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EXPANSION OF DITRIBUTION NETWORK AND

BUSINESS LEAD GENERATION

A PROJECT REPORT

Submitted to the

SRM SCHOOL OF MANAGEMENT

In partial fulfillment of the

OF

MASTER OF BUSINESS ADMINISTRATION

BY

ARVIND KUMAR (Reg. No. - 35080070)

Under the guidance of

Dr. T. RAMACHANDRAN

SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY

KATTANKULATHUR 603203

MAY 2010


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[SRM SCHOOL OF MANAGEMENT] Page 2

BONAFIDE CERTIFICATE

Certified that this project report titled EXPANSION OF

DITRIBUTION NETWORK AND BUSINESS LEAD

GENERATION-IN BIKANER (RAJ.) iiss tthhee bboonnaaffiiddee wwoorrkk bbyy MMrr..

AARRVVIINNDD KKUUMMAARR wwhhoo ccaarrrriieedd oouutt rreesseeaarrcchh uunnddeerr mmyy ssuuppeerrvviissiioonn..

CCeerrttiiffiieeddffuurrtthheerr,,tthhaattttootthheebbeessttooffmmyykknnoowwlleeddggeetthheewwoorrkkrreeppoorrtteeddhheerree

iinn ddooeess nnoott ffrroomm ppaarrtt ooff aannyy ootthheerr pprroojjeecctt rreeppoorrtt oorr ddiisssseerrttaattiioonn oonn tthhee

bbaassiissooffwwhhiicchhaaddeeggrreeeeoorraawwaarrddwwaassccoonnffeerrrreeddoonnaanneeaarrlliieerrooccccaassiioonnoonn

tthhiissoorraannyyootthheerrccaannddiiddaattee..

Dr. T. Ramachandran Dr. Jayshree Suresh

(project guide) (Head of department)


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DECLARATION

I am Arvind Kumar student of MBA IV Semester of SRM School of

Management Chennai, hereby declare that the report titled Expansion

of distribution network and Business lead generation is

submitted by me in the line of partial fulfillment of course objectives for

the Masters of Business Administration Degree.

I assure that this project is the result of our own efforts and that any other

institute for the award of any degree or diploma has submitted it.

Date: Arvind Kumar

Place: MBA (IV SEM.)

Reg. No.-35080070


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ABSTRACT

The project report of the company IFFCO-TOKIO General Insurance

Company Limited is prepared to understand EXPANSION OF

DITRIBUTION NETWORK AND BUSINESS LEAD

GENERATION at Bikaner (Rajasthan).

With this research survey, it is tried to figure out to find out about the

awareness of insurance in people mind.

Insurance is not purchased it is sold by channel of distribution so before

selling it has to be made known to the people by making them aware. The

belief that Insurance is necessary for ones life is to be made inculcate in

them.

Research objective is to find out new Insurance Advisor and follow them

up and to find out new way of recruitment of Insurance Advisor as

through Internet, Walk-In Interview or Past Experience basis.

What factors as a consumer will a normal person have in his/her mind,

which will compel him/her to buy insurance policy.

In this descriptive type of research the random selection process is used to

collect primary data with the help of Questionnaire. The data from ITGI

Company Limited was also available and helpful for the completion of the

project.


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CHAPTER

NO.

TITLE PAGE NO.

1 INTRODUCTION

1.1 Executive Summary 9

1.2 Introduction 11

1.3 Purpose of study 14

1.4 Objective and scope of study 15

1.5 Limitation of study 16

2 PROFILE

2.1 Company profile 17

2.2 Theoretical background 18

2.3 Services & features 26

3 RESEARCH DESIGN

3.1 Research methodology 29

3.2 Method of data collection 34

4 FINDING & ANALYSIS

4.1 Finding of Study 37

4.2 Table and Charts 42

4.3 Statistical data analysis & interpretation 59

5 CONCLUSION

5.1 Recommendation 61

5.2 Conclusion 62

6 Annexure 63

CCOONNTTEENNTTSS


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LIST OF TABLES

S.No TITLE OF THE TABLE Page No.

1. Number of respondent 37

2. Age of respondent 39

3. Family income per month 41

4. Desire to become financial consultant 43

5. Interest to buy different polices 45

6. Influencing factor to interest for ITGI 47

7. Contributing factor to become insurance advisor 49

8. Size of social contract 51

9. Having other General Insurance polices 53

10. Current occupation 55

11. Education qualification 57


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LIST OF CHARTS

S.No TITLE OF THE CHART Page No.

1. Number of respondent 38

2. Age of respondent 40

3. Family income per month 42

4. Desire to become financial consultant 44

5. Interest to buy different polices 46

6. Influencing factor to interest for ITGI 48

7. Contributing factor to become insurance advisor 50

8. Size of social contract 52

9. Having other General Insurance polices 54

10. Current occupation 56

11. Education qualification 58


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(1.2) INTRODUCTION

Insurance businessis divided into four classes:

1) Life Insurance

2) Fire Insurance

3) Marine Insurance and

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; General Insurers transact the rest.

