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A

PROJECT REPORT ON

MARKET POTENTIAL OF TATA AIG LIFE INSURANCE COMPANY LTD

A Project Report Submitted For Partial Fullfillment Of The Degree Of Bachelors of

Business Administration course curriculum of Christ University,Bangalore.

Submitted by:

Rohit Prasad

BBA-3rd

year

Regn.no: -1011628


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Acknowledgement

Sometimes words fall short to show gratitude, the same happened with me during this

project. The immense help and support received from Achievers Management Group and

Tata AIG Insurance Company overwhelmed me during the project. My sincere gratitudeto Ms. Bhama.T for her support and Mr. Ranjan Jana (Partner AMG, Kolkata), for

providing me with an opportunity to work with TATA AIG Life Insurance company.

I am highly indebted to Mr. Ravi Prakash, (Asst. Sales Manager, Tata AIG, Kolkata) and

company project guide, who has provided me with the necessary information and his

valuable suggestion and comments on bringing out this report in the best possible way.

I am grateful to all of the members of Tata AIG Insurance Company, Kolkata branch,

who have helped me to carry on the project.

Last but not the least; my heartfelt love for my parents, whose constant support and

blessings has helped me throughout this project.


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PREFACE

The liberalization of the Indian insurance sector has been the subject of much heated

debate for some years. The policy makers where in the catch 22 situation wherein for one

they wanted competition, development and growth of this insurance sector which is

extremely essential for channeling the investments in to the infrastructure sector. At the

other end the policy makers had the fears that the insurance premium, which are

substantial, would seep out of the country; and wanted to have a cautious approach of

opening for foreign participation in the sector.

As one of the rare occurrences the entire debate was put on the back burner and the IRDA

saw the day of the light thanks to the maturing polity emerging consensus among factions

of different political parties. Though some changes and some restrictive clauses as

regards to the foreign participation were included the IRDA has opened the doors for the

private entry into insurance.

Whether the insurer is old or new, private or public, expanding the market will present

multitude of challenges and opportunities. But the key issues, possible trends,

opportunities and challenges that insurance sector will have still remains under the realms

of the possibilities and speculation. What is the likely impact of opening up In diasinsurance sector?

The large scale of operations, public sector bureaucracies and cumbersome procedures

hampers nationalized insurers. Therefore, potential private entrants expect to score in the

areas of customer service, speed and flexibility. They point out that their entry will mean

better products and choice for the consumer. The critics counter that the benefit will be

slim, because new players will concentrate on affluent, urban customers as foreign banks

did until recently. This seems to be a logical strategy. Start-up costs-such as those of

setting up a conventional distribution network-are large and high-end niches offer better

returns. However, the middle- market segment too has great potential. Since insurance is

a volumes game. Therefore, private insurers would be best served by a middle-market

approach, targeting customer segments that are currently untapped.


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EXECUTIVE SUMMARY

This project has been a great learning experience for me; at the same time it gave me

enough scope to implement my analytical ability. Tata Group is one of the India'slargest and most respected business groups. Tata Group's name is synonymous with

India's industrialization. Tata AIG Insurance Solutions is one of the leading insurance

companies that provide both life insurance as well as general insurance. This pioneer

company is a joint collaboration between the American International Group, Inc. (AIG)

and Tata Group. They own the company in the ratio of 26:74. It is a leading financial

institution that has carved a niche for itself all over the world.

Tata AIG Insurance Company is having different insurance policies. At the end of the

project people will be knowledgeable about various insurance organizations and different

products taking into considerations hundred sample sizes in Kolkata city. Project is on the

market potential study of Tata AIG Insurance Company in Kolkata city. To get to know a

questionnaire has been prepared which contains open ended and close ended questions.

Firstly pilot study has been done through hundred questionnaires. For collecting the data

field survey method, personal interview technique has been used. Secondary data has

been collected from the company. The data collected are represented into suitable tabular

forms for drawing inferences. Quantitative techniques like averages, percentages, range,

two-way tables, chi- square tests analysis has been applied as per the requirement. The

level of preference, perception of the customers about the product and company were

identified by means of a scoring scheme. For the representation of data various charts and

graphs are used as per requirement.


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CHAPTER 1

INTRODUCTION TO INSURANCE


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.1. INTRODUCTION

"Insurance is a contract between two parties whereby one party called insurer undertakes

in exchange for a fixed sum called premiums, to pay the other party called insured a fixed

amount of money on the happening of a certain event."

Insurance may be described as a social device to reduce or eliminate risk of life andproperty. Under the plan of insurance, a large number of people associate themselves by

sharing risk, attached to individual.

With the help of Insurance, large number of people exposed to a similar risk makes

contributions to a common fund out of which the losses suffered by the unfortunate few,

due to accidental events, are made good. Insurance is a tool by which fatalities of asmall number are compensated out of funds collected from plenteous. Gradually as

competition increased benefits given by industry to its customers increased by leaps and

bounds. Insurance is a basic form of risk management, which provides protection against

possible loss to life or physical assets. Person who seeks protection against such loss is

termed as insured, and company that promises to honor claim, in case such loss is

actually incurred by insured, is termed as Insurer. In order to get insurance, insured is

required to pay to insurance company a certain amount called premium. Premium iscollected by insurance companies which acts as trustee to pool created through

contributions made by persons seeking to protect themselves from common risk. Any

loss to the insured in case of happening of an uncertain event is paid out of this pool.

Insurance business is divided into four classes:

Life Insurance

Fire Marine Miscellaneous Insurance.


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Insurance provides:

Protection to investor.

Accumulation of savings.

Channeling these savings into sectors needing huge long term investment.

FUNCTION OF INSURANCE:

Provide protection: The primary function of insurance is to provide protection against

future risk, accidents and uncertainty. Insurance cannot check the happening of the risk,

but can certainly provide for the losses of risk. Insurance is actually a protection against

economic loss, by sharing the risk with others.

Collective bearing of risk: Insurance is an instrument to share the financial loss of few

among many others. Insurance is a mean by which few losses are shared among larger

number of people. All the insured contribute the premiums towards a fund and out of

which the persons exposed to a particular risk is paid.

