31426238 Insurance Project

8/10/2019 31426238 Insurance Project

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CH APTER 1

INTRODUCTOIN

1



1.1 INTRODUCTION TO THE STUDY

Ever yone is exposed to var ious r iss. !utur e is ver y un"er tain# $ut t%er e is &ay to pr ote"t

one's ( a)i*y and )ae one's "%i*dr en's ( utur e sa( e. +i( e Insur an"e "o)panies %e*p us to

ensur e t%at our ( a)i*y's ( utur e is not ,ust se"ur e $ut a*so pr osper ous.

+i( e Insur an"e is par ti"u*ar *y i)por tant i( you ar e t%e so*e $r ead&inner ( or your ( a)i*y.

T%e *oss o( you and your in"o)e "ou*d devastate your ( a)i*y. +i( e insur an"e &i** ensur e

t%at i( anyt%in- %appens to you# your *oved ones &i** $e a$*e to )ana-e ( inan"ia**y.

T%is study tit*ed .Study o( Consu)er s Per "eption a$out +i( e Insur an"e Po*i"ies/ ena$*es

t%e +i( e Insur an"e Co)panies to under stand %o& "onsu)er 's per "eption di(( er s ( r o)

per son to per son. Ho& a "onsu)er se*e"ts# or -ani0es and inter pr ets t%e ser vi"e ua*ity

and t%e pr odu"t ua*ity o( di(( er ent +i( e Insur an"e Po*i"ies# o(( er ed $y var ious +i( e

Insur an"e Co)panies.

Insur an"e is a too* $y &%i"% ( ata*ities o( a s)a** nu)$er ar e "o)pensated out o(

( unds 2pr e)iu) pay)ent3 "o**e"ted ( r o) p*enteous. Insur an"e "o)panies pay $a" ( or

( inan"ia* *osses ar isin- out o( o""urr en"e o( insur ed events e.-. in per sona* a""ident

po*i"y deat% due to a""ident# in ( ir e po*i"y t%e insur ed events ar e ( ir e and ot%er a**ied

per i*s *ie r iot and str ie# exp*osion et". %en"e insur an"e sa( e-uar d a-ainst un"er tainties.

It pr ovides ( inan"ia* r e"o)pense ( or *osses su(( er ed due to in"ident o( unanti"ipated

events# insur ed &it% in po*i"y o( insur an"e. 4or eover # t%r ou-% a nu)$er o( a"ts o(

par *ia)ent# spe"i( i" types o( insur an"e ar e *e-a**y en( or "ed in our "ountr y e.-. t%ir d par ty

insur an"e under )otor ve%i"*es A"t# pu$*i" *ia$i*ity insur an"e ( or %and*er s o( %a0ar dous

su$stan"es under envir on)ent pr ote"tion A"t. Et".

5



6H AT IS INSUR ANCE

It is a "o))on*y a"no&*ed-ed p%eno)enon t%at t%er e ar e "ount*ess r iss in ever y

sp%er e o( *i( e .( or pr oper ty# t%er e ar e ( ir e r is7 ( or s%ip)ent o( -oods. T%er e ar e per i*s o(

sea7 ( or %u)an *i( e t%er e ar e r is o( deat% or disa$i*ity7 and so on .t%e "%an"es o(

o""urr en"es o( t%e events "ausin- *osses ar e uite un"er tain $e"ause t%ese )ay or )ay

not tae p*a"e. T%er e( or e# &it% t%is vie& in )ind# peop*e ( a"in- "o))on r iss "o)e

to-et%er and )ae t%eir s)a** "ontr i$ution to t%e "o))on ( und. 6%i*e it )ay not $e

possi$*e to te** in advan"e# &%i"% per son &i** su(( er t%e *osses# it is possi$*e to &or out

%o& )any per sons on an aver a-e out o( t%e -r oup# )ay su(( er *osses. 6%en r is o""ur s#

t%e *oss is )ade -ood out o( t%e "o))on ( und .in t%is &ay ea"% and ever y one s%ar es t%e

r is .in ( a"t t%ey s%ar e t%e *oss $y pay)ent o( pr e)iu)# &%i"% is "a*"u*ated on t%e

*ie*i%ood o( *oss .in o*den ti)e# t%e "ontr i$ution )ae t%e a$ove8stated notion o(

insur an"e

DE!INITION O! INSUR ANCE

Insur an"e %as $een de( ined to $e t%at in# &%i"% a su) o( )oney as a pr e)iu) is

paid $y t%e insur ed in "onsider ation o( t%e insur er 's $ear in-s t%e r is o( payin- a *ar -e

su) upon a -iven "ontin-en"y. T%e insur an"e t%us is a "ontr a"t &%er e$y9

a. Cer tain su)# ter )ed as pr e)iu)# is "%ar -ed in "onsider ation#

$. A-ainst t%e said "onsider ation# a *ar -e a)ount is -uar anteed to $e paid $y

t%e insur er &%o r e"eived t%e pr e)iu)#

". T%e "o)pensation &i** $e )ade in "er tain de( inite su)# i.e.# t%e *oss or t%e

po*i"y a)ount &%i"% ever )ay $e# and

d. T%e pay)ent is )ade on*y upon a "ontin-en"y

4or e spe"i( i"a**y# insur an"e )ay $e de( ined as a "onta"t $et&een t&o par ties# &%er ein

one par ty 2t%e insur er3 a-r ees to pay to t%e ot%er par ty 2t%e insur ed3 or t%e $ene( i"iar y# a

"er tain su) upon a -iven "ontin-en"y 2t%e r is3 a-ainst &%i"% insur an"e is r euir ed.

:



TYPES O! INSUR ANCE

Insur an"e o""upies an i)por tant p*a"e in t%e )oder n &or *d $e"ause o( t%e r is# &%i"%

"an $e insur ed# in nu)$er and extent o&in- to t%e -r o&in- "o)p*exity o( pr esent day

e"ono)i" syste). T%e di(( er ent type o( insur an"e %ave "o)e a$out $y pr a"ti"e &it%in

insur an"e "o)panies# and $y t%e in( *uen"e o( *e-is*ation "ontr o**in- t%e tr ansa"tin- o(

insur an"e $usiness# $r oad*y# insur an"e )ay $e "*assi( ied into t%e ( o**o&in- "ate-or ies9

1. C*assi( i"ation ( r o) $usiness point o( vie&

a3 +i( e insur an"e# and

$3 ;ener a* insur an"e

5. C*assi( i"ation on t%e $asis o( natur e o( insur an"e

a3 +i( e insur an"e

$3 !ir e insur an"e

"3 4ar ine insur an"e

d3 So"ia* insur an"e# and

e3 4is"e**aneous insur an"e

:. C*assi( i"ation ( r o) r is point o( vie&

a3 Per sona* insur an"e

$3 Pr oper ty insur an"e

"3 +ia$i*ity insur an"e

d3 !ide*ity -ener a* insur an"e

<



THE I4PORTANCE O! INSUR ANCE

Insur an"e $ene( its so"iety $y a**o&in- individua*s to s%ar e t%e r iss ( a"ed $y )any

peop*e. =ut it a*so ser ves )any ot%er i)por tant e"ono)i" and so"ieta* ( un"tions. =e"ause

insur an"e is avai*a$*e and a(( or da$*e# $ans "an )ae *oans &it% t%e assur an"e t%at t%e

*oan's "o**ater a* 2pr oper ty t%at "an $e taen as pay)ent i( a *oan -oes unpaid3 is "over ed

a-ainst da)a-e. T%is in"r eased avai*a$i*ity o( "r edit %e*ps peop*e $uy %o)es and "ar s.

Insur an"e a*so pr ovides t%e "apita* t%at "o))unities need to ui"*y r e$ui*d and r e"over

e"ono)i"a**y ( r o) natur a* disaster s# su"% as tor nadoes or %urr i"anes.

Insur an"e itse*( %as $e"o)e a si-ni( i"ant e"ono)i" ( or "e in )ost industr ia*i0ed

"ountr ies. E)p*oyer s $uy insur an"e to "over t%eir e)p*oyees a-ainst &or 8r e*ated

in ,ur ies and %ea*t% pr o$*e)s. =usinesses a*so insur e t%eir pr oper ty# in"*udin- te"%no*o-y

used in pr odu"tion# a-ainst da)a-e and t%e( t. =e"ause it )aes $usiness oper ations sa( er #

insur an"e en"our a-es $usinesses to )ae e"ono)i" tr ansa"tions# &%i"% $ene( its t%e

e"ono)ies o( "ountr ies. In addition# )i**ions o( peop*e &or ( or insur an"e "o)panies and

r e*ated $usinesses. In 1>>? )or e t%an 5.< )i**ion peop*e &or ed in t%e insur an"e industr y

in t%e United States and Canada. Insur an"e as an invest)ent t%at o(( er s a *ot )or e in

ter )s o( r etur ns# r is "over @ as a*so t%at tax "on"essions @ added $onuses

Not a** e(( e"ts o( insur an"e ar e positive ones. T%e possi$i*ity o( ear nin- insur an"e

pay)ents )otivates so)e peop*e to atte)pt to "ause da)a-e or *osses. 6it%out t%e

possi$i*ity o( "o**e"tin- insur an"e $ene( its# ( or instan"e# no one &ou*d t%in o( ar son# t%e

&i**( u* destr u"tion o( pr oper ty $y ( ir e# as a potentia* sour "e o( )oney.

A



THE INSUR ANCE INDUSTRY TOD AY

Sin"e t%e 1>Bs# t%e insur an"e $usiness %as -r o&n dr a)ati"a**y and under -one

tr e)endous "%an-es. As a r esu*t o( t%e der e-u*ation o( ( inan"ia* ser vi"es $usinesses

in"*udin- insur an"e# $anin-# and se"ur ities tr adin-t%e r o*es# pr odu"ts# and ser vi"es o(

t%ese ( or )er *y distin"t $usinesses %ave $e"o)e $*urr ed. !or instan"e# "iti0ens in t%e U.S.

state o( Ca*i( or nia voted in 1> to a**o& $ans to se** insur an"e in t%at state. In Canada#

$ans )ay a*so soon $e a**o&ed to se** insur an"e.

Advan"es in "o))uni"ations te"%no*o-y %ave a*so a**o&ed tr aditiona**y

distin"t ( inan"ia* $usinesses to eep instantaneous tr a" o( deve*op)ents in ot%er

$usinesses and "o)pete ( or so)e o( t%e sa)e "usto)er s. So)e insur an"e "o)panies no&

o(( er deposit a""ounts and )or t-a-es. In t%e United States# *i( e insur an"e "o)panies no&

se** )or e pension p*ans and ot%er asset )ana-e)ent ser vi"es t%an t%ey do "onventiona*

*i( e insur an"e.

Deve*op)ents in "o)puter te"%no*o-y t%at %ave -iven insur an"e pr ovider s

t%e a$i*ity to ui"*y a""ess and pr o"ess in( or )ation %ave a**o&ed t%e) to "usto)8desi-n

po*i"ies to ( it t%e needs o( individua* "usto)er s. =ut t%e in"r easin- "o)p*exity o( po*i"ies

%as

a*so )

a

de so)

e as

pe"

ts o( $uyin-

a

nd se**inin

sur

a

n"e

)or e di(( i

"u*t.

In addition# i)pr ove)ents in -eo*o-i"a* and )eteor o*o-i"a* te"%no*o-y %ave t%e

potentia* to "%an-e t%e &ay pr oper ty insur er s "a*"u*ate r iss o( da)a-e. !or exa)p*e# as

s"ientists i)pr ove t%eir a$i*ities to pr edi"t sever e &eat%er patter ns# su"% as %urr i"anes#

and -eo*o-i"a* distur $an"es# su"% as ear t%uaes# insur er s )ay "%an-e %o& t%ey pr ovide

pr ote"tion a-ainst *osses ( r o) su"% events

?



EFO+UTION O! INSUR ANCE IN INDI A

T%e )ar ine insur an"e is t%e o*dest ( or ) o( insur an"e. I( &e tr a"e Indian %istor y

t%er e ar e eviden"e t%at )ar ine insur an"e &as pr a"ti"ed %er e a$out t%r ee t%ousand year s

a-o. T%e "ode o( 4anu indi"ates t%at t%er e &as t%e pr a"ti"e o( )ar ine insur an"e "arr ied

out $y t%e tr ader s in India &it% t%ose o( Sr i*ana# E-ypt and ;r ee"e .it is &onder ( u* to see

t%at Indians %ad even anti"ipated t%e do"tr ine o( aver a-e and "ontr i$ution. !r i-%t &as

( ixed a""or din- to season and &as t%en ver y )u"% at t%e )er "y o( t%e &ind and ot%er

e*e)ents. Tr ave*er s $y sea and *and &er e ver y )u"% exposed to t%e r is o( *osin- t%eir

vesse*s and )er "%andise $e"ause o( pir a"y on open seas and %i-%&ay r o$$er y o(

"ar avans &as ver y "o))on. T%e pr a"ti"e o( insur an"e &as ver y "o))on dur in- t%e r u*e

o( A$ar to Aur

an-

0e$# $ut t%

e n

atur

e and

"ov

er a-

e o( t%

e in

sur

an

"e in t%i

s p

er iod i

s not

&e** no&n. It &as t%e =r itis% insur er &%o intr odu"ed -ener a* insur an"e in India in t%e

)oder n ( or ). T%e =r itis%er s opened -ener a* insur an"e in India ar ound t%e year 1B .t%e

( ir st "o)pany no&n as t%e sun insur an"e o(( i"e &as set up in Ca*"utta in t%e year 1B1.

T%is &as ( o**o&ed $y sever a* insur an"e "o)panies *ie +ondon assur an"e and r oya*

ex"%an-e assur an"e 21B53# P%oenix Assur an"e Co)pany 21B53. Et". ;ener a* insur an"e

$usiness in t%e "ountr y &as nationa*i0ed &it% e(( e"t ( r o) 1st Ganuar y 1>B: $y t%e

;ener a* Insur an"e =usiness 2Nationa*i0ation3 A"t# 1>B5. 4or e t%an 1 non8*i( e

insur an"e "o)panies in"*udin- $r an"%es o( ( or ei-n "o)panies oper atin- &it%in t%e

"ountr y &er e a)a*-a)ated and -r ouped into ( our "o)panies# vi0.# t%e Nationa* Insur an"e

Co)pany +td.# t%e Ne& India Assur an"e Co)pany +td.# t%e Or ienta* Insur an"e Co)pany

+td.# and t%e United India Insur an"e Co)pany +td. &it% %ead o(( i"es at Ca*"utta#

=o)$ay# Ne& De*%i and 4adr as# r espe"tive*y.

B



+i( e insur an"e in t%e "urr ent ( or ) "a)e in India ( r o) united in-do)

&it% t%e esta$*is%)ent o( a =r itis% ( ir )# or ienta* *i( e assur an"e "o)pany in 11 ( o**o&ed

$y =o)$ay *i( e assur an"e "o)pany in 15:# t%e )adr as euita$*e *i( e insur an"e so"iety

in 15> and or ienta* *i( e assur an"e "o)pany in 1B<.pr ior to 1B1# Indian *ives &er e

tr eated as su$ standar d and "%ar -ed an extr a pr e)iu) o( 1A to 5. =o)$ay )utua*

*i( e assur an"e so"iety# an Indian insur er t%at "a)e in to existen"e in 1B1# &as t%e ( ir st to

"over Indian *ives at nor )a* r ates. T%e Indian insur an"e "o)pany A"t 1>5: &as ena"ted

inter a*ia# to ena$*e t%e -over n)ent to "o**e"t statisti"a* in( or )ation a$out *i( e and non8

*i( e insur an"e $usiness tr ansa"ted in India $y Indian and ( or ei-n insur er # in"*udin- t%e

pr ovident insur an"e so"ieties.

