CONSUMER AWARENESS TOWARD SBI LIFE INSURANCE

A six Weeks Internship Report

Submitted for the partial Fulfillment of the Requirement for the Award of Degree of
Master in Business Administration

Under the Mentorship of

Deepak kaplesh
Designation of the mentor
Submitted by
Mitali Mehra
University Roll No- 18MBA0311
3 Semester MBA
rd

Academic Session 2019-20

Himachal Pradesh Technical University Business School
Rajiv Gandhi Government Engineering College Kangra Campus at Nagrota
Bagwan District – Kangra Himachal Pradesh 176047

CERTIFICATE
Dated…./…./…..
Himachal Pradesh Technical University Business School[HPTUBS]
Rajiv Gandhi Government Engineering College [RGGEC]
Kangra at Nagrota Bagwan (Massal)
Himachal Pradesh (India) – 176047

This is certify I Mitali have carried out the research proposal embodied in present six weeks
internship report for the partial fulfillment of the degree of Master in Business Administration as
per the ordinances of Himachal Pradesh Technical University. I declare to the best of my
knowledge that no part of this internship report earlier submitted for the award of Master in
Business Administration and other reseaech degree of any University.
 --------------------------------
Name: Mitali
Urn : 18MBA0311
Dr. sanjeev sir
HPTUBS

ACKNOWLEDGEMENT
First of fall I would like to thank the SBI LIFE INSURANCE.for giving me the opportunity to
do my 45 days project training in their esteemed organization. I am highly obliged to Mr.MONU
kumar (Baranch Manager) for granting me to undertake my training at Dharamshala branch.
I express my thanks to all Employees under whose able guidance and direction, I was able to
give shape to my training. Their constant review and excellent suggestions throughout the project
are highly commendable.
I also express my thanks to my teacher Dr.sanjeev sir for boosting me to complete the project.
My heartfelt thanks go to all the executives who helped me gain knowledge about the actual
working and the processes involved in various departments.

Name – Mitali Mehra

PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated debate
forsome years. The policy makers where in the catch 22 situation wherein for one they wanted
competition, development and growth of this insurance sector which is extremely essential for
channeling the investments in to the infrastructure sector. At the other end the policy makers had
the fears that the insurance premia, which are substantial, would seep out of the country; and
wanted to have a cautious approach of opening for foreign participation in the sector.
As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw
the day of the light thanks to the maturing polity emerging consensus among factions of different
political parties. Though some changes and some restrictive clauses as regards to the foreign
participation were included the IRDA has opened the doors for the private entry into insurance.
Whether the insurer is old or new, private or public, expanding the market will present multitude
of challenges and opportunities. But the key issues, possible trends, opportunities and challenges
that insurance sector will have still remains under the realms of the possibilities and speculation.
What is the likely impact of opening up India’s insurance sector.
The large scale of operations, public sector bureaucracies and cumbersome procedures hampers
nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer
service, speed and flexibility. They point out that their entry will mean better products and choice for the
consumer. The critics counter that the benefit will be slim, because new players will concentrate on
affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-
up costs-such as those of setting up a conventional distribution network-are large and high-end niches
offer better returns. However, the middle-market segment too has great potential. Since insurance is a
volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting
customer segments that are currently untapped.
 ABOUT COMPANY

SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI),
the largest state-owned banking and financial services company in India, and BNP Paribas
Cardif. BNP Paribas is a French multinational bank and financial services company with global
headquarters in Paris. SBI owns 62.1% of the total capital and BNP Paribas Cardif 22% of the
capital. Other investors are Value Line Pvt. Ltd. and MacRitchie Investments Pte. Ltd., holding
1.95% of the total capital each and remaining 12% with Public. SBI Life Insurance has an
authorized capital of ₹20 billion (US$290 million)and a paid up capital of ₹10 billion (US$140
million).

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave company a
AAA/Stable/P1+ rating.[2][3]

SBI life insurance is Public Limited Listed company. SBI Life Insurance Listed on BSE And
NSE (Stock Exchange of India). SBI Life started as a joint venture with BNP Paribas in 2001.
While in its initial stage its business was mainly from banc assurance channel, now it is
developing its own agency team for selling its life insurance products.

standards in India and in the process to manage the entire array of post trade activities of
Financial Institutions and Foreign Institutional Investors with dedicated client relationship teams
and state-of-the-art reporting systems.
The corporation quickly garnered nearly 70% market share of the domestic custodial business
and the financial figures shot up impressively for the first decade of its existence.
With sustained market leadership, the biggest investing body of the country in its client list, SBI
ensures that its technology support not only holds enormous databases together but also makes
sense and service out of it too.
The Smithsonian Institute’s Award for “Innovative Use of Technology in the Field of Finance”
in1996 and “Computer Society of India Award” were affirmations of its efforts, long before
information technology started leapfrogging across the country.
SBI has also received “No Action Letter” from Securities Exchange Commission (SEC) of USA,
which renders it an eligible institution to hold assets of US-based funds.

