Executive summary

Someone has greatly said that practical knowledge is far better than
classroom teaching. During this project I fully realized this and come to
know about the present real world of Insurance sector. It includes all the
activities involved in providing insurance products to the final
customers. I am pleased to know about the consumers’ wants and
competitors activities in the real world of Insurance.

The subject of my study is to analyze the present insurance sector and

products offered by IDBI Federal insurance company by applying
various tools like cold calling and through direct interaction with
customers. I have also done research on the growth of private life
insurance companies in the last five years.

The report contains first of all brief introduction about the company.
Then it contains the current status of private insurance companies and
foreign insurance companies in India.

I also put forward recommendations of the consumers and conclusions

that will help IDBI Federal insurance company to provide consumer
satisfactory services in the insurance sector.
 CHAPTER-I

INTRODUCTION

ABOUT INSURANCE

 Life is full of risks. Being a social animal and risk reverse, man always tries
to reduce risk. An age-old method of sharing of risk through economic
cooperation led to the development of the concept of “insurance”.
 Insurance may be described as a social device to reduce or eliminate risk of
loss to life and property. Insurance is collective bearing of risk. The risks,
which can be insured against, include fire, perils of sea, death, accidents and
burglary.
 Insurance can be defined as a legal contract between two parties where one
party called insurer undertakes to pay a fixed amount of money on
happening of a particular event which may be certain or uncertain. The other
party called insurer pays in exchange a fixed sum known as `premium. The
insurer and the insured are also known as “Assuror and Assured”.
 Insurance is a social device where uncertain risks of individuals may be
combined in a group and thus made more certain - small periodic
contributions by the individuals provide a found out of which those who
suffer losses may be reimbursed. In addition to being a means to protect
oneself, the insurance Industry is an efficient conduit for the saving of
people to be channeled towards economic growth. In India, the Insurance
Industry7 is more than 150 years old. Today, it is monopolized by two
PSU's in their respective fields of life and General Insurance.
  However, with the successful passage IRDA Bill through both houses of
parliament in December 1999 the sector has been opened up to private
players.
 This will provided much. Needed impetus to the Industry and will improve
the quality of service and products and will also increase employment
opportunities.
 There are still some issues their need to be sorted out, particularly with
regard to the status of intermediaries as envisaged by the Insurance
Regulatory Authority.

About company

FINAMIGO CONSULTANTS PVT.LTD.

FINAMIGO Consultants Private Limited is a Private incorporated on 28

September 2018. It is classified as Non-govt. company and is registered at
Registrar of Companies, Delhi. Its authorized share capital is Rs. 1,000,000 and its
paid up capital is Rs. 50,000. It is involved in Business activities n.e.c.

Finamigo Consultants Private Limited's Annual General Meeting (AGM) was last
held on N/A and as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filed on N/A.

Directors of Finamigo Consultants Private Limited are Chetna Gumber and

Aayushi.
Finamigo Consultants Private Limited's Corporate Identification Number is (CIN)
U74999DL2018PTC339704 and its registration number is 339704.Its Email
address is info@gargbmohan.com and its registered address is Ground Floor,
House No. 52 Sandesh Vihar Pitampura DELHI North West DL 110034 IN

Current status of Finamigo Consultants Private Limited is - Active.

 Finamigo is one of India's emerging consulting firm. At finamigo, we

provide wealth management services to high and Ultra high-net-worth
individuals (HNIs & UHNIs).
 Our highly trained and specialized team engage with clients from across the
country as well as those based abroad. In addition to our custom-designed
solutions, we focus on 'un complicating' the entire process of investment for
each client.
 Our focus on building long-term relationships defines our business. Our
advisory backed by a strong product and research team, underscores the
unmatched value of the Finamigo proposition.
 At Finamigo, we cater to financial needs of Individual and corporate clients.

They are mainly working for a India’s first life insurance and focus on their life
insurance product name “India first mahajan plan”

Our identity as the leading provider of professional wealth advisory in India and
Abroad, AIM India delivers a one stop solution/ service to achieve financial
independence. Our principle is to deliver high returns to our clients through our
network of government sector banks in India. Our comprehensive wealth
management is a high level professional service that combines financial and
investment advice in accounting, taxation services and retirement planning. Our
wealth management is much more than just investment advice as we encompass all
parts of an individual's financial life. We coordinate all the services needed to
manage client's money and plan for their own and family's current and future
needs. We maintain and increase their wealth based on individual's financial
situation goals and comfort level with risk.

About my work in FINAMIGO

I had done my internship in FINAMGO under the two domain :

1. MARKETING DOMAIN

 Under this domain I learned how to sell insurance.