Assessment of risk: Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk. Risk is the basis for determining the premium rate

also. Provide certainty: Insurance is a device, which helps to change from uncertainty to

certainty. Insurance is device whereby the uncertain risks may be made more certain.

Small capital to cover larger risk: Insurance relieves the businessmen from security

investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of industries: Insurance provides development

opportunity to those larger industries having more risks in their setting up. Even the

financial institutions may be prepared to give credit to sick industrial units which have


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insured their assets including plant and machinery.

Means of savings and investment: Insurance serves as savings and investment,

insurance is a compulsory way of savings and it restricts the unnecessary expenses by the

insured's For the purpose of availing income-tax exemptions also, people invest in

insurance.

Source of earning foreign exchange: Insurance is an international business. The country

can earn foreign exchange by way of issue of marine insurance policies and various other

ways.

Risk free trade: Insurance promotes exports insurance, which makes the foreign trade

risk free with the help of different types of policies under marine insurance cover.

LIFE INSURANCE:

Life insurance is a contract under which the insurer (Insurance Company) in

Consideration of a premium paid undertakes to pay a fixed sum of money on The death

of the insured or on the expiry of a specified period of time Whichever is earlier. In case

of life insurance, the payment for life insurance policy is certain. The Event insured

against is sure to happen only the time of its happening is not known. So life insurance isknown as Life Assurance. The subject matter of insurance is life of human being. Life

insurance provides risk coverage to the life of a person. On death of the person insurance

offers protection against loss of income and compensate the titleholders of the policy.

ROLES OF THE LIFE INSURANCE:

Life insurance as an investment: - Insurance products yield more than any other

investment instruments and it also provides added incentives or bonus offered by

insurance companies.

Life insurance as risk cover: - Insurance is all about risk cover and protection of life.

Insurance provides a unique sense of security that no other form of invests can provide.


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Life insurance as tax planning: - Insurance serves as an excellent tax saving mechanism

too.

IMPORTANCE OF THE LIFE INSURANCE:

Protection against untimely death: - Life insurance provides protection to the

dependents of the life insured and the family of the assured in case of his untimely death.

The dependents or family members get a fixed sum of money in case of death of the

assured.

Saving for old age: - After retirement the earning capacity of a person reduces. Life

insurance enables a person to enjoy peace of mind and a sense of security in his/her old

age. Promotion of savings: - Life insurance encourages people to save moneycompulsorily. When life policy is taken, the assured is to pay premiums regularly to keep

the policy in force and he cannot get back the premiums, only surrender value can be

returned to him. In case of surrender of policy, the policyholder gets the surrendered

value only after the expiry of duration of the policy.

Initiates investments: - Life Insurance Corporation encourages and mobilizes the public

savings and canalizes the same in various investments for the economic development of

the country. Life insurance is an important tool for the mobilization and investment of

small savings.

Credit worthiness: - Life insurance policy can be used as a security to raise loans. It

improves the credit worthiness of business. Social Security: - Life insurance isimportant for the society as a whole also. Life insurance enables a person to provide for

education and marriage of children and for construction of house. It helps a person to

make financial base for future.

Tax Benefit: - Under the Income Tax Act, premium paid is allowed as a deduction from

the total income under section 80C


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INSURANCE CYCLE:

Fig 1: Insurance cycle source: www.rma.usda.gov

Policy Renewal/Change Options/Application

The Insurance Cycle begins each year with the insurance offer. Actuarial documents are

published annually by the Risk Management Agency (RMA). The actuarial documents

list the plan of insurance, crop, type, variety, and practice that may be insured in a state

and county, and show the amounts of insurance, available insurance options, levels of

coverage, price elections, applicable premium rates, and subsidy amounts. The Special

Provisions of Insurance list program calendar dates, and general and special statements

which may further define, limit, or modify coverage.

Sales Closing/Cancellation/Termination Dates

Insurance applications must be completed and signed no later than the sales closing date

specified in the crop actuarial documents. Applications signed after the crop sales closing

date may be rejected by the insurance provider.
http://www.rma.usda.gov/http://www.rma.usda.gov/


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Insurance coverage is continuous and can be cancelled by either the insurance provider or

the policyholder for the following crop year by providing a written notice to the other

party no later than the cancellation date specified in the crop policy. For a policyholder

insured the previous crop year, any changes he or she wishes to make to the policy

coverage must be made on or before the crop sales closing date. The policy will

automatically renew for the subsequent crop year unless the policyholder cancels the

policy in writing on or before the crop cancellation date.

Insurance coverage may be terminated by the insurance provider for the following crop

year for nonpayment of outstanding debt by providing a written notice to the policyholder

no later than the termination date specified in the crop policy. The insurance provider

may terminate coverage on a crop if no premium is earned for three consecutive years.

Acceptance

Upon receipt of a properly completed and timely submitted insurance application, the

insurance provider will accept and process the application, unless the applicant is

determined to be ineligible under the contract or Federal statute or regulation. The

insurance provider will issue a summary of coverage and the appropriate policy

documents to the applicant. After the application is accepted, the policyholder may not

cancel the policy for the initial crop year.

Insurance Attaches

For annual crops, insurance attaches annually when planting begins on the insurance unit.

The crop must be planted on or before the crop's published final planting date unless late

or prevented planting provisions apply. If prevented planting provisions apply, and the

crop cannot be timely planted due to the causes specified in the crop provisions, such

acreage may be eligible for a prevented planting payment.

Acreage Reports

The policyholder must annually report for each insured crop in the county the number of

insurable and uninsurable acres planted or prevented from being planted if prevented


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planting is available for the crop, the date the acreage was planted, share in the crop, the

acreage location, farming practices used, and types or varieties planted to the insurance

provider on or before the applicable acreage reporting date specified in the crop actuarial

documents. This report is used by the insurance provider to establish the amount of

coverage and premium for the crop. Insurance providers may deny coverage if the

acreage report is filed after the applicable crop acreage reporting date.

Summary of Coverage

The insurance provider will process a properly completed and timely filed acreage report,

and issue to the policyholder a summary of coverage that specifies the insured crop, the

insured acres and amount of insurance or guarantee for each insurance unit. The

policyholder may make changes to the filed acreage report, if permitted by the insurance

provider.