SBI Life Insurance Policy Plans

India is one of the countries which most of the residents secure their belongings,
life and health by getting insurance. One of the successful insurance companies in
India is the SBI Life Insurance. This is a private bank that provides personal
insurance and other services for insurance. It works with the principle that life is
vague so everyone must save for emergency purposes.
SBI Beginning: The Company is composed of two banks that merged together.
These two banks are the State Bank of India and the French Insurance Company.
The company provides pension services and insurance services that are in
concurrence with the two companies’ portfolios depending on the condition of the
clients. The good thing about SBI is that, the services that they offer are obtained
through the entire financial guidance programs. Some of these programs are
medical insurance, corporate banking, personal banking, and SBI mutual funds.

SBI Services: The main objective why the company was created is to offer clients
insurance policies and long term care that are very affordable. The company
ensures that they are able to give life insurance that suits the financial status of
every individual. Aside from that, they also want to give services that can easily be
accessed. Because of the advancement of technology, internet is now accessible to
everyone. SBI Life Insurance Company offers its services online for easy access of
their clients. Clients should login to their company site and right away clients can
avail the complete services the company. They also have round the clock customer
support. This is to ensure that they are able to give assistance to their clients
anytime needed.

To enumerate the services that the company offers, some of them are as follows:

Life Insurance Services: Claims processing, New admission processing,

Administration of policies, Tracking of premium, Administration of insurance
advisors

Property Insurance Services

Casualty Insurance Services: Administration of recent policies, New business

administration, Claims processing , Premium processing

Health Insurance Services: New business administration, Current policies, Claims

processing

These are the primary insurance services that SBI Life Insurance offers. Though a
few companies encounter some problems in their business, this company still
manages to provide excellent insurance services to its clients. Despite of some
failures, still it is one of the best insurance companies in India that is widely trusted
 by the residents. The company continues to offer outstanding services to its clients
at very fair rate.

Vision of the Company:

 To be the most trusted and preferred life insurance provider

 This vision of the company is slowly being achieved with the foray of the company into
new financial services and products into its portfolio the latest to be the Insurance
product, which would be soon distributed.

Mission of the Company:

 To emerge as the leading company offering a comprehensive range of life insurance and
pension products at competitive prices ensuring high standards of customer satisfaction
and world class operating efficiency there by becoming a model life insurance company
in india in the post liberalization period.
 To create long term value by empowering individual investor’s thousand
superior financial services supported by culture based on highest level of teamwork,
efficiency and integrity.

 objectives
Main objectives of the project is to find out the strategies of different insurance agencies and
evaluate them. Project is about to penetrate the competitors of SBI life. Conclusion of this
projects can give an idea of strategies of different companies which may be helpful to the
company.
To study the insurance sector industry in India.
To study the marketing strategies of SBI life insurance .
To analyze the market share of SBI insurance in life insurance sectors .
To study the market size of different insurance companies .
To differentiate the company with its market competitors.
To study the future plan of the company .

EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector has the maximum growth
and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-
80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts
me to enter in this sector and Insurance has given me the opportunity to work and get experience
in highly competitive and enhancing sector.
The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed through a
distribution channel. In Insurance sector, distribution channel includes only agents or agency
holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX
etc have adequate agents in the market they can capture big market as compared to the other
companies.
Agents are the only way for a company of Insurance sector through which policies and benefits
of the company can be explained to the customer.

Table of Content
Chapter No. Title Page No.

Certificate
Ackowledgement
Preface
About Company
Executive Summary
1. Introduction
1. Introduction 12
2. Life Insurance 14
3. General Insurane 16
4. Health Insurance 17
5. Insurance Sector Reform 20
1. Sturture 20
2. Competition 20
3. Regulatory Body 20
4. Investment 20
5. Cutomer Services 20
1. Insurance Regulatory Authority
2. Insurers 21
2. Life Insurers 21
2. General Insurers 21
2. Mojor Players in the Insurance Industry in India 22
2. Life Insrance Corporation of India
1. ICICI Prudential Life Insurance 22
1. General Insurance Corporation Of India
 22
1. Frequently Term Used
23

