Ajay Final Project

8/14/2019 Ajay Final Project

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ASUMMER TRAINING REPORT

ONA STUDY ON CUSTOMERS ATTITUDE

TOWARDSLIFE INSURANCE PRODUCTS

ATBHARTI AXA LIFE INSURANCE

SUBMITTED IN THE PARTIAL FULFILMENT FOR THEREQUIREMENT OF THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)TO

MAHARSHI DAYANAND UNIVERSITYROHTAK

SUBMITTED BY:-AJAY

MBA (3RD SEM.)ROLL NO.: 2801

AMITY BUSINESS SCHOOL, MANESAR


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(2008-10)DECLARATION

I, Ajay, Roll No. 2801 ofM.B.A (3rd Semester) of the Amity Business School, Manesar, here by

declare that Summer Training Report entitled, A study on customers attitude towards Life

Insurance Products is an original work and the same has not been submitted to any other

institute for the award of any other degree.

A seminar presentation of the Training Report was made on 10-08-2009 and the suggestions by

the faculty were duly incorporated.

Presentation Incharge Signature of the Candidate

(Faculty)

Countersigned

Director of the Institute

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TABLE OF CONTENTS

Certificate

Declaration

Acknowledgement

Chapter ISignificance of the study 1Conceptualization 2Objectives of the study 4

Limitations of the study 5

Chapter II Industry Profile 7Company Profile 18

Chapter III Review of Existing Literature 32

Research Methodology 35

Chapter IV Analysis and Interpretation 38

Chapter VFindings 47Recommendations 48Conclusions 49

Bibliography 50

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CONCEPTUALIZATION

Awareness is defined as

A persons knowledge and individuals skills of any person how a person is aware about a

particular products & innovations given by the company to the consumer..

Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling

conditions or desires, or the state of the mind anything that makes a customer feel pleased or

contented.

Consumer Behavior:

Consumer behaviour is defined as the behaviour that consumers display in searching for,

purchasing, using, evaluating and disposing of products and services that they expect will satisfy

their needs.The study of the processes involved when individuals or groups select, purchase, use, or dispose

of products, services ideas, or experiences to satisfy needs and desires

Insurance policies cover the risk of life as well as other assets and valuables, such as home,automobiles, jewellery, etc. On the basis of the risk they cover, insurance policies can be

classified into two categories: Life insurance and general insurance.

As the term suggests, life insurance covers the risk involved in a person's life, while general

insurance provides financial protection against unforeseen events, like accident, flood,

earthquake, disease, fire and burglary. General insurance also covers injury due to accident or

hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of

the law can also be insured and is compulsory in some cases like motor third party insurance.

Besides, term life insuranceor term assurance is life insurance which provides coverage for a

limited period of time, the relevant term. In fact, term life insurance is the original form of life

insurance and is considered to be the pure insurance protection because it builds no cash value.

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Should the insured person pass away, the family is protected by a certain amount.

There are three key factors to be considered in term insurance: face amount (protection or death

benefit); premium to be paid (cost to the insured); and length of coverage (term).

A common type of term is called annual renewable term. It is a one year policy but the insurance

company guarantees it will issue a policy of equal or lesser amount without regard to the

insurability of the insured and with a premium set for the insured's age at that time.

A policy holder insures his life for a specified term. If he dies before that specified term is up, his

estate or named beneficiary receives a payout. If he does not die before the term is up, he

receives nothing. In the past these policies would almost always exclude suicide.

Insurance is an attractive option forinvestmentbut most people are not aware of its advantages

as an investment option. Remember that first and foremost, insurance is about risk cover and

protection. Insurance also serves as an excellent tax saving mechanism.

The government of India has offered tax incentives to life insurance products in order to

facilitate the flow of funds into productive assets. Insurance Regulatory & DevelopmentAuthority is regulatory and development authority under government of India in order to protect

the interests of the policy holders and to regulate, promote and ensure orderly growth of the

insurance industry

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OBJECTIVES OF THE STUDY

1. To understand the insurance business and products of Bharti Axa life insurance Co. ltd.

2. To know about the customers perception and preferences about life insurance.

3. To examine the satisfaction level of the customers.

4. To analyses the customers awareness about life insurance companies.

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LIMITATIONS OF THE STUDY

The study was limited to a period of June-July 2009.

