[TITLE OF DISSERTATION]

Customer Satisfaction regarding the Kota !ahindra Life Insurance

Directorate of Distance Education

Su"mitted to Lo#e$% &rofessiona$ 'ni#ersit%

In partial fulfillment of the requirements for the award of degree of

MASTER OF BUSINESS A MINISTRATION

Submitted by: Name of the Student : Vikas Chugh Registration Number : 2 !!!"#"

Supervisor: Project Guide: Malika Thakral $esignation

Directorate of Distance Education LO(EL) &ROFESSIONAL 'NI(ERSIT) &*A+,ARA !"ear of #ompletion$ %

TO ,*O!SOE(ER IT !A) CONCERN

This is to #ertif& that the pro'e#t report titled ()ustomer satisfa#tion regarding the (*ota+ Mahindra ,ife Insuran#e- #arried out .& Mr/0i+as )hugh 1 S2o Ramesh *umar )hugh has .een a##omplished under m& guidan#e 3 super4ision as a dul& registered MBA student of the ,o4el& 5rofessional Uni4ersit&1 5hagwara/ This pro'e#t is .eing su.mitted .& him2her in the partial fulfillment of the requirements for the award of the Master of Business Administration from ,o4el& 5rofessional Uni4ersit&/

6is2 her dissertation represents his2 her original wor+ and is worth& of #onsideration for the award of the degree of Master of Business Administration/

77777777777777777777777777777777777 !Name 3 Signature of the 5ro'e#t 8uide$ esignation9 ate9

DECLARATION

I1 %Vikas Chugh&' here.& de#lare that the wor+ presented herein is genuine wor+ done originall& .& me and has not .een pu.lished or su.mitted elsewhere for the requirement of a degree programme/ An& literature1 data or wor+s done .& others and #ited within this dissertation has .een gi4en due a#+nowledgement and listed in the referen#e se#tion/

---------------------(Student)s name * Signature+ ,,,,,,,,,,,,,,,,,,,,,,, (Registration No-+

ate9------------------

ACKNO,LED+E!ENT

5erse4eran#e1 inspiration and moti4ation ha4e alwa&s pla&ed a great role in the su##ess of an& 4enture/ At this le4el of understanding it is often diffi#ult to understand the wide spe#trum of +nowledge without proper guidan#e and ad4i#e/ This report entitled <)ustomer satisfa#tion regarding *ota+ ,ife Insuran#e-1 of ,udhiana Unit for fulfillment of M/B/A program/ I e=tend m& sin#ere gratitude to Mr/Mandeep Singh !Bran#h Manager$ of +ota+ life insuran#e for granting me the opportunit& to undergo m& stud& in this organi>ation and #ontinuousl& guiding me throughout the span of m& stud&/ I am also than+ full to ,e#t/ Mali+a Tha+ral who ha4e gi4en me their full #ooperation and de4oted their 4alua.le time for rendering me their need& ser4i#es and guidelines during the training period/ ?ith those sin#ere and pre#ious efforts1 I ha4e .een a.le to #omplete m& pra#ti#al training su##essfull&/

?IT6 SIN)ERE T6AN*S (i as Chugh Reg. no./0111232

Cha4ter50 E6ecuti#e Summar%7

,ife insuran#e is a form of insuran#e that pa&s monetar& pro#eeds upon the death of the insured #o4ered in the poli#&/ Essentiall&1 a life insuran#e poli#& is a #ontra#t .etween the named insured and the insuran#e #ompan& wherein the insuran#e #ompan& agrees to pa& an agreed upon sum of mone& to the insuredAs named .enefi#iar& so long as the insuredAs premiums are #urrent/ ?ith a large population and the untapped mar+et area of this population insuran#e happens to .e a 4er& .ig opportunit& in India/ Toda& it stands as a .usiness growing at the rate of %BC:DE annuall&/ Together with .an+ing ser4i#es1 it adds a.out F per#ent to the #ountr&Gs 8 5/ In spite of all this growth statisti#s of the penetration of the insuran#e in the #ountr& is 4er& poor/ Nearl& HDE of Indian populations are without life insuran#e #o4er and the health insuran#e/ This is an indi#ator that growth potential for the insuran#e se#tor is immense in India/ It was due to this immense growth that the regulations were introdu#ed in the insuran#e se#tor and in #ontinuation (Malhotra )ommittee- was #onstituted .& the go4ernment in %II; to e=amine the 4arious aspe#ts of the industr&/ The +e& element of the reform pro#ess was parti#ipation of o4erseas insuran#e #ompanies with :JE #apital/ )reating a more #ompetiti4e finan#ial s&stem suita.le for the requirements of the e#onom& was the main idea .ehind this reform/ Sin#e then the insuran#e industr& has gone through man& #hanges/ The li.erali>ation of the industr& the insuran#e industr& has ne4er loo+ed .a#+ and toda& stand as one of the most #ompetiti4e and e=ploring industr& in India/ The entr& of the pri4ate pla&ers and the in#reased use of the new distri.ution are in the limelight toda&/ The use of new

distri.ution te#hniques and the IT tools has in#reased the s#ope of the industr& in the longer run/ Insuran#e is the .usiness of pro4iding prote#tion against finan#ial aspe#ts of ris+1 su#h as those to propert&1 life health and legal lia.ilit&/ It is one method of a greater #on#ept +nown as ris+ management Kwhi#h is the need to mange un#ertaint& on a##ount of e=posure to loss1 in'ur&1 disad4antage or destru#tion/

C$assification of insurance7
The insuran#e industr& in India #an .roadl& #lassif& in two parts/ The& are/ 08 Life insurance. /8 Non5$ife 9genera$8 insurance.

INTROD'CTION A:O'T KOTAK LIFE INS'RANCE Com4an% *istor%

Old Mutual has a histor& of more than %BD &ears as a South Afri#an .ased mutual so#iet& prior to its pu.li# listing in %III/ On this page &ou #an a##ess some of our histori#al highlights from %H@B to the present1 preC and post our demutualisation/

!ARKET S*ARE
*ota+ Mahindra 8roup in India has mar+et share of :/:E/ It has a.ilit& to enter in the ad'a#ent mar+et1 whi#h will help it to grow further in finan#ial se#tor of India/ *ota+ Mahindra is a finan#ial firm in India fulfilling the finan#ial need of the pu.li#/ *ota+ Mahindra 8roup #ame into .eing in %IHB as *ota+ )apital Management Finan#e ,imited and the name #hanged to Kota !ahindra Finance $td/ in %IHJ when 6arish Mahindra and Anand Mahindra too+ it/ From Bill dis#ounting a#ti4it& in %IHJ it had entered into the ,ease and 6ire 5ur#hase Mar+et in %IHF/ The Auto Finan#e di4ision was started in %IID/ In the J

&ear %IIH *ota+ Mahindra 4entures into mutual Fund Mar+et with the laun#h of *ota+ !ahindra Asset !anagement Com4an%/ It got tied up with Old Mutual pl#/ and the Life Insurance :usiness in the &ear :DDD/ "ear :DD; saw the #on4ersion of *ota+ Mahindra Finan#e ,td/ into a )ommer#ial Ban+/ It is the first Indian )ompan& to do so/ In :DD@ it laun#hed a pri4ate equit& fund named India 8rowth Fund/ ,i+e all other &ears the :DDJ was also 4er& fruitful for this group as it .ought :BE sta+e held .& 8olden Sa#hs in *ota+ Mahindra )apital )ompan& and *ota+ Se#urities/ The ser4i#es offered .& *ota+ 8roup are9
o o o o o o o o o o o o o

Ban+ ,ife Insuran#e Mutual Funds Se#urities )ar Finan#e *ota+ Realit& Fund *ota+ 5ri4ate Equit& Institutional Equities In4estment Ban+ing *ota+ Mahindra International )ommer#ial .an+ing Sto#+ Bro+ing Finan#ial need of indi4iduals and #orporate are ta+en #are .& *ota+ Mahindra Ban+

Re#ie; of $iterature
%/ Dohert% and Dionne < found that1 some )urrent Insuran#e Mar+ets Are Trou.led

.& the 5resen#e of S&stemati# Ris+ Or .& the Ina.ilit& of the 5arties to Spe#if& the istri.ution for Aggregate ,oss/ Su#h )ir#umstan#es 5artl& )hara#terise the Topi#al <,ia.ilit& Insuran#e )risis</ ?e )ompare the 5erforman#e of Alternati4e 0ehi#les for Ris+ Sharing Under These )ir#umstan#es/ Spe#ifi#all&1 ?e Show That Mutals Appear to Outperform Sto#+ Insuran#e )ompanies ?hen There Is Undi4ersifia.le Ris+/ F

:/

&au$% and *irth < propose a guaranteed renewa.ilit& !8R$ insuran#e in whi#h a sequen#e of premiums would ena.le insurers to .rea+ e4en and would .e #hosen .& .oth lowC and highCris+ .u&ers1 whether or not the& had suffered a loss/ The premium s#hedule would #ontinuall& de#line o4er time1 as the insurer #olle#ts more information to determine who the lowCris+ indi4iduals lea4e for the spot mar+et/ The #on#luding portion of the arti#le dis#usses the limitations of a 8R poli#& in the health and en4ironmental lia.ilit& area1 the most serious .eing insta.ilit& in estimates of underl&ing loss trends/ )op&right %IIB .& *luwer A#ademi# 5u.lisher

;/

=heng1 Liu and Deng < this paper ma+es a new assessment and #omparison of insuran#e growth le4els of #ertain #ountries as well as #ertain e#onomi# groups1 and further dis#usses the poli#& impli#ations/ The main #on#lusions of this paper are as follows/ First1 it is ne#essar& to ha4e a new re#ognition of the international insuran#e growth pattern9 the relati4e le4el of insuran#e growth in de4eloped mar+ets has de#lined as #ompared with that indi#ated .& traditional indi#ators1 and the relati4e le4el of insuran#e growth in de4eloping mar+ets has in#reased/

@/

(uorinen< >ar#inen and Lehtine < e=plained1 the widel& used strateg& to #ope with the dangers of foreign in4estment .& hedging against potential losses is politi#al ris+ insuran#e/ All multinational #orporations are su.'e#t to politi#al ris+ perils/Broadl& spea+ing1 there are si= different t&pes of politi#al ris+9 #onfis#ation1 e=propriation and nationali>ationL #ontra#t repudiation and frustrationL unfair regulator& en4ironmentL #urren#& in#on4erti.ilit&L #ontingen#&L and war ris+/ Similarl&1 poli#ies a4aila.le #an .e defined a##ording to these si= #ategories/