24

27
2. Research Methodology
2.1 Reaearch Methodilogy 32
2. Objective of the Study 32
2. Research Design 32
2. Data Collection 33
2. Colection from Primary Sources
2. Collection from Secondary Sources 33
2. Sampling Design
2. Samplin Procedure 33
34
34
3. Data Interpretation & Analysis
3. Classification of the basis of Age Wise
3. Classificationof the Basis of Insurance Policy
3. Classification on the Basis of Education Level 36
3. Classification on the Basis of Occupation 37
3. Classifaction on the Basis of Marital Status
38
3. Classification on the Basis No. of Dependents
3. Classification on the Basis of Annual Income 39
3. Classification on the Basis of Reason to Take Policy
40
3. Classification on the Basis of Policy Chocie
3. Classification on the Basis of Awareness Through 41

42

43

44

45
4. Conclusion, Finding & Suggestions
3. Finding
3. Conclusion 48
3. Suggestion 48
3. Limitation of the tudy 49
 49

Bibliography 51
Questionnaire 51

CHAPTER – I
 INTRODUCTION

1.1 INTRODUCTION
1818 saw the advent of life insurance business in India with the establishment of the Oriental
Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870
saw the enactment of the British Insurance Act and in the last three decades of the nineteenth
century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in
the Bombay Residency. This era, however, was dominated by foreign insurance offices which
did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and
London Globe Insurance and the Indian offices were up for hard competition from the foreign
companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India.
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life
business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a view to protecting
the interest of the Insurance public, the earlier legislation was consolidated and amended by the
Insurance Act, 1938 with comprehensive provisions for effective control over the activities of
insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a
large number of insurance companies and the level of competition was high. There was also
allegation of unfair trade practices. The Government of India, therefore, decided to nationalize
insurance business..
An Ordinance was issued on 19 January, 1956 nationalizing the Life Insurance sector and Life
th

Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16
non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The
LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17 century. It came to India as a
th

legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd, was set up. This was the first company to transact all classes of
general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of
India. The General Insurance Council framed a code of conduct for ensuring fair conduct and
sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalization) Act, general
insurance business was nationalized with effect from 1 January, 1973. 107 insurers were
st

amalgamated and grouped into four companies, namely National Insurance Company Ltd., the
New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to nearly 200 years.
The process of re-opening of the sector had begun in the early 1990s and the last decade and
more has seen it been opened up substantially. In 1993, the Government set up a committee
under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations
for reforms in the insurance sector. The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein, among other things, it
recommended that the private sector be permitted to enter the insurance industry. They stated
that foreign companies be allowed to enter by floating Indian companies, preferably a joint
venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in
April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower premiums, while ensuring
the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on
insurance business to protection of policyholders’ interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a national
re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.
Today there are 31 general insurance companies including the ECGC and Agriculture Insurance
Corporation of India and 24 life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with
banking services, insurance services add about 7% to the country’s GDP. A well-developed and
evolved insurance sector is a boon for economic development as it provides long- term funds for
infrastructure development at the same time strengthening the risk taking ability of the country.

