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Submitted in Partial Fulfillment of the requirement of BACHELORS OF BUSINESS ADMINISTRATION (BBA)

Training Supervisor: (SR. SALES MANAGER) SUBMITTED BY: Enrolment No.

SESSION 200-20


This project work, which is my major step in the filed of professionalism, has been successfully accomplished only because of timely support of my well wisher. I would like to pay my sincere regards and thanks to those, who directed me at every step in my project work. First of all, I would like to express my thanks to my college for giving me such a wonderful opportunity to widen the horizon of my knowledge. I pay my gratitude towards, my sales manager at Aviva Life Insurance through which I got real Business experience. I extend my thanks to my project Guide for her scholarly guidance, constant supervision and encouragement. It is due to her personal interest and initiative that the project work is published in the present form. .

Someone has greatly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and come to know about the present real world of insurance. Since it include all the activities involved in selling insurance products directly to financial customers. I am pleased to know about the customers wants and various activities in the real world of insurance product. The Subject of my study is MARKETING CONCEPTS OF AVIVA LIFE INSURANCE.

CONTENTS Chapter 1 Introduction 1.1Overview of industry as a whole 1.2 Profile of the organisation 1.3 Problems of the organisation 1.4 Competion information 1.5 S.W.O.T Analysis of the organasation Chapter 2 Objective and Methodology 2.1 Significance 2.2 Objectives 2.3 Scope of the study 2.4 Methodology Chapter 3 Conceptual Discussion Chapter 4 Data Analysis Chapter 5 Findings and Recommendations Annexures Bibliography 1-40 2 12 32 34 40 41-49 42 43 45 46 50-53 54-76 77



The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the mends in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring

industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

The origin of insurance is very old .The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament,

viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. 1. National Insurance Company Ltd. 3. New India Assurance Company Ltd. GIC incorporated as a company. 2. Oriental Insurance Company Ltd. 4. United India Insurance Company Ltd.

INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms

In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations All the insurance companies should be given greater freedom to operate

ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body The Insurance Act should be changed.

An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.

iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry, competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. it should be opened up to

Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

The Insurance Regulatory and Development Authority Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. IMPACT OF LIBERALIZATION The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players

are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05). The following companies has the rest of the market share of the insurance industry. CURRENT SCENARIO OF THE INDUSTRY INSURANCE MARKET IN INDIA India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Innovative products and aggressive distribution have become the say of the day. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Life insurance industry is waiting for a big growth as many Indian and foreign companies are waiting in the line for the green signal to start their operations. The Indian consumer should be ready now because the market is going to give them an array of products, different in price, features and benefits. How the customer is going to make his choice will determine the future of the industry. 1. CUSTOMER SERVICE

Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerisation of operations and updating of technology has become imperative in the current scenario. Foreign


players are bringing in international best practices in service through use of latest technologies. The one time monopoly of the LIC and its agents are now going through a through revision and training programmes to catch up with the other private players. Though lot is being done for the increased customer service and adding technology to it but there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels.



Till date insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. It therefore makes sense to look at well-balanced, alternative channels of distribution. LIC has already well established and have an extensive distribution channel and presence. New players may find it expensive and time consuming to bring up a distribution network to such standards. Therefore they are looking to the diverse areas of distribution channel to have an advantage. At present the distribution channels that are available in the market are: Direct selling Corporate agents Group selling Brokers and cooperative societies Banc assurance

BANCASURANCE - India has an extensive bank network established over the years. What Insurance companies have to do is to just take advantage of the


customers' long-standing trust and relationships with banks. This is a mutually beneficial situation as banks can also expand their range of products on offer to customers, while the insurance company will also earn profits from the exposure. Another advantage is that banks, with their network in rural areas, help to fulfill rural and social obligations stipulated by the Insurance Regulatory and Development Authority (IRDA) recently. Insurance companies should see banc assurance as a tool for increasing their market penetration in India. It is also good for the one who sees banc assurance in terms of reduced price, high quality product and delivery at doorsteps. Everybody is a winner here. The creation of banc assurance operations has made an important impact on the financial services industry at large. This is though a new concept but it has gained a lot of importance in the industry at present and has a great future.



