Sanjay Kumar Semifinal 2 - Copy - Copy

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A SUMMER TRAINING REPORT

ON

³STUDY OF LIFE INSURANCE POLICIES AND

INVESTMENT STRATEGIES IN AVIVA LIFE INSURANCECOMPANY INDIA LIMITED´

AT

SUBMITTED IN THE PARTIAL FULLFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSSINESS ADMINISTRATION

International School of Informatics and Management

`

Submitted By: - Submitted to:-

SANJAY KUMAR Dr.MANJU NAIR

MBA III Semester



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P EF CE

Summer training in any organization is an attempt to provide student a practical

input & Exposure to the real world situation in which he has to work in future.

My training in, AVIVA Lif In anc In ia L . Jaipur was an attempt in

this regard. The project work provided to me was ³ST L E SURANCE

L CIES AND INVEST ENT STRATE IES IN AVIVA LIFE INSURANCE

COMPANY INDIA LIMITED´.

AVIVA Lif In anc In ia L is today one of the most competitive &

profitable franchise in India as can be clearly depicted by the analysis of its portfolio

of insurance services..

The report has been prepaid and is presented under various heading as

introduction, organization profile, research objective & scope of research project

etc.



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ACKNOWLEDGEMENT

I would like to thank AVIVA Life Insurance India Ltd. for providing me with this unique

opportunity to explore my academic interests in the field of Marketing & Sales.

It has been a highly enriching experience to do my Internship at AVIVA Life Insurance India

Ltd., during the summers of 2010. It has been possible to achieve the perfect blend of the

valuable experience gained from the work place and the indispensable knowledge gathered

from there. My initial days at AVIVA Life Insurance India Ltd., has given me a new

experience in life. The corporate culture was all new to me.

I wish to thank my Industry Guide Deepak sharma Sales Manager AVIVA Life Insurance

India Ltd. for giving me this chance to work on this project and extending all support to

me during my internship. With his persistent guidance, motivation and

encouragement in all my ventures I could successfully complete my project.

I would like to express my sincere gratitude towards my faculty guide

for guiding me throughout the project and providing me constant moral support & invaluable

feedback.

I would also like to thank entire team of AVIVALifeInsuranceIndiaLtd. who have been a

pillar of support for me.

Signature (Student)



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OBJECTIVE

I had made some extensive objectives for my study which are as listed below.

1. To determine the current status of the Aviva Life Insurance Company.

2. To find out the customers response towards Aviva Life Insurance Company.

3. To study the satisfaction level of customers in different attributes of Aviva Life InsuranceCompany.



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TABLE OF CONTENTS

Chapters

1. COMPANY PROFILE

Page No.

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2. OVERVIEW OF INSURANCE HISTORY 24

3. RESEARCH METHODOLOGY 55

4. DATA ANALYSIS 62

5. FINDINGS 79

6. RECOMMENDATIONS AND SUGGESTION 83

7. LIMITATION 86

8. CONCLUSION 88

9. GLAOSSARY 90

10. BIBLIOGRAPHY 96

11. ANNEXURE 98



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CCOOMMPPAANNYY PPR R OOFFIILLEE

Aviva is UK¶s largest and the world¶s fifth largest insurance Group. It is one of the leading

providers of life and pensions products to Europe and has substantial businesses elsewhere

around the world. With a history dating back to 1696, Aviva has a 35 million-customer base

worldwide. It has more than £332 billion of assets under management.

In India, Aviva has a long history dating back to 1834. At the time of nationalisation it was the

largest foreign insurer in India in terms of the compensation paid by the Government of India.

Aviva was also the first foreign insurance company in India to set up its representative office

in 1995.

In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of

companies. A professionally managed company, Dabur is the country's leading producer of

traditional healthcare products.

In accordance with the government regulations Aviva holds a 26 per cent stake in the joint

venture and the Dabur group holds the balance 74 per cent share.

With a strong sales force of over 12,000 Financial Planning Advisers (FPAs), Aviva has

initiated an innovative and differentiated sales approach to the business. Through the

³Financial Health Check´ (FHC) Aviva¶s sales force has been able to establish its credibility

in the market. The FHC is a free service administered by the FPAs for a need-based analysis

of the customer¶s long-term savings and insurance needs. Depending on the life stage and



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earnings of the customer, the FHC assesses and recommends the right insurance product for

them.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise

in Bancassurance successfully in India. Currently, Aviva has Bancassurance tie-ups with ABN

Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi

Vilas Bank Ltd. and Punjab & Sind Bank, 15 Co-operative Banks in Gujarat, Rajasthan,

Jammu & Kashmir, Bihar, West Bengal and Maharashtra and one regional Bank in Sikkim.

When Aviva entered the market, most companies were offering traditional life products. Aviva

started by offering the more modern Unit Linked and Unitised With Profit products to the

customers, creating a unique differentiation. Aviva¶s products have been designed in a manner

to provide customers flexibility, transparency and value for money. It has been among the first

companies to introduce the more modern Unit Linked Products in the market. Its products

include: whole life (Life Long), endowment (Life Saver, Easy Life Plus), and child policy

(Young Achiever) single premium (Life Bond and Life Bond Plus), Pension (Pension Plus),

Term (Life Shield), fixed term protection plan (Freedom Life Plan) and a tax efficient

investment plan with limited premium payment term (LifeBond5). Aviva products are modern

and contemporary unitised products that offer unique customer benefits like flexibility to

chose cover levels, indexation and partial withdrawals.

Aviva¶s Fund management operation is one of its key differentiators. Operating from Mumbai,

Aviva has an experienced team of fund managers and the range of fund options includes



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Unitised With-Profits Fund and four Unit Linked funds: - Protector Fund, Secure Fund,

Balanced Fund and Growth Fund.

Aviva has 112 Branches in India (including rural branches) supporting its distribution

network. Through its Bancassurance partner locations, Aviva products are available in 378

towns and cities across India.

Aviva is also keen to reach out to the underprivileged that have not had access to insurance so

far. Through its association with Basix (a micro financial institution) and other NGOs, it has

been able to reach the weaker sections of the society and provide life insurance to them.

For three consecutive years in 2007, 2008 and 2009, Aviva has had relatively high scores on

the parameters of Credibility, Respect, Fairness, Pride and Camaraderie in the survey

administered by Grow Talent Company Ltd. along with Great Places to Work® Institute, Inc.

and Business World magazine.