1.2 LIFE INSURANCE

In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life
Insurance Company. First attempts at regulation of the industry were made with the introduction
of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were
made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the
power given to the Government to collect statistical information about the insured and the high
level of protection the Act gave to the public through regulation and control. When the Act was
changed in 1950, this meant far reaching changes in the industry. The extra requirements
included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in
such companies to prevent dominant control (to protect the public from any adversarial policies
from one single party), stricter control on investments and, generally, much tighter control. In
1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was
heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical
practices adopted by some of the players against the interests of the consumers” then led the
Indian government to nationalize the industry. In September 1956, nationalization was
completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It
was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: The market contained 154 Indian and 16 foreign life insurance company.
1.3 GENERAL INSURANCE
 The General Insurance industry in India dates back to the Industrial Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the
British brought General Insurance to India, and a similar path was followed in the development
of this industry. A number of private companies were in existence for years and years until, in
1971, the Indian Government decided that the public interest would be served by nationalizing
the industry, merging all the 107 companies into four companies, depending on the sort of
business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company
Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the
United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras
respectively. The General Insurance Corporation (GIC) was set up in 1972 as a ‘holding’
company, having these four companies as its subsidiaries.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
1.4 Health Insurance
Over the last 50 years India has achieved a lot in terms of health improvement. But still India is
way behind many fast developing countries such as China, Vietnam and Sri Lanka in health
indicators (Satia et al 1999). In case of government funded health care system, the quality and
access of services has always remained major concern. A very rapidly growing private health
market has developed in India. This private sector bridges most of the gaps between what
government offers and what people need. However, with proliferation of various health care
technologies and general price rise, the cost of care has also become very expensive and
unaffordable to large segment of population. The government and people have started exploring
various health financing options to manage problems arising out of growing set of complexities
of private sector growth, increasing cost of care and changing epidemiological pattern of
diseases.
The new economic policy and liberalization process followed by the Government of India since
1991 paved the way for privatization of insurance sector in the country. Health insurance, which
remained highly underdeveloped and a less significant segment of the product portfolios of the
nationalized insurance companies in India, is now poised for a fundamental change in its
approach and management. The Insurance Regulatory and Development Authority (IRDA) Bill,
recently passed in the Indian Parliament, is important beginning of changes having significant
implications for the health sector. The privatization of insurance and constitution IRDA envisage
to improve the performance of the state insurance sector in the country by increasing benefits
from competition in terms of lowered costs and increased level of consumer satisfaction.
However, the implications of the entry of private insurance companies in health sector are not
very clear. The recent policy changes will have been far reaching and would have major
implications for the growth and development of the health sector. There are several contentious
issues pertaining to development in this sector and these need critical examination. These also
highlight the critical need for policy formulation and assessment. Unless privatization and
development of health insurance is managed well it may have negative impact of health care
especially to a large segment of population in the country. If it is well managed then it can
improve access to care and health status in the country very rapidly.
Health insurance as it is different from other segments of insurance business is more complex
because of serious conflicts arising out of adverse selection, moral hazard, and information gap
problems. For example, experiences from other countries suggest that the entry of private firms
into the health insurance sector, if not properly regulated, does have adverse consequences for
the costs of care, equity, consumer satisfaction, fraud and ethical standards. The IRDA would
have a significant role in the regulation of this sector and responsibility to minimize the
unintended consequences of this change. Health sector policy formulation, assessment and
implementation is an extremely complex task especially in a changing epidemiological,
institutional, technological, and political scenario. Further, given the institutional complexity of
our health sector programmers and the pluralistic character of health care providers, health sector
reform strategies in the context of health insurance that have evolved elsewhere may have very
little suitability to our country situation. Proper understanding of the in dial health situation and
application of the principles of insurance keeping in view the social realities and national
objective are important. This paper presents review of health insurance situation in India the
opportunities it provides, the challenges it faces and the concerns it raises. A discussion of the
implications of privatization of insurance on health sector from various perspectives and how it
will shape the character of our health care system is also attempted. The paper following areas:

• Economic policy context

• Health financing in India

• Health insurance scenario in India

• Health insurance for the poor

• Consumer perspective on health insurance

• Models of health insurance in other countries

This paper is partly based on a deliberations of a one day workshop (IIMA 1999) and a
conference held at 11M Ahmedabad (IIMA 2000) in 1999-2000 on health insurance involving
practicing doctors, representatives from government insurance companies, medical associations,
training institutes, member-based organizations and health policy researchers. Workshop and
conference were part of the activities of Health Policy Development Network (HELPONET) and
is supported by the International Health Policy Program. The paper also draws on several
published and unpublished papers and documents in the area of health insurance.

1.5 INSURANCE SECTOR REFORM:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI GovernorR.N.
Malhotra was formed to evaluate the Indian insurance industry and recommend itsfuture,
direction. The Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector.
In 1994, the committee submitted the report and some of the key recommendations included:
1.5.1 STRUCTURE:
1. Government stake in the insurance Companies to be brought down to 50%.
 2. Government should take over the holdings of GlC and its subsidiaries so that these
subsidiaries can act as independent corporations.
3. All the insurance companies should be given greater freedom to operate.

1.5.2 COMPETION:
1. Private Companies with a minimum paid up capital of Rs. 1 ban should be allowed to
enter the industry
2. No Company should deal in both Life and General Insurance through a single entity.
3. Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
4. Postal Life Insurance should be allowed to operate in the rural market.
5. Only one State Level Life Insurance Company should be allowed to operate in each state.

1.5.3 REGULATORY BODY:

1. The Insurance Act should be changed.
2. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part
from the Finance Ministry) should be made independent.
3. Government stake in the insurance Companies to be brought down to 50%.
4. Government should take over the holdings of GlC and its subsidiaries so that these
subsidiaries can act as independent corporations.
5. All the insurance companies should be given greater freedom to operate.
1.5.4 INVESTMENT:
1. Mandatory Investments of LIC Life Fund in government securities to be reduced
from75% to 50%.
2. GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).

1.5.5 CUSTOMER SERVICES:

1. LIC should pay interest on delays in payments beyond 30 days.
2. Insurance companies must be encouraged to set up unit linked pension plans.
3. Computerization of operations and updating of technology to be carried out in the
insurance industry. The committee emphasized that in order to improve the customer
Services and increase the coverage of the insurance industry should open up to
competition. But at the same time, the committee felt the need to exercise caution as any
failure on the part of new players could ruin the public confidence in the industry. Hence,
it was decided to allow competition in a limited way by stipulating the minimum capital
requirement of Rs. 100 crores. The committee felt the need to provide greater autonomy
to insurance companies in order to improve.

