POTENTIAL OF LIFE INSURANCE INDUSTRY IN INDIA

8/10/2019 POTENTIAL OF LIFE INSURANCE INDUSTRY IN INDIA

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POTENTIAL OF LIFE INSURANCE INDUSTRY

IN INDIA

OBJECTIVES

A big boom has been witnessed in Insurance Industry in recent times.A

large number of new layers ha!e entered the mar"et and are trying to

gain mar"et share in this raidly imro!ing mar"et.The study deals

with reliance in focus and the !arious segments that it caters to.The

study then goes to e!aluate and analyse the findings so as to resent a

clear icture of trends in the Insurance Sector.

#ain Ob$ecti!es of the research is to ha!e an analysis of %ife Insurance

Industry in India and to show that how it is referred by most of the

eole in recent times. #ain Ob$ecti!es are as follows&

History of Indian Insurance Industry

Need and Importance of Insurance

Types of Insurance

Major Players in Indian Insurance Industry

Case study on LIC

Products offered by LIC

Comparative Study on LIC & ICICI policies

To kno t!e most preferred policy


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and personal investments$ Indeed% many financial planners ar'ue t!at you s!ould !ave an

ade-uate insurance safety net in place before considerin' investment strate'ies$

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T+E +ISTO(, O- I')IA' I'S*(A'CE I')*ST(,

The story of insurance is probably as old as the story of mankind

.The same instinct that prompts modern businessmen today to

secure themselves against loss and disaster existed in

primitive men also. They too sought to avert the evil

consequences of fire and flood and loss of life and were willing

to make some sort of sacrifice in order to achieve security.

Though the concept of insurance is largely a development of

the recent past particularly after the industrial era- past few

centuries-yet its beginnings date back almost 6000 years.

.. Insurance& A bac"ground

Historians believe t!at insurance first developed in summer and +abylonia$ T!e

merc!ants and traders of t!ese societies transferred and pooled t!eir money to protect

t!emselves and pirates$

In t!e /0t!Century +C% +abylonian kin' Samurai developed a code of la% knon as t!e

code of specific rules 'overnin' t!e practices of early risk s!arin' activities$ Insurance

also developed durin' t!e /122s in t!e Nort! merican colonies$ In /1.2 +enjamin

3rank contributed for t!e Insurance of Houses from Loss by fire$

4arly development of insurance as unor'ani*ed$ It as mainly insurin' commercial

risks$ T!e insurance in!uman life started in 4n'land in /50.6 for term ssurance for/, mont!s% !ic! as issued for t!e first time$ In /125 amicable society started payin'

assurance on deat! a tern carried on unto /151$ In /17, e-uitable society as t!e first co$

to start c!ar'in' premium on scientific basis$

In India t!e references to insurance !istory relates to t!e 4ast India Co$ !en some

policies !ere issued on t!e life of +ruisers in forei'n currency$

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In /012# +ombay Mutual Insurance Limited

In /018# 9riental :ovt$ Security life ssurance Co Limited

In /0;7 < +art Insurance Co$ and /0;1 empire of India$

In /;25 < no of insurance company life Hindustan co#op )nited India% +ombay Life

National < sian ere set up durin' t!e above period$

fter ,ndorld ar several ne companies ere establis!ed% most important bein' Ne

India ssurance Co$ ot!ers ere =upiter% Lame% nd!ra% Industrial Metropolitan and Ne

siatic$

T!e 'overnment started to e(ercise control it! t!e passin' of insurance act /;/, t!ere

as a marked increase in t!e volume of insurance business and ot!er form of +usiness$

More companies ere floated$ >it! a vie to !ave a closer atc! on t!e matter of

investment of funds and e(penditure and 'eneral mana'ement of business 'ovt$ enacted

t!e insurance act in /;.0 and also t!e 6ep?t of Insurance under t!e aut!ority of t!e

superintendent of Insurance as establis!ed$ T!is act as furt!er amended in /;52$

+efore nationali*ation t!ere ere ;1 operatin' centers almost all urban$ T!ere ere ,85

different insurance companies t!en$

Nationali*ation off t!e Insurance business in /; =an /;57$ LIC act of /;57 as passed by

t!e parliament and received presidential assent on /0 t!=une /;57 and act come into force

on /st=uly /;57#LIC came into e(istence on t!e /stSeptember /;57$

%ife Insurance

In /0/0 t!e +ritis! establis!ed t!e first insurance company in India in Calcutta%T!e

9riental Life Insurance Company$3irst attempts at re'ulation of t!e industry ere made

it! t!e introduction of Indian Life ssurance Companies ct in /;/,$ number of

amendments to t!is ct ere made until t!e Insurance ct as dran up in

/;.0$Noteort!y features in t!e ct ere t!e poer 'iven to t!e :overnment to collect

statistical information about t!e insured and t!e !i'! level of protection t!e ct 'ave to

t!e Public t!rou'! re'ulation and control$

T!e enactment of t!e Indian @e'ulatory and 6evelopment ut!ority ct% /;;; AI@6B

!as effected vast c!an'es in t!e !ole scenario of Indian insurance sector$ It 'ave t!e

customers a c!ance to 'et a better deal from t!e insurers$

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It can be seen t!at in most of t!e countries% in vie of t!e lar'e sum of public funds

commanded by t!em% insurance industry as kept as a state monopoly$ lt!ou'! t!e

monopoly !as lent financial stren't! and oners!ip of t!e :overnment% t!ey failed in

t!e area of customer service$ s it enters t!e ,/st century% t!e insurance industry finds

itself offerin' customi*ed products to increasin'ly diverse markets t!rou'! a ider

ran'e of distribution c!annels$.

Some of the imortant milestones in the life insurance business in India

are&

/0 T!e Indian Life ssurance Companies ct enacted as t!e first statue to re'ulate

t!e life insurance business$

/01 T!e Indian Insurance Companies ct enacted to enable t!e 'overnment to collect

statistical information abou t bot! life nad non#life insurance businesses$

/21 4arlier le'islation consolidated and amended by t!e Insurance ct it! t!e

objective of protectin' t!e interests of t!e insurin' public$

/34T!e market contained /58 Indian and /7 forei'n life insurance companies$

5+AT IS I'S*(A'CE66

Insurance is a protection a'ainst financial loss arisin' on t!e !appenin' of une(pected

eventDaccidents$Insurer collects premium to provide for t!is protection from various

people.

Insurance is a le'al contract t!at protects people from t!e financial costs t!at result from

Loss of life% loss of !ealt!% lasuits% or property dama'e$ Insurance provides a means for

individuals and societies to cope it! some of t!e risks faced in everyday life$ People

purc!ase contracts of insurance% called policies% from a variety of insurance

or'ani*ations$

Insurance is conceived as a met!od of s!arin' of t!ese losses% embodyin' t!e principle of

co#operation e(isted in t!e early civili*ation$ T!ere is evidence t!at durin' t!e ryancivili*ations% loss of profits in industry as insured by t!e villa'e co#operative in India$

lmost everyone livin' in modern% industriali*ed countries buys insurance% for instance%

las in most states re-uire people !o on a car to buy insurance before drivin' it on

public roads$ Lenders re-uire anyone !o finances t!e purc!ase of a !ome or car it!