Some respondents were not willing to give any answer to the questions.

Time was the biggest limitation. The project requires a thorough study which requires a

considerable amount of time.

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CHAPTER -II

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INDUSTRY PROFILE

History of insurance sector in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu

(Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in

terms of pooling of resources that could be re-distributed in times of calamities such as fire,

floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. AncientIndian history has preserved the earliest traces of insurance in the form of marine trade loans and

carriers contracts. Insurance in India has evolved over time heavily drawing from other

countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the Oriental

Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the

Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870

saw the enactment of the British Insurance Act and in the last three decades of the nineteenth

century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in

the Bombay Residency. This era, however, was dominated by foreign insurance offices which

did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and

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This millennium has seen insurance come a full circle in a journey extending to nearly 200

years. The process of re-opening of the sectorhad begun in the early 1990s and the last decade

and more has seen it been opened up substantially. In 1993, the Government set up a committee

under the chairmanship of RN Malhotra. The objective was to complement the reforms initiated

in the financial sector. The committee submitted its report in 1994 where in, among other things,

it recommended that the private sector be permitted to enter the insurance industry. They stated

that foreign companies be allowed to enter by floating Indian companies, preferably a joint

venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the Insurance

Regulatory and Development Authority (IRDA) was constituted as an autonomous body to

regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in

April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance

customer satisfaction through increased consumer choice and lower premiums, while ensuring

the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for

registrations. Foreign companies were allowed ownership of up to 26%. The Authority has thepower to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000

onwards framed various regulations ranging from registration of companies for carrying on

insurance business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India were

restructured as independent companies and at the same time GIC was converted into a national

re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.

Today there are 23 general insurance companies including the ECGC and Agriculture

Insurance Corporation of India and 23 life insurance companies operating in the country.

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The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together

with banking services, insurance services add about 7% to the countrys GDP. A well-developed

and evolved insurance sector is a boon for economic development as it provides long- term funds

for infrastructure development at the same time strengthening the risk taking ability of the

country.

The business of life insurance in India in its existing form started in India in the year 1818 with

the establishment of the Oriental Life Insurance Company in Calcutta.

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

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs.5 crore from the Government of India.

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Some of the important milestones in the general insurance business in India

are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general

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

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Insurance Regulatory and Development Authority (IRDA)

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. Mission of IRDA as stated in the act is "to protect the interests of the

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

matters connected therewith or incidental thereto."

Role of IRDA

Section 14 of IRDA Act, 1999 lays down 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 the insurance

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, -

(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel

such registration;

(b) 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;

(c) specifying requisite qualifications, code of conduct and practical training for intermediary or

insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors;

(e) promoting efficiency in the conduct of insurance business;

(f) promoting and regulating professional organisations connected with the insurance and re-

insurance business;

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

(h) calling for information from, undertaking inspection of, conducting enquiries and

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investigations including audit of the insurers, intermediaries, insurance intermediaries and other

organisations connected with the insurance business;

(i) 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);

(j) 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;

(k) regulating investment of funds by insurance companies;

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n)

supervising the functioning of the Tariff Advisory Committee;

(o) specifying the percentage of premium income of the insurer to finance schemes for

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

(p) specifying the percentage of life insurance business and general insurance business to be

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

(q) exercising such other powers as may be prescribed

Expectations

The law of India has following expectations from IRDA

1. To protect the interest of and secure fair treatment to policyholders;

2. To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments), for the benefit of the common man, and to provide long term funds

for accelerating growth of the economy;

3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair

dealing and competence of those it regulates;

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4. To ensure that insurance customers receive precise, clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard;

5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other

malpractices and put in place effective grievance redressed machinery;

6. To promote fairness, transparency and orderly conduct in financial markets dealing with

insurance and build a reliable management information system to enforce high standards of

financial soundness amongst market players;

7. To take action where such standards are inadequate or ineffectively enforced;

Duties, powers and functions of IRDA

Section 14 of IRDA Act, 1999 lays down 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 the insurance

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,

(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel

such registration;

(b) 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;

(c) specifying requisite qualifications, code of conduct and practical training for intermediary or

insurance intermediaries and agents;

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Market share of the company

Bharti AXA have 1% market share in the insurance industry. And ICICI got 21.6% market share

in the private insurance sector.