1.6 INSURANCE REGULATORYAUTHORITY

On the recommendations of the Malhotra Committee, government has set up an interim
Insurance Regulatory Authority (IRA), with a view to activate an insurance regulatory apparatus
essential for proper monitoring and control of the insurance industry. The IRAis headed by a
chairman who is also Controller o0f insurance and chairman of TBC. The other members of the
IRA, not exceeding seven in number of whom not more than three shall serve full time, shall be
nominated by the central government.

1.6.1 INSURERS:
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:
1.6.2 LIFE INSURERS:
 Life Insurance Corporation of India (LIC)
 ICICI PRUDENTIAL LIFE INSURANCE

1.6.3 GENERAL INSURERS:

 General Insurance Corporation of India (GIC) (with effect from Dec ‘2000, a national
reinsure)
1.7 MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA
1.7.1 LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the
message of life insurance in the country and mobilize people’s savings for nation-building
activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,
Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.
The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United
Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-
 India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,
Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.
In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC
recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy
average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per
cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty line, with
50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's
at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth
rate for Life insurance business has been 19.22 per cent per annum
1.7.2 ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI
Bank Limited and Prudential Corporation Holdings Limited.
ICICI Prudential Life began its operations in fiscal year 2001 and has consistently been amongst
the top players in the Indian life insurance sector. Our Assets Under Management (AUM) as on
*

31 March 2018 were `1,395.3 billion.

st

At ICICI Prudential Life, we operate on the core philosophy of customer centricity. We offer
long term savings and protection products to meet different life stage requirements of our
customers. We have developed and implemented various initiatives to provide cost-effective
products, superior quality services, consistent fund performance and a hassle-free claim
settlement experience to our customers.

In FY2015 ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India to
be listed on NSE and BSE.
1.7.3 General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known as
General Insurance Corporation of India (GIC) was formed by the Central Government in
November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers
which were operating in the country prior to nationalization, were grouped into four operating
companies, namely, (i) National Insurance Company Limited; (ii) New India Assurance
Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance
Company Limited. (However, with effect from Dec'2000, these subsidiaries have been de-linked
from the parent company and made as independent insurance companies). All the above four
subsidiaries of GIC operate all over the country competing with one another and underwriting
various classes of general insurance business except for aviation insurance of national airlines
and crop insurance which is handled by the GIC.
In other word, General insurance means managing risk against financial loss arising due to
fire,marine or miscellaneous events as a result of contingencies, which may or may not occur.

General Insurance means to “Cover the risk of the financial loss from any naturalcalamities viz.
Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which are beyondthe control of the
owner of the goods for the things having insurable interest with theutmost good faith by
declaring the facts about the circumstances and the products bypaying the stipulated sum , a
premium and not having a motive of making profit from theinsurance contract.”

SOME OF THE GENERAL RULES:

MIS-DESCRIPTION:
The insurance policy shall be void and all the premiums paid by insured may beforfeited by the
insurance company in the event of mis-presentation or mis-declaration and/or non-disclosure of
any material facts.
REASONABLE CARE:
The insured shall take all reasonable steps to safeguard the property insuredagainst any loss or
damage. Insured shall exercise reasonable care that onlycompetent employees are employed and
shall take all reasonable precautions toprevent all accidents and shall comply with all statuary or
other regulations
FRAUD:
If any claim under the policy may be in any respect fraudulent or if any fraudulentmeans or
device are used by the insured or any one acting on the insured’s behalf to obtain any benefit
under the insurance policy, all the benefits under theinsurance policy may be forfeited.
FEW BASIC PRINCIPAL OF GENERAL INSURANCE ARE:
a. Insurable interest
b. Utmost good faith
c. Subrogation
d. Contribution
e. Indemnity
RISK OF LOSS NOT COVERED GENERAL INSURANCE ARE:
The loss or damage or liability or expenses whether direct or indirect occasion byhappening
through or arising from any consequences of war, invasion, act of foreignenemy, hostilities
(whether war be declared or not), civil war, rebellion revolution, civilcommotion or loot or
pillage in connection therewith and loss or damage caused bydepreciation or wear and tear.
However the risk of loss or damage by war can be insuredby payment of additional premium
in some cases only.

1.8 FREQUENT TERMS USED

AGENT:
An insurance company representative licensed by the state, who solicits,negotiates or effects
contracts of insurance, and provides service to the policyholder farthe insurer.

