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Transcript of Investor Behaiour Toward PNB MET LIFE Ife Insurance Policies Amit Singh
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OON BUSINESS SCHOOL, EHRA UN
STU ENTS ECLERATION
I hereby declare that project report conducted at MAVEN SOLUTION on
STUDY OF RECRUITMENT AND SELECTION IN CONSULTANCY
FIRM written and submitted by me, under the guidance of Priyam Garg
While preparing the report, I have not copied anything from any source or
other projects submitted for similar purpose.
PLACE NEHA
NEGI
DATE MBA 3 rd
Sem
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CERTIFICATE
I have the pleasure in certifying that is a bonafide student of
I th !emester of the "aster#s $egree in %usiness &dministration '%atch
2(12)2(1*+, of ttaranchal Institute of -echnology, $ehradun under
ttara hand -echnical niversity.
/e has completed his dissertation report entitled 0 &3 !-&- 4 my
guidance.
I certify that this is his5her original effort 6 has not been copied from any
other source. -his project has also not been submitted in any other Institute 5
niversity for the purpose of award of any $egree.
-his project fulfils the re7uirement of the curriculum prescribed by this
Institute for the said course. I recommend this project wor for evaluation 6
consideration for the award of $egree to the student.
!ignature 8 999999999999
:ame of the Guide 8
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$esignation 8 999999999999
$ate 8 999999999999
ACKNOWLEDGEMENT
very study re7uires a guidance of someone who is wor ing in that field.
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PREFACE
-he liberali>ation of the Indian insurance sector has been the subject of much
heated debate for some years. -he policy ma ers where in the catch 22 situation wherein
for one they wanted competition, development and growth of this insurance sector which
is e=tremely essential for channeling the investments in to the infrastructure sector. &t the
other end the policy ma ers 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.
&s one of the rare occurrences the entire debate was put on the bac burner and the I $&
saw the day of the light than s to the maturing polity emerging consensus among factions
of different political parties. -hough some changes and some restrictive clauses as
regards to the foreign participation were included the I $& has opened the doors for the
private entry into insurance.
Whether the insurer is old or new, private or public, e=panding the mar et will present
multitude of challenges and opportunities. %ut the ey issues, possible trends,
opportunities and challenges that insurance sector will have still remains under the realms
of the possibilities and speculation. What is the li ely impact of opening up India#s
insurance sector@
-he large scale of operations, public sector bureaucracies and cumbersome procedures
hampers nationali>ed insurers. -herefore, potential private entrants e=pect to score in the
areas of customer service, speed and fle=ibility. -hey point out that their entry will mean
better products and choice for the consumer. -he critics counter that the benefit will be
slim, because new players will concentrate on affluent, urban customers as foreign ban s
did until recently. -his seems to be a logical strategy. !tart)up costs)such as those of
setting up a conventional distribution networ )are large and high)end niches offer better
returns. /owever, the middle)mar et segment too has great potential. !ince insurance is a
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volumes game. -herefore, private insurers would be best served by a middle)mar et
approach, targeting customer segments that are currently untapped
INSURANCE INDUSTRY IN INDIA
AN OVERVIEW
With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It#s a business growing at the rate of 1A)2( per
cent annually and presently is of the order of s 1AB(.*1 billion 'for the financial year
2((B C 2((D+. -ogether with ban ing services, it adds about DE to the country#s Gross
$omestic Product 'G$P+. -he gross premium collection is nearly 2E of G$P and fundsavailable with 3IF for investments are E of the G$P.
ven so nearly BAE of the Indian population is without life insurance cover while health
insurance and non)life insurance continues to be below international standards. & large
part of our population is also subject to wea social security and pension systems with
hardly any old age income security
& well)developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and strengthens the ris ta ing
ability of individuals. It is estimated that over the ne=t ten years India would re7uire
investments of the order of one trillion ! dollars.
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HISTORICAL PERSPECTIVE
-he history of life insurance in India dates bac to 1 1 when it was conceived as a
means to provide for nglish Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non ) Indian lives, as Indian lives were considered more
ris y to cover. -he %ombay "utual 3ife Insurance !ociety started its business in 1 D(. It
was the first company to charge the same premium for both Indian and non)Indian lives.
-he Hriental &ssurance Fompany was established in 1 (. -he General insurance
business in India, on the other hand, can trace its roots to -riton Insurance Fompany
3imited, the first general insurance company established in the year 1 A( in Falcutta by
the %ritish. -ill the end of the nineteenth century insurance business was almost entirely
in the hands of overseas companies.
Insurance regulation formally began in India with the passing of the 3ife Insurance
Fompanies &ct of 1 12 and the Provident ed monopoly corporation and 3ife Insurance
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Forporation '3IF+ was born. :ationali>ation was justified on the grounds that it would
create the much needed funds for rapid industriali>ation. -his was in conformity with the
GovernmentJs chosen path of !tate led planning and development.