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borroed money to insure t!at property$ +usiness partners take out life insurance on eac!

ot!er to make sure t!at business ill succeed even if one of t!e partners die$

I'S*(A'CE TE(#I'O%O7,

8olicy

Contract beteen an insurer and an insured

8rooser

Person !o si'ns t!e contract on be!alf of life insured

%ife Insured

Person on !om t!e contract !as been taken out

'ominee

Person !o is defined as t!e beneficiary of t!e policy

Insurance 8lan

Specific type of policy t!at a customer ants to take from an insurer

8olicyholder

T!e proposer in t!e contract

8remium

T!e consideration paid by t!e proposer for t!e contract

Sum Assured

+enefit for !ic! t!e policy !as been taken out

)eath Benefit

Sum ssured on deat!

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Term of 8olicy

Len't! of Insurance

)ue )ate

6ate on !ic! reneal premium is to be paid

7race 8eriod

Period beyond 'race period t!at a reneal premium can be paid it!out any financial

c!ar'es.

.0. 'eed of Insurance

Since be'innin' of t!e orld% man !as alays felt insecurity for !is assets and even life$

T!ere is uncertainty in every aspect of life$ It is an old sayin' t!at only deat! and ta( are

certain% !oever even t!e time of deat! and rate jo' ta( is not certain$ )ncertainties

e(pose our assets to losses and conse-uently endless problems$ fire in a factory may

burn everyt!in' and oner?s only source of earnin' it! investment of !u'e capital is

finis!ed but insurance ill come to one?s rescue if insurance is taken% all t!e operations

can be started a'ain$ Insurance does not only provide reimbursement at t!e time of loss

but at t!e time of takin' t!e policy% insurer provides su''estive measures to reduce t!eeffect of !a*ards and losses$ 4art!-uake% flood% riot% strike% t!eft% e(plosion% fire% etc$ are

some of t!e common dan'ers to our assets$ Moreover life insurance besides providin'

financial assistance to t!e insured% t!ese policies provide investment opportunities and

even pension plans at market interest rate$

.2 Imortance of Insurance

Insurance benefit society by alloin' individuals to s!are t!e risks faced by many people$

+ut it also serves many ot!er important economic and societal functions$ +ecause

insurance is available and affordable% banks can make loans it! t!e assurance t!at t!e

loan?s collateral is covered a'ainst dama'e$ T!is increased availability of credit !elps

people buy !omes and cars$ Insurance also provides t!e capital t!at communities need to

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-uickly rebuild and recover economically from natural disasters% suc! as floods or

eart!-uakes$

Insurance itself !as become a si'nificant economic force in most industriali*ed countries$

4mployers buy insurance to cover t!eir employees a'ainst ork related injuries and

!ealt! problems$ +usinessmen also insure t!eir property% includin' tec!nolo'y used in

production a'ainst dama'e and t!eft$ +ecause it makes business operations saferE

insurance encoura'es businesses to make economic transactions% !ic! benefit t!e

economies of countries$

Insurance companies perform a type of monetary redistribution t!ey collect premium and

eventually redistribute t!at money as payments$ 6ependin' on t!e type of insurance%

redistribution can take place any!ere from a fe mont!s to many decades$ +ecause of

t!is delay beteen collections and payin' out funds% insurance companies invest t!eir

funds to brin' in e(tra revenues$ Suc! investments !elp businesses and 'overnment

finance t!eir operations% and fe mont!s from t!ose investments deport t!e operations of

insurance companies$ >it! t!ese investments earnin's% insurance companies can keep

rates muc! loer t!an ould ot!erise be possible$

.9. 8ri!ati:ation of Insurance

T!e Indian insurance !as finally opened up$ T!e first move toards liberali*ation came

it! t!e mp!ora Committee @eport in /;;. !ic! recommended t!e privati*ation of

insurance$ Indian stands to 'ain itty t!e folloin' major advanta'es

# +etter products it! more reasonable and affordable pricin'

# Fuick servicin'

# Increased savin' rate

# Lon'#term funds for infrastructure development ill be available to t!e country

# Lar'e inflo of forei'n capital

It is debated t!at t!e insurance business does not produce profit in t!e first five year$

Cross subsidi*ation is a feature of t!e Indian Market$ 4vent t!e fire portfolio !ic! is

considered profitable% cross subsidi*es t!e ot!er department$ Tariff reductions are likely

to reduce furt!er$ Insurer ill !ave to institute proper claims mana'ement process in

order to e(tract proficiencies$

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T!e 'ovt$ is soon to present t!e ne model for ta(in' life insurance companies at

internationally competitive rates$ Ne entrants ould be ell advised to look a!ead to

t!e sta'e !ere brand stren't! ill be a competitive advanta'e and sketc! t!eir alliances

accordin'ly$

.3. Oortunities in Insurance

In Indian market% t!e opportunity for insurance companies is !u'e$ T!e efforts of

'overnment companies !ave lacked sincerity% as t!ere is lar'e untapped market even after

85 years of nationali*ation$ ccordin' to sources% .2 cores people of India can afford

insurance !oever only 0 cores of t!em !ave taken any insurance$ Life insurance

premium collected in a year is only ,G of 'ross domestic product in India it! t!at of

/,G in )S$

Total non#life insurance premium is a mere 2$7G of :6P !ic! is almost ne'li'ible$ 9n

t!e basis of t!is it can be sold t!at t!ere is !u'e scope for insurance in India$ T!ere is still

muc! to ac!ieve and a bi' market to e(plore$

T!e latent demand foreseen in Indian market and t!e success of liberali*ed market in

emer'ent economies make t!is a 'reat opportunity$ To avail t!is may international players

includin' t!e orld leaders !ave set up t!eir business in India in last to years$

Prudential life insurance as first company to tie up it! an Indian company i$e$ is ICICI

and 'ets a license$ 4ac! company re-uires /22 crores of capital to start t!eir business%

!ic! is a bi' amount to ensure t!e solvency of company at all times$

.4.Tyes of Insurance

. %ife Insurance

Life insurance is a contract for payment of a sum of money to t!e person assured on t!e