Premium Billing

The annual premium is earned and payable at the time insurance coverage begins. The

insurance provider shall issue a premium billing based upon the information contained in

the acreage report no earlier than the premium billing date specified in the crop actuarial

documents. The premium billing will specify the amount of premium and anyadministrative fees that may be due. If the premium or administrative fees are not paid by

the date specified in the actuarial documents or policy, the insurance provider may assess

interest on the outstanding premium balance.

Notice of Damage or Loss

A written notice of damage or loss for each unit is to be filed by the policyholder within

72 hours of the policyholder's initial discovery of damage or loss but not later than 15days after the calendar date for the end of the insurance period unless otherwise stated in

the individual crop policy. The policyholder should refer to the individual crop provisions

for additiona l requirements in the event of damage or loss. These notifications provide

the opportunity for the insurance provider to inspect the crop and determine the extent of

damage or potential production before the crop is harvested or otherwise disposed of.


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Inspection

After the insurance provider receives the written notice of damage or loss, it will be

processed and, if necessary, a loss adjuster will be sent to inspect the damaged crop and

gather pertinent information concerning the damage. If the policyholder wishes to destroy

or not harvest the crop, the loss adjuster will gather the appropriate information, conduct

an appraisal to establish the crop's remaining value and complete any forms needed. If the

crop has been harvested or will not be harvested by the end of the insurance period, and

the policyholder wishes to file a claim for indemnity, the loss adjuster will gather the

appropriate information and assist the policyholder in filing the claim for indemnity. It is

the policyholder's responsibility to establish the time, location, cause, and amount of any

loss.

Indemnity Claim

After the claim for indemnity is processed by the insurance provider, an indemnity check

and a summary of indemnity payment will be issued showing any deductions to the

amount of indemnity for outstanding premium, interest, or administrative fees.

Contract Change Date

Changes to the insurance program may be made by RMA from one year to the next. The

insurance provider will notify the policyholder in writing of any changes to the policy,

actuarial documents, or the Special Provisions of Insurance prior to the calendar date for

contract changes specified in the crop policy. The policyholder will have the opportunity

to review the changes and, if he/she desires, continue the insurance coverage for the

following crop year, change the policy coverage, or cancel the insurance coverage. Any

changes to the policy coverage that the policyholder makes must be made no later thanthe crop sales closing date. If the policyholder wishes to cancel the policy, a written

notice must be submitted to the insurance provider on or before the crop cancellation

date.


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CHAPTER 2

INTRODUCTION TO INDIAN INSURANCE

INDUSTRY


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2.1. INDIAN INSURANCE INDUSTRY

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other relatedActs. With such a large population and the untapped market area of this population

Insurance happens to be a very big opportunity in India. Today it stands as a business

growing at the rate of 15-20 per cent annually. Together with banking services, it adds

about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the

penetration of the insurance in the country is very poor. Nearly 80% of Indian

populations are without Life insurance cover and the Health insurance. This is an

indicator that growth potential for the insurance sector is immense in India. It was due to

this immense growth that the regulations were introduced in the insurance sector and in

continuation Malhotra Committee was constituted by the government in 1993 to

examine the various aspects of the industry. The key element of the reform process was

Participation of overseas insurance companies with 26% capital. Creating a more

efficient and competitive financial system suitable for the requirements of the economy


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was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition

LIC started facing from these companies were threatening to the existence of LIC .since

the liberalization of the industry the insurance industry has never looked back and today

stand as the one of the most competitive and exploring industry in India. The entry of the

private players and the increased use of the new distribution are in the limelight today.

The use of new distribution techniques and the IT tools has increased the scope of the

industry in the longer run.

2.2. A BRIEF HISTORY OF THE INSURANCE SECTOR:

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 given in the following

table.

Some of the important milestones in the life insurance business in India are:

Years Milestones in the life insurance business in India

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.

Table 1


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The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British. Some of the important milestones in the general

insurance business in India are given in the following table.

Year Milestones in the general insurance business in India

1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business

1957 General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business

practices

1968 The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972 The General Insurance Business (Nationalization) Act, 1972 nationalized

the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the

National Insurance Company Ltd., the New India Assurance Company

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

Company Ltd. GIC incorporated as a company.

Table 2

1993 Setting up of Malhotra Committee 1994 Recommendations of Malhotra Committee

1995 Setting up of Mukherjee Committee

1996 Setting up of (interim) Insurance Regulatory Authority (IRA) Recommendations of

the IRA.

1997 Mukherjee Committee Report submitted but not made public


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1997 The Government gives greater autonomy to LIC, GIC and its subsidiaries with

regard to the restructuring of boards and flexibility in investment norms aimed at

channeling funds to the infrastructure sector.

1998 The cabinet decides to allow 40% foreign equity in private insurance companies-

26% to foreign companies and 14% to NRIs, OCBs and FIIs.

1999 The Standing Committee headed by Murali Deora decides that foreign equity in

private insurance should be limited to 26%. The IRA bill is renamed the Insurance

Regulatory and Development Authority (IRDA) Bill.

1999 Cabinet clears IRDA Bill.

2000 President gives Assent to the IRDA Bill.

2.3. INDIAN INSURANCE MARKET (HISTORY):

Insurance has a long history in India. Life Insurance in its current form was introduced in

1818 when Oriental Life Insurance Company began its operations in India. General

Insurance was however a comparatively late entrant in 1850 when Triton Insurancecompany set up its base in Kolkata. History of Insurance in India can be broadly

bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post

Nationalization. Life Insurance was the first to be nationalized in 1956. Life Insurance

Corporation of India was formed by consolidating the operations of various insurance

companies. General Insurance followed suit and was nationalized in 1973. General

Insurance Corporation of India was set up as the controlling body with New India, United

India, National and Oriental as its subsidiaries. The process of opening up the insurance

sector was initiated against the background of Economic Reform process which

commenced from 1991. For this purpose Malhotra Committee was formed during this

year who submitted their report in 1994 and Insurance Regulatory Development Act

(IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private

companies and Private Insurance Company effectively started operations from 2001.


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2.4. HOW BIG IS THE INSURANCE MARKET?

