A

Project Report
on

“ THE INVESTMENT OF INSURANCE FUND IN INDIA”

at
“Shriram life insurance company limited”
Submitted to the Savitribai Phule Pune University in
Partial Fulfillment of Requirement for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

Mr.AMIT PRABHAKAR MAMALE

MBA –III Semester

UNDER THE GUIDANCE OF

Dr.Jyoti Bhanage

ATSS’s
Institute of Industrial and Computer
Management and Research
Pradhikaran,Nigdi,Pune

Batch 2019-21

1
 INSTITUTECERTIFICATE

This will be given by our Institute

2
 COMPANYCERTIFICATE

(Company Letter head)

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr./ Ms. ………………. has successfully completed summer internship
project work entitled “……………………..
……………………........................................................................” during the period from
………………..to …………………. . Best wishes for future endeavours

Date:

Place:

Authorized signatory

(With company seal)

3
 FORMAL EVALUATION SHEET

(Company Letter head)

This is to certify that Mr. / Ms. ………………. has completed summer Internship at our
organisation. The task handled by him / her are as follows

• Nature and Quantum of work:

• Effectiveness and Overall Professionalism:

• Learning outcome:

• Utility of SIP to the host organization:

Date:

Place:

Authorized signatory

(With company seal)

4
 STUDENT DECLARATION

I, the undersigned, hereby declare that the Project Report titled “The investment of insurance
fund in india” written and submitted by me to the Savitribai Phule Pune University in partial
fulfillment of the requirements for the award of degree of Master of Business Administration
under the guidance of Dr.Jyoti Bhanage is my original work and the conclusions drawn therein
are based on the material collected by myself.

Date:

Place Signature of the Student

ACKNOWLEDEGMENT

5
I take this opportunity to express my profound gratitude to Our Director, Dr. Abhay
Kulkarni, Our HOD Adv. Manisha Kulkarni whose wisdom as well as foresight, I
continually benefit from. I am indebted to them for extending me all the cooperation and
patronage they render towards us. They have been wonderful supporters and continuous
motivators for me which helped me in turning my ordinary project into an excellent one.
I also take this opportunity to express a deep sense of gratitude to Company project guide
Ms.Ipsita Tambat,(Relationship Manager, Shriram Life Insurance Company Limited) for
his/her cordial support, valuable information and guidance, which helped me in completing this
task through various stages.
I am obliged to staff members of Shriram Life Insurance Company Limited, for the
valuable information provided by them in their respective fields. I am grateful for their
cooperation during the period of my SIP.
It is my privilege to express my profound gratitude and deep regards to my project guide
Dr.Jyoti Bhanage for his/her exemplary guidance, monitoring and constant encouragement
throughout the course of this summer internship project. The blessing, help and guidance given
by her/him time to time shall carry me a long way in the journey of life on which I am about to
embark.
I am also very thankful to all SME, Dr. Jyoti Bhanage, Mr. Maruti Prasad, Mr. Vinod Bhelose,
Dr. Khushboo Sahu, Ms. Dipti Bajpai, Mr. Harshal Patil, Ms. Kiran Rao, and associated
faculty Dr. Sudhir Hasamnis, Mr. Jeetendra Sharma, Mr. Sudhakar Kulkarni and Mr. Sunil
Joshiwho laid the foundations of various concepts as well as fruitful discussions and
suggestions has helped me to enrich my project work.
I also take immense pleasure to thank Ms. Neha Inamdar, Head-Corporate Relations, for giving
me an opportunity and placing me for the SIP and Project Coordinator Ms. Jayasri Murali for
supporting us throughout the process of SIP. Moreover, I specifically thank our Librarian Dr.
Manik Rajopadhye for her guidance for referring the right books, right journals and project
reports etc.
Lastly, I thank almighty, my parents, brother, sisters and friends for their constant
encouragement without which this summer internship project would not be possible.