!appenin' of t!e event insured a'ainst$ )sually t!e contract provides for t!e payment of

an amount on t!e date of maturity or at specified intervals or at unfortunate deat!$ T!e

contract also provides for t!e payment of premium periodically to t!e corporation by t!e

assured$

0. 7eneral Insurance

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:eneral Insurance includes many areas of insurance like marine% motor% en''$ Healt!% fire

etc$ t!e contract provides for t!e payment of an amount on t!e !appenin' of some

contin'ency$ T!ese types of contracts are annual in nature$

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(ESEA(C+ #ET+O)O%O7,

T!is deals it! t!e researc! met!odolo'y t!at !as been folloed$ @esearc! met!odolo'y

can be defined as t!e step by step procedure t!at is desi'ned and folloed for t!e purpose

of doin' a researc! ork$ 9t!er main purpose is to desi'n t!e ork in suc! a ay t!at all

t!e areas to be covered in t!e researc! ork fall in a correct manner and in t!e purvie of

t!e researc! ork and not!in' is left out t!e met!odolo'y is develop din suc! a ay t!at

t!e flo of t!e ork is continuous and desired results are obtained$

0.. SI7'I-ICA'CE ; (ATIO'A%E O- T+E (ESEA(C+

T!is project provided me an opportunity to kno t!e insurance sector and moreover !elp

me for enterin' into an imsurance sector$

T!e main rationale be!ind t!e study undertaken is to provide information about

customer?s preferences and brand loyalty$To provide t!e information as to !at are t!e

reasons t!at t!e customer looks upon durin' a purc!ase of an insurance policy and !at

is t!e ima'e of private insurance companies in t!eir mind t!rou'! interaction it! t!em$

)ATA CO%%ECTIO' #ET+O)

*ni!erse )efined&Here t!e universe of t!e study is all t!e salaried people of different

a'e 'roup in India$

Locale Here t!e locale of t!e study is all t!e people orkin' and livin' in 6el!i & NC@$

It is restricted to 6el!i only because of time & resource constraints$

Samle Si:e& T!e si*e of t!e sample as around 72 people considerin' t!e time

constraint$

)ata Collection& 6ata !as been collected t!rou'! bot! primary and secondary approac!$

8rimary )ata is t!e data !ic! is collected form direct interaction it! t!e tar'et

sources and !ic! is ra in !and and is used for t!e first time$arious sources are used

like

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Personal Intervie

Telep!one Intervie

Fuestionnaires

Secondary )ata is t!e data !ic! !as been collected from different sources earlier i$e$t!rou'! ma'a*ines% journals and internet and are used for t!e purpose of

projectDsurvey$Secondary data !as been collected t!rou'! various sources suc! as

Internet

Nespapers

@eports

%I#ITATIO'S

T!e customers are sometimes biased toards t!e product and moreover t!e

customer lacks t!e information about insurance$So t!e accurate conclusions may

not be dran on t!e basis of information collected$

Some of t!e customers due to time constraints and availability of documents it!

t!em because of data as filled in a !urry !ic! meant t!e data provided mi'!t

not be /22G true$

T!e number of respondents ere limited to 72 because of time constraints &

assi'nments$

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#AJO( 8%A,E(S O- %I-E I'S*(A'CE I' I')IA

/$ Life Insurance Corporation of India,$ ICICI prudential Life Insurance Co Ltd$

.$ H63C Standard Life Insurance Co Ltd$

8$ Ma( Ne ork Life Insurance Co Ltd$

5$ +irla Sun Life Insurance Co Ltd$

7$ 9m Jotak Ma!indra Life Insurance Co Ltd$

1$ @eliance Life Insurance Co Ltd$

0$ llian* +ajaj Life Insurance Co Ltd$

;$ In' yasa Life Insurance Co Ltd$

/2$ S+I Life Insurance Co Ltd$

//$ Metlife Insurance Co Ltd$

/,$ Sa!ara Life Insurance Co Ltd$

/.$ viva Life Insurance Co Ltd$

/8$ TT i' life Insurance Co Ltd$

/5$ +!arti K Life Insurance Co Ltd$

/7$ S!riram Life Insurance Co Ltd$

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CASE ST*), O' %IC

Comany 8rofile# It is t!e sin'le lar'est Life Insurance Player of India !avin' an life

fund corpus of @s$ /%07%2,8 crore Appro($B$ It is t!e only player in t!e public sector life

insurance se'ment$ If e add up t!e asset base of all ot!er private players !o !ave

recently ventured into India it! local alliance after t!e liberali*ation of t!e Insurance

sector in t!e /;;;% t!en also it comes no!ere near to LIC$ nd moreover in t!e near

future don t!e line /2 years % it can be predicted it! /22G certainty t!at no ot!er

company in t!e life insurance se'ment ould topple over LIC as per as asset base is

concerned$

No$ of 'ents# 7%5/%222 a'ents$

%ife Insurance in India

Life insurance in India made its debut ell over /22 years a'o$

In our country% !ic! is one of t!e most populated in t!e orld% t!e prominence of

insurance is not as idely understood% as it ou'!t to be$ >!at follos is an attempt to

ac-uaint readers it! some of t!e concepts of life insurance% it! special reference

to LIC$It s!ould% !oever% be clearly understood t!at t!e folloin' content is by no

means an e(!austive description of t!e terms and conditions of an LIC policy or its

benefits or privile'es$Life insurance is a contract t!at pled'es payment of an amount to t!e person assured Aor

!is nomineeB on t!e !appenin' of t!e event insured a'ainst$

T!e contract is valid for payment of t!e insured amount durin'

T!e date of maturity% or

Specified dates at periodic intervals% or

)nfortunate deat!% if it occurs earlier$

mon' ot!er t!in's% t!e contract also provides for t!e payment of premium periodicallyto t!e Corporation by t!e policy!older$ Life insurance is universally acknoled'ed to be

an institution% !ic! eliminates "risk"% substitutin' certainty for uncertainty and comes to

t!e timely aid of t!e family in t!e unfortunate event of deat! of t!e breadinner$+y and lar'e% life insurance is civilisation"s partial solution to t!e problems caused by

deat!$

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Life insurance% in s!ort% is concerned it! to !a*ards t!at stand across t!e life#pat! of

every person

/$ T!at of dyin' prematurely leavin' a dependent family to fend for itself$

,$ T!at of livin' till old a'e it!out visible means of support.

OBJECTIVES O- %IC

Spread Life Insurance idely and in particular to t!e rural areas and to t!e

socially and economically backard classes it! a vie to reac!in' all insurablepersons in t!e country and providin' t!em ade-uate financial cover a'ainst deat!

at a reasonable cost$

Ma(imi*e mobili*ation of people"s savin's by makin' insurance#linked savin's

ade-uately attractive$

+ear in mind% in t!e investment of funds% t!e primary obli'ation to its

policy!olders% !ose money it !olds in trust% it!out losin' si'!t of t!e interestof t!e community as a !oleE t!e funds to be deployed to t!e best advanta'e of

t!e investors as ell as t!e community as a !ole% keepin' in vie national

priorities and obli'ations of attractive return$

Conduct business it! utmost economy and it! t!e full reali*ation t!at t!e

moneys belon' to t!e policy!olders$

ct as trustees of t!e insured public in t!eir individual and collective capacities$

Meet t!e various life insurance needs of t!e community t!at ould arise in t!e

c!an'in' social and economic environment$

Involve all people orkin' in t!e Corporation to t!e best of t!eir capability in

furt!erin' t!e interests of t!e insured public by providin' efficient service it!