The insurance sector was opened up for private participation four years ago. For years

now, the private players are active in the liberalized environment. The insurance market

have witnessed dynamic changes which includes presence of a fairly large number of

insurers both life and non- life segment. Most of the private insurance companies have

formed joint venture partnering well recognized foreign players across the globe.

There are now 29 insurance companies operating in the Indian market 14 private life

insurers, nine private non-life insurers and six public sector companies. With many more

joint ventures in the offing, the insurance industry in India today stands at a crossroads as

competition intensifies and companies prepare survival strategies in a detariffed scenario.

There is pressure from both within the country and outside on the Government to increase

the foreign direct investment (FDI) limit from the current 26% to 49%, which would help

JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less

than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first

license for a standalone health company in the country as many more players wait to

enter. The health insurance sector has tremendous growth potential, and as it matures and

new players enter, product innovation and enhancement will increase. The deepening of

the health database over time will also allow players to develop and price products for

larger segments of society.

Insurance is a Rs.400 billion business in India, and together with banking services adds

about 7% to India's Gap. Gross premium collection is about 2% of Gap and has been

growing by 15-20% per annum. India also has the highest number of life insurance

policies in force in the world, and total investible funds with the LIC are almost 8% of

GDP. Yet more than three-fourths of India's insurable population has no life insurance or

pension cover. Health insurance of any kind is negligible and other forms of non-life


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insurance are much below international standards.

2.5. INDIAN SCENARIO:

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rdlargest in terms of purchasing power parity. With factors like a stable 8-9 per cent annual

growth, rising foreign exchange reserves, a booming capital market and a rapidly

expanding FDI inflows, it is on the hinge of an ever increasing growth curve. Indians

have a tendency to invest in properties and gold followed by bank deposits. They

selectively invest in shares also but the percentage is very small--4-5%. This in itself is an

indicator that growth potential for the insurance sector is immense. Its a business

growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.

India is a vast market for life insurance that is directly proportional to the growth in

premiums and an increase in life density. With the entry of private sector players backed

by foreign expertise, Indian insurance market has become more vibrant. Competition in

this market is increasing with companys continuous effort to lure the customers with

new product offerings. However, the market share of private insurance companies

remains very low -- in the 10-15% range. Even to this day, Life Insurance Corporation

(LIC) of India dominates Indian insurance sector. The heavy hand of government still

dominates the market, with price controls, limits on ownership, and other restraints.

The upward growth trend started from 2000 was mainly due to economic policies

adopted by the then Indian government. This year saw initiation of an era of economic

liberalization and globalization in the Indian economy followed by several reforms and

long-term policies that created a perfect roadmap for the success of Indian financial

markets. On the basis of several macroeconomic factors like increase in literacy rate &

per capita income, decrease in death rate and unemployment, better tax rebates, growingGDP etc., we estimate that the Indian insurance sector will grow by $28.65 billion and

reach $76.54 billion by 2011 with a CAGR of 12.44% and a growth of 59.82%.

The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus

representing a compound annual growth rate (CAGR) of 11.84% for the period spanning


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2000- 2007. Life insurance market had a growth of $22.46 billion within a period of 7

years with a growth rate of 118.24%. Estimated life premiums rose from INR1, 470,800

million ($36.77 billion) in 2006 to INR1, 301,540 million ($32.54billion) in 2005. We

envisage that life premiums in 2011 will be $65.96 billion, a growth larger than they were

in 2007. The performance of the market is forecast to accelerate, with an anticipated

CAGR of 9.78% for the four-year period 2007-2011 expected to drive the market to a

value of $65.96 billion by the end of 2011. There would be a growth of $24.6 billion i.e.

59.48% in the next 4 years.

Non-life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in

the Indian non-life insurance market reached a value of $5.75 billion in 2006, this

representing an annual growth of 13.55% for the period spanning 2006-2007. Estimated

non-life premiums rose from INR230 billion ($5.75 billion) in 2006 to INR261 billion

($6.53 billion) in 2007. We anticipate that non-life premiums will grow by a CAGR of

9.40% between 2007-2011. We are looking for non-life premiums to rise by $405 million

over the five years to the end of 2011 with a growth rate of 62.02%.


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Fig 2 Source: www.indiaprwire.com

The general insurance industry grew by 16% in 2006-07 as private insurers continued

their robust performance, while public sector players like New India Assurance and

Oriental Insurance improved their show. Despite continuous fall in business of

government-owned National Insurance, the 12 non-life insurers collected Rs 20,378 crore

in first year premium in the last fiscal compared to Rs 17,531 crore collected in 2005-06,

according to data compiled by regulator IRDA.

New India Assurance collected Rs 4,762 crore in premium and continued to lead the non-

life sector by cornering 23.36% of the market. National Insurance was at the second spot

by collecting Rs 3,524 crore in premium, a decline of 7%, but had a market pie of

17.29%. Oriental Insurance mopped up Rs 3,518 crore in premium income after logging

16.6% growth in business to corner a market share of 17.26%. Another PSU insurer

United India grew by a modest 6.8% to collect Rs 3,147 crore in premium and had

15.44% of the market. The eight private players expanded their business by 52% to

collect Rs 5,427 crore in premium income and increased their combined market share to


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26.6% from 20.2% a year ago.

ICICI Lombard led the private players by logging 80% growth in premium at Rs 1,592

crore, followed by Bajaj Allianz, which grew by 50% to collect Rs 1,287 crore in

premium. ICICI Lombard had a market share of 7.81% and Bajaj Allianz had 6.31% of

the market.

2.6. ROLE OF INSURANCE REGULATORY AND DEVLOPMENT

AUTHORITY (IRDA) ACT, 1999

An act to provide for the establishment of an authority to protect the interests of

policyholders, to regulate, to promote and ensure orderly growth of the insurance industry

and for matters connected therewith for incidental thereto and further to amend, the Life

Insurance Corporation Act, 1956 and the insurance Act, 1938 and General Insurance

Business Act 1972.