B/

+arcia< Camino and !o$ero <in this paper offers a diagnosis of the #urrent stage

of de4elopment of insuran#e firms operating in Belgium and Spain a##ording to the differential patterns the& e=hi.it in the adoption of the #on#ept of mar+eting/ The theoreti#al approa#h we use here has .een defined in order to in#lude three #riti#al H

dimensions9 the organi>ational pro#ess that en#ompasses the mar+eting adoption #on#eptL the e=tent to whi#h differential mar+eting patterns are related to .usiness and e#onomi# performan#eL and finall& to identif& the influen#e of managerial de#isionCma+ing and their planned patterns of strategi# .eha4ior in the de4elopment and ongoing pro#ess of mar+eting adoption/

O"?ecti#e7
The main of the present stud& of is a##omplish the following o.'e#ti4e/ %/ :/ ;/ To +now a.out .rand awareness of *ota+ ,ife Insuran#e and #ustomerGs preferen#e a.out *ota+ ,ife Insuran#e/ A##ording the mar+et sur4e& #ome +now a.out how mu#h potential of insuran#e mar+et in our #it&/ Training aims at re#ruiting ma=imum num.er of ,ife Ad4isors and to Sell the ma=imum poli#ies for the #ompan& and .ring the .usiness for the #ompan& whi#h e4er is going at the parti#ular point of time/

S'R(E) AND RESEARC*

TITLE7 To stud& the #ustomer satisfa#tion regarding of +ota+ mahindra life insuran#e/ TITLE >'STIFICATION9 I

The a.o4e title is self e=planator&/ The stud& deals mainl& with stud&ing the .u&ing

pattern

in the insuran#e industr& with a spe#ial fo#us on *ota+ life Insuran#e/ The 4arious segments of the mar+ets di4ided in terms of Insuran#e Needs1 Age groups 1 Satisfa#tion le4els et# will also studied/ SI+NIFICANCE OF T*E ST'D)7 This is a limited stud& whi#h ta+es into #onsideration the responses of %DD people/ This data #an .e e=trapolated to ta+e in the trends a#ross the industr&/ The signifi#an#e for the industr& lies in stud&ing these trends that emerge from the stud&/ It is a rapidl& #hanging and e4ol4ing se#tor/ 5eople are onl& .eginning to wa+e up to its 4ast possi.ilities/ A stud& li+e this #an attempt to guide the future of the industr& .ased on #urrent trends/

SCO&E OF T*E ST'D)7

The data for the resear#h was #olle#ted from different >ones of ,udhain )it& and / &ROD'CT SCO&E7 The resear#h was #ondu#ted to find out a.out the preferen#e and per#eption of the target population for different insuran#e produ#ts/ The in4estment pattern and strategies were dis#o4ered through this resear#h/ Also the awareness a.out *ota+ ,ife Insuran#e was also found out/

TAR+ET &O&'LATION7
The target population in#luded most of the #ategories of people li+e Ser4i#e #lass1 .usiness #lass1 students1 houseCwi4es et#/ RESEARC* DESI+N7 The resear#h is primaril& .oth e=plorator& as well as des#ripti4e in nature/ The sour#es of information are .oth primar& 3 se#ondar&/ A wellCstru#tured questionnaire was prepared and personal inter4iews were #ondu#ted to #olle#t the #ustomerGs per#eption and .u&ing .eha4ior1 through the questionnaire/

DATA COLLECTION7 &rimar% Data7 In 5rimar& data1 stru#tured questionnaire was made and the target respondents were as+ed to fill the questionnaire/ Thus a large amount of data was #olle#ted/ %D

Secondar% Data7 Se#ondar& data was #olle#ted from 4arious sour#es su#h as internet1 news papers1 pu.li#ations and finan#ial maga>ines/ @'ESTIONNAIRE DESI+N7 O.'e#ti4e was to ma+e respondents little familiar with the #onte=t of the questions/ This was also aimed at #olle#ting data a.out the sample profile thatGll .e su.sequentl& anal&>ed so that the s#ope of the pro'e#t is full& e=plored/ Initiall&1 a rough draft was prepared +eeping in mind the o.'e#ti4e of the resear#h/ A pilot stud& was done in order to +now the a##ura#& of the Muestionnaire/ The final Muestionnaire was arri4ed onl& after #ertain important #hanges were done/ Thus m& sampling #ame out to .e 'udgmental and #on4enient/ CONCL'SION After o4erhauling the all situation that .oosted a num.er of 54t/ )ompanies asso#iated with multinational in the Insuran#e Se#tor to gi4e .efitting #ompetition to the esta.lished .ehemoth *ota+ in pri4ate se#tor1 we #ome at the #on#lusion that

There are 4er& tough #ompetitions among the pri4ate insuran#e #ompanies on the le4el of new trend of ad4ertising to lull a ma'or part of )ustomers/ *ota+ is not left .ehind in the present ra#e of ad4ertisement/ The entr& of more 54t/ 5la&ers in the Insuran#e Se#tor has e=panded the produ#t segment to meet the different le4el of the requirement of the #ustomers/ It has .rought a.out greater #hoi#e to the #ustomers/

*ota+ has 4ast mar+et and 4er& firm grip on its traditional #ustomers and monopol& of life insuran#e produ#ts/

IR A is also pla&ing 4er& #omprehensi4e role .& regulating norms mandating to pri4ate pla&ers in this se#tor1 that in#reases the #onfiden#e le4el of the #ustomers to the pri4ate pla&ers/

%%

Suggestions

The stud& has pro4ided with the useful data from the respondents/ There has a lot to .e re#ommended/ Following are the re#ommendations9

There is a need for .etter promotion for the in4estment produ#ts 3 ser4i#es/ The .an+ should ad4ertise its produ#ts through tele4ision .e#ause it will rea#h to the masses/

More returns should .e pro4ided on Insuran#e plans/

As the .an+ pro4ides the Insuran#e fa#ilit& to its #ustomers/ It should pro4ide this fa#ilit& .& tie up with the other Insuran#e organi>ations as well/ The main reason is that1 the entire #ustomers do not want Insuran#e of onl& one #ompan&/ The& should ha4e #hoi#e while sele#ting a suita.le Insuran#e plans/ This will definitel& add to the goodwill 3 profit for the .an+/

%:

Ta"$e of Contents Cha4ter 0 &articu$ars Introduction to su"?ect %/% )ustomer satisfa#tion %/: Insuran#e %/; )lassifi#ation of insuran#e %/@ 6istor& of Insuran#e se#tor in India %/B IR A %/J Re4iew of ,iterature / Introduction of KOTAK LIFE INS'RANCE :/% A.out *ota+ ,ife Insuran#e :/: 0ision and Mission :/; 5rofile of Organi>ation :/@ Re#ent A#hie4ements :/B 5rodu#t range of #ompan& :/J Mar+et share of #ompan& :/F S?OT Anal&ses 2 O"?ecti#es F Research !ethodo$og% ;/% O.'e#ti4e ;/: Sur4e& and Resear#h ;/; Sour#es of ;/@ ,imitations E A Data &resentation< Ana$%sis< and Inter4retation Summar% B/%)on#lusion B/:Suggestion 3 B Refrences A44endi6 F/% Finan#ial Statements F/: Muestionnaire %; 3153D 3D5B2 A35AB AB5AC AD ata 2D5E1 E0 E/ E/5E2 EE5AA /A5/B /C /D 2152/ 2/52E 2A 2352B 0A 0350B 0C5/1 /15// //5/2 /25/A &age No.

%@

Cha4ter50
Introduction to Su"?ect7
0.0 Customer Satisfaction7 )ustomer satisfa#tion1 a term frequentl& used in mar+eting1 is a measure of how produ#ts and ser4i#es supplied .& a #ompan& meet or surpass #ustomer e=pe#tation/ )ustomer satisfa#tion is defined as <the num.er of #ustomers1 or per#entage of total #ustomers1 whose reported e=perien#e with a firm1 its produ#ts1 or its ser4i#es !ratings$ e=#eeds spe#ified satisfa#tion goals/< In a sur4e& of nearl& :DD senior mar+eting managers1 F% per#ent responded that the& found a #ustomer satisfa#tion metri# 4er& useful in managing and monitoring their .usinesses/ It is seen as a +e& performan#e indi#ator within .usiness and is often part of a Balan#ed S#ore#ard/ In a #ompetiti4e mar+etpla#e where .usinesses #ompete for #ustomers1 #ustomer satisfa#tion is seen as a +e& differentiator and in#reasingl& has .e#ome a +e& element of .usiness strateg&/ <?ithin organi>ations1 #ustomer satisfa#tion ratings #an ha4e powerful effe#ts/ The& fo#us emplo&ees on the importan#e of fulfilling #ustomersG e=pe#tations/ Furthermore1 when these ratings dip1 the& warn of pro.lems that #an affe#t sales and profita.ilit&/ These metri#s quantif& an important d&nami#/ ?hen a .rand has lo&al #ustomers1 it gains positi4e wordCofC mouth mar+eting1 whi#h is .oth free and highl& effe#ti4e/< Therefore1 it is essential for .usinesses to effe#ti4el& manage #ustomer satisfa#tion/ To .e a.le do this1 firms need relia.le and representati4e measures of satisfa#tion/ <In resear#hing satisfa#tion1 firms generall& as+ #ustomers whether their produ#t or ser4i#e has met or e=#eeded e=pe#tations/ Thus1 e=pe#tations are a +e& fa#tor .ehind satisfa#tion/ ?hen #ustomers ha4e high e=pe#tations and the realit& falls short1 the& will .e disappointed and will li+el& rate their e=perien#e as less than satisf&ing/ For this reason1 a lu=ur& resort1 for e=ample1 might re#ei4e a lower satisfa#tion rating than a .udget motelNe4en though its fa#ilities and ser4i#e would .e deemed superior in Aa.soluteA terms/<