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WHO IS AVIVA

DABUR

A professionally managed company, it is the country's leading producer of Founded in 1884,

Dabur is one of India's oldest and largest group of companies with consolidated

annual turnover in excess of Rs 1,899 crores. Traditional healthcare products.

AVIVA

Aviva is UK¶s largest and the world¶s fifth largest insurance Group. It is one of the leading

providers of life and pensions products to Europe and has substantial businesses elsewhere

around the world. With a history dating back to 1696, Aviva has a 35 million-customer base

worldwide. It has more than £332 billion of assets under management.

VISION

Aviva - where exceeding expectations through innovative solutions is "the" way of life This is

the compelling vision that Aviva India has created through the active contribution of its

employees. These lines not only define the way we live and work but also serve as a reminder

to deliver the best to our customers, shareholders, colleagues, partners & employees at all

times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for

winning, Innovation and Empowered team that we have collectively defined and committed to

working towards.



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PARTNERS

Aviva is committed to helping our customers get 'Kal par Control' and make the most out of

their lives. It is the constant endeavour to ensure that our customers have easy access to Aviva

products and services at all times.

Aviva has pioneered bancassurance in the country through its tie-ups with 22 leading private

and nationalised Banks in the country. Aviva also focuses on bancassurance worldwide and

has a proven track record of successful bancassurance relationships. It has 40 major



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partnerships with leading banks across the globe. Aviva is a leading bancassurer in countries

such as France, Italy, Spain, Australia and New Zealand.

ABN AMRO Bank

ABN AMRO is a prominent international bank with European roots and a clear focus on

consumer and commercial banking gaining a competitive edge on the chosen markets and

client segments. ABN AMRO Bank (India) ventured into the Indian market in 1920 primarily

to finance the diamond trading business and evolved by mid 1990¶s into a fastest growing

retail bank and a well-respected wholesale bank.

The Bank is recognized as one of the most successful consumer banking outfits in the county,

known for its innovation and aggression. ABN India consumer banking pioneered the

distribution of third party financial products like mutual funds, bonds and life insurance.

Aviva's relationship with ABN India commenced in June 2002 under which the bank

introduces its customers to Aviva for insurance and provides access to its affluent customer

base across the country through its operations in 21 branches at 14 locations.



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American Express Bank

American Express Company is a diversified worldwide travel and financial services company

founded in 1850. It is the world¶s largest single card issuer, based on purchase volume

generated of nearly 55 million cards worldwide. Present in India since 1921, American

Express provides high quality travel related and financial services in India.

Aviva Life Insurance entered into a strategic alliance with American Express for distribution

of Life Insurance in June 2002 to offer top-of the line saving-cum-protection plans to Amex

bank and card customers.

Aviva offers tailor-made investment solutions to the high net worth clients of the Wealth

Management channel. The retail card segment is being tapped through outbound calling to the

Amex cardholders. The American Express Inbound call center also pitches Aviva products to

its callers.

The Lakshmi Vilas Bank Ltd

The Lakshmi Vilas Bank Ltd, based out of Karur, is among the top private banks in India. It

has 221 branches with a customer base of 1.2 million, across 10 states. Currently Aviva

products are sold across 204 branches of LVB.



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Canara Bank

C B i one of t e l est ret il banks in India wit 2,513 branches spread across 25

States and 4 Union Terr itor ies. The customer base of Canara Bank exceeds 27 million. With a

net prof it of INR 1110 Crores, deposits of over INR 96,908 Crores, 47389 employees for the

year ending Mar 2009, Canara Bank is truly a Bank to be reckoned with for the sheer

magnitude of coverage it offers its clients. Canara Bank has tied up with Aviva as a Corporate

Agent for its Life Insurance Products. Aviva products are currently offered in 1030 Canara

Bank branches in 103 Cities.

Punjab & Sind Bank

Pun jab & Sind Bank was established in the year 1908. Based on the pr inci ples of social

commitment to the people, hel p the farmers, and the weaker sections of the society to raise

their standard of living and play a signif icant role in the development of the country. Even

af ter 96 years of its inception, Pun jab & Sind Bank stands committed to honor the high ideals

of its founding fathers. Pun jab and Sindh Bank has a network of 759 branches and 132

extension counters all over the country with close to 9,765 employees. 42 per cent of its

branches are in the rural and semi urban areas.

In line with spir it of li beralisation the Bank has laid special emphasis on International bank ing,



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R ural Development Division,High



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Tech Agricultural Branches, Specialised Locker Branches, Industrial Finance and SSI

branches, besides Housing Finance Branch for the convenience of its customers.

Centurion Bank of Punjab

Centurion Bank of Punjab is a new generation private sector bank offering a wide spectrum of

retail and corporate banking products and services. It holds leadership positions in retail two-

wheeler loans and commercial vehicle loans. It has been among the earliest banks to offer a

technology-enabled customer interface that provides easy access and superior customer

service.

RBI has approved the merger between Centurion Bank and Bank of Punjab effective from

October 1st, 2005. The merged entity, named Centurion Bank of Punjab, has a strong

nationwide franchise of 241 branches and extension counters and 389 ATMs. With strengths

in the retail, SME and agriculture businesses the bank is well poised to capture the

opportunities that exist in the Indian market. The combined bank¶s 3,500 employees will

continue to provide support and an enhanced banking experience to our customers, as part of a

bigger, stronger bank. ³Aviva¶s key strength is its fund management capabilities with an

experience of 30 years in money management.´

EQUITY

The much-awaited correction finally materialised in the quarter ended June 2006. The BSE

Sensex, which peaked at 12612 levels on 10th May 2006, has corrected to around 10000

levels. After three years of sustained Bull Run, the recent correction has been a timely

reminder that the markets, in the short term, may see downsides too. Compared to the rise in



