A

PROJECT REPORT ON
A study on Customer Perception and awareness regarding health and Life Insurance

UNDER THE GUIDANCE OF Mr.Biswadeep Chakraborty. Area Sales Head- Alternate Channel Peerless Developers LTD (India) (EXTERNAL GUIDE)

Institutional Guide Ms. Lurai Rongmei Asst. prof. DBA-SMS Assam University , Silchar

SUBMITTED BY

Mahbubur Rahman Laskar MBA 3rd semester Assam University,silchar

CONTENTS
Certificate

page no:03

Declaration Preface Acknowledgement Chapter-I: Introduction: 1.1 Introduction 1.2 Objective of study Chapter-2: Overview of insurance company 2.1 Insurance company and overview 2.2 An aggregate view of insurance company 2.3 Life insurance in India 2.4 Health insurance overview Chapter-3: Company Profile Chapter 4: Research Methodology Chapter-5: Data Analysis and Interpretation Chapter-6: Conclusion 3.1 Limitation 3.2 Suggestion & recommendation Appendix Reference Bibliography

04 05 06 07-13

14-20

21-26 27-28 29-44 45-46 47 48 49-51 52 53

CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the Project entitled A study on Customer Perception and awareness regarding health and Life Insurance submitted by Mr. Mahbubur Rahman Laskar , to the Management Institute of Assam University, Silchar,India, for the award of the degree of Master of Business Administration in Assam University of Business Administration , is a bona fide work carried out by him under my supervision and guidance. I am satisfied with the contents of his Project Report and I do mention that he has undertaken the dissertation work systematically, meticulously and having thorough grasped over the subject concerned. In my opinion, the project report has fulfilled all the requirements as per the Course Curriculum. To the best of my knowledge, the results embodied in this report have not been submitted to any other University or Institute for award of any degree or diploma.

Date: Place: Guwahati , Assam.

(PROJECT GUIDE)

Mr.Biswadeep Chakraborty

DECLERATION

I here by declare that this project titled A study on customer perception and awareness regarding health and life insurance is submitted for the partial fulfillment of the course MBA (Masters of Business Administration). This is an original piece of work done by me under the guidance of Mr.Biswadeep Chakraborty (Area Sales Head , PGFI of NERO , Guwahati) and it have not been submitted for the award of any other degree elsewhere in full or part.

DATE: PLACE:Guwahati Laskar

Mahbubur Rahman
DBA-SMS, ASSAM UNIVERSITY,Silchar

Preface
The MBA programme is well structured and integrated course of business studies. The main objective of practical training at MBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The MBA programme provides student with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field.

Training is an integral part of MBA and each and every student has to undergo the training for 45 days in a company and then prepare a project report on the same after the completion of training.

During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life.

In todays globalized world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that Experience is best teacher.

Mahbubur Rahman Laskar

Acknowledgement

I express my sincere gratitude to the management of Peerless General Finance and Investment Company Pvt. Ltd, for providing me material to prepare my project on their esteem organization. I would like to thanks Mr. Himadri Chaterjee ( Regional sales head ) and Mr.Biswadeep Chakrabarty (Area Sales Head alternate channel ) who has been a constant source of inspiration for his extensive guidance, cooperation and support.

Finally, I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report. The Project was completed successfully with the valuable cooperation of companys personnel.

Mahbubur Rahman Laskar

Chapter-I: Introduction

Introduction
Project - Any thing which needs to be executed in more than one step is a project. Project - A piece of planned work or an activity which is finished over a period of time and
intended to achieve a particular aim .A study of a particular subject done over a period of time, especially by students

In all good projects, the leadership and participants take time to reflect upon successes and failures. In particular, it is important to determine whether the defined project was successfully completed - both in terms of the most recent definition and against the original intentions. There are several reasons for this: to determine whether the work is really finished or whether further action is required
8

 to consider whether further initiatives should be defined to build upon the success of the project to show that benefit has been achieved and that the project will generate value so that the success can be communicated both within the organisation and to external parties such as customers, investors, suppliers etc for the organisation to learn lessons about this type of business initiative for the individuals to learn lessons about their strengths and weaknesses, and to identify successful approaches to their work. Purpose objectives and Is it clear what is the purpose of the project? Are we able to define clear, measurable objectives that identify what is to be achieved? Are the objectives reasonable, achievable and measurable? Do the sponsors and other stakeholders all understand and agree? Scope What is the scope of the project, for example: Is the project addressing the overall business change (ie people, process and technology elements), or just the technology? Which locations, divisions, departments? Will there be organisational change - restructuring, revised responsibilities, new staff capability requirements, retraining, recruiting, redundancy, etc? Is that organisational change to be seen as a driver for the project or just a consequence to deal with? Which business processes? Do we wish to change those processes or try to leave them the same? Is that process change to be seen as a driver for the project or just a consequence to deal with?

Which existing processes and systems will be replaced? Which existing processes and systems will be retained? Which existing processes and systems will need to interact with the new ones? Is the technology change to be seen as a driver for the project or just a consequence to deal with?

