Ing Vysya Project

8/13/2019 Ing Vysya Project

1/98

A STUDY ON

SALES PROCESS

With reference to

INGVYSYA LIFE INSURANCEHYDERABAD

Project report submitted to Andhra University, Visakhapatnam in partial

Fulfillment for the Award of the Degree in

MASTER OF BUSINESS ADMINISTRATION

Submitted by

!V!VN!SURESH UMAR

"Re#d!N$! %&'()*&&&('+

U,de- t.e e/teemed #uid0,1e $2

!BALA RISHNA3 MBA!

Faculty Member In M.B.A Department

DEPARTMENT OF MANAGEMENT STUDIES

ADITYA INSTITUTE OF P!G! STUDIES(Affiliated to Andhra University)

SURAMPALEM3 E!G!Dt!

%&&'4%&*&


2/98


3/98

ADITYA INSTITUTE OF P!G! STUDIES

DEPARTMENT OF BUSINESS MANAGEMENT"APPROVED BY AICTE3 AFFFILIATED TO AU 5 GOVT!OF

A!P!+

SURAMPALEM4(66)67 E!G!Dt "A!P+

CERTIFICATE

This is to certify that project report entitled A STUDY OF SALESS

PROCESS with reference to ING VYSYA LIFE INSURANCE!

HYDERABAD is a bona fide work done by K.V.V.N.SURESH KU!R

with Re"d. No!%&'()*&&&(' #nder $y "#idance and s#per%ision d#rin" ay

to ne '((). This project is s#b$itted to ANDHRA UNIVERSITY in

partial f#lfill$ent of the award of de"ree of MASTER OF BUSINESS

ADMINISTRATION.

PRO8ECT GUIDE9 HEAD OF THE DEPARTMENT

r. K.*!+! KR,SHN!- M!B!A SR,. &. N!EN/R! KU!R- M!B!A

E0ternal E0a$iner


4/98

CERTIFICATE

This is to certify that project report entitled A STUDY OF

SALESS PROCESS with reference to ING VYSYA LIFE INSURANCE!

HYDERABAD is a bona fide work done by K.V.V.N.SURESH KU!R

with Re"d. No!%&'()*&&&(' #nder $y "#idance and s#per%ision d#rin" ay

to ne '((). This project is s#b$itted to ANDHRA UNIVERSITY in

partial f#lfill$ent of the award of de"ree of MASTER OF BUSINESS

ADMINISTRATION.

P:01e1 SUR!2!+E

D0te9

. 3r. K.*!+! KR,SHN!4-

2roject #ide-

!ditya ,nstit#te of 2. St#dies.


5/98

DECLARATION

, here by declare that this project report entitled A STUDY OF

SALES PROCES with reference to ING VYSYA LIFE INSURANCE3

HYDERABAD has been prepared by $e d#rin" the year '(() in the $onth

of ay and ne is partial f#lfill$ent of the re5#ire$ent for the award of

/e"ree of MASTER OF BUSINESS ADMINISTRATION $2 ANDHRA

UNIVERSITY!

, also declare that this project is a res#lt of $y own effort and that it has

not been s#b$itted to any other #ni%ersity for the award of any /e"ree or

/iplo$a.

P:01e1 SUR!2!+E

D0te9

!V!V!N!SURESH UMAR

Re#d!NO!"%&'()*&&&('+


6/98

ACNO;LEDGEMENT

, wish to thank 8!N0#e,d-0 um0- H6/- !/,T7! ,NST,TUTE 68

2..STU/,ES for his %al#able s#pport in doin" this project.

, feel happy to thank- Head of the /epart$ent- and /epart$ent of

ana"e$ent St#dies for pro%idin" $e her %al#able "#idance and e0pertise in

s#ccessf#l co$pletion of this project.

, thank $y project "#ide- !BALA RISHNA 8ac#lty $e$ber in

ana"e$ent St#dies for pro%idin" $e his %al#able "#idance and e0pertise in

s#ccessf#l co$pletion of this project.

, thank $y project internal "#ide M-! !RA8A 3Sales ana"er4 who

shows infinite patience and perse%erance in teachin"- s#""estin" re$edies forthe proble$s enco#ntered in $y project and in answerin" all $y 5#estions.

, also e0tend $y heartfelt thanks to $y friends for their cooperation

d#rin" $y entire project period.

!V!V!N!SURESH UMAR


7/98

CONTENTS

C.0e1ti?e/ $2 t.e /tudy

Need 2$- t.e /tudy

Met.$d$:$#y

Limit0ti$,/ $2 t.e /tudy

C.0


8/98

CHAPTER4*!"#$DU%"$!, !&&D "$# "'&

("UD), *&"'$D$+$),

+*"A"$!( $F "'& ("UD)


9/98

INTRODUCTION

The c#rrent $eanin" of $arketin" we ha%e to #nderstand different points of %iews. 6penly

there are two di$ensions fro$ which we can disc#ss the $eanin" of $arketin".

2rod#ct oriented %iew H#$an wants are #nli$ited and respecti%e in nat#re. *#siness

acti%ities ai$ at ac5#irin" of wealth and con%ertin" it into desire for$s $akin" the final

prod#ct a%ailable for e0chan"e for the satisfaction of h#$an wants. The acti%ities fall

#nder ind#stry- co$$erce and trade these three batches ha%e one co$$on f#nction the

e0chan"e. This i$portant and powerf#l f#nction is ter$ed as $arketin". arketin"

occ#pies an i$portant position in the or"ani9ation of b#siness #nit. Traditional %iew of$arketin" that the c#sto$er will accept what e%er prod#ct the seller presents. ,n this way

the $ain concern of the prod#cer is to prod#ce with o#t considerin" the choice of the

beha%ior of the c#sto$er. *#t this point of %iew of $arketin" has chan"e. The $odern

concept $ay be centered on the c#sto$er. The $an#fact#rer cannot be prod#cin" whate%er

he likes b#t whate%er c#sto$er wants.

arketin" $ay be e0plained as a b#siness f#nction entr#sted with the creation and

satisfaction of c#sto$er to achie%e the ai$s of b#siness. Th#s the process of $arketin"

incl#des.

:. 2rofit $akin" by sales.

'. The presence of c#sto$er.

;. Satisfaction of c#sto$er by $eetin" his need.

held that cons#$ption is the so#l p#rchase of

all prod#cts and interest of the prod#cer o#"ht to be attendin" to only so far as it $ay be

necessary for pro$otin" that of the c#sto$er. Under the $ercantile syste$- the interest of


10/98

the c#sto$er was %irt#ally sacrificed to that of the prod#cer. They coincided prod#ction

and net cons#$ption as the #lti$ate end and deject of the ind#stry and co$$erce. ,t was

as ta" when the role of $arketin" was i"nored. With down of ind#strial re%ol#tion $ajor

chan"es took place.

There was a shift for$ a"ric#lt#ral to ,nd#stry. The linin" standards of the people

rose with the de%elop$ent of transport and co$$#nications. Howe%er no ser%ice efforts

were $ade to satisfy the wants of the c#sto$ers. The abo%e definitions of the $arketin"

are prod#ct oriented beca#se they lay $ore e$phasis the prod#ct rather than one c#sto$er.

!ccordin" to the$ the $arketin" process co$es to an as soon as the prod#ct reaches the

hands of c#sto$ers. ,n fact the $arketin" is wider than that.

arketin" is related to the needs of the b#yer. 6nly s#ch prod#cts which can satisfy

the wants and tastes of the c#sto$er. To please the c#sto$er at the sales ser%ice are

needed. He we 5#ote so$e of the well knows c#sto$ers oriented definitions of $arketin".

=arketin" is the b#siness process by which prod#ct are $atched with $arkets and

thro#"h which of ownership is effected>

?UN/,88 !N/ ST,++

These definitions s#""est that $arketin" is conca%ed with the $o%e$ent of "oods and

ser%ices fro$ the plant to the c#sto$er. arketin" acti%ities are directly connected with

the de$and sti$#latin" and de$and f#lfillin" of the enterprise. !ll these acti%ities are

interested and inter.

