SUMMER TRAINING PROJECT REPORT ON KNOWLEDGE OF PEOPLE TOWARDS LIFE INSURANCE COMPANIES

SUBMITTED TO: Ms. Supreet Chuahan Assistant Prof.of Management

SUBMITTED BY: Hirwani Thakur MBA -3rd 100222243660

CT INSTITUTE OF MANAGEMENT STUDY

AKNOWLEDGEMENT

This is to declare that the project report entitled KNOWLEDGE OF PEOPLE LIFE INSURANCE COMPANIES submitted to my project guide Ms. Supreet,of C.T.I.M.S it is a bonfire piece of work conducted under direct supervision . No part of this research has been under submitted for any other degree of any university .It it may be considered for evaluation in partial fulfillment of the degree of MBA.

HIRWANI THAKUR

CONTENTS

s.no Topic Page no 1 to 4 1 Introduction to insurance Importance Profile and vision 5 to 18 Market share of LIC of INDIA Product of LIC of INDIA 19 , 20 2 Review of Literature 3 Objectives & scope of the study 21 4 Research Methodology 22,23 4.1 Research 23,24 4.2 Research Process 4.3Research Design S25 26 4.4 Limitation 5 Data Analysis & interpretation 27 to38 39,40 6 Finding Process 6.1Conclusion 42,43 44to45 6.2Recommendation

Bibliography Questionnaire

46,48

49 to50

INTRODUCTION OF INSURANCE
Insurance is the out come of mans security & for finding out way and means of ameliorating the consequences of sudden calamities .Insurance is a co-operative venture whereby risk and loss are shared by man .The modern step of industrialization has rendered man his property most valuable if different types of risk and uncertainties of life .The uncertainties are like death ,unemployment ,sickness and are constantly at the force of a man and also his properties and exposed to risk which may rise from fire ,water, accident, wind-storm , sea perils , earth quacks and flood etc

Definitions:Insurance has been defined as a plan of which large number of people associate themselves and transfer to the shoulder of all ,risk attack to individual Insurance is a device is for the transfer to an insure of certain risk, loss of economic that would otherwise be borne by the insured.

Insurance is a contract by which one part of a compensation called the premium assumes particular risk of the other party
and promises to pay to him nominee a certain or ascertained sum
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of money on a specified contingency E.W. Patterson. Life insurance has come a long way from the earlier day when it was originally 5conceived as risk covering medium for short periods of time, covering temporary risk situation ,such as sea voyages .As life insurance became more establish it was realized what useful too it was for a number of situation including :-

(1) Temporary needs / threats

The original purpose of life insurance remain an important element, namely providing for replacement of income on death act.

Regular Savings:
Providing for ones family and oneself ,as medium to term exercise through a series of regular payment of premiums .This has become more relevant in recent time as people seek financial independent for their family .

3) Investment :

Put simple , the building up saving product ,investment product are traditionally lump sum investment .where the individual makes a one off payment Feature of investment : -Maximization of return -Maximization of risk -Hedge of inflation

Investment alternation :
Investment Government Mutual fund Bank deposit ,post office Provident fund Derivation

In simple word ,insurance protects against untimely losses :

Insurance has been found useful in the lives of personal both in short and long term needs like marriage expensive can be met with using life insurance. 1. Insurance is a contract for compensating losses . 2. Premium is charged for insurance contract . 3. The payment to insured as per term of agreement in the event of loss .
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4. Insurance is a contract for good faith . 5. Insurance is contract for mural benefits. 6. Insurance is a future contract for compensating . 7. Insurance is an instrument of distributing the loss of few among many. 8.The occurrence of the loss be accidental. 9. Insurance must be consistent with public policy.