Should the results be delivered as a single "big bang", or could there be stages or phases of delivery? Is it clear what other projects or initiatives are in planned or in progress that could impact upon this project? Will they compete for resources? Will they make our business solution a moving target? Will we require interim solutions? Timescales In what timescale should the benefit be delivered?
9

 Are there specific external requirements for timing, eg new legislation, contracts with third parties? When do we expect to be able to commence? What is the initial expectation for the duration of the project (and any intermediate stages or phases)? Over what period of time should benefit be assessed for the purposes of prioritisation and the benefit case? Control How will the project be managed and controlled? Who has ultimate responsibility, accountability and authority for the project? Who handles day-to-day Project Management? Which people form the executive control body (eg steering committee) such that they can deliver the full stewardship, decision making, resourcing, and funding that is required for or on behalf of the sponsors? How do these participants expect to participate, eg frequency of meetings, format, formality, reports, minutes etc? Prioritisation, Do we definitely agree to start this project? sanity check and Is it truly achievable? Can we get the people, resources, funding, permission to and technology that it will take? proceed Are the main risks in doing this understood and acceptable? Is it a good use of the organisation's limited resources when compared to other potential investments? Is there an absolute commitment from the organisation's leadership that this project should be initiated and that it will get the degree of support it needs to succeed?

Customer service is an integral part of every insurance organization. It is necessary to identify the key success factors in every insurance industry, in terms of customer satisfaction so as to survive in intense competition and increase the market share. The study is based on 75 insurancer from major cities of India that is guwahati . This study emphasizes the role of technology to improve quality and hence customer satisfaction. The study intends to promote a better theoretical & practical understanding and recognition of the complexities to service quality and its measurement with respect to different insurance organisation.

This section includes introduction to the financial service industry and also establish the need of customer service and perception in financial services in insurance service in particular.
10

Companies involved in the insurance industry offer a wide variety of products and supplementary services that consumers in need of insurance coverage could readily infer as being insurance related. The financial service industry has not been immune from, or ignored, the quality revolution. Insurance in India has been spurred by product innovation, streamlining of sales and distribution channels along with targeted advertising and marketing campaigns. With increased globalization and presence of a large number of players in the market place, the very definition of customer relationship and satisfaction is in danger of being proved incomplete. Firms use technology as a key tool to enhance the information flow within their various business units, helping their employees better understand the ever changing and increasing needs and wants of their customers. From a company value perspective, fulfilling customer needs are a key source of income to an organization and achieving complete customer satisfaction is the only key for the company to succeed. Service Quality Gronroos (2001) offer a comprehensive definition of services as an activity or series of activities of a more or less intangible nature than normal, but not necessarily, take place in the interaction between the customer and service employee and/or physical resources or goods and/or system of service provider which are provided as solution to customers problems. Measuring Service Quality Unlike the quality of tangible goods, such as computers, the intangible nature of services makes their quality difficult to measure. Service cannot be subjected to objective quality control tests before it is provided to the general marketplace; it is only with experience that we know how consumers perceive the quality of the services they receive. Customer service has become a distinct component of both product and service sectors and with the developments in information technology many businesses find demanding and knowledgeable customers. The worldwide trend toward service quality was initiated in the 1880s when businesses realized that a quality product, in itself, is not guaranteed to maintain competitive advantage. Many researchers recognize that service quality can bring an organization a lasting competitive advantage . Quality of services can be the difference between success and failure in both service and manufacturing firms. Service quality, customer satisfaction and customer value have become the main concern of both (International Conference on Technology and Business Management March 28-30, 20111012) manufacturing and service organizations in the increasingly intensified competition for customers in today's customer-centered era. As a result, many organizations are paying increasing attention to improve service quality. In some manufacturing industries "service quality" is considered a more important order winner than "product quality". Service quality improvements will lead to customer satisfaction and cost management that result in improved profits . Contemporary service sector firms are compelled by their nature to provide excellent service in order to prosper in increasingly competitive domestic and global marketplaces . As service firms find themselves in an increasingly competitive and complex business environment, they are inevitably driven to examine their service delivery processes critically. The focus of such internal analysis is ultimately about customer satisfaction, and how bottom-line results can be actualized through delivering quality services to customers via flawless interface platforms. This is not only the case in the private sector, but it also is

11

increasingly so in the public sector. Public sector firms are trying to make administration more efficient and more citizen-oriented.

Research Methodology
Need for Research
The insurance industry affects money, capital markets and the real sectors in an economy, making insurance facility necessary to ensure the completeness of a market. It is an industry with strategic importance for any country as it contributes to the financial sector (and hence the GDP) as well as confers social benefits on the society. At the micro-level, an insurance policy protects the buyer against financial loss arising from a specified set of risks at some cost. It thus reduces anxiety and promotes financial stability by providing a much needed social security net, especially in times of crumbling family ties and nuclear households in developing countries. The role of insurance is undergoing a phenomenal change today as is evident from the service bouquet and the product advertisements. The emphasis lies on insuring oneself and one's close family members for self-reliance more-so because nuclear families are the emerging trend in India. To meet the varying needs of various individuals, the insurance players have a vast foray of products and services in their bouquet. Besides this, almost all companies offer the flexibility to customers to choose the most suitable product for themselves by combining features of a number of products and services together. Thus insurance companies have to customize the services to improve the quality of service to suit the customer as per their needs. It can be deducted that service quality management is playing a very significant role in the development of the economy in India . There is a wide scope for research on the perception of service quality of insurance companies operating in India. The present study is pioneering work, because this is being made to study the service quality assessment of insurance companies operating in guwahati . The review of literature gives an overall view of the researches conducted at national level to facilitate identification and understanding the areas covered as far for the purpose of the research. It also paves the way for future research. Empirical studies have not focused much on the service quality perception by the insurance customer in developing countries like India. There is no available literature on service quality perception of insurance Company by customers in guwahati . It is in this study the Service Quality Perception and Customer Satisfaction in health and life Insurance Companies in India with special reference to state of Assam.