-he non)life insurance business continued to thrive with the private sector till 1 D2. -heir
operations were restricted to organi>ed trade and industry in large cities. -he general
insurance industry was nationali>ed in 1 D2. With this, nearly 1(D insurers were
amalgamated and grouped into four companies) :ational Insurance Fompany, :ew India
&ssurance Fompany, Hriental Insurance Fompany and nited India Insurance Fompany.
-hese were subsidiaries of the General Insurance Fompany 'GIF+.
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INDUSTRY REFORMS
eforms in the Insurance sector were initiated with the passage of the I $& %ill in
Parliament in $ecember 1 . -he I $& since its incorporation as a statutory body in
&pril 2((( has fastidiously stuc to its schedule of framing regulations and registering
the private sector insurance companies. !ince being set up as an independent statutory
body the I $& has put in a framewor of globally compatible regulations.
-he other decision ta en simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
I $& online service for issue and renewal of licenses to agents. -he approval of
institutions for imparting training to agents has also ensured that the insurance companies
would have a trained wor force of insurance agents in place to sell their products.
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PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
-he life insurance industry in India grew by an impressive *D.; E, with premium
income at s. 1AB(.*1 billion during the fiscal year 2((B)2((D. -hough the total volume
of 3IFJs business increased in the last fiscal year '2((B)2((D+ compared to the previous
one, its mar et share came down from A.DAE to 1. 1E.
-he 1D private insurers increased their mar et share from about 1AE to about 1 E in a
yearJs time. -he figures for the first two months of the fiscal year 2((D)( also spea of
the growing share of the private insurers. -he share of 3IF for this period has further
come down to DA percent, while the private players have grabbed over 2* percent.
With the opening up of the insurance industry in India many foreign players have entered
the mar et. -he restriction on these companies is that they are not allowed to have more
than a 2BE sta e in a company#s ownership.
!ince the opening up of the insurance sector in 1 , foreign investments of s. .D
billion have poured into the Indian mar et and 1 private life insurance companies have
been granted licenses.
Innovative products, smart mar eting, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone e=pected.
Indians, who had always seen life insurance as a ta= saving device, are now suddenly
turning to the private sector and snapping up the new innovative products on offer. !ome
of these products include investment plans with insurance and good returns 'unit lin ed
plans+, multi C purpose insurance plans, pension plans, child plans and money bac plans.
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INTRODUCTION TO THE COMPANY
COMPANY PROFILE OF PNB MET LIFE
i N!me "# "r$!%i&!'i"% (F)** %!me+ re$i,'ered !ddre,,+ !%d e.,i'e/
N!me0 "etlife He!d O##i1e
"et3ife India Insurance Fompany 3imited. :o.A %rigade !eshmahal ani ilas oad%asavanagudi%angalorePhone 8 ( ( ) BB((B B 5 2B*; B;
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ii Ke8 E:e1)'i4e,
KEY EXECUTIVES - METLIFE INC (MET) :ame %oard elationships -itle &ge!teven &.Landarian M.$. 73 elationships Fhief =ecutive Hfficer, President and $irector A
William M.Wheeler :o elationships
Fhief
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EXECUTIVE COMMITTEES* - METLIFE INC (MET)Fommittee :ame Fhairperson %oard elationships "embers
&udit Fommittee Lenton M. !icchitano 3= elationshipsB
=ecutives
Fompensation Fommittee Mames ". Lilts 7>< elationships B=ecutivesForporate GovernanceFommittee Fheryl W. GrisO
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1 C
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Q A(1.D billion !$ in total assets under
management as of 2(( KQ A1.( million !$ in total revenues as of 2(( K
4 Vi,i"% !%d V!*)e,
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SFoming into your ownS, performing as a 3eader to
be really effective andsuccessful by acting and
ma ing decisionsindependently to get
results.
ItJs all about People,"et3ifeJs ey resource."et3ife will succeed
because we are winningfrom within.
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4i Mi,,i"% S'!'eme%'
We are committed to maintaining the highest standards of integrity and professionalism
in our relationship with you, our client. We endeavour to now and understand your financial situation and provide you with only the information, services, and products to
help you reach your goals.
4ii B),i%e,, P i*","9 8
"The grat ! at o# o! $ea%th s #ot !od # mere 'ossess o# or # %a sh e 'e#d t&re b&t # ts $ se
a''% at o#+" M g&e% ,e Cer a#tes ( ./0)
Today's clients are loo in! "or sec#rity$ no%in! t&at t&ey &a e eno#!& oney$ and t&at t&eir needs are
ta en care o" Freedo to do %&at t&ey %ant$ %&en t&ey %ant *s a Financial +ro"essional %it& o er ,
years o" no%led!e and e./erience in t&e "inancial ser ice ind#stry$ clients %&o !ain t&e ost 0ene"it "ro
y areas o" "oc#s &a e t&e "ollo%in! c&aracteristics1
-hey want a trusting relationship with a financial professional.