IMPORTANCE OF INSURANCE : Beneficial to an individual : Insurance provide security and safety .In case of life insurance payment is made when death occurs or the terms of insurance is expired . 2. Insurance affords peace of mind. A sense of security removes all tensions and fears. It stimulates to more and better work. By means of insurance much of the uncertainly that centered round the modern life may be eliminated

3.Insurances eliminated dependency. The insurance provides adequate amount to the dependents at the early death of the property owner to pay off the unpaid loan . 4. Insurance eliminate dependency .In the event of death dread winner of the family or destruction of property ,the insurance assists the family and provide adequate amount at the time of need. Life insurance encourages savings .systematic savings is possible because regular premium can not be withdrawn. Life insurance is the best media of saving . 6. Life insurance provides profitable investment. The elements of investment i.e. regular savings capital formation and return of capital are observed in life insurance. In india in insurance policies carry the exemption from the income tax and estate duty. 7. Life insurance fulfills the needs of persons. The needs of a person may be divided in to : Family needs Old age needs Re-adjustment needs . Special needs including needs for educations, marriage settlements of children etc. Clean up funds for ritual ceremonies, payments of taxes etc. Insurance comes to help for meeting requirements .
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(B) Beneficial to business: Insurance has been useful to the business society in more than one way:

1. It reduces uncertainty to business losses:

As a huge number of properties are employed in commerce and industry equally great risks are involved in day ti day functioning . the owner of the business might foresee contingencies that would bring great loss . By purchasing a policy he can be sured of his earnings . Business efficiency is increased with insurances: A business gets free from unnecessary botherations can devoted more care and energy to minimize his profits .

2 Key man indemnification: Persons having expertise ,experience, ability to control the business are most important for the employers .Death of such persons
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proves a more serious loss then that by fire . The compensation to the dependents of such employers requires adequate provision which can be met by purchasing life policies. 2 Additions in credit The business can be obtained loan by pledging the policy as collateral security for the loan. As the assets are insured therefore , in the event of loss the compensation can be paid.

5 Business Continuation: The partnership business may be discontinued at the death of partner .The insurance policy provide adequate funds at the time of death therefore, the legal representative can be paid easily.

6 Employee Welfare: Provision for welfare for employee can be made by the life insurance in case of accident or sickness benefits and pensions .

(C) Beneficial to Society: 1 wealth of society is protected Insurance provide loss of human wealth loss of damage of property can be indemnified by the insurance company.
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2 Economic growth of the company:

As insurance provides protection against loss of property thus if any such damage arise the assts can be replace without loss of production thus, economic development of the country is not effect.

3 Accelerate the production growth : Adequate capital form insurance company can accelerate production circle in the country .Economic growth of the country is not only assure but the process of growth is accelerate which is more essential in a country like India where the population is increasing very fast .

4 Reduction in inflation : The insurance company in the form of premium gets lot of money supply from the public which insurance corporation put in to product thus the money which would have come into circulate might have gone for productive purpose .

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COMPANY PROFILE
Life Insurance Corporation of India
Life Insurance Corporation of India

Type

Government-owned corporation Insurance 1 September 1956

Industry Founded

Headquarters Mumbai, India Key people D. K. Mehrotra, T.S.Vijayan(Chairman), Thomas Mathew, Ashok Chawla, R Gopalan, Yogesh Lohia, S. Sridhar, and A.K.Dasgupta (MD)
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Products

Life insurance Tensions Mutual funds Rs.100.0 Rs.0.1

Revenue Oerating income Profit Total assets

Rs.1.0 13.25 trillion (USp$295.48 billion) Government of India 115,966 (2010)

Owner(s) Employees

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History

The Oriental Life Insurance Company, the first corporate entity in India offering life insurance coverage, was established in colctta .In 1818 by Bipin Bernard Dasgupta and others. Europeans in India were its primary target market, and it charged Indians heftier premiums. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included

Bharat Insurance Company (1896) United India (1906) National Indian (1906) National Insurance (1906) of the Co-operative Assurance (1906) Hindustan Co-operatives (1907) Indian Mercantile General Assurance Swadeshi Life (later Bombay Life) The first 150 years were marked mostly by turbulent economic conditions. It witnessed,Indias First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of world wide economic crises triggered by the .Great depression. The first half of the 20th century also saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of bankruptcies companies in India. This had adversely affected the faith.

