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CERTIFICATE
I, Jashu Negi Roll No.:- 09419103914. certify that the Summer Training Report (Paper Code
MS-201 entitled Study of Different Functional Areas & Customer Retention Strategies of
IDBI Federal Life Insurance Co. Ltd is done by me and it is an authentic work carried out by
me at IDBI Federal Life Insurance Co. ltd.The matter embodied in this Report has not been
submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.
Signature of the Student:
Date:
Certified that the Summer Training Report (Paper Code MS-201) entitled Study of Different
Functional Areas & Customer Retention Strategies of IDBI Federal Life Insurance Co. Ltd
has been done by Mr. Jashu Negi.Roll No. 09419103914, is completed under my guidance.
Signature of the Guide
Date:
Name of the Guide:
Designation:
Countersigned
Director/Project Coordinator
1
ACKNOWLEDGEMENT
I, Jashu Negi, the student of Gitarattan International Business School, am extremely grateful
to IDBI Federal Life Insurance Co. Ltd. for the confidence bestowed in me and assigning me
the project entitled Study of Different Functional Areas & Customer Retention Strategies of
IDBI Federal Life Insurance Co. Ltd.
At this juncture I feel deeply honored in expressing my sincere thanks to Mr Manas Das head
of Pitampura branch for making the resources available at right time and providing valuable
insights leading to the successful completion of my project.
I express my gratitude to College Director Dr.S.Chaturvedi for arranging the summer training
in IDBI Federal Life Insurance Co. Ltd.. I also extend my gratitude to my Project Guide Dr.
D.K. Choudhury, who assisted me in compiling the project.
DATE
CONTENT
S No
Topic
Page
No
Certificate (s)
Acknowledgements
II
List of Tables
List of Figures
VI
Executive Summary
VII
1-15
16-19
20-45
46-49
10
References/Bibliography
11
Appendices
IV- V
50
51-55
LIST OF TABLES
Table
No.
TITLE
PAGE
NO.
Balance sheet
22-23
24
32
32
33
33
34
35
10
35
11
36
12
Service satisfaction
36
13
37
14
Concerns Resolved
37
15
Benefit Satisfaction
38
16
Courteous Service
38
17
Quick call
39
4
18
Knowledge representative
39
19
Highest Benefits
39
20
40
21
40
22
41
23
44
24
44
LIST OF FIGURES
Figure
No.
Page
No.
TITLE
Organization structure
11
26
27
EXECUTIVE SUMMARY
The summer training was conducted at IDBI Federal Life Insurance and to identify the ways by
which the organization retains its customer and also to gather knowledge about all the functional
areas of the company. The research work was carried out among the customers of IDBI federal
life insurance based on questionnaire survey. It has been observed that the main products of
IDBI are Wealthsurance, Termsurance, Childsurance, Incomesurance, Retiresurance etc.The
turnover of the organization is Rs 550 crores(approx).while the manpower strength of the
organization is 10000(approx).It has been found that the major competitors of the company are
LIC, ICICI Prudential Life insurance, Aviva India , Bajaj Allianz ,HDFC Life ,SBI Life etc
.From the data analysis it has been observed that the strength of the company is High degree of
customer satisfaction. While the weakness of the company is Growth of IDBI is constrained due
to non-deployment of more resources to broaden the business operation of the company. The
analysis of the feedback from customers reveal that the majority of customers were interested in
buying another policy from IDBI Federal as they were satisfied with IDBI Federals premium
price, customer representative and returns on investments in different policies .
For increasing Customer retention, the researcher suggested following :
(a) To liberalize some amount of premium on continuous purchase.
(b) To offer some gifts to potential customers.
(c) To issue membership cards and arrange membership programs from time to time.
(e)To create databases that keep track of customers purchases, preferences, complements and
complaints, which are used to carry out loyalty building services and dialogs.
CHAPTER 1
Industry
: Life Insurance
Founded
: March 2008
Address
110034
Telephone
: support@idbifederal.com
Website
: http://www.idbifederal.com
Type
1.3
1.33
marriage or giving her a good start in career is also duty of parents. It is therefore important for
each individual to stay prepared. It is better to plan early to help childs dreams come true
tomorrow and support her at every important milestone of life. This insurance policy
secureschilds future.