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the market, the downtrend has not been very large though it has been quicker than

expectations. Even post this 20% or so correction from its peak, the Sensex is up 12.9% year

to date. This much-needed correction has weeded out some of the euphoria and the focus on

value is back. Does this correction reflect any change in the key fundamentals of India? We

do not think so. The three-year rally was in the first place due to appreciation of India¶s

sustainable growth story. The second reason was an improvement in the global liquidity as

investor¶s appetite for risk iSriganganagareased. The India growth story remains intact and

the GDP growth in the last few quarters is an evidence of this. We expect GDP to grow by

over 7% on a sustainable basis and hence India would continue to be an attractive

investment destination. The major reason for the correction has been liquidity moving out of

the markets. This has been caused by fall in the commodity prices from their peak, rising

global interest rates and high crude prices causing worries about inflation and a global

meltdown. With the tightening of global liquidity and reduced risk appetite of investors,

there have been outflows from emerging markets including India. Secondly, valuations in

India were among the highest in emerging markets and hence witnessed a greater

compression. One of the major fears globally is that of a slowing economy in the US

and China. India is highly resilient to global meltdowns as private consumption accounts

for 62% of our GDP and exports account for only

12% of GDP. With a favourable demographic profile- iSriganganagareasing working

population and improved disposable income in the hands of the consumer, this resilience

will only improve. This coupled with superior growth and demographics will drive flows back

to India in the long term. In the short term, the markets could continue to witness volatility as

the direction would be determined by global liquidity, progress of monsoons and the

quarterly results for June

2006. We believe, for the long-term investor, this correction would provide a good opportunity



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be moderate with stock returns tracking earnings growth.

FIXED INCOME

Is virtuous cycle turning vicious? Inflation has touched one year high of 5.44%, and INR has

touched 2 year low of 46.04. Aligning with these movements, yield on benchmark 10 year

Government Bond also went up to a four year high of 8.10%. The latest balance of payments

numbers for 2005-06 show an overall balance of $15 bn, helped by a less-than-expected deficit

on the current account ($10.6 bn). This was essentially due to strong invisibles (private

remittance and net software exports) providing cover for a trade deficit, which was itself

moderated by a strong 28% y-o-y growth in exports. Net inflows on the capital account stood

at $24.7 bn with $5.7 bn coming from net FDI and $12.5 bn being accounted for by portfolio

inflows. Though headline inflation recently has picked up with prices of food and non food

articles in the µprimary goods¶ category rising, the government has taken short-term measures

in the form of liberalizing imports of wheat and sugar and banning exports of pulses in order

to ease the supply situation. Core inflation, that is, excluding the more volatile primary and

fuel categories, has picked up a bit in comparison to last year. However it is expected to

remain in a manageable range. RBI seems committed to containing inflation and would thus

act accordingly. Recently, RBI chose to iSriganganagarease rates to manage inflationary

expectations and in response to various central banks hiking rates globally. This has led to a

few banks raising lending rates in addition to getting reflected in the money and bond

markets. GDP growth for 2007-08 came in at a better than expected 8.4%, propped up

by improved agriculture performance. For 2008-09 also, despite inflationary pressures, the

GDP is expected to grow at over 7%. Going forward, monetary tightness will weigh on the

interest rate outlook



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OVERVIEW OF INSURANCE HISTORY

Origin of Insurance In India

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the

caravan trade by giving loans that had to be later repaid with interest when the goods arrived

safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice that, perhaps,

was how insurance made its beginning.

Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would

meet the funeral expenses of its members as well as help survivors by making some payments.

As European civilization progressed, its social institutions and welfare practices also got more

and more refined. With the discovery of new lands, sea routes and the consequent growth in

trade, Medieval guilds took it upon themselves to protect their member traders from loss on

account of fire, shipwrecks and the like.

Since most of the trade took place by sea, there was also the fear of pirates. So these guilds

even offered ransom for members held captive by pirates. Burial expenses and support in

times of sickness and poverty were other services offered. Essentially, all these revolved

around the concept of insurance or risk coverage. That's how old these concepts are, really.



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contract and decided to accept mar ine insurance as a practice.

T f irst step...

Insurance as we know it today owes its existence to 17th century England. In fact, it began

tak ing shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,

where merchants, shi p-owners and underwr iters met to discuss and transact business. By the

end of the 18th century, Lloyd's had brewed enough business to become one of the f irst

modern insurance companies.

Insurance and Myth...

Back to the 17th century. In 1693, astronomer Edmond Halley constructed the f irst mor tality

table to provide a link between the life insurance premium and the average life spans based on

statistical laws of mor tality and compound interest. In 1756, Joseph Dodson reworked the

table, link ing premium rate to age.

Enter companies...

The f irst stock companies to get into the business of insurance were char tered in England in

1720. The year 1735 saw the bir th of the f irst insurance company in the Amer ican colonies in

Char leston, SC. In 1759, the Presbyter ian Synod of Philadel phia sponsored the f irst life

insurance corporation in Amer ica for the benef it of ministers and their dependents. However,

it was af ter 1840 that life insurance really took off in a big way. The tr igger : reducing

opposition from religious groups.

The growing years...

The 19th century saw huge developments in the f ield of insurance, with newer products being

devised to meet the growing needs of urbani ation and industr iali ation. In 1835, the infamous



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years later, Massachusetts became the f irst state to require companies by law to maintain such

reserves. The great Chicago f ire of 1871 fur ther emphasi ed how f ires can cause huge losses

in densely populated modern cities. The practice of reinsurance, wherein the r isks are spread

among several companies, was devised specif ically for such situations.

There were more offshoots of the process of industr iali ation. In 1897, the Br itish government

passed the Workmen's Compensation Act, which made it mandatory for a company to insure

its employees against industr ial accidents.With the advent of the automobile, public liability

insurance, which f irst made its appearance in the 1880s, gained impor tance and acceptance.

In the 19th century, many societies were founded to insure the life and health of their

members, while fraternal orders provided low-cost, members-only insurance.

Even today, such fraternal orders continue to provide insurance coverage to members as do

most labour organi ations. Many employers sponsor group insurance policies for their

employees, providing not just life insurance, but sickness and accident benef its and old-age

pensions. Employees contr i bute a cer tain percentage of the premium for these policies.

In India««.

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of

Life Insurance Corporation of India's corporate headquar ters, is der ived from the Rig Veda.

The term suggests that a form of "community insurance" was prevalent around 1000 BC and

practised by the Aryans.Bur ial societies of the k ind found in ancient R ome were formed in the



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Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in

1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-

90s. It was during the swadeshi movement in the early 20th century that insurance witnessed a

big boom in India with several more companies being set up.