We can distin"#ish between a social and a $ana"erial definition of $arketin". !

social definition shows the role $arketin" plays in society. 6ne $arketer said that

$arketin"@s role is to =deli%er a hi"her standard of li%in".> Here is a social definition that

ser%es o#r p#rpose1 arketin" is a social process by which indi%id#als and "ro#ps obtain

what they need and want thro#"h creatin"- offerin" and freely e0chan"in" prod#cts and

ser%ices of %al#e with others. 8or a $ana"erial definition- $arketin" has often been

described as =t.e 0-t $2 /e::i,# b#t people are s#rprised when they hear that

the $ost i$portant part of $arketin" is not sellin". Sellin" is only tip of the $arketin"

iceber".


11/98

OB8ECTIVES OF THE STUDY

The objecti%es of the st#dy are

:. To st#dy the sales process in ,ns#rance ,nd#stry with reference to ,N V7S7! life

ins#rance.

'. To st#dy the sales process position in Sec#nderabad.

;. To st#dy abo#t how the sales process is "oin" in ,ns#rance ,nd#stry.


12/98

NEED FOR THE STUDY

Now a day ,ns#rance plays a %ery i$portant role in the H#$an +ife. The

ter$inolo"y of the ins#rance is chan"in" accordin" to the chan"e in the world. 2eople in

,ndia are $ostly payin" policies in ins#rance sector. They are s#fferin" to choose the

correct one. There is n#$ber of policies which are of different co$panies. So they are

#nable to choose the best one. So the ,N V7S7! +ife ,ns#rance took se%eral $eas#res

to i$pro%e the $arketin" syste$ for distrib#tin" policies accordin" h#$an race.

This st#dy is to know the sales process and to know the whether the policy holders

are $e$bers in ,N V7S7! +ife ,ns#rance ?o$pany- are satisfied with the ser%ice of the

co$pany.

:. ,ncrease awareness in the $ind of the people.

'. To #nderstand and to know the opinion of the people towards ins#rance co$panies.

;. Helps in identifyin" the co$petitors


13/98

METHODOLOGY

!s the st#dy was based on pri$ary data- 5#estionnaire was fra$edD s#r%ey is confined to

the c#sto$ers and in Sec#ndrabad only.

Sa$plin" proced#re1

Ha%in" fra$ed the 5#estionnaire- the c#sto$ers of Sec#ndrabad ?ontacted

personally. The re5#ired infor$ation present in the 5#estionnaire. The infor$ation is

tab#lated for the analysis.

The st#dy is done by pri$ary and secondary data.

/!T! ?6++E?T,6N

/ata collection is the i$portant aspect of any research. The collection of data "i%es

the researcher the scope to analy9e the sit#ation. The data of the st#dy is collected fro$

%ario#s so#rces. 8or the p#rpose of achie%in" the data effecti%ely the infor$ation consists

of two kinds of data.

:. 2ri$ary data

'. Secondary data

The pri$ary data are those- which are collected freshly and for the first ti$e- fro$

the c#sto$er directly. This is %ery i$portant beca#se this is basis on which analysis and

s#""estions can be drafted.

The secondary data are those which ha%e already been collected by so$e one or else which

ha%e been passed thro#"h statistical process.

This "i%es a base for the researcher to Know the past infor$ation and the kind the chan"e

that has occ#rred fro$ that ti$e till now.


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LIMITATIONS OF THE STUDY

!s it is not a :(( co$prehensi%e st#dy- it s#ffers fro$ few li$itations which are

as follows.

!s the ti$e a%ailable in cond#ctin" the s#r%ey and the analysis is li$ited i.e.- only

a period of ei"ht weeks- it restricts in st#dyin" the aspects of 5#estionnaire in a

detailed $anner.

!s the s#r%ey is $ade only a$on" ::( o#tlets it is diffic#lt to "et co$plete and

acc#rate infor$ation of the prod#ct attrib#tes and the awareness created by the

prod#ct.

The st#dy is s#bjected to li$ited re"ion in Sec#ndrabad.

+ack of awareness of s#r%ey in the $ind of the c#sto$er.

! sincere atte$pt was $ade to collect and draw concl#sions in the best possible

way and $ini$i9e the errors.

/#e to %ast area of $arket- it beco$es %ery diffic#lt to $eet each and e%ery

c#sto$er.


15/98


16/98

THE SCENARIO OF INSURANCE INDUSTRY

WH!T ,S ,NSUR!N?EF

The basics of ins#rance are related to the protection of the econo$ics %al#es of

assets. E%ery asset has a %al#e. The asset wo#ld ha%e been created thro#"h the effect of the

owner. The asset is %al#able to the owner- beca#se he e0pect to "et so$e benefits- fro$ it.

The benefit beca#se it $eets so$e of it needs. ,n the case of a factory or a cow- the prod#ct

"enerated by is sold and inco$e "enerated. ,n the case of a $otor car- it profiles co$fort

and con%inces in transportation. There is no direct inco$e.

E%ery asset is e0pected to last for a certain period of ti$e d#rin" which it will

perfor$. !fter that- the benefit $ay not be a%ailable. There is lifeGti$e for a $achine in a

factory or a cow or a $otor car. None of the$ will last for e%er. The owner is aware of this

and he can so $ana"e his affairs that by the end of that period or lifeGti$e- a s#bstit#te is

$ade a%ailable. Th#s- he $akes s#re that the %al#e or inco$es are not lost. Howe%er- the

asset $ay "et lost earlier. !n accident or so$e other #nfort#nate e%ent $ay destroy it or

$ake it nonGf#nctional- wo#ld be depri%ed of the benefit and the planned s#bstit#te wo#ld

not ha%e been ready. There is an ad%erse or #npleasant sit#ation. ,ns#rance is a $echanis$

that helps to red#ce the effect of s#ch ad%erse sit#ation.

THE H,ST6R7 68 ,NSUR!N?E

The b#siness of ins#rance started with $arine b#siness traders- who #sed to

"ather in the +loyd@s coffee ho#se in +ondon a"reed to share the losses to their "oods

while bein" carried by ships. The losses #sed to occ#r beca#se of pirates who robbed on

the hi"h seas or beca#se the ship. The first ins#rance policy was iss#ed in :A; in En"land.


17/98

,n ,ndia- ins#rance be"an in :C( with life ins#rance bein" transacted by an En"lish

co$pany- the E#ropean and the !lbert. The first ,ndian ins#rance co$pany was the

*o$bay $#t#al ass#rance society ltd- for$ed in :C(. This was followed by the oriental

life ass#rance co. in :C


18/98

,ns#rance does not protect the asset. ,t does not pre%ent its loss d#e to the peril

cannot be a%oided thro#"h ins#rance. The peril can so$e ti$es be a%oided- thro#"h better

safety and da$a"e control $ana"e$ent. ,ns#rance only tries to red#ce the i$pact of the

risk on the owner of the asset and those who depend on the asset. ,t only co$pensates the

losses and that too- the f#lly.

6nly econo$ic conse5#ences can be ins#red. ,f the loss is not financial-

ins#rance $ay not be possible- e0a$ple of nonGecono$ic losses are lo%ed and affection of

parents- leadership of $ana"ers- senti$ental attach$ents to fa$ily heir loo$s. ,nno%ati%e

and creati%e abilities etc.

H6W ,NSUR!N?E W6RKS

The $echanis$ of ins#rance is %ery si$ple. 2eople who are e0posed to the sa$e

risks co$e to"ether and a"ree that- if any one of the$ s#ffers a loss- the others will share

the loss and $ake "ood to the person who lost. !ll people who send "oods by ship are

e0posed to the sa$e risks. Which are related to water da$a"es- ship sinkin"- piracy-

etc.those ownin" factories are not e0posed to these risks- b#t they are e0pected to different

kinds of risks like- fire- hailstor$s- earth5#akes- li"htin"- b#r"lary- etc.like fire different

kinds or risks can be identified and separate "ro#ps $ade- incl#din" those e0posed to s#ch

risks- by this $ethod- the hea%y loss that any one of the$ $ay s#ffer is di%ided into

bearable- s$all losses by all. ,n other words- the risk is spread a$on" the co$$#nity and

the likely bi" i$pact on one is red#ced to s$aller $ana"eable i$pacts on all.