T%e ( ir

st %

a*( o( t%

e 5

t% "e

ntur y )ar

ed $y t&o &or *d &

ar # t%

e adv

er se

a((

e"ts

o( t%e 6or *d 6ar I and 6or *d 6ar II on t%e e"ono)y o( India# and in $et&een t%e) t%e

per iod o( &or *d &ide e"ono)i" "r ises tr i--er ed $y t%e ;r eat depr ession. T%e ( ir st %a*( o(

t%e 5t% "entur y &as a*so )ar ed $y str u--*es ( or India's independen"e. T%e a--r e-ate

e(( e"t o( t%ese events *ed to a %i-% r ate o( $anr upt"ies and *iuidation o( *i( e insur an"e

"o)panies in India. T%is %ad adver se*y a(( e"ted t%e ( ait% o( t%e -ener a* pu$*i" in t%e

uti*ity o( o$tainin- *i( e "over

In t%is $a"-r ound# t%e Par *ia)ent o( India passed t%e +i( e Insur an"e o( India A"t on

1>t% Gune 1>A?# and t%e +i( e Insur an"e Cor por ation o( India &as "r eated on 1st

Septe)$er # 1>A?# $y "onso*idatin- t%e *i( e insur an"e $usiness o( 5<A pr ivate *i( e insur er s

and ot%er entities o(( er in- *i( e insur an"e ser vi"es.



Sin"e 1>B5# t%e insur an"e se"tor %as $een tota**y under t%e "ontr o* o(

-over n)ent o( India t%r ou-% +IC and ;IC and its su$sidiar ies. As a r esu*t# r evenue o(

$ot% o( t%e) in"r eased in t%e *ast year s .t%e a)ount o( savin-s poo*ed $y +IC in"r eased

( r o) Rs.5B< "r or es in 1>B< to Rs .AB?B in 1>>< &it% an annua* -r o&t% r ate o( 1?.A:

.si)i*ar *y pr e)iu) under&r itten $y ;IC r ose ( r o) 5 "r or es in 1>: to B?<B "r or es in

1>> s%o&inan annua* -r o&t% r ate o( 5A.1.

Despite in"r ease in pr e)iu) "o**e"ted $y $ot% +IC and ;IC t%eir &er e ine(( i"ien"y

and r ed tapeisu) "r eeped in to t%e insur an"e se"tor . Apar t ( r o) t%at a )a ,or po*i"y s%i( t

$y t%e Nar asi)%a Rau -over n)ent dur in- 1>>'s.t%e Indian e"ono)y opened ( or ( or ei-n

"o)petition .In t%is $a"-r ound T%e -over n)ent o( India in 1>>: %ad set8up a %i-%

po&er ed

"o))itt

ee $y R.N 4

a*%ot%r

a #( or )

er -ov

er nor r

eser v

e $

an o( Indi

a# to

exa)ine t%e str u"tur e o( Indian insur an"e se"tor and r e"o))ended "%an-es to )ae it

)or e e(( i"ient and "o)petitive eepin- in vie& str u"tur a* "%an-es in ot%er par t o( t%e

( inan"ia* syste) o( t%e "ountr y.

Insur an"e se"tor %as $een opened up ( or "o)petition ( r o) Indian pr ivate insur an"e

"o)panies &it% t%e ena"t)ent o( Insur an"e Re-u*ator y and Deve*op)ent Aut%or ity A"t#

1>>> 2IRD A A"t3. As per t%e pr ovisions o( IRD A A"t# 1>>># Insur an"e Re-u*ator y and

Deve*op)ent Aut%or ity 2IRD A3 &as esta$*is%ed on 1>t% Apr i* 5 to pr ote"t t%e

inter ests o( %o*der o( insur an"e po*i"y and to r e-u*ate# pr o)ote and ensur e or der *y -r o&t%

o( t%e insur an"e industr y. IRD A A"t 1>>> paved t%e &ay ( or t%e entr y o( pr ivate p*ayer s

into t%e insur an"e )ar et# &%i"% &as %it%er to t%e ex"*usive pr ivi*e-e o( pu$*i" se"tor

insur an"e "o)panies "or por ations.

>



EFO+UTION O! INSUR ANCE OR; ANIJATION

6it% a vie& to ser ve t%e so"iety# t%e insur an"e or -ani0ations %ave $een deve*oped

in di(( er ent ( or )s &it% innovation o( insur an"e pr a"ti"e ( or so"ia* &e*( ar e and

deve*op)ent7 so)e o( t%ese ( or )s ar e out*ined %er e.

a3 Se*( 8insur an"e

T%e arr an-e)ent in &%i"% an individua* or "on"er n sets up a pr ivate ( und to )eet

t%e ( utur e r is. I( so)e *osses %appened in t%e ( utur e t%e ( ir ) )eets t%e *oss out o( t%e

( und. 6%i*e it )ay $e "a**ed Kse*( insur an"e' it is not a sin-*e )atter o( ( a"t# insur an"e at

a** $e"ause t%er e is no %ed-e# no s%i( tin-# or distr i$utin- t%e $ur den o( r is a)on- *ar -er

Per sons. It is )er e*y a pr ovision to )eetin- t%e un( or eseen event. Her e t%e insur ed

$e"o)e t%e insur er ( or t%e par ti"u*ar r is. =ut it "an $e e(( e"tive*y &or ed on*y &%en

t%er e is &ide distr i$ution o( r iss su$ ,e"ted t%e sa)e %a0ar d.

$3 Par tner s%ip

A par tner s%ip ( ir ) )ay a*so "arr y on t%e insur an"e $usiness ( or t%e sae o( pr o( it. Sin"e

it is not an entity distin"t ( r o) t%e per sons "o)pr isin- it# t%e per sona* *ia$i*ity o( par tner s

in r espe"t to t%e par tner s%ip de$ts is un*i)ited. In "ase o( %u-e *oss t%e par tner s )ay%ave to pay ( r o) t%eir o&n per sona* ( unds and it &i** not $e pr o( ita$*e to t%e) to star ts

insur an"e $usiness .in t%e ear *y per iod $e( or e t%e advent o( ,oint sto" "o)panies )any

insur an"e under tain-s &er e par tner s%ip ( ir )s or unin"or por ated "o)panies

"3 Goint sto" "o)panies

T%e ,oint sto" "o)panies ar e t%ose# &%i"% ar e or -ani0ed $y t%e s%ar e%o*der s &%o

su$s"r i$e t%e ne"essar y "apita* to star t t%e $usiness. T%ese ar e ( or )ed ( or ear nin- pr o( its

( or t%e sto"%o*der s &%o ar e t%e r ea* o&ner s o( t%e "o)panies. T%e )ana-e)ent o( a

"o)pany is entr usted to a $oar d o( dir e"tor s &%o is e*e"ted $y t%e s%ar e%o*der s ( r o)

a)on-st t%e)se*ves. T%e "o)pany "an oper ate insur an"e $usiness and po*i"y%o*der s

%ave not%in- to do &it% t%e )ana-e)ent o( t%e "on"er n. =ut in *i( e insur an"e it is t%e

pr a"ti"e to s%ar e "er tain por tion o( pr o( it a)on- t%e "er tain po*i"y%o*der s.

1



d3 4utua* ( und "o)panies

T%e )utua* ( und "o)panies ar e "o8 oper ative asso"iation ( or )ed ( or t%e

pur pose o( e(( e"tin- insur an"e on t%e pr oper ty o( its )e)$er s. T%e po*i"y%o*der s ar e

t%e)se*ves t%e s%ar e%o*der s o( t%e "o)panies ea"% )e)$er is insur ed as &e** as insur ed.

T%ey %ave po&er to par ti"ipate in )ana-e)ent and in t%e pr o( it s%ar in- to t%e ( u** extent.

6%enever t%e in"o)e is )or e t%an t%e expenses and "*ai)s# it is a""u)u*ated I t%e ( or )

o( savin- and is entit*ed in r edu"in- t%e r ate o( pr e)iu). Sin"e t%e insur ed ar e insur er s

a*so# t%ey a*&ays tr y to r edu"e t%e )ana-e)ent expenses and to eep t%e $usiness at

sound *eve*.

e3 Co8oper ative insur an"e or -ani0ations

Cooper ative insur an"e or -ani0ations ar e t%ose "on"er ns# &%i"% ar e

in"or por ated and r e-ister ed under Indian "ooper ative so"ieties A"t. T%e "on"er ns ar e a*so

"a**ed K"o oper ative insur an"e so"ieties' t%ese so"ieties *ie )utua* ( und "o)panies ar e

non pr o( it or -ani0ation .t%e ai) is to pr ovide insur an"e pr ote"tion to its )e)$er s at t%e

*o&est r easona$*e net "ost .t%e Indian insur an"e A"t. 1>:# %as pr ovided spe"ia*

pr ovisions ( or t%e "o8oper ative insur an"e so"ieties# $ut a( ter nationa*i0ation t%e so"ieties

%ave "eased to exist.

( 3 +*oyd's Asso"iation

+*oyd's asso"iation is one o( t%e -r eatest insur an"e institutions in t%e &or *d.

Tain- its na)e ( r o) t%e "o(( ee %ouse +*oyd &%er e under&r iter s asse)$*ed to tr ansa"t

$usiness and pi"8up ne&s. T%e or -ani0ation tr a"es its or i-ins to t%e *atter par t o( t%e

seventeent% "entur y .so it is t%e o*dest insur an"e or -ani0ation in existin- ( or ) in t%e

&or *d. In 1B1#+*oyds A"t &as passed in"or por atin- t%e )e)$er s o( t%e asso"iation into

a sin-*e "or por ate $ody &it% per petua* su""ession and a "or por ate sea* .t%e po&er s o(

+*oyds "or por ation &er e extended ( r o) t%e $usiness o( )ar ine insur an"e to t%e ot%er

insur an"e and -uar antee $usiness. T%e +*oyds Asso"iation a*so pu$*is%es# +*oyds *ist and

r e-ister o( s%ippin- ( or t%e in( or )ation o( insur in- pu$*i" and t%e insur er s

11



-3 State Insur an"e

T%e -over n)ent o( a nation# so)e ti)es# o&ns t%e insur an"e and r uns t%e

$usiness ( or t%e $ene( it o( t%e pu$*i". T%e sate insur an"e is de( ined as t%at insur an"e

&%i"% is under pu$*i" se"tor . In =r a0i*# Gapan and 4exi"o# t%e insur an"e ar e *ar -e*y

nationa*i0ed. Pr evious*y# t%e state under too on*y t%ose insur an"es# &%i"% &er e r e-ar ded

as vita* ( or t%e nationa* inter est.

INNSSUURR A ANCENCE SSEECCTTOROR RE!RE!OORR44SS

Havin- *ooed at t%e insur an"e se"tor # t%e e(( or ts )ade $y t%e -over n)ent to

)ae t%e industr y )or e dyna)i" and "usto)er ( r iend*y. To $e-in &it%# t%e 4a*%otr a

"o))ittee &as set up &it% t%e o$ ,e"tive o( su--estin- "%an-es t%at &ou*d a"%ieve t%e

)u"% r euir ed dyna)is).

TT%%ee 44aa*%%ootr r aa CCoo))))itteeee RReeppoor r t

In 1>>:# 4a*%otr a Co))ittee# %eaded $y ( or )er !inan"e Se"r etar y and R=I

;over nor R. N. 4a*%otr a# &as ( or )ed to eva*uate t%e Indian insur an"e industr y and

r e"o))end its ( utur e dir e"tion. In 1>><# t%e "o))ittee su$)itted t%e r epor t and -ave t%e

( o**o&in- r e"o))endations9

SStr r uu""tuur r ee

;over n)ent stae in t%e insur an"e Co)panies to $e $r ou-%t do&n to A

;over n)ent s%ou*d tae over t%e %o*din-s o( ;IC and its su$sidiar ies so t%at t%ese

su$sidia

r ies

"an

a"

tas

independen

t"o

r po

r a

tions

A** t%e insur an"e "o)panies s%ou*d $e -iven -r eater ( r eedo) to oper ate

15



CCoo)p)peetitioonn

Pr ivate Co)panies &it% a )ini)u) paid up "apita* o( Rs.1$n s%ou*d $e a**o&ed to enter

t%e industr y

No Co)pany s%ou*d dea* in $ot% +i( e and ;ener a* Insur an"e t%r ou-% a sin-*e entity

!or ei-n "o)panies )ay $e a**o&ed to enter t%e industr y in "o**a$or ation &it% t%e

do)esti" "o)panies.

Posta* +i( e Insur an"e s%ou*d $e a**o&ed to oper ate in t%e r ur a* )ar et.

On*y one State +eve* +i( e Insur an"e Co)pany s%ou*d $e a**o&ed to oper ate in ea"% stat

RRee--uu*aatoor r yy ==ooddyy

T%e Insur an"e A"t s%ou*d $e "%an-ed.

An Insur an"e Re-u*ator y $ody s%ou*d $e set up.

Contr o**er o( Insur an"e 2Curr ent*y a par t ( r o) t%e !inan"e 4inistr y3

Innvveest))eennts

4andator y Invest)ents o( +IC +i( e !und in -over n)ent se"ur ities to $e r edu"ed ( r o)

BA to A.

;IC and its su$sidiar ies ar e not to %o*d )or e t%an A in any "o)pany 2T%er e "urr ent

%o*din-s to $e $r ou-%t do&n to t%is *eve* over a per iod o( ti)e3.

CuCust

oo))

eer r

SSeer r

vvi""ee

+IC s%ou*d pay inter est on de*ays in pay)ents $eyond : days.

Insur an"e "o)panies )ust $e en"our a-ed to set up unit *ined pension p*ans.

Co)puter i0ation o( oper ations and updatin- o( te"%no*o-y to $e "arr ied out in t%e

insur an"e industr y.

Over a**# t%e "o))ittee str on-*y ( e*t t%at in or der to i)pr ove t%e "usto)er ser vi"es and

in"r ease t%e "over a-e o( t%e insur an"e industr y s%ou*d $e opened up to "o)petition.

=ut at t%e sa)e ti)e# t%e "o))ittee ( e*t t%e need to exer "ise "aution as any ( ai*ur e on t%e

par t o( ne& p*ayer s "ou*d r uin t%e pu$*i" "on( iden"e in t%e industr y

1:



!e

& +i( e Insur an

"e po*i

"ies

ar e

96%o*e *i( e po*i"ies 8 Cover t%e insur ed ( or *i( e. T%e insur ed does not r e"eive )oney

&%i*e %e is a*ive7 t%e no)inee r e"eives t%e su) assur ed p*us $onus upon deat% o( t%e

insur ed.

Endo&)ent po*i"ies 8 Cover t%e insur ed ( or a spe"i( i" per iod. T%e insur ed r e"eives

)oney on sur viva* o( t%e ter ) and is not "over ed t%er ea( ter .

4oney $a" po*i"ies 8 T%e no)inee r e"eives )oney i))ediate*y on deat% o( t%e

insur ed. On sur viva* t%e insur ed r e"eives )oney at r e-u*ar inter va*s dur in- t%e ter ).

T%ese po*i"ies "ost )or e t%an endo&)ent &it% pr o( it po*i"ies.