 
Place : Pune Signature of the Student
Date : Name of the Student

INDEX

6
SR. NO. CONTENTS PAGE NO.
1 Executive Summary
(Introduction, Objective of the Study, Need of the
Study, Scope of the Study, Research Methodology, Data
Analysis ,Limitations of the Study ,Learning from the
Project,Contribution to the Host Organization)
2 ORGANISATION PROFILE
(Company history in short, Vision, Mission,
Organizational Chart, Share market Value if any,
Company Turnover, Product mix and Competitors)
Theoretical Background, Literature Review
3 OUTLINE OF THE PROBLEM /
TASK UNDERTAKEN
Objective of the Study
Scope of the Study
4 RESEARCH METHODOLOGY
4.1 Definition
4.2 Research Design
4.3 Data Collection Methods
4.4Sample Design
4.5Sample Size
4.6 Research Instrument
4.7Statistical Techniques and Analytical Tools
5 DATA ANALYSIS &
INTERPRETATION(Statement, Tables, Graphs )
Interpretation
6 FINDINGS&OBSERVATIONS
7 SUGGESTIONS & RECOMMENDATIONS
8 KEY LEARNINGS
(Individual, Concept)Limitations, further scope for
research
9 CONTRIBUTION TO THE HOST
ORGANIZATION
10 CONCLUSIONS
11 REFERENCES (APA Style)-
Bibliography, Webliography
12 ANNEXURE

7
 Chapter 1

Executive Summary

8
Chapter 1

Executive Summary
This report is about two month’s summer internship with where Interns got
the opportunity to put their knowledge into practice. For my summer
internship programme 2020, I am interning with Shriram life insurance
company limited .The project emphasizes on "The Investment of Insurance
Fund In India.." WITH REFERENCE TO Shriram life insurance company limited ”

1)Objective of the study:

1. To examine the Indian Insurance market and make a comparative study of
the operations and claim settlement procedures of Public Sector and Private
Sector Life Insurance Companies.

2. To study the different mechanisms of risk calculations, underwriting

procedures, premium and investment and claim settlement procedures in
public sector and private sector Life Insurance Companies.

3. To assess the performance of Public sector vis a vis Private Sector Life
Insurance Companies.

2)Need Of The Study:

Population and low penetration of insurance in India is big opportunity for
insurance sector in India. Though, the insurance has been prevailing in India
since 1818 with establishment of Oriental Insurance Company, but the growth
rate of insurance sector in India still is not satisfactory. By 1956, there were
total 245 Indian and foreign insurance companies and provident societies. The
level of competition was very high and companies had to face the allegations
of unfair trade practices. In 1956, the government of India nationalized the life
insurance sector by consolidating 245 companies under one single corporation
named Life Insurance Corporation of India. In 1999, the government opened
the insurance sector for domestic and foreign companies to enter into the
insurance sector.

9
3)Scope of the study:
1)increasing health and sellf awareness.

2)it has become a good source of investment for some people

3)A scope of loss is different from an estimate in the amount of detail it

provides

4) A scope of loss is typically more detailed than an estimate. A clear and

complete scope of loss helps a property owner get a fair, full and prompt

5)insurance claim settlement and resist "lowballing", should that occur.

4)Research Methodology:

Research methodology is a way to systematically solve the research problems.

It may be understood as a science of studying how research is done

scientifically.

6)Data Analysis:
The process of inspecting, cleaning, transforming, and modeling data with the
objective of discovering useful information, arriving at conclusions, and
supporting the decision making process is called Data Analysis. There are
multiple facets and approaches with diverse techniques for the data analysis

7)Limitations of Study :
1)Insurance company shows bias to the insured as it does not compensate all
types of losses.

2)It consumes more time to provide financial compensation because lengthy

legal formalities.

3)It does not provide enough financial facilities like the bank does.

4)no control over costs

8)Learning from the project:

10
I have learned a lot of content, especially how to handle your calm, patient and
peaceful situation and how to prepare people to take the product and how to
give them information.