%B

0./ Insurance7

Life Insurance7 ,ife insuran#e is a form of insuran#e that pa&s monetar& pro#eeds upon the death of the insured #o4ered in the poli#&/ Essentiall&1 a life insuran#e poli#& is a #ontra#t .etween the named insured and the insuran#e #ompan& wherein the insuran#e #ompan& agrees to pa& an agreed upon sum of mone& to the insuredAs named .enefi#iar& so long as the insuredAs premiums are #urrent/ ?ith a large population and the untapped mar+et area of this population insuran#e happens to .e a 4er& .ig opportunit& in India/ Toda& it stands as a .usiness growing at the rate of %BC :DE annuall&/ Together with .an+ing ser4i#es1 it adds a.out F per#ent to the #ountr&Gs 8 5/ In spite of all this growth statisti#s of the penetration of the insuran#e in the #ountr& is 4er& poor/ Nearl& HDE of Indian populations are without life insuran#e #o4er and the health insuran#e/ This is an indi#ator that growth potential for the insuran#e se#tor is immense in India/

%J

It was due to this immense growth that the regulations were introdu#ed in the insuran#e se#tor and in #ontinuation (Malhotra )ommittee- was #onstituted .& the go4ernment in %II; to e=amine the 4arious aspe#ts of the industr&/ The +e& element of the reform pro#ess was parti#ipation of o4erseas insuran#e #ompanies with :JE #apital/ )reating a more #ompetiti4e finan#ial s&stem suita.le for the requirements of the e#onom& was the main idea .ehind this reform/ Sin#e then the insuran#e industr& has gone through man& #hanges/ The li.erali>ation of the industr& the insuran#e industr& has ne4er loo+ed .a#+ and toda& stand as one of the most #ompetiti4e and e=ploring industr& in India/ The entr& of the pri4ate pla&ers and the in#reased use of the new distri.ution are in the limelight toda&/ The use of new distri.ution te#hniques and the IT tools has in#reased the s#ope of the industr& in the longer run/ Insuran#e is the .usiness of pro4iding prote#tion against finan#ial aspe#ts of ris+1 su#h as those to propert&1 life health and legal lia.ilit&/ It is one method of a greater #on#ept +nown as ris+ management Kwhi#h is the need to mange un#ertaint& on a##ount of e=posure to loss1 in'ur&1 disad4antage or destru#tion/ The .usiness of insuran#e is related to the prote#tion of the e#onomi# 4alues of assets/ E4er& asset has a 4alue/ The asset would ha4e .een #reated through the efforts of the owner/ The asset is 4alua.le to the owner1 .e#ause he e=pe#ts to get some .enefit from it/ The .enefit ma& .e an in#ome or in some other form/ In India1 insuran#e .egan in %H%H with life insuran#e .eing transa#ted .& an English #ompan&/ The first insuran#e #ompan& was the Bom.a& mutual assuran#e so#iet& ltd1 formed in %HFD in Mum.ai/ Insuran#e helps to redu#e the #onsequen#es of ad4erse situation/ Insuran#e is the method of spreading and transfer of ris+/ The fortunate man& who are e=posed to some or similar ris+ shares loss of the unfortunate/ Insuran#e does not prote#t the assets .ut onl& #ompensates the e#onomi# or finan#ial loss/

%F

In insuran#e the insured ma+es pa&ment #alled (premiums- to an insurer1 and in return is a.le to #laim a pa&ment from the insurer if the insured suffers a defined t&pe of loss/ This relationship is usuall& drawn up in a formal legal #ontra#t/ Insuran#e #ompanies also earn in4estment profits1 .e#ause the& ha4e the use of the premium mone& from the time the& re#ei4e it until the time the& need it to pa& #laims/ This mone& is #alled the float/ ?hen the in4estments of float are su##essful the& ma& earn large profits1 e4en if the insuran#e #ompan& pa&s out in #laims e4er& penn& re#ei4ed as premiums/ In fa#t1 most insuran#e #ompanies pa& out more mone& than the& re#ei4e in premiums/ The e=#ess amount that the& pa& to poli#&holders is the #ost of float/ An insuran#e #ompan& will profit if the& in4est the mone& at a greater return than their #ost of float/ An insuran#e #ontra#t or poli#& will set out in detail the e=a#t #ir#umstan#es under whi#h a .enefit pa&ment will .e made and the amount of the premiums/ Marine insuran#e is the oldest t&pe of insuran#e and one of the earliest re#ords of a marine poli#& relates to a Mediterranean 4o&age in %;@F/ This was followed .& life insuran#e some ;DD &ears later/ Fire insuran#e1 howe4er1 did not .egin until after the 8reat fire of ,ondon in %JJJ/ In India all the three insuran#e de4eloped as under

Fire Insurance !arin insurance Life Insurance 0.2 C$assification of insurance7

The insuran#e industr& in India #an .roadl& #lassif& in two parts/ The& are/ 08 Life insurance. /8 Non5$ife 9genera$8 insurance.

08 Life insurance75
Traditionall&1 life insuran#e used to pro4ide finan#ial prote#tion to &our famil& and dependents in the e4ent of an& unforeseen e4ent or &our untimel& death/ But nowada&s1 life insuran#e has .e#ome s&non&mous with sa4ings1 wealth generation and prote#tion/ ,ife insuran#e #ompaniesCthese da&sCpro4ide plans through whi#h &ou #an not onl& se#ure the %H

finan#ial future of &our dependents in the e4ent of death .ut also .uild wealth for them and .e finan#iall& se#ure from e4entualities su#h as disease and disa.ilit&/ In %H%H British introdu#ed to India1 with the esta.lishment of the oriental life insuran#e #ompan& in )al#utta/ The first Indian owned ,ife Insuran#e )ompan&L the Bom.a& mutual life assuran#e so#iet& was set up in %HFD/ The life insuran#e a#t1 %I%: was the first statuar& measure to regulate the life insuran#e .usiness in India/ In %IH;1 the earlier legislation was #onsolidated and amended .& the insuran#e a#t1 %I;H1 with #omprehensi4e pro4isions for detailed effe#ti4e #ontrol o4er insuran#e/ The union go4ernment had opened the insuran#e se#tor for pri4ate parti#ipation in %III1 also allowing the pri4ate )ompanies to ha4e foreign equit& up to :JE/ Following the opening up of the insuran#e se#tor1 %: pri4ate se#tor #ompanies ha4e entered the life insuran#e .usiness/

Different T%4es of Life Insurance &$ans7

Traditiona$ $ife insurance 4$ans7 Traditional life insuran#e plans1 also +nown as nonCunit lin+ed insuran#e plans1 ensure that the ma'orit& of the in4estments made .& the poli#&holders are in to safe de.t instruments/ These plans are ideal for ris+Ca4erse in4estors as the& pro4ide assuran#e of returns to a large e=tent/

'nit Lin ed Insurance &$ans 9'LI&s87 U,I5s1 also +nown as mar+etClin+ed life insuran#e plans1 allow for in4estments made .& the poli#&holders to get e=posed to equities/ U,I5s are suited for #ustomers who aim for wealth #reation o4er a long term/

:enefits of $ife insurance7

,ife insuran#e is required .e#ause of the following fa#tors C

%I

,ife insuran#e ta+es #are of those who are finan#iall& dependent on &ou e4en when &ou are not around to loo+ after them/ Retirement planning ta+es #are of &our retirement1 as there is no guarantee of a #onsistent in#ome post retirement/ The e=penses &ou ma& in#ur in future will +eep in#reasing due to inflation1 and thus e4en a flu#tuation in &our in#ome ma& lead to a #ompromised lifest&le/ Sa4ings plan ena.les indi4iduals to se#ure their finan#ial future .& helping &ou to get attra#ti4e returns/

/8 Non5$ife 9genera$8 Insurance75

Triton insuran#e #o/ ltd was the first general insuran#e #ompan& to .e esta.lished in India in %HBD1 whose shares were mainl& held .& the British/ The first general insuran#e #ompan& to .e set up .& an Indian was Indian mer#antile insuran#e #o/ ,td/1 whi#h was sta.ili>ed in %IDF/ There emerged man& a pla&er on the Indian s#ene thereafter/ The general insuran#e .usiness was nationali>ed after the promulgation of 8eneral Insuran#e )orporation !8I)$ OF India undertoo+ the postCnationali>ation general insuran#e .usiness/

0.E :rief *istor% of the Insurance Sector in India

The .usiness of life insuran#e in India in its e=isting form started in India in the &ear %H%H with the esta.lishment of the Oriental ,ife Insuran#e )ompan& in )al#utta/ The stor& of insuran#e is pro.a.l& as old as the stor& of man+ind/ The same instin#t that prompts modern .usinessmen toda& to se#ure themsel4es against loss and disaster e=isted in primiti4e men also/ The& too sought to a4ert the e4il #onsequen#es of fire and flood and loss of life and were willing to ma+e some sort of sa#rifi#e in order to a#hie4e se#urit&/ Though the #on#ept of insuran#e is largel& a de4elopment of the re#ent past1 parti#ularl& after the industrial era K past few #enturies K &et its .eginnings date .a#+ almost JDDD &ears/

