Organisational Study at Tata Aig (2)FINAL

7/29/2019 Organisational Study at Tata Aig (2)FINAL

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Organisational study

EXECUTIVE SUMMARY

An organization is a planned co-ordination of a group of people and their

joint efforts for the achievement of the specific goals of the organization. An

organization is a social arrangement which pursues collective goals, controls its

own performance, and has a boundary separating it from its environment. The word

itself is derived from the Greek word organon, itself derived from the better-known

word ergon.

Organization study is an essential part of the MBA Programme. It helps us

to know more about the functions, structures, policies and different procedures

undertaken in an organization. It aims at creating a practical knowledge, experience

and exposure for the students by giving the opportunity to know, observe, learn and

analyses the nature, vision, objectives and functioning of an organization and the

activities of various departments of the organization

The organization selected for purpose of the study is TATA AIG LIFE

INSURANCE. The study is mainly based on details collected from each

department. Each and every activities of the company is studied carefully with the

data available. The data is available from various sources like past records of the

organization, direct interaction with concerned persons or by personally visiting

each department. The study helps in obtaining practical experience of the operations

in an organization.

Structure of the organization is very important for its functioning and growth. It

provides the basic framework for its progress and expansion.

For future managers it is imperative to study the organizational structure and

functioning of the successful organization so that the future managers may guide

organizations towards success and profitable functioning.

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INDUSTRY PROFILE

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against. The contract is valid for payment of the

insured amount during: 1- The date of maturity, or 2- Specified dates at periodic intervals, or 3-

Unfortunate death, if it occurs earlier.

In other words its a written contract or certificate of insurance that provides protection

against future loss. A promise of reimbursement in the case of loss; paid (sum assured) to people orcompanies (insured) so concerned about hazards that they have made prepayments (premiums) to

an insurance company (insurer).

Insurance is a contractual arrangement that provides for compensation by an insurer to an

insured party if or when a specified set of circumstances occurs. Such circumstances may include

death or personal injury, accident, unemployment or old age, loss of or damage to property, or any

one of a number of instances that can be compensated for financially.

The insurer conducts its operations by amassing relatively small contributions from many

people who are exposed to the risk of occurrence of an unforeseen event in order to create a fund

that is used to reimburse those insured who actually suffer from such an occurrence. The

contributions of the policyholders are called premiums.

A contract of insurance is embodied in a policy that specifies the terms under which the

insurer agrees to indemnify the policyholder for loss in consideration of the payment of a stated

premium or premiums.



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Parties to contract

There is a difference between the insured and the policy owner (policy holder), although the owner

and the insured are often the same person. For example, if Joe buys a policy on his own life, he is

both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner

and he is the insured. The policy owner is the guarantee and he or she will be the person who will

pay for the policy. The insured is a participant in the contract, but not necessarily a party to it.

However, "insurable interest" is required to limit an unrelated party from taking life insurance on,

for example, Jane or Joe.

The beneficiary receives policy proceeds upon the insured's death. The owner designates

the beneficiary, but the beneficiary is not a party to the policy. The owner can change the

beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable

beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash

value borrowing.

In cases where the policy owner is not the insured (also referred to as the celui qui vit or

CQV), insurance companies have sought to limit policy purchases to those with an "insurable

interest" in the CQV. For life insurance policies, close family members and business partners will

usually be found to have an insurable interest. The "insurable interest" requirement usually

demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Such a

requirement prevents people from benefiting from the purchase of purely speculative policies on

people they expect to die. With no insurable interest requirement, the risk that a purchaser would

murder the CQV for insurance proceeds would be great. In at least one case, an insurance company

which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the

proceeds), was found liable in court for contributing to the wrongful death of the victim (Liberty

National Life v. Weldon, 267 Ala.171 (1957)).

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Contract terms

Special provisions may apply, such as suicide clauses wherein the policy becomes null if

the insured commits suicide within a specified time (usually two years after the purchase date;

some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on

the application is also grounds for nullification. Most US states specify that the contestability

period cannot be longer than two years; only if the insured dies within this period will the insurer

have a legal right to contest the claim on the basis of misrepresentation and request additional

information before deciding to pay or deny the claim.

The face amount on the policy is the initial amount that the policy will pay at the death of

the insured or when the policy matures, although the actual death benefit can provide for greater or

lesser than the face amount. The policy matures when the insured dies or reaches a specified age

(such as 100 years old).

Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to fund

claims to be paid and administrative costs, and to make a profit. The cost of insurance is

determined using mortality tables calculated by actuaries. Actuaries are professionals who employ

actuarial science, which is based in mathematics (primarily probability and statistics). Mortality

tables are statistically-based tables showing expected annual mortality rates. It is possible to derivelife expectancy estimates from these mortality assumptions. Such estimates can be important in

taxation regulation.

The three main variables in a mortality table have been age, gender, and use of tobacco.

More recently in the US, preferred class specific tables were introduced. The mortality tables

provide a baseline for the cost of insurance. In practice, these mortality tables are used in

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conjunction with the LIFE and family history of the individual applying for a policy in order to

determine premiums and insurability. Mortality tables currently in use by life insurance companies

in the United States are individually modified by each company using pooled industry experience

studies as a starting point. In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables

were the typical reference points, while the 2001 VBT and 2001 CSO tables were published more

recently. The newer tables include separate mortality tables forsmokers and non-smokers and the

CSO tables include separate tables for preferred classes.

Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males

aged 25 will die during the first year of coverage after underwriting. Mortality approximately

doubles for every extra ten years of age so that the mortality rate in the first year for underwritten

non-smoking men is about 2.5 in 1,000 people at age 65. Compare this with the US population

male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to LIFE or

smoking status).

The mortality of underwritten persons rises much more quickly than the general population.