There has been a plethora of new and innovative products offered by the new players. Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money-back policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. health products.



Rural India seems to have an appetite for mobile phones, computers, and cars and to add to it we have insurance. In India with the private players having entered into the insurance industry, the expected explosion in job opportunities may not actually


happen but for them the catchments area is the opportunities in the rural India. In India the insurance business can be said to be "a marathon, not a sprint". This is because of the nature of the business being long term. With merely two years of the industry being opened, not surprisingly, the new comers are making losses. The public sector companies, notably the LIC, have gained in strength, thanks to the deepening of the market consequent to the awareness created by the new companies. However this does not deterred the private sector, which knows know that the race is a marathon, not a sprint. However it seems that they if not anything, are only increasing their spending, though only out of the capital. Today, there are 18 insurance companies in India excluding the PSUs, with 12 in the life insurance business and the rest in non-life .As insurance companies go more and more rural in search of business, there will be opportunities in the rural sector. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance. In a study conducted by MART the results showed that nearly one third said that they had purchased some kind of insurance with the maximum penetration skewed in favor of life insurance. The study also pointed out the private companies have huge task to play in creating awareness and credibility among the rural populace. The perceived benefits of buying a life policy range from security of income bulk return in future, daughter's marriage, children's education and good return on savings, in that order, the study adds. Regulatory and Development Authority (IRDA) have set stiff rural targets for insurance companies. For the life sector, in the first year, 5 per cent of the total policies written should come from the rural sector. This will go up to 15 per cent in five years. Similarly, for the non-life sector, two per cent of the total gross premium income should come from the rural sector going up to 5 per cent in five years,


according to the regulation. All these moves will make the investment the rural area a big start.



In the insurance industry today, there is a clear trend away from selling a broad range of products to a large volume of customers in a one size-fits-all manners. Instead of focusing on their different products lines as silos (i.e., life, property and casualty etc) insurers are looking for ways to offer highly targeted insurance products that are tailored to the individuals customers with the highest propensity to buy them. There is a evolutionary change in the technology that has revolutionized the entire insurance sector. Insurance industry is a data-rich industry, and thus, there is dire need to use the data for trend analysis and personalization. With increased competition among insurers, service has become a key issue. Moreover, customers are getting increasingly sophisticated and tech-savvy. People today dont want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service The insurance companies today must meet the need of the hour for more and more personalized approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment. Companies need to apply different set of rules and treatment strategies to different customer segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system. With the explosion of Website and greater access to direct product or policy information, there is a need to developing better techniques to give customers a truly personalized experience. Personalization helps organizations to reach their


customers with more impact and to generate new revenue through cross selling and up selling activities. To ensure that the customers are receiving personalized information, many organizations are incorporating knowledge database-repositories of content that typically include a search engine and lets the customers locate the all document and information related to their queries of request for services. Customers can hereby use the knowledge database to mange their products or the company information and invoices, claim records, and histories of the service inquiry. These products also may be able to learn from the customers previous knowledge database and to use their information when determining the relevance to the customers search request. The insurance sector remains a very competitive market and those companies that are able to best utilize their data and provide their customer with the most personalized options will have the distinct competitive advantage. The insurers that come up to the top will be those who leverage the appropriate technology solutions effectively in order to foster customer loyalty, attract new customers and improve operational efficiency by providing common information across their lines of business.