:D

,ife Insuran#e in its modern form #ame to India from England in the &ear %H%H/ Oriental ,ife Insuran#e )ompan& started .& Europeans in )al#utta was the first life insuran#e #ompan& on Indian Soil/ All the insuran#e #ompanies esta.lished during that period were .rought up with the purpose of loo+ing after the needs of European #ommunit& and these #ompanies were not insuring Indian nati4es/ 6owe4er1 later with the efforts of eminent people li+e Ba.u Mutt&lal Seal1 the foreign life insuran#e #ompanies started insuring Indian li4es/ But Indian li4es were .eing treated as su.Cstandard li4es and hea4& e=tra premiums were .eing #harged on them/ Bom.a& Mutual ,ife Assuran#e So#iet& heralded the .irth of first Indian life insuran#e #ompan& in the &ear %HFD1 and #o4ered Indian li4es at normal rates/ Starting as Indian enterprise with highl& patrioti# moti4es1 insuran#e #ompanies #ame into e=isten#e to #arr& the message of insuran#e and so#ial se#urit& through insuran#e to 4arious se#tors of so#iet&/ Bharat Insuran#e )ompan& !%HIJ$ was also one of su#h #ompanies inspired .& nationalism/ The Swadeshi mo4ement of %IDBC%IDF ga4e rise to more insuran#e #ompanies/ The United India in Madras1 National Indian and National Insuran#e in )al#utta and the )oCoperati4e Assuran#e at ,ahore were esta.lished in %IDJ/ In %IDF1 6industan )oCoperati4e Insuran#e )ompan& too+ its .irth in one of the rooms of the Oorasan+o1 house of the great poet Ra.indranath Tagore1 in )al#utta/ The Indian Mer#antile1 8eneral Assuran#e and Swadeshi ,ife !later Bom.a& ,ife$ were some of the #ompanies esta.lished during the same period/ 5rior to %I%: India had no legislation to regulate insuran#e .usiness/ In the &ear %I%:1 the ,ife Insuran#e )ompanies A#t1 and the 5ro4ident Fund A#t were passed/ The ,ife Insuran#e )ompanies A#t %I%: made it ne#essar& that the premium rate ta.les and periodi#al 4aluations of #ompanies should .e #ertified .& an a#tuar&/ But the A#t dis#riminated .etween foreign and Indian #ompanies on man& a##ounts1 putting the Indian #ompanies at a disad4antage/ The first two de#ades of the twentieth #entur& saw lot of growth in insuran#e .usiness/ From @@ #ompanies with total .usinessCinCfor#e as Rs/::/@@ )rore1 it rose to %FJ #ompanies with total .usinessCinCfor#e as Rs/:IH )rore in %I;H/ uring the mushrooming of insuran#e #ompanies man& finan#iall& unsound #on#erns were also floated whi#h failed misera.l&/ The Insuran#e A#t %I;H was the first legislation go4erning not onl& life insuran#e .ut also nonC life insuran#e to pro4ide stri#t state #ontrol o4er insuran#e .usiness/ The demand for nationali>ation of life insuran#e industr& was made repeatedl& in the past .ut it gathered momentum in %I@@ when a .ill to amend the ,ife Insuran#e A#t %I;H was introdu#ed in the ,egislati4e Assem.l&/ 6owe4er1 it was mu#h later on the %Ith of Oanuar& %IBJ that life insuran#e in India was nationali>ed/ A.out %B@ Indian insuran#e #ompanies1 %J nonCIndian :%

#ompanies and FB pro4ident were operating in India at the time of nationali>ation/ Nationali>ation was a##omplished in two stagesL initiall& the management of the #ompanies was ta+en o4er .& means of an Ordinan#e1 and later1 the ownership too .& means of a #omprehensi4e .ill/ The 5arliament of India passed the ,ife Insuran#e )orporation A#t on the %Ith of Oune %IBJ1 and the ,ife Insuran#e )orporation of India was #reated on %st Septem.er1 %IBJ1 with the o.'e#ti4e of spreading life insuran#e mu#h more widel& and in parti#ular to the rural areas with a 4iew to rea#h all insura.le persons in the #ountr&1 pro4iding them adequate finan#ial #o4er at a reasona.le #ost/

0.A The Insurance Regu$ator% and De#e$o4ment Authorit% 9IRDA87

Insuran#e Regulator& 3 e4elopment Authorit& is regulator& and de4elopment authorit& under 8o4ernment of India in order to prote#t the interests of the poli#&holders and to regulate1 promote and ensure orderl& growth of the insuran#e industr&/ It is .asi#all& a ten mem.ersA team #omprising of a )hairman1 fi4e full time mem.ers and four partCtime mem.ers1 all appointed .& 8o4ernment of India/ This organi>ation #ame into .eing in %III after the .ill of IR A was passed in the Indian parliament/ &o;ers and Functions of IRDA

It issues the appli#ants in insuran#e arena1 a #ertifi#ate of registration as well as renewal1 modifi#ation1 withdrawal1 suspension or #an#ellation of su#h registrations/ It prote#ts the interests of the poli#& holders in an& insuran#e #ompan& in the matters related to the assignment of poli#&1 nomination .& poli#& holders1 insura.le interest1 and resolution of insuran#e #laim1 su.mission 4alue of poli#& and other terms and proposals in the #ontra#t/

It also spe#ifies o.ligator& #redentials1 #ode of #ondu#t and pra#ti#al instru#tions for mediator as well as the insuran#e #ompan&/ Apart from this1 it also defines the #ode of #ondu#t for the sur4e&ors and loss assessors in4ol4ed with the insuran#e .usiness/

::

One of the ma'or fun#tions of IR A in#ludes endorsing #ompeten#e in the insuran#e .usiness/ Apart from this1 upholding and regulating professional organi>ations in insuran#e and reCinsuran#e .usiness is also a ma'or dut& of IR A/

IR A is also entitled to for as+ing information1 underta+ing inspe#tion and in4estigating the audit of the insurers1 mediators1 insuran#e intermediaries and other organi>ations related to the insuran#e se#tor/

It is also #on#erned with the regulation of the rates1 profits1 pro4isions and #onditions that ma& .e offered .& insurers in respe#t of general insuran#e .usiness if it is not #ontrolled or regulated .& the Tariff Ad4isor& )ommittee/

It is also entitled to super4ise the fun#tioning of the Tariff Ad4isor& )ommittee/ IR A spe#ifies the terms and pattern in whi#h .oo+s of a##ounts are to .e maintained and statement of a##ounts shall .e pro4ided .& insurers and other insuran#e mediators/

Im4act Of IRDA On Indian Insurance Sector The #reation of IR A has .rought re4olutionar& #hanges in the Insuran#e se#tor/ In last %D &ears of its esta.lishment the insuran#e se#tor has seen tremendous growth/ ?hen IR A #ame into .eingL onl& pla&ers in the insuran#e industr& were ,ife Insuran#e )orporation of India !,I)$ and 8eneral Insuran#e )orporation of India !8I)$1 howe4er in last de#ade :; new pla&ers ha4e emerged in the filed of insuran#e/ The IR A also su##essfull& deals with an& dis#repan#& in the insuran#e se#tor/

0.3 Re#ie; of $iterature

0. Dohert% and Dionne < found that1 some )urrent Insuran#e Mar+ets Are Trou.led .& the 5resen#e of S&stemati# Ris+ Or .& the Ina.ilit& of the 5arties to Spe#if& the istri.ution for Aggregate ,oss/ Su#h )ir#umstan#es 5artl& )hara#terise the Topi#al <,ia.ilit& Insuran#e )risis</ ?e )ompare the 5erforman#e of Alternati4e 0ehi#les for Ris+ Sharing Under These )ir#umstan#es/ Spe#ifi#all&1 ?e Show That Mutals Appear to Outperform Sto#+ Insuran#e )ompanies ?hen There Is Undi4ersifia.le Ris+/ /. &au$% and *irth< propose a guaranteed renewa.ilit& !8R$ insuran#e in whi#h a sequen#e of premiums would ena.le insurers to .rea+ e4en and would .e #hosen .& .oth lowC and highCris+

:;

.u&ers1 whether or not the& had suffered a loss/ The premium s#hedule would #ontinuall& de#line o4er time1 as the insurer #olle#ts more information to determine who the lowCris+ indi4iduals lea4e for the spot mar+et/ The #on#luding portion of the arti#le dis#usses the limitations of a 8R poli#& in the health and en4ironmental lia.ilit& area1 the most serious .eing insta.ilit& in estimates of underl&ing loss trends/ )op&right %IIB .& *luwer A#ademi# 5u.lisher

2. =heng1 Liu and Deng< this paper ma+es a new assessment and #omparison of insuran#e growth le4els of #ertain #ountries as well as #ertain e#onomi# groups1 and further dis#usses the poli#& impli#ations/ The main #on#lusions of this paper are as follows/ First1 it is ne#essar& to ha4e a new re#ognition of the international insuran#e growth pattern9 the relati4e le4el of insuran#e growth in de4eloped mar+ets has de#lined as #ompared with that indi#ated .& traditional indi#ators1 and the relati4e le4el of insuran#e growth in de4eloping mar+ets has in#reased/

@/

(uorinen< >ar#inen and Lehtine< e=plained1 the widel& used strateg& to #ope with the dangers of foreign in4estment .& hedging against potential losses is politi#al ris+ insuran#e/ All multinational #orporations are su.'e#t to politi#al ris+ perils/Broadl& spea+ing1 there are si= different t&pes of politi#al ris+9 #onfis#ation1 e=propriation and nationali>ationL #ontra#t repudiation and frustrationL unfair regulator& en4ironmentL #urren#& in#on4erti.ilit&L #ontingen#&L and war ris+/ Similarl&1 poli#ies a4aila.le #an .e defined a##ording to these si= #ategories/

B/

+arcia< Camino and !o$ero <in this paper offers a diagnosis of the #urrent stage

of de4elopment of insuran#e firms operating in Belgium and Spain a##ording to the differential patterns the& e=hi.it in the adoption of the #on#ept of mar+eting/ The theoreti#al approa#h we use here has .een defined in order to in#lude three #riti#al dimensions9 the organi>ational pro#ess that en#ompasses the mar+eting adoption #on#eptL the e=tent to whi#h differential mar+eting patterns are related to .usiness and e#onomi# performan#eL and finall& to identif& the influen#e of managerial de#isionCma+ing and their planned patterns of strategi# .eha4ior in the de4elopment and ongoing pro#ess of mar+eting adoption/ :@

J/

&au$% and !ar < in this paper dis#uss the theoreti#al and empiri#al findings

#on#erning insuran#e reim.ursement of patients or pro4iders .& insurers operating in pri4ate mar+ets or in mi=ed pu.li# and pri4ate s&stems/ Most insuran#es other than health insuran#e do not <reim.urse<L instead the& pa& #ash to insureds #onditional on the o##urren#e of a prespe#ified e4ent/ In #ontrast1 health insuran#e ties the pa&ment to medi#al e=penditures or #osts in#urred in some fashion1 often ma+ing pa&ments dire#tl& to medi#al pro4iders/

F/

>an#r% and A$ain< e=plained the pra#ti#e of mutual insuran#e is #onditioned .& two t&pes of transa#tion #osts9 <asso#iation< #osts in esta.lishing lin+s with insuran#e partners and <e=tra#tion< #osts in using these lin+s to implement insuran#e transfers/ ata on insuran#eCmoti4ated water e=#hanges among households along two irrigation #anals in 5a+istan show that householdGs e=#hange .ilaterall& with neigh.ors and famil& mem.ers .ut the ma'orit& e=#hange with mem.ers of tightl& +nit #lusters/