-hey are financially motivated and serious about personal financial success. -hey are active professionals, business owners, or retirees that are accustomed to
delegating their financial matters to competent, trustworthy professionals. -hey are not influenced by the daily ups and downs reported by the financial
media. -hey are sharing people, who li e to help others and who are influential.
-hey enjoy the simplicity of having all of their assets in one place.
-hey understand that having a strategy is important, and stic ing to that strategy
is what ma es it wor .
4iii C"r9"r!'e S"1i!* Re,9"%,i.i*i'8
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"et3ife has always been committed to ma ing a positive difference in the lives of
the individuals and communities. -oday, that commitment drives volunteer wor and
philanthropy across the globe. Wor ing with non)profit organi>ations, "et3ife supports
programs that provide young people with the s ills they need to succeed in life and create
opportunities for people of all ages.
"et3ife#s core values are personal responsibility, people count, partnership, integrity and
honesty, innovation and financial strength. -hese values also shape the responsibility to
the communities where the organi>ation conducts its business.
i: Pr"d)1' r!%$e i% Me'Li#e
In %road sense these are the various types5categories of life insurance policies
available8)
Q ndowment policies8 -his type of policy covers ris for a specified period, and at the
end of the maturity sum assured is paid bac to policyholder with the bonuses during
the term of the policy.
Q"oney bac policies8 -his type of policy is for periodic payments of partial survival
benefits during the term of the policy as long as the policy holder is alive.
QGroup insurance8 -his type of insurance offers life insurance protection under group
policies to various groups such as employers)employees, professionals, co)operatives
etc it also provides insurance coverage for people in certain approved occupations at
the lowest possible premium cost.
Q-erm life insurance policies8 -his type of insurance covers ris only during the
selected term period. If the policy holder survives the term, ris cover comes to an
end. -hese types of policies are for those people who are unable to pay larger
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premium re7uired for endowment and whole life policies. :o surrender, loan or paid
up values are in such policies.
QWhole life insurance policies8 -his type of policy runs as long as the policyholder is
alive and is covered for the entire life of the policyholder. In this policy the insured
amount and the bonus is payable only to nominee on the death of policy holder.
QMoint life insurance policies8 -hese policies are similar to endowment policies in
maturity benefits and ris cover, but joint life policies cover two lives simultaneously
such as married couples. !um assured is payable on the first death and again on the
death of survival during the term of the policy.
QPension plan8 a pension plan or annuity is an investment over a certain number of
years but does not provide any life insurance cover. It offers a guaranteed income
either for a life or certain period.
Q nit lin ed insurance plan8 3IP is a ind of insurance plan which provides life cover
as well as return on premium paid over a certain period of time. -he investment is
denoted as units and represented by the value called as net asset value ':& +.
Me' B !4i, 8!0 "et3ife offers J"et %havishyaJ ) a guaranteed money bac plan
that pays out funds to help you meet the education and career milestones of your
children. With this plan, the 3ife Insured is that of the parent. -he plan also has
inbuilt guaranteed additions to add value to the policy over its term.
-here are two options to choose from and fi=ed term benefits, periodic additions
6 terminal additions are payable based on the option that you select. -he policy issuitable for parents with children between the ages ()12 and parents in the age
group of 2()A( years old.Re!,"%, '" B)80'( Guaranteed ayouts at critical milestones o! the child)s li!e(
*( Guarantee o! olicy continuance in case o! the untimely demise o!
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arent(
+( Guaranteed ayouts o! *,-./ o! the chosen Sum Assured(
0( /Ta1 &ene"ts as a licable(
Met Junior Endowment: MetLi"e o""ers 'Met 2#nior' - a "le.i0le endo% ent /lan t&at co 0ines
sa in!s and sec#rity Yo#r c&ildren's %ell-0ein! is yo#r &i!&est /riority So %e o""er a /lan %&ic&
o""ers 0ot& ti ely and e""icient 34et#rn on In est ent3 *ll %it& a !#arantee Met 2#nior is a aila0le
in 0ot& /artici/atin! (UIN1556N 5 V 5) as %ell as non-/artici/atin! ersions(UIN1556N 7V 5)
8eat& 9ene"it
Reasons to Buy:
5 *n endo% ent /lan t&at o""ers 0ot& sa in!s and li"e ins#rance
, 8i""erent /re i# /ayin! o/tions to s#it ario#s inco e cycles
: * aila0le in 0ot& /ar and non /ar ersions
; * /lan %&ic& /artici/ates in t&e 0on#ses declared 0y t&e co /any (/ar)
7 e on volatile mar et
conditions
;. nhanced protection with &$% rider.