This is an era of mergers and acquisitions. Private companies including MNCs are amalgamating the world over to get more competitive edge. Currently, the general insurance industry has been opened up. The question here is that for over two years, eight private companies have operated and has the size of the cake expanded. The insurers are doing enough to raise the level of risk awareness or are they merely content to compete in the markets organized and established. However sooner or later the private sector players will have to put in place strategies aimed not at winning the existing accounts of the public players but at diversifying markets


penetration as a whole. The private players in the future would have to turn their attention to working in the unorganized and under served markets. What is likely to happen is that the private players would continue to skim the profitable segments of the already organized business in the urban areas? The time has already come for the government of India to evaluate the performance of private companies vis--vis their declared objective of opening up the industry. However it is high time for the government to realize that importance of merging the public sector general insurance companies into single entity. The resent scenario calls for a better performance from part of each of the public sector insurance companies against each other; or in other words a competition to be the best. The result what we see is the undercutting of premium to retain or wrest business and quoting an uneconomical rate of premium. While this allows one of the Public Sectors Company to win a business form another in this manner. The others suffer a loss and the resultant effect is a cannibalization with a fall in the average premium of the public sector itself. This at many times brings advantage to the private players who grab the business because of the unethical competition among the public players. The purpose of having four companies all subsidiaries of General Insurance Corporation of India (GIC) National Insurance Company, New India Assurance Company, Oriental Insurance Company, And The United India Insurance Company; at the time of nationalization was to have competition among themselves in service and products at the same price. The service provided by them was also equally good or bad depending on the experience of the customers. Now with real competition coming in with most of the global insurance players setting footprints here, it is felt that the time for merger has come and to enjoy the benefits if the size. It is to be sated that size does matter in insurance business. All


over the worlds mergers and acquisitions in the risk-underwriting sector is common. The benefits if the four insurance companies merge will be enormous. The merged entity will enjoy higher underwriting and risk retention capacity; increase in reinsurance premium, reduction in reinsurance outflow, healthy solvency margins, setting right the asset liability mismatch and reduction in cost. The insurance market thus becomes a gambling place. Had the public sector companies made into a single entity, perhaps the total premium of the four public sector companies in the year 2003-04 would have gone up but 25 percent. But the public sector alone is forced to underwrite the loss making motor third party liability (TPL) insurance. The public insurance companies insured a loss of Rs 1943 crore on this portfolio on just one year (03-04). The cumulative loss under this portfolio is astronomical. The loss of profitable business in view of undeserved competition among the public sector companies is hampering the subsidization of social insurance including the motor TPL. It is thus clear that it is good for the public sector companies to merge immediately when they are still strong, lest a merger becomes inevitable later after the independent public sector companies fail one after another. This does not bid well for the public sector, nor fort he insuring public and not for the economic development either. For a progress me require merger of strong public sector companies. Else it would render public sector companies weak and destroy them. NAME OF THE PLAYER (%) LIC ICICI PRUDENTIAL BIRLA SUN LIFE 82.3 5.63 2.56 MARKET SHARE



2.03 1.80 1.36 1.29 0.90 0.79 0.51 0.37 0.26 0.21


Only ONE out of FIVE insurable population in India have insurance coverage. In terms of Insurance premium per capita and premium per GDP, India ranks as one of the lowest in the world. Life insurance premium constitutes only 9% of domestic savings. By 2010, hundred million elderly look to planning for old age pension and annuities. More than 325 million labor forces have no social security.


With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Though, the existing rule says that a foreign partner can hold 26% equity in an insurance company, a proposal to increase this limit to 49% is pending with the government. Since opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have poured into the Indian market and 21 private companies have been granted licenses. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Indians, who had always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer.


The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent. There are presently 12 general insurance companies with four public sector companies and eight private insurers. According to estimates, private insurance companies collectively have a 10% share of the non-life insurance market.




Aviva is UKs largest and the worlds 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 Financial Health Check (FHC) Avivas 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 customers long-term savings and insurance needs. Depending on the life stage and 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. Avivas 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. Avivas 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 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 2005, 2006 and 2007, 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.


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 UKs largest and the worlds 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.