Annuities C%i*dr enLs po*i"ies 8 T%e no)inee r e"eives a -uar anteed a)ount o( )oney

at a pr e8deter )ined ti)e and not i))ediate*y on deat% o( t%e insur ed. On sur viva* t%e

insur ed r e"eives )oney at t%e sa)e pr e8deter )ined ti)e. T%ese po*i"ies ar e $est suited

( or p*annin- "%i*dr enLs ( utur e edu"ation and )arr ia-e "osts.

Pension s"%e)es 8 ar e po*i"ies t%at pr ovide $ene( its to t%e insur ed on*y upon r etir e)ent.

I( t%e insur ed dies dur in- t%e ter ) o( t%e po*i"y# %is no)inee &ou*d r e"eive t%e $ene( its

eit%er as a *u)p su) or as a pension ever y )ont%. Sin"e a sin-*e po*i"y "annot )eet a**

t%e insur an"e o$ ,e"tives# one s%ou*d %ave a por t( o*io o( po*i"ies "over in- a** t%e needs

1<



1.5 = ACM;ROUND O! THE STUDY

.+i( e Insur an"e is a "ontr a"t ( or pay)ent o( a su) o( )oney to t%e per son assur ed on t%e

%appenin- o( t%e event insur ed a-ainst/. Usua**y t%e insur an"e "ontr a"t pr ovides ( or t%e

pay)ent o( an a)ount on t%e date o( )atur ity or at spe"i( ied dates at per iodi" inter va*s or

at un( or tunate deat% i( it o""ur s ear *ier . O$vious*y# t%er e is a pr i"e to $e paid ( or t%is

$ene( it. A)on- ot%er t%in-s t%e "ontr a"ts a*so pr ovides ( or t%e pay)ent o( pr e)iu)s# $y

t%e assur ed.

+i( e Insur an"e is univer sa**y a"no&*ed-ed as a too* to e*i)inate r is# su$stitute "er tainty

( or un"er tainty and ensur e ti)e*y aid ( or t%e ( a)i*y in t%e un( or tunate event o( t%e deat%

o( t%e $r ead&inner . In ot%er &or ds# it is t%e "ivi*i0ed &or *d's par tia* so*ution to t%e

pr o$*e)s "aused $y deat%. +i( e insur an"e %e*ps in t&o &ays dea*in- &it% pr e)atur e

deat%# &%i"% *eaves dependent ( a)i*ies to ( end ( or t%e)se*ves and o*d a-e &it%out visi$*e

)eans o( suppor t.

T%e )ost "o))on types o( *i( e insur an"e ar e &%o*e *i( e insur an"e and ter ) *i( e

insur an"e. 6%o*e *i( e insur an"e pr ovides a *i( eti)e o( pr ote"tion as *on- as you pay t%e

pr e)iu)s to eep t%e po*i"y a"tive. T%ey a*so a""r ue a "as% va*ue and t%us o(( er a

savin-s "o)ponent. Ter ) *i( e insur an"e pr ovides pr ote"tion on*y dur in- t%e ter ) o( t%e

po*i"y and t%e po*i"ies ar e usua**y r ene&a$*e at t%e end o( t%e ter )

1A



T%ere are )any +i ( e Insuran"e Co)pani es * i e

+I!E INSUR ANCE CORPOR ATION O! INDI A

= AG AG A++I ANJ +I!E INSUR ANCE CO4P ANY

ICICI PRUDENTI A+ +I!E INSUR ANCE CO4P ANY

HD!C ST AND ARD +I!E INSUR ANCE CO4P ANY

=IR+ A SUN8+I!E INSUR ANCE CO4P ANY

IN; FYSYA +I!E INSUR ANCE CO4P ANY

4ET+I!E INSUR ANCE CO4P ANY

T AT A AI; +I!E INSUR ANCE CO4P ANY

4 A NE6 YORM +I!E INSUR ANCE CO4P ANY

O4 MOT AM 4 AHINDR A +I!E INSUR ANCE CO4P ANY

1?



CH APTER 5

RESE ARCH DESI;N

1B



RESE ARCH DESI;N

5.1 ST ATE4ENT O! THE PRO=+E4

T%is Study &i** %e*p us to under stand t%e "onsu)er 's per "eption a$out *i( e

insur an"e "o)panies. T%is study &i** %e*p t%e "o)panies to under stand# %o& a

"onsu)er se*e"ts# or -ani0es and inter pr ets t%e ua*ity o( ser vi"e and pr odu"t

o(( er ed $y *i( e insur an"e "o)panies.

5.5 SCOPE O! THE STUDY

T%is study is *i)ited to t%e "onsu)er s &it%in t%e *i)it o( =an-a*or e "ity.

T%e study &i** $e a$*e to r evea* t%e pr e( er en"es# needs# per "eption o( t%e

"usto)er s r e-ar din- t%e *i( e insur an"e pr odu"ts# It a*so %e*p t%e insur an"e

"o)panies to no& &%et%er t%e existin- pr odu"ts ar e r ea**y satis( yin- t%e

"usto)er s needs .

5.: NEED !OR THE STUDY

13 T%e deeper t%e under standin- o( "onsu)er 's needs and per "eption# t%e ear *ier

t%e pr odu"t is intr odu"ed a%ead o( "o)petitor s# t%e expe"ted "ontr i$ution

)ar -in &i** $e -r eater .Hen"e t%e study is ver y i)por tant.

53 Consu)er )ar ets and "onsu)er $uyin- $e%avior "an $e under stood $e( or e

sound pr odu"t and )ar etin- p*ans ar e deve*oped

:3 T%is study &i** %e*p "o)panies to "usto)i0e t%e ser vi"e and pr odu"t#

a""or din- to t%e "onsu)er 's need.

<3 T%is study &i** a*so %e*p t%e "o)panies to under stand t%e exper ien"e and

expe"tations o( t%e existin- "usto)er s.

A3 Apar t ( r o) "r eatin-# )anu( a"tur in- and distr i$ution "apa$i*ities ( or *i( e

insur an"e pr odu"ts# an in dept% study o( t%e "onsu)er s# t%eir pr e( er en"es and

de)and ( or t%eir pr odu"t is ver y ne"essar y ( or settin- up an e(( i"ient

)ar etin- net&or .

1



5.< O=GECTIFE O! THE STUDY

o

As"er tain t%e pr o( i*e and "%ar a"ter isti"s o( potentia* $uyer s.

o To %ave an insi-%t into t%e attitudes and $e%avior s o( "usto)er s.

o To ( ind out t%e di(( er en"es a)on- per "eived ser vi"e and expe"ted ser vi"e

.

o To pr odu"e an exe"utive ser vi"e r epor t to up-r ade ser vi"e "%ar a"ter isti"s o(

*i( e insur an"e "o)panies.

o To a""ess t%e de-r ee o( satis( a"tion o( t%e "onsu)er s &it% t%eir "urr ent $r and

o( Insur an"e pr odu"ts.

5.A. REFIE6 O! +ITER ATURE9

T%e *iter atur e r evie& se"tion "r iti"a**y exa)ine t%e r e"ent or %istor i"a**y si-ni( i"ant

studies# "o)pany data or industr y r epor ts t%at a"ts as a $asis ( or pr oposed studies to $e-in

&it% t%e r esear "% dis"ussion o( t%e r e*ated *iter atur e and r e*evant se"ondar y data ( r o) a

"o)pr e%ensive pr ospe"tive# )ovin- to )or e spe"i( i" studies# t%at ar e asso"iate &it%

r esear "% pr o$*e). =asi"a**y t%e *iter atur e s%ou*d $e app*ied to t%e study# t%an t%e

r esear "%er pr oposes. T%e *iter atur e )ay a*so exp*ain t%e needs ( or t%e pr oposed &or to

appr aise t%e s%or t "o)in-s and in( or )ationa* -aps in se"ondar y data sour "es.

To "arr y t%e r esear "% &or t%e r esear "%er %as -one t%r ou-% a ( e& r epor ts#

$oos# ,our na*s and &e$sites. T%e detai*s r e-ar din- +i( e Insur an"e Industr y# %istor y#

or i-in and -r o&t% o( t%e industr y is a*so taen ( r o) so)e $oos# )a-a0ines et". T%e

sour "es o( t%is in( or )ation ar e as ( o**o&s9

Ca

ta*o-u

es a

nd =r oa"

%e

r s ( r o) v

a

r ious *i(

e

insur

a

n"e

"o)p

a

nies

. Ar ti"*es ( r o) )a-a0ines and ne&s paper .

In( or )ation ( r o) var ious &e$sites.



1>



5.? RESE ARCH DESI;N9

A r esear "% desi-n is a $asi" p*an# &%i"% -uides t%e r esear "%er in t%e "o**e"tion and

ana*ysis o( data r euir ed ( or pr a"ti"in- t%e r esear "%. In( e"t t%e r esear "% desi-n is t%e

"on"eptua* str u"tur e &%er e t%e r esear "% is "ondu"ted. It "onstitutes t%e K=*ue Pr int' ( or

t%e "o**e"tion# )easur e)ent and ana*ysis o( t%e data. T%e study is "arr ied out to

under stand t%e Consu)er Per "eption a$out *i( e insur an"e "o)panies in =an-a*or e

"ity .!or t%is study t%e r esear "%er used exp*or ator y r esear "% desi-n. T%is r esear "% "over s

A "onsu)er s in =an-a*or e "ity# $e*on-in- to var ious a-e -r oups.

5.B S A4P+E DESI;N9

T%e pr o"ess o( dr a&in- a sa)p*e ( r o) a *ar -e popu*ation is "a**ed sa)p*in-. Popu*ation

r e( er s to t%e tota* o( ite)s a$out &%i"% in( or )ation is de( ined. 6e**8se*e"ted sa)p*es

)ay r e( *e"t ( air *y and a""ur ate*y t%e "%ar a"ter isti"s o( t%e popu*ation.

Sa)p*in- Unit9

T%e sa)p*e unit o( t%is sur vey &as t%e "usto)er s %avin- *i( e insur an"e po*i"ies in

=an-a*or e "ity.

Sa)p*e Si0e9

T%e sa)p*e si0e &as A "usto)er s o( di(( er ent *i( e insur an"e "o)panies# ( r o) t%e

var ious par ts o( t%e =an-a*or e "ity.

Sa)p*in- Te"%niue Adopted9

Convenient sa)p*in-

5. SOURCES O! D ATA9

A( ter identi( yin- and de( inin- t%e r esear "% pr o$*e) and deter )inin- spe"i( i" in( or )ation

r euir ed to so*ve t%e pr o$*e) t%e r esear "%er &i** *oo ( or t%e type and sour "es o( data

&%i"% )ay yie*d t%e desir ed r esu*ts# &%i*e de"idin- a$out t%e )et%od o( data "o**e"tion

to $e used ( or t%e study# t%er e ar e t&o types o( data.

5



Se"ondar y Data9

Se"ondar y data )eans data t%at ar e a*r eady avai*a$*e i.e. t%ey r e( er to t%e data &%i"%

%ave $een "o**e"ted and ana*y0ed $y so)eone and "an save $ot% )oney and ti)e

o( t%e r esear "%er . Se"ondar y data )ay $e avai*a$*e in t%e ( or ) o( "o)pany r e"or ds#

tr ade pu$*i"ations# *i$r ar ies et". Se"ondar y data sour "es ar e as ( o**o&s9

Co)pany Repor ts

Dai*y Ne&spaper

Standar d Text$oo

Far ious 6e$sites

Pr i)ar y Data9

Pr i)ar y data ar e t%ose# &%i"% ar e "o**e"ted ( or t%e ( ir st ti)e. Pr i)ar y data is "o**e"ted $y

( r a)in- uestionnair es. T%e uestionnair e "ontained uestions# &%i"% ar e $ot% open8

ended and "*osed8ended. Open8ended uestions ar e uestions r euir in- ans&er s in t%e

r esponder 's o&n &or ds. C*osed8ended uestions ar e t%ose &%er ein t%e r espondent %as to

)er e*y "%e" t%e appr opr iate ans&er ( r o) a *ist o( options avai*a$*e. Any dou$ts r aised

$y t%e r espondents &er e "*ar i( ied to -et t%e per ( e"t ans&er s ( r o) t%e distr i$utor s. Open8

ended uestions yie*ded )or e insi-%t( u* in( or )ation# &%er eas "*osed8Ended uestions

&er e r e*ative*y si)p*e to ta$u*ate and ana*y0e.

5.> !IE+D 6ORM9

An inter vie&8s"%edu*e and &e**8str u"tur ed uestionnair e is ad)inister ed to t%e tar -et

r espondents to "o**e"t pr i)ar y data 2Copy o( uestionnair e is atta"%ed in t%e appendix3

Open and "*ose8ended uestions ar e used in t%e uestionnair e. T%e or der s o( t%e uestions

ar e in su"% a )anner t%at t%ey $e-in &it% si)p*e uestions and *ead on t%e uestions t%at

needed )or e invo*ve)ent ( r o) r espondents.T%e se"ondar y data ar e "o**e"ted ( r o)

per iodi"a*s# )a-a0ines# ,our na*s and Inter net.

51



OPER ATION A+ DE!INITIONS O! THE STUDY

4ar etin-9

4ar

etin- i

s a so

"ia*

and )

an

a-

er i

a* pr o

"ess $y &%i

"% individu

a*s and -r oup o$t

ain &%

at

t%ey need and &ant t%r ou-% "r eatin-# o(( er in- and ex"%an-in- pr odu"ts o( va*ue &it%

ot%er s

.

4ar etin- 4ana-e)ent9

4ar etin- 4ana-e)ent is t%e pr o"ess o( p*annin- and exe"utin- t%e "on"eption# pr i"in-#

pr o)otion and distr i$ution o( individua* and or -ani0ationa* -oa*s.

4ar etin- Resear "%9

4ar etin- r esear "% is t%e syste)ati" and o$ ,e"tive sear "% ( or # and ana*ysis o( in( or )ation

r e*evant to t%e identi( i"ation and so*ution o( any pr o$*e)s in t%e ( ie*d o( )ar etin-.

Consu)er Resear "%9

Consu)er r esear "% is t%e )et%odo*o-y used to study "onsu)er $e%aviour .

Consu)er =e%aviour 9

Consu)er $e%aviour is t%e study o( %o& individua*s )ae de"isions to spend t%eir

avai*a$*e r esour "es Pti)e# )oney# e(( or tsQ on "onsu)ption r e*ated ite)s

.

4ar et Se-)entation9

4ar et se-)entation is t%e pr o"ess o( dividin- a )ar et in t%e distin"t su$sets o(

"onsu)er &it% "o))on needs or "%ar a"ter isti"s and se*e"tin- one or )or e se-)ents to

tar -et &it% distin"t )ar etin- )ix.

Positionin-9

Positionin- is t%e a"t o( desi-nin- t%e "o)pany's o(( er in- and i)a-e so t%at t%ey o""upy

a )eanin-( u* and distin"t "o)petitive position in t%e tar -et "onsu)er 's )ind.

55



Per "eption9

Per "eption is t%e pr o"ess $y &%i"% an individua* se*e"ts# or -ani0es# and inter pr ets

in( or )ation input to "r eate a )eanin-( u* pi"tur e o( t%e &or *d. !or a )ar eter to

in( *uen"e a )otivated $uyer to $uy t%eir pr odu"ts r at%er t%an "o)petitor s t%ey )ust $e

"ar e( u* to tae t%e per "eption pr o"ess into a""ount &%i*e desi-nin- t%eir )ar etin-

"a)pai-ns. Per "eption t%er e( or e in( *uen"e &%at pr odu"t "onsu)er $uys.