1950s, there were around 170 insurance companies and 80 provident fund societies in the

country's life insurance scene. However, in the absence of regulatory systems, scams and

irregularities were almost a way of life at most of these companies.

As a result, the government decided nationalise the life assurance business in India. The Life

Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For

years thereafter, insurance remained a monopoly of the public sector. It was only after seven

years of deliberation and debate - after the RN Malhotra Committee report of 1994 became the

first serious document calling for the re-opening up of the insurance sector to private players --

that the sector was finally opened up to private players in 2001.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator set

up in 2000, has extensive powers to oversee the insurance business and regulate in a manner



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that will safeguard the interests of the insured.

MMeeaanniinngg oof f iinnssuurraannccee::

Insurance may be described as a social device to reduce or eliminate risk of loss to life and

property. Insurance is a collective bearing of risk. Insurance spreads the risks and losses of few

people among a large number of people as people prefer small fixed liability instead of big

uncertain and changing liability. Insurance is a scheme of economic cooperation by which

members of the community share the unavoidable risks.

Insurance can be defined as a legal contract between two parties whereby one party called

insurer undertakes to pay a fixed amount of money on the happening of a particular event,

which may be certain or uncertain. The other party called insured pays in exchange a fixed

sum known as premium. The insurer and the insured are also known as Assured, or

Underwriter, and Assured, respectively. The document which embodies the contract is called

the policy.

i) Principal of utmost good faith: It means maximum truth. All material information

regarding the subject matter of insurance should be disclosed by both the parties- the

insurer and the insured. This duty of full disclosure rests more heavily on the insured than

the insurer. The insurer has a right to avoid the contract if the insured fails to make the full

disclosure.

ii) Principle of indemnity: This means that if the insured suffers a loss against which the

policy has been made, he shall be fully indemnified only to the extent of loss. In other



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iii) Doctrine of subrogation: This means the insurer has the right to stand in the place of the

insured after settlement of claims in so far as the insured right of recovery from an

alternative source is involved. The purposes of subrogation are to hold the negligent third

party any loss payments made to the insured. The purposes of subrogation are to hold the

negligent persons responsible for the loss and prevent the insured from collecting twice for

the same loss,

iv) Principle of cause proxima: The cause of loss must be direct and an insured one in order

to claim for compensation.

v) Principle of insurable interest: The life or property insured. Insurable interest is that

interest which considerably alters the position of the assured in the event of loss taking

place and if the event does not take place, he remains in the same old position. One who

has to lose as a result of loss may be said to have insurable interest in the life or property

insured. If this principle is absent, the insurance contract degenerates into a wagering

contract. It is taken as given that an individual has insurable interest in his\her own life or

property. Cases where no proof of insurable interest is required are that of a husband¶s

interest in his wife¶s life and wife¶s interest in her husband¶s life. In cases of business and

family relationships, proof of insurable interest is required.

Types of insurance contract

Z Life insurance

Z General insurance



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WHAT IS LIFE INSURANCE?

Life insurance is a contract for payment of money to the person assured (or to the person

entitled to receive the same) on the occurrence of the event insured against.

Usually the contract provides for ±

Payment of an amount on the date of maturity or at specified periodic intervals or at death, if it

occurs earlier.

Periodical payment of insurance premium by the assured, to the corporation who provides the

insurance.

Who can buy a life insurance policy?

Any person above 18 years of age, who is eligible to enter into a valid contract,

Subject to certain conditions, a policy can be taken on the life of a spouse or children.

What is a whole life policy ?

When most people think of life insurance, they think of a traditional whole life policy. These

are the simplest policies to understand: You pay a fixed premium every year based on your

age and other factors, you earn interest on the policy's cash value as the years roll by, and your

beneficiaries get a fixed benefit after you die.



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insurance policies are valuable because they provide permanent protection and accumulate

cash values that can be used for emergencies or to meet specific objectives. The surrender

value gives you an extra source of retirement money if you need it.

What is Endowment policy?

Unlike whole life, an endowment life insurance policy is designed primarily to provide a

living benefit and only secondarily to provide life insurance protection. Therefore, it is more

of an investment than a whole life policy. Endowment life insurance pays the face value of the

policy either at the insured's death or at a certain age or after a number of years of premium

payment.

Endowment life insurance is a method of accumulating capital for a specific purpose and

protecting this savings program against the saver's premature death. Many investors use

endowment life insurance to fund anticipated financial needs, such as college education or

retirement. Premium for an endowment life policy is much higher than those for a whole life

policy.

What is a Money back policy?



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This is basically an endowment policy for which a part of the sum assured is paid to the

policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The

risk cover on the life continues for the full sum assured even after payment of survival benefits

and bonus is also calculated on the full sum assured. If the policyholder survives till the end of

the policy term, the survival benefits are deducted from the maturity value.

SCOPE OF LIFE INSURANCE

Why do one need life insurance policy

Life insurance is designed to protect you and your family against financial uncertainties that

may result due to unfortunate demise or illness. You can also view it as a comprehensive

financial instrument ± as a part of your financial planning offering you savings & investment

facilities along with cover against financial loss. By choosing the right policy as per your

needs i.e. customized solutions, you will be able to plan for a secure future for yourself and

your loved ones.

Choosing the right plan

Identifying the right plan basis your needs is the first crucial step towards insurance planning.

At aviva we help you through this decision by identifying your various needs and offering

plans that are customized for you. You may also choose a plan for yourself by

identifying the life stage you are at.



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Analyzing Needs

The following needs of one person can be fulf illed by insurance:-

Protection

Need for a sound income protection in case of your unfor tunate demise

Investment

Need to ensure long-term real growth of your money

Saving

Save for the milestones and protect your savings too

Pension

Need to save for a comfor table life post retirement

Once you have analyzed your needs as per above classif ication, you need to then ascer tain

impor tant factors such as type of cover, insurance amount as per one's income, life stage and

dependents

Objective Of Life Insurance1. To spread life insurance and provide life insurance protection to the masses at

reasonable cost.

2. To mobilize peoples savings through insurance-linked savings schemes.

3. To invest the funds to serve the best interests of both the policy holders and the nation.

4. To conduct business with maximum economy, always remember ing that the money

belongs to the policy holders.

5. To act as trustees of the policy holders and protect their individual and collective

interests.