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Market Share of LIC of India and other Insurance companies Table :

0.5 0.4 0.3 0.2 0.1 0 Column1

Column1

LIC ICICI ALLIANCE BAJAJ SBI HDFC BIRLA SONLIFE RELIANCE MAX NER YORK OM KOTKA

48.10% 13.17% 16.30% 6.20% 4.10% 3.40% 3.40% 2.40% 1.90%

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AVIVA TATA AIG METLIFE ING V SHRIRAM LIFE BHARTI AXA LIFE

1.80% 1.50% 1.40% 1.20% 0.30% 0.20%

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Products Of LIC

Before any PR campaign is started or planned it is necessary to know the products of that organization. LIC has a variety of insurance plans to choose from. These plans cater to all categories of people and to their diverse needs. The plans are simply unmatched in reliability, benefits and in providing happiness and security.

WHOLE LIFE SCHEMES ENDOWMENT SCHEMES TERM ASSURANCE PLAN PERIODIC MONEY-BACK PLANS PLAN FOR HIGH-WORTH INDIVIDUALS & KEYMEN MEDICAL BENEFITS LINKED INSURANCE PLANS FOR THE BENEFIT OF HANDICAPPED PLANS TO COVER HOUSING LOANS JOINT LIFE PLAN PLANS FOR CHILDREN NEEDS INVESTMENT PLANS

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 Group Insurance Scheme: Group term Insurance Scheme Group insurance scheme in lieu of EDLI Group gratuity scheme Group super annotation scheme Group savings linked insurance scheme Group leave encashment scheme Voluntary retirement scheme

Social Security Scheme Janshree Bima Yojana. Swaranajyoti Gram Swarojgar Yojana.

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REVIEW OF LITERTATURE
Marketing take a day to learn unfortunately it take a life time to master(Kotler,1967). with globalization and liberalization of the economy growing awareness among consumer and greater emphasis in customer centric activates ,market management has assumed asses importance . Market must know when to cultivate large market and when to nice when to lunch new brand and when push product the domestic market and when to penetrate aggressively into foreign market .

Traditionally exchange is considered the central concept in marketing(Bagozzi 1975, Hunt, 1976). In these more recent approaches it has been suggested that exchanges, although still important of course, are facilitated through interactions between suppliers and customers, and hence interaction becomes a central marketing concept ( Gronroos, 1990, Gummersson, 1987, hakasoon, 1982). Considering the importance to customer relationship management, present day emphasis of the top executive are the retention and
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maintaining the customer and building relationship with the customer Gartner, 2008). Glen L urban (2004) views that in response to growing expectation of customer and consequently shifting emphasis from customer relationship management to become full proponents of the customer agenda. Presently companies are following new different approach: they are providing customers with open, honest and complete information and then finding the best products for them, even if those offerings are from competitors. In short they are truly representing their customer best interest, essentially becoming advocates for them If a company advocates for its customers, they will reciprocate with their trust, loyalty and purchase, either now or in the future.

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Andrew smith and Leigh Sparks(2009) investigate customer motivations in retail loyalty scheme points redemption, through a qualitative study of participants in a major UK retail loyalty scheme. They point out that academic research tends to neglect investigation of points redemption, despite its probable significance to consumers and certain value to businesses. Redemption activities have positive implications for consumer perceptions of the scheme and the retailer and appear to enhance future purchasing behavior.

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OBJECTIVES OF STUDY

To know the Market potentials of the LIC Of INDIA . To suggest the ways to enhance the market potentials of the LIC of India. To check the awareness of the customers regarding the LIC companies of the life insurance sector. To check the interest of the customers in buying the Life Insurance policy .

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RESEARCH METHDOLOGY

Research Design
The survey done for this project conveys regional information but that can be generalized for national level also. Scope of survey is limited to H.P. Type of Research This is descriptive type of research in which clients or policy holders have been surveyed for check their awareness regarding the private of Life Insurance Sector. Method of Data Collection Generally there are 2 methods of data collection: Primary Data For collecting primary data I used questionnaire. Under this questionnaire, the questions, which were related to check customers awareness regarding the private players in Life Insurance Sector, were included. Besides this there were questions to find that what factors affect policy purchase decision and how many people are willing to buy Life Insurance Policy from Life Insurance companies.
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Secondary Data These types of data are available in, Internet . For this project I have taken help from textbooks (LIC 2011). Secondary sources used are: Text books Journals like insurance post, business world, market research journal and journal of marketing. Internet sites on Insurance.