Spread Life Insurance much more widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching all insurable persons

in .the country and providing them adequate financial cover against death at a reasonable

Cost. Maximize mobilization of people's savings by making insurance linked savingsadequately attractive. Bear in mind, in the investment of funds, the primary obligation toits policyholders, whose money it holds in trust, without losing sight of the interest of the;

community as a whole; the funds to be deployed to the best advantage of the investors as

well as the community as a whole, keeping in view national priorities and obligations of

attractive return. Conduct business with utmost economy and with the full realization that

the moneys belong to: the policyholders. Act as trustees of the insured public in their

individual and collective capacities. Meet the various life insurance needs of the

community that would arise in the changing social and economic environment. Involve

all people working in the Corporation to the best of their capability in furthering the

interests of the insured public by providing efficient service with courtesy. Promote

amongst all agents and employees of the Corporation a sense of participation, pride and

job satisfaction through discharge of their duties with ded1cat1on towards achievement

of Corporate Objective.


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2.7. NAME OF MAJOR INSURANCE COMPANIES IN KOLKATA CITY

NAME OF INSURANCE LOGO NATURE OF

HOLDING

Life Insurance

Corporation

Public

Tata AIG Insurance Private

ICICI Prudential Private

Max New York Life

Insurance

Private

HDFC Standard

Insurance

Private

Reliance Life Insurance Private

Kotak Life Insurance Private

Aviva Life Insurance Private


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SBI Life Insurance Private

Bajaj Allianz Private

Above all the company they are having various types of insurance plans. All the plans are

giving a good rate of return after a certain period of time. But all the plans dont get

success in the market. Many of the companies they are having almost same type of plan

but sometimes it happens one of them is successful and another is not. Always it doesnt

depend on the plan of the insurance sometimes it depends on the marketing strategies,

promotion of the product, reputation of the company, employees of the company etc.

2.8. MARKET SHARE OF DIFFERENT PRIVATE PLAYERS:

Fig 3 source: www freepress.in


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If we see market share of different private players in the financial year 2009 then from

the above chart we can understand ICICI Prudential is holding the maximum market

share i.e. 21.6%. After that SBI Life and Bajaj Allianz is holding 14.8% and 13.2%

respectively. Reliance Life Birla Sun life and HDFC Standard they are also holding a

good market share all over the India. Tata AIG is holding 3.3% of market share all over

the India.

2.9. GROWTH OF PRIVATE PLAYERS:

Fig 4 Source: www.blonnet.com

If we see the growth rate of private players in Indian economy then it will be seen that

fastest growing insurance companies are Reliance Life and Birla Sun Life, growing rate

is 335% and 152% respectively. Next fastest growing companies are SBI Life, Met Life,

Kotak Old, ICICI Prudential, Bajaj Allianz and TATA AIG. Their growing rate is 138%,

125%, 121%, 116%, 105%, 100% respectively. Less growing companies are HDFC

Standard, ING Vysya, Aviva and Max New York Life respectively.


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CHAPTER 3

Introduction to TATA-AIG


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Tata AIG Insurance Company

Tata Enterprises with 82 companies, spread over seven sectors and with an annual

turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has

shown over years that it is a value driven company and has pioneering contributions in

various fields including insurance, aviation, iron and steel. In terms of capital market

performance as many as 40 listed Tata companies account for nearly 5% of the total

market capitalization of all listed companies. The Group has had a long association withIndia's insurance sector having been the largest insurance company in India prior to the

nationalization of insurance.

3.2. TATA GROUP IN INSURANCE:

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

(collectively "Tata AIG") are joint venture companies between the Tata group India's

most trusted industrial house and American International Group, Inc. (AIG), the leadingU. S. based international insurance and financial services organization.

The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a

group company incorporated way back in 1919. Government of India took over the

management of this company as a part of nationalization of general insurance companies


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in 1972. Not deterred by the move, Tata group have ventured into risk management

services having tied up with AIG group, back in 1977, with the incorporation of Tata

AIG Risk Management Services Pvt. Ltd.

The Tata Group is one of India's largest and most respected business conglomerates, with

revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per

cent of the country's GDP, and a market capitalization of $72.2 billion as on December 6,

2007. Tata companies together employ some 289,500 people. The Tata Group has

operations in more than 85 countries across six continents, and its companies export

products and services to 80 countries.

3.3. AIG:

American International Group, Inc. (AIG), is a major American insurance corporation

based at the American International Building in New York City. The British headquarters

are located on Fenchurch Street in London, continental Europe operations are based in La

Dfense, Paris, and its Asian HQ is in Hong Kong. According to the 2008 Forbes Global

2000 list, AIG was the 18th-largest company in the world.

Company Background:AIG's history dates back to 1919, when Cornelius Vander

Starr established an insurance agency in Shanghai, China. Starr was the first Westerner in

Shanghai to

sell insurance to the Chinese. In 1962, Starr gave management of the company's less

than successful U.S. holdings to Maurice R. \"Hank\" Greenberg, who shifted the

company's U.S. focus from personal insurance to high-margin corporate coverage. The

company went public in 1969.

American International Group, Inc is the leading U.S. based international insurance and

financial services organization and the largest underwriter of commercial and industrial

insurance in the United States. Its member companies write a wide range of commercial

and personal insurance products through a variety of distribution channels in over 130


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countries and jurisdictions throughout the world. AIG's Life Insurance operations

comprise of the most extensive worldwide network of any life insurer. AIG's global

businesses also include financial services and asset management, including aircraft

leasing, financial products, trading and market making, consumer finance, institutional,

retail and direct investment fund asset management, real estate investment management,

and retirement savings products.

3.4. THE JOINT VENTURE:

Tata AIG Life Insurance Co. Ltd. is capitalized at Rs. 205.57 crores of which 74 per cent

has been brought in by Tata Sons and the American partner brings in the balance 26 per

cent. Mr. George Oommen has been named managing director of Tata AIG Life. Tata-

AIG plans to provide broad array of life insurance plans to cover to both individuals and

groups. The company headquartered in Mumbai, with branch operations in Delhi,

Chennai, Hyderabad, Bangalore Calcutta, Pune and Chandigarh.

3.7. DISTRIBUTION CHANNELS OF TATA AIG:

The winds of liberalization initiated vast changes in the functioning of the industry today.