courtesy$

Promote amon'st all a'ents and employees of t!e Corporation a sense of

participation% pride and job satisfaction t!rou'! disc!ar'e of t!eir duties it!

dedication toards ac!ievement of Corporate 9bjective$

#ission of %IC


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Vision


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suitable insurance plan or a combination of different plans can be taken out to meet

specific needs t!at are likely to arise in future% suc! as c!ildren"s education% start#in#life or

marria'e provision or even periodical needs for cas! over a stretc! of time$ alternatively%

policy moneys can be so arran'ed to be made available at t!e time of one"s retirement

from service to be used for any specific purpose% suc! as for t!e purc!ase of a !ouse or

for ot!er investments$ subject to certain conditions% loans are 'ranted to policy!olders for

!ouse buildin' or for purc!ase of flats$

Insurance -or 5omen

Prior to nationalisation A/;57B% many private insurance companies ould offer insurance

to female lives it! some e(tra premium or on restrictive conditions$ Hoever% after

nationalisation of life insurance% t!e terms under !ic! life insurance is 'ranted to femalelives !ave been revieed from time#to#time$

t present% omen !o ork and earn an income are treated at par it! men$ In ot!er

cases% a restrictive clause is imposed% only if t!e a'e of t!e female is up to .2 years and ifs!e does not !ave an income attractin' Income Ta($

?eyman Insurance

Jeyman insurance is taken by a business firm on t!e life of key employeeAsB to protect

t!e firm a'ainst financial losses% !ic! may occur due to t!e premature demise of t!e

Jeyman$

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%I-E I'S*(A'CE 8(O)*CTS&

5hole life olicy&

T!ese are lo#cost insurance plans !ere t!e sum assured is payable on t!e deat! of t!e

insured typical !ole life policy runs as lon' as t!e policy!older is alive$ In ot!er ords% t!e

risk is covered for t!e entire life of t!e policy!older% !ic! is !y it is knon as !ole

life policies$

T!e policy money and t!e bonus are payable only to t!e nominee of t!e beneficiary upon

t!e deat! of t!e policy!older$ T!e policy!older is not entitled to any money durin' !is or

!er on lifetime% i$e$ t!ere is no survival benefit$

>!ole life policies are fairly ri'id and infle(ible and are suitable only in a fe% very

specific cases$

>!ole Life Policy can be a 'ood initial policy to buy since its cost is very lo$ T!at is an

important consideration !en one is just startin' a career$

Endowment olicy&

)nder t!ese plans% t!e sum assured is pay#able on t!e maturity of t!e policy or in case of

deat! of t!e insured individual before maturity of t!e policy$ 4ndoment policies cover

t!e risk for a specified period at t!e end of !ic! t!e sum assured is paid back to t!e

policy!older alon' it! t!e entire bonus accumulated durin' t!e term of t!e policy$ It is

t!is feature # t!e payment of t!e endoment to t!e policy!older upon t!e completion of

t!e policy?s term #% !ic! ri'!tly accounts for t!e popularity of endoment policies$ T!e

ori'inal sum assured and t!e accumulated bonus # received back comes !andy from t!e

endoment can eit!er be used for buyin' an annuity policy to 'enerate a mont!ly

pension for t!e !ole life% or put it in any ot!er suitable investment of !is c!oice$ s

compared to !ole life policies% t!e premium rates for endoment policies are !i'!er and

t!e bonus rates are loer$ 9n t!e plus side% t!ese polices offer an endoment #representin' a return on !is premium payments payable to !im in !is on lifetime !en

t!e policy comes to an end$

#oney bac" olicy&

)nlike ordinary endoment insurance plans !ere t!e survival benefits are payable only

at t!e end of t!e endoment period% money back policies provide for periodic payments

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of partial survival benefits durin' t!e term of t!e policy% of course so lon' as t!e policy

!older is alive$

n important feature of t!is type of policies is t!at in t!e event of deat! at any time

it!in t!e policy term% t!e deat! claim comprises full sum assured it!out deductin' any

of t!e survival benefit amounts% !ic! may !ave already been paid as money#back

components$ Similarly% t!e bonus is also calculated on t!e full sum assured

)nder money back policies premiums can be paid as per t!e insurance company?s policy$

T!ese could be -uarterly% !alf yearly or annually$ T!e premiums for t!ese policies are

payable for t!e selected term of years% or till deat! if it occurs earlier$

+y buyin' suc! policies one can receive income at re'ular intervals ot!er t!an t!e risk

cover it provides$ lso a 'ood amount of bonus on t!e full sum assured is -uite a 'ood

bar'ain

Term olicy&

)nder t!ese plans% t!e sum assured is payable only on t!e deat! of t!e insured individual

before e(piry of t!e policy$

Term policiesE cover only t!e risk durin' t!e selected term period$ If t!e policy!older

survives t!e term% t!e risk cover comes to an end$

Term plan is desi'ned to meet t!e needs of people !o are initially unable to pay t!e

lar'er premium re-uired for a !ole life or an endoment assurance policy% but t!ey!ope to be able to pay for suc! a policy in t!e near future$

No surrender% loan or paid#up values are 'ranted under t!ese policies because reserves are

not accumulated$ If t!e premium is not paid it! t!e days of 'race% t!e policy ill lapse

it!out ac-uirin' a paid#up value$

Hoever% a lapsed policy may be revived durin' t!e lifetime of t!e life assured but before

t!e e(piry of t!e period of to years from t!e due date of t!e first unpaid premium on t!e

usual terms$ ccident and D or 6isability benefits are not 'ranted on policies under t!e

Term plan$

Annuity @8ension 8lan&

T!ese plans provide for eit!er immediate or deferred pension for life$ T!e pension

payments are made till t!e deat! of t!e annuitant Aper#son !o !as a pension planB unless

t!e policy !as provision of 'uaranteed period$

,2


21/50

An annuity is an in!estment that one ma"e either in a single lum sum or through

installments aid o!er a certain number of years in return for which one recei!e

bac" a secific sum e!ery year e!ery halfyear or e!ery month either for life or for

a fi>ed number of years.

After the death of the annuitant or after the fi>ed annuity eriod e>ires for annuity

ayments the in!ested annuity fund is refunded erhas along with a small

addition calculated at that time. Annuities differ from all the other forms of life

insurance discussed so far in one fundamental way an annuity does not ro!ide

any life insurance co!er but instead offers a guaranteed income either for life or a

certain eriod. Tyically annuities are bought to generate income during oneDs

retired life which is why they are also called ension lans. Annuity remiums and

ayments are fi>ed with reference to the duration of human life.