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THE RESEARCH PROCESS

Define the research problem and its objectives

Research design including sample designing

Collections of Data Survey

Analysis of Data

Interpretation and report writing

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RESEARCH DESIGN

Data source : The study is based on both primary and secondary data. Research instrument: Questionnaire . Research approach: Survey , Observation Sampling unit: Customers Sample size: 100 customers Sampling procedure: Judge mental non random method

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LIMITATIONS

Data Collection error may be there due to wrong response from respondents as some time they are not right person who takes actual decisions. Due to cost and human element is involved, project area was limited.

Sometime people dont have time to fulfill questionnaire, so they give only few information. As per knowledge data was collected and analyzed, error may be there.

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ANALYSIS AND INTERPERETATION

1 Do you have any knowledge about the concept of insurance? Table 1

Knowledge of life Insurance Yes. No. No of respondents 95 5 Percentage 95% 5%

Graph1
KNOWLEDGE OF CONCEPT OF LIFE INSURANCE

Yes No

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2 Do you have any Policy Life insurance ?

Table 2
People who have life No of respondents insurance Yes 68 No 32 Percentage 68% 32%

Series 1
Yes

No

As per analysis 68% of the respondent are already insured by one company or the other whereas rest 32% do not insurance of any kind.
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3 What pattern do you follow for marking saving? Table 3

Saving Pattern if People FD RD NSC P.O No of respondent 35 40 15 10 Percentage 35% 40% 15% 10%

Graph 3

FD

RD

NSC

P.O

Most people out of the sample consider bank to be more safeguarding for their money with no risk in it so recurring deposits and fixed deposits have the higher percentage.

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4 What pattern do follow in regarding if investment? Table 4

Investment Pattern Stock Mutual fund PPF EPF Bonds No of respondents 10 25 27 18 20 Percentage 10% 25% 27% 18% 20%

Graph 4
Investment Pattren
Stock Mutual Fund PPF EPF Bonds

20%

10% 25%

18%

27%

Most chunk of the sample invest in PPF and mutual fund 25%and27% .Near to the equal % age is being investment in EPF and bonds .
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5 How do focus for saving and investment?

Table 5
Focus of Saving Investment Social Financial Material No of respondents 25 56 21 Percentage 25% 65% 21%

Graph 5
Focus of saving /Inveatment
Social Financial Material

19%

25%

56%

Most of the responses prefer finance as the major focus saving and investment .social and materialist thing follow it.

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6 From which company currently do you have Insurance Policy Table 6 Companies form which No of respondents people have life insurance
LIC India ICICI PRU HDFCSL MAXNY AVIVA BAJAJ ALINZE TATA AIG OM KOTAK BIRLA ING VYASA 60 22 10 9 5 5 3 3 2 2

Percentage

60% 22% 10% 65% 5% 5% 5% 3% 2% 2%

Graph 6

70 60 50 40 30 20 10 0 LIC INDIA HDFCSL MAXNY BAJAJ ALIZE ICICIPUL TATA AIG

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7 Do you have knowledge about following companies? Knowledge of people

LIC HDFC MAXNY BAJAJ ALINZE ICICI PRU TATA AIG BIRLA AVIVA ING VYASA OM KOTAKA 99 70 34 30 75 32 36 32 25 24

No if respondents(%)

Graph7
100 80 60 40 20 0 Knowledge of People Regading LIC Companies

The survey result show that 99% people know about LIC.82% of
respondent aware of ICICI and 69% aware of HDFCSL.MAX,TATA,BIRLA,ALIANCE

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8 What factor do you considered while buying the Insurance Policy? Table 8 Factor that Effect the buying of LIC Policies Premium Payment Tax benefits Return Saving No of respondents 33 56 60 54

Graph 8

80 70 60 50 40 30 20 10 0 Premuim Payment Tax benefits Return Saving

Factor htat effect the buying of LIC Policys

60% of the respondent take LIC to get good return .56% people take LIC Polices Tax benefits .54%saving and 33% consider premium as one of the influencing factor .