At the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year.

Consequently, in a group of one thousand 25 year old males with a $100,000 policy, all of average

LIFE, a life insurance company would have to collect approximately $50 a year from each of a

large group to cover the relatively few expected claims. (0.35 to 0.66 expected deaths in each year

x $100,000 payout per death = $35 per policy). Administrative and sales commissions need to be

accounted for in order for this to make business sense. A 10 year policy for a 25 year old non-

smoking male person with preferred medical history may get offers as low as $90 per year for a

$100,000 policy in the competitive US life insurance market.

The insurance company receives the premiums from the policy owner and invests them to

create a pool of money from which it can pay claims and finance the insurance company's

operations. Contrary to popular belief, the majority of the money that insurance companies make

comes directly from premiums paid, as money gained through investment of premiums can never,

in even the most ideal market conditions, vest enough money per year to pay out claims. Rates

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charged for life insurance increase with the insurer's age because, statistically, people are more

likely to die as they get older.

Given that adverse selection can have a negative impact on the insurer's financial situation,

the insurer investigates each proposed insured individual unless the policy is below a company-

established minimum amount, beginning with the application process. Group Insurancepolicies are

an exception.

This investigation and resulting evaluation of the risk is termed underwriting. LIFE and

lifestyle questions are asked. Certain responses or information received may merit further

investigation. Life insurance companies in the United States support the Medical Information

Bureau (MIB), which is a clearinghouse of information on persons who have applied for life

insurance with participating companies in the last seven years. As part of the application, the

insurer receives permission to obtain information from the proposed insured's physicians.

Underwriters will determine the purpose of insurance. The most common is to protect the

owner's family or financial interests in the event of the insurer's demise. Other purposes include

estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank

loans or buy-sell provisions of business agreements are another acceptable purpose.

Life insurance companies are never required by law to underwrite or to provide coverage to

anyone, with the exception of Civil Rights Act compliance requirements. Insurance companies

alone determine insurability, and some people, for their own LIFE or lifestyle reasons, are deemed

uninsurable. The policy can be declined (turned down) or rated. Rating increases the premiums to

provide for additional risks relative to the particular insured.

Many companies use four general LIFE categories for those evaluated for a life insurance

policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best is

reserved only for the lifeiest individuals in the general population. This means, for instance, that

the proposed insured has no adverse medical history, is not under medication for any condition,

and his family (immediate and extended) have no history of early cancer, diabetes, or other

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conditions. Preferred means that the proposed insured is currently under medication for a medical

condition and has a family history of particular illnesses. Most people are in the Standard category.

Profession, travel, and lifestyle factor into whether the proposed insured will be granted a policy,

and which category the insured falls. For example, a person who would otherwise be classified as

Preferred Best may be denied a policy if he or she travels to a high risk country. Underwriting

practices can vary from insurer to insurer which provide for more competitive offers in certain

circumstances.

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it pays the

claim. The normal minimum proof required is a death certificate and the insurer's claim form

completed, signed (and typically notarized). If the insured's death is suspicious and the policy

amount is large, the insurer may investigate the circumstances surrounding the death before

deciding whether it has an obligation to pay the claim.

Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over

time in regular recurring payments for either a specified period orfor a beneficiary's lifetime.

Insurance vs Assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In

general, in these jurisdictions "insurance" refers to providing cover for an event that might happen

(fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to

happen. "Insurance" is the generally accepted term, but people using this description are liable to

be corrected. In the United States both forms of coverage are called "insurance", principally due to

many companies offering both types of policy, and rather than refer to themselves using both

insurance and assurance titles, they instead use just one.

Types of Life Insurance

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Life insurance may be divided into two basic classes temporary and permanent or

following subclasses - term, universal, whole life and endowment life insurance.

Term Insurance

Term assurance provides life insurance coverage for a specified term of years in exchange

for a specifiedpremium. 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 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 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.

Level Term policy has the premium fixed for a period of time longer than a year. These

terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often used for long term

planning and asset management because premiums remain consistent year to year and can be

budgeted long term. At the end of the term, some policies contain a renewal or conversion option.

Guaranteed Renewal, 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. Some companies however do not guarantee renewal, and require proof of

insurability to mitigate their risk and decline renewing higher risk clients (for instance those that

may be terminal). Renewal that requires proof of insurability often includes a conversion options

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that allows the insured to convert the term program to a permanent one that the insurance company

makes available. This can force clients into a more expensive permanent program because of anti

selection if they need to continue coverage. Renewal and conversion options can be very important

when selecting a program.

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.

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 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 see below), 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

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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 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 and endowment.

Whole life coverage

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 disadvantages of wholelife are premium inflexibility, and the internal rate of return 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 only to 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.

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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

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

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

higher internal rate of return. There are several types of universal life insurance policies which

include "interest sensitive" (also known as "traditional fixed universal life insurance"), variable

universal life insurance, and equity indexed universal life insurance.

A universal life insurance policy includes a cash account but the cash decreases over time.

Premiums increase the cash account, but, the cost of interest increases each year so the cash

deteriorates over time. Interest is paid within the policy (credited) on the account at a rate specified

by the company, but then mortality charges and administrative costs are then charged against

(reduce) the cash account. The surrender value of the policy is the amount remaining in the cash

account less applicable surrender charges, if any. Universal Life does not work in a recession or

low interest rate environment.

Limited-pay

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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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. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax

shelters (creating modified endowments). These follow tax rules as annuities and IRAsdo.

Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15

years) or a specific age.