Reason for Investigating Service Quality in Life Insurance Industry

The insurance industry forms an integral part of the Indian financial market, with insurance companies being significant institutional investors. In recent decades, the insurance sector, like other financial services, has grown in economic importance. This growth can be attributed to a number of factors including rising income and demand for insurance, rising insurance sector employment, and increasing financial intermediary services for policy holders. A sound national insurance market is an essential characteristic of economic growth. This is not surprising as the insurance industry forms a major component of an economy by virtue of the amount of premiums it collects, the scale of its investment, and, more fundamentally, the essential
12

social and economic role it plays by covering personal and business risks. By encouraging these factors that promote insurance demand and aid financial development, policymakers possess a strong tool to stimulate economic growth. Research Technique Used: Marketing Research, which has to be, used systematic designing collection, analyzing and reporting of data finding relevant to specific marketing situation facing the company. The following instruments was used in analyzing the data collected from primary and secondary methods 1. Percentage analysis, waited average 2. Pie diagrams and charts The Actual collection data was done using the following procedures: Primary Data Questionnaire and Interviews and observation method. Secondary Data Records, Trade Journals and Websites All Primary Data used for analysis were collected from Guwahati.(Assam)

Objective of the Study

The main objective of this study is to carry on brief study on CUSTOMER PERCEPTION AND AWARENESS TOWARDS HEALTH AND LIFE INSURANCE through this I am able to get the different Insurance Policies and their products.

Other objectives of this project are as follows:

To understand the preference and perception of consumer. To examine the variable influencing the consumer buying behavior of insurance product. To study the market potential for these products offered by various insurance companies. To identify the position of peerless in consumer needs. To understand the purchase behavior towards insurance products. To evaluate the impact of advertisement of potential buyers. To study the varied reasons for purchasing insurance product by customers. To offer suggestions based upon findings.

Importance
Insurance industry has been undergoing a great transformation during the last decade.
13

There is a great focus with in the insurance industry to consolidate to provide better Customer service in order to help these insurance companies in achieving their objectives. These objectives of this study when translated into action items provide a tremendous financial and market opportunities.

14

Chapter-2: Overview of Insurance Company

15

Introduction to the Life Insurance Industry

Human have always sought security. This quest for security was and important motivating force in the earliest formation of families, clans, tribes, and other groups. Indeed, groups have been the primary source both emotional and physical security since the beginning of humankind. They ensured a less volatile source of life necessities then that which isolated humans & families could provide & help their less fortunate members in the time of crisis. Humans today continue their quest to achieve security & reduce uncertainty. We still rely on groups for financial stability. The group may be our employer, the government, or an insurance company, but concept is the same. In some ways however, we today are more vulnerable than our ancestors. The physical & economical securities formerly provided by the tribe or extended family diminished with industrialization. Our income dependent, wealth acquiring lifestyle renders us and our families more vulnerable to environmental & societal changes over which we have no control. Humans are exposed to many serious perils, such as property loss from fire or windstorm, and personnel losses from incapacity & death. All though individual cannot predict or completely prevent such occurrences, they can provide for their financial effects. Encyclopedia of finance & banking defines insurance as the elimination of or protection against risk amenable to actual calculation, voidance or reduction of losses occurring through misfortunes such as death, fire, accident, tornado, shipwreck, etc. Insurance is a contact between an insurer and the insured where by the insurer identifies the insured against loss due to specific risks such as from fire, storm and death. Insurance
16

contracts require an agreement, considerations, capacity, legality, compliance with the statute of frauds, and delivery. Insurance is an integral part of most enterprises, risk management program. Insurance does not prevent losses, it substitutes a small certain loss (premium) for a possible or contingent large loss. The insured is indemnified for the amount of loss, for the insured amount, or for the face of his policy, in return for payment of periodic premiums. The principal kinds of insurance are the following. 1. Life Term, ordinary, endowment, limited payment, group industrial and annuities, with a variety of combinations of the first four basic forms. 2. Fire & Marine - Fire, ocean marine, motor vehicle, inland navigation and transportation, tornado and windstorm, sprinkler leakage, earthquake, riot and civil, commotion, explosion, rain, hale, flood, aircraft, etc. 3. Causality and Surety Automobile liability, liability other than automobile workers compensation fidelity and surety, burglary and theft, automobile property damage, accident in health, steam boiler, machinery, plate glass, etc. All mutual & legal reserve life insurance companies provides for a participation in dividends by all policyholders. In this way, the cost of insurance to the insured is reduced.

Insurance History:
Insurance Business:
Insurance business is divided into four classes: 1. Life Insurance. 2. Fire Insurance 3. Marine Insurance 4. Miscellaneous Insurance. History and present status of insurance market in India

17

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberal and zed market again. Tracing the developments in Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two countries. Brief history of the insurance sector I918 Oriental Life Insurance Company was established. 1912 The Indian life assurance companies act enacted as the first statue to regulate the life insurance business. 1928 The Indian insurance companies act enacted to enable the government to collect statistcal information about both life and non life insurance businesses. 1938 Earlier legislation consol dated and amended to by the insurance act with the objective of protecting the interest of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government were nationalized. Insurance sector reforms In 1993 Malhotra committee, headed by former finance secretary and RBI governor R N Malhotra, was formed to evaluate the Indian insurance industry and recommended its future direct on. The Malhotra committee was set up with the objective of complimenting the reforms initiated in the financial sector. In 1994 committee submitted the report and some of the recommendation included. 1) Structure a) Government stake in the insurance companies to brought down 50%. b) Government should takeover the wordings of GIC and its subsidiaries, so that these subsidiaries can act as independent corporations. c) All the insurance companies should be given greater freedom to operate 2) Competitions a) Private companies with a minimum paid up capital of Rs. 1 billion should be allowed to enter the industry no company should deal in both life and general insurance through a single entity.
18

b) Foreign companies may be allowed to enter the industries collaboration with the domestic companies c) Postal life insurance should be allowed to operate in the rural market. d) Only one state level life insurance company should be allowed to operate in each state 3) Regulatory body a) The insurance Act should be changed b) An insurance regulatory body should be set up. Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law. LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.