Everyones child is a star in his eyes and everybody constantly encourages his child to excel in
academic and extra-curricular activities. We are doing whatever it takes to ensure that the child
shines like a star when she grows up. But have we done everything that is needed to secure a
childs future? Facilitating the best for him, from education to talent development courses,
everything is going to cost a lot tomorrow. To add to this concern is the uncertainty of life. Of
course, you would like your child to fulfill his dreams, no matter what! IDBI Federal
Wealthsurance Future Star Insurance Plan* is designed with the understanding that your desire
to see him shine like a star is unconditional.
1.46
It is rightly said that, The secret behind any organisations success is its satisfied employees. An
5
employee is the very reason for companys existence and is critical to business success. It is
organisations prime responsibility to reward them as a gratitude for the services offered by them
in the company. Also, the employees have a responsibility towards their families. Hence,
providing them with a basic life cover also becomes companys responsibility in case of their
untimely demise.
IDBI Federal Retiresurance Group Insurance Plan is here to help one withthe
management of funds that one has set aside for his retirement benefits - Gratuity,
Superannuation and Leave Encashment. It ensures that the employees are
rightfully rewarded for all their hard work.
Through a nationwide network of 2, 964 branches of IDBI Bank and Federal Bank, and a
sizeable network of advisors and partners, IDBI Federal Life Insurance has achieved presence
across the length and breadth of the country. As on March 31, 2015, the company has issued
nearly 7.88 lakh policies with a sum assured of over Rs. 41,856 crore. IDBI Federal Life
Insurance has total assets under management of 4,087 crore and a robust capital base of over
800 crores, as on March 31, 2015.
The size of the organisation in terms of man power and turnover is shown in Table 1.1.
Year of Establishment
:2008
Nature of Business
:Insurance
Number of Employee
Turnover
IDBI federal life insurance currently has over 10,000 on roll employees all over the country and
over 20,000 licensed agents working towards the success. The company has reported a maiden
profit of Rs 9.24 crore in 2012-13, thus making it one of the fastest to break-even in the Life
Insurance industry. In an industry challenged by falling margins, shrinking new business
volumes, high cost ratios and low profitability, this is a significant achievement.
1.6
1.61 IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier
development and commercial bank, Federal Bank, one of Indias leading private sector banks
and Ageas, a multinational insurance giant of Europe. In this venture, IDBI Bank owns 48%
equity while Federal Bank and Ageas own 26% equity each. . Having started in March 2008, in
just five months of inception, IDBI Federal became one of the fastest growing new insurance
companies to garner Rs 100 Cr in premiums. Through a continuous process of innovation in
product and service delivery IDBI Federal aims to deliver world-class wealth management,
protection and retirement solutions that provide value and convenience to the Indian customer.
The company offers its services through a vast nationwide network of 2137 partner bank
branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and
partners. As on 28th February 2013, the company has issued over 8.65 lakh policies with a sum
assured of over Rs. 26,591 Cr.
IDBI Federal today is recognized as a customer-centric brand, with an array of awards to their
credit. They have been awarded the PMAA Awards (2009) for best Dealer/Sales force Activity,
EFFIE Award (2011) for effective advertising, and conferred with the status of Master Brand
2012-13 by the CMO Council USA and CMO Asia
1.62About the sponsors of IDBI Federal Life Insurance Co Ltd
a) IDBI Bank Ltd. continues to be, since its inception, Indias premier industrial development
bank. It came into being as on July 01, 1964 (under the Companies Act, 1956) to support Indias
industrial backbone. Today, it is amongst Indias foremost commercial banks, with a wide range
of innovative products and services, serving retail and corporate customers in all corners of the
country from 1077 branches and 1702 ATMs. The Bank offers its customers an extensive range
of diversified services including project financing, term lending, working capital facilities, lease
finance, venture capital, loan syndication, corporate advisory services and legal and technical
8
advisory services to its corporate clients as well as mortgages and personal loans to its retail
clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the
development of key institutions involved in Indias financial sector National Stock Exchange
of India Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding
Corporation of India Ltd), CARE (Credit Analysis and Research.LTD)
b)
Federal Bank is one of Indias leading private sector banks, with a dominant presence in
the state of Kerala. It has a strong network of over 1060 branches and 1158 ATMs spread across
India. The bank provides over four million retail customers with a wide variety of financial
products. Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network. In addition to interconnected branches and ATMs, the Bank has
a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where
Banking, debit cards, online bill payment and call centre facilities to offer round the clock
banking convenience to its customers. The Bank has been a pioneer in providing innovative
technological solutions to its customers and the Bank has won several awards and
recommendations.
