A PROJECT REPORT

ON
LIFE INSURANCE

SUBMITTED BY
AKSHAY SANJAY GHARAT
ROLL NO:16
TYBMS (SEMESTER V)

UNDER THE GUIDANCE OF

PROF. DIVYA LALWANI

SUBMITTED TO UNIVERSITY OF MUMBAI IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE AWARD OF DEGREE

BACHELOR OF MANAGEMENT STUDIES

S.P.MANDALIS
R. A. PODAR COLLEGE OF COMMERCE AND ECONOMICS
MATUNGA, MUMBAI 400 019.

2014-15

CERTIFICATE

This is to certify that the project entitled LIFE INSURANCE is a true and
satisfactory work done by Ms.AKSHAY SANJAY GHARAT, T.Y.B.M.S, Roll
No.16 ---.The project report is submitted to University of Mumbai in partial
fulfillment of the requirements for the award of degree Bachelor of Management
Studies for the academic year 2014-15.

__________________________

_______________

Dr. (Mrs.) Shobana Vasudevan

Prof. D.Lalwani

Principal

Project Guide

___________________
Signature of External Examiner

Date: __________

Seal of the College

DECLARATION

I, AKSHAY SANJAY GHARAT, student of R. A. PODAR COLLEGE OF

COMMERCE AND ECONOMICS, TYBMS, Semester V hereby declare that I have
completed the project LIFE INSURANCEin the academic year 2014-2015.

The subject matter contained in this project is a research work and most of the work
carried out is original and was done under the guidance of my project guide
Prof.DIVYA LALWANI

The information is true and original to the best of my knowledge.

____________________
Signature of the Student
Roll No.

ACKNOWLEDGEMENT

It is my earnest and sincere desire and ambition to acquire profound knowledge in the
study of Management Studies. I have had considerable help to advice at very outset of this
project. It is my pleasure to acknowledge the help and guidance that I have received from those
personnel and to thank them individually.
First of all, I express my sincere thanks to the Principal Dr. (Mrs.) Shobana Vasudevan
for having given me a chance to undergo the project work.
The compilation of this project is a milestone in the life of the management student and
its execution is inevitable without the co-operation of the project guide. I am deeply grateful to
my project guide Prof. Divya Lalwani

for her valuable ideas, required suggestions and

encouragement for refining this project study.

Finally, I thank all the staff members and my friends for their valuable support and
contribution to my project.

Signature of the Student

Executive summary

Life insurance - What is it?

Life insurance is used to protect the financial security of the people you love
most. A life insurance policy pays a cash benefit, tax free, to your beneficiaries
when you die. The a mo u n t of m o n ey f o r w hi c h y ou a re i n s u red an d
t h e t y p e o f i n s u r a n c e y o u b uy depends on your needs. People can get
life insurance through work (some employer soffer it through group
benefits plans. This type usually ends when you leave the employer.) or
they buy it on their own (usually from an insurance advisor).

It's understandably difficult for any family to consider death and making arrangements for it. When this occurs,
dealing with the emotional trauma is hard enough.
By having thefinancial preparations planned and under control with comprehensive life insurancecoverage, it
makes the situation that much easier for your loved ones left behind. By having a life insurance policy in place,
your loved ones will be protected from financial hardships. The protective qualities of your policy will provide
money directly to your beneficiaries.
This settlement from the company that insures you can be used by your beneficiaries in any way they see fit,
such as :
Supplement lost income
Funds for children's education
Pay off the family household debt
Pay for the cost of the funeral and related expenses
If you choose to buy a permanent policy, you can have the option of adding a cash value component. This cash
value component can be used during your lifetime if needed.

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Name of the topic

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no.

