou&try to tap &e, a&d pote&tia" custo%ers8

E!'.A) ON C?TO!E AT)FACT)ON AN E!'LOEE

The co%pa&y;s ai% is to provide custo%er satisfactio& at the first8

Offers pro%otio& to its Advisors to a"es !a&a#ers by co%p"eti a tar#et i& a

sti%u"ated period of ti%e8

The per9s a&d sa"aries #ive& to its e%p"oyees are far better tha& the other

co%pa&ies8


26/61

WEANESS

First ti%e e&teri i&to i&sura&ce sector8

Bei a &e, e&tra&t has &o prior e4perie&ce8

)&sura&ce is &ot e"ia&ce;s core co%pete&cies

'e&etratio& cost for i&dividua" custo%er is hi#h8

ura" covera#e is &ot avai"ab"e8

OPPORTUNITIES

To e&ter the Cha&&e" of Ba&-assura&ce8

Iro,i &eed for )&sura&ce for everybody8

'e&etratio& of i&dustria"i


27/61

THREATS

Leadi p"ayers are very stro i& this i&dustry "i9e )C)C) 'rude&tia" a&d Bajaj 8

A""ia&< a&d have a hu#e %ar9et prese&ce8

'aybac9 period is "o for L)fe )&sura&ce8

L)C has a hu#e adva&ta#e of trust i& the %i&ds of peop"e8

Co%petitors co%i out ,ith &e, a&d attractive products8

Co%pa&ies "i9e Bajaj A""ia&< have a hu#e force of Advisors to tap busi&ess8

Co%petitors "i9e Bajaj A""ia&< provide their Advisors ,ith hi#her co%%issio& as

co%pared to L)fe )&sura&ce8

The riva" co%pa&ies "i9e !et-"ife have a better tie-up ,ith the ba&9s for the

se""i of "ife i&sura&ce po"icies8


28/61

MAJOR COMPETITORS

HDFC STANDARD LIFE INSURANCE

ABOUT HDFC STANDARD LIFE

THE PARTNERSHIP

.FC a&d ta&dard Life first ca%e to#ether for a possib"e joi&t ve&ture= to e&ter the Life

)&sura&ce %ar9et= i& @a&uary 133*8 )t ,as c"ear fro% the outset that both co%pa&ies

shared si%i"ar va"ues a&d be"iefs a&d a stro re"atio&ship uic9"y for%ed8 )& October

133* the co%pa&ies si#&ed a $ year joi&t ve&ture a#ree%e&t8Arou&d this ti%e ta&dard

Life purchased a *G sta9e i& .FC= further strethe&i the re"atio&ship8

The &e4t three years ,ere fi""ed ,ith u&certai&ty= due to chaes i& #over&%e&t a&d

ooi de"ays i& #etti the )A )&sura&ce e#u"atory a&d eve"op%e&t authority

Act passed i& par"ia%e&t8 espite this both co%pa&ies re%ai&ed fir%"y co%%itted to the

ve&ture8)& October 133= the joi&t ve&ture a#ree%e&t ,as re&e,ed a&d additio&a"

resource %ade avai"ab"e8 Arou&d this ti%e ta&dard Life purchased 2G of )&frastructure

eve"op%e&t Fi&a&ce Co%pa&y Ltd8 )FC8 ta&dard Life a"so started to use the


29/61

services of the .FC Treasury depart%e&t to advise the% upo& their i&vest%e&ts i&

)&dia8

To,ards the e&d of 1333= the ope&i of the %ar9et "oo9ed very pro%isi a&d both

co%pa&ies a#reed the ti%e ,as ri#ht to %ove the operatio& to the &e4t "eve"8 Therefore= i&

@a&uary 2 a& e4pert tea% fro% the ?+ joi&ed a ha&d pic9ed tea% fro% .FC to for%

the core project tea%= based i& !u%bai8 Arou&d this ti%e ta&dard Life purchased a

further *G sta9e i& .FC a&d a *G sta9e i& .FC Ba&98

)& a further deve"op%e&t ta&dard Life a#reed to participate i& the Asset !a&a#e%e&t

Co%pa&y pro%oted by .FC to e&ter the %utua" fu&d %ar9et8 The !utua" Fu&d ,as

"au&ched o& 2th @u"y 28


30/61

INCORPORATION OF HDFC STANDARD LIFE

INSURANCE COMPANY LIMITED-

The co%pa&y ,as i&corporated o& 1(th Au#ust 2 u&der the &a%e of

.FC ta&dard Life )&sura&ce Co%pa&y Li%ited8 Our a%bitio& fro% as far bac9 as

October 133* ,as to be the first private co%pa&y to re-e&ter the "ife i&sura&ce %ar9et i&