Joint life olicy&

=oint life policies are similar to endoment policies in as muc! as t!ese policies also

offer maturity benefits to t!e policy!olders% apart form coverin' t!e risks as all life

insurance policies$

+ut t!ese are cate'ori*ed separately as t!ese cover to lives to'et!er t!us offerin' a

uni-ue advanta'e in some casesE notable% for a married couple or for partners in a

business firm)nder a joint life policy t!e sum assured is payable on t!e first deat! and a'ain on t!e

deat! of t!e survivor durin' t!e term of t!e policy$ ested bonuses ould also be paid

besides t!e sum assured after t!e deat! of t!e survivor$ If one or bot! t!e lives survive to

t!e maturity date% t!e sum assured as ell as t!e vested bonuses are payable on t!e

maturity date$

T!e premiums payable cease on t!e first deat! or on t!e e(piry of t!e selected term%

!ic!ever is earlier$

ccident benefits e-uivalent to t!e sum assured are available under t!is plan on t!e first

deat!$ Hoever% if bot! lives are covered under 6ouble ccident +enefit A6+B% t!e

survivin' life is covered under 6+ until t!e end of t!e policy year% in !ic! t!e first life

dies under t!e cover of t!e policy$

T!ese benefits are available it! respect to bot! lives if

,/


22/50

+ot! lives peris! simultaneously oin' to an accident$ To avoid suc! an eventuality%

nomination is alloed under t!e policy 9@

+ot! die it!in t!e specified period as a result of t!e same accident 9@

T!e second life also dies in t!e same policy year as result of anot!er accident$ To avoid

suc! an eventuality% nomination is alloed under t!e policy$

Particularly for couples # =oint life policies provide dual#purpose income and risk

protection for bot! belon'in' to every income 'roup and class of society$

)nder a joint life plan t!ou'! t!e premium payment stops after t!e first life"s deat!%

bonuses continue to accrue on t!e basic Sum ssured till Maturity 6ate or till t!e deat!

of t!e second life% if earlier$

7rou insurance&

:roup Insurance offers life insurance protection under 'roup policies to various 'roups

suc! as employer#employee% professionals% co#operatives% eaker sections of society etc$

It also provides insurance covera'e to people under certain approved occupations at t!e

loest possible premium cost$ +esides providin' insurance covera'e% it also offers 'roup

sc!emes to employers% !ic! provide fundin' of 'ratuity and pension liabilities of t!e

employer?s :roup insurance plans !ave lo premiums$ Suc! plans are particularly

beneficial to t!ose for !om ot!er re'ular policies are a costlier proposition$ :roup

insurance plans e(tend cover to lar'e se'ments of t!e population includin' t!ose !o

cannot afford individual insurance$ s suc! t!e premia one need to pay is comparatively

loer and at t!e same time one can avail of insurance benefits$

T!e main features of t!e sc!emes are lo premium and simple insurability conditions$

Premiums are based upon a'e combination of members% occupation and orkin'

conditions of t!e 'roup$

number of 'roup insurance sc!emes !ave been desi'ned for various 'roups$ T!ese

include employer#employee 'roups% associations of professionals Asuc! as doctors%

layers% c!artered accountants etc$B% and members of cooperative banks% elfare funds%

credit societies and eaker sections of society$ Creditor#6ebtor 'roups are also offered

'roup insurance sc!emes$

:roup insurance sc!emes providin' uniform cover can be 'ranted to outstandin' loans$

T!ese 'roups are Members of primary !ousin' societies !ere !ousin' loans are 'ranted

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23/50

by State pe( !ousin' societies% borroers 'ranted loans by Institutional a'encies in

PublicD=oint Sectors for !ousin' purposes and borroer members of cooperative

societiesDbanks formed by employees of t!e same employers

Secial lan&

Special plans are insurance policy plans available from t!e national insurance providers

to serve t!e needs of citi*ens t!at cannot be commonly classified or se're'ated$ T!ese

special plans are desi'ned to satisfy needs ran'in' from debt#clearance in event of t!e

deat! of t!e insured to financial aid in t!e event of a medical mis!ap$

Special plans also provide financial assistance for !andicapped dependants as ell as

emer'ency sur'ery re-uired if and !en a medical condition arises$ Since special plans

are desi'ned for people it! diverse and specific needs% t!e avera'e citi*en may not

necessarily need or use t!em$ et% in t!e normal course of life% situations may arise !en

one may need to provide for unplanned or une(pected contin'encies and mis!aps$

,.


24/50


25/50

E')O5#E'T 8O%ICIES

%IC ICICI 8rudential

4N69>M4NT >ITH P@93ITS

T!ese are t!e policies of limited duration

payable on maturity or deat! of t!e life

assured$

T!ese plans are available it! different

option like it! or it!out profit ordouble or special endoments

ICICI P@) S4 N P@9T4CT

n ICICI ideal plan for t!ose !o ant

to accumulate funds on a re'ular basis

it! life cover

It is a fi(ed term policy t!at combines

savin' it! life cover$ T!e premia is paidre'ularly durin' t!e term

9n deat! up to a'e # basic premium

returned it!out interest

9n deat! after a'e 1 # sum assured

.$5G compounded interest for first 8

yrs and t!en vested bonus$

>e can make out comparin' t!e plans of bot! t!e companies t!at !ile ICICI are more

concerned about savin' and are cate'orised for t!e different section of people$ LIC is

strai'!t and simple plan$

,5


26/50

#O'E, BAC?S 8O%ICIES

%IC ICICI 8(*)E'TIA%

=44N MIT@

!i'! risk lo cost plan and it! profit

plan

T!is plan provide for an additional

insurance cover% e-ual to t!e sun assured

in t!e event of policy !older deat! durin'

t!e term of policy$=44N S)@+HI

Premium payable for limited periods

available it! periods of /,%/5 and /0 yrs

Money back at interval of 8 and 5 yrs as

per policy term

=44N SNCH

Plan !avin' a provision of 'uarantee

addition at 12p$a$ per t!ousand and

loyalty addition payable on date of

maturity$

ICICI P@) CSH +J

n ideal plan for every milestone of life$

It combines life coverli-uiditysavin's$

It provides survival benefit after every .

or 8 yrs and add#on benefit for a nominal

e(tra premium$

T!e LIC under money back policies provide various plans eac! !avin' different kinds offeatures$ 9n t!e ot!er !and ICICI Pru% !ic! combines all t!e features in just one sin'le

plan$ T!e LIC plans like jeevan surb!i are suitable for !i'! income and ta( cate'ories$

TE(# I'S*(A'CE 8%A'S

,7


27/50


+IM JI@N

plan it! t!e provision for return of

premium paid on survivin' of t!e term

3ree term cover after maturity provided

t!e policy is in full force

Havin' an added attraction of loyalty

addition

=44N :@IH3or people desirous of obtainin' a

!ousin' loan it! policy actin' as

collateral security

It ensure repayment of loan in t!e event

of premature deat! of t!e borroer

!i'! risk lo cost plan

vailable as double and triple cover plans

ICICI P@) LI34 :)@6

n ideal lo cost policy t!at covers your

life it! uncertainties

It comes it! a c!oice of to convenient

premium payment modes#one time and

re'ular

It 'ives t!e fle(ibility of accident and

disability cover for a e(tra premium

Minimum premium payable ,822 per

annum$ It !as no maturity benefits

Comparison beteen t!e plans of bot! t!e companies? s!os t!at !ile ICICI Pru

provide more fle(ible and stable return plans t!e LIC are safer plan takin' care of familyas a !ole$ 'ain LIC provides different plan under t!is cate'ory of life insurance$