ACTUAL TOTAL LOSS

It is a loss where the goods are completely lost and become irrecoverable

ADDITIONAL COVER
An insurance policy extended to cover additional risk perils such as strikes. Riotsand Civil
commotion etc on payment of extra premium.

AGREED VALUE POLICY:

Policy which undertakes to pay a specified amount in case of total loss.Under this case the policy
does not take into account the current market value.

ASSESOR:
Person who estimates the value of goods for the purpose of apportioning the sumpayable by the
underwriters to settle the claims. Also called as Surveyor.

ASSURED:
Party indemnified against 19ss by means of insurance.
BURGLARY:
It is a theft committed by breaking into or out of the premises. Evidence of breaking In, Is
necessary.

COVERAGE:
The scope of protection provided under a contract of insurance; any of several riskscovered by a
policy.

CARGO INSURANCE:
A generic term used in both inland marine and ocean marine insurance todesignate the type’s of
insurance available to provide coverage for cargo that is beingtransported by truck, rail, air, ship,
or boat.

CERTIFICATE OF INSURANCE:
A statement of coverage issued to an individual insured, specifying the insurancebenefits and
principal provisions applicable to the member.

CLAIM:
The formal request by a policyholder or a claimant for payment of loss under aninsurance policy.

CO-INSURANCE:
A provision under which an insured who carries less than the stipulatedpercentage of insurance
to value, will receive a loss payment that is limited to the sameration which the amount of
insurance bears to the amount required.

COVER NOTE:
Is the document that is issued provisionary pending issuance of insurance Policy.

INDEMNITY:
Legal principle that specifies an insured should not collect more than the actualcash value of a
loss but should be restored to approximately the same financial positionas existed before the loss.

INSURABLE INTEREST:
A condition in which the person applying for insurance and the person who is toreceive the
policy benefit will suffer all emotional or financial loss, if any untouchedevent occurs. Without
insurable interest, an insurance contract is invalid.

INSURANCE:
Social device for minimizing risk of uncertainty regarding loss by spreading therisk over a large
enough number of similar exposures to predict the individual chance of loss.

NET PREMIUM:
The portion of premium rate which is designed to cover benefits of the policy,excluding
expenses, contingencies and profit.
POLICY:
Is the legal document that has the conditions of the insurance contract.Premium:It is the amount
paid to secure an insurance policy.

SALVAGE:
Recovery made by an insurance company by the sale of property which has beentaken over from
that insured as a part of loss settlement. The remains of damaged vehicleor any other property.

THIRD PARTY:
Any person other than the two parties signing an insurance, contract.

UNDERWRITTING:
Underwriting of a risk involves consideration of material, facts on the basis of which a decision
will be taken whether to accept the risk and if so at what rate of premium.
 CHAPTER II
RESEARCH METHODOLOGY

2.1 RESEACRH METHODOLOGY

A research methodology is a sample framework or a plan for study that is used as a guide for
conducting research. It is a blueprint that is followed in processing research work. Thus in good
research methodology the line of action has to be chosen carefully from various alternatives. A
research design is the arrangement of conditions for the collection of data and analysis of data. In
fact research design is the conceptual structure within which research is conducted.
The research specifies the information required to address needed issues, designs the methods for
collecting information, manages and implements the data collection process analyzes and
communicates the finding and their implications.
The research methodology implemented in this research report primarily consists of personal
interviews with those very investors in Solan city who invest through the insurance companies in
Solan.

2.2 OBJECTIVE OF THE STUDY

The project consumer awareness towards insurance products is undertaken to achive the
following objectives:
1. To create the awreness of the insurance products in people.
2. To give buying tips to make their insurance prosper.
3. To known the investor perception towards investmentin insurance fund as compare with
other investment tools.

2.3RESEARCH DESIGN
The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby ensuring you will effectively
address the research problem it constitutes the blueprint for the collection measurement and
analysis of data.
Research design stands for advance planning of methods to be adopted for collective the relevant
data and the techniques to be used in their analysis keeping in the view the objective of research
and the availability of the time and money. Research design in the fact has a great bearing on
reliability of result arrived at.
The research study carried out is descriptive and diagnostic in nature. Descriptive research
includes surveys and fact finding and enquires of different kinds. The major purpose of these
types of research id descriptive of states of affair as it exists at present. The main characteristics
of this study method are that the researcher has no control over the variables; he can only report
what is happening.
In this research we seek to measures item like:
 Preference of people among various investment options and insurance policies
 Awareness of insurance among general public
 Behaviour patern of investors

2.4 DATA COLLECTION

] The data is of two types:
 Primary data
 Secondary data
Primary data are those which are collected a fresh and for the first time and thus happens to be
original in character. Secondary data are those which have already been collected by some one
else and which have been passed through the statistical process. In our research we have used
both types of data
2.4.1 COLLECTION OF PRIMARY DATA
We have collected primary data using:-
 Questionnaires
 Personal Interview
 Telephone

2.4.2 COLLECTION OF SECONDARY DATA

In our research we are using various sources of collection of published and unpublished data
with the help of fact sheets of various companies, annual reports, news bulletins and information
broachers, web sites.