)&dia8 O& the 2$rd of October 2= this a%bitio& ,as

rea"ised ,he& .FC ta&dard Life ,as the o&"y "ife co%pa&y to be #ra&ted a certificate

of re#istratio&8

.FC are the %ai& shareho"ders i& .FC ta&dard Life= ,ith 18(G= ,hi"e ta&dard

Life o,&s 18/G8 Iive& ta&dard Lifes e4isti i&vest%e&t i& the .FC Iroup= this is

the %a4i%u% i&vest%e&t a""o,ed u&der curre&t re#u"atio&s8 .FC a&d ta&dard Life

have a "o a&d c"ose re"atio&ship bui"t upo& shared va"ues a&d trust8 The a%bitio& of

.FC ta&dard Life is to %irror the success of the pare&t co%pa&ies a&d be the yardstic9

by ,hich a"" other i&sura&ce co%pa&ys i& )&dia are %easured8


31/61

OUR MISSION

De ai% to be the top &e, "ife i&sura&ce co%pa&y i& the %ar9et8 This does &ot just %ea&

bei the "ar#est or the %ost productive co%pa&y i& the %ar9et> rather it is a co%bi&atio&

of severa" this "i9e-

Custo%er service of the hi#hest order

Ma"ue for %o&ey for custo%ers

'rofessio&a"is% i& carryi out busi&ess

)&&ovative products to cater to differe&t &eeds of differe&t custo%ers

?se of tech&o"o#y to i%prove service sta&dards

)&creasi %ar9et share


32/61

OUR ALUES

EC?)T: 'rovidi "o ter% fi&a&cia" security to our po"icy ho"ders ,i"" be

our co&sta&t e&deavour8 De ,i"" be do this by offeri "ife i&sura&ce a&d pe&sio&

products8

T?T: De appreciate the trust p"aced by our po"icy ho"ders i& us8 .e&ce= ,e

,i"" ai% to %a&a#e their i&vest%e&ts very carefu""y a&d "ive up to this trust8

)NNOMAT)ON: eco#&i


33/61

ABOUT ICICI

)C)C) 'rude&tia" Life )&sura&ce Co%pa&y is a joi&t ve&ture bet,ee& )C)C) Ba&9= a

pre%ier fi&a&cia" po,erhouse a&d 'rude&tia" p"c= a "eadi i&ter&atio&a" fi&a&cia"

services #roup headuartered i& the ?&ited +ido%8 )C)C) 'rude&tia" ,as a%ost the

first private sector i&sura&ce co%pa&ies to be#i& operatio&s i& ece%ber 2 after

receivi approva" fro% )&sura&ce e#u"atory eve"op%e&t Authority )A8

)C)C) 'rude&tia"s euity base sta&ds at s8 382* bi""io& ,ith )C)C) Ba&9 a&d 'rude&tia"

p"c ho"di 0(G a&d 2/G sta9e respective"y8 )& the fi&a&cia" year e&ded !arch $1= 2*=

the co%pa&y #ar&ered s 1*( crore of &e, busi&ess pre%iu% for a tota" su% assured of

s 1$=0 crore a&d ,rote &ear"y /1*= po"icies8 The co%pa&y has a &et,or9 of about

*/= advisors> as ,e"" as 0 ba&cassura&ce a&d 1* corporate a#e&t tie-ups8 For the past

four years= )C)C) 'rude&tia" has retai&ed its positio& as the No8 1 private "ife i&surer i&

the cou&try= ,ith a ,ide rae of f"e4ib"e products that %eet the &eeds of the )&dia&

custo%er at every step i& "ife.


34/61

RESEARCH METHODOLOGY 3R>M>4RESEARCH METHODOLOGY 3R>M>4

8!8 is a ,ay to syste%atica""y so"ve the research prob"e%8 )t

i&c"udes the various steps that are #e&era""y adopted by the researcher i& studyi the

research prob"e% a"o ,ith the "o#ic behi&d the%8 The steps are as fo""o,s: -

STEPS INOLED IN THE RESEARCH METHODOLOGY

$ro%lem definition

Research o%&ectives

'ources of data

Data collection Techni(ues

'ample plannin#) sample

'i*e and type

Data analysis

And interpretation

+onclusion and

Recommendations


35/61

PROBLEM DEFINITIONS- ;

)&dicatio& of a specific busi&ess decisio& area that ,i"" be c"arified by

a&s,eri so%e research uestio&s8

RESEARCH OBJECTIES- ;