E0a$pleG:

,n a %illa"e there are


19/98

THE HU!N !SSET

! h#$an bein" is an inco$e "eneratin" asset. 6ne@s $an#al labo#r- professional skills

and b#siness ac#$en is the asset. This asset also can be lost thro#"h #ne0pectedly early

death ca#sed by accidents. !ccidents $ay or $ay not happen death b#t the ti$in" is

#ncertain. *#t if it happens $#ch earlier when the alternate arran"e$ents not in place-

there can be losses to the person and dependents. ,ns#rance is necessary to help those

dependent on the inco$e.

The person- who $ay ha%e $ade arran"e$ents for his needs after his

retire$ent- also wo#ld need ins#rance. This is beca#se the arran"e$ents wo#ld ha%e been

$ade on the basis of so$e e0pectations.

,NSUR!N?E 68 ,NT!N,*+ES

The concept of ins#rance has been e0tended beyond the co%era"e of tan"ible assets.

E0porters r#n at the risk of losses if the i$porters in the other co#ntry defa#lt in pay$ents

or in collectin" the "oods. They will also s#ffer hea%ily d#e to s#dden chan"es in c#rrency

e0chan"e rates- econo$ics policies or political dist#rbances in the other co#ntry. These

risks are ins#redD doctors r#n the risk of bein" char"ed with ne"li"ence and s#bse5#ent

liability for da$a"es. The a$o#nt in 5#estion can be fairly lar"e- beyond the capacity of

indi%id#als to bear. These are ins#red. Th#s ins#rance is e0tended to intan"ibles.

THE *US,NESS 68 ,NSUR!N?E

,ns#rance co$panies are called ins#res. The b#siness of ins#rance is to brin"

to"ether persons with co$$on ins#rance interests- collect share fro$ all of the$ and pay

o#t co$pensation to those who s#ffer. The pre$i#$ is deter$ined on the sa$e lines as

indicated in e0a$ples abo%e- b#t with so$e f#rther refine$ents.


20/98

,NSUR!N?E !S ! S6?,!+ SE?UR,T7 T66+

The United National /eclaration of h#$an ri"hts :)< pro%ides that e%ery one

has a ri"ht to a standard of li%in" ade5#ate for the health and well bein" of hi$ self and his

fa$ily incl#de food clothin" ho#sin" and $edical care and necessary social ser%ices and

the ri"ht to sec#rity in the e%ent of #ne$ploy$ent.

R6+E 68 ,NSUR!N?E ,N E?6N6,? /EVE+62ENT

8or econo$ic de%elop$ent- in%est$ents are necessary. ,n%est$ents are $ade at

sa%in"s. ! life ins#rance co$pany is a $ajor instr#$ent for the $obili9ation of sa%in" of

people- partic#larly fro$ the $iddle and lower inco$e "ro#ps. These sa%in"s are

channeled into in%est$ents for econo$ic "rowth.

!s on ;:.;.'(('- the total in%est$ents of the +,? e0ceeded Rs.'


21/98


22/98

$ake a f#ll disclos#re to the #nderwriter witho#t bein" asked- of all $aterial

circ#$stances. This is e0pressed by sayin" that it is a contract of #t$ost "ood faith>.

The law i$poses a "reater d#ty on the parties to an ins#rance contract than in

the case of other co$$ercial contracts- to disclose rele%ant infor$ation. This d#ty is one of

#t$ost "ood faith or Uberri$ae 8ides. ,t is the d#ty of the proposer to $ake a f#ll

disclos#re to the #nderwriter. The i$plication is that- in how e%ent of fail#re to disclose

$aterial facts- the contract can be held to be %oid abGinitio.

E%ery circ#$stance that wo#ld ha%e a bearin" on the j#d"$ent of a pr#dent

ins#rer in fi0in" the pre$i#$ or deter$inin" the acceptability of the proposal for ins#rance

is a $aterial fact. Therefore- facts re"ardin" a"e- hei"ht- b#ild- nat#re of occ#pation-

s$okin"drinkin" habits- $edical history- s#r"eries- earlier ins#rances- etc.- $#st be

disclosed. The proposer cannot defend nonGdisclos#re by contendin" that he did not think

that the fact was not $aterialL

There are certain circ#$stances- which need not be disclosed.

They are

:. 8acts of co$$on knowled"e- which e%ery one is s#pposed to know.

'. 8acts of law

;. 8acts which a s#r%ey wo#ld ha%e re%ealed.


23/98

:. S#bstantially false and known to the proposer as false not known to the

second party

'. ?oncerned with facts which are $aterial to the acceptance or assess$ent of

the risk or $aterial to the benefits obtained by the proposer.

;. ?alc#lated to ind#ce the other party to enter into a contract on its own

ter$s.

,n a proposal for life ins#rance- the proposer $akes a declaration to the effect that all the

state$ent in the proposal for$ are tr#e in e%ery respect and if any #ntr#e state$ent be

contained therein- the ins#rer wo#ld be entitled to treat as n#ll and %oid and forfeit all the

$oneys paid therefore.

,NSUR!*+E ,NTEREST1

!ll risks are not ins#rable. 6therwise- an ins#rance contract wo#ld be no different

fro$ a wa"erin" contract. Wa"erin" contract is ille"al in ter$s of sec.;( of the ,ndian

contract act and therefore in%alid. What distin"#ishes an ins#rance contract fro$ a

wa"erin" contract is that the ins#red $#st ha%e an ins#rable interest in the s#bject of

ins#rance. ,n si$ple ter$s- it $eans that the proposer $#st ha%e a stake in the contin#ance

of the s#bject ins#red and co#ld s#ffer loss- if the risk is not co%ered thro#"h ins#rance.

The ins#red $#st be in a relationship with the s#bject of ins#rance.

8E!TURES 68 ,NSUR!*+E ,NTEREST

,n the case of life ins#rance policy- ins#rable interest $#st e0ist at the inception of the

policy. There is no- re5#ire$ent for ins#rable interest at the ti$e of a clai$ #nder the

policy. ,n the case of $arine policy- ins#rable interest $#st e0ist at the ti$e of the clai$.

,n other ins#rance- ins#rable interest $#st e0ist at the ti$e of inception as well as at the

ti$e of clai$.

2R,N?,2+E 68 ,N/EN,T7

,ns#rance is $eant to co$pensate losses. *y i$plication- the $echanis$ of

ins#rance cannot be #sed to $ake a profit. This is broadly the principle of inde$nity.


24/98

,ns#rance sho#ld place the ins#red in the sa$e financial position after a loss as he enjoyed

before it not better.

/,88ERENT R,SKS

The +ife ,ns#rance b#siness deals with risks relatin" to life of h#$an bein"s. ,t can

$iti"ate the conse5#ences in those circ#$stances.

!s a r#le- risks are $ana"ed in ; ways

:. 2re%ention

'. Retention

;. Transfer

/eath and old a"e are not pre%entable at all.

NEE/S !N/ ,NSUR!N?E

Risks arise beca#se there are needs to be f#lfilled. The risks attached to early death arise

beca#se of the need to $aintain the fa$ily that is left behind. /ifferent plans are desi"ned

with different benefits. While sellin" life ins#rance- therefore it is necessary to be aware of

the needs of people.

*roadly the needs of indi%id#als $ay be classified as follows.

:. 2rotection of the standards of li%in" of the fa$ily- which is at risk on early death.

'. 8#t#re e0penses on acco#nt of children@s ed#cation- $arria"e- start of so$e

b#siness and so on- which are a$bitions and drea$s.

;. ?ontin#ance of b#siness when financiers ask for life ins#rance policies as collateral

sec#rity.