COMPETITORS

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ICICI Prudential Life Insurance Company:-

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank - one of India's foremost financial services companies-and Prudential plc - a leading

international financial services group headquartered in the United Kingdom.

LIC :-

Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the

amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident.

The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in

the same year. The LIC was created with the goal of reaching all the insurable people in the

country and providing them financial coverage at a reasonable price. In the year 1956, LIC had 5

zonal offices, 33 divisional offices and 212 branch offices. With time there was a need for a

branch office at every district headquarter and many branches were opened, which raised the

pace of the organization.Life Insurance in its modern form came to India from England in the

year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil.

HDFC Standard Life Insurance Company Ltd:-

HDFC Standard Life Insurance Company Ltd. is one of India's leading private

insurance companies, which offers a range of individual and group insurance solutions. It is a

joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's

leading housing finance institution and a Group Company of the Standard Life, UK.

HDFC as on December 31, 2008 holds 72.38 per cent of equity in the joint venture.

Standard Chartered:-

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Standard Chartered offers you a wide range of Life Insurance Products from

Bajaj Allianz Life Insurance Company, one of India's leading Insurance companies. At Standard

Chartered, you can avail of the services of trained & certified professional consultants from Bajaj

Allianz Insurance company, who can guide you in ascertaining your insurance needs, and assist

you in making an insurance plan that is just right for you.

Contact Address

Bharti AXA Life Insurance Co. Ltd.

Unit 601 & 602, 6th Floor

Raheja Titanium, Off Western Express Highway

Goregaon (East), Mumbai - 400063

Website:www.bharti-axalife.com

COMPANY PROFILE

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Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading business

groups with interests in telecom, agri business and retail, and AXA, world leader in financial

protection and wealth management. The joint venture company has a 74% stake from Bharti and

26% stake of AXA.

The company launched national operations in December 2006. Today, we have over 8000

employees across over 12 states in the country and a national footprint of distributors trained to

provide quality financial advice and insurance solutions to the large Indian customer base.

As we further expand our presence across the country with a large network of distributors, wecontinue to provide innovative product and service offerings to cater to specific insurance and

wealth management needs of customers. Whatever your plans in life, you can be confident that

Bharti AXA Life will offer the right financial solutions to help you achieve them.

Bharti enterprises

Bharti Enterprises is one of Indias leading business groups with interests in telecom, agri

business, insurance and retail. Bharti has been a pioneering force in the telecom sector withmany firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of

Indias leading private sector providers of telecommunications services with an aggregate of 60

million customers, spanning mobile, fixed line, broadband and enterprise services. Bharti Airtel

was ranked amongst the best performing companies in the world in the BusinessWeek IT 100 list

2007. Bharti Teletech is the countrys largest manufacturer and exporter of telephone terminals.

Bharti has a joint venture with ELRo Holdings India Ltd. Field Fresh Foods Pvt. Ltd - for

global distribution of fresh fruits and vegetables. Bharti also has a joint venture - Bharti AXA

Life Insurance Company Ltd. - with AXA, world leader in financial protection and wealth

management. Bharti has recently forayed into the retail business under a company called Bharti

Retail Pvt. Ltd. It also has a joint venture Bharti Wal-Mart Private Limited with Wal-Mart,

for wholesale cash-and-carry and back-end supply chain management operations.

