References

In order to obtain more information regarding the present study

and to substantiate it with theoretical proof, the following
references were made: -

 Insurance chronicle, January 2006 Special issue

“Insurance Industry 2006”.

Websites visited:

 www.kotaklifeinsurance.com
 www.google .com

1
 TABLE OF CONTENTS
Contents Page No.
Acknowledgements 5
List of Tables 6
List of Illustrations/Diagrams 7
Executive Summary 9
Chapter 1: introduction 10
 Objective 15
 Limitation 17
 Research Mythology 19
 Data Collection 22
Chapter 2: Life Insurance Industry 23
 Industry profile 24
 important milestones in the life insurance business 29
 Insurance sector reforms 31
 IRDA 32
Chapter 3: Contribution of Life Insurance Industry 36
 Contribution of Life Insurance in the Economy 36
 Flow of Insurance Industry in India 37
 Structure of life Insurance Industry 40
 Life Insurance industry 41
 Aggregation of Long Term Savings 42
 Spread of financial services in rural Areas 43
 Long term funds for infrastructure Development of Capital 44
Markets/Economic Growth
 Employment generation 45
 Special Features 46
 Growth Potential 47
 Phase of transition 47
Chapter 4:Company Profile 49
 Management 51
 Area of Business 56
 KMOM progress till date 65
 KMOM-the partnership and Lineage 66
 Products 69
 Hierarchy of KMOM of Surat branch 71

2
Chapter 5: Survey 72
 Data interpretation , editing and coding 73
 Graph analysis 73
Chapter 6: Finding and Suggestion 83
Chapter 7: Conclusion 84
Chapter 8: References 85
Chapter 9: Annexure 86

Chirag Patel
List of Tables

Name of Tables Page no

• Potential of Life Insurance sector 38
• Market share of LIC and all private 38
player
• Individual Market share of 39
Insurance company
• Total asset of Life Insurance 41
companies
• Total premium generated 41
• The future premium income 41
Generated will be
• Untimely death benefit to policy 44
holder in the past
• Age vise classification 73
• Gender wise classification 74
• Income wise classification 75
• No of member having insurance 76

3
 • How many person having insurance 77
in family
• Different policy bought by 78
customers
• Fully insured and under insured 79
persons
• Market share of different life 80
insurance policy

List of Illustrations/Diagrams

Name of Illustrations/Diagrams Page

No
• Kotak : Area of Business 57
• Age vise classification 73
• Gender wise classification 74
• Income wise classification 75
• No of member having insurance 76
• How many person having insurance in 77
family
• Different policy bought by customers 78
• Fully insured and under insured persons 79
• Market share of different life insurance 80

4
 Chapter 1:

Introduction

 Objective

 The Insurance Regulatory and

Development Authority (IRDA)

Objective:

The main of the present study of is accomplish the following

objective.
 Proper understanding and analysis of life insurance
industry.

5
 To know about brand awareness of Kotak Life
Insurance and customer’s preference about Kotak Life
Insurance.
 Conduct market survey on a sample selected from the
entire population and derived opinion on that research.
 According the market survey come know about how
much potential of insurance market in our city.
 And base on analysis of the result thus obtained make a
report on that research.
 Training aims at recruiting maximum number of Life
Advisors and to Sell the maximum policies for the
company and bring the business for the company which
ever is going at the particular point of time.
 Along with it I will be gaining the thorough knowledge
of insurance sector. This will give me in more
confidence in marketing products given to me.
 As the Kotak Life Insurance well reputed company in
India it’s great chance for me to observed different
products launch by other competitor companies like
ICICI prudential, Bajaj alliance ,LIC, Max New York
life etc. In all, it is to understand the overall working of
the Life insurance sector.
 The objective behind the project is as follows:

6
  To find the right candidate.
 To about their family background, occupation, social
relation, Qualification, Age.
 Finalize candidates for the IRDA training

The Insurance Regulatory and

Development Authority (IRDA)

The Insurance Act, 1938 had provided for setting up of the

Controller of Insurance to act as a strong and powerful supervisory
and regulatory authority for insurance. Post nationalization, the
role of Controller of Insurance diminished considerably in
significance since the Government owned the insurance
companies.