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9 What are the reason behind the preference for a particular company?

Table 9
People prefer for a particular company Good products Customer care Good returns Agents Good will Money No of respondent 19 15 30 10 40 30

Graph 9
Why people prefer for a particular company
40 35 30 25 20 15 10 5 0 Good Customer product care Good return Agents

Good will

Money

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10 Do you know knowledge about the various polices of the companies?

Table 10
Knowledge of people regarding polices of various companies Yes No Not in detail Graph 10 No of respondent Percentage

20 30 50

20% 27% 50%

Knowledge of people regarding polices of various companies

Yes

No

Not in Detail

Out of a set 100 respodent20% are dont know about policy offered by various company whereas 30% of them fully aware & 50%are not aware to various LIC com.Policies.
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11 Do you have plane for buying Insurance Policy in this Year?

Table 11
People are willing to insurance in coming future No of respodents Percentage

Yes No Table 11

10 90

10% 90%

Wether are willing to buy Insutance in comimg yer

Yes No

Out the set of 100 respondents 90%of them do not have plans of buying Insurance within a year 10% have plane within a year.

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12 Are you aware about the LIC if India insurance plans(policies)?

Table 12
Awareness towards LIC of india Insurance plans No. of respondent %age

Awareness Not Aware Graph 12

55 45

55% 45%

Pople Awareness about LIC of India plans

Awareness Not aware

In this question an attempt has been made to find out the awareness of LIC India plans(policies) where out of 100 people 55% were aware & 45 %were not aware.

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FINDING & SUGGESTION

I find in this study that Ever since the government and privatization of Insurance sector, the sector has witness an eve rising rate of growth .Companies are making their annual target and at the target and at the end of the year see them way beyond their expectation. I think that the insurance sector has grown not only in size but in maturity as well , in the sense that form very simple product , which were available earlier on to the present. What has been done is that Insurance Industry placed the costumer in center and development product & development services around the costumer . I also find that most of consumer lick to adopt LIC India polices because its a government insurance company . Insurance in India is still conceder a tax saving device of its longer financial benefits .India people are accustomed to invest in Gold,Real estate & bank Deposit . Only4-5% of Indians invest in shares. Even to this day LIC is considered an ICON. Because of its monopoly for more than four decades and Government Backing. Indian insurance market has become very vibrant. Smashing all the doubts over the decision to liberalize the Indian insurance sector, the overwhelming two years performance of Indian insurance
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sector is test case of massive story of private players entering into erstwhile state monopoly. The portfolio game has shifted and the average size of policies ought has increased. buying a risk cover has People are to buying cover for sake of tax breaks. They are safeguarding themselves from the risk of dying too early to living too long. Whole life and term Insurance policies are increasingly becoming popular. I suggest that spending has not simply increased the awareness level of insurance but also brought about certain amount of selling and market discipline. This is reflected to the fact that selling is to skewed to March pressure. More and more people understand the right amount of insurance cover to take care of their responsibilities. People know when they are underinsured and go for the right choice of insurance cover for themselves. Three years since the privatization of Indian Insurance Sector and entry of first Private Insurance Companies a high level of awareness about privatization among people is observed. People have started demanding the easy access of right and true information. Insurance companies are also stepping up their work for providing more, easy and frequent access to information and recent developments if insurance products.