Carefu" atte&tio& to prob"e% defi&itio& a""o,s a researcher to set the proper

research objectives= ,hich have bee& %e&tio&ed i& the objectives of the project chapter8

.ere the research objective ,as to study the co&su%er behavior of peop"e ,hi"e #oi for

"ife i&sura&ce po"icies8

DATA SOURCE- ;

The data ta9e& or co""ected fro% differe&t sources to carry out the research is

ca""ed data source8 There are t,o types of data sources>

PRIMARY DATA- ;

ata #athered asse%b"ed specifica""y for the research project at ha&d is ca""edpri%ary data8 )t is the %ost curre&t data a&d this happe&s to be ori#i&a" i& character8 This

,as co""ected by fi""i up 5uestio&aires fro% the prospective c"ie&ts8

'ri%ary data for the project ,as co""ected fro% the custo%ers of differe&t

type of out"ets8

SECONDARY DATA- ;

ata that have bee& previous"y co""ected for so%e project other tha& the o&e at

ha&d8 Debsite= %a&ua"s a&d "eaf"ets of the co%pa&y L)fe )&sura&ce are the seco&dary

data for research8


36/61

TYPES OF RESEARCHTYPES OF RESEARCH--

escriptive research

5ua&titative research

DESCRIPTIE RESEARCH;

)t i&c"udes survey a&d fact fi&di e&uiries of differe&t 9i&ds8 The %ajor purpose

of this is descriptio& of state of affairs= as it e4ists at prese&t8 .ere the source of the

descriptive research has bee& )A @our&a"s= Busi&ess !a#a


37/61

This type of sa%p"i is used ,he& the tota" #eo#raphica" area of i&terest happe&s

to be bi# o&e8 ?&der area sa%p"i ,e first divide the tota" area i&to a &u%ber of s%a""er

&o&-over"appi areas= the& &o8 Of these areas are ra&do%"y se"ected8

This %ethod %a9es the fie"d i&tervie,i %ore efficie&t8 i&ce i&tervie,er ca& do

%a&y i&tervie,s at each "ocatio&8

SAMPLE PLANNING- ; Type of sa%p"i is 'robabi"istic sa%p"i u&der ,hich

area sa%p"i %ethod is used8 .ere ) have co""ected the data fro% the peop"e i& a certai&

area ,here ) have %ar9eted the products of L)fe )&sura&ce8

SAMPLING UNIT-- i&ce the project co&sisted of co""ectio& of data fro% the %ass

a&d the prospective custo%ers= ,e too9 the respo&se of the both of the% as

a sa%p"e8

SAMPLING SIE- ; The project ,hich co&sisted of co""ectio& of data as ,e"" as

direct se""i of the "ife i&sura&ce po"icies= ) have ta9e& a sa%p"e of (

custo%ers to provide for the database to u&dersta&d the popu"atio& better8


38/61


39/61

.ere= the %ost preferred %ea&s of fi&a&cia" i&vest%e&t by a c"ie&t ,as Ba&9

Fi4ed eposits8 This ,as because the i&terest rates paid to a custo%er o& a Fi4ed eposit

has bee& i&creased by B)= a ordi&ary custo%er #ets a& i&terest of 380*G p8a8 ,hi"e a

se&ior citi


40/61


41/61


42/61

The respo&de&ts ,he& as9ed about the i%porta&t features of a& i&sura&ce

i&vest%e&t had a& opi&io& ,hich the co%pa&y %ust ta9e &ote of8 !a&y peop"e ,a&ted

"iuidity i& their i&vest%e&ts8 A respo&de&t ,he& as9ed to fi"e i& the uestio&&aire

su##ested that the co%pa&y %ust "au&ch so%e p"a&s ,hich have "iuidity= si&ce %a&y

peop"e stay a,ay fro% i&sura&ce as it does &ot provide ,ith easy e&try a&d e4it ,he&

ever reuired8

A"so there ,ere 12G peop"e ,ho ,a&ted their i&vest%e&ts to be safe= this ,as

because %a&y peop"e co%p"ai&ed that they had ta9e& ?L)' p"a&s i& the past= o& the

,ords of the advisor= that the c"ie&ts ,ou"d #et 2-2*G retur&s after three years= but