 I arranged meetings with the clients.
 I did cold callings.
 I sold two insurances.
 Made projects.
 Give some presentations.
2. HR DOMAIN

 Under this domain I learned how to collect data or information.

 Made assignments.
 Collect information of Hyderabad colleges.
 Cold callings.

Apart from these domains, during the learning sessions we will do many
other activities like,
 Money maker activity.
 Cake cutting on birthdays.
 Participated in many contests launching like:
 Get 125% theme.
 I phones distribution
 Certificates
 International or domestic trips.
 Company’s mission and vision

 Mission

To become an organization that is knowledge centric and offers expert advice

To our clients.

 Vision

Our vision is to deliver high rate of returns to our clients and to move towards

Financial independence.

SWOT ANALYSIS

STRENGTHS

1. Right strategy for the right products.

2. Superior customer service vs. competitors.

3. Products have required accreditation.

4. High degree of customer satisfaction.

5. Good place to work

6. Lower response time with efficient and effective service.

7. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

1. Some gaps in range for certain sectors.

2. Customer service staff needs training.

OPPORTUNITIES

1. Profit margin will be good.

2. Good extend to overseas broadly.

3. Could seek better customer deal

4. Fast- track career development opportunities on an industry wide basis.

5. An applied research center to create opportunities for developing

technique to provide added-value service.

THREATS

1. Very high competition prevailing in the industry.

2. people are not aware about this product so much.

3. Vulnerable to reactive attack by major competitors

4. Entrance of various new players in the sector.

 Chapter 2

Introduction about Topic

Investment needs of an Indian customer

 Investment is the act of putting money to work to start or expand a business

or project or the purchase of an asset, with the goal of earning income or
capital appreciation.
 Investment is oriented toward future returns, and thus entails some degree of
risk.
 Common forms of investment include financial markets (e.g. stocks and
bonds), credit (e.g. loans or bonds), assets (e.g. commodities or artwork),
and real estate.

10 reasons of investment needs of an Indian customer

1. Grow your money

Investing your money can allow you to grow it. Most investment vehicles,
such as stocks, certificates of deposit, or bonds, offer returns on your money
over the long term. This return allows your money to build, creating wealth
over time.

2. Save for retirement

As you are working, you should be saving money for retirement. Put your
retirement savings into a portfolio of investments, such as stocks, bonds, mutual
funds, real estate, businesses, or precious metals. Then, at retirement age, you can
live off funds earned from these investments.

Based on your personal tolerance of risk, you may want to consider being riskier at
a younger age with your investments. Greater risk increases your chances of
earning greater wealth. Becoming more conservative with your investments as you
grow older can be wise, especially as you near retirement age.

3. Earn higher returns

In order to grow your money, you need to put it in a place where it can earn a high
rate of return. The higher the rate of return, the more money you will earn.
Investment vehicles tend to offer the opportunity to earn higher rates of return than
savings accounts. Therefore, if you want the chance to earn a higher return on your
money, you will need to explore investing your money.

4. Reach financial goals

Investing can help you reach big financial goals. If your money is earning a higher
rate of return than a savings account, you will be earning more money both over
the long term and within a faster period. This return on your investments can be
used toward major financial goals, such as buying a home, buying a car, starting
your own business, or putting your children through college.

5. Build on pre-tax dollars

Some investment vehicles, like employer-sponsored 401(k)s, allow you to invest
your pre-tax dollars. This option allows you to save more money than if you could
only invest your post-tax dollars.

6. Qualify for employer-matching programs

Some employers offer to match the money you invest in your 401(k) plan up to a
certain amount. Of course, the only way you can qualify and earn these matching
funds is if you are actively investing in your 401(k) plan. Thus, many people invest
in their 401(k)s to gain the matching employer funds.

7. Start and expand a business

Investing is an important part of business creation and expansion. Many investors

like to support entrepreneurs and contribute to the creation of new jobs and new
products. They enjoy the process of creating and establishing new businesses and
building them into successful entities that can provide them with a strong return on
their investment.

8. Support others

Many investors like investing in people, whether they are business owners, artists,
or manufacturers. These investors feel good helping others achieve their goals.

9. Reduce taxable income

As an investor, you may be able to reduce your taxable income by investing pre-
tax dollars into a retirement fund, like a 401(k). If you generate a loss from an
investment, you may be able to apply that loss against any gains from other
investments, which lowers the amount of your taxable income.

10. Be part of a new venture

New ventures need the backing of money, and they look to investors for that
backing. Some investors may like the excitement of investing in a new, cutting-
edge product or service, or being part of something like a business or film that
introduces them to a glamorous world.