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CONCLUSION
Insurance in India is still conceder a tax saving device of its longer financial benefits .India people are accustomed to invest in Gold ,Real estate & bank Deposit . Only4-5% of Indians invest in shares. Even to this day LIC is considered an ICON. Because of its monopoly for more than four decades and Government Backing. It has occupied a high position and trust in market and minds of Indian people. After few scams by private companies, which used to spring up over nightly and after collection huge amounts from people used to disappear in darkness of night, has made the names of private companies very untrustworthy to put their money in for long terms. Private companies do not have any government security, so they are at disadvantage in current light of situation particularly in insurance sector. The only way they can win trust is by continuously and flawlessly showing better results. And that is what the new private entrants are doing right now. Indian insurance market has become very vibrant. Smashing all the doubts over the decision to liberalize the Indian insurance sector, the overwhelming two years performance of Indian insurance sector is test case of massive story of private players entering into erstwhile state monopoly. The insurance penetration level has considerably increased from 1.6% to about 2.75%. Now whether that growth is enough in three year period, we can always counter
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that. In the last 3years private insurance companies have grown at 200-300% levels. But if you look at a longer time horizon says at 10 years the insurance companies would grow at 13-14% rate that would make it one of the fastest growing sectors.

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Recommendations

After analyzing the findings from my survey I am giving some recommendations to LIC of India,, by applying these suggestions company can get some benefit. By objectives. Classification of customer as profitable and least profitable and aligning all business processes and strategies along customer links. Improved service quality and individualized attention to customer. Emphasis on Agents training. The agents should be provided comprehensive training so that thy can go in the markt and fetch business for company. Partial and incomplete knowledge will bring bad name to company and brings brand dilution for the company. Classify maintain customer database and send them Birthday wishes clients birthday and providing customized policy with conversion option in terms of payment schedule, premium terms, money back clauses etc. Due to pressure on markings and LICs strong customer and agent base in all over India, requires LIC to come up with new innovative products.
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 Enhance focus on rural sector Professionalism Publicity and Public Relations. Management their customers on basis of profitability and revenue generation Complaints by clients should be tried to remove as soon as possible. More commission and other benefit should be given to the more profitable agent. Classifies its most profitable staff on basis of number of complaints handled. Under social benefits company should initiate positive phone calls and should provide service suggestions with getting to problems. Maintain database of existing customers for future contact. Provide net advice and net selling facilities. Product information via mass media sources. Insurance advertisement sent in mail. Tangible offering like gifts etc, financial information, and investment advice after policy purchase decision. Company media advertising: Companys sponsored magazine and paper advertisement got higher points TV Commercial. A monthly payment of premiums can be start of with housewives. So that they can be at ease.
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BOOKS Kotler Philip, Marketing Management, Thirteenth Edition, Prentice Hall Publisher. Kothari, Research Methodology, Fourth Edition, Kalyani Publisher, New Delhi. Malhotra Naresh, Marketing Research, Fourth Edition, Kalyani Publishers, New Delhi.

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WEBSITES http://www.licofindia.com/public/Group -Plans.htm

http://www.hdfclife.com/Products/SavingsPlans/SavingsAssurance. aspx http://www.insuranceplan4u.com/india-insurance-companies/icicipru http://www.iciciprulife.com/public/Life-plans/Life-Insurance.html

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QUESTIONNAIRE NAME: AGE: 1. Do you have any knowledge about the concept of Life Insurance? ( )Yes ( )No 2. Do you have Life Insurance Policy? ( )Yes ( )No 3. What pattern do you follow for making saving? ( )FD ( )RD ( )NSC ( )P.O 4. What pattern do you follow in regarding of investment? ( )Stock ( )Mutual fund ( )PPF ( )EPF ( )Bonds

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5 How do you focus for saving and investment? ( )Social ( )Financial ( )Material 5. From which company currently do you have Life Insurance policy? ( )LIC ( )HDFCSL ( )MAXY ( )BAJAJ ALLIANZ ( )ICICI PRU ( )BIRLA ( )INGVASYA ( )OM KOTAK 6. Do you have knowledge about following companies? ( )LIC ( )HDFCSL ( )MAXY ( )BAJAJ ALLIANZ ( )ICICI PRU ( )BIRLA ( )INGVASYA ( )OM KOTAK

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8 What factors do you considered while buying the Insurance Policy? ( )Premium Payment ( )Tax Benefits ( )Returns ( )Savings

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