The Insurance Regulatory Authority (IRDA)

and

Development

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999.The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

Insurance Products
Life Insurance:

19

Popular Products: Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products.

General Insurance:
Background The general insurance industry in India was nationalised 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 nationalisation, 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. 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. From 799 offices in 1973, the network grew to 4,208 offices as on 31 March 1998. The Indian general insurance industry was completely de-tariffed (with the exception of Motor Third Party Premiums) around four years back, from January 1, 2007; initially, price discounts were allowed within regulatory limits, but later this provision was removed. This note seeks to capture the impact of de-tariffing on the various public and private sector players on their growth, profitability and pricing. For the purpose of segmental claims and overall profitability trend analysis we have considered the top three public sector entities and the top two private sector entities (which together cover 62% of the market) because of data constraints and to maintain consistency.

Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory.

Health Portfolio
The Health portfolio, which accounts for 20.8% of the general insurance market (as of FY2010), has maintained its high growth trajectory over the last few years, led by positive demographics, rising income levels, and increasing health awareness. The Health portfolio is the fastest growing portfolio currently in the Indian insurance industry with a CAGR in excess of 30% over the last six years. The

20

share of the Health portfolio has almost doubled over the last five years from 10.9% in FY2006 to 20.8% in FY2010. The growth during the last few years was aided by the positive pricing bias for Group Health policies as the business was becoming unviable for most insurers. Prior to the recent de-tariffing, Group Health premiums used to be cross-subsidised with the profitable and tariffed lines of Fire and Engineering business and used to be loss-making. However, as de-tariffing led to a reduction in Fire and Engineering premiums, the Group Health premiums failed to keep pace with the same. Almost all players in the industry resorted to price increases, although independent pricing for Group Health policies remains a key concern area for all players. Moreover, new entrants use Group Health to make an entry into large corporate entities and solicit the larger business of Fire and Engineering insurance. As a result, Group Health continues to be loss making for most insurers. Further, concerns such as moral hazard plague the overall Health portfolio. The claims ratio for the Health portfolio for public sector players has been in excess of 100% and has been on an increasing trend over the last three years. The private sector players are in a relatively better position because of their strong systems, flexibility in managing operations, product innovation and efficient claims monitoring and settlement procedures. The Health portfolio has been one of the largest contributors to underwriting losses for public sector players both because of the factors discussed and legacy issues as well.

21

The public sector players, in the recent past, have undertaken several measures to bring down the loss ratios of their Health portfolio by screening hospitals for cashless service and seeking to form in house Third Party Administrators (TPAs) to plug various leakages. Overall, the Health portfolio for the industry is expected to report a CAGR in excess of 25-30% over the next five years, with Group Health pricing likely to improve in the near to medium term. The anticipated growth would be aided by mass market, Government-sponsored schemes like Rashtriya Swasthya Bima Yojana (RSBY), which proposes to provide healthcare access to families below the poverty line (BPL). However, claims trend and pricing sufficiency would need to be monitored over a longer term horizon for these schemes. During the first half (H1) of FY2011, the Health portfolio of the industry grew by 41.9%. The key critical success factor to build a strong Health franchise would be to build business model that is scalable, makes efficient use of technology, incorporates innovative product designs, and lays down strong claims and servicing standards.

ADVANTAGES OF LIFE INSURANCE

Protection against risk of untimely death

Life insurance is a product, which offers protection against the risk of death the full sum assured is made available under a life assurance policy, whereas under other savings schemes, the total accumulated savings alone will be available.

Protection during old age

Life insurance can also be used as a means of saving for ones future. There are a number of life insurance policies, which in addition to life cover also provide the means of investing ones income. The sum as per the policy will be received only after a period of time. This amount thus provides for the old age.

Forced savings
Payment of life insurance premiums is compulsory and becomes a habit. Savings in other scheme can be easily withdrawn and may be used for less worthy purpose. Termination of a

22

life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. One is thus encouraged to save and keep ones policy alive.

Educational requirements and charity

The object of insurance may be to serve as a security to educational funds in respect of loans advanced for educational purpose or to provide donations to charitable institutions like hospital and school.

Nomination and assignment

The life insured can name the person or persons to whom the policy money would be payable in the event of his death .the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. The beneficiaries are fully protected from creditors expect to the extent of any interest in the policy retained by the insured.