C+I%)(E' 8O%ICES

,1


28/50


=44N +L

Plan provides for a mont!ly income up to

a'e of ,/ in case of unfortunate deat! of

parents

Premium aiver benefit is available

+L I6

T!e plan takes care of family e(penses#

on sc!ool colle'e% !ealt! or just startin' a

career

Money in re'ular mont!ly instalment and

in lump sum at specific point of time$

SM@T JI6

Plan desi'ned for critical educational

milestone include specialised course in

t!e country and abroad

T!e sum assured is paid immediately

from /22%222 to .22%222

ll future payments are aived off

Most importantly t!e C!ild?s ill

continue to receive t!e policy benefits$

>e can make out t!at LIC provide different plans for c!ildren as compared to ICICI Pru%

!ic! 'ives only one plan for kids$ +ot! aims at providin' t!e parents aid for !i'!er

studies of t!eir c!ildren$ >!ile LIC policies are desi'ned to meet t!e different need of

family bud'et ICICI Pru are more customer tailored$

,0


29/50

CO'C%*SIO'

T!e comparative analysis beteen t!e plans of bot! t!e companies s!os t!at bot! differ

in t!eir projection and outlook !ile t!ey aim at same tar'ets and provides similar kind

of returns$

T!e LIC business is more about providin' social security and financial safety net for t!e

dependants$ It ensures t!e life of t!e people providin' life insurance product and services

of !i'! -uality and providin' resources for economic development$ T!e lo'o of t!e

company also s!os ima'e of corporation t!at cares$ T!e advanta'e of LIC over its peers

is t!at t!e sum assured comes it soverei'n 'uarantee

9n t!e ot!er !and ICICI Pru !as little different approac! toards its business$ T!ey are

more customers centric% provide -uality circle% !avin' superior risk mana'ement$ T!ey

'o for investment strate'y to offer consistent% stable returns to policy!older$ T!e ICICI

Pru !ad an entire ran'e of insurance product$ T!eir a''ressive strate'y ill certainly pay

off one step a!ead of competitors$

,;


30/50

7(A8+ A'A%,SIS

I'S*(A'CE AVAI%E)

T!is 'rap! s!os t!e number of people !o are aare and t!us availed t!e different kind

of insurance product$ T!e percenta'e of people !o avail insurance plan is full/22 G $

A'A%,SIS& #s per today?s market situation almost all t!e people are aare of

insurance and !ave opted for some or t!e ot!er type of insurance policy

.2


31/50

-ACTO(S I#8O(TA'T 5+I%E O8TI'7 A 8O%IC,

T!e folloin' 'rap! is about factors t!at people look !ile optin' for any insurance plan$

T!e returns !ave t!e !i'!est option of ;2G and premium ba's t!e second by 05G$

0

10

20

30

40

50

60

70

80

no.ofpeople

Risk Cover Tax

Benefits

Returns

&savins

!i"ui#it$

NLSIS

/B @isk Cover as Savin's t!rou'! insurance 'uarantee financial protection a'ainst risk of

deat! of policy!older by payment of sum assured and bonus if any$,B Ta( benefits as ta( rebate can be availed )DS 00 in majority of Plans and )DS

02CCCA/B for investment up to @s/2% 222 in pension plans$

.B @eturn &Savin's < lon' term savin's in a painless manner for future needs because of

easy instalment facilities Amont!ly% -uarterly% !alf yearly% yearlyB and attractive returns$

8B Li-uidity < investment in money back policies 'uarantee periodical payments after

every .%8or5 years% loans can be raised on policies and security for commercial or

!ousin' loans$

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32/50

Insurance Comany awareness

T!e bar dia'ram s!os t!e aareness of people amon' various companies prevailin' in

t!e market$ T!e LIC is !i'!est it! ;5G and ICICI Pru it! 75G$

0

10

20

30

40

50

60

70

80

%0

100

no.o

fpeople

!&C '( )otak

*a+in#ra

,llian-

.a/a/

alysis

T!e concept of insurance means LIC is c!an'in' it! time$ lt!ou'! most

People kno about LIC but t!eir aareness about ot!er insurance companies is also

'ood$

.,


33/50

A CO#8A(ATIVE ST*), O- %IC ; ICICI 8(*)E'TIA%

8E(CE'TA7E O- 8EO8%E O8TI'7 -O( %IC A') ICICI 8(*

NLSIS

0.G of respondents !ave availed LIC policies only

/5G of respondents !ave availed ICICI Pru only

.G of respondents !ave availed bot! LIC and ICICI Pru s!oin' preference for products

of bot! companies

..


34/50

I'S*(A'CE CO#8A', A5A(E'ESS

0

20

40

60

80

100

0of1eople

!&C &C&C&

NLSIS

;;G of respondents are aare of LIC as compared to 1/G in case of ICICI$ T!us

everyone kno about LIC and also people?s aareness about private insurance

companies% ICICI is 'ainin' momentum$

.8


35/50

B(A') %O,A%T,

9n askin' LIC and ICICI customers t!at ill t!ey try ne insurer ne(t time t!e results

are#

0

10

20

30

40

50

60

70

80

%0

B

ran#!o$alt$

!&C &C&C&

-O( %IC

,G of LIC Customers ill 'o for anot!er insurance$ 1G may try better products of ot!er

private insurance companies$ +ut ;/G of LIC customers ill not 'o for anot!er insurers$

-O( ICICI 8(*

88G of ICICI customers ill surely 'o for better products of ot!er insurers specially LIC$

80G may try anot!er insurers$ 0G ill strict to LIC$

T!us brand loyality for LIC is muc! !i'!er t!an ICICI pru

.5


36/50

-I')I'7S A') A'A%,SIS

/$ Have you ever opted for Insurance from any CompanyO

AaB es # 7/G

AbB No # .;G

.7


37/50

,$ If es% >!ic! Company !ave you taken Insurance fromO

LIC 8,G

TT I: life Insurance 1G

H63C Standard Life Insurance /,GICICI Pur /;G

Ma( Ne ork Life Insurance 0G

+irla san life Insurance /2G

Met life insurance ,G

.1


38/50

.$ >!at made you select a particular Company for t!e InsuranceO

AaB 4MI # 10G

AbB +rand name # .G

AcB Procedures # ;G

AdB 3acilities # /G

AeB Policies # 1G

AfB dvertisement # ,G

8$ >!ic! Company ould you prefer if you !ave never applied for InsuranceO

LIC 57G

.0


39/50

+irla san life Insurance 1G

H63C Standard Life Insurance /,G

ICICI Pur /1G

Ma( Ne ork Life Insurance 0G

TT I: life Insurance 5G

Met Life Insurance .G

Suggestions or Comment about Insurances

AaB dvertisement s!ould be more on t!e advanta'es and fact rat!er t!e features$

AbB T!ere is a Ta( savin' factors !ile optin' for Insurance$

AcB Procedure s!ould be made easier for t!e normal public as it consumes a lot of time

and effort for providin' all t!e documents$

AdB Insurance is a need and not Lu(ury

.;