c)
AGEAS is an international insurance group with a heritage spanning of more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to
concentrate its business activities in Europe and Asia, which together make up the largest share
of the global insurance market. These are grouped around four segments: Belgium, United
Kingdom, Continental Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy, Portugal,
Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and
UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well as
a leading non-life player through AG Insurance. In the UK, Ageas has a strong presence as the
9
fourth largest player in private car insurance and the over 50s market. Ageas employs more than
13,000 people and has annual inflows of more than EUR 21billion.
10
uoari unebaougsrmd art dehknauZir ecvnZo eti onse ina osgal n hlS & Su up p po or t r t
e rrha sio ntaod mi anu h gor caet ier no h ne ah de a d
Figure No. : - 1.1 Organization structure of IDBI Federal Life Insurance
11
1.81 On June 04, 2013, the company has reported a maiden profit of Rs 9.24 crore thus making
it one of the fastest to break-even in the Life Insurance industry. In an industry challenged by
falling margins, shrinking new business volumes, high cost ratios and low profitability, this
is a significant achievement.
1.82 IDBI Federal started its operations in March 2008 and is amongst the most successful
start-ups in the Indian Life Insurance market. A pioneer in product innovation, IDBI
Federals approach is very innovative and reflects a fresh way of looking at and thinking
about life insurance. The Companys innovative products with trademarked names such as
WealthsuranceTM, IncomesuranceTM, RetiresuranceTM, etc have been well-received by its
customers and have been an important contributing factor to its success.
1.83 IDBI Federals New Business Premium (APE) grew by 23% in 2012-13, which compares
with the negative growth of -15% posted by the industry. The company also witnessed a
44% increase in the number of new business policies sold as compared to the previous year.
IDBI Federal has also been driving profitability through the right product mix. The product
mix has continuously been shifted to long-term, traditional products. Share of traditional
products in the new business premium increased to 83% as compared to 67% in the previous
year. Share of regular premium products increased to 78% as compared to 69% in the
previous year.
1.84 Mr. G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance, said,
I am extremely happy to announce that IDBI Federal has recorded its maiden profit of Rs
9.24 crore in 2012-13. Achieving break-even in the fifth year is a significant landmark. We
have pursued profitable growth as our company strategy.
1.85 15% reported by the industry. Our growth rate is one of the highest in the industry, with a
large number of companies posting negative growth. What is even more satisfying is the fact
12
that this achievement comes at a time when the entire Life Insurance industry is facing many
challenges and growth is hard to come by.
1.86 IDBI Federal has a healthy solvency ratio at 491% as against the regulatory requirement of
150%. Mr. Rao said, I am delighted to say that IDBI Federal enjoys a comfortable solvency
ratio to take care of its next phase of growth. As we have reached the profit-making state, we
will not require any further capital infusion. Our AUM has moved up by 24% from Rs. 2,208
crores to Rs 2,732 crores during the current year. IDBI Federal has paid-up share capital of
Rs 800 crore.