25/98

!ll the abo%e needs ha%e to be $et- after $eetin" the costs of inflation. 2eople

wo#ld not be conscio#sly aware of these as for$idable proble$s in the f#t#re. E%en if they

do- they $ay not be willin" to sacrifice so$e of the pleas#res of the present in order to

pro%ide for the f#t#re. This is the diffic#lty- which life ins#rance a"ents face.

;HAT IS PREMIUM

2re$i#$ is the consideration the holder has to pay in order to sec#re the benefits

offered by the ins#rance policy. ,t can be looked #pon the price of the ins#rance policy. ,t

$ay be a oneGti$e pay$ent. That is not co$$on. 6ften it has been paid re"#larly o%er a

period of ti$e.

R,SKS- NET !N/ 2URE 2RE,U

The fi"#re of rs '(( $entioned wo#ld be the cost of co%erin" the risk of death of

persons at the a"e of A( for one year. This cost is for ins#rance of Rs '(-((( which can be

e0pressed also as Rs :( per tho#sand.

+6!/,NS

The ad$inistrati%e e0penses of the ins#rer ha%e to be $et o#t of the pre$i#$ paid by

the policy holders. To this e0tent the pre$i#$ to collect will be hi"her. S#ch additions to

the p#re pre$i#$ are called loadin"s

+EVE+ 2RE,US

,f it is e0pected that o#t of :(((( persons at a specified a"e- one is likely to die with in

one year- the $ortality rate at that a"e is said to be (.(:. The risk pre$i#$ char"eable

for persons at that a"e wo#ld be (.(: per Rs :((( s#$ ass#red- if a policy has a ter$ of '(

years- the risk pre$i#$ and therefore the pre$i#$ wo#ld %ary for each of the '( years.

688,?E 2RE,U

The pre$i#$ fi"#re arri%ed at after loadin" the net pre$i#$ is called the office

pre$i#$. They are now ready for #se. The pre$i#$ fi"#res printed in the pro$otional

literat#re and broch#res are the office pre$i#$.

EMTR! 2RE,U


26/98

E0tra pre$i#$ $ay be char"ed are any partic#lar policy. This $ay happen beca#se of

the "rand of so$e benefit in addition to the basic benefit #nder the plan- like accident

benefit- riders pro%ide additional benefits. E0tra pre$i#$ $ay beco$e char"eable beca#se

of #nder writin" decisions. These are #s#ally stated as say- Rs :( per :(((- and will be

added to the pre$i#$ otherwise char"eable.

?!+?U+!T,6N 68 !E1

!"e has to be deter$ined has on the date of co$$ence$ents of the policy. ,f a person is

born '(th!#"#st :)CB- the a"e ne0t birthday on :(thly '((' wo#ld be 'B.

2RE,U ?!+?U+!T,6NS

StepG:1 find o#t tab#lar pre$i#$ for the rele%ant plan and ter$. This pre$i#$ is :(((

s#$ ass#red. !ss#$e that the fi"#re is Rs


27/98

!?TU!R,!+ V!+U!T,6N

2re$i#$ is calc#lated takin" into acco#nt likely f#t#re e0periences in respect of

$ortality- interest and e0penses. These are ass#$ptions. The f#t#re e0perience $ay or $ay

not confor$ to these e0pectations. The ins#rance act in ,ndia re5#ires that act#arial

%al#ations be done e%ery year.

*6NUS1

The distrib#tion of the %al#ation s#rpl#s to policy holders is done thro#"h the

declaration of bon#s. 6nly policy holders who opt for participatin" or with profit policies

wo#ld be entitled to bon#s. 6ther policy holders who ha%e none participatin" or witho#t

profit policies wo#ld be payin" a sli"htly lesser a$o#nt of pre$i#$ for the sa$e kind of

ins#rance co%er.

,f a co$po#nd re%ersionary syste$- the bon#s will be added to e0istin" S.!.incl#din"

bon#ses attached earlier.

! %ariety of practices are followed with re"ard to bon#s. So$e $ake the %estin" of

bon#s conditional on the policy contin#in" to be in force thro#"ho#t.

i%en below details of the bon#s declared by the +,? after the %al#ation on ;:G;G'(('.

TERM ENDO;MENT MONEYBAC

ANTICIPATED

+ess than :: years Rs .


28/98

*on#s is #s#ally declared policies- which are in force on the date of %al#ation. The

bon#s after the %al#ation as on ;:G;G'((; will be declared so$eti$e in Septe$ber '((;

and will benefit holders of policies which are in force on ;:G;G'((;. ,n order to o%erco$e

s#ch ano$alies- act#aries #s#ally declare ,nteri$ bon#s payable on s#ch policies- which

beco$e clai$s between two %al#ations.

LIFE INSURANCE PRODUCTS

*!S,? E+EENTS1

+ife ins#rance prod#cts are #s#ally referred to as Jplans of ins#rance@. These

plans are ha%e two basic ele$ents. 6ne is the J/eath co%er@ pro%idin" for the benefit bein"

paid on the death of the ins#red person within a specified period. The other is the JS#r%i%al

*enefit@ pro%idin" for the benefit bein" paid on s#r%i%al of a specified period.

2lans are ins#rance that pro%ides only death co%er are called JTer$ !ss#rance@ plans.

These that pro%ide only s#r%i%al benefits are called J2#re Endow$ent@ plans. ,f the ins#red

does not die with in the specified period- no pay$ent is $ade #nder a ter$ ass#rance plan.

Si$ilarly- if the ins#red dies with in the specified period- no pay$ent is $ade #nder a p#re

endow$ent plan. *oth these are like fire ins#rance policies. ,f the specified contin"ency

does not happen- the policy holder does not "et anythin" fro$ the ins#rer.

!ll ins#rance plans are co$binations of these two basic plans. ! ter$ ass#rance plan

with an #nspecified period is called a JWhole life policy@ #nder which the s#$ ass#red is

paid on death whene%er it $ay occ#r. ! ter$ ass#rance plan alon" with a p#re endow$ent

plan when offered as a sin"le prod#ct is called an endow$ent ass#rance plan- #nder which

the S.!. is paid on s#r%i%al of the specified period or on earlier death. ! ter$ ass#rance

plan with a p#re endow$ent plan of do#ble the %al#e is called a do#ble endow$ent

ass#rance plan #nder which the a$o#nt payable in s#r%i%al is do#ble the a$o#nt payable

in death.

! plan of ass#rance will ha%e the followin" feat#res. *y $akin" chan"es in these

feat#res or addin" and co$binin" so$e of the$.

:. Who can be ins#redF

The %ario#s possibilities are indi%id#al ad#lts- children- two or $ore persons

jointly #nder one policy.


29/98

'. What can be the S.!F

So$e plans stip#late a $ini$#$ S.!. there are $a0i$#$ li$its also for

certain benefits- like accidents benefits.

;. ,n what contin"ency wo#ld the S.! be payableF

?o#ld be on death or on s#r%i%al.


30/98

Reference has been $ade in an earlier para"raph to the whole life and the

endow$ent plans. ,n a whole life plan- the S! beco$es payable only on death whene%er it

$ay occ#r. *#t #nlike a ter$ ass#rance plan- so$e pay$ent will be $ade at so$e ti$e.

!ltho#"h- in the case of whole life policies- the S! is payable only on death so$e ins#rers

pay the S!- when the life ass#red co$pletes say- :(( years. ,n the endow$ent plan- the S!

is payable on s#r%i%al to the end of the ter$ or on earlier death.

?6NVERT,*+E 2+!NS1

?on%ertible plans of ass#rance are plans- which pro%ide- in its ter$s and conditions-

that it can be chan"ed to another plan after- or within- a certain period after

co$$ence$ent. 8or e0a$ple- a con%ertible ter$ ass#rance plan can be con%erted in to a

whole life policy or an endow$ent policy- within a period specified in the ori"inal plan.