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 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 1990s 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. American Express Bank American Express Company is a diversified worldwide travel and financial services company founded in 1850. It is the worlds 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-cumprotection 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. Canara Bank Canara Bank is one of the largest retail banks in India with 2,513 branches spread across 25 States and 4 Union Territories. The customer base of Canara Bank exceeds 27 million. With a net profit of INR 1110 Crores, deposits of over INR 96,908 Crores, 47389 employees for the year ending Mar 2005, 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 Punjab & Sind Bank was established in the year 1908. Based on the principles of social commitment to the people, help the farmers, and the weaker sections of the society to raise their standard of living and play a significant role in the development of the country. Even after 96 years of its inception, Punjab & Sind Bank stands committed to honor the high ideals of its founding fathers. Punjab 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 spirit of liberalisation the Bank has laid special emphasis on International banking, Hire purchase, Leasing, Tele-banking and Credit card facilities. The bank has also started their Rural Development Division, High 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 banks 3,500 employees will continue to provide support and an enhanced banking experience to our customers, as part of a bigger, stronger bank. Avivas key strength is its fund management capabilities with an experience of 30 years in money management.


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 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 Indias sustainable growth story. The second reason was an improvement in the global liquidity as investors appetite for risk iJhansieased. 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- iJhansieasing 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 to participate in the India growth story. However, expectations of returns from equity should 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 primary 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 iJhansiease 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 2005-06 came in at a better than expected 8.4%, propped up by improved agriculture performance. For 2006-07 also, despite


inflationary pressures, the GDP is expected to grow at over 7%. Going forward, monetary tightness will weigh on the interest rate outlook and it is expected to remain firm.




Since Aviva Life Insurance is a private player in the insurance industry, it

has not yet reached break-even. Hence, it has high cost due to which its premiums are high as compared to LIC. It has to create credibility in the public. It has to compete with the wide range of products that its competitors offer. It has to focus towards rural segment also which has a great scope of growth. It has to decide on the strategies to be adopted which will help to counter competition. It has to increase its no. of branches and also enhance its network of agents so that it can compete with LIC. It has to focus on providing effective training to its agents so that the customer base can be increased and moreover customer satisfaction can be ensured.



Bajaj Allianz Birla Sun Life Insurance HDFC Standard Life Insurance ICICI Prudential ING Vysya Kotak Mahindra LIC MetLife India Insurance SBI Life Insurance Shriram Life Insurance Tata AIG Life Insurance


Bajaj Allianz is a joint venture between Allianz AG one of the worlds largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance.


Allianz Group is one of the worlds leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of twowheelers and three-wheelers in India and one of the largest in the world. Today, Bajaj Allianz is one of Indias leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. BIRLA SUN LIFE INSURANCE

Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. Sun Life Assurance, Sun Life Financials primary insurance business, is one of the leading insurance companies of the world and ranks amongst the largest international financial services 34rganizations in the world. The Group has presence in several countries such as Canada, United States, Philippines, Japan, Indonesia, India and Bermuda.



ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company in the UK. ICICI Prudential is curently the No. 1 private life insurer in the country. For the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. ING VYSYA LIFE INSURANCE

ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank and ING Group of Holland, the world's 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years.


ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001. With in a short span of time ING Vysya Life Insurance has registered an impressive growth. The company currently has over 10,000 active advisors working from 75 branches (in 30 cities) across the country and over 2300 employees. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance, and investment banking. Old Mutual was established more than 150 years ago and offers a diverse range of financial services in South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization and has its headquarters in London. LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. It has been established by an act of the Parliament and started functioning from 1/9/1956.


LIC is the biggest insurance player in the country. Out of the total premium of Rs 3766 crore generated by the insurance industry through group business in the year 2005-06, LIC alone accounted for Rs 3051 crore. In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC has a growth of 2%. LIC's market share in number of individuals covered and number of policies stands at 77% and 81%, respectively. METLIFE INDIA INSURANCE

MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank, Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini Muthoothu. Met Life Group has presence in America and Asia and has an experience of over 137 years in providing financial services. The MetLife companies are the number one life insurer in the U.S. with approximately US $2.8 trillion of life insurance in force. MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife entered Indian insurance sector in 2001. RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent


shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a portfolio. AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across the country, 9,000 agents, and more than 900 employees. SBI LIFE INSURANCE

SBI Life Insurance is a joint venture between the State Bank of India and Cardif SA of France. SBI Life Insurance is registered with an authorised capital of Rs 500 crore and a paid up capital of Rs 350 crores. State Bank of India is the largest banking franchise in India. Along with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across the country, the largest in the world. Cardif is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's leading Bank. BNP is one of the oldest foreign banks with a presence in India dating back to 1860. SHRIRAM LIFE INSURANCE

Shriram Life Insurance Company Ltd is a joint venture between the Chennai-based Shriram Group and the South African insurance major Sanlam.