Attitude9

An attitude is a per son endur in- ( avor a$*e or un( avor a$*e eva*uation# e)otiona* ( ee*in-#

and a"tion tenden"ies to&ar ds so)e o$ ,e"t or idea.

Attr i$utes9

Attr i$utes ar e t%e str en-t%s and &eanesses o( a $r and t%at "r eate attitudes and ar e used

$y "onsu)er s to "%oose $et&een $r ands t%at ar e r e*ative*y si)i*ar or ( un"tiona**y

euiva*ent.

Fa*ues9

A va*ue is a "on"ept o( t%e desir a$*e. An inter na*i0ed standar d o( eva*uation a per son

possession. T%is standar d deter )ines or -uide an individua* eva*uation o( t%e )any

o$ ,e"ts en"ounter ed in ever yday *i( e.

=r and9

A $r and is a na)e# ter )# si-n# sy)$o*# or desi-n or a "o)$ination o( t%e)# used to

identi( y t%e -oods or ser vi"es o( one se**er or -r oup o( se**er and t%e di(( er entiate t%e)

( r o) t%ose o( "o)petitor s.

5:



5.1 +I4ITATIONS O! THE STUDY

A*t%ou-% t%e study &as "arr ied out &it% extr e)e ent%usias) and "ar e( u* p*annin- t%er e

ar e sever a* *i)itations# &%i"% %andi"apped t%e r esear "% vi0.

Ti)e Constr aints9

T%e ti)e stipu*ated ( or t%e pr o ,e"t to $e "o)p*eted is *ess and t%us t%er e ar e "%an"es t%at

so)e in( or )ation )i-%t %ave $een *e( t out# %o&ever due "ar e is taen to in"*ude a** t%e

r e*evant in( or )ation needed.

Sa)p*e si0e9

Due to ti)e "onstr aints t%e sa)p*e si0e &as r e*ative*y s)a** and &ou*d de( inite*y %ave

$een )or e r epr esentative i( I %ad "o**e"ted in( or )ation ( r o) )or e r espondents

.

A""ur a"y9

It is di(( i"u*t to no& i( a** t%e r espondents -ave a""ur ate in( or )ation7 so)e r espondents

tend to -ive )is*eadin- in( or )ation.

5<



CH APTER :

PRO!I+E O! THE INDUSTRY

5A



:.1 INDUSTRY PRO!I+E

Histor y and Deve*op)ent o( +i( e Insur an"e

+i( e Insur an"e# in its pr esent ( or )# "a)e to India ( r o) t%e United Min-do) &it%

esta$*is%)ent o( a =r itis% ( ir )# Or ienta* +i( e Insur an"e Co)pany in Ca*"utta in 11#

( o**o&ed $y =o)$ay +i( e Assur an"e Co)pany in 15:# t%e 4adr as Euita$*e +i( e

Insur an"e so"iety in 15> and Or ienta* ;over n)ent se"ur ity Assur an"e Co)pany in

1B<. Pr ior to 1B1# Indian +ives &er e tr eated as su$8standar d and "%ar -ed an extr a

pr e)iu) o( 1A to 5. =o)$ay 4utua* +i( e Assur an"e So"iety# a Indian insur er &%i"%

"a)e into existen"e in 1B1 &as t%e ( ir st to "over Indian *ives at nor )a* r ates.

T%e Indian *i( e Assur an"e Co)panies A"t# 1>15 &as t%e ( ir st statutor y )easur e tor e-u*ate *i( e insur an"e $usiness. +ater # in 1>5# t%e Indian Insur an"e Co)panies A"t &as

ena"ted# to ena$*e t%e -over n)ent to "o**e"t statisti"a* in( or )ation a$out $ot% *i( e and

non8*i( e insur an"e $usiness tr ansa"ted in India $y Indian and ( or ei-n insur er s# in"*udin-

t%e pr ovident insur an"e so"ieties. Co)pr e%ensive arr an-e)ents &er e# %o&ever # $r ou-%t

into e(( e"t &it% t%e ena"t)ent o( t%e Insur an"e A"t# 1>:.

=y 1>A?# 1A< Indian insur er s# 1? non8Indian insur er s and 1A pr ovident so"ieties &er e

"arr yin- on*ine insur an"e $usiness in India. On 1>t%

Ganuar y 1>A?# t%e )ana-e)ent o( t%e

entir e *i( e insur an"e $usiness o( 55> Indian insur er s and pr ovident insur an"e so"ieties and

t%e Indian *i( e insur an"e $usiness o( 1? non8Indian +i( e insur an"e "o)panies t%en

oper atin- in India# &as taen over $y t%e "entr a* ;over n)ent and t%en nationa*i0ed on 1st

Septe)$er 1>A? &%en t%e +i( e Insur an"e Cor por ation "a)e into existen"e.

6it% *ar -est nu)$er o( *i( e insur an"e po*i"ies in ( or "e in t%e &or *d# Insur an"e %appens to

$e a )e-a oppor tunity in India. It's a $usiness -r o&in- at t%e r ate o( 1A85 per "ent

annua**y and pr esent*y is o( t%e or der o( Rs <A $i**ion. To-et%er &it% $anin- ser vi"es#

it adds a$out B per "ent to t%e "ountr y's ;DP. ;r oss pr e)iu) "o**e"tion is near *y 5 per

"ent o( ;DP and ( unds avai*a$*e &it% +IC ( or invest)ents ar e per "ent o( ;DP.



5?



Yet# near *y per "ent o( Indian popu*ation is &it%out *i( e insur an"e "over &%i*e

%ea*t% insur an"e and non8*i( e insur an"e "ontinues to $e $e*o& inter nationa* standar ds.

And t%is par t o( t%e popu*ation is a*so su$ ,e"t to &ea so"ia* se"ur ity and pension

syste)s &it% %ar d*y any o*d a-e in"o)e se"ur ity. T%is itse*( is an indi"ator t%at -r o&t%

potentia* ( or t%e insur an"e se"tor is i))ense.

A &e**8deve*oped and evo*ved insur an"e se"tor is needed ( or e"ono)i"

deve*op)ent as it pr ovides *on-8ter ) ( unds ( or in( r astr u"tur e deve*op)ent and at t%e

sa)e ti)e str en-t%ens t%e r is tain- a$i*ity. It is esti)ated t%at over t%e next ten year s

India &ou*d r euir e invest)ents o( t%e or der o( one tr i**ion US do**ar . T%e Insur an"e

se"tor # to so)e extent# "an ena$*e invest)ents in in( r astr u"tur e deve*op)ent to sustain

e"ono)i" -r o&t% o( t%e "ountr y.

INSUR ANCE AND =USINESS ENFIRON4ENT

Insur an"e is "onsider ed as one o( t%e i)por tant se-)ent o( t%e e"ono)y ( or its -r o&t%

and deve*op)ent. T%is industr y pr ovides *on- ter ) ( unds &%i"% ar e essentia* ( or t%e

-r o&t% and deve*op)ent o( t%e nation .so t%e -r o&t% o( insur an"e industr y *ar -e*y

depends up on t%e envir on)ent in &%i"% t%ey exists. Her e I &ou*d *ie to )ention a$out

Indian $usiness envir on)ent and t%eir i)pa"t on insur an"e se"tor . T%er e ar e t&o type o(

envir on)ent &%i"% a(( e"t t%e $usiness one is envir on)ent &%i"% is inter na* to t%e

or -ani0ation 2inter na* envir on)ent3 and t%e ot%er one &%i"% is exter na* to t%e

or -ani0ation 2exter na* envir on)ent3. Inter na* envir on)ent in"*udes )ana-e)ent#

te"%no*o-y# "o)petitor s# e)p*oyees# s%ar e%o*der s# po*i"y%o*der s# )ar etin- inter )ediar y

et". T%e exter na* envir on)ent o( insur an"e $usiness %as $een "*assi( ied in ( our par ts#

na)e*y *e-a*# e"ono)i"# ( inan"ia*# and "o))er "ia*. *et us dis"us t%e) in detai* $y tain-

one $y one.

5B



THE INSUR ANCE RE;U+ ATORY AND DEFE+OP4ENT AUTHORITY

2IRD A3

T%e 4a*%otr a Co))ittee ( e*t t%e need to pr ovide -r eater autono)y to insur an"e

"o)panies in or der to i)pr ove t%eir per ( or )an"e and ena$*e t%e) to a"t as independent

"o)panies &it% e"ono)i" )otives. !or t%is pur pose# it %ad pr oposed settin- up an

independent r e-u*ator y $ody8 T%e Insur an"e Re-u*ator y and Deve*op)ent Aut%or ity.

=ased on t%e 4a*%otr a "o))ittee r epor t in Apr i* 5 IRD A &as in"or por ated. Sin"e

$ein- set up as an independent statutor y $ody t%e IRD A %as put in a ( r a)e&or o(

-*o$a**y "o)pati$*e r e-u*ations. Se"tion 1< o( t%e IRD A A"t 1>>># *ays t%e duties# po&er

and ( un"tions o( t%e aut%or ity .t%e aut%or ity s%a** %ave t%e duty to r e-u*ate# pr o)ote and

ensur e or der *y -r o&t% o( t%e insur an"e $usiness and r einsur an"e $usiness.

Re( or )s and I)p*i"ations

T%e *i$er a*i0ations o( t%e Indian insur an"e se"tor %as $een t%e su$ ,e"t o( )u"% %eated

de$ate ( or so)e year s. T%e se"tor is ( ina**y set to open up to pr ivate "o)petition. T%e

Insur an"e Re-u*ator y and Deve*op)ent Aut%or ity $i** &i** "*ear t%e &ay ( or pr ivate entr y

into insur an"e# as t%e -over n)ent is een to invite pr ivate se"tor par ti"ipation into

insur an"e. To addr ess t%ose "on"er ns# t%e $i** r euir es dir e"t insur er s to %ave a )ini)u)

pa

id8up "a

pita

* o( Res

t. 1 $i**ion# to inves

t po*i"y%o*d

e

r 's ( und

s on*y in Indi

a

7a

nd tor estr i"t inter nationa* "o)panies to a )inor ity euity %o*din- o( 5? per "ent in any ne&

"o)pany. Indian Pr o)oter s &i** a*so %ave to di*ute t%eir euity %o*din- to 5? per "ent

over a 18year per iod.

Over t%e past t%r ee year # ar ound : "o)panies %ave expr essed inter est in enter in- t%e

se"tor and )any ( or ei-n and Indian "o)panies %ave arr an-ed a**ian"es. 6%et%er t%e

insur er is o*d or ne&# pr ivate or pu$*i"# expandin- t%e )ar et &i** pr esent "%a**en-es. A

nu)$er o( ( or ei-n Insur an"e Co)panies %ave set up r epr esentative o(( i"es in India and

%ave a*so tied up &it% var ious asset )ana-e)ent "o)panies. So)e o( t%e Indian

"o)panies# &%i"% %ave tied up &it% Inter nationa* par tner s# ar e.

5



Indian Par tner s Inter nationa* Par tner s

=o)$ay Dyein- ;enera* A""ident# UM

Tata A)eri"an Int. ;roup# US

Da$ur ;roup +i$er ty 4utua* !und# US

ICICI Prudentia*# UM

Sundara) !inan"e 6inter t%ur Insuran"e# S&it0er*and

Hindustan Ti)es Co))er "ia* Union# UM

Ran$axy Ci-na# US

HD!C Standard +i( e# UM

CM =ir*a ;roup Juri"% Insuran"e# S&it0er*andDC4 S%rira) Roya* Sun A**ian"e# UM

;odre, G Rot%s"%i*d # UM

4 A C%ida)$ara) 4et +i( e

C%o*a)anda*a) ;uardian Roya* Ex"%an-e# UM

SM 4odi ;roup +e-a* and ;enera*# Austra*ia

5t% Centur y !inan"e Canada +i( e

A*pi" !inan"e A**ian0 Ho*din-# ;er)any

Fysya =an IN;

Mota 4a%indra C%u$$# US

T%e *ie*y i)pa"t o( openin- up o( India's insur an"e se"tor is t%at pr ivate p*ayer s

)ay s&a)p t%e )ar et. Inter nationa* insur er s o( ten der ive a si-ni( i"ant par t o(

t%eir $usiness ( r o) )u*tinationa* oper ations. 4u*tinationa* insur er s ar e indeed

een*y inter ested as7 per %aps t%er e %o)e )ar ets ar e satur ated &%i*e e)er -in-

"ountr ies %ave *o& insur an"e penetr ation and %i-% -r o&t% r ates

5>



Type o( *i( e insur an"e po*i"ies

6%o*e *i(

e in

sur an

"e

6%o*e *i( e is a ( or ) o( per )anent insur an"e# &it% -uar anteed r ates and -uar anteed "as%

va*ues. It is t%e *east ( *exi$*e ( or ) o( per )anent insur an"e.

Univer sa* *i( e insur an"e

Univer sa* *i( e is si)i*ar to &%o*e *i( e# ex"ept t%at you "an "%an-e t%e deat% $ene( it 2t%e

)oney paid to t%e $ene( i"iar y &%en t%e insur ed per son dies3# t%e a)ount o( pr e)iu)s

and %o& o( ten you pay t%e pr e)iu)s.

Far ia$*e *i( e insur an"e

Far ia$*e *i( e insur an"e is t%e r isiest ( or ) o( per )anent insur an"e# $ut it "an a*so -ive

you t%e $est r etur n ( or your )oney. Essentia**y# t%e *i( e insur an"e "o)pany &i** invest

your insur an"e pr e)iu)s ( or you. I( t%e invest)ents do &e**# t%e deat% $ene( it and "as%

va*ue o( t%e po*i"y -o up. I( t%ey do poor *y# t%ey -o do&n. ItLs a *itt*e *ie puttin- your

savin-s into t%e sto" )ar et.

;r oup *i( e insur an"e

4any "o)panies a**o& t%eir e)p*oyees to $uy -r oup *i( e insur an"e t%r ou-% t%e "o)pany.

Usua**y# you "an -et ver y -ood r ates ( or t%is insur an"e $ut you %ave to -ive t%e insur an"e

up &%en you stop &or in- t%er e. !or t%at r eason# -r oup insur an"e "an $e a -ood &ay to

$uy a *itt*e extr a *i( e insur an"e# $ut it does not )ae sense to )ae it your )ain po*i"y.

:



T%er e ar e a nu)$er o( po*i"ies ( or spe"i( i" insur an"e needs. So)e o( t%ese in"*ude9

1. !a)i*y in"o)e *i( e insur an"e.

T%is is a de"r easin- ter ) po*i"y t%at pr ovides a stated in"o)e ( or a ( ixed per iod o(

ti)e# i( t%e insur ed per son dies dur in- t%e ter ) o( "over a-e. T%ese pay)ents

"ontinue unti* t%e end o( a ti)e per iod spe"i( ied &%en t%e po*i"y is pur "%ased.

5. !a)i*y insur an"e.

A &%o*e *i( e po*i"y t%at insur es a** t%e )e)$er s o( an i))ediate ( a)i*y

88%us$and# &i( e and "%i*dr en. Usua**y t%e "over a-e is so*d in units per per son#

&it% t%e pr i)ar y &a-e8ear ner insur ed ( or t%e -r eatest a)ount.

:. Senior *i( e insur an"e.