Increasing number of multinational partnership with private insurers have paved the way

for a radical shift in insurance selling- through a number of new distribution channels

besides bringing about more awareness on the need for insurance and also stressing on

the important role technology can play.

In the developed markets, many insurers have a preferred mode of distribution. In India,

many players are hedging their bets because the need for scale outweighs considerations

of focus and because non-agency distribution, which is presently operational for the last

two years, forms a basis for study.

Tata AIG has a corporate agency channel, which handles its corporate agents and has tie-

ups with 38 corporate houses. Insurers want to lower distribution costs by finding more

efficient channels. The new private players are developing multiple channel models;

many insurers use or plan to use several banks as distributors. Because most banks have


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strong regional bias, in this regards Tata AIG has agreement with HSBC (corporate

agency distribution) through that it is doing both life insurance and general insurance

business.. Because most banks have a strong regional bias, Insurers can use several banks

without creating large overlap. Many larger banks are sourcing products from several

insurers acting as manufacturers.

An important distribution challenge facing insurers is the need to meet the rural and

social sector legislative requirements stipulated in terms of market opening. For Tata

AIG, it takes rural insurance as an opportunity and not an obligation. For achieving

objective in rural area it has also tie with NGOs (Bridge stone for Karnataka and Kerala).

In this project mainly focus is distribution channel of Life Insurance of Tata AIG and

little bit of distribution of General Insurance of Tata AIG also. So as the whole topic of

distribution can be known for the both company of Tata AIG (Life and General

insurance). Gradually channels are incorporating day by day for the growth of business.

In the span of two to three years Tata AIG achieve much more business growth what it

expected at the time of entrance in Indian market. It happened because it has quality

people, innovative management, be able to employ technology effectively besides having

right products with effective and modern distribution channel.


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4. Objective of studying the organization

The objective of the study is to study the market potential of TATA AIG in

Kolkata City and to understand the potential of current insurance industry

5. Brief History

TATA-AIG:

Tata AIG Insurance Solutions is one of the leading insurance companies that provide

both life insurance as well as general insurance. This pioneer company is a joint

collaboration between the American International Group, Inc. (AIG) and Tata Group.

They own the company in the ratio of 26:74. It is a leading financial institution that has

carved a niche for itself all over the world.

Tata AIG Insurance provides facilities to both corporate and individuals. Starting its

operations on April 1, 2001, it seeks to serve different categories of people. It acquired its

license for carrying out operations in India on February 12, 2001.

Tata AIG Insurance Solutions is one of the most prestigious organizations in the business

world. It employs thousands of employees and offers various opportunities to people to

build a prospective career. As a leading name in the financial world, it identifies the

potential and experience of the individual.

This insurance company identifies the clients needs and works accordingly. It stresses

on innovative aspect and opening of new markets. It believes in new economy and latest

Internet technology. Tata AIG Insurance offers a number of products for the GeneralInsurance holders. General insurance products include

Individual insurance

Small business insurance


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Corporate insurance

Tata AIG Insurance offers flexible life insurance to the individuals, business organization

and other association. For the corporate, there are various insurance products like group

pensions, employee benefits, work place solutions and credit life.

For the individuals, Tata AIG Insurance offers various products for adults, children and

for retirement planning.

6. Nature of the Organisation-

Nature of Business

Tata Aig is majorly into insurance service providers such as automobileinsurance, home insurance, Accidental and health insurance.

They are into insurance sector.Vision - Empowering every one live their dreams

Mission -

Create unmatched volume for everyone through dependable, effective,transparent and profitable life insurance and pension plans

To develop life insurance business in the best interest of the company To provide financial security to individuals by offering insurance products and

service of high quality of affordable cost


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6. Product Lines

List of products offered by Tata AIG

The life insurance plans are generally divided into two types: (a) Traditional plans (b)Unit linked insurance plans (ULIP). Traditional plans are basically insurance plus savings

whereas ULIPs are insurance plus investment. Further they are classified into pure

protection, savings, investments, pension and living benefits. The classifications are

shown in the table below.

Traditional Plan

Pure

Protection

Savings Investment Pension Living Benefits

Raksha 1.Maha Life

Gold

1.Nirvana Plus

2.Easy retire

3.Riders

1.Health protect

Table 4

Unit linked insurance plans (ULIPs)

Pure

protection

Savings Investments Pension

Living

benefits

1.Invest Assure

Gold

1.Invest Assure

Plus

1.Invest assure

future

1.Health

Investor


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2.Invest Assure

II

2.Invest Assure

Flexi

Table 5

Various products offered by Tata AIG Life Insurance

Children Plans - Currently available products to purchase.

1.Tata AIG Life Starkid:Is a child endowment policy which provides for your childs

future needs like education or for marriage.

2. Tata AIG Life Assure Career Builder: Is a money back policy, which provides funds

for every step of your childs future.

3.Tata AIG Life MahaLife Gold:Is a policy where you need to make premium

payments only for the first 15 years. It gives an income and cover for life.

4. Tata AIG Life Assure Educare at 18 & Tata AIG Life Assure Educare at 21: Are

endowment policies where the plan matures once your child turns 18 or 21 years

depending upon which policy is taken.

5.Tata AIG Life Assure 21 years Money Saver:This is a money back plan, which

gives you money at specified intervals.