,he& the ti%e passed o&= despite of #etti #ood retur&s= peop"e "ost their %o&ey i&

these p"a&s because of hi#h pre%iu% a""ocatio& char#es8

A&other 1G peop"e ,ho fi""ed the uestio&&aire= ,a&ted their i&vest%e&ts to

#ro,= si&ce these days eve& the ba&9s are #ivi retur&s up-to 180*G o& fi4ed deposits=

but ,hat the i&sura&ce p"a&s #ive is a %ere retur& of /-1G= accordi to )A &or%s8

A"so there ,ere 3-1G peop"e= ,ho ,a&ted a ris9 cover for the%se"ves a&d their

fa%i"ies8 .o,ever a thi ,hich i&terested %e i& this survey ,as that= a"thou#h the peop"e ,hoa&s,ered these uestio&s ,a&ted a ris9-cover for the%se"ves a&d their fa%i"ies yet %a&y of

these peop"e ,ere &ot i&sured8 O& as9i as to the reaso& for &ot ta9i up a& i&sura&ce po"icy=

their a&s,er ,as strae that they ,ou"d prefer ba&9 deposits rather tha& i&sura&ce i&vest%e&ts

as it provided the% ,ith #ood retur&s a"o ,ith easy "iuidity8 !y co&c"usio& fro% havi a

,ord fro% such peop"e ,as that these peop"e ,ere a%o those ,ho ,a&ted the i&sura&ce

co%pa&y to #ive the% hi#her a&d sure retur&s a"o ,ith easy "iuidity8


43/61

5( Dho% do you re"y o& before buyi a& i&sura&ce po"icyU '"ease ra&9

a e"f throu#h co%pariso& of various po"icies

b e"f throu#h co%pariso& of various co%pa&ies

c A#e&td 'are&ts E"ders

e 'ast E4perie&ce ,ith the co%pa&y

f Frie&ds

# pouse

h Co%pa&y advertise%e&t

No.%- .ere hi#hest 1st ra&9 is #ive& ,ei#hts a&d the "o,est th is

#ive& 1 ,ei#ht a&d thus "ater o& the a##re#ate ,ei#hts are ca"cu"ated

for each factor a&d the& the perce&ta#es are ca"cu"ated fro% the tota"

,ei#hts8


44/61

This uestio& is very i%porta&t as it ref"ected the behavior e4hibited by the

co&su%er ,hi"e re"yi o& ,he& buyi the i&sura&ce po"icies8

The a&a"ysis i& this uestio& ,as c"ear that 1G of the co&su%ers out of a tota" of

(= ,hi"e buyi the i&sura&ce po"ices %ai&"y trusted the%se"ves by co%pari thevarious po"ices avai"ab"e8 This tech&iue is the best= si&ce by co%pari the various

po"icies avai"ab"e= o&e ca& chop out the best p"a& or the po"icy ,hich suits his or her

reuire%e&t a&d provides ,ith the %a4i%u% retur& a"o ,ith a #ood su% assured8

.o,ever= there ,ere 1/G peop"e ,ho purchased the i&sura&ce po"icies by

co%pari the p"a&s a&d po"icies of various co%pa&ies8 This tech&iue ho"ds #ood ,he&

the co&su%er has 9&o,"ed#e of various co%pa&ies a&d he #oes for the p"a&s of those

co%pa&ies ,hich have a #ood %ar9et reputatio& a&d have those products ,hich provide

the hi#hest a&d the best retur& for custo%er;s %o&ey8

There ,ere a&other 1*G of peop"e ,ho i&vo"ved their pare&ts i& decidi about

,hich p"a& of ,hich co%pa&y to purchase8 A& i%porta&t a&d i&teresti fi&di ,hich

arose ,hi"e a&a"y


45/61

5* )f you re"y o& a& i&sura&ce a#e&t p"ease ra&9 the fo""o,i attributes you "oo9 for i&

hi% herU

a 'roduct 9&o,"ed#e

b Co%petitive 9&o,"ed#e

c Attitude A#reeabi"ityd Abi"ity to ca"cu"ate %y i&sura&ce &eeds

e Abi"ity to co%%u&icate ,e""

f espo&sive&ess

# Fa%i"iarity

h Co&fide&ce

No.%- .ere hi#hest 1st ra&9 is #ive& ,ei#hts a&d the "o,est th is



,ei#hts8


46/61

These are the days of i%%e&se co%petitio& a&d the days ,he& a 12 thpass perso&

,as %ade a& advisor i& a& i&sura&ce co%pa&y have #o&e8 These days= private

co%pa&ies "oo9 for peop"e ,ho are co&fide&t= have a p"easi perso&a"ity= have a

co&vi&ci po,er are %ore "i9e"y desired a&d such peop"e are ta9e& for the

desi#&atio& of a& advisor= these days8

A&other i%porta&t fact ,hich arose out of the survey ,as that the custo%ers a"so

,a&ted advisors ,ho have product 9&o,"ed#e a&d ca& co%%u&icate ,e""= to provide

the c"ie&t ,ith the i&vest%e&t ideas8

)& the survey= 1G peop"e ,ere those ,ho ,a&ted advisors ,ith detai"ed a&d

co%p"ete product 9&o,"ed#e to visit the% a&d share ideas ,ith the% for their

i&vest%e&ts8 This ,as because the custo%er today is &ot happy ,ith a #ist of ideas=