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 typically cover

any deaths resulting from LIFE problems or suicide. Because they only cover accidents, these

policies are much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment insurance", also

known as an AD&D policy. In an AD&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 and AD&D policies very rarely pay a benefit; either the cause of death is

not covered, or the coverage is not maintained after the accident until death occurs. To be aware of

what coverage they have, an insured should always review their policy for what it covers and what

it excludes. Often, it does not cover an insured who puts themselves at risk in activities such as:

parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also,

some insurers will exclude death and injury caused by proximate causes due to (but not limited to)

racing on wheels and mountaineering.

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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 a double indemnity coverage. In some

cases, some companies may even offer a triple indemnity cover

History Of Insurance Sector In India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu

(Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms

of pooling of resources that could be re-distributed in times of calamities such as fire, floods,

epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian

history has preserved the earliest traces of insurance in the form of marine trade loans and carriers

contracts. Insurance in India has evolved over time heavily drawing from other countries, England

in particular.

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870

saw the enactment of the British Insurance Act and in the last three decades of the nineteenthcentury, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance offices which did

good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London

Globe Insurance and the Indian offices were up for hard competition from the foreign companies

In 1914, the Government of India started publishing returns of Insurance Companies in

India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate

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life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government

to collect statistical information about both life and non-life business transacted in India by Indian

and foreign insurers including provident insurance societies.

In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation

was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for

effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were

a large number of insurance companies and the level of competition was high. There were also

allegations of unfair trade practices. The Government of India, therefore, decided to nationalize

insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and

Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16

non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC

had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the

consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a

legacy of British occupation. General Insurance in India has its roots in the establishment of Triton

Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the IndianMercantile Insurance Ltd was set up. This was the first company to transact all classes of general

insurance business. In 1968, the Insurance Act was amended to regulate investments and set

minimum solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalization) Act, general

insurance business was nationalized with effect from 1st January, 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the



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New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India

Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a

company in 1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending to nearly 200

years. The process of re-opening of the sector had begun in the early 1990s and the last decade and

more has seen it been opened up substantially. In 1993, the Government set up a committee under

the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for

reforms in the insurance sector.

The objective was to complement the reforms initiated in the financial sector. The

committee submitted its report in 1994 wherein, among other things, it recommended that the

private sector be permitted to enter the insurance industry. They stated that foreign companies are

allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring the

financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the

power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national re-

insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.



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The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together

with banking services, insurance services add about 7% to the countrys GDP. A well-developed

and evolved insurance sector is a boon for economic development as it provides long- term funds

for infrastructure development at the same time strengthening the risk taking ability of the

country.The insurance sector in India has came in a full circle from being an open competitive

market to nationalization and back to a 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

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.

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 provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,

with a capital contribution of Rs. 5 crore from the Government of India.

The Indian Insurance Industry



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S.No. Registration

Number

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 Limited

5 109 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 Limited

9 116 03.08.2001 BajajAllianz

10 117 06.08.2001 Metlife India Insurance Company Ltd.

11 133 04.09.2007 Future General India Life Insurance

Company Limited

There are 17 private Co. which are working in life insurance sector

1-Bajaj Allianz

2-ICICI Prudential

http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.metlife.co.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.metlife.co.in/


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3- HDFC Standard

4-SBI Life

5-Birla Sun life

6-Tata AIG life

7-Max New York Life

8-Aviva Life

9-Kotak Mahindra

10-ING Vysya

11-Reliance Life

12-Met Life

13-Sahara Life

14-Shriram Life

15-Bharti Axa Life

16- Life insurance corporation

17- Future General India Life Insurance

Indian Insurance Industry Forecast (2010-2011)

Life insurance market in India will likely reach around Rs 1683 Billion by the year 2009.

Changing consumer behavior, GDP growth rate, changing socio economic demography, and

natural calamities occurring from time to time will remain the key contributors in this growth. The

market is expected to grow at a CAGR of more than 200% YOY from the year 2006.



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Outstanding performance of SBI Life, ICICI Prudential, and LIC helped the Indian life

insurance industry in mopping up almost Rs 2,892 crore. On the other hand, Reliance Life, ING

Vysya, and Bajaj Allianz were amongst those insurers that came across a decline in their premium

collection over the review period, as per the data compiled by Insurance Regulatory &

Development

KeyPlayers

The key players in the industry are

1- Bajaj Allianz,

2- ING Vysya,

3- SBI Life,

4-Tata AIG Life,

5- HDFC Standard,

6- ICICI Prudential Life Insurance,

7- Birla Sun life,

8-Aviva Life Insurance,

9- Kotak Mahindra Old Mutual,

10- Max New York Life,

11- Met Life,

12- Sahara Life,



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13-LIC,

14- Royal Sundaram,

15- Tata-AIG General,

16-Reliance General,

17- IFFCO-Tokio,

18-ICICI-Lombard,

19- HDFC Chubb,

COMPANY PROFILE

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company,

formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines

the Tata Groups pre-eminent leadership position in India and AIGs global presence as the worlds

leading international insurance and financial services organization. The Tata Group holds 74 percent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG Life

provides insurance solutions to individuals and corporate. Tata AIG Life Insurance Company was

licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

Tata AIG General Insurance Company, which started its operation in India on Jan 22, 2001,

offers the complete range of insurance for automobile, home personal, accident, travel, energy,

marine, property and casualty, as well as several specialized financial lines.

Tata AIG Life Insurance Company Ltd. and Tata AIG General Insurance Company Ltd.

(collectively "Tata AIG") are joint venture companies, formed from the Tata Group and American

International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group

with AIG's international expertise and financial strength.



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VISION

To be the fastest growing Life Insurance Company in India, measured by annualized premium

growth, procuring persistent business, delivering first class customer service, adding shareholder

value in the coming year.

History of tata group

The TATA group is India's best-known industrial group in the private sector with a

turnover of around US $ 10.4 billion (equivalent to 2.4% of India's GDP).