A*so no&n as -r aded deat% $ene( it p*ans# t%ey pr ovide ( or a -r aded a)ount to $e

paid to t%e $ene( i"iar y. !or exa)p*e# in ea"% o( t%e ( ir st t%r ee to ( ive year s a( ter

t%e insur ed dies# t%e deat% $ene( it s*o&*y in"r eases. A( ter t%at per iod# t%e entir e

deat% $ene( it is paid to t%e $ene( i"iar y. T%is )i-%t $e appr opr iate i( t%e

$ene( i"iar y is not a$*e to %and*e a *ar -e a)ount o( )oney soon a( ter t%e deat%# $ut

&ou*d $e in a $etter position to %and*e it a ( e& year s *ater .

<. Guveni*e insur an"e.

T%is is *i( e insur an"e on a "%i*d. Cover a-e is paid ( or $y an adu*t# usua**y t%e

par ents or -uar dians. Su"% po*i"ies ar e not "onsider ed tr aditiona* *i( e insur an"e

$e"ause t%e "%i*d is not pr odu"inan in"o)e t%at needs to $e pr ote"ted. Ho&ever #

$y $uyin- t%e po*i"y &%en t%e "%i*d is youn-# t%e par ents ar e a$*e to *o" in an

extr e)e*y *o& pr e)iu) r ate and a**o& )any )or e year s o( tax8de( err ed "as%

va*ue $ui*dup

.

:1



A. Cr edit *i( e insur an"e.

T%is insur an"e is desi-ned to pay o(( t%e $a*an"e o( a *oan i( you die $e( or e you

%ave r epaid it. Cr edit *i( e insur an"e is avai*a$*e ( or )any inds o( *oans in"*udin-

student *oans# auto *oans# ( ar ) euip)ent *oans# ( ur nitur e and ot%er per sona*

*oans in"*udin- "r edit "ar ds. Cr edit *i( e insur an"e "an $e pur "%ased $y an

individua*. Usua**y it is so*d $y ( inan"ia* institutions )ain- *oans# *ie $ans# to

$orr o&er s at t%e ti)e t%ey tae out t%e *oan. I( a $orr o&er dies# t%e pr o"eeds o(

t%e po*i"y r epay t%e *oan dir e"t*y to t%e *ender or "r editor .

?. 4or t-a-e insur an"e

T%is de"r easin- ter ) "over a-e is desi-ned to pay o(( t%e unpaid $a*an"e o( a

)or t-a-e i( you die $e( or e t%e )or t-a-e is paid o(( . Pr e)iu)s ar e -ener a**y *eve*

t%r ou-%out t%e ter ) o( t%e po*i"y. T%e po*i"y is usua**y independent o( t%e

)or t-a-e# )eanin- t%at t%e ( inan"ia* institution -r antin- t%e )or t-a-e is separ ate

( r o) t%e insur an"e "o)pany issuin- t%e po*i"y. T%e pr o"eeds o( t%e po*i"y ar e

paid to t%e $ene( i"iar ies o( t%e po*i"y# not t%e )or t-a-e "o)pany. T%e $ene( i"iar y

is not r euir ed to use t%e pr o"eeds to pay o(( t%e )or t-a-e

B. Annuity

An annuity is a ( or ) o( insur an"e t%at ena$*es you to save ( or your r etir e)ent.

=asi"a**y# you -ive t%e insur an"e "o)pany )oney ( or a "er tain per iod o( ti)e#

and t%en a( ter you r etir e t%ey &i** pay you a "er tain a)ount o( )oney ever y year

unti* you die. T%er e ar e )any di(( er ent ( or )s o( annuities. . 4ost peop*e &%o $uy

annuities ar e AA or o*der

:5



:.5 PRO!I+E O! THE OR; ANIS ATIONS9

+I!E INSUR ANCE CORPOR ATION O! INDI A

+i( e Insur an"e Cor por ation o( India &as ( or )ed in Septe)$er 1>A? $y passin- +IC

A"t# 1>A? in Indian par *ia)ent. On t%e nationa*i0ation o( t%e *i( e insur an"e in 1>A?#

t%e pr e)iu) r atin- o( Or ienta* ;over n)ent se"ur ity *i( e Assur an"e "o)pany &er e

adopted $y +IC &it% a r edu"tion o( A o( t%e ta$u*ar pr e)iu) or Re. 1 per

t%ousand su) assur ed# &%i"%ever &as *ess. T%is r edu"tion &as )ade in

anti"ipation o( e"ono)ies o( s"a*e t%at &ou*d e)er -e on t%e )er -er o( di(( er ent

insur er s in a sin-*e entity.

+i( e Insur an"e Cor por ation O( India 8 t%er e ar e )any t%in-s to "onsider as +i( e

Insur an"e Cor por ation o( India o(( er s var ious insur an"e pr odu"ts &%i"% ar e ver y

"o)p*ex# $ut under *yin- t%is "o)p*exity is a si)p*e ( a"t. T%e $ui*din- $*o"s ( or

a** +i( e Insur an"e Cor por ation o( India ar e 213 invest)ent r etur n7 253 )or ta*ity

exp

er i

en

"e7

and 2:3

exp

ense

)an

a-

e)

ent7 ( or your +i(

e In

sur

an

"e Cor por

ation O(

India



::



O$ ,e"tives o( +IC

• Spr ead +i( e Insur an"e )u"% )or e &ide*y and in par ti"u*ar to t%e r ur a* ar eas and

to t%e so"ia**y and e"ono)i"a**y $a"&ar d "*asses &it% a vie& to r ea"%in- a**

insur a$*e per sons in t%e "ountr y and pr ovidin- t%e) adeuate ( inan"ia* "over

a-ainst deat% at a r easona$*e "ost.

• 4axi)i0e )o$i*i0ation o( peop*eLs savin-s $y )ain- insur an"e8*ined savin-s

adeuate*y attr a"tive.

• =ear in )ind# in t%e invest)ent o( ( unds# t%e pr i)ar y o$*i-ation to its

po*i"y%o*der s# &%ose )oney it %o*ds in tr ust# &it%out *osin- si-%t o( t%e inter est

o( t%e "o))unity as a &%o*e7 t%e ( unds to $e dep*oyed to t%e $est advanta-e o(

t%e investor s as &e** as t%e "o))unity as a &%o*e# eepin- in vie& nationa*

pr ior ities and o$*i-ations o( attr a"tive r etur n.

• Condu"t $usiness &it% ut)ost e"ono)y and &it% t%e ( u** r ea*i0ation t%at t%e

)oneys $e*on- to t%e po*i"y%o*der s.

• A"t as tr ustees o( t%e insur ed pu$*i" in t%eir individua* and "o**e"tive "apa"ities.

• 4eet t%e var ious *i( e insur an"e needs o( t%e "o))unity t%at &ou*d ar ise in t%e

"%an-in- so"ia* and e"ono)i" envir on)ent.

• Invo*ve a** peop*e &or inin t%e Cor por ation to t%e $est o( t%eir "apa$i*ity in

( ur t%er in- t%e inter ests o( t%e insur ed pu$*i" $y pr ovidin- e(( i"ient ser vi"e &it%"our tesy.

Pr o)ote a)on-st a** a-ents and e)p*oyees o( t%e Cor por ation a sense o( par ti"ipation#

pr ide and ,o$ satis( a"tion t%r ou-% dis"%ar -e o( t%eir duties &it% dedi"ation to&ar ds

a"%ieve)ent o( Cor por ate O$ ,e"tive



:<



FISION

R A tr ans8nationa**y "o)petitive ( inan"ia* "on-*o)er ate o( si-ni( i"an"e to so"ieties and

Pr ide o( India .

4ISSION

RExp*or e and en%an"e t%e ua*ity o( *i( e o( peop*e t%r ou-% ( inan"ia* se"ur ity $y pr ovidin-

pr odu"ts and ser vi"es o( aspir ed attr i$utes &it% "o)petitive r etur ns# and $y r ender in-

r esour "es ( or e"ono)i" deve*op)ent/

Far ious po*i"ies o(( er ed $y *i( e insur an"e "or por ation o( India ar e

13 6%o*e +i( e S"%e)es

• 6%o*e *i( e &it% pr o( it

• +i)ited pay)ent &%o*e *i( e

• Sin-*e Pr e)iu) &%o*e *i( e

• Conver ti$*e &%o*e *i( e p*an

53 Endo&)ent S"%e)es

• Endo&)ent p*an &it% pr o( it

• +i)ited pay)ent Endo&)ent

• Geevan 4itr a 2Dou$*e Cover3

• Geevan 4itr a 2Tr ip*e "over3

• =%avis%ya Geevan

• Geevan Anand

• Ne& Gana Ras%a

:3 Ter ) Assur an"e P*an

• An)o* Geevan

• 5 Year Ter ) Assur an"e

• Cover ti$*e Ter )

• Ne& =i)a Mir an



:A



<3 P*an ( or needs o( C%i*dr en

• Mo)a* Geevan

• Geevan Suanya

• Geevan Mis%or e

• Geevan =a*ya

• Geevan C%aya

• 4arr ia-eedu"ationa* annuity

• De(( er ed Endo&)ent

A3 Pe

r iodi" 4on

ey =

a"

P*an

• Geevan Sa)r id%i

• Geevan Re%a P*an

• 4oney =a" P*an

• Geevan Sur a$%i

• Geevan $%ar at%i

?3 4edi"a* $ene( its *ined insur an"e

• As%a Deep II

• Geevan As%a II

B3 !or $ene( its to Handi"apped

• Geevan Aad%ar

• Geevan Fis%&as

3 P*ans to "over %ousin- *oans

• 4or ta-a-e r ede)ption

>3 Goint *i( e p*an

• Geevan sat%i



:?



13 Invest)ent p*an

• =i)a Nives% Tr ip*e "over

113 Capita* )ar et *ined p*an

• =i)a p*us.

Des"r iption o( t%e +IC Po*i"ies

6%o*e *i( e p*an9

6%o*e *i( e p*an ar e t%ose po*i"ies &%i"% *i( e assur ed %as to pay pr e)iu)s ti** %is

deat% t%e su) assur ed &i** $e paid to %is dependent -ener a**y B year s is assu)ed as

a )axi)u) a-e ( or pay)ent o( pr e)iu).

Under t%e &%o*e *i( e pr e)iu) ar e paya$*e t%r ou-%out t%e *i( e ti)e o( t%e *i( e assur ed

and t%is is t%e "%eapest ( or ) o( po*i"y.

T%is p*an is idea**y suited to per son &%o &ants )axi)u) pr ovision ( or %is ( a)i*y at

)ini)u) "ost. It a*so )eets t%e needs ( or ( unds r euir ed ( or ( uner a*# r e*i-ious r ites

and "er e)onies to $e per ( or )ed# tax *ia$i*ities i( any and expenses "onne"ted &it%

t%e *ast si"ness and %ospita* "%ar -es et".

Endo&)ent Assur ed P*an9

Endo&)ent p*

ans ar e not

"ov

er in- t%

e r i

s ( or &%o*

e *i(

e o( t%

e *i(

e ass

ur ed. T%

e t

er )

o( r is "over under t%is p*an is as per t%e need o( *i( e assur ed.

Endo&)ent assur an"e p*an ar e t%e )ost popu*ar . T%ey ar e e)inent*y

Suited to )eet it one po*i"y t%e t&in de)ands o( o*d a-e pr ovision and r is "over ( or

( a)i*y. T%e su) assur ed is paya$*e on )atur ity or at deat% i( ear *ier . T%us an

Endo&)ent Assur an"e Po*i"y pr ovides ( or r etir e)ent and a*so ser ves as a )eans o(

( a)i*y pr ovisions.

Ter ) Assur an"e

Under t%e ter ) assur an"e t%e r is "over is -ener a**y ( or spe"i( i" s%or t ter ). Su"%

ter ) assur an"e is )axi)u) ( or 5 year s. ;ener a**y t%is type o( assur an"e is use( u*

( or air tr ave*in-.

:B



4oney =a" P*ans

Under t%is p*an spe"i( i" per "enta-e o( su) assur ed &i** $e $a"ed to t%e *i( e assur ed

a( ter spe"i( i" per iod o( ti)e. T%is p*an is o( spe"ia* inter est to per son &%o $esides

desir in- to pr ovide ( or t%eir o&n o*d a-e and ( a)i*y ( ee*s t%e need ( or *u)p su)

$ene( its at per iodi"a* inter va*s. Under t%ese po*i"ies par t o( t%e su) assur ed is paid to

t%e *i( e assur ed in insta**)ents at se*e"ted inter va*s.

C%i*dr en P*an

Under t%e "%i*dr en p*ans t%e r is on t%e *i( e o( t%e "%i*dr en &%er e "over ed -ener a**y

t%is type o( p*ans ar e %e*p( u* in edu"ation and )arr ia-e o( t%e "%i*dr en.

Geevan =a*ya9

T%is p*an is desi-ned to ena$*e a par ent to pr ovide ( or t%e "%i*d $y pay)ent o( a ver y

*o& pr e)iu) an Endo&)ent Assur an"e Po*i"y# t%e r is under &%i"% &i** "o))en"e

( r o) t%e vestin- date. In addition# Pr e)iu) $ene( it and in"o)e $ene( it ar e in"*uded

as additiona* $ene( it $y pay)ent o( appr opr iate additiona* pr e)iu) dur in- t%e

de( er )ent per iod.

T%is po*i"y s%a** $e "an"e**ed in "ase t%e *i( e assur ed s%a** die $e( or e t%e de( err ed

dates and in su"% an event pr ovided t%e po*i"y is t%en in ( u** ( or "e in ( or a r edu"ed

"as% option.

4arr ia-e Endo&)ent edu"ationa* annua* p*an

Ever y ( at%er desir es to see t%at %is "%i*dr en ar e &e** sett*ed in *i( e t%r ou-% sound

edu"ation# *eadin- to -ood ,o$s and %appy )arr ia-e. T%ese needs ar ise at a-es &%i"%

"an $e appr oxi)ate*y anti"ipated. Say &%en t%e "%i*dr en ar e $et&een 1 to 5A year o(

a-e. T%is p*an pr ovides ( or a su) assur ed to eep aside to )eet )arr ia-e edu"ationa*

expenses o( "%i*dr en. Under t%is p*an t%e S A a*on- &it% t%e vested $onus s%a** $e

paya$*e at t%e end o( t%e se*e"ted ter ) eit%er is *u)p su) or in ten %a*( year *y

insta**)ent# at t%e option o( t%e *i( e assur ed no)inee $ene( i"iar y.

Geevan 4itr a

T%is p*an pr ovides additiona* insur an"e "over eua* to t%e su) assur ed in t%e even o(

deat% dur in- t%e ter ) o( po*i"y so t%at t%e tota* insur an"e "over in t%e event o( deat%

is t&i"e t%e $asi" su) assur ed. i.e. T%e $asi" su) assur ed is dou$*ed and t%e a""r ued

$onus is a*so paid.

:



IN; FYSYA +I!E INSUR ANCE

IN; Fysya +i( e Insur an"e Co)pany Pr ivate +i)ited enter ed t%e pr ivate *i( e insur an"e

industr y in India in Septe)$er 51# and in a s%or t span o( 1 )ont%s %as esta$*is%ed

itse*( as a distin"tive *i( e insur an"e $r and &it% an innovative# attr a"tive and "usto)er

( r iend*y pr odu"t por t( o*io and a pr o( essiona* advisor ( or "e. It a*so distr i$utes pr odu"ts in

"*ose "ooper ation &it% its sister "o)pany IN; Fysya =an t%r ou-% =an assur an"e.