but he ,a&ts the co%p"ete 9&o,"ed#e of the product ,hich he is #oi to buy8

A&other i%porta&t ua"ity ,hich the custo%er is "oo9i for i& the advisor is the

abi"ity to co%%u&icate ,e""8 This characteristic is i%porta&t si&ce the days ,he& o"d

a&d peop"e poor at verba" "aua#e use to serve L)C have #o&e a&d co%pa&ies are

"oo9i for %a&-po,er ,ith #ood co%%u&icatio& s9i""s to tap the custo%er

i%%ediate"y8 A"so peop"e ,ho have a #ood co%%u&icatio& s9i"" ca& e4p"ai& the

product better to the custo%er thus avoidi for a&y ,aste of ti%e8

A&other ua"ity ,hich a& i&sura&ce a#e&t %ust possess is that he shou"d be ,e""

versed i& ca"cu"ati the i&sura&ce &eeds of a perso& i8e8 he shou"d be ab"e to esti%ate

,eather a perso& reuires hi#h su%-assured or hi#h retur&s or %ay be safe retur&s

fro% his i&vest%e&t8 A#e&ts ,ho are ab"e to do this ca& fetch #ood busi&ess for the

co%pa&y= si&ce the custo%er accepts hi% as a #ood a#e&t8


47/61

5/ o you thi&9 you ,i"" buy a& i&sura&ce po"icy after scruti&i


48/61

4 Ho* do )o, ."in )o, *i++ +i% .o ) &'%(i,(s 3P+%#s% '#n4

a eposit Cheues i& i&sura&ce co%pa&ies office

b eposit Cheues i& co""ectio& bo4es

c A#e&t co%es to co""ect cheued O&"i&e pay%e&t throu#h credit card

e Auto%atic debit throu#h ba&9 accou&t

No.%- .ere hi#hest 1st ra&9 is #ive& * ,ei#hts a&d the "o,est *th is



,ei#hts8


49/61

Io&e are the days ,he& a#e&ts used to co%e to co""ect cheues fro% the custo%er

a#ai&st their po"icies8 These days= the a#e&ts of the private co%pa&ies do &ot #o door to

door to the custo%er co""ecti cheues fro% the% but i&stead the custo%er hi%se"f have

to drop i& the cheue or #ive sta&di order to the ba&9s for the auto%atic debit of the

subseue&t pre%iu%s fro% their accou&ts8 This is because= the a#e&ts #et their

co%%issio&s o& the subseue&t pre%iu%s i%%ediate"y a&d it is e4pected fro% thecusto%er that i& order to co&ti&ue e&joyi the ris9-cover= he sha"" pay the subseue&t

pre%iu%s at his cost8

.o,ever= si&ce the traditio& of L)C= peop"e sti"" e4pect the a#e&t to co%e a&d co""ect

their cheues8 )& the survey= ) fou&d out that 20G of the peop"e ,a&ted the a#e&t to co%e

a&d co""ect the cheues= ,hi"e 2G of the peop"e preferred to ,a"9 i& the i&sura&ce

co%pa&ies office a&d drop i& the cheue= a"so 13G peop"e preferred #ivi sta&di

i&structio&s to the ba&9 to auto%atica""y debit the pre%iu% a%ou&t fro% their ba&9

accou&ts8


50/61

5 Dhat is your preferred pre%iu% pay%e&t freue&cyU

a !o&th"y

b 5uarter"y

c .a"f-year"yd ear"y

The preferred freue&cy of pre%iu% pay%e&t depe&ds upo& the occupatio& a&d ear&i

of a& i&dividua"= peop"e ,ho are sa"aried prefer payi pre%iu%s %o&th"y or uarter"y or

%ay be eve& ha"f-year"y8 But those ,ho are se"f-e%p"oyed prefer payi pre%iu% year"y8