The company launched its operations in India in December 2005. Shriram Life has set a target of achieving a premium income of Rs 110 crore during the first year of operations. While focussing largely on the strong network of over 65,000 agents and distribution network of more than 550 branches, Shriram Life is also contemplating bancassurance alliances with couple of banks. TATA AIG LIFE INSURANCE

Tata AIG Life Insurance Company Limited is a joint venture between Tata Group and American International Group, Inc. (AIG). Tata Group is one of the oldest and leading business groups of India. Tata Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalisation of insurance. The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. AIG has one of the most extensive life insurance networks in the world.




STRENGTHS Premiums are increasing and so are commissions. The variety of products is increasing. Transparency in working is followed. Fund charges are less i.e. 0.8% Stronger financial base. Employee centric organization. WEAKNESS Strong competitors like LIC, ICICI Pru, Birla Sun Life etc. Premium is priced high as compared top the market leader. Infrastructure cost is high. Less expenditure on promotion. Products not customized for lower segment.


OPPORTUNITIES The ability to cross sell financial services barely being tapped. Technology is improving to the point that paperless transactions are available. The client's increasing need for an "insurance consultant" can open new ways to service the client and generate income.

Government regulations on issues like health care, mold and terrorism can quickly change the direction of insurance. The increasing expenses and lower profit margins. Intense competition from LIC.





1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Risk and Insurance Global insurance Penetration of insurance sector at world level as well as in Saving habits of Indian people Liberalization of Indian Insurance Sector Role of the Insurance Regulatory Authority of India Performance of private players in insurance sector A comparitive stidies on private and public sector of insurance companies Performance evalustion of non-ife insurers (public and private Evalustion of General Insurance Sector in India Urban and Rural penetration of Insurance sector in India Role of Insurance Sector In terms of infrastructure development in India India



Objectives of the Study

The summer internship program was carried with two prime objectives in mind. The entire program was divided into two parts: a.) The marketing for Aviva Life Insurance. b.) A survey conducted on the people of Delhi. The marketing of Products of Aviva Life Insurance is the second most important responsibility next to the recruitment of agent advisors in the organisation. If the manager is able to properly market the products of the organisation either directly or indirectly, half of his job is done. During my internship program, i was involved in marketing and selling the produts of Aviva Life Insurance with my Sales Manager and the Associate Partner. This enabled me to get a first hand experience and learning of this important function, which will be very helpful my future. The survey was conducted on the people of Delhi. The main objective behind the survey was to find out the factors which motivate the peple to choose Aviva Life Insurance.


To understand the... 1. 2. 3. 4.

Scope of the Study

Philosophy of customer orientation Firms to uncover customer needs first Coordinate all their activities to satistfy those needs Marketing research is vital to maintaining and improving a companys overall competitiveness.

5. future 6.

Understanding the external environment helps to intelligently plan for the

Many firms continually collect and evaluate environmental information to identify future market oppurtunities and threats.

7. 8. 9.

Nature of its product Ways to promote their product Will identify whether the marketing mix is effective enough to maximise the benifits to the firm from available oppurtunities.


Many successful products launches were preceded by extensive marketing research.



A questionnaire is a structured technique for data collection consisting of a series of question, written or verbal, to which a respondent replies , is interpret as questionnaire.


The data has been collected through filling up of the questionnaire from different various segments of the society and interviewing them about their various options of investments.