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Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group has

a diverse business portfolio and has created global brands in the telecommunication sector.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-

Mart for the cash & carry business. It has successfully launched an international venture with EL

Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and

has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world

leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the first private

telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its

inception has been at the forefront of technology and has steered the course of the telecom sector

in the country with its world class products and services. The businesses at Bharti Airtel have

been structured into three individual strategic business units (SBUs) - Mobile Services, Airtel

Tele media Services & Enterprise Services. The mobile business provides mobile & fixed

wireless services using GSM technology across 23 telecom circles while the Airtel Tele media

Services business offers broadband & telephone services in 94 cities. The Enterprise services

provide end-to-end telecom solutions to corporate customers and national & international long

distance services to carriers. All these services are provided under the Airtel brand.

Bharti is the first

To launches Indias first private sector National Long Distance service

Mobile service to cross the three million customer mark and to cross 1,00,000 in

Himachal

To launch worlds first Flexi-Recharge prepaid coupon for its customer

To announce innovative outsourcing to enhance Quality of Customer Services

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To launch talk-time transfer service for its pre-paid customers in Delhi

To win the prestigious MIS Asia IT Excellence Award 2005

Awards

Airtel wins the World Communication Best Brand Award

Bharti Tele-Ventures is the Asian Mobile news Mobile Operator Of the Year

Airtel chosen as Most Preferred Mobile Service by CNBC Awaaz Consumer Awards

Bharti Tele-Ventures is the Indian Mobile Operator of the Year 2005

Bharti wins Silver Trophy at the CII National Six Sigma Awards

Bharti Tele-Ventures amongst the top technology companies in the World-Business

Week

Bharti foundation wins Golden Peacock award for corporate social responsibility.

AXA Group

AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse

geographically, with major operations in Western Europe, North America and the Asia/Pacific

area. AXA had Euro 1,315 billion in assets under management as of December 31, 2006. For full

year 2006, IFRS revenues amounted to Euro 79 billion, IFRS underlying earnings amounted to

Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock

Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker

symbol AXA.

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AXA Asia Pacific Holdings

AXA Asia Pacific Holdings Ltd (AXA APH) is listed on the Australian stock exchange and is

52.3% owned by AXA SA. AXA APH is responsible for AXA SAs life insurance and wealth

management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand,

Hong Kong, Singapore, Indonesia, Philippines, Thailand, China, India and Malaysia. AXA APH

had A$106.4 billion in total funds under management and administration at 30 June 2007 and

reported a profit after tax before non-recurring items of A$374.0 million for the six months

ended 30 June 2007.

AXA Group is a worldwide leader in financial protection and wealth management. AXA'soperations are diverse geographically, with major operations in Western Europe, North America,

and the Asia/Pacific area. AXA had Euro 1315 billion in assets under management as of DEC.

30, 2008 and reported revenues of approximately Euro 79 billion for 2007. IFRS underlying

earnings amounted to Euro 4,010 million and IFRS adjusted earnings to Euro 5,140 million.

The AXA ordinary share is listed and trades on the Paris Stock Exchange. The AXA American

Depository Share is also listed on the NYSE.

Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of Indias leading business

groups with interests in telecom, agri business and retail, and AXA, world leader in financial

protection and wealth management. The joint venture company has a 74% stake from Bharti and

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SWOT analysis of Bharti AXA Life insurance

Strength

Bharti AXA gives the special training to the agents

Joint venture between the good financial protection company AXA

Weakness

Less awareness about Bharti AXA life insurance Among people

Less distribution channel

Opportunities

A large amount of Indian people is under Insurance cover.

People having Insurance cover are not adequately covered 94% insured people are under

insured.

Threats

A large competition in the market with 23 life insurance companies which they are giving

the life insurance services.

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PRODUCTS & SERVICES

Individual Plans:-

Bharti AXA Dream Life Pension:-

A Unit Linked Pension Product

Dream Life Pension, Bharti AXA Life Insurances unique pension product ensures that your

retirement life is your Dream Life.

Live your Dreams! Be Life Confident.