But the scenario changed with the private and foreign companies
foraying in to the insurance sector. This necessitated the need for a
strong, independent and autonomous Insurance Regulatory
Authority was felt. As the enacting of legislation would have taken
time, the then Government constituted through a Government

7
resolution an Interim Insurance Regulatory Authority pending the
enactment of a comprehensive legislation.

The Insurance Regulatory and Development Authority Act, 1999 is

an act to provide for the establishment of an Authority to protect
the interests of holders of insurance policies, to regulate, promote
and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the
Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and
the General insurance Business (Nationalization) Act, 1972 to end
the monopoly of the Life Insurance Corporation of India (for life
insurance business) and General Insurance Corporation and its
subsidiaries (for general insurance business).

The act extends to the whole of India and will come into force on
such date as the Central Government may, by notification in the
Official Gazette specify. Different dates may be appointed for
different provisions of this Act.

The Act has defined certain terms; some of the most important
ones are as follows

appointed day means the date on which the Authority is established

8
under the act. Authority means the established under this Act.
Interim Insurance Regulatory Authority means the Insurance
Regulatory Authority set up by the Central Government through
Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.

Words and expressions used and not defined in this Act but
defined in the Insurance Act, 1938 or the Life Insurance
Corporation Act, 1956 or the General Insurance Business
(Nationalization) Act, 1972 shall have the meanings respectively
assigned to them in those Acts

A new definition of "Indian Insurance Company" has been

inserted. "Indian insurance company" means any insurer being a
company (a) which is formed and registered under the Companies
Act, 1956
(b) in which the aggregate holdings of equity shares by a foreign
company, either by itself or through its subsidiary companies or its
nominees, do not exceed twenty-six per cent. Paid up capital in
such Indian insurance company (c) whose sole purpose is to carry
on life insurance business, general insurance business or re-
insurance business.

9
 CHAPTER-2

RESEARCH METODOLOGY

Research always starts with a question or a problem. Its purpose is

to question through the application of the scientific method. It is a
systematic and intensive study directed towards a more complete
knowledge of the subject studied. Marketing research is the
function which links the consumer, customer and public to the
marketer through information- information used to identify and
define marketing opportunities and problems generate, refine, and
evaluate marketing actions, monitor marketing actions, monitor
marketing performance and improve understanding of market as a
process.

Marketing research specifies the information required to address

these issues, designs, and the method for collecting information,
manage and implemented the data collection process, analyses the
results and communicate the findings and their implication.

10
I have prepared our project as descriptive type, as the objective of
the study demands the answers of the question related to find the
potentiality of life insurance in Surat: How much potential is there
in Surat?

The Marketing Research Process

As marketing research is a systemic and formalized process, it
follows a certain sequence of research action. The marketing
process has the following steps:
 Formulating the problems
 Developing objectives of the research
 Designing an effective research plan
 Data collection techniques
 Evaluating the data and preparing a research report

There are two types of data collection method use in my project

report.
– Primary data
– Secondary data.

11
For my project, I decided on primary data collection method for
observing working of company and approaching customers
directly in the field, tele-calling, cold calling, campaigning and
through references to know their interest in business with company
in my project and also make questionnaire for creating database of
business class people is Surat city for company.

I decided on Secondary data collection method was used by

referring to various websites, books, magazines, journals and daily
newspapers for collecting information regarding project under
study.

DATA COLLECTION

After the research methodology, research problem in

marketing has been identified and selected; the next step is
together the requisite data. There are two types of data collection
method – primary data and secondary data.

In our live project, we decided primary data collection

method because our study nature does not permit to apply

12
observational method. In survey approach we had selected a
questionnaire method for taking a customer view because it is
feasible from the point of view of our subject & survey purpose.
We conducted 200 sample of survey in our project.

Chapter: 3

 Company profile

 Mission

COMPANY PROFILE

Stock broking businesses in the UK. Kotak Group was established

in 1985.Kotak Mahindra Bank is the parent company of the group.
Kotak Group entered into the life insurance business in 2001.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture
between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc.
(24%) Old Mutual plc.Is a world-Class international financial
services company. It was established in South Africa before 160
years.

13
OLD MUTUAL is the largest financial services business in South
Africa, through its life insurance, asset management, banking and
general insurance operations. The company serves 4 million life
insurance policyholders and employs over 13 000 South Africans
in its local operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity
businesses offering an array of specialist asset management skills
through its 23 asset management businesses. The company’s US
Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth

management, through Gerrard as one of the leading private client

The OLD MUTUAL Group has the ability to cater for a variety of
consumer segments and offers a comprehensive and innovative
range of products for all income groups.