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GENERAL INSURANCE

General (non-life) insurance provides a shor t-term coverage, usually for a per iod of one

year. General insurers transact f ire insurance, motor insurance, mar ine insurance, and

miscellaneous insurance business. Among these categor ies f ire and motor insurance

business are predominant. Motor vehicle insurance is compulsory in India and the motor

insurance industry. Moreover, motor insurance due to third par ty liability claims has

substantially contr i buted to underwr iting losses.

General insurance Products

Fire Insurance:-

Fire Insurance is a comprehensive policy which covers loss on account of f ire, ear th

quake, r iots, f loods, str ikes, and malicious intent. It can be taken only by the owner of the

premises to be insured.

Motor Insurance:- The coverage is :

In motor insurance, the rates were revised. Upwards twice, once in 1982 and then

in1990 as the high cost of repairs coupled with third par ty claims had adversely affect the

insured loss ratio. Motor insurance is Mandatory leading to good amount of premium

collection but it is not being fancied upon as it could lead to litigation problem.

Marine Cargo Insurance: This covers:

a. C a r g o in Transit.

b. Car go Declaration policy.

It includes insurance of Mar ine Hull Insurance Inland Vessels, ocean going

Vessels, f ishing and scaling vessels, freight at r isk, construction of shi ps, voyage insurance



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of various vessels, ship breaking insurance,oil and energy in respect of onshore and

offshore risks, including construction risk.

No-Traditional/Rural:

Including contractor¶s all-risk cover and the marine-cum- Cattle/hens, crop, water pump for

agriculture, hut, other livestock. Besides the traditional products, general insurers introduced

longer-term contracts such as deferred health insurance and project insurance erection risk

cover and credit insurance.

Objective Of Insurance

1. The main Objective Of insurance behind the nationalization:

Life Insurance to the rural areas and to the Socially and economically backward classes

with a view to reach all insurable persons in the country and providing them adequate

financial cover of reasonable cost.

2. Conduct business with utmost economy and with the full realization that the money to

the public.

3. Meet the various life insurance need of the community that would arise in the changing

social and economical environment.

4. Maximize mobilization of peoples¶ saving by making insurance ± linked securing

adequately attractive.

5. Involve all people working in the corporation to the best of their capability in

furthering the interests of the insurance public by providing efficient service with



36

6. Bear in mind, the investment of funds, the pr imary obligation to its policy holders,

whose money it holder in trust, without losing sight of the interest of the community 29



37

community as whole, keeping in view national as well as the community attractive

return.

BENEFITS TO THE INSURANCE POLICY HOLDER

(1) Tax Benefits

Relief in income tax is available for amount paid by way of premium for life insurance.

investment qualifying for rebate viz. insurance premia, premium paid toward annuity

plans for life insurance are specified under section 88(2) of the income tax Act.

(2) Safety:

Saving through insurance guarantee financial Protection against risk of death of

the police holder. In life insurance, on death, the full sum assured is payable (with

bonuses wherever applicable) whereas in other saving scheme, only the amount (saved

with interest) is payable.

(3) Liquidity:

Loans can be raised on sole security of the policy which has acquired a paid-up

value. Besides, a Life Insurance policy is also generally accepted as security for even a

commercial loan/housing loan,

(4) Aid to Thrift

Life Insurance encourages µthrift¶ Long term saving can be made in a relatively

painless manner because of µeasy installment facility¶ (Premium can be made through

monthly, quarterly half-yearly or yearly installment). The salary saving scheme,



38

through deduction from one¶s salary. The salary saving scheme can be introduced in

an institution of establishment subject to specified terms and condition.

(5)Money at time of Requirement

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

specific needs that are likely to arise in future such as children¶s education, start in-life

or marriage provision or even periodical needs for cash ones a predetermined stretch of

tine. Alternatively, policy money can be so arranged to be used for other investments

subject to certain conditions, loans are granted to policy holders for house or for

purchase of flats.

(6) Insurance afford peace of mind

The security is the prime motivating factor. The security ends the tension and finally leads to

peace to mind.

(7) Insurance eliminate dependency

At the death of husband or the father or any lead person, the family would suffer a lot. The

insurance is here to assist then like to provide adequate amount at the time of suffering. The

economic dependency if the family is reduced.



39

\\\

(8) Insurance Encourage Savings

In most of the life policies, element of saving is predominant, this policies combine of

programme of Insurance and saving. Saving with insurance has certain extra advantage.

(9) Economic Growth Of Company

For the growth of the country insurance provides string hand and mid to protect against

loss of death. From the insurance government get more financial resource and utilize

strengthen the economic condition of the country.

Brief Overview Of Insurance Industry

Other Insurance companies in India

i Aviva

i Bajaj Allianz

i Birla sun life

i ICICI prudential



40

i Life insurance corporation

i Max New-York life

i Metlife India

i Om Kotak Mahindra

i Reliance life insurance

i SBI life insurance

i Tata AIG

AVIVA

The life insurance joint venture company between Dabur india and the Aviva UK.

Dabur is one of the India¶s oldest and largest group of companies with consolidated Annual

turnover in excess of Rs 1,350 corers, country¶s leading producer of traditional Healthcare

products.

Aviva Plc is UK¶s largest and the world¶s fifth largest insurance group. It is one of the leading

providers of life & pension products to Europe and has substantial business elsewhere around

the world.

Bajaj Allianz

Bajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz AG, and Bajaj Auto,

one of the biggest 2 & 3 wheeler manufacturer in the world. Bajaj Auto Ltd, the Flagship

Company of the Rs. 8000 crores Bajaj group is the largest manufacturer of two-wheelers and

three-wheelers in India and one of the largest in the world.



41

Allianz

Allianz group is insurers and financial service providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000

employees. At the top of the holding company, Allianz AG, with its head office in Munich.

ING Vysya

ING Vysya Life Insurance company private Limited entered the private life insurance

industry in India in September 2001, and in a short span pf 3 years has established itself as a

distinctive Life insurance brand with an innovative, attractive and customer friendly product

portfolio and a professional advisor force. It also distributes products in close cooperation with

the ING Vysya Bank network. The company is headquartered at Bangalore

Birla Sun Life Insurance Company Ltd

Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial

of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational

conglomerate has over 75 business units in India and Overseas with operations in Canada, US,

UK, Thailand, Indonesia, Philippines, Malaysia, and Egypt.