9)Contribution to the host Organization:

suggest that host organizations benefit in four ways: fulfillment of corporate
social ... opportunities irrespective of gender, race, or class; and contributing
towards

11
 Chapter 2

Organization Profile

12
COMPANY PROFILE:-
Shriram Group – A Brief Profile Shriram Group, established in 1974, is among
the leading corporate houses in India and is a major player in the Indian
financial services sector. Shriram Group’s focus is on financial services that
reach out to a large number of common people providing them opportunities
to improve their prosperity. With its philosophy of "Customers Are Really
Everything" (C.A.R.E.), Shriram Group has taken the financial services to the
doorsteps of the common man. This focus on the common man has proven to
be a profitable business strategy and has resulted in millions of win-win
relationships for the Group. Shriram Capital Limited (SCL) is the overarching
holding arm of the financial services entities of the Group. Financial Services
constitute the core business of the Group. Shriram Group’s presence in
financial services is diverse ranging from Commercial Vehicle Financing, Retail
Financing, Enterprise Financing to small business, Housing Finance, Equipment
Financing, Life Insurance, General Insurance, Retail Stock Broking, Distribution
of Financial Products and Wealth Advisory Services. Financial Services
Companies in the Group manage assets of around INR 1,500 billion. Shriram
Transport Finance Co. Ltd. (a listed entity), the flagship company of the Group
is the largest Asset Financing NBFC in the country and a leading player in the
pre-owned commercial vehicle financing segment. Shriram Group has a
presence all over India in retail finance through Shriram City Union Finance Ltd.
(a listed entity) which is also a leading NBFC. Shriram City has a dominant
presence in small enterprises finance segment and is a market leader in two
wheeler financing. Shriram Group entered the insurance business with a long
term focus and to provide better value and wider range of services to its
customers. Sanlam, a leading financial services group and one of the largest
insurers in South Africa has partnered Shriram Group in both its Life and Non-
Life Insurance ventures. The effective leveraging of the network and brand
equity of Shriram Group and strategic guidance by Sanlam Group have
facilitated a steady growth of the insurance companies.

13
VISION:
 The Shriram Life Insurance Company was founded with the objective
of reaching out to the “common man” with products and services that
would be helpful to him as he sets out on the path to “prosperity”.

Mission:
 Operational efficiency, integrity and a strong focus on catering to the
needs of the average Indian , by offering him high quality and cost-
effective products and services, are the core values that drive the
organisation. These values have been strongly adhered to over the
decades and are now an integral part of the organisation’s DNA.
 The company prides itself on its deep understanding of the customer.
Each product or service is tailor-made to specifically suit the needs of
the customer.

14
\

15
16
17
18
19
 Chapter 3

OUTLINE OF THE PROBLEM /TASK UNDER TAKEN

20
OBJECTIVES OF THE STUDY

Objective of study:
 To examine the Indian Insurance market and make a comparative
study of the operations and claim settlement procedures of Public
Sector and Private Sector Life Insurance Companies.

 To study the different mechanisms of risk calculations,

underwriting procedures, premium and investment and claim
settlement procedures in public sector and private sector Life
Insurance Companies.

 To assess the performance of Public sector vis a vis Private Sector

Life Insurance Companies.

Scope of Study:

1)increasing helth and self awareness.

2)it has become a good source of investment for some people

3)A scope of loss is different from an estimate in the amount of

detail it provides

4) A scope of loss is typically more detailed than an estimate. A

clear and complete scope of loss helps a property owner get a
fair, full and prompt

21
 Chapter 4
RESEARCH METHODOLOGY

22
CHAPTER 4. RESEARCH METHODOLOGY

 Research methodology
the representative sample from the world or the general
population, the right research tools and techniques to
complete the research.
The research process is based upon survey method, so in
order we go to service provider and service user which is the
customers.
According to Clifford Woody research comprises defining and
redefining problems Research methodology is an important
part of every project. Because it helps in knowing
how to select,formulating hypothesis or suggesting solutions;
collecting, organizing and evaluating data;
making deductions and reaching conclusions; and lastly
carefully testing the conclusions determine whether they fit
the formulating hypothesis

 Meaning of research:
Research is defined as “a scientific and systematic search for
pertinent information on a specific topic”. Research is an art of
scientific investigation. Research is a systematized effort to gain
now knowledge. It is a careful investigation or inquiry especially
through search for new facts in any branch of knowledge
Identify the section where errors can occur.