H/

F$eur"ae% and :ossert< anal&>e the equit& properties of insuran#e premium s#hemes where agents are partitioned into groups with different a4erage a##ident pro.a.ilities and ea#h indi4idual has to pa& a premium a##ording to the a4erage pro.a.ilit& of the group to whi#h it .elongs/ In parti#ular1the& e=amine the question whether #hoosing finer partitions to define these groups generates more equita.le situations than #oarser groups/ Though it turns out that partitioning the agents into finer groups #an ne4er .e ,oren> dominated .& the #oarser partition1 it #annot .e guaranteed that finer partitions represent impro4ements o4er #oarser ones e=#ept in 4er& restri#ti4e #ir#umstan#es/

I/

S$eet< e=plained that so#ial insuran#e arrangements that are optimal from the perspe#ti4e of a utilitarian planner #onfronting a population of pri4atel& informed agents frequentl& e=hi.it an <immiseration< propert& C with pro.a.ilit& % an agentAs #ontinuation utilit& will drift downwards to its minimal le4el/ Thus1 the e= ante optimal pro4ision of in#enti4es implies se4ere e= post inequalit& and are time :B

in#onsistent/ This paper introdu#es an additional fri#tion9 it assumes that the utilitarian planner #an not #ommit/

%D/

:hattachar%a< +o$dman and Sood< e=plained that se#ondar& life insuran#e mar+ets are growing rapidl&/ From nearl& no transa#tions in %IHD1 a wide 4ariet& of similar produ#ts in this mar+et has de4eloped1 in#luding 4iati#al settlements1 a##elerated death .enefits1 and life settlements and as the population ages1 these mar+ets will .e#ome in#reasingl& popular/

C*A&TER5/
Introduction of KOTAK LIFE INS'RANCE

/.0 A"out Kota !ahindra O$d !utua$ Life Insurance7 *ota+ Mahindra Old Mutual ,ife Insuran#e ,td is a F@9:J 'oint 4enture .etween *ota+ Mahindra Ban+ ,td/1 its affiliates and Old Mutual pl#/ The #ompan& started operations in :DD%1 and stri4es to offer its #ustomers outstanding 4alue through high #ustomer empath&1 #onsistent and .en#hmar+ed ser4i#e and a suite of produ#ts that le4erage the #om.ined prowess of prote#tion and long term sa4ings/ The #ompan& #o4ers o4er @ million li4es and is one of the fastest growing insuran#e #ompanies in India/ Esta.lished in %IHB1 the *ota+ Mahindra 8roup is one of IndiaGs leading finan#ial ser4i#es #onglomerates/ In Fe.ruar& :DD;1 *ota+ Mahindra Finan#e ,td/ !*MF,$1 the 8roupGs flagship #ompan&1 re#ei4ed a .an+ing li#ense from the Reser4e Ban+ of India !RBI$/ ?ith this1 *MF, .e#ame the first nonC.an+ing finan#e #ompan& in India to .e#ome a .an+ C *ota+ Mahindra Ban+ ,imited/ :J

The *ota+ Mahindra 8roup has a #onsolidated net worth of Rs %:1ID% #rore !appro= USP :/B .illion$ as on Mar#h ;%1 :D%:/ The group offers a wide range of finan#ial ser4i#es that en#ompass e4er& sphere of life/ From #ommer#ial .an+ing1 to sto#+ .ro+ing1 mutual funds1 life insuran#e and in4estment .an+ing1 the group #aters to the di4erse finan#ial needs of indi4iduals and the #orporate se#tor/ The group has a wide distri.ution networ+ through .ran#hes and fran#hisees a#ross India1 and international offi#es in ,ondon1 New "or+1 )alifornia1 u.ai1 A.u ha.i1 Bahrain1 Mauritius and Singapore

:F

:H

:I

/./ (ision and !ission7 An uncommon "ond. Strengthened "% a common #ision. Apart from #ommon .eliefs1 4alues and o.'e#ti4es we .elie4e in the 4ision of a .etter tomorrow/ It is this deep 4eneer of faith that has .rought us together and fortified our .ond/ The g$o"a$ Indian financia$ ser#ices "rand Our #ustomers will en'o& the .enefits of dealing with a glo.al Indian .rand that .est understands their needs and deli4ers #ustomised pragmati# solutions a#ross multiple platforms/ ?e will .e a worldC#lass Indian finan#ial ser4i#es group/ Our te#hnolog& and .est pra#ti#es will .e .en#hmar+ed along international lines while our understanding of #ustomers will .e uniquel& Indian/ ?e will .e more than a repositor& of our #ustomersA sa4ings/ ?e1 the group1 will .e a single window to e4er& finan#ial ser4i#e in a #ustomerAs uni4erse/ The most 4referred em4$o%er in financia$ ser#ices A #ulture of empowerment #oupled with a spirit of enterprise1 attra#ts .right minds with an entrepreneurial strea+ to 'oin us and sta& with us/ ?or+ing with a homeCgrown1 professionall&Cmanaged #ompan&1 whi#h has partnerships with international leaders1 gi4es our people a perspe#ti4e that is uni4ersal as well as unique/ The most trusted financia$ ser#ices com4an% ?e will #reate an ethos of trust a#ross all our #onstituents/ Adhering to high standards of #omplian#e and #orporate go4ernan#e will .e an integral part of .uilding trust/ (a$ue creation 0alue #reation rather than si>e alone will .e our .usiness dri4er/

;D

/.2 !anagement O#er#ie;7 *ota+ ,ife Insuran#e wor+ as a team and ha4e a flat management stru#ture/ Our top management has man& &ears of e=perien#e whi#h has helped guide the #ompan& into a position of leadership/

Mr/ 8aurang Shah ire#tor

Mr/ 8 Muralidhar Managing ire#tor

Mr/ Sunil Sharma Appointed A#tuar&1 *ota+ Mahindra Old Mutual ,ife Insuran#e ,td

Mr/ Sudha+ar Shan.ag )hief In4estment Offi#er1 *ota+ Mahindra Old Mutual ,ife Insuran#e ,td

Mr/ Suresh Agarwal E=e#uti4e 0i#e 5resident and 6ead1 istri.ution 3 Strategi# Initiati4es Ms/ *irti 5atil Senior 0i#e 5resident and 6ead1 Information Te#hnolog&

/.E AC*IE(E!ENTS
;%

/113 Best equit& 6ouse in India .& Euro Mone& Best Equit& 6ouse in India .& Asia Mone&

/11B IndiaGs Best Equit& 6ouse in India .& Finan#e Asia Best Equit& 6ouse in India .& Euro Mone& Best Equit& 6ouse in India .& Asia Mone& Best India Equit& 6ouse .& IFR

/11C Best Bro+er in India .& Finan#e Asia Best Equit& 6ouse in India .& Euro mone&

/11D

Ran+ed no/% in si= #ategories in the Annual Euro mone& 5ri4ate Ban+ing Sur4e& 5oll for :DDI for India

Best In4estment Ban+ in India .& Finan#e Asia

Ran+ed Q% in the league ta.le for Boo+ runner2,ead Manager in pu.li# equit& offerings in terms of the 4alue of transa#tion #ompleted during fis#al :DDI a##ording to 5rime ata.ase/

/101 Best Bro+er In India .& Finan#e Asia

Topped the .est Mutual Fund 6ouse in the N T0 Business ,eadership Awards:D%D

Best Bond Fund 8roup O4er Three "ears .& ,ipper Fund Awards India Ran+ed the .est de.t fund o4er B &ears .& lipper for the *ota+ Bond Regular 5lan ;:

Ran+ed I)RAC MFRI and was the re#ipient of the Sil4er Awards .& I)RA for the

R*ota+ Bond Regular 5lanG

/100 Most 5opular In4entor Relation ?e.site for the Asia25a#ifi# Region )ondu#ted .& IR 8lo.al Ran+ings

Emerged winner in %J #ategories in the Euro mone& 5ri4ate Ban+ing 5oll:D%%1 in#luding the Best lo#al 5ri4ate Ban+/

/.3 &roduct Range7 &rotection &$ans Insuran#e 5rote#tion plans help &ou se#ure &our lo4ed onesA future against lifeAs un#ertainties/ A term life insuran#e poli#& is one where the person insured paid a #ertain premium periodi#all& and either re#ei4es the .enefits at the term or1 in the e4ent of the assured personAs death1 the famil& gets the .enefit/ These plans are quite #ostCeffe#ti4e as the& fo#us on pro4iding onl& life #o4er and no other returns/

*ota+ Saral Sura+sha *ota+ eCTerm2 eC5referred Term *ota+ ,oan 5rote#tion 5lan *ota+ Term 5lan2 5referred Term 5lan *ota+ Eternal ,ife 5lans

Retirement &$ans Retirement 5lanning ensures that &ou en'o& the same lifest&le whi#h &ou are used to and following the same ho..ies and pleasura.le a#ti4ities1 e4en &ears after &our retirement and do not depend upon &our +in for support/ A sound pension plan also guarantees the finan#ial independen#e of the famil& in the unfortunate e4ent of the insuredAs demise/

*ota+ )apital Multiplier 5lan *ota+ Retirement In#ome 5lan

;;

Sa#ings F In#estment &$ans The Sa4ings and In4estment 5lans wor+ as growth plans that help &ou ma=imi>e wealth #reation/ In the re#ent times1 life insuran#e produ#ts ha4e e4ol4ed .e&ond pro4iding 'ust Aris+ prote#tionA/ Toda&1 life insuran#e plans are attra#ti4e options for #reating wealth C an in4estment 4ehi#le that #an ma=imi>e returns/ Su#h in4estment plans gi4e &ou #ompetiti4e returns apart from added in#enti4es li+e .onuses/ These growth plans pro4ide the dual .enefits of finan#ial prote#tion as a ris+ #o4er and attra#ti4e returns o4er a long term/

*ota+ Assured In#ome 5lan *ota+ 5latinum *ota+ Single In4est Ad4antage *ota+ A#e In4estment 5lan *ota+ ?ealth Insuran#e *ota+ Se#ure In4est Insuran#e *ota+ Endowment 5lan *ota+ Mone& Ba#+ 5lan *ota+ 5remium Return 5lan *ota+ Sura+shit Oee4an