Key Benefits:

Unmatched flexibility for retirement wealth creation

o Pay one time lump sum or regular premiums

o At the inception systematically increase your premiums by 5 % or 8% each year

with the Accumulator Option

o Increase/decrease premiums any time after the 2nd policy year

o Add top up premiums any number of times after the 1st policy year

Dream Life Pension enhances your retirement kitty by providing special addition, starting

from the end of 10th policy year

Change your planned retirement age any time during the policy term

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Obtain tax benefits as per the prevailing tax laws on the premiums paid and the benefits

received under the policy.

Bharti AXA Life Aspire Life:-

Unit Linked Endowment Product.

Aspire Life helps you create a pool of wealth to meet your long-term needs, while also providing

you adequate protection in case the need arises.

Key Benefits:

Allocation rates as high as 100% i.e. no allocation charges for premiums greater than or

equal to Rs.50,000 on your investment in the unit-linked fund from year 2 - to maximize

your investment returns.

Up to 175% of the first year premium paid by you is returned as Guaranteed Special

Addition, at maturity of the policy or on unfortunate event of death of the Life Insured.

3 investment fund options as per your investment preferences.

Flexibility of partial withdrawals after fifth Policy Year, premium holiday option after

seven policy years and facility to switch amongst the investment funds as per your

investment objectives.

Protection benefit which provides high Sum Assured for longer policy terms.

Tax benefits under section 80C and 10(10D) of Income Tax Act.

Bharti AXA Life Invest Confident:-

Unit Linked Single Premium Product.

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You have always strived hard to achieve the best for you and your loved ones, so when it comes

to making an investment decision, we know that you would expect the best from it too.

Key Benefits:

Convenient single premium product with policy benefit period till the age of 70.

Unique special additions starting from the end of 5th policy year and thereafter at the end

of every 5 years till the maturity date.

3 investment fund options as per your investment preferences.

Basic Sum Assured of five times the single premium.

Unique option of investing additional amount at your convenience through Top Up

Premiums.

Flexibility of partial withdrawals after the third Policy Year

Additional benefit of Rs.5,00,000 in the event of death due to an accident.

Tax benefits under section 80C and 10(10D) of Income Tax Act.

Bharti AXA Life Wealth Confident:-

A unit-linked investment cum protection policy.

Your wealth, your status ensures that you get preferential status wherever you go. So whyshouldn't your money get the same?

Wealth Confident, a unit-linked investment cum protection product, with its limited period

premium payment facility of 5 years, premium payment flexibility, higher allocation of your

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premium for investment, unique special additions and life insurance benefit, not only makes your

money grow but also provides your investment the special treatment that it deserves.

"Be confident of providing your investments the right mix of growth, flexibility and loyalty

benefits. Live confident with Wealth Confident."

Key Benefits:

Pay premium for five years, while your policy continues for ten years.

Higher allocation of your premium up to 88% for investment.

Special additions of units added every year from 6th Year for incremental wealth

creation.

Choose from four different investment funds to meet your financial objectives.

Five times the life cover of your annual premium.

Tax benefit under 80C and 10(10D).

Bharti AXA Life Future Confident:-

A unit-linked policy which offers comprehensive protection along with wealth creation in the

long term

Key Benefits:

Life insurance benefit of up to 420 times the monthly premium.

Comprehensive overall protection through "Protection Enhancers" in the form of riders.

Wealth creation for your long term financial needs.

Special additions at regular intervals, starting from 7th year, to enhance your wealth.

Four different investment funds to meet your financial objectives.

Tax benefit under 80C and 10(10D).

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Bharti AXA Life Future Confident II:-

A unit-linked product which offers enhanced protection along with wealth creation in the long

term.

Key Benefits:

Build Wealth for your long term financial needs with enhanced financial protection.

Sum assured up to 420 times the monthly premium.

Life insurance benefit as Sum assured PLUS Policy fund value.

Four different investment funds to meet your financial objectives.

Comprehensive overall protection through "Protection Enhancers" in the form of riders.

Special additions at regular intervals, starting from the end of 7th year, to enhance your

wealth.