 Capturing those errors in a systematic way.

 Prioritizing the errors out of which concentration can be put
on most important error.
 Identifying the level of improvement by doing an analysis
against the
parameters after rectifying error.

23
 Determining the technical parameters needed to stop future errors to
be

 Research Process

Step 1: In this first step the problem is identified. Since the

company is small scale, it

doesn't any particular method to manage its inventory.

Step 2: In this second step the planning of the research design is

done.

Step 3: In the third step, data is collected according to the needs

and requirement. The data

collected is in the form of primary and secondary data.

Step 4: On the basis of collected data the information is

analyzed using various tools and

use methods.

Step 5: After data is analyzed, it is interpreted. Findings and

observations are noted down

on the basis of analysis.

Step 6: After interpretation, suggestions are given as to what all

changes can be done.

Step 7: On the basis of the entire report conclusion is done

which reflects the overall
performance, observations, findings etc.

24
 RESEARCH DESIGN USED IN THE STUDY:

Descriptive research design is used in this study because it will

ensure the minimization of bias and maximization of reliability of
data collected. Descriptive study is based on some previous
understanding of the topic. Research has got a very specific objective
and clear cut data requirements The researcher had to use fact and
information already available through financial statements of earlier
years and analyse these to make critical
evaluation of the available material. Hence by making the type of the
research conducted to be both Descriptive and Analytical in ure. From the
study, the type of data to be collected and the procedure to be used
for this purpose were decided.

 SOURCES OF DATA:-

Essentially there are two types of data, Primary and

Secondary.
Primary Data are those which are collected afresh and for the
first time, and thus happen to be original in character.
Secondary Data are those which have already been collected by
someone else and which have been passed through the
statistical process. It may include data collected from books,
journals, newspapers, research projects, magazines, annual
reports and publications of various associations connected with
business and industry, diaries, letters, unpublished biographies.
The researcher has used the secondary source of data which
includes the data collected from the internet and books
Common sources of secondary data for social science include
censuses, information collected by government departments,
organizational records and data that was originally collected for
other research purpose

For this project data is collected from internet so we will call it a

secondary data.
25
 Chapter 5
DATA ANALYSIS & INTERPRETATION

26
 DATA ANALYSIS

STATEMENT:-
 Life Insurance Density and Penetration in India
The potential and performance of the Insurance sector is universally
assessed with reference to two parameters.
1. Insurance Density
2. Insurance Penetration
The measure of Life Insurance penetration and density reflects the
level of development of life insurance sector in a country.
 Life Insurance Density Life Insurance density is defined as
the ratio of premium underwritten in a given year to the total
population.

 Market share based on premium and policies of

public and private sector Life insurance companies

 Market Share based on Total Premium

The most important indicator to assess life insurers is the amount of
premium collected. The sum assured is fragmented into installments
of premium. In other words, premium is the fragmented value of the
Sum Assured of policy, payable continuously at regular intervals until
the maturity of the policy. The total premium consists of first year
premium, Renewal Premium and Single Premium.