Investment pattern

The investment pattern is a long-term perspective and investing one’s hard earned
money is a serious subject that can have a major impact on investor's future
wellbeing. In fact, everyone makes savings and investments. For any investor who
invests money in various financial instruments, there will be varying degree of
risks involved. Every investor has to appraise his risk-appetite, understand his
financial goals and make investments. It is also important to analyse the risk-return
trade off and then make investment decision.

The investment is the employment of funds with the aim of achieving additional
income or growth in value. The essential quality of an investment is that it involves
"waiting" for a reward. It involves the commitment of resources, which have been
saved or put away from current consumption in the hope that some benefits accrue
in future. Broadly speaking, an 89 investment decision is a trade - off between risk
and return. All investment choices are made at points of time in accordance with
the personal investment ends and in contemplation of uncertain future.

Choice of Investments:

The choice for an investment is generally influenced by:-

1. Investor’s personal profit, age, marital status and family responsibilities.

2. Financial status, income, savings, financial commitments and tax position.

3. One’s attitude towards risk or risk appetite.

An investor’s plan for investment is developed on the following parameters:-

a. Liquidity needs: The liquidity is the conversion of the investments into cash for
meeting urgent expenses or commitments. An investor may invest his surplus
money into various kinds of investment instruments with an objective of encashing
an instrument at the earliest when needed. The investment in a savings bank
account is highly liquid and in a bond illiquid.

b. Appropriate time horizon: The money saved by the investors is used for
fulfilling future needs and the investor earns the returns on different financial
instruments as per their features. The investor chooses the savings and investment
instruments in view of his plans for future needs. Thus, investments in money
market instruments for short term and in fixed deposits/bonds for long term are
made.

c. Regular income and capital appreciation requirements: The need for getting a
regular income is one of the important criteria for some investors. An old -aged
investor may be more inclined to invest in a monthly income scheme to have
regular income for fulfilling his regular daily needs. Another investor may put the
money in a fixed deposit for 3-5 years since his need is to get cumulative returns.
Some investors are not satisfied with moderate returns and thus invest in equity
shares. This enables them to earn capital appreciation along with good returns
which are not available in banks.

d. Need for diversification: A wise investor always likes to invest the savings in a
diversified portfolio. This helps in balancing out the inherent risks of investments.
The diversification helps in minimizing the risks, if not eliminating it totally. An
investor may invest in a basket of securities and also in many company shares if
equity investments is the only option chosen. 90

e. Minimize tax liability: Some financial instruments provide tax benefits and
many plan their investment options to minimize their tax liability. The investors
normally in higher tax brackets choose to invest in LIC schemes or PPF accounts
to avail tax benefits and rebates, thus their tax liability gets reduced. The Income
Tax Act 1961 provides such benefits under various sections.

The mutual fund industry in India presents an interesting scenario of a large

number of investors, a large variety of product offerings and co-existence of
private, public and foreign Asset Management Companies. The investors, at large,
in the mutual fund industry make investments in the various schemes of mutual
funds, in view of their risk-appetite and their investment goals. Since the risk
diversification is one of the unique features of mutual fund investments, the
investment pattern of the investors is guided by the scheme objectives and one’s
financial goals. It has been largely observed that the Corporates are the dominant
investor group in the Indian Mutual Fund Industry and they account for almost
48% of the total investment (AUMs) in the industry and they are more oriented
towards non-equity funds which offer high security & liquidity and hence their
propensity towards Liquid/Money Market and debt-oriented funds; The second
dominant group in the industry is the Retail investors’ group which accounts for
almost 24% of the total investment (AUMs) in the industry, while they account for
98% of the total investors in the industry. The portfolio of this group is highly
skewed towards equity oriented schemes (almost 80%) which offer high return,
capital appreciation coupled with high risk and 18% of the portfolio accounts for
debt oriented and balanced funds.

Factors affecting investor’s investment pattern

The savings and investments have been an integral part of human existence. As the
future always remain uncertain, the money saved today comes handy tomorrow or
whenever required. The investors may have their own individual objectives for
investment.

The options for savings & investments are continuously increasing. It is possible
for an investor to have more than one of these objectives , the success of one must
come at the expense of others. The basic objectives of making savings and
investment are 93

Basic Objectives

Safety

As a matter of fact, there is no such thing as a completely safe and secure

investment. On the one hand, one may see his savings eroding in a financial
instrument and on the other, one can have ultimate safety of the investment funds
by the purchase of government securities or through the purchase of the highest
quality corporate bonds issued by the blue chip companies. Such securities are the
best means of preserving principal while receiving a specified rate of return. Even
the bank deposits provide greatest safety.