It is India's most respected private business group. With 219000 employees across 94 major

companies, it is also India's largest employer in private market.

Founded by Jamsetji Tata in the 1860s, the Tata group's early years were inspired by the spirit

of nationalism. The Tata group pioneered several firsts in Indian industry: India's first private

sector steel mill, first private sector power utility, first luxury hotel chain and first international

airline, amongst others. In more recent times, the Tata group's pioneering spirit continues to be

showcased by companies like Tata Consultancy Services (TCS), today Asia's largest software and

services company, and Tata Engineering, the first car maker in a developing country to design and

produce a car from the ground up.

The Tata group has always sought to be a value-driven organization. These values continue

to direct the group's growth and businesses. The five core TATA values underpinning the way we

do business are:-



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Integrity

We must conduct our business fairly, with honesty and transparency. Everything we do

must stand the test of public scrutiny.

Understanding

We must be caring, show respect, compassion and humanity for our colleagues and

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

Excellence

We must constantly strive to achieve the highest possible standards in our day to day work

and in the quality of the goods and services we provide.

Unity

We must work cohesively with our colleagues across the group and with our customers and

partners around the world, building strong relationships based on tolerance, understanding and the

mutualcooperation.

Responsibility

We must continue to be responsible, sensitive to the countries, communities and

environments in which we work, always ensuring that what comes from the people goes back to

the people many times over.

Business Sectors

The TATA Group operates business in seven key industry sectors. The chart below

illustrates how, in percentage terms, TATA companies in each of these sectors contribute to the

overall makeup of the group. The table follows the group's sector wise financial performance.



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The Tata brand is recognized as the largest homegrown brand in India and the most

respected brand across consumer segments. The Tata Group's stable of brands also include many

national and some internationally renowned product and service brands, including Tata Indica,

Tata Indigo, Tata Safari, Taj(Hotels, Resorts & Palaces), Voltas, Tata Tea, Tata Sault, Titen,

Tanishq, Westside and the largest addition, Tata Indicom.

The Tata Group has always believed in returning wealth to the society it serves. Thus,nearly two-third of the equity of Tata sons, the Tata Group's promoter company, is held by

philanthropic trusts which have created a host of national institutes in community development,

education and research centers, hospitals and scientific and cultural establishments.

The trusts also give substantial annual grants and endowments to deserving individuals and

institution in the areas of education, LIFEcare and social upliftment.

By combining ethical values with business acumen, globalization with national interests and core

business with emerging ones, the Tata Group aims to be the largest and most respected global

brand from India whilst fulfilling its long-standing commitment to improving the quality of life of

its stakeholders.

TATA Group Chairmen till Date

J JamsetjiTata(1887-1904)

sir. Dorabji Tata (1904-1932)



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NawrojiSaklatvala(1932-1938)

JehangirRatanjiDadabhoyTata(1938-1991)

Ratan N. Tata(Since 1991 till date)

History of tata Aig( INDIA)

AIG India, the Indian arm of AIG, established its presence in India in 1994. AIG entered

India in 1945, prior to nationalization of the insurance sector, and had offices n several Indian

cities. On opening up of the insurance sector to private insurance company's in2000, AIG and the

Tata Group formed a Joint venture, Tata AIG.

AIG and its affiliate funds have invested approximately $450 m in private equity in India.

These direct investments have been made in telecommunication.

And toll roads & bridges in the e infrastructure sector. Besides, investments have also been

made in the manufacturing, technology, pharmaceuticals and retailing sector. AIG continues to

look with interest for made direct investment opportunities in these sectors and in new emerging

sectors like biotechnology, IT-enabled services etc



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Since 2001, AIG has built a strong insurance organization in the country, with 1,135

employees and over 36,000 agents (January31, 2006).Apart from insurance, AIG Companies also

manage investment funds that have invested some $425m in Indian companies .AIG recently

established a software company in India - AIG Systems Solutions (AIGSS).

PRODUCTS AND SERVICE

RAKSHA

(Pure Protection Plan)

Target audience:-

Aged between 18 and 50 year

Wanting to there loved ones from the financial consequence of an unfortunate event

Wanting to option of a flexible and convertible plan, should they want to include a savings

element in it?

Product features:-



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Raksha is a Tata AIG lifes cast effective plan. It helps provides financial protection to the

family. In case of death of insured, the sum assured is paid to the nominees.

1-Four term to choose from: Raksha is available in 4 terms- 10, 15, 20, and 25

2- Convertibility: This plan has an option to include a saving element into it. I can be converted

into any of Tata AIG lifes select endowment plan.

Product snapshot:

Term Raksha-10 Raksha-15 Raksha-20 Raksha-25

Entry age 18-50 18-45 18-40 18-35

Minimum Sum

assured

Rs. 500,000 Rs. 500,000 Rs. 500,000 Rs. 500,000

Minimum annual

premium

Rs.2,000 Rs.2,000 Rs.2,000 Rs.2,000

Payment mode: MONTHLY, QUATERLY, SEMI ANNUAL, ANNUAL

Guaranteed benefit: sum assured payable on death

RIDERS

RIDERS are very cost effective method to enhance the cover of a basic policy.

A riders is normally operational for the of the basic policy or lesser but never more then the

basic policy term

When the basic policy is cancelled, the riders are also cancelled.

Rider do not pay maturity benefits

The riders amount is called the Riders sum assured.

Rider premiums are charged separately (not through cancellation of units).



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Premium payment method will be as per the basic policy.

Riders continue while the policy is on PH. Rider premiums must be paid to keep the riders

in force during PH.

Existing policyholders can attach riders on policy anniversary.