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*. 3i7uidity with Partial Withdrawals 6 Policy 3oans
A. T-a= %enefits as applicable.
Met Monthly Income Plan - 7 Pay 1 MetLi"e o""ers 'Met Mont&ly Inco e +lan-6 +ay' %&ere yo# are
re=#ired to /ay /re i# only "or 6 years and !et 0ac t&e >#aranteed Mont&ly Inco e t&at yo#
c&oose at ince/tion "or ? years *t t&e end o" t&e ter yo# %ill also !et t&e accr#ed 0on#ses as a
l# / s# * Mont&ly Inco e +lan t&at !#arantees inco e to add to yo#r inco e e ery ont&
0eca#se t&ese days !ro%in! needs de and ore t&an one inco e
Reasons to buy:
5 >et c&osen >#aranteed 4e!#lar Mont&ly Inco e "or ? years i e $ @A ont&s
, Yo# %ill !et accr#ed 0on#ses as a l# /s# at at#rity o" t&e /lan$ i" any: In addition to t&e deat& 0ene"it yo#r "a ily %ill contin#e to !et !#aranteed ont&ly inco e as
sc&ed#led
; Ta. 0ene"its< on 0ot& t&e a o#nt in ested and t&e 0ene"its recei ed #nder Section ? C and
Section 5 (5 )8 B
Me' S)? 0 "et3ife offers "et !u h ) a guaranteed "oney)%ac Policy which
provides guaranteed periodic survival benefits at the end of A, 1(, 1A 6 2( yearsand guaranteed additions of 1(E of the !um &ssured for the entire term. It not
only covers your life, but also guarantees you cash payments at various
milestones along with guaranteed growth of your savings.
Re!,"%, '" .)80
1. Guaranteed !urvival %enefit8 Payment of 2(E of the !um &ssured every year
starting from the Ath year till maturity.
2. Guaranteed "aturity %enefit8
Guaranteed payment of *(E of !um &ssured.
Guaranteed &ddition of 1(E of !um &ssured every year up to maturity.
;. Guaranteed $eath %enefit8 Guaranteed payment of !um &ssured along with
Guaranteed &dditions 'accrued till that time+. -his is paid over and above the
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survival benefit payments already made.
*. Fomprehensive protection by way of * riders.
A. T-a= %enefits as applicable.
Me' He!*' C!re0 /ealth problems stri e une=pectedly. In addition to causing ill
health, it can also scar financial health. Hne needs to protect himself against such a
situation through a health insurance plan. In order to ensure you are well protected to
face any health condition that could befall you, "et3ife presents ) "et /ealth Fare, a
simple health insurance policy with uni7ue and smart advantages for you and your
familyR.
'R ation e=penses by providing a $aily Fash benefit as chosen by you.
2. 1( major Fritical Illnesses by providing a lump sum benefit.
;. -otal 6 Permanent $isability due to accident by providing a lump sum benefit.
&ll the above benefits can be availed without the hassle of undergoing any medical
e=amination. Must fill up the simple application form and start enjoying the unmatched
benefits of "et /ealth Fare.
"inimum5"a=imum age of entry
1 years)AA years '&t first entry, for the Principal insured+
; months)AA years '
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Be%e#i', O##ered
'a+ $aily /ospitalisation Fash %enefit
'b+ $aily IF Fash %enefit
'c+ ecuperation %enefit
'd+ Fritical Illness %enefit
'e+ &ccidental -otal 6 Permanent $isability %enefit
Met Mortgage Protector Plus 1 MetLi"e /resents 'Met Mort!a!e +rotector +l#s' a /lan %&ic&
/ro ides yo# li"e co er "or &o e loans ta en "or any /eriod a0o e 7 years It is a decreasin! terins#rance %it& sin!le and li ited /re i# o/tions T&e /lan co ers yo# "or an a o#nt e=#al to t&e
o#tstandin! a o#nt as /er t&e /olicy sc&ed#le It ens#res t&e asset t&at yo# &a e created stays
%it& yo#r "a ily
Reasons to buy:
1. It protects the family against the burden of a loan.
2. It is an affordable insurance plan that covers the ris of life.
;. It provides protection for all ind of loans ta en for a period above A
years.*. 3imited and !ingle premium paying terms.