Need For Insurance:

Making the person feel SAFE other expression of the need for safety occur when individuals are confronted with real emergencies E.g., accidents, war, crime, natural disasters like waves, floods, earthquakes etc. Once Physiological needs are met, another set of motives, safety or security needs, become motivates. The primary motivating force here is to ensure a reasonable degree of continuity, order, structure and predictability in once environment. Risk and uncertainty are part of life great adventures accident illness, thefts, natural disaster they are all built into the working of the universe, waiting to happen. Insurance then is mans answer to the vagaries of life. If you cannot beat the manmade and natural calamities, wealth, at least be prepared for them and aftermath. Insurance is contact between two parties one is insurer (insurance company) and the insured (the person or the entity seeking the coverage). Where the insurer agrees to pay the insured for the financial loses arising out of any unforeseen events in return for a regular payment of the premium. These unforeseen events are determined as risk and that is why insurance is called is the risk cover. Hence the insurance is essential the means to financially compensate for loses that life throws at people corporate and otherwise.

India at a glance
Population : 1.2Billon
23

Economy : 5th Largest in the world in terms of purchasing power parity (PPP) GDP Growth Rate : Over 8.6% per year on an average for the last decade. Savings Rate : Around 33% of GDP Estimated Middle Class Population : 300 Million Insured Population : 70 Million. India has an enormous middle class that can afford to by life, health and disability and pens on plan products. The low level of penetration of life insurance in India compared to other developed nations can be judged by a comparison of per-capita life premium.

Registration Of Indian Insurance Companies.

The registration of Indian insurance company involves the following contents . 1) Requisition for the registration 2) Application for registration. 3) Renewal of certificates of registration 4) Action in case default 5) Certificates to existing insurers.

24

Chapter-3: Company Profile

Team Peerless

Abstract
Peerless General Finance and Investment Limited, a 76 year old Company was registered under Residuary Non-Banking Finance Company Act. This case study attempts to provide insights of the savings products initiated by Peerless to address the requirement of its customers. While the case critically analyses the attributes of products being offered, it also touches upon the support and 25

operational systems. The transition from a small Company with a handful of accounts to one with 2.11billion accounts; from a start up capital of Rs.300 to Rs.31.98billion of deposit, provides plenty of insights about the Company and its organizational values. The report has made an attempt to understand the services that Peerless provides vis--vis the savings products, and reiterates the argument that access to suitable saving services helps the poor to save.
Incorporated in 1932 as "The Peerless Insurance Co Ltd", a leading indigenous insurance company, the company is now known as "The Peerless General Finance & Investment Co Ltd" Today Peerless is the market leader in the area of savings & investments and has emerged as India's largest Registered Residuary Non-banking Company (RNBC), with core competence of mobilizing savings from the grass root level. It's pan-Indian presence with countrywide network and constant endeavor to offer need-based products and superior customer services have enabled Peerless to build an excellent brand image.

COMPANY MISSION
To be a premier financial services company helping people build their security by providing them with innovative financial products and quality investment solutions through dedicated service. 1)To create livlihood solutions across the length and breadth of the country. 2) To fulfill its role as a responsible corporate citizen. 3) To provide a supportive and rewarding environment for employees.

PGFI Vision
The vision of PGFI is to emerge as the country s most trusted doors tep financial servic es prov ider in the private sector with the lowest serv icing c ost to the customers. We will accomplis h our vision through our commitment to strategic growth, quality serv ice and c reation of self employment opportunities for more people.

Unique Distinctions
The country's premier financial service provider in the private sector with over77 years of experience. Professionally managed by a host of eminent corporate leaders on the Board with Mr. D Basu as the Chairman and Mr. S K Roy as the Managing Director. A wide variety of tailor-made, co-branded, Insurance-linked financial products. Technology-based, prompt and personalized service, right at the Customers' doorsteps.

Helping people build up regular savings habit and offering assured return with total security. Set an immaculately spotless record of Maturity Payment - Over Rs.15,800 Crore already disbursed. 26

Safe and Riskless - Over 100% in Secured approved investments. Tapping the untapped areas - mopping up huge un-surfaced resources and injecting the same into the mainstream of the country's economy. Generating excellent, enormous Self-employment opportunities through Smart Rojgar Yojna, which is the source of livelihood for teeming millions across the country.

Board of Directors
Shri. S.K.Roy
Managing Director

Formerly Director of West Bengal Indus trial Development Corporation Ltd. Currently Chairman of Peerless Securities Ltd. and Peerless Hotels Ltd. and Director of Bengal Peerless Housing Development Co. Ltd. and Member of the Exec utiv e Committee of Bengal National Chamber of Commerce & Industry and the Bengal Chamber of Commerce & Industry and also on the Boards of a number of Companies of repute. Message : Our aim is to emerge as the country's larges t financial super market in the private sector, for doorstep retail distribution of not only our own products but all kinds of financial products under one umbrella.

27

Shri. Jayanta Roy

Director (Financial Products Distribution)

Formerly Group Corporate Coordinator of PGFI. Prior to this assignment, he was Vice-President of Peerless Securities Ltd. He is on the Board of Bengal Peerless Housing Development Co. Ltd., Peerless Hotels Ltd., Kaizen Leisure & Holidays Pvt. Ltd. and a number of prominent companies .