The present leadership is furnished below, mentioning therein the name of the individuals along
with their designations.
a) Vighnesh Shahane
CEO & Whole Time Director
b) Ajay Oberoi
Chief People Officer & Head Administration
c) Aneesh Khanna
Chief Strategy & Marketing Officer
d) Aneesh Srivastava
Chief Investment Officer
e) Arvind Shahi
Chief Risk Officer
f) Ashley Kennedy
Chief Distribution Officer East
g) Ganesha Ratnam
Chief Distribution Officer South
h) Karthik Raman
Chief Distribution Officer North & West
i) Karunanidhi Muthuswamy
14
j) Kedar Patki
Chief Financial Officer
k) Lalitha Bhatia
Chief Operating Officer
l) Mahesh Keni
Vice President Internal Audit
m) Rajesh Ajgaonkar
Chief Compliance & Legal Officer and Company Secretary
15
CHAPTER 2
2.2
16
2.3
a. Big public sector insurance companies like Life Insurance Corporation of India
(LIC), National Insurance Company Limited, Oriental Insurance Limited, New
India Assurance Company Limited and United India Insurance Company Limited
are the real threats to the company. People trust and go to them more.
17
b.
c.
d.
e.
2.21
developmental programs to accelerate his assimilation with the company, equipped with
key information and develop skills which is needed to perform the role effectively.
2) Learning and Development :IDBI are committed to designing learning experiences that
will help the employees to achieve their career objectives. The learning and development
initiatives have the right blend of coaching, mentoring, on-the-job learning, classroom
training and e-learning initiatives. Additionally, various tools and resources have been
designed to equip companys sales force plan, manage and organise their activities and
networks effectively.
18
19
CHAPTER-3
DATA COLLECTION AND PRESENTATION
3. Data Collection
The data were collected from different functional areas of the company by interviewing people
and form records and website of the IDBI Federal Life Insurance.
3.1 Finance
Finance department of IDBI Federal Life Insurance Co. is doing the allocation of
assets and
reducing liabilities over time under conditions of certainty and uncertainty. Thus, the Finance
Department deals with :
a)
b)
c)
d)
e)
f)
Financial Accounting
Reporting of key financial information to stakeholders
Performance Management reporting
Risk Management by set limits, risk management processes
Operating in a cost efficient manner
Provider of financial statements and management reports.
The Balance sheet of the company as on 30th June is shown in Table 3.1& the Profit & Loss
account ended on June 30th is shown in Table 3.2.
20
The role of IDBI Federal Life Insurance Companys Investment Section is to seek to attain
superior returns while incurring prudent levels of risk for General Board managed funds. It deals
with :
Team: Analysts and Fund manager headed by the CIO
Function: Earning higher returns on the investments and delivering the returns promised
and generate investment income.
3.12Actuarial Section
Actuarial Section of IDBI Federal Life Insurance Co. is to evaluate the probability of events and
quantify the contingent outcomes in order to minimize the impacts of financial losses associated
with uncertain undesirable events. This section takes care of following :
(i)
(ii)
(iii)
(iv)
(iv)
21
Particulars
Schedule
corresponding
previous
year
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Share capital
Reserves and surplus
Credit / (Debit) Fair value change account
Sub-Total (A)
L-8,L-9
L-10
Borrowings
Sub-Total (B)
L-11
POLICYHOLDERS' FUNDS
Credit / (Debit) Fair value change account
Policy liabilities
Insurance reserves
Provision for linked liabilities
Funds for discountinued policies
Discontinued on account of non-payment of premium
Others
79,98,096
-11,589
79,86,507
-
79,97,008
648
79,97,656
-
-66,124
2,13,42,133
1,67,73,039
0
8,245
1,47,04,381
1,71,85,078
3,94,743
-
2,76,904
-
3,84,43,791
3,21,74,608
2,68,126
3,11,009
4,66,98,424
4,04,83,273
Sub-Total (C)
APPLICATION OF FUNDS
Investments
Shareholders'
Policyholders'
Assets held to cover linked liabilities
Loans
Fixed assets
Sub-Total (E)
L-12
L-13
L-14
L-15
L-16
49,06,313
2,19,94,828
1,71,67,782