Tax benefit under sections 80C and 10(10D) of Income Tax Act.

Bharti AXA Life Save Confident:-

Traditional money back insurance product for long term savings

Your changing life stages decide your financial milestone planning. When you foresee

intermittent financial requirements in the years to come, like regular expenses related to your

childs education, liquidity becomes a key aspect of your planning along with long term savings,

and protection for your family.

Key Benefits:

Traditional money back product with payment term of 10 years. Get guaranteed amount back on specified intervals, starting from 6th policy year till

maturity.

Amount equal to 110% of Sum Assured paid across 10 years.

Secured growth on savings with Annual Reversionary Bonus, if declared, every year.

Savings enhanced by Terminal Bonus, if any, payable at maturity.

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CHAPTER - 3

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REVIEW OF EXISTING LITRETURE

For long, policyholders in India shunned term insurance plans in favour of endowment policies

Term insurance is the most basic life insurance policy where the only benefit is a compensation

past few years, unit-linked insurance plans (Ulips), which boast of a seemingly irresistible

combination of investment, insurance and tax saving. Insurance agents too have actively been

pushing Ulips as these have helped pump up premium volumes. While the level of premium has

gone up, the purchase of protection has not been commensurate with the growth in incomes.

There are other factors for rate reduction as well. These include deepening insurance penetration

and the reduction in solvency margins prescribed by IRDA and availability of better mortalitydata which helps companies ascertain the risks better. Insurers have been able to reduce cost

of high-value policies further because well-heeled urban Indians, enjoying the fruits of a

blossoming economy, are seeing marked improvement in mortality rates. Their life expectancy is

enhanced by the quality of their lifestyle and access to best-in-class healthcare facilities, leading

to low probability of death due to natural causes.

Consequently, insurance companies do not view offering them inexpensive term cover as a risky

proposition. This, coupled with the increasing demand from this segment, has swollen the

volumes, which in turn, have contributed to shrinking rates. Therefore, life insurers margins for

the term insurance portfolio havent come under pressure.

Sustaining the premiums at these levels doesnt seem likely to hit a roadblock in the future and,

in fact, there are signs that the market could see low-cost insurance scaling new highs in the

coming days. Offering pure term insurance at cheaper rates for HNI consumers is an idea,

which we might see more of in the near future, says Manik Nangia, corporate vice-president

and head, product management, Max New York Life Insurance.

The thumb rule for buying a protection cover dictates that the sum assured should be equal to

100 times the insureds monthly income. Though this estimate is generally considered to be

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accurate, there is a view that to ensure complete peace of mind, the basic term cover could be

enhanced with riders like critical illness and disability benefit. The rationale behind this

argument is that in the event of an accident resulting in severe physical impairment or a serious

ailment, the term cover will be rendered ineffective as it comes into play only after the insureds

death.

More complaints against insurance.

A 12 % jump in the number of life insurance policies sold in April-June this year has resulted in

only 0.95% rise in new premium

Collections as consumers preferred smaller investments in an economic downturn.

Life insurers collected Rs 14,456 crore as new premium in the first quarter of this fiscal

compared to Rs 14,320 crore during the corresponding period last year, according to data

released by the Insurance Regulatory and Development Authority (IrDA). The companies sold

84.5 lakh policies in this fiscal years first quarter.

State-run Life Insurance Corporation, meanwhile, collected Rs 9,028 crore from 59 lakh policies

in the first quarter, up 20% over the corresponding period of last fiscal. The public sector insurer

sold 48 lakh policies in the year-ago period.

The 23 private life insurers sold 25.4 lakh policies in this period, collecting Rs 5,427 crore in

premium from new products a decline of 20% on Rs 6,795 crore premium collections during

the corresponding period last fiscal year.

Insurance is not a priority when it comes to consumer spending. The maximum sale of

insurance products happens only during the last quarter of every financial year when consumers

look at ways to save tax, said an executive at a private insurer.

Officials from LIC of India, New India Assurance, Oriental Insurance, ICICI Lombard, HDFC

Standard life and SBI Life attended the seminar.