Dhe& as9ed a respo&de&t as to the reaso& ,hy he ,ou"d "i9e his pre%iu% to be paid

year"y as he bei a busi&ess %a&= his a&s,er ,as that payi pre%iu% year"y saves ti%e

a&d he ,a&ted to avoid the hass"es of payi pre%iu% %o&th"y or uarter"y by ru&&i to

i&sura&ce co%pa&ies office8


51/61

A&other respo&de&t ,he& as9ed about his &eeds of payi pre%iu% %o&th"y as he bei

a& ei&eer i& ONIC ,as that he preferred payi his dues as a&d ,he& they arise rather

tha& accu%u"ati the% a&d payi the% at o&e #o ,hich ,ou"d si#&ifica&t"y affect his

poc9et8

Thus it ,as c"ear that pre%iu% payi freue&cy of a perso& depe&ded upo& his i&co%ea&d his type of professio&8

)& the survey= (2G of the peop"e i8e8 10 out of ( peop"e ,ho ,ere %ost"y se"f-e%p"oyed

,a&ted or rather preferred payi pre%iu%s year"y8 Dhi"e there ,ere 1$ of the% ,ho

,a&ted to pay pre%iu%s ha"f-year"y8 uch peop"e %ost"y co&sisted of sa"aried c"ass8

A&other corre"ati thi ,hich arose out of this uestio& ,as that peop"e ,ho paid

pre%iu%s ha"f-year"y or uarter"y or %ay be eve& %o&th"y= preferred payi pre%iu%s

by #ivi sta&di order to the ba&9s for auto%atic debit fro% their ba&9 accou&ts or

char#i it a#ai&st their credit card bi""s as these peop"e ,a&ted to avoid the hass"es of

ru&&i to the offices of those i&sura&ce co%pa&ies for pay%e&t of pre%iu%s8


52/61

84 W"#. is )o,' &'%%''%d .i(% &%'iod o ins,'#n!%

a 1 year

b V* yearsc * to 1 years

d 1 to 1* years

e W1* years

Custo%ers preferred period of i&sura&ce depe&ds upo& his &eed of %o&ey i& the

future8 )&sura&ce po"icies are ta9e& by peop"e for supporti their chi"d;s educatio& or

%ay his %arria#e or a&y other p"a&&i for a "o ter%8 i&ce i&sura&ce po"ices does &ot

provide for "iuidity= peop"e #o for "ife i&sura&ce po"icies to save %o&ey for future8 A"so

it ,as see& i& the survey that &o&e of the sa%p"e ,ho fi""ed i& the uestio&&aire preferred

the period of i&sura&ce #reater tha& 1*yrs8 O& as9i a respo&de&t as to the reaso& for &ot

choosi the ter% #reater tha& 1*years= the a&s,er ,as that the ti%e spa& is too "o a&d

it ,as better to i&vest i& rea" estate rather i&sura&ce8


53/61

The a&a"ysis out of the uestio&&aire ,as that /2G i8e82* peop"e out of (

preferred ti%e period for i&sura&ce to be * to 1 yrs8 This ,as due to the ti%e spa& bei

&o%i&a"8

A"so a&other respo&de&t ,ho ,as i& a te"eco% co%pa&y a&s,ered that his reaso&

for &ot ta9i the i&sura&ce po"icy for above 1*yrs ,as that he be"ieved that i& the yearsto co%e i&f"atio& cou"d &ot be predicted a&d ,hich if hi#h ,ou"d reduce his ear&is i&

the i&sura&ce po"icy8

There ,ere a&other 2$G peop"e ,ho be"ieved that they ,ou"d prefer ta9i the

i&sura&ce po"icy i& the ti%e spa& of 1 to 1* yrs8


54/61

RECOMMEND

ATIONS TO THE COMPANY

The co%pa&y shou"d i&crease its e4pe&diture o& advertisi= si&ce the co&su%ers

i& the %ar9et are &ot ,e"" versed a&d fa%i"iar ,ith re"ia&ce;s products a&d its

e&try i&to the "ife i&sura&ce i&dustry8

The co%pa&y ca& co%e out ,ith tie-ups ,ith its subsidiary co%pa&y= CB L)fe

)&sura&ce co%%u&icatio&s for the "au&ch of so%e ?L)' p"a&s i& ,hich eve& a

s%a"" i&vestor ca& pay out the %i&i%u% pre%iu% o& %o&th"y basis throu#h his

CB L)fe )&sura&ce co%%u&icatio& bi""i for ta9i a ris9 cover a&d a&

i&sura&ce po"icy8

The co%pa&y %ust co%e out ,ith a& a##ressive strate#y to hire advisers "i9e its

riva" Bajaj A""ia&< has do&e i& ehradu& ?ttra&cha"8 Bajaj A""ia&< has a "ar#er

&o of advisors because it offers the% up to (G co%%issio& o& sa"e of its ?L)'