Riders provide 5 additional benefits to the policy holder:-

Accidental Death Benefit(ADB) Accidental & Death & Dismemberment (ADD)(Long Scale)

Critical Illness (lumpsum benefit)

Waiver of Premium

Payor Benefit

Term rider

Accidental Death Benefit (ADB)

(Increase your risk protection at a very minimal cost)

In case of accidental death, the benefits payable are: Basic SA (less cumulative

partial withdrawals) or Fund Value, whichever is higher PLUS the ADB Sum

Assured

Accidental Death & Dismemberment (ADDL)



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In case of death resulting from an accident the benefits payable are: Basic SA (less

cumulative partial withdrawals) or Fund Value, whichever is higher PLUS ADDL

Sum Assured

In case of disability the ADDL SA will depend on the degree of loss suffered.

Note- ADB and ADDL cannot be added together

Double Indemnity

In case of death occurs due to accident while traveling as a fare paying

passenger: Double the Rider Sum Assured

Critical Illness (CI)

Rider SA payable under 6 critical Illnesses/Surgeries covered:-

1) Cancer

2) Stroke

3) Heart Attack

4) Coronary Bypass Graft Surgery

5) Kidney Failure

6) Major Organ Transplant

Waiver of Premium

Helps cover disability of the insured

If the insured is totally and permanently disabled, it is likely that he will not be

able to pay future premiums and policy may laps.

The waiver of premiums (WOP) rider waivers of all the future unpaid premiums

if the insured is totally and permanently disabled.

Term rider



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Providing additional death benefit ( pays lumpsum amount on death)

Policy term 5,10,15,20,25or until age 60 year

The term rider can be lesser than or equal to the length of term of the basic

policy, but can never more than it.

The term rider sum assured can be lesser than or equal to the SA of the basic

policy, but can never more than the SA of the basic policy.

Nirvana plus

(Retirement Policy)

Target audience:

Aged between 18 year and 45 year

Wanting a lump sum and regular pension after retirement.

Product feature:

Nirvana plus is Tata AIG lifes retirement plan. It helps you in ensuring a comfortable; hasslefree life and independent retire life.

1- Choose your retirement age: The plan lets you choose from amongst three retirement ages

55,58and 60 year. You pay a premium during your working life, with a premium payment

term of 15 year.

2- Guaranteed Additional: Guaranteed Addition of 2%* of the Sum assured in the First year

and Guaranteed Addition of 10%* of SA every 5 years through out the premium paying

term. This helps your maturity value to grow.

3- Bonuses: Non- guaranteed reversionary bonuses are added from the 6th policy anniversary

onwards. A terminal bonus is added once the policy has been inforce for 10 year these

bonuses helps money in compounding faster.

4- Additional benefit: The plan has a critical illness rider inbuilt for first 3 year. If you get

diagnosed with a covered critical illness and survive for a period of 30 days post diagnosis,

an amount of Rs.100, 000 will be paid for treatment



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5- Annuity PLUS lumpsum at maturity: On maturity the sum assured + Bonuses+guranteed

additional help gives a large lumpsum .33% of this amount can be commuted tax free for meeting

urgent expenses.

The balance amount can be used to purchase an annuity of your choice for giving you life long

pension payment.

Product snapshot:

18 year-40 year 18 year-43 year 18 year-45 year

Sum assured Rs.100,000 Rs.200,000 Rs.400,000

Minimum

annual

premium

Rs.2000 Rs.2000 Rs.2000

Payment mode- YLY, HLY, QLY, MLY

Tax benefit u/s-80CCC & section 10(10D

Mahalife gold

(Whole Life Plan)

Target audience:

1- Aged between 30 days and 60 years next birthday

2- Required money at regular interval.

3- Wanting to create a legacy for future generation.

4- Cover for life, but want to pay premium for a limited term.



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Product feature & Benefits

Mahalife gold is Tata AIG lifes premium whole life plan. It provides coverage till age 100

and gives regular income for life. The coverage is available for a premium payment term of 15 year

only. The plan only also allows the insured to take advantage of higher market interest rates

through cash dividend.

Mahalife Gold ensures that you are secured with regular income available for you through

out your life. This can be used for taking care of your house hold expenses / Loans / Retirement

OR you can treat this as regular funds available to you for a Systematic Investment which will give

you further appreciation.

You would have heard of Life Insurance Policies that give you cover till you retire and you

got to pay for it till you retire. What if I give you a plan that covers you for your life time & you

have to pay for only 15 years?

This is a very unique Plan in which 3 generations of your family can benefit. When you

take Mahalife Gold for your son, you get the benefit of Tax deductions while your son enjoys

guaranteed returns (survival benefit) through out his life. On his death, the death cover will be

passed on to your Grandchildren

1-Whole life cover:

The plan provides coverage till age 100. In case of death at any time, the full sum assured will be

paid to the nominees.

2-Limited premium payment term:

The insured has to pay premiums only for 15 year



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3-Yearly coupon payment:

From the 6th policy anniversary onwards, the insured start getting non-guaranteed cash

dividend, which depend on the performance of the company. From the 10th policy anniversary

onwards, the insured gets guaranteed annual coupon payment of 5% of the face value

4- Tax benefit u/s-80C and the payouts are tax free u/s 10(10D)

Product snapshot:

0(3

Minimum sum assured Rs.50, 0000

Maximum sum assured No limit

Payment mode YLY, HLY, QLY, MLY

Tax benefit u/s-80C and the payouts are tax free u/s 10(10D)

Unit Linked Insurance Plan

(ULIPs)

(Protection + Wealth Creation under a Single Plan

A policy, which provides for life insurance where the policy value at any time varies

according to the value of the underlying assets at the time.



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In another word we can say that a ULIP is a life insurance policy which provides a

combination of life insurance protection and investment. LIP is life insurance solution that

provides for the benefits of protection and flexibility in investment. The investment is denoted as

units and is represented by the value that it has attained called as Net Asset Value (NAV).