Growth and progress

28

Theoretical Framework
1. It helps the company to understand market situation for there Peerless Developers Ltd.(PDL), a wholly owned subsidiary of PGFI, insurance. recently entered into an agreement with Max New York Life 2. It also helped them to know the changes there should be made in the Insurance Company Ltd. (MNYL)- a new generation private sector there conglomerate in life insurance business in India. As per the policies for the growth. has been taken over the corporate agency of agreement, PDL 3. It also helps them to know which age group should the policies more MNYL. concentrated. In the first phase, PDL has decided the performance of the 4. It helps to know how to improve to conduct business through company. 5. It its owntoSPs in the East and the North- Eastern regions and the helps company carry out the different benchmark for subsequently, in the Northern part of the country and other places, improvement of using the infrastructure and performance, quality & services. network of its parent company, PGFI. Necessary training on the products and life insurance business has 6. It helps to know about the expectations of public. been imparted to PDL executives at the branch level.
This strategic alliance was formally announced at The Peerless Inn, Kolkata on July 5th, 2006, attended by a large number of employees from PDL, PGFI and MNYL.

Life Plans 20 year Endowment Max New York Life Platinum Protect Life Gain Plus 25. Growth Plans MaxNewYorkLifeFlexiFortune MaxNewYorkLifeShubhInvest HealthPlans LifeLineMediCashPlus LifeLineSafetyNet

Peerless distributing the following ITGI Policies

Trade Suvidha gives complete protection to business against a wide range of risks like fire and other perils like riots, strike, earthquake and other natural disasters. Burglary and other perils are covered as well. Home Suvidha gives complete protection to your home against a wide range of 29 risks and perils like riots, strike, earthquake and other natural disasters. Burglary and other perils are covered as well. Individual Medishield is a complete protection plan for the medical treatment of your entire family while at the same time ensuring that in case of any

care. It allows you to protect yourself against todays spiraling medical costs. Motor insurance provides coverage for both private car below 5 years and two wheeler below 5 years. The first one covers loss of or damage to privately owned vehicle against the risk of accident, fire, theft, floods, earthquake, riot, strike etc. The policy also gives coverage for liability arising out of death, injury to third party and/or third property damage.

Chapter 4: Research Methodology

The two wheeler insurance policy also provides coverage for loss or damage to your two wheeler like motor cycle/scooter against the risk of accident, fire, theft, floods, earthquake, riot, strike etc. including coverage for your liability arising out of death, injury to third party and/or third property damage.

Research Methodology
Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through
30

observation, data collection and data analysis.

Research Design:
The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on Insurance Sector is exploratory in nature as the objective is the development of the hypothesis rather than their testing.

Types of research:
The basic plan, which guides the data collection analysis and phrase of the project, is the framework. That specifies the type of information to be collected the source of data and the data collection procedure. Marketing Research, which has to be, used systematic designing collection, analyzing and reporting of data finding relevant to specific marketing situation facing the company. Statistical Technique :The following technique would be used in analyzing the data collected from primary and secondary methods. 1 Percentage analysis, waited average 2 Pie diagrams and charts Sampling methods: Method adapted was non-probability convenience & purposive sampling. Sampling size: 100 respondents . Sampling Plan; Element: customer & sales personnel Extent: Guwahati , Assam Actual collection data: Primary data Schedule , interviews & observation methods Secondary data Records, trade journals , books , Company broacher and pamphlet & websites Technique analysis: Data collected has been classified, tabulated and represented graphically for effective solution.
31

Chapter-5: Data Analysis and Interpretation

32

Data analysis on General Insurance; 1) Are you currently insured ?

Particulars Yes No Total No. of respondents 87 13 100 % 87% 13% 100%

ANALYSIS: From the survey it was found that amongst 100 respondents.

a) 87% of the respondents are already insured. b) 13% of the respondents are not insured.

2) Do your company provide quality service to customers ? Particulars Strongly-Agree Agree Satisfactory Dis- Agree Strongly- DisAgree Total No. of respondents 33 40 13 10 4 100 % 33 40 13 10 04 100

33

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 33 % of the respondents are strongly agreed to the above statement. b) 40 % of the respondents are agree to the above statement.. c) 13 % of the respondents are satisfactory to the above statement. d) 10 % of the respondents are dis- agree to the above statement. e) 4 % of the respondents are strongly dis- agree to the above statement.

3) How do you motivated to purchase an insurance policy ? Particulars Advertisement Future Need Insurer call Low cost Other ( brand , risk-free) Total No. of respondents 21 18 47 6 8 100 % 21 18 47 06 08 100

34

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 21% of the respondents are motivated to purchase the insurance policy through advertisement. b) ) 18 % of the respondents are motivated to purchase the insurance policy for their future need . c) 47 % of the respondents are motivated to purchase the insurance policy by insurer call .

e) 6% of the respondents are motivated policy because low cost . f) 8% of the respondents are motivated policy through other reasons .

to purchase the insurance to purchase the insurance

4) what type of insurance policy you have ? Particulars General Insurance Life Insurance Total No. of respondents 83 93 100 % 82.76 93.10

ANALYSIS: From the survey it was found that amongst 100 respondents:-

35

a) 82.76% of the respondents have general insurance policy. b) 93.10 % of the respondents are having Life insurance policy.

5) Do you aware about different health insurance plan provided by various companies ?

Particulars Fully aware Some extent Unaware Cannot say Total

No. of respondents 14 60 21 05 100

% 14 60 21 05 100

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 14 % of the respondents are fully aware about the different insurance plan. b) 60% of the respondents are some extent knowledge about the different insurance plan. c ) 21% of the respondents are totally un aware about the different insurance plan.

36

b) 5% of the respondents cannot say anything about the statement.