No composites are permitted as per law.

LEGISLATION:-

Insurance is a federal subject in India. The primary legislation that deals with

insurance business in India is:

Insurance Act, 1938 and Insurance Regulatory & Development Authority Act, 1999.

Life Insurance-

Popular Products: Endowment Assurance (Participating), and Money Back

(Participating). More than 80% of the life insurance business is from these

products.

General Insurance-

Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle

insurance is compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates for some of the generalinsurance products (please visit website of GIC for details)


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CUSTOMER PROTECTION:-

Insurance Industry has Ombudsmenin 12 cities. Each Ombudsmanis empowered to

redress customer grievances in respect of insurance contracts on personal lines where

the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman

Scheme. Addresses can be obtained from the offices of LIC and other insurers.

INDIAN INSURANCE INDUSTRY:-

Insurance industry, as on 1.4.2000, comprised mainly two players:

The state insurers

Life Insurance Corporation of India (LIC)

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a

National Reinsurer)

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these

subsidiaries have been de-linked from the parent company and made as independent

insurance companies.

The Oriental Insurance Company Limited

The New India Assurance Company Limited

National Insurance Company Limited

United India Insurance Company Limited.

Other life insurers

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Company Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited

Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.
http://en.wikipedia.org/wiki/Ombudsmenhttp://en.wikipedia.org/wiki/Ombudsmanhttp://en.wikipedia.org/wiki/Ombudsmanhttp://en.wikipedia.org/wiki/Ombudsmen


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SBI Life Insurance Company Limited .

ING Vysya Life Insurance Company Private Limited

Bajaj Allianz Life Insurance Company Limited

Metlife India Insurance Company Ltd.

IDBI Fortis Life Insurance

Reliance Life Insurance Company Limited.

Aviva Life Insurance Co. India Pvt. Ltd.

Sahara India Insurance Company Ltd.

Shriram Life Insurance Company Ltd.

Bharti AXA Life Insurance Company Ltd.

Future Generali India Life Insurance Company Limited

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

Aegon Religare Life Insurance Company Ltd.

DLF Pramerica Life Insurance Company Ltd.

Star Union Dai-ichi Life Insurance Co. Ltd.,

OTHER GENERAL INSURERS

Name of the Company

Royal Sundaram Alliance Insurance Company Limited

Reliance General Insurance Company Limited.

IFFCO Tokio General Insurance Co. Ltd

TATA AIG General Insurance Company Ltd.

Bajaj Allianz General Insurance Company Limited

ICICI Lombard General Insurance Company Limited.

Apollo DKV Insurance Company Limited

Future Generali India Insurance Company Limited

Universal Sompo General Insurance Company Ltd.

Cholamandalam General Insurance Company Ltd.

Export Credit Guarantee Corporation Ltd.

HDFC-Chubb General Insurance Co. Ltd.

Bharti Axa General Insurance Company Ltd.

Raheja QBE General Insurance Co. Ltd
http://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurancehttp://en.wikipedia.org/wiki/IDBI_Fortis_Life_Insurance


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(1.3) PURPOSE OF THE STUDY

This project report deals with the Expansion of Distribution Network and Business

Lead Generation in Bikaner Area. IFFCO-Tokio General Insurance (ITGI). Inaddition, emphasize on business generation through the selling of policies by advisors.

The main competitors are ICICI PRUDENTIAL LIFE, BAJAJ ALLIANZ LIFE,

TATA AIG LIFE, BIRLA SUN LIFE, MAX NEW YORK LIFE, AVIVA LIFE etc.

This study also strikes on how people reacted towards ITGI to become insurance

advisor. Recruitment procedure was emphasized on target customers like Motor

owners, Businessman, Housewife, VRS, Teachers, TAX Consultant, Financial

Consultant, Student, Youth, and Insurance Agents.

The main purpose was to get practical experience in the market. How should handle

the different customers in target market on the presence of various constraints.

This was also based on how to recruit people for Insurance with the help of marketing

and communication techniques.


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(1.4) OBJECTIVE AND SCOPE OF THE STUDY

The objective of this study is to present a dissertation for the fulfillment of part of

requirement for MBA from SRM University, Chennai. The broad objective of this

study is to give practical knowledge and training to us.

The main objective was to conduct summer training to recruit Insurance Advisor for

IFFCO-Tokio General Insurance (ITGI)on the presence of various competitors and

difficult traditional market situation.

Objective Include:

To find out the awareness of private insurance players and Brand image of ITGI in

the mind of people.

To penetrate the traditional market this is captured by GIC of India.

To find out new insurance advisor to ITGIand find out new way of sales

promotion techniques as well as recruitment techniques and also distribution

network to generate business.

To find out the attitude of new customers and existing customers towards ITGI.