ULIP came into play in the 1960s and became very popular in Western Europe and

Americas.

The reason that is attributed to the wide spread popularity of ULIP is because of the

transparency and the flexibility which it offers.

As times progressed the plans were also successfully mapped along with life insurance need

to retirement planning. In todays times, ULIP provides solutions for insurance planning, financial

needs, financial planning for childrens future and retirement planning

ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The

plan is a one-stop solution providing:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against Death due to accident

Disability

Critical Illness

Surgeries

Liquidity

Tax planning



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ULIPs OPTION:-

Broadly speaking, most life insurance companies offer individuals 4 potion to choose from..

1-Aggressive / Growth fund

2-Balanced fund

3-Capital guaranteed fund

4- Debt fund

1-Aggressive / Growth fund:-



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Such fund investment in major portion of the premium in the equity market. The

Investment mandate, through largely the same, may differ slightly across various life insurance

companies. Some company invests 100% in equity market, some company 80% in equity market.

2- Balanced fund:-

A balanced fund invests the premium money in a portfolio, which consists of both equity as

well as debt instrument in varying portfolios. Balanced fund are ideal for individual who are

apprehensive of taking

3-Capital guaranteed fund:-

A few insurance company also offer ULIPs with a capital guarantee the return atleast the

premium that have been paid over the policy is tenure should the fund value fall lower than the

premium paid capital guarantee.

The safety of the capital guarantee stems from the fact that 70% of the premium more

money is invested in relatively safe debt instrument when moderate the risk of investing in stocksbut might lower potential returns.

4- Debt fund:-

These types of fund invest in debt instrument like government bond and AAA-rated

securities. Such fund are low risk in nature when company to their equity / balanced counterparts.

The return through tend to be lower and steadier than the equity balanced fund.

Organization structure



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CEO&MD

SGM - HRSGM- MARKETING & SALES SGM -

UALITY

MANAGER QC

SGM- FINANCE

ACCOUNTSMANAGER

SECTIONAL

HEAD

SENIOR

ACCOUNTANT

ASSISTANT

ACCOUNANT

ASSISTANT

MANAGER

SENIOR

ASSISTANT

JUNIOR

ASSISTANT

MANAGER

ASSISTANT

MANAGER

SENIOR HR

EXECUTIVE

JUNIOR HR

EXECUTIVE

MARKETINGMANAGER

ASSISTANT

MANAGER

MARKETING

EXECUTIVE

SALES

EXECUTIVE

COLLECTION

EXECUTIVE


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HUMAN RESOURCE DEPARTMENT

TATA AIG LIFE is having two types of employees direct and indirect. They are

recruited from employment exchanges. Except PF there is no other fringe benefit for

temporary employees. There are different types of fringe benefit for permanent employees.

All the service matters of the organization are under the control of this department .HR

Department is working under leadership.

Working period is from 10 am to 5 pm. Working days are from Monday to Saturday.

There are three shifts per day. These shifts are from 6.30 am to 2.30 pm, 2.30 pm to 10.30

pm, and 10.30 pm to 6.30 am.

SGM-HR

MANAGER-HR

ASSISTANT

JUNIOR HR

SENIOR HR


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Temporary recruitment is done through employment exchanges. The duration of

temporary employee is 180 days. For permanent recruitment they first give notification in

minimum three newspapers. From the approved applications, candidates are selected for written

tests. Those who pass the written test are called for interview. The company has both permanent

and temporary employees. Permanent recruitment is done by the head office.

Training

Training is given to the permanent, both off the job and on the job training is given. HR

department is in charge of employees providing training to the permanent employee Promotion

Promotions are of two types i.e. Seniority based promotion and performance based

promotion. Middle level employees are promoted on the basis of their seniority and top level

employees are promoted on the basis of performance.



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General

Manager

AssistantMarketing OfficerAssistant Marketing

Officer


Welfare Measure

TATA AIG has a welfare society. Most of the employees are the members of the welfare

society. The enrolment in the society is kept optional. There is a separate committee, chairman and

secretary for the welfare society. The members of the welfare society have to contribute an amount

of Rs.50 every month as a welfare fund. From this fund cash award is given to children of

employees who scored high mark in public examinations.

Moreover certain amount from the fund is given to the marriage of the concerned member,

marriage of the members children etc. .Certain percentage of the profit from the company is given

as ex-gratia to all the employees except to those employees who availed bonus. Employee should

present 240 days in a year to get full ex-gratia.Housing subsidy is also given to the employees.

Loan up to 2 lakhs and 1% subsidy is given to all the employees.

Employee state Insurance (ESI) is given to employees whose salary is less than 7500.

Medical allowance of Rs.100 is given to those employees who do not prefer ESI.

Annually employee can take leave up to 33 days out of which 12 days are regarded as

casual leave. If an employee is physically present for 246 days he can enter in to Departmental

Promotional Committee (DPC). For this minimum of 5 years service is essential

MARKETING DEPARTMENT



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Marketing

Marketing


Marketing is a system of integrated business activities designed to develop strategies and

plans so as to satisfy customer wants of selected market segments. A business organization exists

because of marketing. The success of business depends on how the marketing strategy is formed



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and implemented marketing keeps the business in close contact with its economic, political, social,

technological environment and informs.

The main objective of this dept. is to establish a system to review enquiry for submission of

quotation, follow up of the enquiry, obtain customer purchase order, review the order to ensure that

customer requirements are fully understood and also to ensure that concerned principals has the

capability to meet the requirement.

The marketing team conducts exhibition / survey market / making cold calls / identify

specific customer requirements and make personal visits for prospective potential customers and

identify enquiries.