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Pratima Chatterjee (2009) pointed that a 12 % jump in the number of life insurance policies sold

in April-June this year has resulted in only 0.95% rise in new premium. Collections as

consumers preferred smaller investments in an economic downturn.

Sanjay Kumar, Jha, zonalmanager for north and head of pension business at Bajaj Allianz.

Sale of life insurance products remained flat during the first quarter of the current fiscal year.

Consumers prefer to invest smaller amounts in insurance products,

Life insurers collected Rs 14,456 crore as new premium in the first quarter of this fiscal

compared to Rs 14,320 crore during the corresponding period last year, according to data

released by the Insurance Regulatory and Development Authority (IrDA). The companies sold

84.5 lakh policies in this fiscal years first quarter.

State-run Life Insurance Corporation, meanwhile, collected Rs 9,028 crore from 59 lakh policies

in the first quarter, up 20% over the corresponding period of last fiscal. The public sector insurer

sold 48 lakh policies in the year-ago period. Account only 2.5% of the country's GDP, while

general insurance premiums are at only 0.65%.

The insurance sector in India offers immense growth opportunities. The potential can be judged

by the fact that today life insurance premiums

The sector has been thrown open for private participation, but the largest life insurance company

in India is still owned by the government, known as Life Insurance Corporation.

While the rest of the world is in grip of an economic downturn and the year 2009 is witnessing a

downtrend in the life insurance industry, with almost flat growth, India for the very first time hasbeen ranked amongst the top10 life insurance markets worldwide.

The facts, data and reports for the year 2008-09 state that insurance sector penetration, both in

life and non-life segments, has improved since the time the sector has been opened for private

participation.

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RESEARCH METHODOLOGY

NATURE OF RESEARCH:

Research Design is descriptive & exploratory in nature because descriptive research

deals with present and it is related with why, what, where, how.etc. And exploratory we

have to explore the data. It constitutes the blueprint for collection, measurement and

analysis of data.

RESEARCH TYPE:

The design used for carrying out this research is Qualitative in nature.

DATA TYPE:

In this research the type of data collection is:

Primary data

Secondary data

DATA SOURCE: The sources of collection of secondary data are:

Books

Websites

Magazine

Brochure

Data source: the source of collection of primary data

Questionnaire

Interview

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CHAPTER - 4

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ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and personnel interview resulted in availability of

the desired information but these were useless until there were analyzed. Various steps

required for this purpose were editing, coding and tabulating. Tabulating refers to

bringing together similar data and compiling them in an accurate and meaningful

manner. The data collected by questionnaire was analyzed, interpreted with the help of

table, and pie chart.

Ques1. Age of the respondents:-

a) 20 30[ ] b) 30 40[ ] c) 40 50[ ] d) Above 50 [ ]

8%

32%

40%

20%

AGE

40 - 50

30 - 40

20 - 30

above 5

PARTICTULARS NO.OF.RESPONDENT PERCENTAGE

20 to 30 40 40%

30 to 40 32 32%

40 to 50 8 8%

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Above 50 20 20%

TOTAL 100 100

a) 40% of the respondents are between 20 to 30 years old.b) 32% of the respondents are between 30 and 40 years of age.

c) 8% of the respondents are between 40 and 50 years of age.d) 20% of the respondents are more than 50 years of age.

Ques2. Occupation of the respondents:-

a) Student [ ] b) Business [ ] c) Service [ ] d) Other

[ ]

12%

12%

36%

40%

OCCUPATION

stude

busine

servic

4th Qt

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Student 12 34%

Business man 12 12%

Service 36 36%

Other 40 40%TOTAL 100 100%

a) 12% of the respondents are businessmen.b) 12% of the respondents are students.c) 37% of the respondents are service.d) 40% of the respondents are in others category.

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Ques3. According to you, what you consider when you purchase the life insurance

policy?

a) Investment. [ ] b) Security. [ ]

c) Claim [ ] d) all of the above [ ]

50%

10%

10%

30%

CONSIDER ABOUT THE LIFE INSURANCE

POLICY

10% respondents said about investment. 10% respondents said about security. 30% respondents said about claim. 50% respondents said all of the above.