The safest investments are found in the money market and include such securities
as Treasury bills, certificates of deposit, commercial paper or in the fixed income
(bond) market in the form of municipal and other government bonds and in
corporate bonds.

Income

The safest investments are also the ones that are likely to have the lowest rate of
income, return or yield. The investors must inevitably sacrifice a degree of safety if
they want to increase their income. There is an inverse relationship between safety
and yield: as yield increases, safety generally goes down, and vice-versa.

In order to increase their rate of investment return and take on risk above that of
money market instruments or government bonds, investors may choose to purchase
the corporate bonds. Most investors, even the most conservative ones, want some
level of income generation in their portfolios.

Growth of Capital

The investor also wishes to have a rate of return from an increase in value of
investment, often referred to as a capital gain. The capital gains are entirely
different from yield as they are only realized when the security is sold for a price
that is higher than the price at which it was originally purchased. In the growth
objective, the investor seeks the possibility of long term growth.
The growth of capital is mostly concerned with the purchase of shares, which may
offer low yields but considerable opportunity for increase in value. The blue-chip
shares offer the best of all worlds by possessing reasonable safety, modest income
and potential for growth in capital generated by long-term increases in corporate
revenues and earnings as the company matures.

Secondary Objectives

Tax-Benefits

An investor may have some investments to have tax benefits as part of his or her
investment strategy. A highly-paid executive may want to seek investments with
favorable tax benefits in order to lessen the overall income tax burden, e.g.
investment in PPF or LIC policy.

Marketability / Liquidity

Many of the investments are reasonably illiquid, meaning that they cannot be
immediately sold and easily converted into cash. Achieving a degree of liquidity,
however, may require the sacrifice of a certain level of income or potential for
capital gains.

The shares are often considered the most liquid of investments, since they can
usually be sold within a day or two. The bonds can also be fairly marketable, but
some bonds are highly illiquid, or non-tradable, having a fixed term. Similarly,
money market instruments may only be redeemable on the precise date at which
the fixed term ends. If an investor seeks liquidity, non-tradable bonds should not
be held in portfolio. It is seen from each of the five objectives discussed above that
the advantages of one often comes at the expense of the benefits of another. If an
investor desires growth, for instance, he or she must often sacrifice some income
and safety.

The choosing of a single strategic objective and assigning weights to all other
possible objectives depends on such factors as the investor's temperament, stage of
life, marital status, family situation, and so on. Each investor is sure to find an
appropriate mix of investment opportunities. One needs to be concerned with
spending the appropriate amount of time and effort in finding, studying and
deciding on the opportunities that match one’s objectives.

Each mutual fund describes its investment objective in its prospectus along with
the strategy the fund manager follows to meet that objective. The mutual fund
investors often look for funds whose stated objectives are compatible with their
own goals.
 Chapter 3

Research methodology

Objective of the study:

•To find how many people associated with “FINAMIGO CONSULTANTS PVT.
LTD”.

•To find how many of the respondents feel that insurance is essential for one’s life.

•To know the purpose of taking insurance policy.

•To know that what respondents feel about the FINAMIGO company

Link with India’s First life insurance schemes.

•To find the main source of awareness of “FINAMIGO consultants pvt.ltd”.

company among the various media.

• From where the respondents came to know about FINAMIGO insurance plan.

Sampling factors Data collection Primary data:

The primary data for this study is collected with the objective in mind “a study on

the customer needs and pattern of an Indian customer in insurance industry of

FINAMIGO CONSULTANTS”.

Secondary data

The secondary data for the study is collected with the information that is
being published in journals and magazines and from the internet.

Tools

The data required for the study is collected with the help of questionnaire. These

Questionnaries are handed over to the customers and asked to get it filled up. The

data is interpreted from the information that is incurred from the questionnaire

Sampling area

The respondents are the people who reside in Delhi

Sample size

Due to the limitation of time and scope of the study the number of respondents

from which the data is collected is 100.

Research Tools of analysis

Analytical techniques are used to obtain findings and arrange information in a

logical sequence from the data collected. After tabulation of the data, researcher

used the following quantitative techniques

1. Percentage Analysis

The data that is obtained is from the questionnaire is analyzed through percentage

analysis. The results are shown on the percentage basis

2. Graphs

Graphical representations are used to show the results in simple form .The graphs

are prepared on the basis of data that is received from the percentage analysis.

Limitation of study:

The study suffers from a few limitations, which will have to be kept in mind for the

findings to be fairly interpreted.

 The recommendations are subjected to time and cost constraint.

 Sampling has its own limitations, which would have resulted in minor errors.
 There can be errors due to bias of respondents.
 The size of the sampling was not big enough to arrive at strong conclusion.
 The results should be interpreted with the above limitations in perspective.