Once the feasibility of the enquiry from is accepted the order from the customer end is

received, moving with the formalities of purchase order ( ID, order forwarding format, fill up of

customer segmentation form, advance etc.) the order is executed.

New business development and direct marketing

Suggest viable target clients and industries, sourcing relevant data as necessary

Approach potential clients through various channels, including cold calling and

direct mail campaigns

Use knowledge of the markets and the localisation industry to promote

introductions and sales

Participate in events that will promote the awareness of the company and its

credentials

Arrange and lead new business meetings, delivering sales presentation in a polished,

professional manner

Be familiar with the range of services and understand how to identify client

requirements that can be met by these services



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Work with the director and marketing team in the development of ideas for new services

and new markets for existing services

Proposals and order taking

Adopt a consultative approach in working with clients to establish requirements and

propose solutions, using technology to strengthen offering.

Work with operations teams to cost and develop proposals for large, complex projects

Oversee prompt production of day-to-day quotes for regular clients

Work with the managing director and operations teams to transition the responsibility for

day-to-day quoting over to the operations teams

Client retention

Maintain awareness of the company among existing prospects through periodic follow-up

calls.

Advertising

Analyse advertising opportunities and propose campaigns.

Negotiate pricing with publishers

Oversee copywriting and design of ads

Identify need for production of new marketing ELEMENTS and updates to existing

materials; oversee production

Database maintenance

Oversee day-to-day maintenance of the Goldmine client database, ensuring that new leads

are added in a timely manner and integrity of data is maintained through regular cleaning.Ensure

that colleagues at all levels are following prospect tracking systems



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The company website

Review existing online marketing strategy, suggest and implement improvements.

Ensure the companys the company website continues to rank on page 1 of all major search

engines for targeted keywords

Reporting

Review existing data collection systems, suggest and implement improvements

Collect data on clients, enquiries, conversions and the company website activity

Present monthly report to managing director, analysing past performance and

proposing future activities and direction

The direct marketing system enables the company to supply its products to its clients. Firms

give the order to the company through telephone or letters and the company would directly supply

the item as per their order. The customers are aware of the superior product quality. Here the

company directly deals with the customers. This is very much helpful to know the attitude of the

customers.

Details of Collection

Company does not provide any kind of trade discount. After the dispatch of the products

the company collects cheque. The collection of money is only done after 60 days credit period.

Methods of receiving orders

TATA AIG LIFE receives orders from customers and consignees. This may be through

letters, telephone, fax, E-mail etc. most of the orders are placed by telephone, this accounts for

90% of the total orders.



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Sales procedure

When the company receives an order, the manager checks it and consults with stores ledger

about the stock and quality respectively. If there is sufficient stock of best quality he forwards this

order to Director for approval. After approval, the manager takes necessary steps, for making

delivery of goods.

Advertisement

In the case of TATA AIG LIFE, in strict sense there is no advertisement. The only

advertisement is online advertisement.

Sales Promotion

TATA AIG LIFE has appointed sales executive for contacting the customers for sales

promotions. He collects orders from customers and submits it to the company and also undertakes

collection of debts.

Competition.

TATA AIG LIFE faces completion from the companies with in the states and out of the

states.there is severe completion from around 80 companies offering the same products. Even

though the company faces the competition by keeping the high quality and competitive rates and

also deals with customers with better terms and conditions.

Maketing research



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SGM-Finance

Manager (Finance)

Assistant

Sectional Head

Senior Accountant


Marketing Research is the systematic method of gathering, recording, objective, search and

analysing of valid and reliable information relating to the marketing of goods and services. Several

factors are contributed to the growth of marketing research. Those are:

To know the potential area of selling for the manufacturer, where his goods could be

marketed

To understand the buyer behaviour

Increasing the usage of computers has further contributed to the growth of marketing

research changes in the composition of population, particularly. The shift from rural to the urban

areas has widened the scope for the marketing of various types of goods and services in the urban

areas

FINANCE DEPARTMENT



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Assistant


An organization communicates its financial information to the users through financial

statements and reports. Financial statements contain summarized information of the organizations

financial affairs, organized systematically. These statements comprise the income statements or

profit and loss account and the position statement or the balance sheet.

To give a full view of the financial affairs of the undertaking it is also necessary to include

a statement of retained earnings, a statement of changes in the financial position and a few

schedules such as schedule of fixed assets and schedule of debtors.

Income Statement the profit and loss account sets out income as well as expenses of the

same period and after matching the two, the difference being the net profit or net loss, is

shown as the difference between the two sides of the account. Thus, the earning capacity

and the potential of an organization are reflected by its profit and loss account.

Position Statement otherwise known as the balance sheet displays the total restheirces of a

business and the owners and creditors equity in these restheirces. It indicates a statement of

affair of a business at a particular moment of time and thus it is static in nature.

Statement of Retained Earning also known, as the profit and loss appropriation account, is

generally a part of the profit and loss account. It shows how the profit of the business for



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the accounting period is appropriated towards reserve and dividend and how much of the

same is carried forwarded as retained earnings.

Statement of Changes in Financial Position also known as the fund flow statement

summarizes the changes in assets, liabilities and the owners equity between two balance

sheet dates. Thus, it is a statement of flows, i.e., it measures the changes that have been

taken place in the financial position of a firm between two balance sheet dates. It

summarizes the stheirces and uses of the funds obtained



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Organisational Study

QUALITY CONTROL DEPARTMENT:

Quality control department as the name suggests this department takes care of the

quality of insurance policies offered by the company. Quality control department plays an

important role in the company. Quality control department sees that every insurance which

has been sold should not be based on fake promises and should meet the requirement of

customers.