A. T-a= %enefits as applicable.
O' er Ser4i1e, !%d Pr"d)1',0
!toc s and %onds
Fharitable Giving !trategies
I & Fonsolidation5 ollovers "ortgage Protection 'through life insurance and disability income insurance+
3ump !um Pension $istribution
"edicare !upplement Foverage
Pension Payout <ernatives
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Pension -ranser5 ollovers
-a= !heltered &nnuities, *(;'b+ Plans
ariable niversal 3ife Insurance
Hver 2( Kears =perience
: S!*e, Pr"1e,, !' Me'*i#e
7 Pr",9e1'i%$
Generally, the first stage of the technical sales cycle is prospecting. Prospecting is a
process of gathering the names of people you would li e to contact. /ere, your objective
should be to decide which sources to use for building sales contact lists. Hften, the best
place to start is with your e=isting clients because chances are they already now your
product and have an established history of purchasing from your company. Kou may also
consider re)establishing contact with past and inactive clients for the same reasons. Kou
can retrieve names of old, inactive and active clients just by loo ing through your own
companyJs sales records. /owever, developing new lists is also important, to maintain
growth and mar et position. -here are a variety of sources you can use to develop new
lists.
$irectories ) Whether they are for general businesses or speciali>ed industries,
directories are an e=cellent source for gathering new contacts.
Fustomi>ed mailing lists ) If directories are too general or not organi>ed in ways
that ma e it easy for you to e=tract prospect names, you can order your own
customi>ed mailing list from a mailing list bro er. "ailing lists can be generated
for different types of information, i.e. by region, industry, position5title, companysi>e, etc.
P3&:! H< P:% " -3Ied Premiumalong with accrued bonus 'including -erminal %onus+ or 1(AE of
Premium paid till the date of death is paid as $eath %enefit.
Kour annual premium multiplied with the "ultiplier factor is the%ase !um &ssured.
easons to buy81. $ecide the Premium and the payout date of your choice2. Invest and earn more on your savings;. njoy double benefit of Investments and Protection*. njoy ta= benefits on investment and returns.
E@ECUTIVE SUMMARY
In today#s corporate and competitive world, I find that insurance sector has the ma=imum
growth and potential as compared to the other sectors. Insurance has the ma=imumgrowth rate of D() (E while as
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-he success story of good mar et share of different mar et organi>ations depends
upon the availability of the product and services near to the customer, which can
be distributed through a distribution channel. In Insurance sector, distribution
channel includes only agents or agency holders of the company. If a company li e
P:% " -3I< etc have ade7uate agents in the mar et they can capture big
mar et as compared to the other companies.
&gents are the only way for a company of Insurance sector through which
policies and benefits of the company can be e=plained to the customer.
MA OR PLAYERS IN THE INSURANCE INDUSTRY IN INDIAMA OR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
Li#e I%,)r!%1e C"r9"r!'i"% "# I%di! (LIC/
3ife Insurance Forporation of India '3IF+ was established on 1 !eptember 1 AB to spread
the message of life insurance in the country and mobilise people#s savings for nation)
building activities. 3IF with its central office in "umbai and seven >onal offices at
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"umbai, Falcutta, $elhi, Fhennai, /yderabad, Lanpur and %hopal, operates through 1((
divisional offices in important cities and 2,(* branch offices. 3IF has A.A la h active
agents spread over the country.
-he Forporation also transacts business abroad and has offices in
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Indian and foreign insurers which were operating in the country prior to nationali>ation,
were grouped into four operating companies, namely, 'i+ :ational Insurance Fompany
3imited? 'ii+ :ew India &ssurance Fompany 3imited? 'iii+ Hriental Insurance Fompany
3imited? and 'iv+ nited India Insurance Fompany 3imited. '/owever, with effect from
$ecJ2(((, these subsidiaries have been de)lin ed from the parent company and made as
independent insurance companies+. &ll the above four subsidiaries of GIF operate all
over the country competing with one another and underwriting various classes of general
insurance business e=cept for aviation insurance of national airlines and crop insurance
which is handled by the GIF.
%esides the domestic mar et, the industry is presently operating in 1D countries directly
through branches or agencies and in 1* countries through subsidiary and associate
companies.
IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN
PERMITTED TO ENTER INTO INSURANCE BUSINESS0 -
-he introduction of private players in the industry has added to the colors in the dull
industry. -he initiatives ta en by the private players are very competitive and have given
immense competition to the on time monopoly of the mar et 3IF. !ince the advent of the
private players in the mar et the industry has seen new and innovative steps ta en by the
players in this sector. -he new players have improved the service 7uality of the insurance.
&s a result 3IF down the years have seen the declining phase in its career. -he mar et
share was distributed among the private players. -hough 3IF still holds the DAE of the
insurance sector but the upcoming natures of these private players are enough to give
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more competition to 3IF in the near future. 3IF mar et share has decreased from AE
'2((2)(;+ to 2 E' 2((*)(A+.