6) which is your favourate insurance company ? Name company National insurance Oriental United india The assurance ltd. of No. respondents 17 11 11 new 10 india 7 10 10 6 8 of % 17 11 11 10

Bajaj allianz ICICI lombard Tata AIG IFFCO - TOKIO Reliance

07 10 10 06 08 04 6 100

Star health and 4 allied Bharati Axa Total 6 100

37

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 17 % of the respondents are preferred to national insurance. b) 11 % of the respondents are preferred to oriental & united Indian insurance. c) 10 % of the respondents are preferred to The new India assurance limited,ICICI Lombard & Tata-AIG. d) 7 % of the respondents are preferred to Bajaj Allianz. e) 6 % of the respondents are preferred to Bharati AXA & IFFCO-Tokio. f) 8 % of the respondents are preferred to Reliance insurance. g) 4 % of the respondents are preferred to Star Health & Allied Insurance.

7) What is your main concern while taking a health insurance policy? particulars Low cost- high coverage Many tie up hospital Need Total No. of respondents 29 50 21 100 % 29 50 21 100

ANALYSIS:
38

From the survey it was found that amongst 100 respondents:-

a) 29 % of the respondents are preferred health insurance for low cost and high coverage. b) 50 % of the respondents are preferred health insurance of different companies because the companies are mainly tie up with reputed hospital. c) 21 % of the respondents are preferred health insurance due to their own needs.

Data analysis on Life Insurance ;1) What type of insurance policy you have? Particulars Health Insurance Life Insurance Total No. of respondents 83 93 100 % 83 93 100

ANALYSIS:

39

From the survey it was found that amongst 100 respondents:-

a) 83 % of the respondents are belonging to health insurance & rests have other modes of general insurance. b) 93 % of the respondents are belonging to life insurance.

2) Which type of plan you prefer most? Policy ULIP Endowment Both Total No. of respondents 27 67 6 100 Percentage 27 67 6 100

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 27 % of the respondents are interested in Unit Linked Insurance

Policy. b) 67 % of the respondents are interested in Endowment /Traditional policy. c) 6 % of the respondents are interested in both the Policy.

40

3) Which is your favorite insurance company ? Name company LIC SBI life HDFC life Tata AIG Bajaj allianz ICICI prudential ING vyasy Max new york Reliance kotak Aviva Met life Birla sun life Total of No. respondents 64 3 5 5 4 6 3 1 3 2 1 2 1 100 of 64 03 05 05 04 06 03 01 03 02 01 02 01 100 %

ANALYSIS: From the survey it was found that amongst 100 respondents:-

41

a) 64 % of the respondents are interested in LIC. b) 3 % of the respondents are interested in SBI life, Bajaj-Allianz & INZ c) d) e) f)

Vyasa life. 5 % of the respondents are interested in HDFC life and Tata AIG. 6 % of the respondents are interested in ICICI Prudential. 1 % of the respondents are interested in Max New-York, Aviva & Birla Sun Life. 2 % of the respondents are interested in Reliance, Kotak & Met life.

4) Does this company satisfy your financial needs? (Please rate on the scale of 1 to 5 with 1 being least satisfied) Rating Highly dis-satisfied Dis-satisfied Moderate Satisfied Fully satisfied Total No. of respondents 8 16 21 32 23 87 8 16 21 32 23 100 %

ANALYSIS:
42

From the survey it was found that amongst 87 respondents:-

a) 23 % of the respondents are fully satisfied with the company b) c) d) e)

for their financial needs. 32 % of the respondents are only satisfied with the company for their financial needs. 21 % of the respondents are having moderate view with the company for their financial needs. 16% of the respondents are dis-satisfied with the company for their financial needs. 8 % of the respondents are highly dis-satisfied with the company for their financial needs.

4) Are you satisfied with the incentives (tax benefits or Bonuses) associated with your policy?

Ratings
Strongly agree Agree satisfactory Dis- Agree Highly disagree Total

No of respondents 30 32 17 14 7 87

Percentage 30 32 17 14 07 100

43

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 30% of the respondents are strongly agree to the incentives b) c) d) e)

and bonus associated with their company. 32% of the respondents are totally agree to the incentives and bonus associated with their company. 17% of the respondents are satisfied with the incentives and bonus associated with their company. 14% of the respondents are dis-agree to the incentives and bonus associated with their company. 7% of the respondents are strongly dis-agree to the incentives and bonus associated with their company.

4) What are the different age groups that have been taken the

policies?
Sl no 1 2 3 Age 18-35 35-45 45 and above Total No. of respondents 56 35 9 100 56 35 09 100 %

44

ANALYSIS: From the survey it was found that amongst 100 respondents:-

a) 56 % of the respondents are belonging to the age group between

18-35 years. b) 35 % of the respondents are belonging to the age group between 35-45 years. c) 9 % of the respondents are belonging to the age group between 45 & above.

4) what are the annual turnover for the last financial year ( yr- 2009-10) of different companies ? Name company LIC SBI life HDFC life Tata AIG Bajaj allianz ICICI prudential ING vyasy Reliance of Trun over crore ) 12 4.5 1.6 2 3.2 2 5 2.5 45 ( in % of trun over 31.63 11.86 4.2 5.3 8.43 5.3 13.18 6.6

kotak Aviva Met life Total

2.4 1.7 1.03 37.93

6.32 4.48 2.7 100

ANALYSIS: From the survey it was found that :-

a) b) c) d) e) f) g) h) i) j)

31.63% of the market share is covered by LIC. 11.86% of the market share is covered by SBI life. 4.2% of the market share is covered by HDFC Life. 5.3% of the market share is covered by Tata-AIG ICICI Prudential. 8.43% of the market share is covered by Bajaj-Allianz. 13.18% of the market share is covered by INZ-Vyasa. 6.6% of the market share is covered by Reliance. 6.32% of the market share is covered by Kotak life. 4.48% of the market share is covered by Aviva life. 2.7% of the market share is covered by Met life.