East Point College Of Higher Education. Page 48

General Manager

Manager (Quality

Assistant Manager

Junior Superintendent

Senior Assistant

Junior Assistant

Staff


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SWOT ANALYSIS

Strengths

1. Entire range of products for corporate and retail customers

2. Market segmentation and products for niche segment

3. Significant presence in Credit cards, Insurance, , Investment banking, Personal loans

and SME sector

4. 54 overseas offices spanning 28 countries

5. 21 banking and non-banking subsidiaries and associates

6. Over 50% of top corporate in India have strong relationships with Apollo.

7. Largest individual customer base in the country

8. Leading provider of financial services across retail and wholesale segments

Weaknesses

1. Constrained by the norms of public sector status

2. Large size has its impact on swiftness of response

3. Comparatively large number of employees

4. Inability to implement proper individual reward schemes to motivate and enhance

productivity due to industry wide implications

Opportunities

1. Improvement in the economic conditions

2. Increasing purchasing power of large number of middle class

3. Indias stature as leading IT power

4. Retail finance and insurance sector

5. Low penetration of credit cards



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Threats

1. Asset Quality

2. Interest Rate risk

3. Operations risk in view of increasing use of technology in day to day operations

4. Fleet-footed foreign banks and private banks

5. Pressure on margins



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Summary of findings

The highest % of respondents belongs to the age group between 31-40 years.

Majority of respondents earnings per month is Rs.10, 000 to 20,000.

47% of the people save out of their earnings to the extent of Rs. 2,000-4,000.

The highest % of the respondents preferred to invest their savings in deposit schemes.

The maximum % of people are ready to invest in life insurance.

LIC is having highest market share compare to other private life insurance players and

still LIC is the market leader in life insurance sector in India.

The maximum numbers of people give more preference to security in their

investments, because of this reason the people most preferred to invest in life

insurance policies.

According to this analysis we can find that the maximum number of people ready to

invest in money back plans and unit linked investment plans (ULIP) compare to other

plans.

The highest % of people giving more preference to tax benefits.

Majority of the investors preferred half yearly payments of premium.

The investors give more preference to family welfare plans.

The majority of people well aware of TATA AIG Insurance Company Limited



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SUGGESTION AND RECOMMENDATION

TO THE COMPANY The policy can be framed and communicated in such a way that policy should be

understandable

The TATA AIG Life Insurance Company Limited needs to advertise about the

company and their products through different advertisement channels to create

awareness.

The policy of TATA AIG has to be popularized. It could conduct seminars.

TATA AIG needs to improve its services

TATA AIG needs to come up with more number of plans or schemes

TATA AIG needs to introduce more unit linked plans

TATA AIG needs to enter in to the rural market

The TATA AIG Life Insurance Company Limited needs to improve their agent

network to approach the people to invest in their company through appointing

more agents.



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TATA AIG can try to give minimum allowances based on business made by the

agent.

TATA AIG should think of giving good bonuses at regular intervals to the top

achievers.

TATA AIG should give to the agents who have thorough knowledge about the

products of the company.

TO THE INVESTORS:

Investors should be aware of insurance policies and its future benefits.

The regularity of investment is most important. The systematic investment is one of

the best ways of savings because it makes investment a habit.

Investor should analyze his needs and wants accordingly he should choose the policy.

There are lots of agents and advisors to give awareness regarding insurance, so before

going to invest in insurance gather information and take investment decision.

Investors should be aware of IRDA, it is a body to regulate all insurance companies in

India. For IRDA MNC/Pvt ltd and Govt company is same. So in TATA AIG Pvt Ltd

insurance company also has the same merits.



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CONCLUSION

There has been a tectonic shift in advertising the insurance companies. Till 2 or 3

years back a typical Ad will showcase a small happy family enjoying their life. Then one

unfortunate Day the head of the family dies in an accident and the rest of the family is drawn

to rags. The ad ends up saying Insurance can help them against such calamities. People

bought the idea and started buying insurance. But there was a basic flaw in the ad. It tells the

consumers about the advantages of having Insurance but nothing about buying insurancefrom a particular insurance firm. So whoever casting such ad was helping the industry as a

whole but not their specific firm. Each ad speaks about how their firms offers can help you

instead of telling how insurance as a whole can help you.

In concluding part of this project it shows that advertisement is very much important

for any business. A huge amount is paid by companies against advertisement. There are many



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ways available to give advertisement onwhich this amount is paid this are TV, Newspaper,

Radio, Internet etc.

At the initial phase of a company it is important that they give emphasis on corporate

advertising because it helps in brand recall. At the later stage company can go for product

class advertisements. Well it is also found that during session that endorsement of celebrities

is helpful in ad recall. But giving advertisement in any type of media is not the only medium;

there are many other ways also like social service, by way of educating people.

Especially for Insurance companies if they want to capture rural market then they

have to approach in different way. In my opinion rural market can only been captured if we

reaches to there heart. And this can be happen only if we solve there basic problem.

BIBLIOGRAPHY

P SubbaRao,Organizational Behaviour, HPH

Dipak Kumar Bhattacharya, Research Methodology, EB

Shashi K Gupta, Financial Management, Kalyani Publisher

The Hindu Business Line,MarketReasearch In Insurance.

K Aswthappa,Human Resource Management ,HPH

Gagandeep Sharma, Production and Operations Management, Kalyani Publisher

Websites

www.insuremagic.com



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www.indiainfoline.com

www.bimaonline.com

www.expressindia.com

www.responsiveservice.com

www.agencyfaqs.com

www.knowledgedigest.com

www.google.com

www.wikipedia.com

www.apolloTATAinsurance.com
http://www.indiainfoline.com/http://www.google.com/http://www.wikipedia.com/http://www.indiainfoline.com/http://www.google.com/http://www.wikipedia.com/

Documents

Organisational Study at Tata Aig (2)FINAL