27
 The amount of premium otherwise called premium rate, depends
on:
 Mortality experience of insured lives
 Expenses incurred by the company in administrating the life fund
Yield on investments of life fund
 Besides these three, the premium rates may also be affected by
other factors namely interest rate sand taxation rates

28
 `TABLE : 01
MARKET SHARE BASED ON TOTAL PREMIUM
Year Public Sector(%) Private sector (%)
2000-01 99.98 0.02
2001-02 99.46 0.54
2002-03 97.99 2.01
2003-04 95.29 4.71
2004-05 90.79 9.33
2005-06 85.70 14.24
2006-07 81.92 18.10
2007-08 74.40 25.60
2008-09 70.92 29.08
2009-10 70.10 29.90

Market Share based on Total Premium

120

100

80

Public Sector
60
Private sector

40

29.08 29.9
20 25.6
18.1
14.24
9.33
0 2.01 4.71
0.02
1 0.54
2 3 4 5 6 7 8 9 0
0 -0 1 -0 2 -0 3 - 0
4 -0 5 -0 6 -0 7 -0 8 -0 9 -1
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00

CHART :1

29
Interpretation:
Table 1 shows the market share of public and private sector life
insurance companies based on total premium.
The total premium of Life Insurance Corporation of India increased
continuously since 2000-01to 2009-10.However a significant decline
is noticed in market share from 99.98% in 2000-01 to 70.10% in
2009-10. While in case of private sector, the total premium income
and market share of total premium have both increased.
The market share of private sector life insurance companies on the
basis of total premium has increased from 0.02% in 2000-01 to
29.90% in 2009-10. It reflects that the private sector has been
successful in capturing the market share from Life Insurance
Corporation of India.
Due to stiff competition from the private players, Life Insurance
Corporation of India has lost nearly30% market share based on total
premium .Life Insurance Corporation of India is still the market
leader at present.

30
 TABLE : 02
MARKET SHARE BASED ON TOTAL PREMIUM
YEAR PUBLIC SECTOR PRIVATE SECTOR
(%) (%)
2000-01 99.93 0.07
2001-02 98.65 1.35
2002-03 94.30 5.70
2003-04 87.66 12.34
2004-05 78.78 21.22
2005-06 73.52 26.48
2006-07 74.32 25.68
2007-08 64.02 35.98
2008-09 60.89 39.11
2009-10 65.08 34.92

MARKET SHARE BASED ON TOTAL PREMIUM

120

100

80

PUBLIC SECTOR
60
PRIVATE SECTOR

40
35.98 39.11 34.92
20 26.48 25.68
21.22
12.34
0 5.7
0.07 1.35
01 - 02 -0
3
-0
4
-0
5
-0
6
-0
7
-0
8
-0
9
-1
0
00 0 1- 02 3 4 5 6 7 8 9
20 20 20 2 00 2 00 2 00 2 00 2 00 2 00 2 00

CHART :2
31
Interpretation:
Market Share based on New Business
Premium collected on the new business is called first year premium.
It also includes single premium. It is the first Premium collected by
the insurance companies from policy holders
Table 2 shows the market share of public and private sector life
insurance companies based on New Business.
The market share of Life Insurance Corporation of India on the basis
of the first year premium in the year 2000-01 was 99.93% but it
declined to60.89% in 2008-09 and has slightly risen to 65.08% in
2009-10while the market share of private sector life insurance
companies was only 0.07% in 2000-01, which increased up to39.11%
in 2008-09 and slightly declined to 34.92% in 2009-10.The growth in
first year premium of private sector was fuelled by sales of unit
linked products

32
 TABLE : 03
MARKET SHARE BASED ON RENIUAL PREMIUM
YEAR PUBLIC SECTOR PRIVATE SECTOR
(%) (%)
2000-01 99.99 0.01
2001-02 99.98 0.02
2002-03 99.60 0.40
2003-04 98.55 1.45
2004-05 96.18 3.82
2005-06 92.82 7.18
2006-07 89.02 10.98
2007-08 83.42 16.58
2008-09 77.43 22.57
2009-10 73.64 26.36