products8

The co%pa&y i& order to tap the outs9irts of the popu"atio& ca& e&coura#e the

s%a"" a&d %ediu% shop 9eepers ,ho are a"so "ocated i& the sa%e re#io& to use

posters etc of L)fe )&sura&ce i& their shops to %ar9et a&d se"" its products8

The a#e&cy deve"op%e&t ce"" ca& tar#et Iovt schoo"s= hospita"s= etc to hire

advisors for the sa"e of its products8

The a#e&cy deve"op%e&t ce"" ca& a"so co""ect data fro% the riva" co%pa&ies

throu#h fi""i of uestio&&aires for tappi the advisors of other co%pa&ies8

The co%pa&y %ust provide a custo%er feed bac9 for% to it;s custo%ers= ,hich

ca& be dispatched as soo& as the custo%er #ets the po"icy docu%e&ts by ,hich the

co%pa&y ca& 9&o, as to ,eather the custo%ers are satisfied ,ith the co%pa&iesproducts a&d ,eather they ,ou"d #o for a re-purchase or &ot8

The co%pa&y %ust &o, e&ter the #roup-i&sura&ce po"icy se#%e&t ,ere it ca&

tar#et the corporate se#%e&t a&d ca& raise so%e #ood busi&ess by #ivi the

cheapest dea"s a&d thus p"ayi o& vo"u%es8


55/61

The co%pa&y %ust arrae se%i&ars o& ti%e to ti%e basis to provide it;s

e%p"oyees ,ith the 9&o,"ed#e about the "atest products8

)t %ust i%prove it;s ti%e ta9e& to dispatch the po"icy docu%e&ts to the custo%ers8

The co%pa&y %ust arrae for so%e pic9-up faci"ity for the subseue&t pre%iu%s

at the door steps of the custo%ers8

L)fe )&sura&ce %ust "au&ch products ,hich are specia""y desi#&ed for Fe%a"es8


56/61

INTERESTING FINDINGS

The co&su%ers ,ho ,ere i&terested i& ta4 savi ,a&ted the cheapest dea"= "i9e

%i&i%u% pre%iu% a""ocatio& char#es a&d the other retai" i&vestors ,a&ted safety

as ,e"" as hi#h retur&s8

'eop"e i& ehradu& ,ere %ore i&terested i& i&vesti i& rea" estate rather tha&

i&sura&ce si&ce the retur&s i& this i&dustry ,ere uite hi#her tha& the )&sura&ce

i&dustry a&d peop"e treated )&sura&ce %ere"y as a ta4-savi a&d a ris9-cover

i&stru%e&t8

)&sura&ce acts as a po,erfu" too" for ta4 savi= ,hich is pri%ari"y the fu&ctio& of

charted accou&ta&ts= he&ce as i&vest%e&ts= %ost of the peop"e trust b"i&d"y upo&

charted accou&ta&ts8

Of a"" the distributio& cha&&e"s 9&o,& to the peop"e= %ost preferab"e is throu#h

ba&9s8 The basic reaso& behi&d that is the #uara&tee of a& i&ter%ediary8 Ie&era""y

popu"atio& trust upo& ba&9s as i&ter%ediary8 A&other stro poi&t of ba&9 is the

"oa&s provided by the%8 This %a9es peop"e %ore re"iab"e o& ba&9s8

The %ar9et share of L)C has i&creased fro% 01G i& !arch 2/ to 0*G ti"" Apri"

20= a&d the %ar9et share of the private p"ayers have dec"i&ed fro% 2G i&

!arch 2/ to 2*G i& Apri" 208

A&other i%porta&t fi&di ,hich ) ca%e across duri %y survey ,as that L)fe

)&sura&ce ,i"" be tar#eti the data base of its subsidiary co%pa&y CB L)fe

)&sura&ceCo%%u&icatio&s to tap &e, custo%ers8

!a&y co&su%ers ,ho ,ere fe%a"es de%a&ded a product ,hich ,as specia""y

desi#&ed for the%= ,hich L)fe )&sura&ce does &ot have= a&d their riva"s "i9e Bajaj

A""ia&


57/61

CONCLUSION-

As far as CB L)fe )&sura&ceis co&cer&ed= L)C has a #e&eric &a%e i& the "ife

i&sura&ce i&dustry= a&d the private co%pa&ies %ust ,or9 %ore upo& their %ar9eti

strate#ies8

Accordi to a respo&de&t= ua"ity of service is of ut%ost i%porta&ce> he&ce the

co%pa&y shou"d project itse"f as bra&d i& the %ar9et8 That #ives the e&d user the

best ua"ity of service ,ith ha&dy operatio&s8

)f the co%pa&y provides better ua"ity of service to the e4isti users the& 2*G

other custo%ers %ay tur& to L)fe )&sura&ce8

)& a city "i9e ehradu&= %ost of the peop"e had a prefere&ce for i&vesti i& ea"