Findings :According to my survey the noteworthy points are:

1) Majority of the customer (87%) said that they are going to for a policy and some Customer (13%) is not going for a policy.

46

1) Most of the people buy life insurance and general insurance as just a tax benefit, health coverage, and security and for future needs of their life. While only a few of the respondent take it as a saving option. The reason for this is lack of knowledge of insurance benefits among the people. 3) A Majority of the respondent buy insurance products because of the need reason while rest of the respondents buy for the brand purpose. 2) A Majority of the people come to know about the policies from the Direct Selling Agents. 3) A Majority of the people are satisfied by the incentives associated with their policies. 4) Most of the respondents are satisfied by the services offered by their insurance company while some says that they are not satisfied by the services. 5) Most of the respondents want more Transparency from the side of the company. 6) In view of this company should approach the customer with better products to tap the Resources 7) Media especially print and television media have helped in spreading knowledge of the Company. 8) Majority of policyholders lie in the age group of 18-35. It can be interpreted that young People perceptions towards private sector have changed. 11) The people of age group of 45 and above are not aware of the importance of insurance. 9) Young people still prefer e-mails and telecalling rather than any other modes. 10) Reliability, Brand and stability in performance are what drive an investor to invest in a Particular company. 11) Media, especially Print and television media have helped in spreading knowledge about The company.

47

Chapter-6: Conclusion

CONCLUSION:After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance
48

Sector to give befitting competition to the private sector, we come at the conclusion that : There are very tough competition among the private insurance companies on the level of new trend of advertising to aware a major part of Customers. Correspondingly public sector insurance companies market share remains more or less stagnant due to their brand image and more security. The entry of more Pvt. players in the Insurance Sector have expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers. LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance products. IRDA, is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

49

Limitation of the study:Due to the following unavoidable and uncontrollable factors the factors,the result might not be accurate. Some of the problems faced while conducting the survey are as follows:-

This study is limited to few insurance companies and customers. to be contacted repeatedly or alternate

2 ) Respondents may have respondent may have to be identified. 3 )

Time and cost constraints were also there.

4)

The study was restricted to Guwahati city only.

5) Sample represents a population as a whole hence it need not to be true .

6) Chances of some biasness could not be eliminated. 7) A majority of respondents show lack of cooperation and are biased towards their own opinions.

50

Suggestion And Recommendation

The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses. All insurance company should conduct customer awareness programme and also should organise proper training programme for Agents in a comprehensive way . More returns should be provided on Insurance plans. As the bank provides the Insurance facility to its customers. It should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the bank as well for Insurance companies. It should come up with affordable and feasible policy for younger and retired people. Company should target various sub urban and rural insurable population by coming up with policies for farmers. It should advertise about its product in all the available media based on the consumer target group. Indian customers have always been using insurance as a tax saving tool and perceived. It as instruments for earning fixed returns in the future, rather than as a risk managing instrument.

51

APPENDIX

52

Questionnaire

Schedule A study on customer perception and awareness regarding health insurance

Dear sir /madam, I am perusing MBA from ASSAM UNIVERSITY, Silchar doing my summer internship project under PEERLESS GENERAL FINANCE AND INVESTMENT COMPANY LTD., Guwahati, as per my academic curriculum. The information gathered from this schedule will not be misused and will be exclusively for my academic purpose. So in this regard I beg your kind attention and cooperation for successful completion of my project. THANKING YOU, MahbuburRahmanLaskar

1) Do you have any insurance policy?(Please Tick mark in appropriate option) Yes No

If no, then please specify the reason. .. 2) What type of insurance policy you have?

53

Health insurance

life insurance

3) Which type of plan you prefer most? ( in case of life insurance only ) ULIP Endowment both 4) Which company you select for such insurance policy? Health insurance National insurance Oriental United india The assurance ltd. Bajaj allianz ICICI lombard Tata AIG Other new india yes Life insurance LIC SBI life HDFC life Tata AIG Yes

Bajaj Allianz ICICI prudential ING vyasy Other

5) Does your company satisfy your financial needs? Fully satisfied Satisfied Moderate Dissatisfied Strongly dissatisfied 6) Reasons for selecting the above company? Low-costHigh coverage investment security Many tied up hospital saving &

7) How you got motivated to purchasean insurance policy? Low-cost Advertisement other Future Need Insurer call

8) Do your company provide quality service to customers? Strongly Agree Disagree 54 Agree Satisfactory

9) How much youare aware about the different health insurance plan provided by different company? Fully aware cannot say 10) Do you have any suggestion regarding your insurance policy? . some extent unaware

DATE

Respondents

Signature

REFERENCES

www.hdfcslic.com www.tata-aig-life.com www.irdaindia.com www.lic.com www.money control.com www.bajajallianz.com www.icici.prulife.com Magazine 55

Insurance World

Bibliography
www.icicibank.com www.iciciprulife.com www.wikipedia.org/wiki/Main_Page www.licindia.com www.hdfcinsurance.com www.maxnewyorklife.com www. National insurance.com www. Oriental insurance .com www.reliance. Com www. Tata AIG.com Brochures provided by the all companies Kothari C R, Research and Methodology- Methods & Techniques, New Age International (P) Ltd., 2004

56