MARKET SHARE BASED ON RENIUAL PREMIUM

120

100

80

PUBLIC SECTOR
60
PRIVATE SECTOR

40

20 26.36
22.57
16.58
10.98
0 7.18
1.45 3.82
0.01 0.02 0.4
1

9
2

0
-0

-0

-0

-0

-0

-0

-0

-0

-0

-1
00

01

02

03

04

05

06

07

08

09
20

20

20

20

20
20

20

20

20

20

CHART :3
33
Interpretation:
Market Share based on Renewal Premium
Premium collected on business in force is called renewal premium.
Increase in the renewal premium is a good measure of quality of the
business underwritten by the insurer. It reflects increase in their
persistency ratio and enables insurers to bring down overall cost of
doing business
Table 3 shows the market share of public and private sector life
insurance companies based on Renewal premium.
The public sector recorded 99.99% market share based on renewal
premium in the year 2000-01 but it has decreased to 73.64% in the
year 2009-10.
While that of the private sector recorded 0.01% in the year 2000-01
which increased to 26.36% in the year 2009-10.Private sector has
managed to take away nearly 26% of the market share from LIC of
India. LIC of India is still the market leader in this segment

34
 TABLE : 04
MARKET SHARE BASED ON TOTAL POLICIES
YEAR PUBLIC SECTOR PRIVATE SECTOR
(%) (%)
2000-01 99.23 0.77
2001-02 93.98 6.02
2002-03 96.75 3.25
2003-04 94.21 5.79
2004-05 91.48 8.52
2005-06 79.08 10.92
2006-07 82.83 17.17
2007-08 73.93 26.07
2008-09 70.52 29.48
2009-10 73.02 26.98
chart
MARKET SHARE BASED ON TOTAL POLICIES
120 4
100

80
PUBLIC SECTOR
60
PRIVATE SECTOR
40

20 26.07 29.48 26.98

17.17
10.92
0 6.02 3.25 5.79 8.52
0.77
1 2 3 4 5
0 0 0 0 0 06 07 08 09 10
0 0- 0 1- 0 2- 0 3- 0 4- 0 5- 0 6- 0 7- 0 8- 0 9-
20 20 20 20 20 20 20 20 20 20

Interpretation:
Market Share based on Total Policies

35
The life insurance contract provides elements of protection and investment.
After getting insured, the policy-holder feels a sense of protection because he
shall be paid a definite sum at death or maturity. Since a definite sum must be
paid, the element of investment is also present. In other words, life insurance
provides

against pre-mature death and a fixed sum at maturity of policy. The two
elements of protection and investment exist in various degrees in different
types of policies. The older the policy, the lesser the element of protection and
higher the element of investment and vice-versa is also true.

Having different elements in different policies, the policy-holders are free to

choose the best policies according to their requirements. It should, be known
that no one policy is the best policy for all the policy-holders due to variance in
cost, elements of investments and protection, requirements of the policy-
holders and availability of the policy. Life insurance policies are divided on the
basis of duration of policy, method of premium payments and participation.

Table 4 shows the market share of both the public and the private sector life
insurance companies based on total policies. The market share of LIC of India
was 99.23% in the year 2000-01.It has decreased to 73.02% in the year 2009-
10. While that of the private sector was0.77% in the year 2000-01 and
increased to 26.98% in the year 2009-10.

There are concerns over Life Insurance Corporation of India’s declining

market share based on total policies and concurrent rise of private insurers
who have just entered ten years ago. Innovative products, smart marketing
and aggressive distribution channels has enabled private life insurance
companies to sell policies .As of today, Life Insurance Corporation of India
has retained the market share based on total policies.