Curr ent*y# it %as over : advisor s &or in- ( r o) 55 *o"ations a"r oss t%e "ountr y and

over : e)p*oyees.

IN; Fysya +i( e Insur an"e Co)pany is %eaduar ter ed at =an-a*or e and %as esta$*is%ed a

str on- pr esen"e in t%e "ities o( De*%i# 4u)$ai# Mo*ata# Hyder a$ad and C%ennai. In

addition IN; Fysya +i( e oper ates in Fi0a-# Fi,ay&ada# 4an-a*or e# 4ysor e# Pune#

Na-pur # C%andi-ar %# +ud%iana and Gaipur .

IN; Fysya +i( e %as pioneer ed pr odu"t innovations in t%e Indian *i( e insur an"e )ar et

&it% "usto)er8or iented "as% $onus endo&)ent and )oney $a" pr odu"ts. 2Reassur in-

+i( e and 4axi)isin- +i( e3# t%e ( ir st anti"ipated &%o*e *i( e pr odu"t 2!u*( i**in- +i( e3 and

t%e ( ir st Ter )Cr iti"a* I**ness "o)$ination pr odu"t 2Conuer in- +i( e3. Conuer in- +i( e is

an innovative ter ) and "r iti"a* i**ness pr odu"t t%at %as $een *aun"%ed r e"ent*y.

Conuer in- +i( e pr ovides a(( or da$*e ter ) "over and "r iti"a* i**ness "over a-e ( or 1

"r iti"a* i**nesses o( upto A o( t%e Su) Assur ed. IN; Fysya +i( e de"*ar ed a $onus in

Septe)$er 55 o( A 2"as% $onus 8 paya$*e i))ediate*y3 and < 2r ever sionar y $onus

8paya$*e at t%e end o( t%e ter )3.



:>



T%e "o)pany %as over 5A# "usto)er s at t%e end o( 55 and %as a"%ieved a ( ir st

pr e)iu) in"o)e o( Rs. 1B "r or es in 55.

IN; Fysya +i( e Insur an"e is a ,oint ventur e $et&een IN; Insur an"e Inter nationa* =F a

par t o( IN; ;r oup# t%e &or *dLs *ar -est *i( e insur an"e "o)pany 2!or tune ;*o$a* A#

553# IN; Fysya =an# &it% 1.A )i**ion "usto)er s and over < out*ets and ;4R

Te"%no*o-ies and Industr ies +i)ited# par t o( ;4R ;r oup a*so $ased in =an-a*or e and

invo*ved in t%e ( ie*d o( po&er -ener ation# in( r astr u"tur a* deve*op)ent and sever a* ot%er

$usinesses.

IN; Fysya +i( e %as a paid up "apita* o( Rs.1< "r or es and an aut%or ised "apita* o( Rs.

5 "r or es.

+i( e insur an"e pr odu"ts o(( er ed $y t%e "o)pany ar e9

13 Pr ote"tion p*an

• Cr iti"a* i**ness p*an

• Endo&)ent p*an

53 Savin-s p*an

• Endo&)ent p*an

• C%i*d pr ote"tion p*an

• 4oney $a" p*an

:3 Invest)ent P*an

• 6%o*e *i( e p*an

• +i)ited pay)ent endo&)ent p*an

• Anti"ipated &%o*e *i( e p*an



<



T AT A8 AI; +i( e Insur an"e

Tata8 AI; +i( e Insur an"e Co)pany is a ,oint ventur e $et&een t%e Tata ;r oup

and A)er i"an Inter nationa* ;r oup In" 2 AI;3# t%e *eadin- US8$ased inter nationa*

insur an"e and ( inan"ia* ser vi"es or -ani0ation and t%e *ar -est under&r iter o(

"o))er "ia* and industr ia* insur an"e in A)er i"a. Its )e)$er "o)panies &r ite a &ide

r an-e o( "o))er "ia*# per sona* and *i( e insur an"e pr odu"ts t%r ou-% a var iety o(

distr i$ution "%anne*s in appr oxi)ate*y 1: "ountr ies and ,ur isdi"tions t%r ou-%out t%e

&or *d. AI;'s -*o$a* $usinesses a*so in"*ude ( inan"ia* ser vi"es and asset )ana-e)ent#

in"*udin- air "r a( t *easin-# ( inan"ia* pr odu"ts# tr adin- and )ar et )ain-# "onsu)er

( inan

"e# in

stitution

a*# r

etai*

and dir

e"t inv

est)

ent ( und

asset )

an

a-

e)

ent# r

ea*

estate

invest)ent )ana-e)ent# and r etir e)ent savin-s pr odu"ts. T AT A %o*ds B? s%ar es

and AI; %o*ds 5< s%ar es in t%e tota* s%ar e "apita* o( T AT A AI;.

Tata AI; +i( e Insur an"e Co)pany +td. RTata AI; +i( eR o(( er s a $r oad arr ay o(

*i( e insur an"e pr odu"ts to individua*s# asso"iations and $usinesses o( a** si0es# &it% a

&ide var iety o( additiona* "over a-e to ensur e our "usto)er s "an ( ind an insur an"e

pr odu"t to )eet t%eir needs. Tata8 AI; +i( e Insur an"e and Tata8 AI; ;ener a* Insur an"e#

$ot% ,oint ventur es $et&een t%e Tata ;r oup and A)er i"an Inter nationa* ;r oup 2 AI;3# pr ovide *i( e and -ener a* insur an"e po*i"ies and so*utions to "o)panies# institutions and

or -ani0ations a"r oss India. It is *i"ensed to oper ation on 15t%

!e$r uar y 51. T AT A8 AI;

*i( e is spr ead over 5 $r an"% o(( i"es and :> tr ainin- o(( i"es a"r oss t%e "ountr y.

Tata8 AI; +i( e o(( er s a $r oad arr ay o( *i( e insur an"e pr odu"ts and so*utions to

"or por ate and ot%er or -ani0ations. T%ese pr odu"ts and so*utions %ave var ious va*ue8

added $ene( its and options t%at de*iver ( *exi$i*ity and "%oi"e to t%e "o)panyLs "*ients.

Tata AI; +i( e %as "o)p*eted its <t% year o( oper ations and r e-ister ed a Tota* Pr e)iu) o(

Rs. <>B Cr or es ( or t%e per iod Apr i* 5< 8 4ar "% 5A.



<1



T%e "o)pany %as so)e 5 *i( e insur an"e pr odu"ts &it% over 5A pr odu"t "o)$inations#

in"*udin- endo&)ent to ter )# pension to -r oup *i( e and "r edit *i( e# )oney $a" to &%o*e

*i( e p*ans# et". Tata8 AI; +i( e uses di(( er ent distr i$ution "%anne*s# in"*udin- dir e"t

)ar etin-# $r oer a-e and $an" assur an"e# to ser vi"e "*ient -r oups in 1> Indian "ities.

Tata8 AI; +i( e is t%e ( ir st pr ivate insur er in India to o(( er -r oup r etir e)ent

s"%e)es. Additiona**y# t%e "o)panyLs -r oup )ana-e)ent division ( o"uses on pr ovidin-

e)p*oyee $ene( it so*utions.

PRODUCTS

T%e pr odu"t r an-e o( T AT A8 AI; +i( e is &ide8spr ead a"r oss di(( er ent se-)ents.

So)e o( t%e pr odu"ts ar e )entioned $e*o&.

4a%a *i( e

Invest Assur e

Hea*t% Pr ote"tor

Star Mid

S%u$% +i( e

Nir van

a

Nir vana P*us

4oney Saver P*an

Hea*t% !ir st

Assur e ;o*den +i( e

Assur e 1# 5# : year s Se"ur ity and ;r o&t%

Assur e Edu"ate at 1# 51

Assur e Car eer =ui*der P*an at 5B

Assur e ;o*den Year s P*an

Assur e 51 4oney Saver P*an

Assur e 1A11A55A year s to a-e *i( e*ines

TROP

<5



HD!C STAND ARD +I!E INSUR ANCE

T%e Par tner s%ip9

HD!C and Standar d +i( e ( ir st "a)e to-et%er ( or a possi$*e ,oint ventur e# to enter t%e +i( e

Insur an"e )ar et# in Ganuar y 1>>A. It &as "*ear ( r o) t%e outset t%at $ot% "o)panies

s%ar ed si)i*ar va*ues and $e*ie( s and a str on- r e*ations%ip ui"*y ( or )ed. In O"to$er

1>>A t%e "o)panies si-ned a : year ,oint ventur e a-r ee)ent.

Ar ound t%is ti)e Standar d +i( e pur "%ased a A stae in HD!C# ( ur t%er str en-t%enin- t%e

r e*ations%ip.

T%e next t%r ee year s &er e ( i**ed &it% un"er tainty# due to "%an-es in -over n)ent and

on-oin- de*ays in -ettin- t%e IRD A 2Insur an"e Re-u*ator y and Deve*op)ent aut%or ity3

A"t passed in par *ia)ent. Despite t%is $ot% "o)panies r e)ained ( ir )*y "o))itted to t%e

ventur e.

In O"to$er 1>># t%e ,oint ventur e a-r ee)ent &as r ene&ed and additiona* r esour "e )ade

avai*a$*e. Ar ound t%is ti)e Standar d +i( e pur "%ased 5 o( In( r astr u"tur e Deve*op)ent

!inan"e Co)pany +td. 2ID!C3. Standar d +i( e a*so star ted to use t%e ser vi"es o( t%e

HD!C Tr easur y depar t)ent to advise t%e) upon t%eir invest)ents in India.

To&ar ds t%e end o( 1>>># t%e openin- o( t%e )ar et *ooed ver y pr o)isin- and $ot%

"o)panies a-r eed t%e ti)e &as r i-%t to )ove t%e oper ation to t%e next *eve*. T%er e( or e#

in Ganuar y 5 an exper t tea) ( r o) t%e UM ,oined a %and pi"ed tea) ( r o) HD!C to

( or ) t%e "or e pr o ,e"t tea)# $ased in 4u)$ai.

Ar ound t%is ti)e Standar d +i( e pur "%ased a ( ur t%er A stae in HD!C and a A stae in

HD!C =an.

In a ( ur t%er deve*op)ent Standar d +i( e a-r eed to par ti"ipate in t%e Asset 4ana-e)ent

Co)pany pr o)ot

ed $y HD!C to

ent

e

r t%e )utu

a* ( und )

a

r et. T%

e 4utu

a* !und &

as

*aun"%ed on 5t% Gu*y 5

<:



In"or por ation o( HD!C Standar d +i( e Insur an"e Co)pany +i)ited9

T%e "o)pany &as in"or por ated on 1<t% Au-ust 5 under t%e na)e o( HD!C Standar d

+i( e Insur an"e Co)pany +i)ited. Co)panies a)$ition ( r o) as ( ar $a" as O"to$er 1>>A#

&as to $e t%e ( ir st pr ivate "o)pany to r e8enter t%e *i( e insur an"e )ar et in India. On t%e

5:r d o( O"to$er 5# t%is a)$ition &as r ea*i0ed &%en HD!C Standar d +i( e &as t%e on*y

*i( e "o)pany to $e -r anted a "er ti( i"ate o( r e-istr ation. HD!C ar e t%e )ain s%ar e%o*der s

in HD!C Standar d +i( e# &it% 1.<# &%i*e Standar d +i( e o&ns 1.?. ;iven Standar d

+i( eLs existin- invest)ent in t%e HD!C ;r oup# t%is is t%e )axi)u) invest)ent a**o&ed

under "urr ent r e-u*ations. HD!C and Standar d +i( e %ave a *on- and "*ose r e*ations%ip

$ui*t upon s%ar ed va*ues and tr ust. T%e a)$ition o( HD!C Standar d +i( e is to )irr or t%e

su""ess o( t%e par ent "o)panies and $e t%e yar dsti" $y &%i"% a** ot%er insur an"e

"o)panyLs in India ar e )easur ed.

Pr odu"ts o(( er ed $y t%e "o)pany ar e9

INDIFIDU A+ P+ AN

• 6it% Pr o( it Endo&)ent Assur an"e

• 6it% Pr o( its 4oney =a"

• Sin-*e Pr e)iu) 6%o*e o( +i( e

• Ter ) assur an"e P*an

• +oan Cover Ter ) Assur an"e

• Per sona* Pension P*an

• C%i*dr en's P*an

;ROUP P+ ANS

• ;r oup Ter ) Insur an"e

• Deve*op)ent Insur an"e P*an



<<



• +i( e ;uar d

<A



• Extr a Pr ote"tion T%r ou-%

• Rider s

:. Retir e)ent P*ans

• !or ever +i( e

• +i( e *in pension

• +i( e ti)e pension

• Reassur e

<. Invest)ent P*ans

• Assur e Invest

• +i( e +in

A. ;r oup p*ans

• ;r oup Super annuation

• ;r oup ;r atuity

• ;r oup Ter ) Assur an"e



<?



O4 MOT AM 4 AHINDR A +I!E INSUR ANCE CO4P ANY

Esta$*is%ed in 1>A as Mota Capita* 4ana-e)ent !inan"e pr o)oted $y Uday

Mota t%e "o)pany %as "o)e a *on- &ay sin"e its entr y into "or por ate ( inan"e. It %as

da$$*ed in *easin-# auto ( inan"e# %ir e pur "%ase# invest)ent $anin-# "onsu)er ( inan"e#

$r oin- et". T%e "o)pany -ot its na)e Mota 4a%indr a as industr ia*ists Har is% 4a%indr a

and Anand 4a%indr a pi"ed a stae in t%e "o)pany. Mota 4a%indr a is today one o(

IndiaLs *eadin- !inan"ia* Institutions

O*d 4utua* p*" is an inter nationa* ( inan"ia* ser vi"es -r oup $ased in +ondon &it%

expandin- oper ations in *i( e assur an"e# asset )ana-e)ent# $anin- and -ener a*

insur an"e. O*d 4utua* is *isted on t%e +ondon Sto" Ex"%an-e 2&%er e it is in"*uded on

t%e !TSE 1 Index3 and a*so on t%e Sout% A( r i"an# Na)i$ian# 4a*a&i and Ji)$a$&e

sto" ex"%an-es. It %as 1A? year s o( exper ien"e in t%e *i( e insur an"e $usiness. T%e

Pr odu"ts o(( er ed $y t%e Co)pany ar e

Individua* P*an

• Mota Endo&)ent P*an

• Mota Ter ) P*an

• Mota Retir e)ent In"o)e P*an

• Mota C%i*d Advanta-e P*an

• Mota Pr e( err ed Ter ) P*an

• Mota Capita* 4u*tip*ier P*an

• Mota Sa( e Invest)ent P*an

• Rider s

• Ex"*usions Under Rider s



<B



;r oup P*an

Mota Ter ) ;r oup p*an

Mota ;r atuity ;r oup p*an

Mota Cr edit Ter ) ;r oup p*an

Rider s

Ex"*usions Under Rider s

Rur a*

Mota ;r a)ina =i)a Yo ,ana

<



4ET +I!E INSUR ANCE CO4P ANY

4et+i( e

!or a*)ost 1:B year s# 4etr opo*itan +i( e Insur an"e Co)pany %as $een insur in- t%e *ives

o( t%e peop*e &%o depend on t%e). T%eir su""ess is $ased on t%eir *on- %istor y o( so"ia*

r esponsi$i*ity# str on- *eader s%ip# sound invest)ents# and innovative pr odu"ts and

ser vi"es.