Introduction
Introduction to the problem
Research design
Statement of the problem
Scope of the study
Need of the study
Objective of the study
Review of literature
Research design
Sample design
Sources of data
Field work
Limitations of the study
Industry profile and company profile
Analysis and interpretation
Introduction to analysis
Data analysis tools used
Findings conclusion and suggestions

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bibliography

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1. INTRODUCTION TO THE STUDY

Everyone is exposed to various risks. Future is very uncertain, but there is way to
protect ones family and make ones childrens future safe. Life Insurance
companies help us to ensure that our familys future is not just secure but
also prosperous. Life Insurance is particularly important if you are the
sole breadwinner for your family. The loss of you and your income could devastate
your family. Life insurance will ensure that if anything happens to you, your loved
ones will be able to manage financially. This study titled Study of Consumers
Perception about Life Insurance Policies enables the Life Insurance Companies to
understand how consumers perception differs from person to person. How a
consumer selects, organizes and interprets the service quality and the product
quality of different Life Insurance Policies, offered by various Life Insurance
Companies. Insurance is a tool by which fatalities of a small number ar e
compensated out of funds (premium payment) collected from plenteous. Insurance
companies pay back for financial losses arising out of occurrence of insured events
e.g. in personal accident policy death due to accident, in fire policy the insured
events are fire and other allied perils like riot and strike, explosion etc. hence
insurance safeguard against uncertainties. It provides financial recompense f or
losses suffered due to incident of unanticipated events, insured with in policy of
insurance. Moreover , through a number of acts of parliament, specific types of
insurance are legally enforced in our country e.g. third party insurance under motor
vehicles Act, public liability insurance for handlers of hazardous substances under
environment protection Act. Etc

1.1 WHAT IS INSURANCE

(INTRODUCTION TO THE PROBLEM)

It is a commonly acknowledged phenomenon that there are countless risks in

everysphere of life .for property, there are fire risk; for shipment of goods. There are
perils of sea; for human life there are risk of death or disability; and so on .
The chances of occurrences of the events causing losses are quite uncertain
because these may or maynot take place. Therefore, with this view in mind, people
facing common risks cometogether and make their small contribution to the
common fund.

While it may not be possible to tell in advance, which person will suffer the losses,
it is possible to work outhow many persons on an average out of the group, may
suffer losses. When risk occurs,the loss is made good out of the common fund .
In this way each and every one shares therisk .in fact they share the loss by
payment of premium, which is calculated on thelikelihood of loss .in olden time, the
contribution make the above-stated notion of insurance.

DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium
is paid by the insured in consideration of the insurers bearings the risk of paying a
large sum upon a given contingency. The insurance thus is a contract whereby:
A Certain sum, termed as premium, is charged in consideration, b. Against the said
consideration, a large amount is guaranteed to be paid by the insurer who received
the premium. The compensation will be made in certain definite sum, i.e., the loss
or the policy amount which ever may be, and. The payment is made only upon a
contingency
More specifically, insurance may be defined as a contact between two parties,
wherein one party (the insurer) agrees to pay to the other party (the insured) or
the beneficiary, a certain sum upon a given contingency (the risk) against which
insurance is required.

TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk,
which can be insured, in number and extent owing to the growing complexity of
present day economic system. The different type of insurance have come about by
practice withininsurance companies, and by the influence of legislation controlling
the transacting of insurance business, broadly, insurance may be classified into the
following categories:

1. Classification from business point of view

a) Life insurance, and
b) General insurance

2. Classification on the basis of nature of insurance

a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance

IMPORTANCE OF INSURANCE
THE IMPORTANCE OF INSURANCE
Insurance benefits society by allowing individuals to share the risks faced by many people. But it
also serves many other important economic and societal functions.
Because insurance is available and affordable, banks can make loans with the assurance that the
loans collateral (property that can be taken as payment if a loan goes unpaid) is covered against
damage. This increased availability of credit helps people buy homes and cars. Insurance also
provides the capital that communities need to quickly rebuild and recover economically from
natural disasters, such as tornadoes or hurricanes. Insurance itself has become a significant
economic force in most industrialized countries. Employers buy insurance to cover their
employees against work-related injuries and health problems. Because it makes business
operations safer, insurance encourages businesses to make economic transactions, which benefits
the economies of countries. In addition, millions of people work for insurance companies and
related businesses. In 1996 more than 2.4 million people worked in the insurance industry in the

United States and Canada. Insurance as an investment that offers a lot more interms of returns,
risk cover & as also that tax concessions & added bonuses Not all effects of insurance are
positive ones. The possibility of earning insurance payments motivates some people to attempt to
cause damage or losses. Without the possibility of collecting insurance benefits, for instance, no
one would think of arson, thewillful destruction of property by fire, as a potential source of
money.