2.5 SAMPLING DESIGN

After research design is made, next step is to design a sample and the sample will made after
considering the objectives of research and budgetary constrains.

2.6 SAMPLING PROCEDURE

The sample size taken in the research is 100. In our research we have used probability sampling.
Probability sampling is those based on random sampling, systematic sampling, stratified, and
area sampling. In our research we have used stratified sampling. In the study the population from
which the sample to be drawn does not constitute a homogenous group. So, we apply stratified
sampling so as to obtain representative sample. Under the techniques, the population is stratified
in to different sub population known as strata ad sample items are selected for each stratum.
 CHAPTER III
DATA ANALYSIS & INTERPRATATION

DATA ANALYSIS & INTERPRETATION

Data analysis and interpretation is the process of inspecting, cleaning, transforming and
modeling data with the goal of discoveries useful information, suggesting conclusion and
supporting decision making.
Data interoperation is that in which we analysis the whole collected data & tries to give itin
simple words to be understandable.
We have used some charts (Pie chart, column chart, cylinder chart, cone chart) and hypothesis
tests (chi-square one sample T-test etc.)
3.1 TABLE CLASSIFICATION OF AGE WISE

Age Group No. Of Respondent % of Respondant

Up to 30 29 29

30-40 34 34
40-50 24 24

Above 50 13 13

Total No. Of Repondent 100 100

FIG 3.1

The following graph depicts that 63% of the repondents below the age of 40 and the only 13%
repondents are above the age 50. The indicates that young people are more aware and conscious
toward insurance policies category.
3.2 TABLE CLASSIFIACTION OF THE BASIS INSURANCE POLICY

Policy No. Of Respondent % of Respondemt

Life Insurance 42 42

General Insurance 36 36

Health Insurance 22 22

FIG 3.2
The following graph depicts that 42% of the repondents brought life insurance policy, 36% of the
respondents are brought general insurance and only 22% of the repondents are brought health
insurance.

3.3 TABLE CLASSIFICATION ON THE BASIS OF EDUCATION LEVEL

Education level No. Of Respondents % of Respondents

10th level 14 14

12th level 24 24

Graduates 48 48

Post Graduates 14 14

Total 100 100

FIG 3.3
The following graph depicts that 14% of the respondents have education till 10th and 24% of the
respondents are 12th pass, 48% respodents are graduates, 14% are post graduates. It inclides that
graducates are much concious than under gradutates.

3.4 TABLE CLASSIFICATION ON THE BASIS OF OCCUPATION

OCCUPATION No. Of Respondents % of Respondents

Govt. 28 28

Private 42 42

Professional 18 18

Self Employed 12 12

Total 100 100

FIG 3.4
The following figure show that 42% of the respondents are private employees, 28% are govt.
Employees, 18% are professional and 12% are self employee it means emoployyes are more
aware towards insurance policies.

3.5 TABLE CLASSIFICATION ON THE BASIS OF MARITAL STATUS

Marital Status No. of Respondents % of Respondents

Married 66 66

Single 34 34

Total 100 100

FIG 3.5
It is observe that from the above table that 66% respondents are married & 34% repondents are
single married persons are more aware of insurance.
3.6 TABLE CLASSIFICATION ON THE BASIS NO. OF DEPENDENTS
Dependents No. of Respondents % of Respondents

1 32 32

2 16 16

More than 2 52 52

Total 100 100

FIG 3.6
It is observed that from the above table that 52% repondents have more than 2 dependents, 16%
repondents have 2 depentdents and 32% have 1 dependents.

3.7 TABLE CLASSIFICATION ON THE BASIS OF ANNUAL INCOME

Annual Income No. of Respondents % of Repondents

Below 100000 18 18

100000-250000 34 34

250000-500000 22 22

Above 500000 26 26

Total 100 100

FIG 3.7
The following graph depicts that 34% of the repondents are in the income level of 100000-
250000, 26% repondents has got above 500000 income, 22% of repondents comes in net annual
income and rest 18% comes under below 100000 category.