Mission:

14
“At Kotak Life Insurance, we aim to help customers take important
financial decisions at every stage in life by offering them a wide
range Of innovative life insurance products, to make them
financially independent.”

Potential of the Insurance

sector:

Total population 1.1 billion

Total population of 253 millions

Insurable class
Total population 88.5 millions
insured

Source: Financial Express-Delhi.

Market share:

2001-02 2002-03 2003-04 2004-05 2005-

06
LIC
98% 94% 87% 78% 72%
Private
Players 2% 6% 13% 22% 28%

Industry growth rate at 36% (2004-05) with premium income

15
 From new business.
Source: Financial Express-
Delhi

Company Indian Foreign Market

Promoter/ Insurance share
Partner based on
premium Market
Aviva life Dabur Aviva, UK 1.12
Bajaj Bajaj Auto Allianz, 6.12 Share
Allianz Germany
Birla sun Aditya Sun Life, 1.84
life Birla Canada
group
HDFC HDFC Standard 2.96
Standard Life, UK
ICICI ICICI Prudential, 7.11
Prudential Bank UK
ING Vysya ING 0.63
Vysya Bank Insurance,
Netherlands
Kotak Kotak Old Mutual 0.71
Mahindra, Mahindra South
Old Bank Africa
Mutual
Max New Max India New York 1.32
York Life, US
MetLife Jammu & MetLife, 0.40
Kashmir US
Bank
Sahara Sahara None 0.80
Life India
Insurance
SBI Life SBI Cardiff, 1.52
France 16
Tata AIG Tata AIG, US 1.78
Group
 CONTRIBUTION TO INDIAN
ECONOMY
(i) Life Insurance is the only sector which garners

long term savings

(ii) Spread of financial services in rural areas and

amongst socially less privileged

(iii) Long term funds for infrastructure

(iv) Strong positive correlation between

development of capital markets and insurance/

pension sector

(v) Employment generation

17
 Spread of financial services in
rural areas and amongst socially
underprivileged
• IRDA Regulations provide certain minimum business to be done

(i) In rural areas

(ii) In the socially weaker sections

• Life Insurance offices are spread over nearly

1400 centers.

• Presence of representative in every tensile –

deeper penetration in rural areas.

• Insurance agents numbering over 6.24 lakhs

in rural areas.

• Policies sold in rural areas (2004-05) - No. of

policies - 55 lakhs Sum assured 46,000 cr

18
• Social security - No. of lives covered 2003-04

17.4 lakhs 2004-05 42.1 lakhs

Chapter: 4

Data analysis and interpretations

19
 Age Wise Clasification
45 44
40

35

30
No. of Customers

25
22 23
20

15
11
10

0
18-25 26-30 31-45 46 & Above
Years

20
Gender No of Member
MALE 66
FEMALE 34

AGE No Of Members
18-25 11
26-30 22
31-45 44
46 to above 23

21
 Gender wise clasification
70
66
60

50
No. of Customers

40
34
30

20

10

0
MALE FEMALE
Years

22
 Members

50
48
45

40 40
35
No. of Customers

30

25

20

15
12
10

0
2 to 4 5 to 8 8 to aboce
No of members

Family member No of Member

2-4 40
5-8 48
8 to above 12

23
 Income No of Members
40K -70K 17
70K-1 Lake 41
1 Lake to 3 Lakes 28
3 Lacks 14

24
 Income Wise Classification

45

40
41
35

30
28
No. of Customers

25

20
17
15 14
10

0
40 k to 70k 70k to 1 Lake 1 Lake to 3 3 Lake to
Lakes Above
Income (P.A)

Insurable Member Uninsurable member

42% 58%

25
 NO OF MEMBER HAVING INSURANCE

NO
58%
YES
42%

Only 42%people having insurance in Raipur so it is potential for

insurance company to capture to all that market.

26
 40 40

35

30 28
No. of Customers

25
21
20 18
15
11
10

0
Self Spouse Children Parents All

Among that 42% people who having insurance, they have

insurance 40% for self 28%for spouse 21% for children and 18%
for their parents and 11% for all family member.