7 HDFC S'!%d!rd Li#e I%,)r!%1e C"m9!%8 L'd .
/$
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IFIFI Prudential 3ife Insurance Fompany is a joint venture between IFIFI %an , a
premier financial powerhouse and Prudential plc, a leading international financial
services group head7uartered in the nited Lingdom. IFIFI Prudential was amongst the
first private sector insurance companies to begin operations in $ecember 2((( after
receiving approval from Insurance egulatory $evelopment &uthority 'I $&+. -he
company has a networ of about AB,((( advisors? as well as D banc assurance and 1A(
corporate agent tie)ups.
; Om K"'!? M! i%dr! Li#e I%,)r!%1e C" L'd
Lota "ahindra Hld "utual 3ife Insurance 3td. is a joint venture between Lota
"ahindra %an 3td. 'L"%3+, and Hld "utual plc.
> Bir*! S)% Li#e I%,)r!%1e C"m9!%8 L'd
%irla !un 3ife Insurance Fompany is a joint venture between &ditya %irla Group and !un
3ife financial !ervices of Fanada.
-ata &IG 3ife Insurance Fompany 3td.
!%I 3ife Insurance Fompany 3imited
I:G ysya 3ife Insurance Fompany Private 3imited
&llian> %ajaj 3ife Insurance Fompany 3td.
"etlife India Insurance Fompany Pvt. 3td.
&"P !&:"& &ssurance Fompany 3td.
$abur FG 3ife Insurance Fompany Pvt. 3td.
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7 R"8!* S)%d!r!m A**i!%1e I%,)r!%1e C"m9!%8
-he joint venture bringing together oyal 6 !un &lliance Insurance and !undaram
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IFIFI 3ombard General Insurance Fompany 3imited is a joint venture between IFIFI
%an 3imited and the !)based 2B billion
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-ata &IG General Insurance Fompany, which started its operations in India on Manuary
22, 2((1, offers the complete range of insurance for automobile, home, personal accident,
travel, energy, marine, property and casualty, as well as several speciali>ed financial
lines.
OB ECTIVES OF STUDY
-he main of the present study of is accomplish the following objective.
Proper understanding and analysis of life insurance industry.
-o now about brand awareness of P:% " - 3I< Insurance and
customer#s preference about P:% " - 3ife Insurance.
&ccording the mar et survey come now about how much potential of
insurance mar et in our city.
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&nd base on analysis of the result thus obtained ma e a report on that
research.
-raining aims at recruiting ma=imum number of 3ife &dvisors and to !ell
the ma=imum policies for the company and bring the business for the
company which ever is going at the particular point of time.
&s the P:% " - 3ife Insurance well reputed company in India it#s great
chance for me to observed different products launch by other competitor
companies li e IFIFI prudential, %ajaj alliance ,3IF, "a= :ew Kor life
etc. In all, it is to understand the overall wor ing of the 3ife insurance
sector.
-he objective behind the project is as follows8
-o find the right candidate.
-o about their family bac ground, occupation, social relation,
Vualification, &ge.
R!'i"%!* O# Pr" e1'SCOPE OF THE STUDY
& big boom has been witnessed in Insurance Industry in recent times. & large number of
new players have entered the mar et and are vying to gain mar et share in this rapidly
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improving mar et. -he study deals with eliance in focus and the various segments that
it caters to. -he study then goes on to evaluate and analy>e the findings so as to present a
clear picture of trends in the Insurance sector.
SIGNIFICANCE OF THE STUDY
-his is a limited study which ta es into consideration the responses of 1(( people. -his
data can be e=plorated to ta e in the trends across the industry. -he significance for the
industry lies in studying these trends that emerge from the study. It is a rapidly changing
and evolving sector. People are only beginning to wa e up to it#s vast possibilities. &
study li e this can attempt to guide the future of the industry based on current trends
RESEARCH METHODOLOGY
TITLE0
Study o! Investor &ehavior To$ard PN& MET li!e Insurance Pa%e *(
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-o determine customer)buying behavior with a focus on mar et segmentation for P:%
" - 3I< .
TITLE USTIFICATION 8
-he above title is self e=planatory. -he study deals mainly with studying the buying
pattern in the insurance industry with a special focus on P:% " - 3I< . -he various
segments of the mar ets divided in terms of Insurance :eeds, &ge groups , !atisfaction
levels etc will also studied.
OB ECTIVE
O. e1'i4e O%e
-o determine reasons behind opting for an insurance.
-o provide the company with information of customerJs Insurance policy if they have
any and reasons for opting for that particular policies.
-o now the most preferred policy.
O. e1'i4e T "
-o determine customers perception towards Government insurance companies and
their e=pectation form Government insurance companies.
-o determine the feedbac on services provided by any other insurance agent.
-o study the types of benefits provided by insurance services.
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-o determine the use of Internet for valuable information and decision)ma ing
process.