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(1.5) LIMITATION OF STUDY

Some of the limitations of the project are listed as below:-

1. The time period of just 2 months was the major limitation.

2. Due to the financial and time constraints a cluster analysis of the population so

as to get better results was not feasible.

3. It was difficult to break the ice with the common people initially. It was a

daunting task to convince them to fill in the personal details of thequestionnaire where they have to mention the yearly expenses on printing.

4. To convince the people for a proper interviewing process was also difficult.

5. Compilation of data on competitor analysis was difficult due to non-

availability of correct information.

6. The figures have been taken as approximations.


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CHAPTER II

(2.1) COMPANY PROFILE

IFFCO-Tokio General Insurance (ITGI)was incorporated on 4th December 2000

with a vision of being industry leader by building customer satisfaction through

fairness, transparency, and quick response. It is a joint venture between the Indian

Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and

Nichido Fire Group, the largest listed insurance group in Japan.

ITGI has Pan India presence with 51 Strategic Business Units and a wide network of

over 110 offices. It offers a wide range of uniquely customized policies covering a

wide range of customers, from farmers to some of India's largest automobile

manufacturers. From a modest Rs 2130 Million of GWP (Gross Written Premium) in

2001-02 it has achieved an impressive Rs 12350 Million in 2007-08, thereby

becoming one of Indias leading private players.

ITGI has got the Technical Support for underwriting and reinsurance from Tokio

Marine and on Risk Management from Tokio Risk Consulting (TRC). It is the first

company in India to underwrite mega policies for a fertilizer and an automobile

company. This comprehensive policy is based on international rates and optimizes the

premium outflow for clients even as it offers a one-stop, all-risk cover. Other than theconventional products, it has been able to come out niche products like Credit

Insurance, Fine Arts Insurance, P & I Insurance, and Errors & Omissions Policy for

the IT Sector etc. At the same time it has steadfastly carried out its rural centric

initiatives by launching products like Sankat Haran Bima Yojana, Mausam Bima

Yojana, Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses.

It is also the only insurance company in the country to have a 100%-owned

distribution channel to service its retail customers called IFFCO-TOKIO Insurance

Services Ltd (ITIS). Today, ITIS has a highly motivated workforce of over a 1000

employees in over 200 towns.

As a customer focused company, it conducts bi-annual customer satisfaction surveys

through independent agencies to gauge its operational efficiencies. This is backed by a

robust IT infrastructure, which has enabled, among other things, speedy settlement of

claims.


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(2.2) THEORETICAL BACKGROUND

Development of Insurance Sector:-

Insurance is one of the important instruments designed to deal with risk through

sharing. Insurance is related to protection of the economic value of assets. Every asset

has a value. The assets would have been created through the efforts of the owner in the

expectation that either through the income generated there from or some other output,

some of his needs to be met. However if the asset gets lost earlier, being destroyed or

made non functional through an accident or other unfortunate event, the owner and

those deriving benefits their from suffer. Insurance is a mechanism that helps to

reduce such adverse consequences.

In this simplest aspect it is imbued with two fundamental characteristics:

It transfer risk from one person to a group, and

It facilitates sharing of losses, on some equitable basis, by all members of group. The

importance of insurance is two folds.

From individual point of view:-

Insurance is an economic device whereby the individual substitutes a small certain

cost (the premium) for a large uncertain financial loss (the contingency insured

against) that would exist if it were not for the insurance.

From the social point of view:-

Insurance may be perceived device to be an economic instrument, which reduce and

eliminates risk through the process of combining a sufficient number of homogeneous

exposure into a group and makes the losses predictable for a group as a whole.


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hold for liberalization of Insurance Sector for a faster development of infrastructure

and basic facilities in India.

1971

Management of Non-Life insurers was taken over by the Central Government as a

prelude to nationalization.

1972

Watershed in the history of General Insurance Business in India. General Insurance

business was nationalized with effect from Jan1, 1973 by the General Insurance

Business (Nationalization) Act, 1972 Prior to 1973, general insurance was urban

centric, catering, catering mainly to the needs of organized trade and industry. 107

insurers including branches of foreign companies operating the country were

amalgamated and grouped into four companies, viz the National Insurance Company

Ltd. The Oriental Insurance Company Ltd, The New India Assurance Company Ltd,

and The United India Insurance Company Ltd, GIC was incorporated as a company in1972 and commenced business on January 1

st1973.

The Government subscribed to its capital that, in turn, subscribed to the capital of the

four companies. GIC was designated as the reinsure under the Insurance Act, to

which all the domestic insurers were obliged to cede 20% of gross direct premium in

India. In order to ensure maximum retention in the country and to secure the best

terms from foreign reinsures, GIC and its subsidiaries have a common program for

reinsurance cessions.

The role of malhotra committee:-

1993: First Step to Liberalization Malhotra Committee formed to recommend

measures to deregulate Indian Insurance Sector. The following recommendation was

forwarded to liberalize the Insurance sector.