Having insurance No of members

self 40
spouse 28
children 21
parents 18
all 11

Different policy bought by customers

27
 35
LIC
30
ICICI
25

No. of Customers
Birla
Sunlife
20
SBI

15
HDFC

10
Bajaj
Alliance
5
TATA
AIG
0 Kotak
Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link
Plan Mahindr
a
Different Plans ING
Vyasya

Max
Newyork

Met Life

28
Insurance Plan Market Share
Term Plan 39%
Money back Plan 14%
Endowment Plan 15%
Child Plan 8%
Unit link Plan 24%

Market share of diffrent Insurance plan

Unitlink plan
24% Child Plan
8%

Endownment Plan
15%

Term Plan
39% Moneyback Plan
14%

29
 Chapter:5

 Findings and suggestions

 Limitations

Finding and Suggestion

30
 • According the survey only 42% people are insured in
Surat so reaming other part is potential for insurance
sector.
• Among that 42% people who having insurance, they
have insurance 40% for self 28%for spouse 21% for
children and 18% for their parents and 11% for all
family member, also its very help full for insurance
sector so they should take necessary step for capture
this potential.

• Only 42% people having insurance in Surat in that 42%

there are 82 % people are under insured and other 18%
people are fully insured according to their income so
that is also plus point for insurance sector to capture the
market

Limitations:

Some of the difficulties and limitations faced by me

during my training are as follows:

31
 Lack of awareness among the people – This is the
biggest limitation found in this sector. Most of the people are
not aware about the importance and the necessity of the
insurance in their life. They are not aware how useful life
insurance can be for their family members if something
happens to them.

 Perception of the people towards Insurance sector

– People still consider insurance just as a Tax saving device. So
today also there is always a rush to buy an Insurance Policy only
at the end of the financial year like January, February and March
making the other 9 months dry for this business.

 Insurance does not give good returns – Still today

people think that Insurance does not give good returns. They are
not aware of the modern Unit Linked Insurance Plans which are
offered by most of the Private sector players. They are still under
the perception that if they take Insurance they will get only 5-6%
returns which is not true nowadays. Nowadays most of the
modern Unit Linked Insurance Plans gives returns which are
many times more than that of bank Fixed deposits, National
saving certificate, Post office deposits and Public provident fund.

 Lack of awareness about the earning opportunity

in the Insurance sector – People still today are not aware
about the earning opportunity that the Insurance sector gives.

32
 After the privatization of the insurance sector many private giants
have entered the insurance sector. These private companies in
order to beat the competition and to increase their Insurance
Advisors to increase their reach to the customers are giving very
high commission rates but people are not aware of that.

 Increased competition – Today the competition in the

Insurance sector has became very stiff. Currently there are 14
Life Insurance companies working in India including the LIC
(life insurance Corporation of India). Today each and every
company is trying to increase their Insurance Advisors so that
they can increase their reach in the market. This situation has
created a scenario in which to recruit Life insurance Advisors and
to sell life Insurance Policy has became very very difficult.

Conclusion

 All the insurance company must advertise more in the market

because not all people know more about life Insurance
policy.

 Most number of people wants Guaranteed Returns so

company must focus on this for the customer investment.

33
 Make insurance policy which can buy any one so we can
insured them through this type of life insurance policy.

Annexure

Questionnaire

1) Name ______________________________

2) Age

1) 18-25 2)26 to 30 3) 31 to 45 4) 46 to above

34
 3) Gender 1) male ____) female____

4) Occupation:

1) Service 2) Business 3) Professional 4 ) other

5) Family member

1) 2 to 4 2) 5 to 8 3) 8 to above

6) Do u have a life insurance?

Yes_______ No_______

If yes,
Which is it?
Company’s Term Endow Whole Money Retire Child Unit
name plan ment life back ment Plan link
Plan
LIC
ICICI
Prudential
Birla
Sunlife
SBI Life
HDFC
Standard
Life
Bajaj
Alliance
TATA AIG
Kotak
Mahindra
ING Vysya

35
Max
Newyork
Met Life
Reliance
Shri Ram
Sahara

7) What is your annual income?

1) 40 K to 70 K 2) 70 K to 1 lake 3) 1 lake to 3 lakes 4) 3 lakes to
above

36
37