1,05,191
4,41,74,114
42,84,009
1,47,73,602
1,74,61,982
96,387
3,66,15,980
Current assets
Cash and bank balances
Advances and other assets
Sub-Total (F)
L-17
L-18
5,31,727
16,56,320
21,88,047
3,78,323
11,98,712
15,77,035
L-19
L-20
15,18,889
38,140
15,57,029
11,45,621
28,095
11,73,716
6,31,018
4,03,319
Current liabilities
Provisions
Sub-Total (G)
Net Current Assets/(Liabilities) (H) = (F) (G)
Miscellaneous expenditure (to the extent not written off or adjusted)
Debit balance in Profit & Loss Account (Shareholders' account)
Deficit in the Revenue Account (Policyholders' Account)
Sub-Total (I)
TOTAL (J) = (E) + (H) + (I)
L-21
18,02,613
33,58,553
90,679
1,05,421
18,93,292
34,63,974
4,66,98,424 4,04,83,273
CONTINGENT LIABILITIES
Particulars
22
( ` '000)
As at June 30,
2014 for
corresponding
previous
year
Partly paid-up investments
Claims, other than against policies, not acknowledged as debts by the
company
Underwriting commitments outstanding (in respect of shares and
securities)
Guarantees given by or on behalf of the Company
Statutory demands/ liabilities in dispute, not provided for
Reinsurance obligations to the extent not provided for in accounts
Others-Policy Related Claims under litigation
TOTAL
Nil
Nil
26
134
Nil
Nil
5,91,103
Nil
89,136
6,80,265
Nil
Nil
3,58,263
Nil
75,577
4,33,973
Table 3.1 Balance sheet for the period ended JUNE 30 , 2015
.
FORM L-2-A-PL
PROFIT & LOSS ACCOUNT FOR THE PERIOD ENDED JUNE 30, 2015 - Shareholders Account (Non Technical Account)
( ` '000)
Particulars
Schedule
For the
Upto the
corresponding
corresponding
quarter ended June quarter ended June
30, 2014
23
30, 2014
-
68,795
68,795
52,134
52,134
14,649
14,649
1,096
1,096
(7,042)
(7,042)
11,814
11,814
24,560
24,560
45
45
81
81
88,261
88,261
77,871
77,871
6,465
Other Income
(a) Miscellaneous Income
Total (A)
6,499
6,499
6,465
(c) Others
6,499
6,499
6,491
6,491
81,762
81,762
71,380
71,380
81,762
81,762
71,380
71,380
(18,84,375)
(18,84,375)
(34,29,933)
(34,29,933)
L-6A
26
26
Total (B)
Appropriations
(a) Balance at the beginning of the year
(b) Interim dividends paid during the year
Earnings per share (Face Value of Rs.10/- each) - Basic and Diluted (in `)
(18,02,613)
(18,02,613)
(33,58,553)
(33,58,553)
0.10
0.10
0.09
0.09
Table 3.2:-Profit & Loss Account for the period ended JUNE 30 , 2015
3.2 Marketing
IDBI follows following ways to market their products (Insurance Policies):
Digital Marketing: IDBI federal Life insurance helps to promote the brand online and
drives sales through the online marketing.
24
Branding: IDBI Federal tries to create branding image with the help ofadvertising
campaigns and this is how the company makes awareness of their products to the
people.
Channel Marketing: IDBI federal sell their insurance policies also through their agents.
Bancassurance
a) It refers to selling of insurance products through banks and IDBI Federal is also the part
of it.
b) The IRDA is in discussion with insurers and bankers and wants to assess whether it
would be possible for banks to sell products of several insurance companies. This will
help banks with greater flexibility and provide a wider choice to customers.
c) Direct Marketing :IDBI Federal frequently use mailings as part of a direct marketing
tools.
Marketing management process is shown in Figure 3.1
25
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ac
syt
s
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g
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i
i
3.21Marketing Mix
The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so
that the Insurance organization survives and thrives in the right perspective.
The IDBI Federal deals in selling services and therefore the company gives due weightage in the
formation of marketing mix for the Insurance business.
26
Figure 3.2 shows the 7 Ps of Marketing Mixof IDBI Federal Life Insurance
a) Pricing
IDBI takes into consideration the following for taking pricing decisions:
i) They charge the premium against each of their policies
ii) Interest is charged for defaulting the payment of premium and credit facility, and
iii) Commission is charged for underwriting and consultancy activities.