Research Undertaken

Primary Research

Secondary Research

Indepth Interview

Questionnaires for employees

Internet browsing

Reference Books


Chapter-3 Conceptual Discussion


The survey was conducted on the people of Delhi. The main objective behind the survey was to find out the factors which motivate the peple to choose Aviva Life Insurance and also to find out how the organisation can help their customers. The survey was carried out on as sample size of 100 people. It was a questionnairebased survey in which I personally sat with each and every sample and discussed the various question. This practice though time consuming help me in bringing out the best results as I could not get the most intriguing answers and also people felt more comfortable in giving genuine feed back and suggestion. The survey was carried for over a period of one month and each was an enriching experience as each day the people had some enriching experience to share. During this period, I covered every segment of the society, i.e i tried to cover some young age people, some middle age and also those who were nearer to their retirements. The survey also gave me an oppurtunities to interact with a good number of people. I also coducted my survey with some of the agent and advisors of Aviva Life Insurance. They revealed some interesting facts about the motivational needs and expectstions of the agent advisors. More than 60% of the advisors who work with Aviva Life Insurance currently have their own business or other job and the primary reason why they have joined Aviva Life Insurance is extra money. The gragh below shows the various factors which motivates the agent advisord:


Fig 1.1 The two most successful producys of Aviva Life Insurance are Whole Life Plan and Life Maker Plan, the former being the risk cover plan and the latter being the investment plan. On asking to the existing customers of Aviva Life Insurance, there was a miwed response where 60% of the people feel that products are good enough while the remaining 40% say that the produnct range are not enough. Product Range of Aviva Life Insurance

Fig 1. 2







Comparision of the distribution of occupation of the respondents.

others. 6% Self - employed 14%

Emp. (Pubic.sector) 18%

Emp. (Pvt.sector) 62%

Fig1.3 Analysis 18 respondents belonged to the employee in the private sector, 62 belong to the employee in the private sector, 14 are self employed and 6 are in the other category. The average score received was calculated by adding the score given by each respondent divided by the total number of respondent. Also it was noted that in case of LIC there were total of 13 respondents who give rating of 5 or less than 5 but the same in case of Aviva Life Insurance were only 3.



Comparison communication







Advertising Aviva Life Insurance 34

Trends 4

DSAs 26

Table 1.4
40 35 30 25 20 15 10 5 0 Advertising Trends DSAs Advertising Trends DSAs


3. Which marketing srategy would you prefer?




35 30 25 20 15 10 5 0 Advt. Frends DSAs HDFC SLIC

Fig 1. 4

INTERPRETATION In the above figure all the respondents marked more than one option given in the questionnaire advertisements in print media, television, radio etc, and 11 responses went in favor of word of mouth communication through friends and relatives. Of the total respondents of Aviva Life Insurance, 34 responses went in favor of advertisements, 26 went in favour of DSAs, and only 4 went in favor of friends and relatives.



Comparision of incentive schemes High satisfied Satisfied Moderate Unsatisfied Highly unsatisfied 7 10 9 6 4 4 2 6

LIC Aviva

24 Life 26





30 25 20 15 10 5 0 High satisfied Satisfied Moderate Unsatisfied Highly unsatisfied LIC Aviva

Fig 1. 5


INTERPRETATION Of the total respondents of LIC (as shown in figure 4.10), 28 responded that they are very much satisfied with the incentive schemes associated with their policies, 7 were only satisfied with the incentive scheme, 9 were moderate with regards to the incentive scheme and 6 people were either unsatisfied or highly unsatisfied with the incentive schemes. However, of the total respondents of the Aviva Life Insurance, 24 were highly satisfied with the incentive scheme associated with their life policy while only 6 people were highly unsatisfied with regards to the same.



Are you interested in products offered by the Aviva Life Insurance? Yes No Will think 61% 22% 17%


Yes No
22% 61%

Will think

Fig 1. 6 INTERPRETATION The good thing is that at least the corporates were quite eager to find out what Aviva Life Insurance has to offer whereas the major 39 % of the corporates were not even interested in the products as they are quite satisfied by the LIC and they are not in breaking their long relationship with them. The private players will have to play a long battle in order to ensure that they are serious player in the market. Basically corporates think that its too early to invest in private companies as they have just entered the scene and they are unsure of the security they will have about their investment


Are you satisfied with your present insurer?