Estate= si&ce it provides for the hi#hest retur&s i& short ti%e spa&8

A&other i%porta&t fact ,hich ) ca%e across ,as that 'rivate co%pa&ies %ust hire

advisors ,ho have a #ood co%%a&d over verba" "aua#e a&d %ust have ua"ities

"i9e #ood co%%u&icatio& s9i""s= Co&fide&ce= 'roduct 9&o,"ed#e= Co%petitive

streths8


58/61

REFERENCES

Boos-

!ar9eti !a&a#e%e&t by 'hi"ip +ot"er

'o"icies boo9"ets of L)fe )&sura&ce8

)&sura&ce Co%pa&y8

Ne,s papers

Busi&ess Dor"d

Busi&ess Today

)CFA) @our&a"s o& )&sura&ce

Ieeta&ja"i !eh",a"= 6The Face of the )&sura&ce )&dustry i& )&dia7= )N?ANCE

C.ON)CLE K@a&uary 2/8

)rda jour&a" KApri" 2/

)rda jour&a" K@u&e 2(

)rda jour&a" K!arch 20

)rda jour&a" KApri" 20

W%si.%-

,,,8#oo#"e8co8i&

,,,8dscb8co8i&

,,,8i&diai&fo"i&e8co%

,,,8re"ia&ce"ife8co8i&

,,,8irdai&dia8or#

,,,8bi%ao&"i&e8co%
http://www.google.co.in/http://www.indiainfoline.com/http://var/www/apps/conversion/tmp/scratch_2/www.reliancelife.co.inhttp://www.irdaindia.org/http://www.bimaonline.com/http://www.google.co.in/http://www.indiainfoline.com/http://var/www/apps/conversion/tmp/scratch_2/www.reliancelife.co.inhttp://www.irdaindia.org/http://www.bimaonline.com/


59/61

A&&%ndi0 5uestio&&aire

'tudy of ,LI-.

I/'0RA/+. needs and ha%its amon# people

AGE- KKKKKKKKKKKKKK

GENDER- KKKKKKKKKKKKKK

EDUCATION- KKKKKKKKKKKKKKKK

OCCUPATION- KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK

51 Dhat is your prefere&ce for A&y Fi&a&cia" )&vest%e&tU '"ease a&9

A Ba&9 Fi4ed eposits B Co%pa&y Fi4ed eposits

C hare !utua" Fu&ds

E ea" Estate F Io"d i"ver

I )&sura&ce Cover- Life . )&sura&ce Ie&era"- No& Life

52 Dhat do you thi&9 of Life )&sura&ce pri%ari"yU

A As a ris9 cover B As a& i&vest%e&t

C As a %i4ture of both A&y otherXXXX


60/61

5$ Dhat are the i%porta&t features of a& i&sura&ce i&vest%e&t for youU '"ease a&9

A afety B Liuidity

C Iro,th )&sura&ce ris9 for se"fE )&sura&ce ris9 for fa%i"y %e%bers F )&co%e ta4 savi

I is9 a#ai&st theft Ie&era" )&sura&ce . 're%iu% a%ou&t

) !o&ey bac9 @ ervice re&dered

+ Ease i& pay%e&t L espo&sive&ess

! O&"i&e detai"s

N Avai"abi"ity of a Co%pa&y eprese&tative i& &eed

5( Dho% do you re"y o& before buyi a& i&sura&ce po"icyU '"ease a&9

A e"f throu#h co%pariso& of various po"icies

B e"f throu#h co%pariso& of various co%pa&ies

C A#e&t

'are&ts E"ders

E 'ast e4perie&ce ,ith the co%pa&y

F Frie&ds

I pouse

. Co%pa&y advertise%e&t

)A&y other '"ease specifyXXXXX8

5* )f you re"y o& a& i&sura&ce a#e&t p"ease ra&9 the fo""o,i attributes you "oo9 for i&

hi% herU

A 'roduct 9&o,"ed#e B Co%petitive 9&o,"ed#e

C Attitude A#reeabi"ity Abi"ity to ca"cu"ate %y i&sura&ce &eeds

E Abi"ity to co%%u&icate ,e"" F espo&sive&ess


61/61

I Fa%i"iarity . Co&fide&ce

) A&y other '"ease specifyX8

5/ o you thi&9 you ,i"" "i9e to buy a& i&sura&ce po"icy after scruti&i

Documents

Delhi State Cooperative Bank