To name a few Foreign partner:

Sun life assurance, sun life financials primary insurance business, has excellent rating with the

world¶s top rating agencies. With assets under management as on September 30, 2000 totaling

more than CDN billion, it ranks amongst the largest international financial service



42

MET LIFE INDIA

MetLife India was incorporated as a joint venture between MetLife

International Holdings, inc. Jammu & Kashmir Bank, M Pallonji & Co and other private

investors. MetLife India is headquartered in Bangalore with offices and presence in major

Indian cities, and an additional 1000 outreach points through its channel partner.

ICICI Prudential Life Insurance

ICICI Prudential Life insurance is a joint venture between the ICICI group and Prudential Plc,

of the UK. ICICI standard off its operation in 1955 with providing finance for industrial

development, and since then it has diversified into housing finance, consumer finance , mutual

funds to being a Universal Bank and its latest venture Life insurance.

Foreign Partner

Established in 1848, Prudential plc. Of U.K has grown to be the largest life insurance and

mutual fund Company in U.K. Prudential plc. Has had its presence in Asia for the past 75

years catering to over 1 million customers across 11 Asian countries. Prudential is the largest

Life Insurance company in the United Kingdom.

ICICI and prudential came together in 1993 to provide mutual fund product in India and

today are the largest private sector mutual fund company in India.





44

A A A

The Life insurance Corporation was established about 44 years ago with a view to provide

an insurance cover against var ious r isks in life. A monolith then, the corporation, en joyed a

monopoly status and become synonymous with life insurance.

Its main asset is its staff strength of 1.24 lakh employed and 2,048 branches and Over

six lakh agency force.LIC has hundred divisional off ices and has established extensive

training facility. At all levels, At the apex, is the Management Development Institute, seven

zonal Training Centre and 35 sales Training Centers.

At the industry level, along with the Government and the GIC, it has hel ped establish the

National Insurance Academy. It presently transacts individual Life Insurance business,

group Insurance business, social secur ity schemes and Pensions, grants housing loans

through its subsidiary and markets savings and Investment products through its mutual fund.

it pays off about R s 6,000 crore Annually to 5.6 million policyholders.



45

Established in 1985 as Kotak capital management finance promoted by Uday kotak the

company has come a long way since its entry into corporate finance. It has dabbled in leasing,

auto finance, hire purchase, investment banking, consumer finance, broking etc. the company

got its name Kotak Mahindra as industrialists Harish and Anand Mahindra picked a stake in

the company. Kotak mahindra is today one of India¶s leading Financial institute.

OLD Mutual:-

Old mutual plc is an international Financial service group in london with expanding operations

in life assurance, asset management, banking and general insurance. OLD Mutual is listed on

the London Stock Exchange and also on the south-African, Namibian, Malawi, and Zimbabwe

stock exchanges. It has 156 years of experience in life insurance business.

OM Kotak Mahindra:-

OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd. and Old Mutual

plc to enter the Indian insurance arena to offer a wide rang of innovative life insurance

products.

Reliance Life Insurance

Reliance Life Insurance Company Ltd is a part of Reliance Capital Ltd. of the Reliance ±

Anil Dhirubhai Ambani Group. Reliance Capital is one of India¶s leading private sector

Financial services Companies, and ranks among the top 3 private sector financial services and

banking companies, in terms of net worth. Reliance capital has interests in asset management



46

and mutual funds, stock broking, life and general insurance, proprietary investments, private

equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking

Financial company (NBFT) registered with the Reserve Bank Of India under section 45-1A of

the Reserve Bank of India Act, 1934.Reliance Capital sees immense Potential in the rapidly

growing Financial service sector in India And aims to become a dominant player in this

Industry and offer fully integrated financial services. Reliance Life Insurance is another step

forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and

corporate.

SBI Life Insurance

SBI Life Insurance Company Ltd is a joint venture between India¶s largest bank, State Bank

Of India and Cardiff S.A. a leading Life Insurance Company in France.

State bank of India is a household name, and it stands as the last world for financial strength

and security in the country. SBI¶s background dates back to the year 1806 when it started

business, as a presidency bank, known as bank of Bengal. Over the long journey, it has learnt

to combine the best of banking practices handed down from the imperial management with the

more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant

in the banking field over the years. Cardiff came into being in the year 1973. Since then it has

grown into a vibrant insurance company specializing in personal lines such as long-term

saving, protection products and creditor insurance. Cardiff had a premium income of over US$

4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has

been specializing in the art of selling insurance products through Commercial bank in France

and 23 other countries.

SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance

Regulatory & Development Authority of India and has been issued License number 111 on



47



48

29th March 2001. the Company¶s authorized capital is Rs. 250 crore, and the paid up

capital at present Is Rs.125 crore. SBI owns 74% of the total equity , and Cardiff the balance

26%.

TATA AIG

The TATA AIG joint venture is a tie up between the established Tata Group and

American International Group Inc. The TATA Group is one of the largest and most

respected industrial houses in the country, while AIG is a leading US based insurance

and financial service company with a presence in over 130 countries and jurisdiction around

the world.

ABOUT IRDA

About the IRDA

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority

(IRDA, which was constituted by an act of parliament) specify the composition of Authority



49

(a) A Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functionsof

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;



50

assessors; (e) promoting efficiency in the conduct of

insurance business;

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

reinsurance 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

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



51

CCHHAAPPTTEER R ± ± 33 RESEARCH METHODOLOGY



52



53

RESEARCH METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research problem. It

may be understood as a science of studying how research is don¶t scientifically. In it we study

various steps that are generally adopted by researchers in studying their research problem. It is

necessary for researchers to know not only know research method techniques but also

technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined, what

data has been collected and what a particular methods have been adopted and a host of similar

other questions are usually answered when we talk of research methodology concerning a

research problem or study. The project is a study where focus is on the following points:

RESEARCH DESIGN

A research design is defined, as the specification of methods and procedures for

acquiring the Information needed. It is a plant or organizing framework for doing the study

and collecting the data. Designing a research plan requires decisions all the data sources,

research approaches, Research instruments, sampling plan and contact methods.