Chi$d &$ans ?hether it is to fund an edu#ation or a new age #areer #hoi#e or a fair&tale wedding or an& other purpose for the well .eing of &our +id through his2her #hildhood and teenage &ears1 a #hild plan poli#& pro4ides for all the .enefits and helps &ou plan a finan#iall& se#ure future for &our #hild/

*ota+ 6eadstart )hild Assure *ota+ )hild Ad4antage 5lan

+rou4 &$ans 5ro4iding &our emplo&ees with 4arious group life insuran#e poli#ies is one wa& of showing them that &ou trul& #are a.out them/ ?hen &our emplo&ees are happ& and satisfied1 the& automati#all& ta+e pride in wor+ing for &our organi>ation whi#h1 in turn1 in#reases &our organisationAs produ#ti4it& and output/ Thus1 group life insuran#e poli#ies not onl& help &ou retain emplo&ee .ut also impro4e their effi#ien#& and in the long term1 .oost profits/

;@

*ota+ 8roup Shield *ota+ 8roup Assure *ota+ Term 8rouplan *ota+ 8ratuit& 8roup 5lan *ota+ )reditCTerm 8rouplan *ota+ )omplete )o4er 8rouplan

Rura$ &$ans *ota+ 8ramin Bima "o'ana prote#ts &our lo4ed ones against un#ertainties and pro4ides &ou with guaranteed returns1 'ust li+e &our fi=ed deposit/ The plan allows &ou to pa& a oneCtime premium thus sa4ing &ou the hassle of annual pa&ments and also ensures that &ou get %/B times the a#tual prin#iple on maturit&/

*ota+ 8ramin Bima "o'ana

;B

/.3!ARKETS*ARE

;J

*ota+ Mahindra 8roup in India has mar+et share of :/:E/ It has a.ilit& to enter in the ad'a#ent mar+et1 whi#h will help it to grow further in finan#ial se#tor of India/ *ota+ Mahindra is a finan#ial firm in India fulfilling the finan#ial need of the pu.li#/ *ota+ Mahindra 8roup #ame into .eing in %IHB as *ota+ )apital Management Finan#e ,imited and the name #hanged to Kota !ahindra Finance $td/ in %IHJ when 6arish Mahindra and Anand Mahindra too+ it/ From Bill dis#ounting a#ti4it& in %IHJ it had entered into the ,ease and 6ire 5ur#hase Mar+et in %IHF/ The Auto Finan#e di4ision was started in %IID/ In the &ear %IIH *ota+ Mahindra 4entures into mutual Fund Mar+et with the laun#h of *ota+ !ahindra Asset !anagement Com4an%/ It got tied up with Old Mutual pl#/ and the Life Insurance :usiness in the &ear :DDD/ "ear :DD; saw the #on4ersion of *ota+ Mahindra Finan#e ,td/ into a )ommer#ial Ban+/ It is the first Indian )ompan& to do so/ In :DD@ it laun#hed a pri4ate equit& fund named India 8rowth Fund/ ,i+e all other &ears the :DDJ was also 4er& fruitful for this group as it .ought :BE sta+e held .& 8olden Sa#hs in *ota+ Mahindra )apital )ompan& and *ota+ Se#urities/ The ser4i#es offered .& *ota+ 8roup are9
o o o o o o o o o o o o o

Ban+ ,ife Insuran#e Mutual Funds Se#urities )ar Finan#e *ota+ Realit& Fund *ota+ 5ri4ate Equit& Institutional Equities In4estment Ban+ing *ota+ Mahindra International )ommer#ial .an+ing Sto#+ Bro+ing Finan#ial need of indi4iduals and #orporate are ta+en #are .& *ota+ Mahindra Ban+

;F

/.B S,OT Ana$%ses7

STREN+T*S7
I/

Financia$ Acumen C 6olds a sta.le and di4ersified portfolio and has re#ei4ed some of the highest ratings in finan#ial strength from industr&Gs independent rating agen#ies/ ;H

II/

Disci4$ined fund management C "ears of e=perien#e in asset management1 and a strong tra#+ re#ord in managing funds C .a#+ed .& the a##laimed e=pertise of Old Mutual pl#

III/

Inno#ati#eness C *nown for .eing an inno4ator in pro4iding worldC#lass pragmati# finan#ial solutions1 with a #onstant fo#us on #ustomi>ation and fle=i.ilit& 'nre$enting Customer Focus C A highl& #ommitted sales for#e1 with #ustomer satisfa#tion as the +e& dri4ing for#e C a ma'or differentiator Trans4arenc% in Ser#ices C ail& de#laration of fund performan#es1 regular performan#e .en#hmar+ing1 well regulated asset management1 and monthl& newsletter on mar+et updates

I0/

0/

,EAKNESSES7 Industr& in nas#ent stage/ Rural areas still not #o4ered/ Not 4er& +nown among Indian population/ ,a#+ of #redi.ilit& among the people .e#ause *ota+ .eing a pri4ate pla&er/ 5remiums are high as #ompared to its #ompetitors/ 0er& few .ran#hes in the #ountr&/ 5rodu#ts9

The poli#& doesnGt ha4e the surrender option .efore third &ear/ 5lan does not offer an& guarantee or assured return/ 5rodu#t profile is not 4er& #omprehensi4e/ Mortalit&1 management and administrati4e #harges are s+& s#rapping as
#ompared to its #ompetitors/

O&&ORT'NITIES7 ,i.erali>ation of Indian e#onom&/ As the industr& is growing the whole mar+et is 4irgin/

;I

 The whole pri4ate se#tor is opened to .e trapped e4en though the #ompetition is fier#e from go4ernment owned insuran#e #ompanies/ ItGs a 4olume .usiness that is e4en if the #ompan& has few good #orporate the turno4er #ease to in#rease .& manifold/ 5rodu#ts9 5reser4er funds loo+ good due to #omforta.le liquidit& in the e#onom& and there is little #han#e hi+e in shortCterm rate .& RBI/ Finan#e minister un4eiled a .udget fa4oring #onsumer spending1 .oosting demand and therefore higher e#onomi# growth/

T*REATS The go4ernment pla&ers will .e#ome aggressi4e thus growth is going to .e tough/ Entr& of other pla&ers is not ruled out/ Apprehension towards *ota+ .eing a pri4ate life insuran#e #ompan&/ ?e e=pe#t the industr& to rationali>e in future that is mergers and a#quisitions will happen1 whi#h will impa#t the industr& and *ota+ life fortunes/

5rodu#ts9 5ast performan#e of these plans is not indi#ati4e of the future performan#e of the plan/ The sum in4ested in the funds is su.'e#t to mar+et ris+s and there #an .e no assuran#e that the o.'e#ti4e of plan will .e a#hie4ed/ All .enefits pa&a.le under the poli#& are su.'e#t to ta= laws and other finan#ial ena#tment1 as the& e=ist from time to time/

@D

C*A&TER52
O"?ecti#es F Research !ethodo$og% 2.0 O"?ecti#e
The main of the present stud& of is a##omplish the following o.'e#ti4e/ %/To +now a.out .rand awareness of *ota+ ,ife Insuran#e and #ustomerGs preferen#e a.out *ota+ ,ife Insuran#e/ :/A##ording the mar+et sur4e& #ome +now a.out how mu#h potential of insuran#e mar+et in our #it&/ ;/ Training aims at re#ruiting ma=imum num.er of ,ife Ad4isors and to Sell the ma=imum poli#ies for the #ompan& and .ring the .usiness for the #ompan& whi#h e4er is going at the parti#ular point of time/

2./ S'R(E) AND RESEARC*

TITLE7 @%

To stud& the #ustomer satisfa#tion regarding of +ota+ mahindra life insuran#e/ TITLE >'STIFICATION9 The a.o4e title is self e=planator&/ The stud& deals mainl& with stud&ing the .u&ing pattern

in the insuran#e industr& with a spe#ial fo#us on *ota+ life Insuran#e/ The 4arious segments of the mar+ets di4ided in terms of Insuran#e Needs1 Age groups 1 Satisfa#tion le4els et# will also studied/ SI+NIFI+ANCE OF T*E ST'D)7 This is a limited stud& whi#h ta+es into #onsideration the responses of %DD people/ This data #an .e e=trapolated to ta+e in the trends a#ross the industr&/ The signifi#an#e for the industr& lies in stud&ing these trends that emerge from the stud&/ It is a rapidl& #hanging and e4ol4ing se#tor/ 5eople are onl& .eginning to wa+e up to its 4ast possi.ilities/ A stud& li+e this #an attempt to guide the future of the industr& .ased on #urrent trends/

SCO&E OF T*E ST'D)7

The data for the resear#h was #olle#ted from different >ones of ,udhiana )it&/ &ROD'CT SCO&E7 The resear#h was #ondu#ted to find out a.out the preferen#e and per#eption of the target population for different insuran#e produ#ts/ The in4estment pattern and strategies were dis#o4ered through this resear#h/ Also the awareness a.out *ota+ ,ife Insuran#e was also found out/

TAR+ET &O&'LATION7
The target population in#luded most of the #ategories of people li+e Ser4i#e #lass1 .usiness #lass1 students1 houseCwi4es et#/ RESEARC* DESI+N7 The resear#h is primaril& .oth e=plorator& as well as des#ripti4e in nature/ The sour#es of information are .oth primar& 3 se#ondar&/ A wellCstru#tured questionnaire was prepared and personal inter4iews were #ondu#ted to #olle#t the #ustomerGs per#eption and .u&ing .eha4ior1 through the questionnaire/

2.2Sources of Data

@:

DATA COLLECTION7 &rimar% Data7 In 5rimar& data1 stru#tured questionnaire was made and the target respondents were as+ed to fill the questionnaire/ Thus a large amount of data was #olle#ted/ Secondar% Data7 Se#ondar& data was #olle#ted from 4arious sour#es su#h as internet1 news papers1 pu.li#ations and finan#ial maga>ines/ @'ESTIONNAIRE DESI+N7 O.'e#ti4e was to ma+e respondents little familiar with the #onte=t of the questions/ This was also aimed at #olle#ting data a.out the sample profile thatGll .e su.sequentl& anal&>ed so that the s#ope of the pro'e#t is full& e=plored/ Initiall&1 a rough draft was prepared +eeping in mind the o.'e#ti4e of the resear#h/ A pilot stud& was done in order to +now the a##ura#& of the Muestionnaire/ The final Muestionnaire was arri4ed onl& after #ertain important #hanges were done/ Thus m& sampling #ame out to .e 'udgmental and #on4enient/