36
 Market share of private life insurance companies based on total
premium (%)
Table:5
Life 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
01 02 03 04 05 06 07 08 09 10
Insurer
HDFC 9.54 12.27 13.30 9.54 8.89 10.41 10.11 9.43 8.63 8.83
standard
Life
Insurance
Co.Ltd.
Max New 2.24 14.29 8.63 6.90 5.35 5.23 5.31 5.27 5.98 6.12
York Life
Insurance
Co.Ltd.
ICICI 83.73 42.70 37.32 31.70 30.59 28.26 28.02 26.31 23.81 20.83
Prudential
Life
Insurance
Co.Ltd.
Kotak NA 2.78 3.60 4.83 6.03 4.12 3.44 3.28 3.63 3.61
Mahindra 3.61
Life
Insurance
Co. Ltd.
Birla Sun 4.49 10.38 12.86 17.23 11.85 8.33 6.25 6.32 7.09 6.94
Life
Insurance
Co. Ltd.
TATA NA 7.77 7.26 8.13 6.43 5.84 4.84 3.97 4.26 4.40
AIG Life
Insurance
Co. Ltd.
SBI Life NA 5.39 6.47 7.23 7.78 8.10 10.37 10.90 11.18 12.73
Insurance
Co. Ltd.
ING NA 1.54 1.89 2.84 4.39 2.82 2.50 2.25 2.24 2.07
Vysya
Life
Insurance
Co. Ltd.
BAJAJ NA 2.61 6.18 7.08 12.96 20.78 18.93 18.87 16.47 14.39
ALLIAN
Z Life
Insurance
Co. Ltd.

37
AVIVA NA NA 10 10 10 9 8 9 11 11
Life
Insurance
Co.Ltd.
SAHARA NA NA NA NA 13 13 14 14 17 19
India Life
Insurance
Co.Ltd.
SHRIRA NA NA NA NA NA 14 13 13 13 15
M Life
Insurance
Co.Ltd.
Bharti Axa NA NA NA NA NA NA 15 15 14 14
Life
Insurance
Co.Ltd.
Future NA NA NA NA NA NA NA 17 18 17
Generali
India Life
Insurance
Co.Ltd.
IDBI NA NA NA NA NA NA NA 16 15 16
Fortis Life
Insurance
Co. Ltd.
Canara NA NA NA NA NA NA NA NA 16 13
HSBC
Oriental
Bankl of
Commerce
Life
Insurance
Co.Ltd.
Argon NA NA NA NA NA NA NA NA 20 21
Religare
Life
Insurance
co.Ltd.
DLF NA NA NA NA NA NA NA NA 21 22
premercia
Life
Insurance
Co.Ltd.
Star Union NA NA NA NA NA NA NA NA 19 18
Dai-Ichi
Life
Insurance
co. Ltd.
India First NA NA NA NA NA NA NA NA NA 20
Life
Insurance
Co. Ltd.

38
Observation:
Private Life Insurance companies have raised their market share
based on total premium from 0.02% in 2000-01 to 39.90 % in 2009-
10. ICICI Prudential Life Insurance Company has consistently retain
its first position based on total premium from 2000-01 to 2009-10,
even though the company has reduced its market share from 83.73%
in 2000-01 to 20.83% in 2009-10.The market share based on total
premium of SBI Life Insurance Co. Ltd. has increased from 5.39% in
2001-02 to 12.73% in 2009-10.While that of Bajaj Allianz Life
Insurance Co. Ltd. has increased from 2.61% in 2002-03 to 14.39%.
Also Reliance Life Insurance Co. Ltd. increased its market share from
0.10 in 2002-03 to 8.32% in 2009-10.
This signifies that there is lot of competition among the private life
insurance companies in India. ICICI Prudential Life Insurance
Company continues to be the largest private life insurance player.

39
 Chapter 6
FINDINGS & OBSERVATIONS

40
 FINDINGS &OBSERVATIONS
 Findings related to Investment Pattern of Private Insurance
Companies.
This section deals with findings related to investment pattern of private
insurance companies. Under this section, findings related to hypothesis 1 and
hypothesis 2 are presented. In India, investment pattern of insurance
companies is broadly divided into three categories. These are government
securities investments;
housing & infrastructure investments; and approved & other investments

 Growth and Trends of Investments of the Insurance Sector in India

during Post Privatization

Insurance industry is the trustee of public money as by nature of business it

attracts long term funds. Insurance companies are now among the major
institutional investors around the globe. The insurance sector is a colossal
one and growing at healthy rate. Over the last few years, insurance industry
has been gone through intense changes and faced more challenges. At
meantime, when the economy needs long term funds to start ball rolling on
future growth, insurance can provide right balance in terms of volume as
well in terms of tenure. However, insurance companies are mandate to
follow investment norms prescribed by IRDAI which hampers insurance
companies’ investments in capital market to fund growth of either
infrastructure projects or manufacturing sector.