40/50

-I')I'7S ; S*77ESTIO'S

T!is c!apter deals it! t!e concluded aspects of t!e study carried out on :eneral

perception about Life InsuranceQ$ T!e basic objective is for t!e study is for !ic! study

as carried out !as been fulfilled in t!e earlier c!apter% based on t!e objective interviesc!edule as desi'ned$ 6ata collected based on sc!edule as analy*ed and some

findin's !ave emer'ed$

#a$or -indings of the Study

+ased on t!e -uantitative analysis t!e major findin's of t!e study !ave been !i'!li'!ted

beloR$

Most of t!e people are satisfied it! t!e e(tent of t!eir life insurance cover$ T!ey are

not interested in buyin' more life insurance$

People do not consider life insurance as a 'ood savin's because of lo returns$

s life insurance is a lon' term contract$ Ma(imum people do not !ave fait! on

private life insurance companies% t!ey still prefer LIC$

+ecause of less advertisin' not many people are aare about private life insurance

companies$

Most of t!e people do not kno about broker% corporate a'ents and banc assurance%

t!ey rely on t!eir a'ents only

T!e most preferred type of plan is money back$ T!e reason bein' availability of funds

after every five years !ic! can be used for payin' furt!er premium% t!us savin' t!e

re'ular income$

Some people !ave no idea about !at type of cover t!ey !ave$

Most of t!e people feel t!at life insurance is essential but t!ey t!ink returns are lo$

Some people !ave t!eir doubts on t!e credibility and lon' stay of private insurance

companies$

Suggestions

dvertisin' of t!e insurance product s!ould stress on t!e need of security$

Insurance s!ould be populari*ed as t!e means of securin' future rat!er t!an savin'

ta($

Ne entrants s!ould come out it! innovative riders$

82


41/50

Policies s!ould be issued -uickly and it! less formalities

9t!er service s!ould also be improved$

NespaperDMa'a*ines and television are t!e most effective medium of advertisin'

life insurance$ Insurance a'ents s!ould be ell trained$

8/


42/50

CO'SO%I)ATE) -I')I'7 A') A'A%,SIS

t t!e end of t!e project e !ave came out it! some of t!e conclusions !ic!

e ould like to s!are in our report are as follos %

-

Life insurance corporation is t!e bi''est and t!e stron'est company in t!einsurance sector$

- Life insurance corporation is t!e most reliable company in front of consumers$

- 4nterance of private companies !ave laid to t!e foundation of an !ealt!y

competition in t!e market$

- Private companies are tryin' to attract t!e customers by 'ivin' policies !ic!

are compratively less ri'id as compared to t!at of LIC$

- Life Insurance Corporation !as stron' !old in bot! t!e @ural and t!e urban

areas$

To include in t!e s!ortest possible manner e ould state t!at%

Life Insurance Corporation !as been t!e trust of Indians from t!e years % but

atlast t!e one !o provides t!e best is t!e innerQ$

- T!e Life Insurance Corporation s!ould provide its customers it! more ne

sc!emes$

-T!e Life Insurance Corporation s!ould try to provide better services to its

customers$

- T!e Life Insurance Corporation !as to be more fle(ible % dynamic and

innovative in its approac!$

- T!e Icici pur s!ould try to reduce t!e c!ar'es of its policies so t!at it can

suited to t!e pockets of t!e middle income level 'roup$

- T!e Icici pur s!ould try to penetrate more into t!e rural areas$

fter t!e collection of data from various primary sources t!ere are certain findin's !ic!

ere made$ 9n t!e basis on t!ese findin's t!e final analysis as made$ T!e findin's of

t!e project are as under

/B T!e salary of all t!e 52 respondents as divided into a slot of 52%222#,%22%222%

,%22%222#.%52%222 and .%52%222#5%22%222$ s per t!e findin' t!e most preferred plan

8,


43/50

beteen t!e salary ran'e of 52%222#,%22%222 as Money +ack Plan$ 9ut of t!e total ,2

people in t!is ran'e% /8 said t!at t!is plan as t!e best$ In t!e salary ran'e of ,%22%222#

.%52%222$ 4ndondement plan as considered to be t!e best$ 9ut of /0 people in t!is

ran'e 1 ent for t!is plan$ 3inally in t!e salary ran'e of .%52%222#5%22%222 a'ain money

back plan as considered to be t!e best 5 out of /, persons in t!is 'roup ere in t!e

favour$

,B T!e preference as per a'e 'roup as calculated by dividin' t!e a'e into t!e 'roups of

,2#.2%.2#82%82#52 and 52#72$ In t!e a'e 'roup ,2#.2 people preferred money back plan$

In a'e 'roup .2#82 !ole life plan as preferred most$ In t!e a'e 'roup 82#52 Money

+ack Plan as a'ain considered as best and in t!is a'e 'roup 52#72 pension plan as

said to be t!e best$

.B s per a''re'ate preference of plans are concerned /; respondent said t!at t!ey

preferred money back plan% /, said t!at t!ey like endondement plan% /2 ere in favour

of !ole life plan and ; said t!ey considered pension plan as best$

8B s per t!e findin's of recall c!art is concerned /7 respondent said t!at t!ey can recall

t!e name of ICICI% /5 said t!at t!ey can recall t!e name of +irla% // said t!at t!ey can

recall t!e name of Tata and 0 said t!at t!ey can recall t!e name of Jotak ma!indra$

5B s far as reason for purc!ase is concerned% /5 respondents said t!at t!ey purc!ase t!e

life policy for investment% /. said for ta( savin'% /, said for protection and /2 said for

savin'$

7B In t!e final -uestion !ic! as about aareness level of IN: S% t!e response

received as not satisfactory% out of 52 respondent% ./ said t!at t!ey don?t kno about

t!e company and only /; ere aare about t!e company$

8.