.SIGNIFICANE FOR THE RESEARCHER 0
-o facilitate and provide all the useful information of the study, the company, the
insurance industry and also provide mar eting ways, methods of P:% " - 3I< .
RESEARCH DESIGN
NON-PROBABILITY
E@PLORATORY DISCRIPTIVE E@PERIMENTAL RESEARCH
-he research is primarily both e=ploratory as well as descriptive in nature. -he sources of
information are both primary 6 secondary.
& well)structured 7uestionnaire was prepared and personal interviews were conducted to
collect the customer#s perception and buying behavior, through this 7uestionnaire.
SAMPLING METHODOLOGY
S!m9*i%$ Te1 %i2)e0
Initially, a rough draft was prepared eeping in mind the objective of the research. & pilot
study was done in order to now the accuracy of the Vuestionnaire. -he final
Vuestionnaire was arrived only after certain important changes were done. -hus my
sampling came out to be judemental and convinent
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S!m9*i%$ U%i'0
-he respondents who were as ed to fill out 7uestionnaires are the sampling units. -hese
comprise of employees of ":Fs, Govt. mployees, !elf mployeds etc.
S!m9*e ,i&e0
-he sample si>e was restricted to only 1((, which comprised of mainly peoples from
different regions of $elhi due to time constraints.
S!m9*i%$ Are! 0
-he area of the research was :ew $elhi, India.
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MARKETING STRATREGIES OF THE COMPANY
SOME OF THE STRATEGIES ADOPTED BY PNB MET LIFE
COMPANY
P:% " - 3I< plans 2.A)crore telephony subscriber base to mar et its products.
-he company is considering a series of options to leverage its relationship with P:%
" - 3ife
/owever, a joint product or a co)branded solution would re7uire approval from the
Insurance egulatory and $evelopment &uthority
Fustomers of World, the information and entertainment portal of eliance
Fommunications, would also be able to pay premiums through a ban account, provided
the ban is listed on the networ .
P:% " - 3I< officials, however, offered no comment when as ed whether there
would be an arrangement for payment of commission.
&s an alternative channel for distribution, insurance companies usually tie up with ban s.
In the case of banc assurance, where there is a corporate agency tie)up, the commission
could range from A per cent to *( per cent of first)year premium depending on the
commission loaded on to the product at the time of registration with I $&.
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DATA ANALYSIS INTERPRETATION
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES
COMPANY S NAME NO OFRESPONDENT SHARE ( /
PNB MET LIFE
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DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY ESPONDENTS
BENEFITS NO OFRESPONDENTS SHARE ( /
Fover
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DATA PROVIDES FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS
FEATURE NO OFRESPONDENTS
SHARE ( /
"oney %ac Guarantee 1A 1A
3arger is Foverance ;D ;D
asy &ccess to &gents D D
3ow Premium ;( ;(
Fompany#s eputation 11 11
-H-&3 1(( 1((
FEA !RE" #F I$"!RA$%E P#&I%'
57D
:6D
6D
55D
:-D
M NEY 9*CK
>U**4ENTEE
L*4>E4 4ISK
C VE4*NCE
E*SY *CCESS T
*>ENTS
L G +4EMIUM
4E+UT*TI N F
C M+*NY
INTERPRETATION
"ajority of the respondent ';DE+ found 3arger ris coverage as the most
attracted feature of the all.
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DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS
POLICY TYPE NO OFRESPONDENTS
SHARE ( /
P:% " -3I< DA DA
:H: 3I< PH3IFK 2A 2A
%H-/ *A *A
$A !RE #F P#&I%'
67
,7
;7
LIFE+ LICYN N LIFE+ LICY9 TH
INTERPRETATION
DAE of the respondents have P:% " - 3I< Policy while *AE have both '-he E
is calculated out of 2 ( positive response+
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DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO OFRESPONDENTS
SHARE ( /
& saving tool 1 1E
& ta= saving device D* D*E
& tool to protect your family 1(( 1((E
INTERPRETATION
1E of the respondents have perception of Insurance being a saving tool.
&nd D*E of the respondents have perception of Insurance being a ta= saving device.
%ut 1((E of the respondents are with the view that Insurance is a tool to protect
your family.
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DATA SHOWS PEOPLES HAVING INSURANCE
RESPONSE NO OFRESPONDENTS
SHARE ( /
Kes D( D(E
:o ;( ;(E
-otal 1(( 1((E
INTERPRETATION
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6-D
:-D
'es$o
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Hf the sample si>e of *(( surveyed respondents D(E of the respondents are having
Insurance policy.
;(E of the respondents are either not having any Insurance policy at present or their
policy is already matured.
&nd at present 1((E of the respondents are with the view that Insurance is a tool to
protect your family.