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Ques4. Which plan do you prefer?

a) Traditional [ ] b) Modern.[ ]

c) ULIP [ ]

25%

25%

50%

PREFERANCE

25% respondents want to prefer traditional plan.

25% respondents want to prefer modern plan. 50% respondents want to prefer ULIP plan.

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Ques5. According to you, what is your perception about life insurance?

a) To Help Pay for Your Children's Education. [ ] b) To Replace Lost Income.[ ]

c) To cover final expenses [ ] d) all of the above [ ]

50%

10%

10%

30%

PERCEPTION ABOUT THE LIFE INSURANCE

To Help Pay for Your Childre

Education.

To Replace Lost Income.

to cover final expenses

all of the above

50% respondents said life insurance is to help pay for your children education. 10% respondents said life insurance is to replace lost income. 10% respondents said life insurance is to cover final expenses. 30% respondents said life insurance to all above the features which we discuss above.

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Ques6. Are you satisfied with the returns which are given by the life insurance

company?

a) Yes [ ] b) No [ ]

80% are satisfied with the service given by the company. 20% are dissatisfied with the company.

Que7. What is the reason for dissatisfaction?

....

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Ques9. Which factor of the following you will be concern about while you are

purchasing a product?

a) Allocation [ ] b) Fund management [ ]c) Fund administration [ ] d) All of the above [ ]

15% are concern about allocation when purchasing the product.

10% are concern about fund management when purchasing the product

15% are concern about fund administration when purchasing the product 60% are concern about all of the above when purchasing the product

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Ques10. Which is your biggest concern for future?

a) Child education [ ] b) Retirement [ ]c) Childs marriage [ ] d) Medical illness [ ]

45% respondents future concerned was child education.

2O% respondents future concerned was retirement. 15% respondents future concerned was child marriage.

20% respondents future concerned was medical illness.

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FINDINGS

The respondents in the age group of 20-30 are more inclined towards the life insurance

products.

While invest in the life insurance policy 90% are aware about the company in the market.

The 50% respondents perception that child education is the biggest benefit of life

insurance is.

The 80% respondents are satisfied with the returns which are given by the company.

Some respondents are dissatisfied due to the not proper information in beginning and

long term time process.

The 50% respondents prefer the ULIP plan.

The 80% respondents aware about the competition in the market between life insurance

companies.

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CONCLUSIONS

The study has been conducted on Bharti AXA Life Insurance Company Limited and the main

objective of the study was to examine the customers perception and satisfaction level towards

the products of the company. A descriptive and exploratory research design has been adopted

and a sample of 100 respondents was taken from the Gurgaon city. Convenient sampling

technique has been used to choose the sample unit. It was found that the most of the respondents

are aware about the benefits of insurance and have high preference towards life insurance

products. They invest in these products due to a number of reasons, viz., child education, and

retirement benefit, safety of their family in case of death and also for return. The majorities of

the respondents are aware about the companys name but may not find it suitable as it is a new

company and still required to build-up trust amongst the customers. Thus it is suggested that the

company should invest more in advertising and brand building to build the trust and to reach to

the customers.

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BIBLIOGRAPHY

BOOKS

Kothari, C.R. (2005),Research Methodology, New Age International (P) Ltd.

Kotler, Philip (2005), Marketing Management, Pearson Education.

Parsuram A, Grewal Dhruv, Krishnan R (2004), Marketing Research, Biztantra.

Ramaswamy and Namakumari, Marketing Management-Global Prospective, Macmillan

Business Books.

NEWSPAPER

Paramita Chatterjee (2009), Lifeless premium collections upset coverage, The

Economic Times of India, July 29

MAGAZINES & JOURNALS

Business Today

Economics Times

WEBSITES

www.bhartiaxalifeinsurance.com

www.lic.com

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http://www.google.com/http://www.google.com/


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Ajay Final Project