95% 5%

100% 80% 60% 40% 20% 0%



5% Yes



INTERPRETATION Here is where the challenge is. Inevitably most of the players are very satisfied with their present insurer which makes it more tough for the private players to attract the corporates. The remaining 5 % are also not very dissatisfied by the services but they are just open to new avenues and are looking forward that private companies come with good offers so that they may shift to them. Thus private players will have to be very proactive and in this regard since LIC is the leader and Aviva Life Insurance is lagging behind its competitors in terms of competition.



Where would you like to insure if given chance? 60 10 15 9 8 2


60 40 20

60 9 10 15


Fig 1.8

INTERPRETATION Thus we see that the companies are comfortable in having business with govt. owned companies as they feel its safe & secure to have business with them which is followed by Aviva Life Insurance and then followed by ICICI & TATA AIG as the name TATA is associated with it which commands huge premium in the market .







What is peoples main concern while taking a insurance policy?

Security Returns Tax rebate

70% 10% 20%




Fig 1. 9 INTERPRETATION People invest in insurance mainly because of security concern.


9. Please express your opinion for the premiums paid for the above policy?

Very Low, 9% Low, 10% Moderate , 11% High, 30%

Very High, 40%

Very High High Moderate Low Very Low

Fig 1. 10


Here we found that 40%people are very highly satisfied ,30% of people are highly satisfied,11% are moderate ,10% of people are low satisfied,9% are very low satisfied.



Are you satisfied with insentive associated wiyh your policy?

6). Are you satisfied with the incentives associated with your policy?
40% 40% 35% 30% 30% 25% Highly satisfied 20% 15% 15% 10% 10% 5% 5% 0% Highly satisfied Satisfied Moderate Unsatisfied Highly Unsatisfied Satisfied Moderate Unsatisfied Highly Unsatisfied

Fig 1. 11

Interpretation 30% people are highly satisfied,40% satisfied,15%are moderate,5% are unsatisfied and 10%are highly unsatisfied.



What other plans or flexibility you expect from insurance companies?


More returns Complementary gifts Investment Pattern

50% 20%

Fig 1. 12 Interpretation 50%people are satisfied with investment pattern, 30% are satisfied with more returned and only 20% people expect complimentary gifts.



Role of union in the organization.

43% yes no 57%

Fig 1.13

There is hardly any presence of union in the organization. This industry deals with software productions. As a result most of the employees are either engineer or post graduate software specialist. The workers performing operational level to decision making are all well educated employees. So for the welfare of the quality of work life and other activities related to the welfare of the workers, they are not take into such consideration. Basically this is an industry related to special kind of production. It is not like that of automobile or any other heavy production industry where there is working class like labor. In those industry union exit because the quality of work life is something different. Their heavy work relating to manual function is present. So I dont think there is any need arise for the presence of union. So, an industry like this has no union. It is one of the important parts of my study of any kind of software industry, where there is no union. From this kind of research I can infer that in recruitment and selection process which is done by the Bharti Axa Life Insurance like this (software industry), but not by employees association.


13. Changes occurred in Recruitment and Selection Procedure

In his question I was looking for any sort of changes at list during the preceding two years. Every year there are some changes take place in recruitment and selection process for better result and production. It is such an industry where in every moment some innovation takes place. So the Aviva Life Insurance needs some new skills to achieve the required fulfillment. For the last couple of years the Aviva Life Insurance is focusing more on campus interview to give more chances to the fresher. This resembles that the Aviva Life Insurance recruitment policy, the Avivas needs for greater committed employee and also motive behind concentrating more on fresher, as it is the belief from Avivas perspective to be working smartly with full enthusiasm. They are also updated with the current concepts, which are required in software industry. The Aviva Life Insurance is dealing in making, developing and maintaining the software packages. The companies target audience is foreign market. Most of the customers come from abroad. For these very reason employees has to conduct project in foreign countries. Thats why freshers are targeted to fill up the vacancies. It is also experienced, as the Aviva Life Insurance is dealing with creating software packages, developing and maintaining the software, so it the obvious need for the Aviva Life Insurance is to effectively deal with the foreign market . Most of the Avivas customers are from abroad. For this the employees has to conduct project in the foreign countries, which makes way for the freshers to upgrade their career growth opportunity quiet wide open.