55

III. Before af ter with control group design

44



IV. Four groups, six studies design

V. After only with control group design.

VI. Consumer panel design

VII. Exposit facto design

B) DATA COLLECTION METHOD

PRIMARY SECONDARY

Direct personal Interview

Indirect personal Interview Published Sources Unpublished Source

Information from correspondents Govt.publication

Mailed questionnaire Report Committees & Commissions

Question filled by enumerators. Private Publication

Research Institute

Period of Study:

This study has been carried out for a maximum period of 8 weeks.

Area of study: The study is exclusively done in the area of marketing. It is a process requiring

care, sophistication, experience, business judgment, and imagination for which there can be no



45



58

Sampling Design: The random sampling is done because any probability sampling procedure

would require detailed information about the universe, which is not easily available further, it

being an exploratory research.

Sample Procedure: In this study ³random sampling procedure is used. Random sampling is

preferred because of some limitation and the complexity. Area sampling is used in

combination with random sampling so as to collect the data from different regions of the city

and to iSriganganagarease reliability.

SamplingSize: The sampling size of the study is 100.

Method of the Sampling:

Probability Sampling

It is also known as random sampling. Here, every item of the universe has an equal chance or

probability of being chosen for sample.

Probability sampling may be taken inform of:

Simple Random Sampling

A simple random sample gives each member of the population an equal chance of being

chosen. It is not a haphazard sample as some people think! One way of achieving a simple

random sample is to number each element in the sampling frame (e.g. give everyone on the

Electoral register a number) and then use random numbers to select the required sample.



59

46



60

Random numbers can be obtained using your calculator, a spreadsheet, printed tables of

random numbers, or by the more traditional methods of drawing slips of paper from a hat,

tossing coins or rolling dice.

Systematice random sampling

This is random sampling with a system! From the sampling frame, a starting point is chosen

at random, and thereafter at regular intervals.

Stratified Random Sampling

With stratified random sampling, the population is first divided into a number of parts or

'strata' according to some characteristic, chosen to be related to the major variables being

studied. For this survey, the variable of interest is the citizen's attitude to the redevelopment

scheme, and the stratification factor will be the values of the respondents' homes. This factor

was chosen because it seems reasonable to suppose that it will be related to people's attitudes

Cluster & Area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident in a

statistical population. It is often used in marketing research. In this technique, the total

population is divided into these groups (or clusters) and a sample of the groups is selected.

Then the required information is collected from the elements within each selected group. This

may be done for every element in these groups or a subsample of elements may be selected



61

47



62

Non Probability Sampling

It is also known as deliberate or purposive or judge mental sampling. In this type of sampling,

every item in the universe does not have an equal, chance of being included in a sample.

It is of following type:

Convenience Sampling

A convenience sample chooses the individuals that are easiest to reach or sampling that is

done easy. Convenience sampling does not represent the entire population so it is considered

bias.

Quota Sampling

In quota sampling the selection of the sample is made by the interviewer, who has been given

quotas to fill from specified sub-groups of the population.

Judgment Sampling

The sampling technique used here in probability > Random Sampling.

The total sample size is 100.

Data Collection : -

Data is collected from various customers through personal interaction. Specific questionnaire

is prepared for colleting data. Data is collected with mere interaction and formal discussion

with different respondents and we collect data in Aviva Life Insurance Company India Ltd.



63

48



64

and face to face contact with the persons from whom the information is to be obtained (known

as informants). The interviewer asks them questions pertaining to the survey and collects the

desired information. Thus, the we collect data about the working conditions of the workers of

Aviva Life Insurance Company India Ltd.; we worked at Aviva Life Insurance Company India

Ltd. and contact the workers and obtain the information. The information obtained are first

hand or original in character .



65

49



66

CHAPTER ± 4 DATA ANALYSIS



67



68

DATA ANALYSIS

Q.1. Respondent age group

14%

%

36%

8%

18¡ 3¢

3¢

¡ 45

45-6¢

6¢

<



69

51



70

Q.2. Respondent income group (per year)

23%

27%

17%

33%

B£

l¤

¥

50,000

50,000-1,00,000

1,00,000-2,00,000

>2,00,000



71

52



72

Q.3. Respondent¶s Profession

20%

31%

22%

27%

S ¦ §

̈

i © ¦

B

i ¦

P§

f ¦

i

l

t

¦ §



73

53



74

Q. 4. Are you aware about life insurance?

37%

63%

Y

N



75

54



76

Q. 5. How many numbers of companies in life insurance are you aware of?

27%

18%

21%

O !

"

#

$ t

$ F

$ % &

F$ % & t $ Ei ' ( t

L! ) )

t( !

Ei' (

t

34%



77

56



78

Q.6. Do you know about AVIVA LIFE INSURANCE?

33%

Y0 1

N2

67%



79

57





81

58



82

Q. 8. Do you have any life insurance policy in any company?

27%

YE F

NG

73%



83

59



84

Q.9. Do you have any life insurance policy in AVIVA LIFE INSURANCE?

32%

68%

YH I

NP





86

Q.10. Which type of life insurance policy do you have?

33%

13% 23%

31%

PQ R

tS T

tiR U

PlV U

P S U W i R U Pl V U

IU

X

S W t

Y S U t Pl

V U

SV

X

iU ̀

PlV U



87

61



88

Q.11. Are you satisfied with AVIVA LIFE INSURANCE Plans?

29%

12%

26%

Dia a b

tia

fic

d

Ae c f b g c

Sb

tia

fic

d

Hig

h

li

Sb

tia

fic

d

33%



89

62



90

Q.12. Are you satisfied with customer services given by the AVIVA LIFE

INSURANCE?

7%

23%

33%

Dip p q

tip

fir s

At

r u

q

v r

Sq

tip

fir s

Hiv

w

lx

Sq

tip

fir s

37%



91

63



92

Q. 14. Do you know about any F.C. of AVIVA LIFE INSURANCE?

28%

Yy

N

72%



93

64



94

Q.15. Why do you invest in life insurance?

28%

21%

22%

29%

F i

F

i

t

t

F

f

f

t

t

F

t

fit



95

66



96

CCHHAAPPTTEER R ± ± 55 FINDINGS



97

67



98

FINDINGS

After analyzing and interpreting the collected data. The findings are as under.

1. HYPOTHESIS:

a. NullHypothesis:

The null hypothesis is rejected because the result of survey in areas

of Sriganganagar shows that people have much more interest in

insurance sector then our assumption, i.e. more than 80% of people are

interested in insurance sector.