27
With a view of influencing the target market or prospects the formulation of pricing strategy
becomes significant. In a developing country like India where the disposable income in the
hands of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low pricing
keeping in view the level or standard of customers or the policyholders. The pricing in insurance
is in the form of premium rates.
The three main factors used by IDBI Federal Life Insurance Co. for determining the premium
rates under a life insurance plan are mortality, expense and interest. The premium rates are
revised, if there are any significant changes in any of these factors.
i)
Mortality (deaths in a particular area): When deciding upon the pricing strategy
the average rate of mortality is one of the main considerations. In a country like
South Africa the threat to life is very important as it is played by host of
diseases.
ii)
iii)
Interest: The rate of interest is one of the major factors which determine
peoples willingness to invest in insurance. People would not be willing to put
their funds to invest in insurance business if the interest rates provided by
the banks or other financial instruments are much greater than the perceived
returns from the insurance premiums.
28
b) Place
This component of the marketing mix is related to two important facts:
i)
ii)
Locating a branch.
Thus, the above two services are provided by IDBI federal. The management of agents and
insurance personnel is found significant with the viewpoint of maintaining the norms for
offering the services. This is also to process the services to the end user in such a way that a gap
between the services- promised and services offered is bridged over. In a majority of the service
generating organizations, such a gap is found existent which has been instrumental in making
worse the image problem. The transformation of potential policyholders to the actual
policyholders is a difficult task that depends upon the professional excellence of the personnel.
The agents and the rural career agents of IDBI Federal act as a link, lack professionalism. The
front-line staff and the branch managers also are found not assigning due weight age to the
degeneration process. The insurance personnel if not managed properly would make all efforts
insensitive. Even if the policy makers make provision for the quality up gradation, the promised
services hardly reach to the end users.
It is also essential that they have rural orientation and are well aware of the lifestyles of the
prospects or users. They are required to be given adequate incentives to show their excellence.
While recruiting agents, the branch managers need to prefer local persons and provide them
training and conduct seminars. In addition to the agents, the front-line staff also needs
29
c) Process
IDBI makes every effort to make the process of operation customer friendly. The speed and
accuracy of payment is of great importance to IDBI. The processing method has been made
easy and convenient to the customers. Installment schemes have been streamlined to cater to the
ever grow. However, all the above points have already been taken into considerations by IDBI
Federal Life insurance Co.
30
d) People
Being a service industry which involves a high level of people interaction, IDBI pays big
attention for using this resource efficiently in order to satisfy customers. Training, development
and strong relationships with intermediaries are the key areas which are kept under prime
consideration. IDBI attaches big importance to training of their employees and on use of IT for
efficiency, both at the staff and agent level. IDBI Federal has created various financial products
which have been tailored according to the needs of the customers. They have over thousands of
sales personnel who are trained efficiently to bridge in the gap between the customers and the
company.
e) Promotion
The insurance services depend on effective promotional measures.In promoting insurance
business, the agents and the rural career agents play an important role. In IDBI Due attention is
given by IDBI in selecting the promotional tools for agents, Branch Managers and front line
staff. They are given proper training in order to create impulse buying. Advertising and
Publicity and incentive to policyholders are used by IDBI for sales promotion. The company
also promotes their sales promotion drive by participating in exhibitions, fairs and festivals.
31
Rupees in Lacs
Year
2015
2014
2013
Budget
Rs.2000
Rs.1650
Rs.1400
Actual sales
Rs.1903.5
Rs.1587
Rs.1377
Table 3.3 Budgeted and Actual Sales of IDBI Federal Life Insurance Co.
3.23 Impact of Advertisement on Sales
The impact of advertisement on sales of Insurance Policies of company is shown in Table 3.4
Year
2014-2015
2013-2014
2012-2013
2011-2012
Expenditure on
Increase/Decrease
advertisements
of Sales
(Rs. In crores)
Rs.98.7
Rs.80
Rs.52.5
Rs.55.3
Increase
Increase
Decrease
----
Name of Policy
Amount of
Time Period
Value on maturity
1. Lifesurance Plan
Policy (Rs.)