This period $ay be not later than two years before the e0piry of the ori"inal ter$. ,n other

words- if the ori"inal ter$ ins#rance co%er is for B years- the option to con%ert sho#ld be

e0ercise before the end of the fo#rth year. ,n so$e plans- the option can be e0ercised at any

ti$e- b#t before a"e B(- a con%ertible a whole life plan can be con%ertible into an

endow$ent plan

W,TH 2R68,T !N/ W,TH6UT 2R68,T 26+,?,ES1

With o#t profit polices are not entitled to bon#ses declared after %al#ation. With profit

policies pay a sli"htly hi"her pre$i#$ for the ri"ht to participate in the pro"ress of the

ins#rer. With profit polices are pop#lar beca#se the bon#ses are e0pected to be $ore than

e0tra pre$i#$ paid.

&6,NT +,8E 26+,?,ES1

,N THE ?!SE &6,NT +,8E ,NSUR!N?E1

! joint life declaration is necessary to create a joint interest in the policy.

,n case of partner ship ins#rance the partner ship deal will be e0a$ine the nat#re of interest

of each partner.

Each life will be #nder written separately.

*on#ses accr#e on the sin"le basic S! only.

?H,+/ERN@S 2+!NS1


31/98

,ns#rance can be taken on the li%es of children- who are not $ajor@s. The propose

will ha%e to be $ade by a parents.

,n these plans- risk on the life on the ins#red child will be"in only when that

child attains a specified a"e. 2ractices %ary widely the ti$e "ap between date of

co$$ence$ent of the policy and the co$$ence$ent of risks called the defer$ent period.

There is no ins#rance co%er d#rin" the defer$ent period. ,f a child dies d#rin" the

defer$ent period- the pre$i#$s will be ret#rn.

V!R,!*+E ,NSUR!N?E 2+!NS1

The #nit tr#st of ,ndia has #nit linked ins#rance plan. This plan is desi"ned for any

resident in ,ndia between the a"e@s of :' and AA plannin" to sa%e between Rs. B(((G and

Rs. CA-(((G to be contrib#ted in half yearly are ann#al install$ents o%er a period of :( or

:A years. 2ersons o%er AA years can "o in for a :( year plan. No $edical e0a$ination is

necessary.

The $oney back type policies help the policy holders to so$e e0tent. The l#$p

s#$s paid periodically with o#t affectin" the a$o#nt of ins#rance o%er- can be in%ested.

Re"#lar state$ent for the ins#rer wo#ld indicate the "rowth of each of these f#nds and the

policy holder wo#ld ha%e a choice of shiftin" fro$ one to another.

R,/ERS1

! rider is a cla#se that is added on to a basic policy pro%idin" an additional benefit-

at the choice of the proposer .Val#ation s#rpl#s also is offered a rider. *#t that is not so

with re"ard to all riders.

So$e of the riders bein" offered by ins#rers in ,ndia1

,ncreased death benefit.

!ccident benefit allowin" do#ble the S! if death happens

2er$anent disability benefits- co%erin" loss of li$bs- eye site etc.

G#aranteed increases in co%er at specified periods.

?o%er to contin#e beyond $at#rity a"e for sa$e.

!s per re"#lation $ade by the ,R/! in !pril '((' and a$ended in 6ctober '(('.


32/98

2+!NS ?6VER,N H!N/,?!22E/1

2hysically handicapped persons are ins#red. E0tras are char"ed in so$e cases like

loss of both ar$sD deaf in both ears- blind in both eyes- etc. these details will ha%e to be

"athered fro$ the co$panies #nder writin" depart$ents.

+!W !N/ REU+!T,6N1

The ins#rance act :);- which ca$e in to effect fro$ :

st

ly :);)- and was ana$ended in :)A( and later in :)))- is the principal enact$ent relatin" to the b#siness of

ins#rance in ,ndia.

Section '3A!4 defines chief a"ent as a person who- not bein" a salaries e$ployee of an

ins#re- in consideration of co$$ission- e$ployin" to be e$ployed ins#rance a"ent on be

half of the ins#rer.

Section


33/98

!/V!NT!ES 68 +,8E ,NSUR!N?E

E%en so- a co$parison with other for$s of sa%in"s will show that life ins#rance has

the followin"

,n the e%ent of death- the settle$ent is easy. The heirs can collect the $oney@s 5#icker-

beca#se of the facility of no$ination and assi"n$ent. The facility of no$ination is now

a%ailable for so$e bank acco#nts. There is a certain a$o#nt of co$p#lsion to "o tho#"hthe plan of sa%in"s. ,n other for$s- if one chan"es the ori"inal plan of sa%in"s- there is no

loss. ,n ins#rance- there is a loss.

?reditors cannot clai$ the life ins#rance $oneys. They can be protected a"ainst

attach$ents by co#rts.

There are ta0 benefits- both in inco$e ta0 and in capital "ains

arketability and li5#idity are better. ! life ins#rance policy is property and can be

transferred or $ort"a"ed loans can be raised a"ainst the policy.


34/98

CHAPTER46%$*PA!) P#$F+&


35/98

COMPANY PROFILE

,N R6U2 ,NTR6/U?T,6N1

,N is a fort#ne A(( co$pany- acti%e in the field of bankin"- ins#rance- and asset

$ana"e$ent.

Ranked :;thin the "lobal fort#ne A((

:A( years of financial e0pertise.

Tr#st of si0 crores c#sto$ers.

World@s lar"est financial ser%ices co$pany 3in Re%en#es4.

6%er RsB:.Alakh crores in assets.

6%er last :A( years- ,N "ro#p has "rown to beco$e one of the lar"est life

ins#rance or"ani9ations in the world. Today it to#ches the li%es of o%er B crore people

across :A; cities. ,t offers a ran"e of financial ser%ices incl#din" ins#rance- pension-

bankin" and asset $ana"e$ent. ,n the year '((- total asset of the "ro#p stood o%er:;BBB)A.C $illion with e$ployees ::A;(( and profits ac5#ired are )A.) $illion. ,N

is now pro%idin" its ser%ices to A( co#ntries.

HISTORY OF ING9

,N "ro#p ori"inated in:)): to ens#re people felt protected and at peace. To

pro%ide the sa$e- $er"ers- ac5#isitions and or"anic "rowth took place to for$ a stron"er-

lar"er or"ani9ation. The o#tco$e is the ,nternational Netherlander ro#p ,n :)):. Which

is abbre%iated as ,NF

The ,N "ro#p- the world@s lar"est financial ser%ice pro%ider partnered with

,ndia@s pre$ier pri%ate sector financial instit#tion- the V7S7! bank. ,N V7S7! +ife

,ns#rance is an o#tco$e of this partnership.

The +ion was here to address e%ery need it was sy$bol that ,ndian@s e5#ated

to inte"rity- tr#st and wealth.


36/98

,N V7S7!1

The core b#siness operations are

o ,ns#rance

o *ankin"

o !sset $ana"e$ent

,N V7S7! $#t#al f#nds 3started in :)))4 and is now one of

,ndia@s

+eadin" asset $ana"e$ent co$panies.

,N V7S7! +ife started in Septe$ber '((:

,N "ro#p ac5#ired V7S7! bank in '(('.

,N V7S7! bank pro%ides retail- wholesale- pri%ate bankin"

ser%ices.

ING VYSYA

B0,i,# Mutu0: 2u,d/ A//et M0,0#eme,t

I,/u-0,1e

Ret0i: /e-?i1e/


37/98

;.$:e/0:e /e-?i1e/

P-i?0te b0,i,# /e-?i1e/

,N V7S7! +ife ,ns#rance offers fle0ibility and choice to "o with e%ery sta"e of life.

ING VYSYA LIFe4%&&*

?o$$enced operations in Septe$ber '((: with 'Gbranches

,nitial ,n%est$ent Rs::(cr

Head 5#artered in *an "alore

,nitial shareholders were ,N- V7S7! *!NK- R ro#p.

!t ,N V7S7! +ife one thin" that they held in the hi"hest estee$ is h#$an life

itself.

This si$ple philosophy endows the$ with a de"ree of sensiti%ity and dedication

that they feel $akes the$ that $#ch $ore special to their c#sto$ers. Thisphilosophy s#pported well to achie%e best f#lfill$ent of c#sto$er needs in '((B.