6. Tata AIG Life Assure 10 Years / 20 Years / 30 Years Security & Growth Plans: Is

anendowment planwhere in an unfortunate event of the death of the policyholder the

family members are secured.
http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-starkid-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-starkid-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-starkid-tata-aig-life-insurance/http://www.bimadeals.com/insurance/life-insurance/tata-aig-life-assure-career-builder-2/http://www.bimadeals.com/insurance/life-insurance/tata-aig-life-assure-career-builder-2/http://www.bimadeals.com/insurance/life-insurance/tata-aig-retirement-plan-mahalife-gold-plan/http://www.bimadeals.com/insurance/life-insurance/tata-aig-retirement-plan-mahalife-gold-plan/http://www.bimadeals.com/insurance/life-insurance/tata-aig-retirement-plan-mahalife-gold-plan/http://www.bimadeals.com/insurance/life-insurance/tata-aig-retirement-plan-mahalife-gold-plan/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-educare-at-18-tata-aig-life-assure-educare-at-21/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-educare-at-18-tata-aig-life-assure-educare-at-21/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-educare-at-18-tata-aig-life-assure-educare-at-21/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-21-years-money-saver/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-21-years-money-saver/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-10-years-20-years-30-years-security-growth-plans/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-10-years-20-years-30-years-security-growth-plans/http://www.bimadeals.com/life-insurance-india/life-insurance.php#endowmenthttp://www.bimadeals.com/life-insurance-india/life-insurance.php#endowmenthttp://www.bimadeals.com/life-insurance-india/life-insurance.php#endowmenthttp://www.bimadeals.com/life-insurance-india/life-insurance.php#endowmenthttp://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-10-years-20-years-30-years-security-growth-plans/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-21-years-money-saver/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-assure-educare-at-18-tata-aig-life-assure-educare-at-21/http://www.bimadeals.com/insurance/life-insurance/tata-aig-retirement-plan-mahalife-gold-plan/http://www.bimadeals.com/insurance/life-insurance/tata-aig-life-assure-career-builder-2/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-starkid-tata-aig-life-insurance/


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7. TATA AIG Life Gyan Kosh- The plan has been designed to provide financial

protection for childrens education, marriage, providing funds for setting up a business

and so on.

Children Plans - Old products not available for fresh purchase.

1. Tata AIG Life United Ujjwal Bhavishya: Is a unit linked endowment policy for

your child to help him realize his dreams.

2. Tata AIG Life Invest Assure II: Is a unit linked plan giving you aLife Insurance

cover as well as investment benefits.

3. Tata AIG Life Invest Assure Flexi: Is a unit-linked endowment policy.

4.Tata AIG Life Invest Assure Plus: Is a single premium unit linked plan.
http://www.bimadeals.com/insurance/insurance-info/gyan-kosh%25C2%25A0/http://www.bimadeals.com/insurance/insurance-info/gyan-kosh%25C2%25A0/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-ii-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-ii-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-ii-tata-aig-life-insurance/http://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-flexi-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-flexi-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-flexi-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-plus-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-plus-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-plus-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-plus-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-plus-tata-aig-life-insurance/http://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-flexi-tata-aig-life-insurance/http://www.bimadeals.com/life-insurance-india/life-insurance.phphttp://www.bimadeals.com/insurance/tata-aig-life-insurance/tata-aig-life-invest-assure-ii-tata-aig-life-insurance/http://www.bimadeals.com/insurance/insurance-info/gyan-kosh%25C2%25A0/


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7. ORGANIZATIONAL STRUCTURE OF TATA-AIG:

Fig 5 source: CGAP working group o Micro insurance good and bad practices


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7.1 Main Offices

Registered Office:

9th Floor, Piramal Towers, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower

Parel, Mumbai - 400 013

WEST BENGAL

DURGAPUR

Durgapur

1st Floor City GYM Building Sahid Khudiram Sarani City Centre Durgapur-

713216 Tel: 0343-6457801/802

KOLKATA

Kolkata

2/F Constantia Bldg Dr.Brahmachari Street Kolkata-700017 Tel: 033-

64505000 Fax: 033-22895032

Kolkata - Salt Lake

DC Block City Center Building Block-D 4th Flr Unit No - 403 Sector - 1 Salt

Lake Kolkata-700064 Tel: 033-64597025/64597031/645

HYDERABAD

Hyderabad

4th Floor Block -A My Home Tycoon Kundanbagh Begumpet Lifestyle Building

Hyderabad-500016 Tel: 040-66575000 Fax: 040-66668451
http://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Durgapurhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Kolkatahttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Kolkata%20-%20Salt%20Lakehttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Hyderabadhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Hyderabadhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Kolkata%20-%20Salt%20Lakehttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Kolkatahttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Durgapur


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VISHAKHAPATNAM

VishakhapatnamIsnar Complex above icici bank Dwarka nagar Road Vizag Vishakhapatnam-

533016 Tel: 0891-6616771/72/73 Fax: 0891-2716 336

ASSAM

GUWAHATI

Guwahati

Mayur Garden 3rd Floor Opp HDFC Bank G.S.Road Guwahati-781005 Tel:

0361-2462343 Fax: 0361-2462559

DELHI

Delhi-Lotus Towers

Lotus Towers 1st Floor Community Centre New Friends Colony New Delhi - 110

025 Tel: 011-66563600

Delhi-Kirti Nagar

A-2 2nd Floor Main Nazafgarh Road Near Kalra Hospital Kirti Nagar NewDelhi-

110015 Tel: 011-66563600

ASSAM

HARYANA

JHARKHAND
http://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Vishakhapatnamhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Guwahatihttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Delhi-Lotus%20Towershttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Delhi-Kirti%20Nagarhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Delhi-Kirti%20Nagarhttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Delhi-Lotus%20Towershttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Guwahatihttp://www.tataaiginsurance.in/taig/taig/tata_aig/about_us/contact_us/branch_locator.html?branch=Vishakhapatnam


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KARNATAKA

KERALA

MADHYA PRADESH

MAHARASHTRA

ORISSA

PONDICHERRY

PUNJAB

RAJASTHAN

TAMIL NADU

UTTAR PRADESH

8. Functions of the HR Department of TATA AIG

Recruitment and Selection

Induction

Competence Development

Providing compensation and other employee benefits

Performance Management

Talent and Career Management

9. Short-Falls/weakness of HRM Department

The HRM department lacks in coordination-the coordination between theemployees is minimal. This at times has an adverse effect on certain events and

plans.

There is no much of a face-to-face interaction with the employees with therespective issues and most of them are dealt through mails and calls.

There is no proper delegation of responsibilities among the employees. Thisresults in chaos at certain point of time.


41/52

Chapter 4

INTRODUCTION OF THE RESEARCH

STUDY


42/52

10.1. Project proposed

Market PotentialStudy of TATA AIG life Insurance in Kolkata

City

10.2. OBJECTIVE OF THE PROJECT: -Main objective of the project is to

find out the market potentialility of Tata AIG in Dehradun city. Project is about to find

out the competitors Tata AIG Life Insurance company. Nowadays all the insurance

companies in India are trying to establish themselves in the competitive market. They are

introducing innovative marketing strategies to survive in the market. Many other private

companies are looking to enter in the Indian insurance market.