DATA SHOWS BUYING PROCESS OF THE PEOPLE
BUYING PROCESS NO OFRESPONDENTS
SHARE ( /
Fustomer approached Insurancecompany5&gent
*A *AE
Fompany5agent approached
customer
AA AAA
-otal 1(( 1((E
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77D;7D
%ustomer a((roached Insurance com(any)Agent
%om(any)agent a((roached customer
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INTERPRETATION
**.AE of the respondents approached the P:% " - 3ife Insurance &gent.
Whereas, AA.AE of the respondents were approached by the Fompany 5&gent.
DATA SHOWS REASONS BEHIND FOR INSURANCE
RESPONSE NO OFRESPONDENTS
SHARE ( /
-a= saving ( (E
!aving 5 Investment ( (.E
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(.D1E of the espondents opted for saving 5 Investments.
%ut all of them, i.e. 1((E of the respondents have opted for insurance for their
family protection.
DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TOPOLICY
RESPONSE NO OFRESPONDENTS
SHARE ( /
!atisfied B( B(E
:ot satisfied *( *(E
:ot esponded ( (.(E
-otal 1(( 1((E
INTERPRETATION
B(E of the respondents are more or less satisfied with their e=isting policy.
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-D
;-D
A-D
"atis-ied $ot satis-ied $ot Res(onded
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*(E of the respondents are not satisfied with their e=isting policy.
In this case all of those who have ta en a policy have responded.
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CHAPTER VI
CONCLUSION
Hur e=haustive research in the field of Insurance threw up some interesting trends which
can be seen in the above analysis. & general impression that we gathered during $ata
collection was the immense awareness and nowledge among people about various
companies and their insurance products. People are beginning to loo beyond 3IF for
their insurance needs and are willing to trust private players with their hard earned
money.
People in general have been impression by the mar eting and advertising campaigns of
insurance companies. & high penetration of print , radio and -elevision ad campaigns
over the years is beginning to have it#s impact now.
-he general satisfaction levels among public with regards to policy and agents still
re7uires improvement. %ut therein lays the opportunity for a relative new comer li e
I:G. 3IF has never been nown for prompt service or customer oriented methods and
eliance can build on these factors.
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S)$$e,'i"%
&ccording the survey only *2E people are insured in $ehradun so
reaming other part is potential for insurance sector.
&mong that *2E people who having insurance, they have insurance *(E
for self 2 Efor spouse 21E for children and 1 E for their parents and
11E for all family member, also its very help full for insurance sector so
they should ta e necessary step for capture this potential.
Hnly *2E people having insurance in $ehradun in that *2E there are
2 E people are under insured and other 1 E people are fully insured
according to their income so that is also plus point for insurance sector to
capture the mar et
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BIBLIOGRAPHY
7 BOOKS MAGA INES REFFERED0
!- $K G I$ ) P I:FI3 ! 6 P &F-IF ! H< 3I< 5
G : &3I:! &:F , by &I"&.
%oo s published by I:! &:F I:!-I- - H< I:$I&
3I< )I:! &:F , by "c GI33
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I:! &:F W&-F/.
"H: KH -3HHL.
5 WEBSITES REFFERED0
WWW.P:%" -3I< .FH.I:
WWW CIFAINSURANCE COM
WWW MONEYOUTLOOK COM
WWW INSURANCE IND COM
3 REPORTS ARTICLES REFFERED0
PH -8 I!! ! 6 F/&33 :G !
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UESTIONNAIRE
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES
COMPANY S NAME NO OFRESPONDENT SHARE ( /
PNB MET LIFE
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3ow Premium ;( ;(Fompany#s eputation 11 11-H-&3 1(( 1((
DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE
RESPONDENTS
POLICY TYPE NO OFRESPONDENTS
SHARE ( /
P:% " -3I< DA DA
:H: 3I< PH3IFK 2A 2A
%H-/ *A *A
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO OFRESPONDENTS SHARE ( /
& saving tool 1 1E
& ta= saving device D* D*E
& tool to protect your family 1(( 1((E
DATA SHOWS PEOPLES HAVING INSURANCE
RESPONSE NO OFRESPONDENTS
SHARE ( /
Kes D( D(E
:o ;( ;(E
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DATA SHOWS BUYING PROCESS OF THE PEOPLE
BUYING PROCESS NO OFRESPONDENTS
SHARE ( /
Fustomer approached Insurancecompany5&gent
*A *AE
Fompany5agent approachedcustomer
AA AAA
-otal 1(( 1((E
DATA SHOWS REASONS BEHIND FOR INSURANCE
RESPONSE NO OFRESPONDENTS
SHARE ( /
-a= saving ( (E
!aving 5 Investment ( (.E
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!atisfied B( B(E
:ot satisfied *( *(E
:ot esponded ( (.(E
-otal 1(( 1((E