ING VYSYA LIFE4%&&' DECEMBER

,n%ested B


38/98

EN! R6U21

,t is one of ,ndia@s leadin" financial ser%ice pro%iders rep#ted for its ability to percei%e the

tr#e potential of b#sinesses and enhance their %al#e. The c#lt#re at EN! "ro#p is deeply

rooted in Ethics- ,nno%ation and 8inancial sobriety

EM,/E ,N/USTR,ES +,,TE/1

,t is the $arket leader in both the a#to$oti%e and ,nd#strial se"$ents JEM,/E@ and

JS8 3standard 8#r#kawa4@- the fla"ship brands of the co$pany are also the leadin" battery

brands in the co#ntry.

U&!R!TH !*U&! ?EENTS +,,TE/1

,t is the third lar"est ce$ent co$pany in ,ndia.

,NV7S7! +,8EG6!+1

o To be in the top fi%e +ife ,ns#rance players in ,ndia.

With the abo%e ,N V7S7! +,8E has a lon" standin" relationship with its c#sto$ers and

deep #nderstandin" of the ,ndian $arket.

2ER86R!N?E ST!N/!R/S- R6+ES I RRES26NS,*,+,T,ES1

To allow internal $obility of e0istin" e$ployees and recr#itin" new

applicants into the co$pany ,N has set so$e perfor$ance standards.

2ER86R!N?E !N/ ?62ENS!T,6N REV,EW 2R6?ESS1

,$ple$ented fro$ &!NG:G '((C

=!nni%ersary Re%iew =replaces the e0istin" =!nn#al Re%iew>.

Re%iews for e%ery si0 $onths be"in fro$ :' $onths of ser%ice 3i.e. :'- :- '


39/98

!UT6!TE/ ?ENTR!+ 2ER86R!N?E !N!EENT S7STE1

,ndi%id#al perfor$ance re%iew is based on ten#re linked tar"et

achie%e$ents

New perfor$ance standards is based on classified ten#res

:stre%iew1 (GB $onths 3confir$ation re%iew4

'ndre%iew1 :' $onths 3co$pletion4

;rdre%iew1 : $onths 3co$pletion4


40/98

Establishin" $ana"in"

!cti%ity standards of the

Tea$ $e$bers

Trainin" need assess$ent and

Sched#le deli%ery

Retention of

prod#cti%e

!d%isors

/#e and ti$ely reco"nition

Ti$ely disb#rse$ent of co$$ission

and incenti%es

aintenance and #pdatin"

perfor$ance records

onthly tea$ $eetin"


41/98

MILESTONES FOR ING IN INDIA

7ear :))< ,N *earin"s NV 6ffers ,n%est$ents bankin"- corporate finance and

other financial 2rod#cts and ser%ices.

7ear :)CC ,N ,ns#ranceGrepresentati%e office.

7ear :))) ,N ,n%est$ent $ana"e$ent 3,ndia4 2%t. +td.1

2ro%ides $#t#al f#nd prod#cts to c#sto$er thro#"h ,N

Tr#st- Established in early :))).

/eli%ers on pro$ises 7ear '((( ,n" Vent#re *erin"s pri%ate

e5#ity

.

7ear '((: ,N V7S7! +ifeGla#nched in the $onth of

Septe$ber

7ear '((' ,N b#ys a


42/98

Treats ?#sto$er fairly

6ffers "ood 5#ality prod#cts I ser%ices

6ffers clarity in prices and conditions

?o$$#nicates openly and with o#t jar"on.

,s easy to deal with

!ccessible when needed

8le0ible sol#tions fittin" with c#sto$er needs

8riendly and carin".

UN/ERWR,T,N1

,t is the process by which applications for ,ns#rance are selected and are classified

accordin" to the le%el of risk that each one represents.

R,SK1

,s the possibility of ad%erse conse5#ences that $i"ht res#lt in loss of life.

NEE/ 86R UN/ERWR,T,N1

We need to $aintain e5#ity a$on" policyholders.

Keep with the $ortality ass#$ptions #sed for calc#latin" pre$i#$ rates.

Re$ain co$petiti%e.

2rotect the co$pany fro$ anti selection.

To offer co%er to a lar"e "ro#p of li%es.


43/98

REOU,REENTS 68 UN/ERWR,T,N1

!E 2R668S1

2re$i#$s are calc#lated on the life to be ass#reds@ a"e. Therefore a"e ad$ission by

the life to be ass#red is a precondition for the acceptance of any proposal of life ins#rance.

!E 2R668S

ST!N/!R/ !E 2R668S

N6N ST!N/!/ !E 2R668S

ST!N/!R/ !E 2R668S1

?ertified e0tract fro$ school or colle"e records.

?ertified ori"inal copies of school colle"e certificates.

?ertified e0tract fro$ the ser%ice re"ister in case of "o%ern$ent e$ployees.

/ate of birth certificate.

2assport

/ri%in" license.

2!N card

N6N ST!N/!R/ !E 2R668S1

Election ,/ card.

/ri%in" license iss#ed less than ' years prior to the date of proposal


44/98

Ration cardG,ss#ed ' years prior to the date of proposal

ES, card.

?+!SS,8,?!T,6N 68 UN/ERWR,T,N1

Non $edical

edical

8e$ale

St#dent life

8inancial.

NONMEDICAL UNDER;RITING1

O#alified 2eople eneral 2#blic

O#alification :(thstandard and abo%e

ini$#$ a"e at entry : years

a0i$#$ a"e at entry A( years

a0i$#$ s#$ #nder consideration for a"e :G;A :((((((.

;BG


45/98

E/,?!+ UN/ERWR,T,N1

S#$ #nder consideration is the total s#$ ass#red of all policies at ,N V7S7! +ife ,ns#rance

?o$pany +i$ited.

R6+ES RES26NS,*,+,T,ES !?T,V,T,ES

aintainin" a

Tea$

aintain $ini$#$ tea$

Si9e

aintain $ini$#$ tea$

?o$position

Recr#it$ent

,nd#ction and

+icensin"

ana"in" tea$

2rod#cti%ity

oal settin" for

Tea$ $e$bers

Establishin" $ana"in"

!cti%ity standards of the

Tea$ $e$bers

!cti%ity $ana"e$ent

Trainin" need assess$ent and

Sched#le deli%ery

Retention of

prod#cti%e

!d%isors

/#e and ti$ely reco"nition

Ti$ely disb#rse$ent of co$$ission

and incenti%es

aintenance and #pdatin"

perfor$ance records

onthly tea$ $eetin"


46/98

8E!+E UN/ERWR,T,N1

?ate"ory SelfGE$ployed8e$ale

Ho#se wife Widow life

S! +i$its Up to '.Alakhs3SU?4With o#t ,nco$eproof8or SU?P'.A+akhs,nco$e proof is

needed

a0i$#$ '.A+akhsWith o#t h#sband,ns#rancea0i$#$ :A+akhsH#sband ,ns#ranceis

needed

a0i$#$ ?o%erA+akhs

2lanRestrictions

2roof of earned,nco$e

T?8- ?ER2lans are notallowed

N,+

RidersRestrictions

Ter$W62N6

Ter$W62!re not "i%en

!ny other N,+ 2re"nant ho#se wifeWill not be offeredany co%er

No$inee can beSonda#"hter who is either a$inor or 8inancially/ependent on the +!

STU/ENT +,8E UN/ERWR,T,N1

/6?UENT1

?#rrent schoolcolle"e proof

inor life O#estionnaire andatory for a"e "ro#p (G:< years

2arent $#st be proposer.

other can be proposer.


47/98

+ife !ss#red can propose on self with parent inco$e details.