To find out the market potentiality of Tata AIG in Kolkata city. Main competitors of Tata

AIG.

Which type of policies is preferable? Most preferable plans in Kolkata city. Whichsector is most preferable public or private Targeting the right and potential customers

Differentiating from other companies

10.3. METHODOLOGY:

Research is totally based on primary data. Secondary data can be used only for the

reference. Research has been done by primary data collection, and primary data has been

collected by meeting with the people in Kolkata. Data collection has been done through

by giving structured questionnaire. This study will be based on sampling. This is an

exploratory type of research.

The study was aimed at measuring the customers preference for life insurance

companies and the comparison of various insurance policies of the various companies on

basis of various parameters based on customers responcse in Dehradun region only. The

survey was done on hundred general residents of the selected region.


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Methods adopted for surveys 1. Field survey method 2. Personal interview technique 3. Secondary sources viz company database

The data collected are represented into suitable tabular forms for drawing inferences.

Quantitative techniques like averages, percentages, range, two-way tables, chi- square

tests analysis are applied as per the requirement. The level of preference, perception of

the customers about the product and company were identified by means of a scoring

scheme. For the representation of data various charts and graphs are used as per

requirement.

10.4. Questionnaire Designing:

The project is on Market Potential Study of Tata AIG in Dehradun city. To know the

market potentiality of Tata AIG a questionnaire has been prepared. The questionnaire is

having both open ended and close ended questions. It is also having ranking, multiplechoice and check list type of questions.

First part of the questionnaire is the demographic part. Questionnaire has been prepared

in such a way that we can understand insurance policies are dependable on the occupation

of a person or income level of a person. Which type of investment do they prefer? For it

cluster analysis will be used.

Nowadays private players are giving a good rate of return rather than the public player.

So in which sector (private or public) do they like to invest and what is the reason behind

that? To get to know the reason Likert scale has been used. To get to know how muchTata AIG is preferable in Dehradun city a ranking scale has been used where name of

different major Insurance Companies have been given and according to the ranking given

by citizen we can get to know the potentiality of Tata AIG in Dehradun city. There is


44/52

different type of insurance policies in the market. Which type of policies do they prefer

can

understand from the questionnaire. Which life insurance policies of Tata AIG are most

preferable we can get from it. To know all of these cluster analysis will be used.

Sample questionnaire has been attached with annexure I.

10.5.LIMITATION OF THE STUDY:

Time limitation Research has been done only in Dehradun. Companies did not disclose their secrets data and strategies.

Possibility of Error in data collection. Possibility of Error in analysis of data due to small sample size.

Respondents error Limited resources


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Chapter 5

Survey and results


46/52

5.1 Findings from the research Study

A study has been conducted till date. From the study through hundred questionnaires we

got different data according to the questionnaire. The pilot study has been conducted in

the Dehradun city by meeting the people personally. From the study we have got as

below-

Occupation of respondents:

Occupation Numbers of respondents

Service 60

Business 20

Professional 18

Others 2

Table: 6

Proportion of Different Occupation

Fig 6: Number of respondents according to the occupation

None

d

c

b


47/52

Number of respondents according to the income level

Income/annum Number of person

50000-100000 29

100000-300000 40

300000-500000 26

500000-1000000 5

>1000000 0

Table: 7

Fig 7: Proportion of respondent according to the income level

None

d

c

b


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Number of family members of the respondents:

Number of family members Number of Respondents

a) 1-4 72b) 4-8 16

c) 8-12 2

d) 12-16 0

e) >16 0

Table: 8

Fig 8: Number of family members according to the respondents

None

d

c

b

a


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Number of dependent family members of the respondents:

Number of dependant family

members

Number of respondents

a) None 23

b) 1-2 54

c) 2-4 19

d) 4-6 3

e) 6-8 1

0 20 40 60 80

None

d

c

b

a

Series1


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Annexure I

QUESTIONNAIRE Market Potentialstudy of Tata AIG in Kolkata City

Dear Sir/Madam, We are conducting a survey on Market potential study ofTata AIG in Dehradun city by Insurance organizations. We hope for yourkind coordination. Name: ............................................................................................................

Age: .............................. Sex: Male [ ] Female [ ] Contact Number:

................................................................................................

E-mail address:

..................................................................................................

1. Family Members: (Please tick) a) 1-4 b) 4-8 c) 8-12 d) 12-16 e)16>

2. Number of dependent family members: (Please Tick)

a) 1-2 b) 2-4 c) 4-6 d) 6-8 e) More

3. Occupation: (Please Tick) a) Service b) Business c) Professional d) Any


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other: ................................................

4. Annual Income: (Please Tick)

a) 50000-100000 b) 100000-300000 c) 300000-500000d) 500000-1000000 e) 1000000

5. In which would you like to invest? (Please Tick) a) Fixed deposit b) Post office c) Mutual Fund d) Share buying

e) Insurance policy

6. Do you have any insurance policy? (Please Tick) a) Yes b) No

7. Which sector do you prefer? (Please Tick)

a)Public Sector b) Private Players

8. Do you have any Insurance policy in the Following companie? (Please

Tick) a) LIC b) Tata AIG c)Birla Sun life d) ICICI e)

Max New York f) Any Other: .............

10. Rank different company according to your opinion. Most

preferred rank is 1 and least preferred is 10 (Rank from 1 to

10)


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LIC

ICICI Prudential

Tata AIG Life Insurance

Max new York Life

HDFC standard Life

Reliance Life Insurance

ING Vysya

Kotak Life Insurance

Bajaj Allianz

SBI life Insurance

11. Which type of policy do you prefer? (Please Tick)

a) Life Insurance b) Vehicle Insurance c) Pension plan

d) Medi claim e) Any Other:

Any Comments:

.......................................................................................

............................................................................................................

.......

Thank you, for your kind co-operation.

Signature: .........................................

Date: ...............................................

Internship (1) Copy

Documents

Transcript of Internship (1) Copy