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 Chapter 7
Suggestions & recommendations

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 Suggestions & recommendations
 In India, there are extensive regulations governing investment pattern of
insurance companies. There are quantitative investment limit for investment
in certain classes of securities. These restrictions seem to suppress insurance
companies from

 Investment performance is a critical success factor since it affects the whole

performance of business management. Insurers must sustain their relative
efficiency because declining profit could cause serious business failure.
Investment performance extends the ability of an insurer to deliver higher
rate of return to its policy owners and shareholders. Good investment
performance can enhance its competitive position. Fortunately, investment
efficiency of private life and private non-life insurance companies has been
improved over the years. It is hence very important for the insurance firms
to keep up their investment performance and try to improve it further .

 Proper reporting of diverse aspects of insurance business to the regulator is

of vital significance especially in areas that are strictly mandated. There
should be timely divulgence of the particulars by insurance companies to
enable the regulator to analyze the composition of their investments.
Disclosure of information would also empower policyholder and
shareholders to deliberately make their decisions. The investment
committees of the insurers should bear out that there is not the slightest
chuck hole in the timely reporting of their
investment activities.

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 chapter 8
KEY LEARNINGS

44
 LEARNING FROM SIP

 The summer internship project has given the opportunity to learn and
know about real corporate experience and understand working
environment. Practical knowledge is the best experience and on this basis,
we can easily understand about what they want to say.Firstly each student
knows about the theory, so that on the basis of theory, he can easily learn
how to do the work and what is the best way to achieve satisfaction. That is
why we can say that theory is guidelines for practical.

 During my internship what we learnt in theories about financial

management, human resource management, and also about marketing, I
experienced all those functional departments working in the real situations
which was quite amazing

 The working of the functional departments helped me like financial

department allocated funds, human resource department providing
training, and selection of new candidates,performance appraisal motivating
employees.

 It was really helpful for me because Shriram Life Insurance Company is

based on insurance policy as product which is a push based product, so it
helped me to learn about real marketing exposure

 During our summer internship project, I did research about consumer

awareness about Shriram Life Insurance, which helped me to learn general
preference of people for investment, awareness about all insurance
companies, preference for buying insurance and also awareness about
Shriram life Insurance and their products.

 The summer internship project also helped to analyze how a company is

working with such competition and also with competitors doing their
business.

 The experience with Shriram Life Insurance was really handful and very
cooperative with employees and heads of the company.

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 At the end it has helped that how work in real life exposure, which will
ultimately help me to work when I start working in the corporate sector.

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 Chapter 9
CONTRIBUTION TO THE HOST ORAGANIZATION

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 Chapter 10
CONCLUSIONS

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 Conclusions

 Insurance companies collect premium from millions of

policyholders over a long period. In turn, they assure financial aid
to the beneficiary on happening of specified event.

 Therefore, insurance companies should invest their funds

judiciously with the combined objectives of liquidity, profitability
and safety.

 However, insurance companies have been following investment

pattern stipulated by the provisions of the Indian Insurance Act
1938 and investment regulations of IRDAI.

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 Chapter 11
BIBLIOGRAPHY,WEBLIOGRAPHY

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 BIBLIOGRAPHY:-

BOOKS
 Shanmugham, R. 2000, Factors Influencing Investment Decisions.
Indian Capital Markets -Trends and Dimensions (ed), New Delhi:
Tata McGraw-Hill, 2000.

 Chandra Prasamia, Investment Analysis and Portfolio

Management, Tata McGraw Hill Publishing Company Ltd, India,
2005

WEBLIOGRAPHY:-

 https://shriramlife.com/

 https://s.docworkspace.com/d/ACWlx_rzrMJEkaiWtd6dFA

 www.sanlam.com

 www.irda.com

 Company manual

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 Chapter 12
ANNEXURE

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