8,N!N?,!+ UN/ERWR,T,N1

!E T6T!+ R,SK ?6VER

:G;A

'( ti$es of "ross inco$e- B ti$es for ?,

;BG


48/98

N6NE/,?!+ 6R STR!,HT THR6UH 2R6?ESS1

2roposal acceptance

2olicy bond

*ond will reach c#sto$e

6RS 36THER REOU,REENTS E6S41

edical report s#b$ission

E0tra pre$i#$ will be paid

edical reports can be s#b$itted in $edical center

Report will be prepared

2roposal acceptance

2olicy bond

*ond will be "i%en to c#sto$er

8ree look period will be "i%en

ORGANISATION STRUCTURE

Re"istered office at *an "alore

Re"ional offices Q H7/ER!*!/

3,t will be #nder re"ional "eneral $ana"er I %ise president4

!rea ana"ers

Hyderabad Waran"al Tir#pathi Vijayawada Vi9a" #nt#r


49/98

*ee$a%ara$ #di%ada achilipatna$ Tan#k# El#r#

Vijayawada Tadepalli"#de$

ADVISOR RECRUITMENT AND TRAINING

!/V,S6R

OU!+,8,?!T,6N

A( H6UR TR!,N,N W,++ *E ,VEN Q ,NSUR!N?E ,NST,TUTE 68 ,N/,! !22R6VE/ TR!,N,N ?ENTRES

EM! ?6N/U?T,6N

RESU+T !NN6UN?EENT

/6?UENT SU*,SS,6N

?6/,N

!/V,S6R

?+U* E*ER

8,N!N?,!+ ?6NSU+T!NT


50/98

!/V,S6R 6WN *US,NESS 6THERS,N V7S7! +ife ,ns#rance ai$s at protectin" the predictable and Unpredictable e%ents.

2RE/,?T!*+E EVENTS1

Ho#se hold E0penses

Ed#cation

?hildren $arria"e

*#yin" an asset

Retire$ent

+ea%in" a +e"acy

UN2RE/,?T!*+E EVENTS1

/eath

Sickness

/isability

?ritical illness

,N V7S7! +ife ,ns#rance is pro%idin" the +ife $aker to assists yo# in b#ildin" a

co$plete financial plan for life by o#tlinin" the basic needs for life ,ns#rance.

2R6TE?T

S!VE

RET,RE

,NVEST


51/98

ING VYSYA LIFE INSURANCE PRODUCTS

TER 2+!NS

S!8!+ &EEV!N EN/6WENT 2+!N

?RE!T,N +,8E EN/6WENTG?hild protection plan

S!8!+ &EEV!N 6NE7 *!?K 2+!N

?RE!T,N +,8E ?hild protection $oney back plan.

NEW 8U+8,++,N +,8E !nticipated whole of life plan.

NEW 8REE/6 2+!NG Unit linked policy.

H,H +,8E 2+US G Unit +inked Re"#lar 2re$i#$.

*EST 7E!RS RET,REENT 2+!N.


52/98


53/98

ING VYSYA PRODUCTS9

TER 2+!NS

TER +,8E G ! 2R6TE?T,6N S6+UT,6N

ini$#$ a"e at entry :

a0i$#$ a"e at entry BA

2re$i#$ pay$ent Ter$ :( to ;( years.

ini$#$ 2re$i#$

Re"#lar 2re$i#$s

,n case of +i$ited 2re$i#$

3AGyear pay$ent ter$4

,n case of sin"le pre$i#$

RsB'


54/98

?6NOUER,N +,8EG?R,T,?!+ ,++NESS 2+!N


a0i$#$ a"e at entry A(

2re$i#$ payin" ter$ :( to 'A years

ini$#$ 2re$i#$

Half yearly

7early

:A((

'A((

/eath *enefit :(( SU !SSURE/

S#r%i%al interi$ A( of S#$ !ss#red on dia"nosis

6f critical illness to a $a0i$#$ of

'(lakhs

at#rity G

Riders !%ailable Ter$- !/*!///*.

EN/6WENT 2+!NS1


55/98

S!8!+ &EEV!N EN/6WENT 2+!N


a0i$#$ a"e at entry


56/98


a0i$#$ a"e at entry AA

2re$i#$ payin" ter$ :( to 'A years

ini$#$ 2re$i#$Half yearly7early

'(((

/eath *enefit :((SU !SSURE/ W!,VER 68 2RE,US3W624

S#r%i%al interi$ G

at#rity :(( S! ?R* T*.

Riders !%ailable !/*!///* and W62.

RE!SSUR,N +,8E EN/6WENT 2+!N


57/98

ini$#$ a"e at entry (

a0i$#$ a"e at entry B(

2re$i#$ payin" ter$ :( to ;( years


'(((


58/98

ini$#$ a"e at entry :'

a0i$#$ a"e at entry A(

2re$i#$ payin" ter$ :A- '(- 'A years


'(((


59/98


a0i$#$ a"e at entry


60/98

a0i$#$ a"e at entry Ais the b#yin"- sellin"- and $arketin" cycle defined as the preG and postGeffects of that #ni5#e

sale.

The transaction itself holds a key position as the h#b of co$$erce. Each sale is identified and

handled separately as a #ni5#e transaction e0perience. Each ti$e a si"nat#re is pro%ided by the

b#yer- and a sale is cons#$$ated by the b#yin" or"ani9ation- a sin"le transaction has

occ#rred- b#t the transaction e0perience $ay only be half way o%er.

,NSUR!N?E S!+ES 2R6?ESS1

This co#rse describes the i$portance of personal sellin" for ins#rance co$panies and the steps

incl#ded in the ins#rance sales process. ,t also describes the beha%iors that c#sto$ers e0hibit

when $akin" p#rchase decisions and the steps in the p#rchase decision process. 6ther

i$portant topics described in this co#rse incl#de $ethods of identifyin"- contactin"- and5#alifyin" prospecti%e c#sto$ers- and the ways in which ins#rance prod#cers "ather

infor$ation- analy9e c#sto$er needs- and prepare proposals to $eet those needs.

Usin" The New ,ns#rance Sales 2rocess 1
http://www.answers.com/topic/confidence-trickhttp://www.answers.com/topic/confidence-trick


73/98

Now with ' years e0perience of the 8S! ,ns#rance re"#lation we ha%e #ndertaken a total

re%iew of the ,ns#rance Sales process in Ho$e *#yer.

Whilst the ori"inal process has ser%ed o#r c#sto$ers well and let@s re$e$ber that Ho$e

*#yer is the only syste$ that pro%ides an ,ns#rance Sales syste$- it was ti$e to re%iew it. !s

sho#ld be apparent to all of o#r c#sto$ers- we are constantly lookin" to add facilities yo# want

or need and spend a lot of ti$e with c#sto$ers findin" o#t what we need to do.

,n re%iewin" the ins#rance sales process we ha%e worked with $any c#sto$ers who ha%e

considerable e0perience in ins#rance sales. There are too $any to $ention b#t we are %ery

"ratef#l to each and e%eryone. This %ery $#ch typifies the spirit that Ho$e *#yer c#sto$ers

ha%e en"endered- of all wantin" to $ake contrib#tions that better the syste$ for the "ood ofthe$sel%es and e%eryone else #sin" it.

We belie%e that the new %ersion that we now present to yo# represents a $ajor i$pro%e$ent

and will $ake this process $#ch 5#icker as well as pro%idin" a better presentation to yo#r

c#sto$ers.

! #ide to Usin" the ,ns#rance Sales 2rocess 1

The ,ns#rance sales process p#lls in all the rele%ant details fro$ the 8act find so that when yo#

arri%e yo# already ha%e the infor$ation yo# will need.

The process is di%ed into < sta"es1

: :. !ffordability

: '. /e$ands

: ;. Needs

:


74/98

:. !ffordability

When yo# arri%e at the ins#rance screen the total =onthly /isposable ,nco$e> the

c#sto$er has will be displayed.

onthly /isposable ,nco$e

preGcalc#lated fro$ 8act find

,np#t the a$o#nt of disposable inco$e that can be #sed

!$o#nt +eft to spend will red#ce when prod#ct sale a"reed the syste$ then re5#ires that yo#

ask the c#sto$er how $#ch of this they can afford to spend on protectin" the$sel%es and their

ho$e. The fi"#re is entered in the field $arked =How #ch can yo# afford to spend on

,ns#rance 2re$i#$s.