The private sector should be allowed to enter the insurance business, but no single

company will be allowed to transact both life and general insurance business. The

number of entrance should be controlled.

The new entrants should write a specified portion of their business in rural areas.

Minimum paid up capital of new entrant should be 100 crores. The promoters holding

in a private business company should not exceed 40% of the total. However, if the


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promoters wish to start with a higher holding, they should be permitted to do so

provided their holdings is brought down to 40% within a specified time through public

offerings.

If and when the entry of foreign insurance companies is permitted, it should be on a

selective basis. They would be required to float an Indian company for the purpose,

preferably as a joint venture with an Indian partner.

The controller of insurance should effectively start functioning before the private

sector is allowed to enter the insurance field.

Regulatory and prudential norms as well as conditions for ensuring level playing fields

among insurer should be finalized early so that intending entrants are aware of to

insure that the life insurers do not neglect the small man or rural business and general

insurers have balance portfolios and

Though the nationalized insurance companies are in a position to face competition, it

is essential that they quickly upgrade their technology, recognize themselves on more

efficient lines.

The Liberation of the insurance sector has been the subject of much debate for some

years. The policy maker were in the catch of twenty-two situation where in for one

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

extremely essential for channeling the investments in the policy makers had the fears

that the insurance premea which are substantial, would slip cut of the country and

wanted to have a cautious approach of opening for foreign particular in the sector.

IRDA came into picture with its important provision.


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Insurance Regulatory and Development Authority:-

The Insurance Regulatory and Development Authority(IRDA) is a national

agency of the Government of India, based in Hyderabad. It was formed by an act of

Indian Parliament known as IRDA Act 1999, which was amended in 2002 to

incorporate some emerging requirements.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999laysdown the duties,powers and functions of

IRDA-

(1) Subject to the provisions of this Act and any other law for the time being in force,

the Authority shall have the duty to regulate, promote and ensure orderly growth of theinsurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1),

the powers and functions of the Authority shall include,

issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance

claim, surrender value of policy and other terms and conditions of contracts of

insurance;

specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

specifying the code of conduct for surveyors and loss assessors;

promoting efficiency in the conduct of insurance business;

promoting and regulating professional organisations connected with the insuranceand re-insurance business;

levying fees and other charges for carrying out the purposes of this Act;

calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organisations connected with the insurance business;
http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Government_of_India


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control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under section 64U of the Insurance

Act, 1938 (4 of 1938);

specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance

intermediaries;

regulating investment of funds by insurance companies;

regulating maintenance of margin of solvency;

adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

supervising the functioning of the Tariff Advisory Committee;

specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organisations referred to in clause (f);

specifying the percentage of life insurance business and general insurance business

to be undertaken by the insurer in the rural or social sector; and

exercising such other powers as may be prescribed

Licensing of insurance agent, (Regulation, 2000):-

The IRDA has announced regulation pertaining to licensing of insurance agent, which

has come into force with effect from 14th

July 2000.

Qualification: An insurance agent should satisfy the following requirements

Posses a minimum educational qualification of 12th

standard or equivalent where

the applicant resides in a place with a population of five thousand or more as per thelast census. In any other place, the applicant should satisfy a minimum educational

qualification of 10th

standard or equivalent.

Complete one hundred hours (100) of practical training in life insurance business,

from an approved institution, where the applicant is seeking a license for the first


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timeto act as an insurance agent. This training requirement is relaxed in certain

situation where the applicant possesses professional qualification.

Pass the pre-recruitment test, based on an examination conducted by the Insurance

Institute of India (III) or another approved body.

Have the requisite knowledge to solicit and procure insurance business.

Be capable of providing necessary service to the policyholders.

The agency system:-

Clause 3of the regulation provide that an agent can represent only onelife insurer oronegeneral insurer or both, at a time.

This implies that the agent will have to terminate his/her contract, if any, with an

existing Life or general insurer before joining another life or general insurer.

.

A person having both agencies, life and general, shall be known as a Composite

Agent.

In addition to this, all licenses renewed prior to notification of the new regulations will

be valid only for the period mentioned in the license. All new licenses issued

thereafter shall be valid for a period of three years.

The training referred to in the regulations, will be initially organized by HDFC

STANDARD LIFE INSURANCE COMPANY LTD. This training will enable the

applicants to qualify for the pre-recruitment examination to be conducted by the

Insurance Institute of India (III) or any other approved examination body.


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Scope of Insurance Business in India:-

The Malhotra Committee estimated that the insurance operation penetration in India is

to the extent of about 25% of insurable population. As of 1999-2000, LIC has about

10 crore policies in force, which contribute a Premium of about 6% of the GDS (Gross

Domestic Savings) of household in India.