1,20,000
(Years)
15
(Rs.)
2,29,200 + Bonus
3,00,000
1,30,000
20
5
5,39,500 + Bonus
1,74,000 + Bonus
2. Childsurance Plan
3. Incomesurance Plan
329
308.5
286
factor in relation to the economic success of the company. Responsibility for customer retention
usually falls on the most senior service executive, chief customer officer, or sometimes the
marketing chief. It is believed, however, that retention responsibility must instead be shared by
leaders across the entire organization.
The data on customer retention is given below :
a) The customers of IDBI Federal Life Insurance mean the Insurance policy holders of the
company. The following table shows the degree of retention of customer buy IDBI
Federal Life Insurance( Pitampura Branch ).
Number of policy holders
Name of products
1. Wealthsurance
2014
2013
2012 2011
2010
743
607
543
413
376
2. Termsurance
347
307
273
203
159
3.Childsurance
212
--
--
--
--
4. Incomesurance
294
--
--
--
--
5.WealthsuranceFuture
383
307
258
193
148
Star
For last 1
For 2 years
34
For 3 years
For 4 years
n
% of
year
23%
34%
27%
Or above
16%
customer
3.Childsurance
4. Incomesurance
5.WealthsuranceFuture Star
21%
16%
11%
6. Other policies
6%
Table 3.9
The respondents feedback indicates that the majority of respondents i.e. 36% of respondents
preferred Wealthsurance.
Q3. How likely it is for you to go for another policy?
% of survey respondent
64%
27%
9%
35
The feedback from respondents is very encouraging as 64% of respondents think in terms of
purchasing another policy of the company.
Q4.In thinking about the recent experience with IDBI Federal life insurance, rate the
satisfaction with the customer service received by you?
Number of respondents
Percentage
Satisfied
78
78%
Partially satisfied
22
22%
Total
100
100%
Q5.Do you recommend your friends/family members to buy IDBI Federal Life Insurance
policies?
Policy holder as per age groups
a) 28-35
b) 35-40
c) 40-45
d) 45-above
Table 3.12
Yes
No(
77%
68%
61%
54%
No
23%
32%
39%
46%
From the feedback of the respondents it is found that by and large a large percentage of
respondents has recommended to others for purchasing the insurance policies of IDBE.
36
Number of respondents
Percentage
Agree
83
83%
Partially Agree
17
17%
Total
100
100%
Q7. Are you satisfied with the features and the benefits of the insurance you took?
Number of respondents
Percentage
Satisfied
77
77%
Partially satisfied
23
23%
Total
100
100%
Table 3.14
:- Benefit Satisfaction
It is evident from the feedback of respondents that 77% are satisfied with features and benefits
of the insurance policies of IDBI.
Number of respondents
Percentage
Agree
69
69%
Partially Agree
31
31%
Total
100
100%
Percentage
Agree
67
67%
Partially Agree
33
33%
Total
100
100%
Percentage
Agree
83
83%
Partially Agree
17
17%
Total
100
100%
Q11.Does policy plans of IDBI Federal Life Insurance provide highest benefits for you?
Number of respondents
Percentage
Agree
81
81%
Partially Agree
19
19%
Total
100
100%
Q12.Does the insurance plans policy and procedure of IDBI Federal Life Insurance are
understandably easy?
Number of respondents
Percentage
Agree
93
93%
Partially Agree
7%
100
100%
Total
Q13. Is the premium payment mode of IDBI Federal Life Insurance is easy?
39
Percentage
100
100%
0%
100
100%
Agree
Partially Agree
Total
The new products developed by IDBI in last two years are listed in Table 3.21
S.No.
1.
2.
Incomesurance Policy
41
First all the necessary information about the selected candidate is given to the concerned
ii.
iii.
employees.
The concerned departmental manager provides the overall information about the
department in which he/she has been placed.