Yes 72% No

Fig 1.14 14 Satisfaction level of customers yes no



Fig 1.15 Interpretation All the customersare satisfied with the services offered by Aviva Life Insurance are 70%. They say Aviva Life Insurance is good in customer reletionships.


15. Well defined policy

60 50 40 30 20 10 0 Agree Disagree Cant say Agree Disagree Cant say

Fig 1.16

INTERPRETATION According to a survey of 100 customers, 56 of them were agree on having a well defined policy in the organization,24 were disagree and the rest 20 were not sure or cant say.


Chapter 5




It is still finded that people are not aware of services provided or rendered by Aviva Life Insurance, it is because lack of proper proportional activities or adverrtisement. Television is most impoetant source for advertisement, but not the only and reliable source. Aviva Life Insurance also follows the same strategy.

Customers are very much aware of the type of products ornfinancial advice given to them. But still it has been noticed that people do not know the exact brnrfits of the products. But however these are very less in number.

Aviva Life Insurance are very good in meeting with new people. They do it by conopies, having, references with their existing customers.

Aviva Life Insurance is very tranparent with their products and the customers.


More emphasis should be on promotional activities. Plenty of advertisement should be done through T.V, Newspaper and Radio as these medias are having maximum recall value. Total financial planning and advice should be given to every customer. More business opportunity seminars should be conducted to make people aware of the offer given. The company should quite frequently send their agent to the customer so that they should be aware of the latest offer. The company should attempt to open more and more of its branches in the country so as to promote their product publicity.




Sample Questionnaire
Q.1 Do you have any life insurance policies? Yes [ ] If Ye Name of the Company Name of the plan Amount of premium Term of plan ________________ _________________ . _________________ Annual No [ ]

Are you satisfied with present insurer? A) YES B) NO .

Q.2 Which are the main issues that you take into consideration while purchasing any life insurance policy? a) Security b) Returns c) Tax saving [ ] [ ] [ ]

d) Others please specify_________


Are you aware of Unit Linked Insurance Plans offered by various [ ] [ ] [ ] B) KOTAK MAHINDRA [ ] D) BAJAJ ALLIANZ F) BIRLA SUNLIFE [ ] [ ] [ ]

companies in India? A)ICICI C) TATA AIG E) LIC



Q.4 Do you have a life insurance policy from Aviva Life Insurance? a) Yes [ ] b) No []

Q.5 If yes, which policy have you taken? _________________________________________________

Q.6 Does this policy satisfy your financial needs? (Please rate on the scale of 1 to 10 with one being least satisfied)

Q.7 Please express your opinion for the premiums paid for the above policy? a) Very high [ ] e) Very Low [] b) High [] c) Moderate [ ] d) Low [ ]

Q.8 How do you come to know about this policy? (Please tick). a) Advertisements [ ] b) Friends and relatives [ ]

c) Direct selling agents [ ]. d) Others (please specify)_____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with this policy? (Please give appropriate details about it). _____________________________________________________________ _________________________________________________________


10. Are you satisfied with the incentives associated with your policy? a) Highly satisfied [ ]. d) Unsatisfied b) Satisfied [ ] c) Moderate [ ] [ ].

[ ] e) Highly Unsatisfied

Q.11 If you are given a choice, which one you take: A) ICICI C) TATA AIG E) LIC B) OM KOTAK MAHINDRA D) Aviva Life Insurance F) SBI

Q12 What other plans or flexibility you expect from Insurance companies? A) More returns B) Complementary gifts C) Investment Pattern [ ] [ ] [ ]

Q13 Which company will you prefer while takiing an insurance policy? LIC ICICI AVIVA LIFE INSURANCE TATA AIG SBI KOTAK MAHINDRA -[ ] -[ ] -[ ] -[ ] -[ ] -[ ]

Q14 Are you satisfied with your present insurer? YES No [ ] [ ]




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