Based on a report by the Confederation of Indian Industries (CII), it is anticipated that

this figure of 10 crore policies in force is likely to double in the next decade. By the

year 2010, the Premium Income is expected to account for 18% of the GDS,

amounting to Rs. 5, 12,000 crore.


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(2.3) SERVICES & FEATURES

ITGI product development team is constantly working to introduce products which arecompetent in meeting the customer needs. IFFCO Tokio emphasize on understanding

the need from the market and offering the best possible products across the productlines. It approaches the market with products that have differentiated features /benefits / service offerings. IFFCO Tokio offers a wide range of uniquely customized

policies covering a wide range of customers, from farmers to some of India's largestautomobile manufacturers.

ITGI making constant efforts to reach out the entire general insurance spectrum i.e.

Commercial Lines,

Retail lines andSpecialty Lines.

Innovations will keep on expanding to include customised offerings for various market

segments and geographies.

Commercial Lines

IFFCO-TOKIO provides a wide variety of policies that are customized to customer

needs are-

Standard Fire & Special Perils

Consequential Loss

Contractors All Risk

Boiler & Pressure Plant

Erection All Risks

Industrial All Risks

Machinery Breakdown

Jeweller's Block

Machinery Loss of Profit

Product Liability

Public Lia Industrial
http://www.iffcotokio.co.in/standard-fire-special-perils.htmlhttp://www.iffcotokio.co.in/consequential-loss-policy.htmlhttp://www.iffcotokio.co.in/contractors-all-risk.htmlhttp://www.iffcotokio.co.in/boiler-pressure-plant.htmlhttp://www.iffcotokio.co.in/erection-all-risks.htmlhttp://www.iffcotokio.co.in/industrial-all-risk.htmlhttp://www.iffcotokio.co.in/machinery-breakdown.htmlhttp://www.iffcotokio.co.in/Jewellers_Block.htmlhttp://www.iffcotokio.co.in/machinery-loss-of-profit.htmlhttp://www.iffcotokio.co.in/product-liability.htmlhttp://www.iffcotokio.co.in/public-liability-act-policy.htmlhttp://www.iffcotokio.co.in/public-liability-act-policy.htmlhttp://www.iffcotokio.co.in/product-liability.htmlhttp://www.iffcotokio.co.in/machinery-loss-of-profit.htmlhttp://www.iffcotokio.co.in/Jewellers_Block.htmlhttp://www.iffcotokio.co.in/machinery-breakdown.htmlhttp://www.iffcotokio.co.in/industrial-all-risk.htmlhttp://www.iffcotokio.co.in/erection-all-risks.htmlhttp://www.iffcotokio.co.in/boiler-pressure-plant.htmlhttp://www.iffcotokio.co.in/contractors-all-risk.htmlhttp://www.iffcotokio.co.in/consequential-loss-policy.htmlhttp://www.iffcotokio.co.in/standard-fire-special-perils.html


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Public Lia Non-Industrial

Marine cargo

Elrctronic equipment

Bankers blanket

Burglary insurance

Fidelity guarantee

Money insurance

Workmens compensation

Retail Lines

IFFCO-TOKIO provides a wide variety of policies that are customized to customer

needs are-

Motor private car

Home & family protector

Industry protector

Office professional establishment

Home suvidha

Trade suvidha

Individual personal accident

Group personal accident

Swasthva kavach

Critical illness policy

All resk insurance
http://www.iffcotokio.co.in/public-liability-non-industrial.htmlhttp://www.iffcotokio.co.in/public-liability-non-industrial.html


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CHAPTER III

(3.1) RESEARCH METHODOLOGY

Marketing research is the systematic and objective identification,

collection, analysis, and dissemination of information for the purpose of

assisting management in decision making related to the identification and

solution of problems and opportunities in market.

The task of marketing research is to provide management with relevant,

accurate, reliable, valid, and current information. Competitive marketing

environment and the ever-increasing costs attributed to poor decision

making require that marketing research provide sound information. Sound

decisions are not based on gut feeling, intuition, or even pure judgment.

The information can only be gathered by data collection and then

analyzing the available data.

Therefore, it can be said that the data collection is an important part

of the project.

InformationData

Raw numbers

The projected objectives were considered and as per the requirement a

market survey was done.


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Procedure:-

The procedure that followed can be enlisted as below:

Reading about the product

Deciding on the objective to proceed.

Developing Survey instruments

Conducting personal interviews of different age-groups, sex, monthly

income and occupation through a Questionnaire.

Finally analyzing the data of various Geographic areas and trying to

study with the other players.

Process adopted:-

1. Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave

not only in depth knowledge about what is been offered by other

players but also proved useful while developing the questionnaire.

2. Steps in the Development of the Survey Instruments

The main instruments required for survey was a well-developed

questionnaire. The questionnaire development took place in a series

of steps as described below:


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1Research objectives are being transformed into

information objectives.

3The Appropriate data collection methods have been

determined

5The information required by each objective is being

determined.

7Specific Questions/Scale Measurement format is

developed.