Mode of recruitment
Category of people
Through
Through
Male
Female
advertisemen campus
A. Marketing
t in News
interview
paper(Nos.)
5
(Nos.)
2
Professional
B.FinanceProfession
al
C. IT Professional
D. HR Professional
5
4
3
2
4
3
4
3
Table 3.22 Number of people recruited category wise by IDBI in last 2 years
level
11
19
19
25
12
21
level
22
27
3.5 IT Department
43
clerical
13
i.
ii.
across the world. It will also cut down costs and increase profitability.
Information Technology (IT) has played a major role in strengthening the supply chain
activity by improving operational efficiencies in procurement, production and delivery
iii.
systems.
IDBI Federal life insurance has centralised their system and they have intranet through
which they can access the information. Because of their own privacy system their
iv.
uses
their
company
website
Benefit Illustration.
IDBI Federal life insurance also uses MS-Office so as to maintain their records and to
present the ppts in training schedules.
CHAPTER 4
4.1 FINDINGS
The findings are as follows :
44
a) The majority of customers are willing to buy another policy from IDBI.
b) The majority of customers have high level of satisfaction with customer services
provided by IDBI .
c) The majority of customers are willing to recommend IDBI to friends and family.
d) The most of the customers think that process of getting a concern is fast.
e) It appears that 77% customers are happy with the features and the benefits of the
insurance.
f) It is found that the service representative are very courteous at IDBI federal insurance
and they handle customers queries quickly
g) The IDBIs service representative appear to be knowledgeable.
h) Insurance Policies of IDBI Federal Life Insurance provide highest benefits for
customers
i) The premium payment mode of IDBI Federal Life Insurance is easy.
i.
iii.
iv.
v.
complements and complaints, which are used to carry out loyalty building services and dialogs.
vi.
customer service, database marketing and sales programs are all orchestrated together and
designed to build loyalty.
Hence, at the end the researcher had some good learnings and some great experiences
of how to engage with the customers.
46
47
BIBLIOGRAPHY
Books
1.Philip Kotler. (2003). Marketing Management: Analysis, Planning, Implementation & Control,
Prentice Hall of India, Delhi. (Accessed on 24 June 2015)
Websites
1. http://www.economywatch.com/indianeconomy/indian-insurance-sector.html,
(Accessed on 24 June 2015.)
2.
http://www.indianmba.com/Occasional_Papers/OP85/op85.html,
(Accessed on 26 June 2015.)
3.
http://www.banknetindia.com/finance/insure2011.htm,
( Accessed on 28 June 2015.)
APPENDIX
QUESTINNAIRE
Q1. For how long you are associated with IDBI Federal Life Insurance?
Associatio
For 1 year
n
% of
For last 2
year
customer
1. Wealthsurance
2. Termsurance
3.Childsurance
4. Incomesurance
5.WealthsuranceFuture Star
6. Other policies
49
Q4.In thinking about the recent experience with IDBI Federal life insurance, rate the
satisfaction with the customer service received by you?
Number of respondents
Percentage
Satisfied
Partially satisfied
Total
Q5.Do you recommend your friends/family members to buy IDBI Federal Life Insurance
policies?
Policy holder as per age groups
a) 28-35
b) 35-40
c) 40-45
d) 45-above
Yes(in %)
No( No(in%)
Number of respondents
Agree
Partially Agree
50
Percentage
Total
Q7.Please think about the features and the benefits of the insurance you took. Are you
satisfied with the insurance?
Number of respondents
Percentage
Satisfied
Partially satisfied
Total
Percentage
Agree
Partially Agree
Total
Percentage
Total
Percentage
Agree
Partially Agree
Total
Q11.Does policy plans of IDBI Federal Life Insurance provide highest benefits for you?
Number of respondents
Percentage
Agree
Partially Agree
Total
Q12.Does the insurance plans policy and procedure of IDBI Federal Life Insurance are
understandably easy?
Number of respondents
Agree
Partially Agree
52
Percentage
Total
Q13. The premium payment mode of IDBI Federal Life Insurance is easy?
Number of respondents
Agree
Partially Agree
Total
53
Percentage
54