AlternateHypothesis:

The alternate assumption was right. According to this peoples are more

devoted in insurance sector.

b. NullHypothesis:

Null hypothesis is rejected because it says that ³Most of the population

in the areas of Sriganganagar has no awareness about AVIVA.´

AlternateHypothesis:

Alternate hypothesis is accepted; because it says that 70% population which has

awareness about AVIVA.

The awareness of IRDA in Srigangannagar is very low. Only 8% of people knowabout the IRDA.

The people who know about the IRDA these are mostly professionallike as

Advocate, CA and serviceman



99

While interacting with people of rural areas I found that a large por tion of

market i.e. approx. 85% is aware of insurance sector

Till today people do not have a r ight concept about insurance sector, they relate it with

death, besides as a secur ity and investment for future etc.

Although a big percentage of population is aware about the pr ivate insurance companies.

Out of which only 70% are aware about an AVIVA life insurance company.

The people who have the life insurance policy of any company their percentage is very

high it is 69% and only 31% people in SR IGANGANAGAR don¶t have any type

of insurance policy of any company.

In the SR IGANGANAGAR there are percentage of people who know the AVIVA is very

high but ratio of people have the life insurance policy are very low only 19% of

people have the policy of AVIVA and rest 81% don¶t have the policy of AVIVA

but they have the life insurance policy of other companies.

50% of the surveyed people have satisf ied perception regarding AVIVA, while 29% have

average perception.15% of the surveyed people have highly satisf ied perception

and R est 6%. have dissatisf ied perception.



100

69



101

CCHHAAPPTTEER R ± ± 66 RECOMMENDATIONS AND SUGGESTIONS



102

70



103

RECOMMENDATIONS & SUGGESTIONS

Followings are the recommendations and the suggestions not only for the Aviva life

insurance company but also for other private life insurance companies if the want

to complete with public/government life insurance companies.

1creating Positive Image

Private companies should try their level best to create positive and favorable image in the

minds of people i.e. in the minds of their target customers.

2. Training And Development To F.C.

Company must provide training to their agents and financial so that the can satisfy

customer and doubts effectively.

3. Concern Towards Customer

Serious concern must be given to the customers as in today¶s scenario it regarded as

³Customer is a king´. In formal words we can say that if can customers more loyal towards

the company.

4. Agency Holder Must Be Educated

The Company should give agency to that person who is well educated and can convince

the customer b handling his queries and doubts.

5. Co-Operation With Agents

The Company must full co-operate with branch managers and agents.



104



105

6. Branch Office Availability

There must be the branch offices in each20-30 Km. areas;

7. Efficient Management

The management appointed must be that much capable that it can control the whole team

and improve the goodwill and image of the company.

The marketing department must be so aggressive that it can have a close watch on the

competitors¶ activities. Not only this but also it must take care of the need and wants of the

customers also.

9 Incentives and job security

There must be good incentive schemes to be designed as these can acts as good motivators

for the agents. The scheme of permanent job placement must be introduce for those F.C.

and agents who have shown extra ordinary performance.

1 0 . s o l u t i o n o f p r o b l e m s

There must regular meetings with the financial consultants and agents to motivate them

and to solve grievances if there are any.



106

72



107

CCHHAAPPTTEER R ± ± 77 LIMITATION



108

73



109

LIMITATIONS

Although every effort has been in to collect the relevant information through the sources

available, still some relevant information could not be gathered.

Busy Schedule of Concerned Executives:

The concerned executives were having very busy schedule because of which they were

reluctant to give appointment.

Time:

The time duration could not provide ample opportunity to study every detail of the company.

Unawareness:

Executives were unaware of many terms related to same while asking to them.

Confidential Information:

As the company on account of confidential report has not disclosed some figures. Moreover,

in some cases separate accounts of division are not separately maintained thereby, leading to

restrictions in study.



110

74





112

75



113

CONCLUSION

The size of the market has grown and size of the insurable population in India is needed vast

and the existing player has managed to cover amount one ± fourth of it. The opportunities

before the players are therefore a plenty in terms of target audience.

Life Insurance has today become a mainstay of any market economy since it offers plenty of

scope for garnering large sums of money for long periods of time. A well ± regulated Life

Insurance industry which moves with the times by offering its customers tailor made products

to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry

free future.

People used to buy Insurance for tax exemption but time has changed now, advertising has

made the people understand the need of Life Insurance in their lives and people are taking

initiatives to buy it. Urge of people to have Insurance and strong marketing can really make

the industry reach the sky.



114

76



115

BIBLIOGRAPHY

Books Referred

Marketing Management by Rama Swamy

Research and Market Decisions by Paul E. Green,

Donald S. Tull, Gerald

Financial Management by Khan & Jain

Internet Resources

Websites of the organization www.aviva.com,

www.avivaindia.com

Other site www.bimaonline.com

Company Resources

Product Brochures and Company Manuals

Inputs from company personnel

Aviva Investor



116

ANNEXURE



117



118

QUESTIONNAIRE

NAME OF

RESPONDENT:«««««««««««««««««««««««

« GENDER:««««««««««««««««««««««««««

ADDRESS:«««««««««««««««««««««««««

CONTACT NUMBER:««««««««««««««««««««

RESERCHER NAME: RANJIT SINGH

Respondent age group

18-30( ) 30-45( )

45-60( ) 60<( )

Respondent income group(per year)

Below 50,000( ) 50,000-1,00,000( )

1,00,000-2,00,000( ) >2,00,000( )

Respondent¶s Profession

Serviceman( ) Businessman(

) Professionals( ) others( )



119

Are you aware about life insurance

Yes( ) No( )

Do you know about IRDA

Yes( ) No( )

How many numbers of companies in life insurance are you aware of

1( ) 2-4( )

4-8( ) >8( )

Do you know about AVIVA LIFE INSURANCE

Yes( ) No( )

Sources of awareness of AVIVA LIFE INSURANCE

Adver tisement ( ) Fr iend circle( )

Family member( ) FC of AVIVIA ( )

Do you have any life insurance policy in any company

Yes( ) No( )









123

For risk cover ( )

For investment ( )

For safe future return ( )

For tax benefits ( )

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Sanjay Kumar Semifinal 2 - Copy - Copy