9The number of information needed is being

determined.

11 Question/Scale Measurements is being evaluated.

13

Research objectives are being transformed into

information objectives.

15The questionnaire and layout is being evaluated.


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17Revise the questionnaire layout if needed.

19The Questionnaire format is being finalized.

FORMULATION OF OBJECTIVE:-

The first step in market research understands the problem. After defining the

objective an efficient plan should be developed for gathering information. The

researcher should have skill to design the research approach and research area. In my

project with the help of my superiors in ITGI, I have formulated the objective and

accordingly worked on it.

SAMPLE PLAN:-

A proper sampling plan is very important in the research process and it also makes the

research process easy. It includes the sampling element, sample size and sample area.

SAMPLE ELEMENT:-

It includes those respondents who are going to fill up and answer the questionnaire.

SAMPLE SIZE:-

Project worked on a sample size of fifty prospective people who showed interest in

knowing the product and also becoming the Insurance Advisor.


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SAMPLE AREA:-

Research worked out at Bikaner (Rajasthan) area. Particular respondent Choosen are

Business man, Motor owner, Financial Consultant, VRS, Housewife, Insurance

Advisor, Student, Tour & Travel Agency, Teachers, and Young Unemployed Youth.

Our main task was interviewing the people and to analyze their attitude towards ITGI.


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(3.2) METHOD OF DATA COLLECTION

A variety of collection methods can be employed, individually or in combination.

Factors commonly influencing the choice between these designs include:

Nature and quality of the frame

Availability of auxiliary information about units on the frame

Accuracy requirements, and the need to measure accuracy

Whether detailed analysis of the sample is expected

We conduct primary research by gathering original data. Secondary research is

conducted on data published previously and usually by someone else. Secondary

research costs far less than primary research, but seldom comes in a form that exactly

meets the needs of the researcher.

Research instrument:-

I used questionnaire as research instrument to collect the requisite information for the

research. Questionnaire method was chosen because of its versality. Almost every

market problems involves people. Therefore ideas relative to people and its solution

can be obtained by asking them about their problems. This type has the advantage that

the respondents do not know exactly what is being measured and hence are not biased

their answer to some extent.

My research design made it necessary for me to collect accurate data to achieve useful

result. For this very reason I decided to use primary source of data.

Designing of questionnaire-Questionnaires are designed according to project

requirement and company need. So while designing the questionnaire we have to

include both awareness about Insurance and Investment. But our main objective was

to find new Insurance Advisor so that questionnaire was designed according to gather

data and find out the prospective Insurance Advisor.


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First part of the questionnaire deals with the data of the person I am interviewing

that consist of personal details-

Name of the concerned person-So that the person could be identified when

contacted later.

Address of person-For direct contact or useful in mailing some of the pamphlets.

Phone No. This is the important part of the questionnaire as it is code by which a

person can contacted directly.

Employment details-So that persons status can be found out and also his premium

paying ability.

Family details-This is very useful information as the need of that human being canbe traced.

Second part of the questionnaire

Investment awareness- First we are catching the investment awareness of the

person by asking him that whether he thinks investment planning is necessary or

not for managing his wealth.

Categorized the need- Next what we did was to rank his investment in priority wise

like in Fixed Deposit, Life Insurance, Provident Fund, Mutual Fund, Jewellary etc.

It helps to understand the people motive in investment whether he is-

Protector

Builder

Enhancer

Family Income -It includes the family background of person. This was basically

emphasized on monthly income person.

Educational Qualification It was more important to know about persons

educational qualification to become an Insurance Advisor. So minimum qualification

was mentioned 10th

pass and maximum was post-graduation.


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Current Occupation It was necessary to know that persons source of income i.e.

they were self-employed, salaried, student or housewife. It also clarified that person

had any insurance agency or not.

Size of Social Contract -It was very important element. Because for a insurance

advisor, social contract is very necessary. Insurance advisor sells policies to customers

and policies are sold also on the basis of believeness. So social contract is very

important. It may be either relatives or friends.

Reason for taking insurance Policy - Itwas a general question just to know the

awareness of the different needs of a human being while taking an insurance policy.

Now the important part of the questionnaire, which was mainly designed from the

companys point of view to find new customer.

Questions like-

-Have you done a insurance planning?

-Is any advisor from any company does come to suit his needs and whether he wants

to meet any body from our company?

Insurance awareness- Firstly it was asked whether the person has any insurance

policy of any other company, the name of the company, sum assured, and purpose.

This is mainly asked to know whether the people mind has changed towards the

insurance players in the market or it is sticked to the old players. Another purpose was

to decipher whether the person is able to afford another premium, which is judged by

the sum assured and his monthly income.