2.E Limitations7
Some of the diffi#ulties and limitations fa#ed .& me during m& training are as follows9

Lac of a;areness among the 4eo4$e K This is the .iggest limitation

found in this se#tor/ Most of the people are not aware a.out the importan#e and the ne#essit& of the insuran#e in their life/ The& are not aware how useful life insuran#e #an .e for their famil& mem.ers if something happens to them/

&erce4tion of the 4eo4$e to;ards Insurance sector G 5eople still

#onsider insuran#e 'ust as a Ta= sa4ing de4i#e/ So toda& also there is alwa&s a rush to

@;

.u& an Insuran#e 5oli#& onl& at the end of the finan#ial &ear li+e Oanuar&1 Fe.ruar& and Mar#h ma+ing the other I months dr& for this .usiness/

Insurance does not gi#e good returns G Still toda& people thin+ that

Insuran#e does not gi4e good returns/ The& are not aware of the modern Unit ,in+ed Insuran#e 5lans whi#h are offered .& most of the 5ri4ate se#tor pla&ers/ The& are still under the per#eption that if the& ta+e Insuran#e the& will get onl& BCJE returns whi#h is not true nowada&s/ Nowada&s most of the modern Unit ,in+ed Insuran#e 5lans gi4es returns whi#h are man& times more than that of .an+ Fi=ed deposits1 National sa4ing #ertifi#ate1 5ost offi#e deposits and 5u.li# pro4ident fund/

Lac

of a;areness a"out the earning o44ortunit% in the Insurance

sector G 5eople still toda& are not aware a.out the earning opportunit& that the Insuran#e se#tor gi4es/ After the pri4ati>ation of the insuran#e se#tor man& pri4ate giants ha4e entered the insuran#e se#tor/ These pri4ate #ompanies in order to .eat the #ompetition and to in#rease their Insuran#e Ad4isors to in#rease their rea#h to the #ustomers are gi4ing 4er& high #ommission rates .ut people are not aware of that/

Increased com4etition G Toda& the #ompetition in the Insuran#e se#tor

has .e#ame 4er& stiff/ )urrentl& there are %@ ,ife Insuran#e #ompanies wor+ing in India in#luding the ,I) !life insuran#e )orporation of India$/ Toda& ea#h and e4er& #ompan& is tr&ing to in#rease their Insuran#e Ad4isors so that the& #an in#rease their rea#h in the mar+et/ This situation has #reated a s#enario in whi#h to re#ruit ,ife insuran#e Ad4isors and to sell life Insuran#e 5oli#& has .e#ame 4er& 4er& diffi#ult/

@@

Cha4ter5E
Data Ana$%sis and Inter4retation

The sur#e% ;hich ;as conducted 4ro#ided ;ith the fo$$o;ing resu$ts. The sam4$e siHe ;as ta en as 011.

Note7 A$$ the resu$ts sho;n in the gra4hs are in 4ercentage.

1. Out of %DD there were JFE respondents who were emplo&ed in some go4ernment or pri4ate organi>ation/ Rests of them were engaged in their own .usiness1 profession1 or edu#ation/

@B

2. Out of %DD1 H:E respondents were ha4ing at least one insuran#e poli#&/ Rests of them were either ha4ing no +nowledge a.out the e=isting insuran#e produ#ts in the mar+et or were least interested in .u&ing an& +ind of insuran#e poli#& for them/

@J

3. Out of %DD1 JHE ha4e life insuran#e1 :BE ha4e nonClife insuran#e and FE ha4e .oth life and nonClife insuran#e/ NonClife insuran#e in#luded 4ehi#le insuran#e1 house2offi#e .uilding insuran#e et#/

4. Out of %DD1 following is the preferen#e of the #ustomers for their insuran#e #ompan&/ The ma=imum #hoi#e was gi4en for ,I) and the reason .eing stated for that was that it is a go4ernment #ompan& and hen#e people put their faith on it/ @F

Preferenceof InsuranceCom pany

1 2 4 1 1 3 0 L IC IC IC I Prudentia l S B IL ife Insura nce B a ja j lia n! 1 3 1 4 " elia nc eL ife Insura nce 1 6 # a ta I$ L ife %t&ers

'. Most of the respondents were ha4ing their insuran#e sin#e last B to %D &ears/ The detailed results are shown .elow/

6. ?hen as+ed a.out the 4arious .enefits of the insuran#e #o4er1 following responses were re#ei4ed/ Out of %DD1 @HE of the respondents agree that insuran#e #o4er pro4ides

@H

se#urit& for the future/ In #ase of an& un#ertain happening1 life insuran#e will .e of great help/

(. Features whi#h attra#ted to .u& the poli#& are shown in the graph/ Ma=imum respondents go for the .rand name/ It shows the ne#essit& of .rand promotion/

@I

). The monthl& in#ome of most of the respondents fell into the range of Rs/B1DDD to Rs/:B1DDD/ That implies that most of the respondents .elong to medium in#ome group/

*. ?hen as+ed if the insuran#e poli#& #o4er is important in toda&Gs s#enario1 following was the response/ HDE respondents were agreeing with the importan#e/ It shows the awareness a.out the insuran#e .etween respondents/

BD

10.

In most of the #ases1 respondents were approa#hed .& the insuran#e #ompan&

to mar+et their produ#ts/ It shows that #ompanies are targeting their #ustomers/

11. with it/

?hen as+ed a.out the satisfa#tion with the poli#& whi#h the respondents were

ha4ing at present1 following were the findings/ Most of them were more or less satisfied

B%

12. details/

A.out J:E of all respondents were not satisfied with the ser4i#es of their

insuran#e agent/ The& #omplained that the agent didnGt e=plain them a.out the produ#t in

13.

Out of %DD respondents1 H:E were the ta= pa&ers/ It shows that RTa= Sa4ingG

.enefit ma& .e#ome the main reason for them to .u& the insuran#e poli#&/ B:

14.

Most of the respondents ha4e in4ested in 5ro4ident Funds to sa4e ta= followed

.& in Insuran#e 5oli#ies and National Sa4ing )ertifi#ates issued .& 5ost Offi#es/

B;

1'.

On as+ing a.out the .est form of in4estment at the present time1 respondents

showed the interest in Shares and mutual funds along with in fi=ed assets li+e land1 .uilding et#/

16.

Most of the respondents said that the right age to .u& life insuran#e is %H to :B

&ears/ It shows that the& were aware of the fa#t that premium is less for &ounger person/

B@

1(.

?hen as+ed a.out the o4erall rating for Indian insuran#e industr&1 most of the

respondents said that it is good/ It shows the positi4e perspe#ti4e of them/

1).

On as+ing a.out the e=pe#tations from the Indian insuran#e #ompan&1 most of

the respondents said first and most1 it must ha4e good insuran#e plans/ It shows their awareness a.out the produ#ts and need for new inno4ati4e produ#ts/

BB

1*.

A.out JFE of the total respondents were planning for new in4estments/ The&

agreed that there are lots of new opportunities in the insuran#e industr&/

BJ

20.

Respondents were as+ed that if a ser4i#e pro4ider pro4ides .etter ser4i#es and

impro4ed produ#ts #ustomi>ed to their requirements1 will the& a##ept it and in4est their mone&/ A.out FHE respondents were agree to it and showed a great interest in it/

BF

Cha4ter5A Conc$usion and Suggestions

A.0 CONCL'SION
After o4erhauling the all situation that .oosted a num.er of 54t/ )ompanies asso#iated with multinational in the Insuran#e Se#tor to gi4e .efitting #ompetition to the esta.lished .ehemoth *ota+ in pri4ate se#tor1 we #ome at the #on#lusion that

There are 4er& tough #ompetitions among the pri4ate insuran#e #ompanies on the le4el of new trend of ad4ertising to lull a ma'or part of )ustomers/ *ota+ is not left .ehind in the present ra#e of ad4ertisement/ The entr& of more 54t/ 5la&ers in the Insuran#e Se#tor has e=panded the produ#t segment to meet the different le4el of the requirement of the #ustomers/ It has .rought a.out greater #hoi#e to the #ustomers/

*ota+ has 4ast mar+et and 4er& firm grip on its traditional #ustomers and monopol& of life insuran#e produ#ts/

IR A is also pla&ing 4er& #omprehensi4e role .& regulating norms mandating to pri4ate pla&ers in this se#tor1 that in#reases the #onfiden#e le4el of the #ustomers to the pri4ate pla&ers/

BH

A./ Suggestions

The stud& has pro4ided with the useful data from the respondents/ There has a lot to .e re#ommended/ Following are the re#ommendations9

There is a need for .etter promotion for the in4estment produ#ts 3 ser4i#es/ The .an+ should ad4ertise its produ#ts through tele4ision .e#ause it will rea#h to the masses/

More returns should .e pro4ided on Insuran#e plans/

As the .an+ pro4ides the Insuran#e fa#ilit& to its #ustomers/ It should pro4ide this fa#ilit& .& tie up with the other Insuran#e organi>ations as well/ The main reason is that1 the entire #ustomers do not want Insuran#e of onl& one #ompan&/ The& should ha4e #hoi#e while sele#ting a suita.le Insuran#e plans/ This will definitel& add to the goodwill 3 profit for the .an+/

BI

Cha4ter 53
:i"$iogra4h%7
http922www/ilo4eindia/#om2finan#e2insuran#e2irda/html https922www/itshastra/#om2industr& http922insuran#e/+ota+/#om/2insuran#eCguide2a.outClifeCinsuran#e/php http922www/'agoin4estor/#om2:D%D2%:2termCinsuran#eCplansC#omparisionsCindia/html