4et+i ( e =e-i ns

T%e or i-ins o( 4etr opo*itan +i( e Insur an"e Co)pany 24et+i( e3 -o $a" to 1?:# &%en a

-r oup o( Ne& Yor City $usiness)en r aised T1# to ( ound t%e Nationa* Union +i( e

and

He* pi n- and Hea* i n- Peop* e

In 1>># 4et+i( e Fi"e Pr esident Ha*ey !ise announ"ed t%at Rinsur an"e# not )er e*y as a

$usiness pr oposition# $ut as a so"ia* pr o-r a)R &ou*d $e t%e ( utur e po*i"y o( t%e "o)pany

Suppo rti n- Coun try and Co) )uni t y

Over t%e year s# 4et+i( e %as )ade a di(( er en"e $y suppor tin- ur $an r ene&a* pr o ,e"ts and

"o))unity ( inan"in-. T%e "o)panyLs so"ia* "o))it)ent and its "o))it)ent to t%e

se"ur ity o( it

s

po*i"y%o*d

e

r s

%a

ve

pr ove

n to $e

-ood $usin

ess

.4et+i ( e Today In 51 4et+i( e &as t%e ( ir st insur an"e "o)pany to esta$*is% a ( inan"ia*

%o*din- "o)pany &it% a nationa**y "%ar ter ed $an.

Pr odu"ts O(( er ed $y t%e "o)pany ar e

13 6%o*e +i( e

• 4et 1 Non par

• 4et 1 ;o*d par

• 4et 1 P*atinu) par



<>



53 Endo&)ent

• 4et ;o*d par

• 4et P*atinu) par

• 4et Gunior par

• 4et ,unior Non par

:3 4oney =a"

• 4et Su%

• 4et Gunior 4=

<3 Ter )

• 4et 4or ta-a-e Pr ote"tor

• 4et Rider s

• A""identa* deat%



A



=IR+ A SUN +I!E INSUR ANCE CO4 ANY +I4ITED

=ir *a Sun +i( e !inan"ia* Ser vi"es o(( er s a r an-e o( ( inan"ia* ser vi"es ( or r esident Indians

and Non Resident Indians. =r ou-%t to-et%er $y t&o *ar -e# po&er ( u* and r eputed $usiness

%ouses# t%e Aditya =ir *a ;r oup and Sun +i( e !inan"ia* # it is our ai) to o(( er diver se and

top ua*ity ( inan"ia* ser vi"es to "usto)er s. T%e 4utua* !und and Insur an"e "o)panies

pr ovide &ea*t% )ana-e)ent and pr ote"tion pr odu"ts to "usto)er s &%i*e t%e Distr i$ution

and Se"ur ities "o)panies pr ovide $r oer a-e and tr adin- ser vi"es ( or invest)ent in

euities# de$t se"ur ities# ( ixed deposits# et".

Insuran"e is not a$out so)et%in- -oin- &ron-. ItLs o(ten a$out t%in-s -oin- ri-%t. One o( t%e

&onders o( %u)an nature is t%at &e never $e*ieve anyt%in- "an a"tua**y -o &ron-. Sure*y# *i(e %asits s%are o( i(s. At =ir*a Sun +i(e %o&ever# t%ey $e*ieve it %as its eua**y p*easant s%are o( $uts as

&e**. =ir*a Sun +i(e stand "o))itted to %e*p you rea*i0e t%ose %appy )o)ents &%i"% )ae a *i(e.

=e it *ivin- t%e sa)e *i(esty*e in your post retire)ent days or providin- a se"ure (uture (or your

*oved ones# in "ase so)et%in- %appens to you.

T%e *i(e insuran"e produ"ts o((ered $y t%e "o)pany are

Individua* *i( e

• Pr e)iu) =a" Ter ) P*an

• !*exi Se"ur e +i( e Retir e)ent P*an

• Sin-*e Pr e)iu) =ond

• =ir *a Sun +i( e Ter ) P*an

• !*exi +i( e +ine 6%o*e +i( e P*an

• !*exi Cas% !*o& 4oney $a" P*an

;r oup +i( e

• Pr o ;r oup Ter ) Insur an"e



• ;r oup Super annuation P*an

• ;r oup ;r atuity P*an

A1



4 A NE6 YORM +I!E INSUR ANCE CO4P ANY +TD.

4ax Ne& Yor +i( e today e)er -ed as t%e "ountr yLs *eadin- pr ivate *i( e insur an"e

"o)pany %avin- r e"or ded a su) assur ed o( over Rs 51 "r or e ( or t%e year endin- 4ar "%

:1# 55. T%is &as t%e ( ir st ( u** year o( oper ations ( or 4ax Ne& Yor +i( e.

T%e "o)pany %as so*d over ?<# po*i"ies in t%e *ast ( inan"ia* year . T%e tota* annua*i0ed

( ir st year pr e)iu) ( or t%e ( inan"ia* year &as over Rs <: "r or e &it% t%e !ir st Year

Pr e)iu) In"o)e a)ountin- to over Rs : "r or e. T%is %as ex"eeded t%e expe"tations o(

t%e "o)pany and t%e pr o ,e"tions as su$)itted to IRD A. Over B per "ent o( t%e pr e)ia

in"o)e &as ( r o) pr ote"tion8or iented 6%o*e +i( e Po*i"ies# &%i"% r ein( or "es t%e

"o)panyLs ( o"us on pr ovidin- t%e tr ue va*ue o( *i( e insur an"e to t%e "usto)er

;iven t%e $etter8t%an8expe"ted per ( or )an"e o( t%e "o)pany# t%e s%ar e%o*der s %ave

in"r eased t%eir invest)ent in t%e "o)pany to Rs 5A "r or e &it% an aut%or i0ed s%ar e

"apita* to Rs : "r or e )ain- 4ax Ne& Yor +i( e Insur an"e Co)pany a)on- t%e

%i-%est "apita*i0ed *i( e insur an"e "o)panies in India

4ax Ne& Yor +i( e a*so )et its "o))it)ent ( or t%e r ur a* and so"ia* se"tor s.

T%e "o)pany %as 11 o(( i"es# over 1> A-ent Advisor s and over <> e)p*oyees. 4ax

Ne

& Yor +i( e

$e

*ie

ves

in de

*ive

r in- top va

*ue

to a

** its

s

ta

e

%o*de

r s

. As

pa

r t o( t%e

$es

tpr a"ti"es adopted# t%e Co)pany instituted satis( a"tion sur veyLs "ondu"ted $y independent

a-en"ies to )easur e t%e satis( a"tion *eve*s o( its "usto)er s# a-ents and e)p*oyees. 4ax

Ne& Yor +i( e %as "*ear *y e)er -ed as de*iver in- top va*ue a"r oss a** t%ese stae%o*der s

4ax Ne& Yor +i( e o(( er s a suite o( ( *exi$*e pr odu"ts. It %as ei-%t $ase pr odu"ts and

nine options @ r ider s t%at "an $e "usto)i0ed to over 5A "o)$inations ena$*in-



"usto)er s to "%oose t%e po*i"y t%at $est ( its t%eir need

A5



T%e pr odu"ts ar e

6%o*e +i( e Par ti"ipatin- d Conver ti$*e

6%o*e +i( e8Non8Par ti"ipatin-#

C%i*dr en Endo&)ent at a-e 1#

C%i*dr en Endo&)ent at a-e 5<#

58year Endo&)ent Par ti"ipatin- Po*i"y#

Endo&)ent to a-e ?#

!ive8year Ter ) Rene&a$*e an#

Easy Ter )

A:



= AG AG A++I ANJ +I!E INSUR ANCE CO4P ANY +I4ITED

=a ,a , A**ian0 *i( e Insur an"e Co)pany +i)ited is a ,oint ventur e $et&een =a ,a ,

Auto +i)ited and A**ian0 A; o( ;er )any. =ot% en ,oy a r eputation o( exper tise# sta$i*ity

and str en-t%. =a ,a , A**ian0 ;ener a* Insur an"e r e"eived t%e Insur an"e Re-u*ator y and

Deve*op)ent Aut%or ity 2IRD A3 "er ti( i"ate o( Re-istr ation 2R:3 on 4ay 5nd# 51 to

"ondu"t ;ener a* Insur an"e $usiness 2in"*udin- Hea*t% Insur an"e $usiness3 in India. T%e

Co)pany %as an aut%or i0ed and paid up "apita* o( Rs 11 "r or es. =a ,a , Auto %o*ds B<

and A**ian0# A;# %o*ds t%e r e)ainin- 5? ;er )any.

In its ( ir st year o( oper ations# t%e "o)pany %as a"uir ed t%e No. 1 status a)on-

t%e pr ivate non8*i( e insur er s. As on :1st 4ar "% 5:# =a ,a , A**ian0 ;ener a* Insur an"e

)aintained its *eader s%ip position $y -ar ner in- a pr e)iu) in"o)e o( Rs.: Cr or es.

=a ,a , A**ian0 a*so $e"a)e one o( t%e ( e& "o)panies to )ae a pr o( it in its ( ir st ( u** year

o( oper ations. =a ,a , A**ian0 )ade a pr o( it a( ter tax o( Rs.>.? "r or es

=a ,a , A**ian0 today %as a net&or o( <5 o(( i"es spr ead a"r oss t%e *en-t% and

$r eadt% o( t%e "ountr y. !r o) Sur at to Si*i-ur i and Ga))u to T%ir uvanant%apur a)# a** t%e

o(( i"es ar e inter "onne"ted &it% t%e Head O(( i"e at Pune.

In t%e ( ir st %a*( o( t%e "urr ent ( inan"ia* year # 5<8A# =a ,a , A**ian0 -ar ner ed a

pr e)iu) in"o)e o( Rs. <A "r or es# a"%ievin- a -r o&t% o( < and r e-ister ed a A5

-r o&t% in Net pr o( its o( Rs.5 Cr or es over t%e *ast year ( or t%e sa)e per iod. In t%e

( inan"ia* year 5:8<# t%e pr e)iu) ear ned &as Rs.< Cr or es# &%i"% is a ,u)p o( ?

and t%e pr o( it 0oo)ed $y 15A to Rs. 51.? Cr or es



A<



CH APTER <

AN A+YSIS AND INTERPRET ATION

AA



<.1 INTRODUCTION TO AN A+YSIS9

In or der to

extr

a"t )

eanin-( u* in( or )

ation ( r o) t%

e d

ata t%

e). T%

e an

a*y

sis "a

n $e

"ondu"ted $y usin- si)p*e statisti"a* too*s *ie per "enta-es# aver a-es and )easur es

o( disper sion. A*ter native*y t%e "o**e"ted data )ay $e ana*y0ed# t%e data ana*ysis is

"arr ied out. T%e data ar e ( ir st edited# "oded and ta$u*ated ( or ana*y0in- $y usin-

dia-r a)s# -r ap%s# "%ar ts# pi"tur es et". Data ana*ysis is t%e pr o"ess o( p*annin- t%e

data in an or der ed ( or )# "o)$inin- t%e) &it% t%e existin- in( or )ation and

extr a"tin- ( r o) t%e).

Inter pr etation is t%e pr o"ess o( dr a&in- "on"*usions ( r o) t%e -at%er ed data in t%e

study. In t%is r esear "% t%e r esear "%er %as ana*y0ed t%e data usin- per "enta-es and

-r ap%s.

<.5 D ATA AN A+YSIS TOO+S USED9

In t%is r esear "% t%e data ana*ysis too*s used ar e per "enta-es and -r ap%s. T%e

var ious attr i$utes &er e ana*y0ed separ ate*y and t%e i)por tan"e to ea"% &as

"a*"u*ated on t%e $asis o( t%e per "enta-e. T%e r an %avin- t%e )axi)u)

per "enta-e &as taen to $e pr e( err ed i)por tan"e to t%e par ti"u*ar attr i$ute.

A( ter *ooin- at ea"% attr i$ute separ ate*y# a** t%e attr i$utes &er e "onsider ed

to-et%er to deve*op a )ap on t%e )ost pr e( err ed r an ( or a** t%e attr i$utes.

A?



T A=+E 1

A;E O! RESPONDENTS

S+.NO A;E IN YE ARS NU4=ERO!

RESPONDENTS

PERCENT A;EO!

RESPONDENTS

1. 1> 5 5< <

5. 5> : 1: 5?

:. :> < ? 15

<. <> A ? 15

A. A> ?

?. ?> B 1 5

TOTA+ A 1

SOURCE 98 SURFEY D AT A

IN!ERENCE9 T%e a$ove ta$*e "*assi( ied t%e r espondents a""or din- to t%eir a-e -r oup.

T%e )a ,or ity o( t%e r espondents $e*on- to t%e a-e -r oup 1> to 5 year s &it% < and t%e

se"ond a-e -r oup is 5> to : year s &it% 5?# ( o**o&ed $y :> to < year s and <> to A

year s &it% 15 ea"%.

AB



;R APH 1

A;E O! RESPONDENTS

?

<

<

:5?

5

1

1> 8 5 5> 8 :

YRS YRS

15 15

:> 8 < <> 8

YRS YRS

5

> 8 ? ?> 8 B

YRS YRS



A



;R APH 5

DI!!ERENCI ATION O! THE RESPONDENTS INTO 4 A+E AND !E4 A+E

B ?

?

A

<

:5

:

5

1



?C



TA=+E :

DI!!ERENCI ATION O! RESPONDENTS = ASED ON THEIR OCCUP ATION

S+.NO OCCUP ATION NU4=ER O!RESPONDENTS

PERCENTA;EO!

RESPONDENTS

1. STUDENTS 5 <

5. ;OFERN4ENTE4P+OYEES

5 <

:. PRIFATEE4P+OYEES

5< <

<. HOUSE 6IFES 5 <

A. RETIREDPERSONS

5 <

TOTA+ A 1


IN!ERENCE9 It "ou*d $e in( err ed t%at )a ,or ity o( "onsu)er s o( *i( e insur an"e po*i"ies

ar e pr ivate e)p*oyees &it% < and ;over n)ent e)p*oyees &it% <# ( o**o&ed $y

students# %ouse &ives and r etir ed per sons &it% < ea"%.

?1



;R APH :

DI!!ERENC

I AT

ION O! RE

SPONDENT

S = A

SED ON THE

IR OCCUP AT

ION

?

<

< <

:

5

1

< < <



?5



TA=+E <

T A=+E SHO6IN; INCO4E ;ROUP O! RESPONDENTS

S+.NO INCO4E;ROUP

NU4=ER O!RESPONDENTS

PERCENT A;EO!

RESPONDENTS

1. +ESS TH ANA

A 1

5. A1 1# 1? :5

:. 11 1A 1B :<

<. 1A1 5 1?

A. 51 5A 5 <

?. ;RE ATER

TH AN :

1 5

B. NI+ 1 5

TOTA+ A 1

SOURCE9 8 SURFEY D AT A

IN!ERENCE9 T%e )a ,or ity o( do)inant in"o)e -r oup %avin- *i( e insur an"e po*i"ies

$e*on- to t%e in"o)e -r oup o( 1#1 to 1A## &%i"% is )idd*e "*ass -r oup. !o**o&ed

$y t%e in"o)e -r oup o( A#1 to 1#.