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CHAPTER IV

(4.1) FINDING OF STUDY

(1.) Number of respondents

TABLE 1

S. NO SEX NO. OF

RESPONDENT

FREQUENCY IN

%

1 MALE 36 72%

2 FEMALE 14 28%

GRAND

TOTAL

50 100.0

INFERENCE:

The above data shows that there are fifty respondents. In which the number of female

respondent in % frequency is 28%. The male respondent in % frequency is 72%.


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CHART 1

72%

28%

Male

Female


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(2.) Age of respondents

TABLE 2

S.NO. AGE NO. OF

RESPONDENT

FREQUENCY IN

%

1 BELOW

18

2 4%

2 18-25 9 18%

3 25-40 19 38%

4 40-60 17 34%

5 ABOVE

60

3 6%

GRAND

TOTAL

50 100.0

INFERANCE:

Above data shows that only two persons were minor and rest were major. 38%

respondents were belonging to age between25-40. There were only 3 persons

belong to above 60 years. Data shows that sharing of youth were 18%.

Recruitment of Insurance Advisor came under the age between40-60.


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CHART 2

4%

18 %

38 %

34 %

6%Below 18

18-25

25-40

40-60

Above 60


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CHARTS 3

10%

26%42%

22%

0-6,000

6,000-10,000

10,000-15,000

More than 15,000


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(4.) Desire to become financial consultant

TABLE 4

S.NO. DESIRE TO BECOME

FINANCIAL

CONSULTANT

NO. OF

RESPONDENT

FREQUENCY

OF %

1 YES 32 64

2 NO 18 36

GRAND TOTAL 50 100%

INFERANCE:

There were 50 respondents in which 32 persons were highly interested to become

financial consultant of ITGI. These data shows the brand image of ITGI among

people not only Metros but also in suburban


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CHART 4

64%

36% Yes

No

.


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(5.) Interest to buy Different policies

TABLE 5

S.NO NO. OF

RESPONDENT

RESPONSE

1 30 YES

2 20 NO

INFERANCE:

According to data 60% of respondents were interested to buy different policies of

ITGI, 40% respondents were not interested to buy policies.


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CHART 5


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(6.) Influencing Factor to interest for ITGI

TABLE 6

S.NO. INFLUENCING

FACTOR

NO. OF

RESPONDENT

FREQUENCY

OF %

1 BRAND NAME 26 52

2 MARKET VALUE 14 28

3 QUALITY &

SERVICE

10 20

GRAND TATAL 50 100.0

INFERANCE:

Above data shows that people are aware about ITGI through Brand image in market

that means influencing factors to interest for ITGI is Brand Name of Company.

Second factor is Market Value of company and third is best Qualities and Services,

which are provided by ITGI


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CHART 6

52%28%

20%Brand Name

Market Value

Quality & Service

.


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(7.) Contributing Factor to become Insurance Advisor

Table 7

S.NO. NO. OF

RESPONDENT

FREQUENCY

OF %

1 FRIENDS ADVICE 18 36

2 ADVERTISEMENT 10 20

3 COMPANY'S

REPUTATION

22 44

GRAND TOTAL 50 100.0

INFERANCE:

Above chart shows that the most important contributing factor to become Financial

Consultant was the Friends Advice. The second contributing factor was the

Companys Reputations in market. Advertisement was the third contributing factors.


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(8.) Size of Social Contract

TABLE 8

S.NO. SOCIAL CONTRACT NO. OF

RESPONDENT

FREQUENCY

OF %

1 RELATIVES 32 64

2 FRIENDS 18 36

INFERANCE:

Above data shows that the size of social contact of respondents were 64% Relatives

and 36% Friends.


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CHART 8

64%

36%

Relatives

Friends

.


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(9). Having any other General Insurance Policy

TABLE 9

S.NO. RESPONSE NO. OF

RESPONDENT

FREQUENCY

OF %

1 YES 14 28

2 NO 36 72


INFERANCE:

In 50 respondents, only 14 persons having the different type of General Insurance

Policies. 36 persons have not any Policies. That means there is a little bit awareness

about private insurance companies among people.


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CHART 9

28%

72%

Yes

No


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(10.) Current Occupation

TABLE 10

S.NO. OCCUPATION NO. OF

RESPONDENT

FREQUENCY

OF %

1 SALARIED 12 24

2 STUDENT 6 12

3 SELF-EMPLOYED 22 44

4 HOUSE-WIFE 10 20


INFERANCE:

Current Occupation shows that the different working activities of persons in societies.

There were 44% people belonging to either self-employed or own business.

Housewives were only 20%. Salaried based only 24%.


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CHART 10

24%

12%

44%

20%

Salaried

Student

Self-employed

House-wife


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(11.) Educational Qualified

TABLE 11

S.NO.

EDUCATIONAL

QUALIFIED

NO. OF

RESPONDENT

FREQUENCY

OF %

110TH PASS 4 8

210+2 PASS 12 24

3GRADUATION 24 48

4 POST-

GRADUATION 10 20


INFERANCE:

Educational Qualification is very important factor to become Insurance Advisor.