44/50

(ECO##E')ATIO'; CO'C%*SIO'

T!ere are certain flas e(istin' in t!is orkin' of t!e insurance industry$ T!ere are some

of t!e recommendation e ad come up it! !ile doin' t!is project$ It ill !elp to make

insurance more important sector in today?s economy$

/B T!e need of t!e !our is to devise a compre!ensive strate'y t!at ill !elp t!e firms

face t!e c!allen'es of t!e future$ T!e financial services industry around t!e orld over is

under'oin' a major transformation$ It is very important t!at trained marketin'

professionals !o are able to communicate specific features of t!e policy s!ould sell t!e

policy$

,B 3rom our researc! e could find out t!at people are not aare about t!e policies

and features of insurance$ T!erefore LIC and ICICI are recommended to s!ed li'!t on

policies and e(plain t!e benefits% t!us increasin' t!e aareness$

.B T!e penetration of insurance in India is around ,,G$ T!is indicates t!at a vast

majority of rural population is not covered$ T!e market player needs to e(plore t!is

untapped potential t!rou'! t!eir marketin' and sales netork$

8B T!e returns of t!e policies are not properly mana'ed and never 'iven in time$ So%

t!ese must be looked at$

5B Pricin' of insurance products% as empirically available in India% s!os t!at pricin'

is not in consonance it! market realities$ Life Insurance premium is 'enerally

perceived% as bein' too !i'! !ile 'eneral insurance Aespecially motor insuranceB is

priced too lo$

7B Some insurance products% !ic! are not available in India% s!ould% be introduced

in market$ T!ere are areas for ne product development Industry all risk policies%

Lar'e projects risk cover% @isk beyond a floor level% 4(tended public and product liability

cover

1B Insurance companies ill also !ad to 'et savvy in distribution$ 4n!anced

marketin' t!us ill be crucial$ lready many companies !ave full operation capabilities

88


45/50

over a /,#!our period$ 3acilities suc! as customer service center are already into ,8#!our

mode$ T!ese ill provide services suc! as motor ve!icle recovery$ Tec!nolo'y ill also

play an important role on t!e market$

T!e lines of distinction beteen banks insurance companies and brokera'es are 'ettin'

blurred$ T!e future seems to belon' to financial supermarkets t!at ill offer a !ost of

services and products to t!e consumer$ In t!e ne(t millennium all t!ese activities ould

play a crucial role in t!e overall development and maturity of t!e insurance industry

85


46/50

CO'C%*SIO'

T!e various conclusions e !ad dran from our project are #

T!ere !as been tremendous c!an'e in t!e insurance !istory$ nd it! it t!ere !as been

continuous 'rot! in t!is sector bot! in Indian as ell as orld conte(t$T!e openin' up of t!e insurance sector !as c!an'ed t!e !ole look of t!e industry$ >!ile

t!e LIC in order to face t!e competition is comin' it! ne strate'ies$ Ne players like

ICICI Pru are leadin' t!e sector due to t!eir strate'ic mana'ement and tailored made

projects$3rom our researc! also e conclude t!at t!ou'! t!e aareness and people optin'

for LIC plans are more as compare to ICICI Pru but t!e later are 'ainin' momentum in

t!e market day by day$ T!e primary reasons for buyin' an insurance policy% !et!er life

or non#life is to rotect us from !agaries of life. 5edo not invest in insurance for

returnsE rat!er e invest in it for re'rettable necessities$ T!ou'! a lar'e proportion of

policies available in t!e country provide for returns% but nobody is lookin' for returns to

t!e inflation rate$ So !at does insurance offer% per!aps peace of mind% but even t!at

takes time% due to poor claim performance

T!e demand for insurance is likely to increase it! risin' per#capita incomes% risin'

literacy rates and increase of t!e service sector% as !as been seen from t!e e(ample of

several ot!er developin' countries$ In fact% openin' up of t!e insurance sector is an

inte'ral part of t!e liberali*ation process bein' pursued by many developin' countries

Insurance is a @s$822 billion business in India and yet its spread in t!e country is

relatively t!in$ Insurance as a concept !as not been able to make !eaday in India$ T!ere

!as been a stron' fall in insurance business in recent years$ 3urt!ermore% it can be

observed t!at non#life business is not increasin' as stron'ly as life business$ 9n t!e ot!er

!and% 'rot! fluctuations !ave been relatively small it! 'rot! rates varyin' beteen

/G and 5G$ Life insurance business by contrast ac!ieved avera'e 'rot! rates of 7G%

alt!ou'! t!e actual rates ran'ed from 2G to /.G$ T!is s!os on t!e one !and t!e

increasin' si'nificance of life insurance as an instrument for old a'e provisions and on

t!e ot!er !and indicates t!e sensitivity of life insurance to c!an'es in t!e institutional and

economic environment$

So lets conduct t!is business it! utmost economy it! t!e spirit of trustees!ipE t!ereby

makin' insurance idely popular$

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BIB%IO7(A8+,

Boo"s

Marketin' Mana'ement # by P!illip Jotler

Principles of Marketin' < by P!illip Jotler & :ary mstron'

Market @esearc!#by San'eeta 'aral

Ma'a*ines

Business India

Business world

I')IA TO)A,

I')IA' #A'A7E#E'T

>4+SIT4S

$licindia$com

$irdaindia$or'

$irda$'ov$in

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*ESTIO''AI(E

/$ Name

,$ 9ccupation

.$ 6o you kno about InsuranceO

es

No

8$ Have you ever opted for Insurance from any companyO

es

No

5$ If es%

>!ic! company !ave you taken Insurance fromO

LIC

S+I Insurance

H63C Standard Life Insurance

ICICI Pur

Ma( Ne ork Life Insurance

+irla san life Insurance

TT I: life Insurance

7$ Ho did you come to kno about InsuranceO

dvertisement

>ord of Mout!

@eferred by your company D 3riend

1$ >!at made you select a particular company for t!e InsuranceO

4MI

+rand name

Procedures3acilities

Policies

dvertisement

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0$ Ho do you like t!e Marketin' strate'y by different Insurance CompanyO

:ood

vera'e

+ad

;$ >!at motivates you for selectin' any Company for InsuranceO

4MI

+rand name

Procedures

3acilities

Policies

/2$ dvanta'es or Comment about Insurances

//$ >!ic! Company ould you prefer if you !ave never applied for InsuranceO

LIC

S+I Insurance

H63C Standard Life Insurance

ICICI Pur

Ma( Ne ork Life Insurance

+irla san life Insurance

TT I: life Insurance

Members On The Board Of The Corporation

Shri D.K. Mehrotra,(Current-in-Charge & CHAIRMAN, LIC )

Shri T. S. Vijayan,(Managing Director, LIC )

Shri Thomas Mathew T.(Managing Director, LIC )

Shri A.K. Dasgpta,(Managing Director, LIC )

Shri !. "opa#an,(Secretary, Department o !conomic Aair",

Mini"try o #inance, $o%t. o Inia.)

8;


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Shri D.K. Mitta#, (Secretary, Department o #inancia' Ser%ice",

Mini"try o #inance, $o%t. o Inia.)

Shri M.V. Tan$sa#e,(Chairman & Managing Director, Centra' an o

Inia )

%t. "enera# Ar&ind Mahajan '!etd.(

Shri Anp )ra$ash "arg

Shri Sanjay *ain

Shri Asho$ Singh

Shri K.S. Sampath

Shri Amardeep Singh Cheem

POTENTIAL OF LIFE INSURANCE INDUSTRY IN INDIA

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