3.8 TABLE CLASSIFICATION ON THE BASIS OF REASON TAKE

POLICY
Reason to take Policy No. of Respondents % of Respondents

To Cover risk 30 30

To Avoid Tax 16 16

Investment 34 34

Good Returns 20 20

Total 100 100

FIG 3.8
It is observed that from the above table that 30 repondents take insurance policy to secure their
future, 16 respondents that take insurance to avoid tax and 34 take insurance for investment p
urpose, 20 respondents observe that it gives good return.

3.9 TABLE CLASSIFICATION ON THE BASIS OF POLICY CHOICE

Particular No. of Respondents % of Respondents

Term Plan 36 36

Money Back 24 24

Riders 20 20

Endowment Plan 20 20

Total 100 100

FIG 3.9
The following figure show investor attitude towards the policy 36 respondent wants to take term
plan 24 reapondents wants to take money back 20 respondents wants to take riders ,consumer is
much crazy is taking term policy.
3.10 TABLE CLASSIFICATION ON THE BASIS OF AWARENESS
THROUGH
Awareness No. of Repondents % of Respondents

Friends 24 24

Agents 36 36

Advertisment 20 20

Other 20 20

Total 100 100

FIG 3.10
The following graph depicts that 36% of the respondents get knowledge through agents in
mutual funds, 24% repondents get knowlwdge through friends, and 20% get knowledge from
advertisment and other sources.

CHAPTER - IV
FINDING, CONCLUSION & SUGGESTION
4.1 FINDING
Based on my analysis of data collection during my research works on “Consumer Awareness
Towards Insurance Product” I have got following findings:
1. 63% of the respondents belong to the age group of 40 years.
2. 62% of the repondent have their education level up to college.
3. Majority of the respomdent i.e. 42% belongs to private jobs
4. 66% of the respondents are in married category
5. 52% of the respondentshave more than two members as dependents
6. Maximum respondents have income level Rs. 100000-250000
7. Covering risk is the major reason to take insurance
8. Majority of the investors want to take term plans
9. Most of the repondent come to know about new companies through agents
10. Premium offered is the main reason to choose a new company
4.2 CONCLUSION
Our exhaustive research in the field of Life Insurance threw up some intresting trends which can
be seen in the above analysis. A general impression that we gathered during Data collection was
the immense awareness and knowledge among people about various companies and their
insurance products. People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.
People in general have been impressioned by the marketing and advertising campaigns of
insurance companies. A high penetration of print , radio and Television ad campaigns over the
years is beginning to have it’s impact now.
Another heartning trend was in terms of people viewing insurance as a tax saving and investment
instrument as much as a protective one. A very high number of respondants have opted for
insurance for such purposes and it shows how insurance companies ahve been successful to
attract public money in recent times.
4.3 SUGGESTION
1. Their should be transparency in context of charges taken by insurance companies
2. Allocated of units should be clearly stated in case of ULIPS
3. It is advisable for the agents that they should make regular follow up with the insurer.
4.4 LIMITATION OF THE STUDY
1. There was limited time in which this project has to be completed. Therefore it was a
major limitation of the study.
2. The area covered in this project was only Solan.
3. There was little intereraction with the people as we were only limited with in area.
4. The accurate desision can not to taken by the information collected, people were reducate
while giving their personal information.

BIBIOGRAPHY
 www.insurancemagic.com
www.investor.com/scripts/insureer.asp
www.moneyguru.com
www.delhischools.com/career/insurance.htm
QUESTIONNAIRE
A Study on Consumer buying behavior towards insurance with special reference to Solan,
Himachal Pradesh.
Dear respondent, This questionnaire is aimed at understanding your perception about Insurance
Corporation of India .Your response will be dealt with strict confidentiality and it will be used
only for academic purpose. Thank you for spending your valuable time to fill this questionnaire.

Name:

Gender A. Male B. Female

Contact No:-

1. What is the age?

a) Up to 30 b) 30-40 years
c) 40-50 years d) Above 50

2. What is your Qualification?

a) 10th b) 12th
c) Graduate d) Post Graduate

3. What is the Occupation?

a) Private Job b) Govt. Job
c) Professional d) Self Employed

4. What is Marital Status?

a) Married b) Unmarried

5. What is Annual Income?

a. Below 100000 b) 100000-250000
c. 250000-500000 d) Above 500000

6. Reason to take Insurance Policy?

a. Safety c) Tax Saving
b. Investment d) Good Returns

7. Which policy more bought?

a) Life Insurance b) General Insurance
c) Health Insurance
 8. Total number of policies bought
a) One b) Two
c) More than two

9. Mode of Payment
a) Monthly b) Quarterly
c) Half-Yearly d) Yearly

10. Policy would u like to ptrefer?

a) Term Plan b) Endowment plan
c) Riders d) Moey Back

11. What are your sources of awareness?

a) Adeversiement b) Friends
c) Agents d) Other