'. /e$ands

The de$ands section will ha%e calc#lated fi"#res that show ideally the le%el of co%er

the c#sto$er needs for each of the risks they and there ho$e are potentially liable to.

,f yo# click the li"ht bl#e b#tton on any of the different protection types a window will

open that shows yo# how the fi"#res ha%e been calc#lated. ,t also allows yo# to enter

additional infor$ation.

;. Needs

The Needs section allows yo# to record whether yo#r c#sto$er intends to follow yo#r

reco$$endation or not.

,f they do it $i"ht be that they a"ree with takin" o#t protection for that risk b#t not at the

le%el yo# ha%e ad%ised. The syste$ reco"ni9es this and yo# can record the le%el of co%er

the c#sto$er wants. The c#sto$er $i"ht also decide they do not want or cannot afford the

co%er and this is catered for too.


75/98

6nce it has been decided that the c#sto$er is "oin" to be takin" o#t ins#rance then in

Section < yo# can so#rce it. To do this click on the rele%ant so#rcin" b#tton in the section

titled =,ns#rance O#ote>.

When yo# ha%e selected the prod#ct that yo# are "oin" to be reco$$endin" yo# click the

=!dd 2olicy> b#tton.

When yo# do yo# will "et the followin" screen- which allows yo# to enter the details of

the reco$$ended policy. 6nce yo# ha%e added the$- click on the S#itability Tab and add

yo#r co$$ents to yo#r c#sto$er that e0plain why this prod#ct is s#itable for the$. !"ain

as in the =Needs> section yo# can sa%e yo#r para"raphs. 2lease see that section for

instr#ctions on how to do it.Then yo# do the sa$e for !ffordability- which has been calc#lated in section : for yo# to

check. Then if the policy has any E0cl#sions or conditions on clai$s yo# sho#ld enter

the$ in the =E0cl#sion and ?lai$s> section.

7o# then click the =?ontin#e> b#tton when this section is co$pleted. The policy will then

be record as shown below.

To "o back into the details yo# do#ble click on the co$pany na$e and it will brin" the

window #p for yo#.

7o# now "o on and repeat this for all the prod#cts that the c#sto$er is "oin" to effect.


76/98

CHAPTER4(DA"A !"P#&"A"$!


77/98

:. !nalysis based on those who are #sin" ,ns#rance policy of ,N

TABLE4*

Sl.No Response Respondents 2ercenta"e

:. 7es A


78/98

'. !nalysis based on awareness of ,N Vysya +ife ,ns#rance ?o$pany

TABLE4%


:. 7es


79/98

;. !nalysis based on so#rce of awareness abo#t ,N Vysya +ife ,ns#rance?o$pany

TABLE46


:. 8riends 'A ''.C;

'. !"ents ;A ;:.:

;. Relati%es 'A ''.C;


80/98

TABLE4)


:.Traditional3+on" ter$4

BC B(.):

'.odern

3Short ter$4


81/98

TABLE4(


:. :(-((( A'


82/98


:. onthly ;( 'C.'C

'. O#arterly '( :.:

;.HalfGyearly

'A ''.C;


83/98

C. !nalysis based on $ethod of pay$ent

TABLE4C


:. ?ash


84/98

Each and e%ery person didn@t #se credit cards and che5#e books.

. !nalysis based on the interest of people to takin" children plan of ,N Vysya+ife ,ns#rance

TABLE4'


:. 7es C' BA.


85/98

The life ins#rance plan e%en it is %ery #se f#ll to children@s also $a0i$#$ respondents

are #sin" for their children@s.

). !nalysis based on interest of people in takin" retire$ent plans of ,N Vysya+ife ,ns#rance

TABLE4


:. 7es


86/98

The retire$ent plan e%en it is %ery #se f#ll to retired peoples also the $a0i$#$

respondents are not #sin" beca#se the $any co$petitors are offerin" so$e $ore

benefits to this plan. So it is necessary to attract the retired people.

:(. !nalysis based on kinds of policies which wo#ld people prefers to take

TABLE4*&


:. ?hildren 2lan


87/98

The n#$ber of people prefers the children@s plan beca#se it has $ore ret#rns and

benefits and also it is a lon" ter$ plan.

:: !nalysis based on the s#$ of a$o#nt yo# are ready to in%est for childins#rance

TABLE4**


:. :(-(((G'(-((( A;


88/98

To in%est '((((G;(((( for their child- ''.C; of c#sto$ers are interested to in%est ;((((G


89/98

6#t of ::( c#sto$ers- AC.'C of c#sto$ers ha%e taken one policy- '( of

c#sto$ers ha%e taken two policies- :;.B


90/98

!N!+7S,S I ,NTER2RET!T,6N1

6#t of ::( c#sto$ers-


91/98

FINDINGS

The findin"s of the st#dy are

ost of the people are interested to ins#re policies b#t they are not aware of ins#rance

policies.

ost of the people were not yet ins#red any plans.

ost of the clients were not aware of ,N V7S7! +,8E ,NSUR!N?E.

!d%ertisin" re"ardin" ,N V7S7! is not #p to the $ark.

?#sto$ers are not so interested in takin" Short ter$ plans and $any of the$ are

interested in takin" Traditional plans.

?#sto$ers ins#red '((((G and ;((((G plans were less to that of the :((((G plans.

+ar"e no. of c#sto$ers prefer yearly $ode of pay$ent.

ost of the c#sto$ers are not interested in takin" ?hildren plans.

?#sto$ers who ins#red : lakh plan are lar"e in n#$ber to that of the ' lakh and ; lakh

policy holders.


92/98

ost of the c#sto$ers are not interested to prefer Retire$ent plans.

SUGGESTIONS

,N Vysya +ife ,ns#rance ?o$pany has to i$ple$ent children policies. So that in

lon" ter$ it will "i%e $ore benefits which is less of risk.

,N Vysya +ife ,ns#rance ?o$pany sho#ld take the $eas#res of awareness thro#"h

ad%ertise$ents and news papers etc.-

,N Vysya +ife ,ns#rance ?o$pany pro%ides proper trainin" in sellin" pro$otin"

ins#rance b#siness.

,N Vysya +ife ?o$pany $#st ha%e to "i%e the $ore i$portance to the ,ns#rance

plans which are in yearly $ode of pay$ent.

,N Vysya +ife ?o$pany has to brin" awareness in the people re"ardin" ,ns#rance.

,N Vysya +ife ?o$pany has $#st introd#ce $ore +on" ter$ plans.


93/98

CONCLUSION

The co$pany can foc#s on $arketin" on pro$otional acti%ities to brin" in $ore

c#sto$ers. ,t sho#ld keep the consistency and transparency in its $ana"e$ent and it $ay

contin#e to "i%e the best res#lt keepin" in $ind the c#sto$ers objecti%e in $akin" their

in%est$ent.

ost of the c#sto$ers are satisfied with the ret#rn obtained thro#"h life ins#rance.

,N V7S7! +ife ,ns#rance offers fle0ibility and choice to "o with e%ery sta"e of life. ,N

Vysya +ife ,ns#rance ?o$pany has attained "ood awareness thro#"h $edia ad%ertise$ents.


94/98

ANN!U"

#

BIB$I%&"A'


95/98


96/98

B. Which $ethod of pay$ent do yo# preferF

a4 ?ash b4 ?redit card c4 ?he5#e

C. How $#ch oney yo# are payin" to yo#r prod#ct in ,N Vysya +ife ,ns#rance?o$panyF

a4 :(-((( b4 '(-((( c4 ;(-((( d4 $ore than


97/98

BIBLIOGRAPHY

B$$/ 0,d 0ut.$-/9

P-i,1i


98/98

*! @@@!#$$#:e!1$m

%! @@@!i,#?y/y0:i2e!1$m

6! @@@!i,/u-0,1e!i,di0!1$m

4. www.irdaindia.com

5. www.wikipedia.com

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