?:



;R APH <

;R APH SHO6IN; INCO4E ;ROUP O! RESPONDENTS

<

:A

:

5A

5

1A

1

A

A A1 8

1

11 8 1A1 8 51 8 V5A NI+

1A 5 5A



?<



TA=+E A

DI!!ERENCI ATION O! RESPONDENTS ACCORDIN; TO THE ASSETS

O6NED

S+.NO ASSETS NU4=ER O!RESPONDENTS

PERCENT A;E O!RESPONDENTS

1. HOUSE 1> :

5. T6O6HEE+ER

5A A

:. C AR ? 15

TOT A+ A 1


IN!ERENCE9 T%is ta$*e %e*ps us to no& t%at )ost o( "onsu)er s &it% *i( e insur an"e

po*i"ies o&n t&o &%ee*er s &it% A# : o( "onsu)er s o&n %ouse and15 o( t%e

"onsu)er s o&n "ar .

?A



;R APH A

DI!!ERENC

I AT

ION O! RE

SPONDENT

S ACCORD

IN; TO THE A

SSET

S

O6NED

?

< :

:

5

15

1

HOUSE T6O C AR

6HEE+ER

??



TA=+E ?

4 ARMET SH ARE O! DI!!ERENT +I!E INSUR ANCE CO4P ANIES

CO4P ANIES NU4=ER O!RESPONDENTS

PERCENTA;E O!RESPONDENTS

+IC :> B

T AT A AI; 1 5

HD!C : ?

ICICI <

4 A NE6YORM 1 5

MOT AM 4 AHINDR A 1 5

A++I ANCE = AG AG 1 5


IN!ERENCE9 T%is ta$*e %e*ps us to under stand t%e )ar et s%ar e o( di(( er ent *i( e

insur an"e "o)panies. +IC %as a )a ,or s%ar e o( B # ( o**o&ed $y ICICI Pr udentia* &it%

)ar et s%ar e# ( o**o&ed $y HD!C Standar d +i( e &it% ? )ar et s%ar e.

?B



;R APH ?

4 ARMET SH ARE O! DI!!ERENT +I!E INSUR ANCE CO4P ANIES

>

B

B

?

<

:

5

15

?

5 5 5



?



TA=+E B

T A=+E SHO6IN; ATTRI=UTES !RO4 RESPONDENTS

S+.NO ATTRI=UTE RESPONDENTS R ANM

1. RETURN ONINFEST4ENT

1B 1

5. CO4P ANYREPUT ATION

1: 5

:. PRE4IU4OUT!+O6

1 :

<. SERFICEU A+ITY

B <

A. PRODUCTU A+ITY

: A


IN!ERENCE9 T%is ta$*e s%o&s t%e str en-t%s and &eanesses o( t%e "o)pany# and &%at

ar e t%e i)por tant "r iter ia or attr i$utes on &%i"% de"ision )ain- is done. !r o) t%is ta$*e

&e "an in( er t%at "onsu)er s -ive )or e i)por tan"e ( or Retur n on invest)ent# se"ond*y

t%ey pr e( er "o)pany r eputation# and t%en pr e)iu) out( *o& ( o**o&ed $y ser vi"e ua*ity

and pr odu"t ua*ity.

?>



;R APH B

;R APH SHO6IN; ATTRI=UTES !RO4 RESPONDENTS

1

1?

1<

15

1

?

<

5



1B

1:

1

B

:

B



;R APH

! ACTORS 6HICH IN!+UENCED TO SE+ECT A +I!E INSUR ANCECO4P ANY

:

55

5

1

11

1

?

51



B5



TA=+E >

FA+UE O! RESPONDENTS +I!E INSUR ANCE PO+ICY

S+.NO A4OUNT NU4=ER O!RESPONDENTS


1. 1

5. 1 5A A 1

:. 5A A 1?

<. A81 1A :

A. V 1 55 <<


IN!ERENCE9 It "an $e in( err ed t%at )a ,or ity o( "onsu)er s $uy t%e *i( e insur an"e po*i"y

&%i"% "osts )or e t%an Rs. 1## ( o**o&ed $y Rs. A# to Rs.1### ( o**o&ed $y

Rs. 5A# to R

s. A#.

B:



;R APH >

FA+UE O! RES

PONDENTS

+I!E

IN

SUR ANCE PO+

ICY

<

<

:

:

5

5

1

1



<<

:

1?

1

V 1 1 8

5

5 8 8 V 1

1

B<



TA=+E 1

RESPONDENTS PRE!ERENCE TO INFEST THEIR 4ONEY



INSUR ANCECO4P ANY

5< <

= ANM 5? A5

TOTA+ A 1


IN!ERENCE9 !r o) t%e ta$*e it is "*ear t%at )a ,or ity o( peop*e 2A53 pr e( er to invest in

=an and ot%er s 2<3 pr e( er to invest in Insur an"e "o)panies.

BA



;R APH 1

RESPONDENTS PRE!ERENCE TO INFEST THEIR 4ONEY

:

5

1

<>

<

<B

<?



5

<

INSUR ACE =ANM

CO4P ANY

B?



;R APH 11

S ATIS! ACTION O! RESPONDENTS 6ITH CURRENT +I!E INSUR ANCECO4P ANY

1 ><

>

B

?

A

<

:

5

1 ?

YES NO



B



TA=+E 15

R ATIN;S O! THE SERFICES O!!ERED =Y THE RESPONDENT'S +I!EIN

SUR ANCE CO4P ANY

R ATIN;S NU4=ER O!RESPONDENTS

PERCENT A;E O!RESPONDENTS

ECE++ENT B 1<

FERY ;OOD 15 5<

;OOD 5 <

AFER A;E 11 55

POOR

TOT A+ A 1


IN!ERENCE9 !r o) t%is ta$*e it "ou*d $e in( err ed t%at < o( t%e "onsu)er s %ave r ated

ser vi"e o(( er ed as -ood# 5< o( t%e) %ave r ated t%e) as ver y -ood# 55 o( t%e) %ave

r ated as aver a-e and 1< o( t%e) %ave r ated as ex"e**ent.

B>



;R APH 15

R ATIN;S O! THE SERFICES O!!ERED =Y THE RESPONDENT'S +I!EINSUR ANCE CO4P ANY

<

<

:

:

5

5

1

1

<

5<55

1<



TA=+E 1:

CONSU4ERS 6I++IN;NESS TO CO44UNIC ATE THE SERFICE O!!ERED

=Y THEIR +I!E INSUR ANCE CO4P ANY

RESPONSES NU4=ER O!

RESPONDENTS

PERCENT A;E O!

RESPONDENTS

YES :> B

NO 11 55

TOT A+ A 1


IN!ERENCE9 !r o) t%is ta$*e it "an $e noted t%at t%e )a ,or ity o( "onsu)er s 2B3

&ou*d *ie to "o))uni"ate to ot%er s a$out t%e ser vi"e o(( er ed $y *i( e insur an"e

"o)panies and 55 o( "onsu)er s &ou*d not *ie to "o))uni"ate t%e ser vi"e o(( er ed.

1



;R APH 1:

CONSU4ERS 6I++IN;NESS TO CO44UNIC ATE THE SERFICE O!!ERED

=Y THEIR +I!E INSUR ANCE CO4P ANY

>

B

?

<

:

5

1



B

55

YES NO

5



TA=+E 1<

NU4=ER O! +I!E INSUR ANCE CO4P ANY MNO6N =Y RESPONDENTS

NU4=ER O! +I!EINSUR ANCE

CO4P ANY MNO6N



A 1 :?

A B 5> A

1 5 <

V1 1 5

TOT A+ A 1


IN!ERENCE9 T%is ta$*e %e*ps us to no& t%e "onsu)er a&ar eness a$out t%e *i( e

insur an"e "o)panies. A o( t%e "onsu)er s ar e a&ar e a$out A to B *i( e insur an"e

"o)panies# ( o**o&ed $y :? "onsu)er s &%o no& *ess t%an A *i( e insur an"e "o)panies.

:



;R APH 1<

NU4=ER O! +I!E INSUR ANCE CO4P ANY MNO6N =Y RESPONDENTS

B

?

<

:

5

1



:?

5

TO B to 1 V 1

<



TA=+E 1A

SCORES O! DI!!ERENT +I!E INSUR ANCE CO4P ANIES

CO4P ANIES SCORES R ANM

+IC :<A 1

ICICI PRUDENTI A+ 511 5

HD!C 1>< :

T AT A AI; 15: <

IN; FYSYA 151 A

=IR+A SUN+I!E 11 ?

4ET +I!E > B

OTHERS <1

SOURCE98 SURFEY D AT A

IN!ERENCE9 !r o) t%e ta$*e &e "an r an t%e *i( e insur an"e "o)panies# +IC stands ( ir st#

( o**o&ed $y ICICI Pr udentia* ( o**o&ed $y HD!C Standar d *i( e# ( o**o&ed $y T AT A AI;.

A



B

?

<

:

5

1

?



CH APTER A

!INDIN;S# CONC+USION AND

SU;;ESTIONS

B



A.1 !INDIN;S

T%e )a ,or ity o( r espondents $e*on-ed to t%e a-e -r oup o( 1> to 5

year s &%i"% ( or )ed < ( o**o&ed $y a-e -r oup o( 5> to : year s

&%i"% ( or )ed 5?.

T%e )a*e "onsu)er s "aptur e t%e 4ar et s%ar e &it% ?# ( o**o&ed $y

t%e ( e)a*e "onsu)er s &it% :5.

T%e )a ,or ity o( t%e "onsu)er s o( *i( e insur an"e "o)panies ar e pr ivate

e)p*oyees &it% < and ;over n)ent e)p*oyees &it% <

T%e do)inant in"o)e -r oup %avin- *i( e insur an"e -r oup $e*on- to t%e

-r oup o( 11 to 1A# ( o**o&ed $y A#1 to 1#.

+IC %as a )a ,or )ar et s%ar e o( B.

T%e ( a"tor s &%i"% in( *uen"ed to se*e"t a *i( e insur an"e "o)pany is t%e

per sona* ( a"tor # ( o**o&ed $y ( a)i*y# ( r iends# a-ents and

adver tise)ents.



A.: RECO44END ATIONS AND SU;;ESTIONS

6it% r e-ar d to insur an"e "o)panies# "onsu)er s r espond at di(( er ent r ates# dependin- on

t%e "onsu)er s "%ar a"ter isti"s. Hen"e Insur an"e "o)panies s%ou*d tr y to $r in- t%eir ne&

pr odu"t to t%e attention o( potentia* ear *y adopter s.

a

3 Due to t%

e int

ense

"o)p

etition in t%

e *i(

e in

sur

an

"e )

a

r et# t%

e *i(

e in

sur

an

"e

"o)panies %ave to adopt $etter str ate-ies to attr a"t )or e "usto)er s.

$3 Meepin- t%e "ost# ua*ity and r etur n on invest)ent in ta"t is ne"essar y in or der to

ta"*e t%e "o)petition.

"3 +i( e insur an"e pr odu"ts ar e taen )ain*y $y )idd*e and %i-%er in"o)e -r oup.

Hen"e t%ey s%ou*d $e r e-ar ded as )ai) tar -eted in"o)e -r oups. +i( e insur an"e

pr odu"ts &%i"% ar e suita$*e ( or *o&er in"o)e -r oup s%ou*d a*so $e r e*eased so

t%at t%e )ar et s%ar e in"r eases.

d3 Retur n on invest)ent# "o)pany r eputation and pr e)iu) out( *o& ar e )ost

pr e( err ed attr i$utes t%at ar e expe"ted $y t%e r espondents. Hen"e -r eater ( o"us

s%ou*d $e -iven to t%ese attr i$utes.

>1



=I=+IO;R APHY

>:



=I=+IO;R APHY

13 Dr . Sin-%# Avtar # Pr in"ip*es o( Insur an"e +a&# S C%and @ Sons# De*%i#5:.

53 +eon ;. S"%i(( )an# +estie +a0ar Man&# Consu)er =e%aviour # Hi)a*aya

Pu$*is%er s# De*%i#5<

:3 Mot*er P%i*ip# 4aretin- 4ana-e)ent# Pear son Edu"ation In". 11t%

Edition.

<3 Stanton 6i**ia) G# Et0e* 4i"%ae* G# 6a*er =r u"e G# !unda)enta*s o(

4aretin-# 4";r a&8Hi** inter nationa*# Sin-apor e# 55

A3 Ravi S%anar # Ser vi"es 4ar etin-# Pr enti"e Ha**# 5.

?3 Fa*ar ie A0it%a)*# 4arr y Go =ittner # Ser vi"es o( 4ar etin-# Pr enti"e Ha**# 51

B3 Rut"%nee .T @ M.S. Ar un Mu)ar #Consu)er pr e( er en"e @ $uyin- per "eption o(

r eady )ade si* -ar )ents#P;DS4#Inter nationa* "enter ( or tr ainin- @ r esear "% in

tr opi"a* ser i"u*tur e#

Ne&spaper s9

• E"ono)i" Ti)es

• =usiness +ine



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6or *d 6ide 6e$9

• &&&.*i"."o)

• &&&.ir da.or -

• &&&.&iipedia."o)



>A



ANNEURE

>?



UESTI

ONN AI

RE A STUDY CONDUCTED TO UNDERSTAND THE CONSU4ER'S PERCEPTION A=OUT +I!E INSUR ANCE PO+ICIES

1. Na)e 9

5. A-e9

:. Addr ess9

: a. P%one nu)$er 9

<. O""upation9

A. 4ont%*y in"o)e9

A

1A#185

A181#

5#185A#

1#81A#

V5A#

Ni*

?. Do You O&n

House T&o 6%ee*er Car

B. Do you %ave a +i( e Insur an"e Po*i"y &it% any +i( e Insur an"eCa)panyW

Yes No

B.a3 I( yes# na)e t%e Co)pany XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

$3 Na)e t%e po*i"y &%i"% you o&nXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

>B



. 6%at ( a"tor s do you "onsider &%i*e se*e"tin- a *i( e insur an"e "o)panyW

Pr e)iu) Out( *o& Ser vi"e ua*ityRetur n on Invest)ent

Co)pany Reputation Pr odu"t ua*ity

>. 6%at ( a"tor s in( *uen"ed to se*e"t a +i( e Insur an"e "o)panyW

Per sona* inter est A-ents

!r iends !a)i*y Adver tise)ents ot%er s

1. 6%at is t%e va*ue o( your *i( e insur an"eW

V1#A#81##

1#85A# 5A#8A# V1##

11. Do you pr e( er to invest your )oney in a Insur an"e "o)pany or in a =anW

Insur an"e Co)pany =an

15. Ar e you satis( ied &it% your "urr ent +i( e Insur an"e Co)panyW

Yes No

I( Yes 6%yW XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

I( No 6%yW XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

1:. Ho& do you r ate t%e ser vi"e o(( er ed $y your +i( e Insur an"e Co)panyW

Ex"e**ent Aver a-e

Fer y ;ood ;ood Poor

>



1<. 6ou*d you *ie to "o))uni"ate t%e ser vi"e o(( er ed $y your +i( e Insur an"e

Co)pany to ot%er sW

Yes

No

1A. Ho& )any +i( e insur an"e Co)pannies do you no&W

A A8B 81 V1

1?. Ho& do you r ate t%

e ( o**o&in- +i(

e In

sur

an

"e Co)p

ani

esW

+IC HD!CIN; FYSYA4ET +I!E INDI A INSUR ANCE =IR+ A SUN+I!EICICI Pr udentia* T AT A AI;Ot%er s

31426238 Insurance Project

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Transcript of 31426238 Insurance Project