JD

Cha4ter5B A44endi6 B.0 Financia$ Statements7

Form A5&L
&rofit and Loss Account for the %ear ended !arch 20< /10/
ShareholdersA A##ount !NonCTe#hni#al A##ount$ !Amounts in thousands of Indian Rupees$ &articu$ars Amounts transferred from 5oli#&holdersG A##ount!Te#hni#al A##ount$ In#ome from In4estments !a$ Interest1 i4idends and Rent N Net of amorti>ation .$ 5rofit on sale2redemption of in4estments #$ !,oss on sale2redemption of in4estments$ Other In#ome !in#luding fund management fees$ Tota$ 9A8 E=penses other than those dire#tl& related to the insuran#e .usiness Bad de.ts written off 5ro4isions !other than ta=ation$ a$ For diminution in the 4alue of J% N N :1;H: N N @%; HB1IBD J@1:B@ N IJ1;F; %J1D:F C@D1FF; N JB1J@@ :1@H@ C;1HF@ %@1;:; N 205!ar500 205!ar50/

in4estments !Net$ .$ 5ro4ision for dou.tful de.ts !#$ Others N )ontri.ution to the 5oli#&holders Fund Total !B$ 5rofit2 !,oss$ .efore ta= 5ro4ision for ta=ation N )urrent "ear N Earlier "ear 5rofit2!,oss$ after ta= Appropriations a$ Balan#e at the .eginning of the &ear Add9 Effe#t of first time adoption of Re4ised ASC%B N Emplo&ee Benefits !.$ Interim di4idends paid during the &ear #$ 5roposed final di4idend !d$ Ta= on di4idend distri.uted !e$ Transfer to reser4es2other a##ounts &rofitI9Loss8 carried to the :a$ance Sheet CI1:F% C%1BB@1%:F

N N N %1%FI1I:@ %1%H:1;DJ C%1DIJ1;BF N H1;:: C%1%D@1JFI

N N N @II1FI: BDD1:DB C@;B1IB% N H1:FD C@@@1::% C%1%DI1IDJ

C%1BJ;1;IH N N N 5/<33C<1BB

N N N N 50<AAE<0/B

J:

Form A5:S :a$ance Sheet as at !arch 20< /10/

!Amounts in thousands of Indian Rupees$ &articu$ars Sources of Funds ShareholdersG Funds9 Share )apital Reser4es and Surplus )redit2S e.itT Fair 0alue )hange A##ount Su.CTotal Borrowings &o$ic%ho$dersJ Funds7 )redit2S e.itT Fair 0alue )hange A##ount &o$ic% Lia"i$ities K 5arti#ipating K NonCparti#ipating K Annuities 5arti#ipating K Annuities UnitC,in+ed NonC5arti#ipating K UnitC,in+ed NonC5arti#ipating Insurance Reser#es K 5arti#ipating K NonC5arti#ipating K Annuities 5arti#ipating K Annuities1 UnitC,in+ed NonC5arti#ipating K UnitC,in+ed NonC5arti#ipating ,in+ed ,ia.ilities %:1D:B1H; : N N ;J1;@F N N J1FJF1IBF N CIJ1HFD %%1HB% F@F !@DD1BF:$ ;1DIF1:;B BD%1FB; :B%1B@B :;J %F:1@%I :1%::1FII @D@1@@@ %I@1BJB :BB I:1II: B:% %BD1@J; ;1;D;1@JJ B:D1;J; N ;1H:;1H:I N :1@@;1FD% B:D1;J; N :1IJ@1DJ@ N 205!ar50/ 205!ar500

J;

Fair 0alue )hange Total 5ro4ision for ,in+ed ,ia.ilities Su.CTotal Funds for Future Appropriation9C,in+ed ,ia.ilities Others Total A44$ication of Funds In4estments K ShareholdersG K 5oli#&holdersG Assets 6eld to )o4er ,in+ed ,ia.ilities ,oans Fi=ed Assets )urrent Assets )ash and Ban+ Balan#es Ad4an#es and Other Assets Su.CTotal !A$ )urrent ,ia.ilities 5ro4isions Su.CTotal !B$ Net )urrent Assets !)$ U !A K B$ Mis#ellaneous E=penditure !To the e=tent not written off or ad'usted$ e.it Balan#e in 5rofit and ,oss A##ount !ShareholdersG A##ount$ Tota$

J%I1J%B %:1J@B1@@F %J1FDB1BD; %:I1:@J %1DDI :D1JBI1BHF

FIF1::: F1BJB1%FI %D1D@B1HB; %@1JJ: %1DDI %;1D:B1BHH

HB;1H;J @1D:J1HHH %:1FF@1F%D :;1%JH :@:1FID %1:@H1J@@ @@@1%J; %1JI:1HDF %1BB%1F%I FD1IJI %1J::1JHH FD1%%I N :1JJH1DFF /1<3AD<ACB

JBJ1IHB :1IFB1::F F1BFI1H@% F1:@B %H;1J:J BFD1IH@ ;@;1::B I%@1:DI H%H1I@; :J1F:I H@B1JF: JH1B;F N %1BB@1%:F 02<1/A<ACC

INTER&RETATION7

J@

?e #an easil& understand the a.o4e .alan#e sheet in &ear :D%% #ompan&Gs total .alan#e %;1D:B1BHH1 while in &ear :D%: #ompan&Gs total .alan#e in#rease and .e#ome it :D1JBI1BHF/ It means #ompan&Gs .alan#e In#rease is F1J;;1III/

,ORKIN+ CA&ITAL !ANA+E!ENT

?or+ing #apital refers to that part of the firmGs #apital whi#h is required for finan#ing shortC term or #urrent assets1 su#h as1 #ash1 mar+eta.le se#urities1 de.tors1 in4entories1 .ills re#ei4a.le et#/ the assets of this t&pe are relati4el& temporar& in nature/ Unfortunatel&1 there is mu#h disagreement among finan#iers1 a##ountant1 e#onomi#s and .usinessmen as to the e=a#t meaning of the team (wor+ing #apital-

6owe4er1 wor+ing #apital is also +nown as #ir#ulating #apital or short term #apital/ ?or+ing #apital #an .e deri4ed .& the deferen#e .etween #urrent assets and #urrent lia.ilities of the firm/ +ROSS ,ORKIN+ CA&ITALK TOTAL C'RRENT ASSETS ,ORKIN+ CA&ITALK C'RRENT ASSETS G C'RRENT LIA:ILITIES

&articu$ar Current Assets )ash and Ban+ Balan#es Ad4an#es and Other Assets Su.CTotal !A$ )urrent ,ia.ilities 5ro4isions Su"5Tota$ 9:8

/10/ %1:@H1J@@ @@@1%J; %1JI:1HDF %1BB%1F%I FD1IJI 0<3//<3CC

/100 BFD1IH@ ;@;1::B I%@1:DI H%H1I@; :J1F:I CEA<3B/

?or+ing #apital U )urrent Assets K )urrent ,ia.ilities

JB

For &ear :D%: ?or+ing )apital U )/A K )/, U %1JI:1HDFC I%@1:DI U FD1%%I For &ear :D%% ?or+ing )apital U )/A K )/, U I%@1:DI K H@B1JF: U JH1B;

F'T'RE &ROS&ECTS
?ith there .eing intense #ompetition .etween the pri4ate pla&ers in the insuran#e mar+et1 distri.ution strength1 rea#h1 #ost effe#ti4eness1 produ#t inno4ation1 .rand lo&alt& and #ustomer ser4i#e are the +e& fa#tors that will determine performan#e in the mar+etpla#e/"our )ompan& is #on#entrating on these areas so as to ensure superior performan#e/ uring the #urrent finan#ial &ear1 &our )ompan& plans to e=pand its operations and open .ran#hes in %B additional #ities/

JJ

B./ @'ESTIONNAIRE
%/

ARE )O' E!&LO)EDL "ES NO DO )O' *A(E AN) INS'RANCE &OLIC)? "ES !6a4e at least one$ NO ! onGt ha4e an&$

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,*IC* INS'RANCE &OLIC) DO )O' *A(E? ,IFE NONC,IFE BOT6

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FOR *O, !AN) )EARS DO )O' *A(E INS'RANCE &OLIC)? a8 WB"rs

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,*AT DO )O' T*INK ARE T*E :ENEFITS OF INS'RANCE CO(ER? a$ )O0ER FUTURE UN)ERTAINIT" .$ TAY E U)TIONS #$ FUTURE IN0ESTMENT d$ AN" OT6ER 777777777777777 !5lease Spe#if&$

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,*IC* FEAT'RE OF )O'R &OLIC) ATTRACTED )O' TO :') ITL a$ ,O? 5REMIUM

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DO )O' T*INK INS'RANCE &OLIC) CO(ER IN TODA)JS SCENARIO IS ESSENTIAL? "es No )anGt Sa&

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*O, DID )O' :') INS'RANCEL a$ )USTOMER A55RO)6E INSURAN)E )OM5AN" .$ INSURAN)E )OM5AN" A55RO)6E )USTOMER JI

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ARE )O' SATISFIED ,IT* T*E &OLIC)? a$ SATISFIE .$ NOT SATISFIE #$ )ANGT SA"

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ARE )O' SATISFIED ,IT* T*E SER(ICE A+ENT? a$ SATISFIE .$ NOT SATISFIE #$ NEUTRA, 0IE?

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DO )O' &A) TAMESL "ES NO

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,*ERE *A(E )O' IN(ESTED FOR TAM SA(IN+? !RAN* T6EM$ a$ Insuran#e .$ NS) #$ BON S d$ 5F

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,*IC* IS T*E :EST FOR! OF IN(EST!ENTS? !RAN* T6EM$

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*O, ,O'LD )O' RATE INDIAN INS'RANCE CO!&ANIESL a$ RI8I 5,ANS .$ NONCUSER FRIEN ," #$ UNSATISFATOR" SRE0I)ES d$ NONCA88RESSI0E F%

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WHAT ,O'LD )O' LOOK FOR IN AN INS'RANCE COs? !RAN* T6EM$ a$ A TRUSTE NAME .$ FRIEN ," SER0I)E 3 RES5ONSI0ENESS #$ 8OO 5,ANS d$ A))ESSIBI,IT"

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ARE )O' &LANNIN+ FOR NE, IN(EST!ENTSL 5,ANNIN8 NOT 5,ANIN8

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,O'LD )O' +O FOR INS'RANCE IF A SER(ICE &RO(IDER OFFERS

:ETTER SER(ICE F &ROD'CTS? a$ "ES .$ NO #$ UN)ERTAIN

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NA!E7 -----------------------------------------A+E7 --------------------------------CONTACT NO.7 ------------------------------OCC'&ATION7 ------------------------------

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