Above data shows that there were 48% respondents belonging to Graduation. It

has maximum contribution in total number of respondents. Only 8% people were

belonging 10

th

Pass. The minimum criteria to become Insurance Advisor are 10+2Pass. So 24% people belonging minimum qualification to become Insurance

Advisor.


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CHART 11

8%

24%48%

20%

10th Pass

10+2 Pass

Graduation

Post-Graduation


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(4.2) STATISTICAL DATA ANALYSIS

AND ITS INTERPRETATION

TABLE -3

Chi- Square test as a test of Goodness of Fit. Its evaluating the relationship between

frequency of respondent interested and income of respondent.

HYPOTHESIS:

Null hypothesis (H0)

There is no significant relationship between the attributes.

Alternative hypothesis (Ha)-

There exist significant relationships between the attributes.

STEP 1:-

DATA following data was obtained from table 3

S.NO. INCOME FREQUANCY

1 0-6000 5

2 6000-10000 13

3 10000-15000 21

4 15000< 11


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STEP 2

Observed and Accepted frequencies

S.NO. O E O-E (O-E)2

(O-E)2/E

1 5 12.5 -7.5 56.5 4.5

2 13 12.5 0.5 0.25 0.02

3 21 12.5 8.5 72.25 5.78

4 11 12.5 -1.5 2.25 0.18

TOTAL 50 10.48

DEGREE OF FREEDOM:

d.f =k-1

=4-1

=3

STEP 3

Here the calculated value is 10.48. Tabulated value at 3 d.f and at 5% level of

significant level is 7.815. So the calculated chi-square value is greater than the table

value.

INFERENCE:

Since the calculate value is more than the tabulated value, and falls in critical region,

the null hypothesis is rejected i.e income of respondent is associated with frequency

of respondent.


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CHAPTER V

(5.1) RECOMMENDATION

As we know that money investment is very sensitive and crucial decision. Each and

every individual wants to minimum risk while investing the money in Insurance

sector. Insurance Advisor sells policies, so, public faith on Insurance Advisor is very

necessary to sell the policies.

Till days, public believe on public sectors Insurance Advisor. They do not believe

hundred percent on private Insurance Advisor.

Recommendations are:-

To create awareness among people about private insurance companies not only

in Metros but also in rural areas through advertisement activity.

Public should be aware about IRDA Rules and Regulation about Private

Insurance Companies through Advertisement in daily news paper as well as T.

V & Radio.

Insurance Advisor of ITGI must be trained technically and professionally so

that they could be able to influence customers easily, for this company should

give training of 15 days in 6 month to employees.

ITGI should take help of Consultancy Company while recruitment of

Insurance advisor. They should also take help of Newspaper while recruitment

of Advisor.

People should be aware about the benefits while becoming the InsuranceAdvisor of IFFCO TOKIO GENERAL INSURANCE LTD. For this ITGI

should start some public awareness programs in rural or suburban areas.


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CHAPTER VI

ANNEXURE

QUESTIONNAIRE

BIBLIOGRAPHY


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QUESTIONNAIRE

SURVEY FOR HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

Dear Sir/Madam,

I am doing a project for HDFC Standard Life Insurance Co. Ltd. HDFC

Standard Life is a joint venture of HDFC Ltd., Indias largest housing finance

company and Standard Life is Europes largest mutual fund company, and

is one of Indias leading Insurance company.

Would you be willing to participate and answer a few questions? If yes please

give me the following information: -

Personal Information: -

Name: __________________________________________________________

Age: ___________________________________________________________

Sex: ___________________________________________________________

Office Address: Residential Address :

_________________________ ________________________

_________________________ ________________________

_________________________ ________________________

Phone No. _______________ Phone No. ______________

SECTION I

Family background:

How many members do you have in your family? ________________

How many dependents do you have? __________________________

How much of them are earning? ______________________________


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BIBLIOGRAPHY

Books:-

1. Kotler Philip, Marketing Management

2. Business Research Methods(2004), Tata McGraw Hill Edition

3. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in

Practice; Kogan Page limited, 1st South Asian edition 2004.

4. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. G Stasch; Marketing

Research; All India Traveller Book Seller, 7

th

edition.

5. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook

of Marketing Skills; SAGE Publications.

6. Malhotra Naresh, Marketing Research, Prentice Hall of India.

Websites:

www.mimeo.com

www.google.com

www.hoovers.com

www.wikipedia.org

www.mouthshut.com

www.fedex.com

www.howstuffworks.com

www.google.com

www.isoft.com
http://www.wikipedia.org/http://www.wikipedia.org/


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www.abnamro.com

www.onlineprinting.com

www.irdaindia.org

www.itgi.co.in

Insurance Journal: - Institute of Insurance India.

Magazines: - Insurance, Business India.
http://www.online/http://www.irdaindia.org/http://www.irdaindia.org/http://www.irdaindia.org/http://www.online/

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