138360443 Project on Tata Aig Life Insurance

8/13/2019 138360443 Project on Tata Aig Life Insurance

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PROJECT

ON

[MARKET POTENTIAL OF TATA AIG LIFE INSURANCEIN PATHANAMTHITTA]

A report submitted in partial fulfillment of

the requirements of

THE B.COM PROGRAM

SUBMITTED TO SUBMITTED BY

DR. SANJAY SHRIVASTAVA MANESH MANOHAR CAMPUS HEAD 8NBGR024

INC GWALIOR

MR. K.S. RATHOR

FACULTY SUPERVISOR

INC GWALIOR


2/46

CERTIFICATE

This is to certify that this Management Thesis Report Submitted in partial fulfillment of the requirement

for the award of Master of Business Administration of ICFAI ni!ersity is a bona fide record of original

word done by Amit "apasiya# $nrollment no %&B'R()*

+ate, Signature of faculty

-lace, ICFAI &ational College


3/46

DECLARATION

.e hereby declare that pro/ect wor0 on final report was carried out by us under the guidance of Mr1 "1S1

Rathore 2Faculty Super!isor3 ICFAI &ational College Study pro/ect wor0 is an original one and has

not been submitted earlier either to this uni!ersity or any other institution for fulfillment of the

course1

2Amit "apasiya3

ICFAINationalCollee

ACKNOWLEDGEMENT


4/46

This pro/ect has greatly been a collaborati!e effort1 I ta0e this opportunity to than0 all who ha!e helped in

the preparation and successful completion of this pro/ect wor01

I oblige by deep sense of gratitude to the management of Tata Aig 4ife Insurance ltd -athanamthitta for

their 0ind consent gi!en to me to underta0e in the organi5ation1

I e6press my deep re!erences and sincere than0s toM!. M. S. Rat"o!e# for his reference to get the

pro/ect in Tata Aig 4ife Insurance 4td1

I e6press my deep re!erences and sincere than0s to M!. Ma"en#!a Manae!ofTata Aig 4ife Insurance

In 'walior branch for their ad!ice and super!ision of this pro/ect report and all other e6ecuti!es and the

staff in Tata Aig 4ife Insurance 4td who ha!e participated and supported in this study sparing their most

!aluable time and also for reaching to me in the most positi!e way in gi!ing me the required information1

I e6press my sincere than0s and deep sense of gratitude to faculties and to the management of INC

Collee$ G%alio! for their 0ind cooperation and encouragement1

4ast but not least I would li0e to than0 my&!ien#'for their support to complete my pro/ect report1

2AMIT "A-ASI7A3

TABLE ( CONTENT


5/46

PREFACE

E)ECUTIVE SUMMARY

CHAPTER * INTRODUCTION TO INSURANCE

818 I&TR9+CTI9&

81) F&CTI9& 9F 4IF$ I&SRA&C$

81: 4IF$ I&SRA&C$

81* R94$ 9F I&SRA&C$

81; IM-9RTA&T 9F I&SRA&C$

81< I&SRA&C$ C7C4$

CHAPTER + INTRODUCTION TO INDIAN INSURANCE INDUSTRY

)18 I&+IA& I&SRA&C$ I&+STR7

)1) A BRI$F =IST9R7 9F I&SRA&C$ S$CT9R

)1: =9. BI' I&SRA&C$ MAR"$T IS

)1* I&+IA& SC$&$RI9

CHAPTER , INTRODUCTION OF TATA AIG

:18 TATA 'R9-

:1) TATA 'R9- I& I&SRA&C$

:1: AI'

:1* T=$ >9I&T ?$&TR$

:1; AB9T T=$ TATA AI'

:1< 9R'A&I@ATI9& 9F TATA AI'

CHAPTER - INTRODUCTION TO THE RESEARCH STUDY

*18 9B>$CTI?$ 9F T=$ -R9>$CT

*1) +ATA A&A47SI&'

*1: M$T=9+949'7

*1* $STI9&AIR$ +$SI'&I&'

*1; 4IMITATI9& 9F T=$ ST+7

CHAPTER RECOMMENDATION ( BENIFIT

;18 R$C9MM$&+ATI9& T9 T=$ C9M-A&7

;1) B$&$FITS T9 T=$ C9M-A&7 A&+ S

CHAPTER / CONCLUSION ( REFRENCE


6/46

PREFACE

The liberali5ation of the Indian insurance sector has been the sub/ect of much heated debate for some years1

The policy ma0ers where in the catch )) situation wherein for one they wanted competition# de!elopment and

growth of this insurance sector which is e6tremely essential for channeling the in!estments in to the

infrastructure sector1 At the other end the policy ma0ers had the fears that the insurance premium# which are

substantial# would seep out of the country and wanted to ha!e a cautious approach of opening for foreign

participation in the sector1

As one of the rare occurrences the entire debate was put on the bac0 burner and the IR+A saw the day of the

light than0s to the maturing polity emerging consensus among factions of different political parties1 Though

some changes and some restricti!e clauses as regards to the foreign participation were included the IR+A has

opened the doors for the pri!ate entry into insurance1 .hether the insurer is old or new# pri!ate or public#

e6panding the mar0et will present multitude of challenges and opportunities1 But the 0ey issues# possible

trends# opportunities and challenges that insurance sector will ha!e still remains under the realms of the

possibilities and speculation1

.hat is the li0ely impact of opening up Indias insurance sectorD

The large scale of operations# public sector bureaucracies and cumbersome procedures hampers nationali5ed

insurers1 Therefore# potential pri!ate entrants e6pect to score in the areas of customer ser!ice# speed and

fle6ibility1 They point out that their entry will mean better products and choice for the consumer1 The critics

counter that the benefit will be slim# because new players will concentrate on affluent# urban customers as

foreign ban0s did until recently1 This seems to be a logical strategy1 StartEup costsEsuch as those of setting up a

con!entional distribution networ0Eare large and highEend niches offer better returns1 =owe!er# the middleE

mar0et segment too has great potential1 Since insurance is a !olumes game1 Therefore# pri!ate insurers would

be best ser!ed by a middleEmar0et approach# targeting customer segments that are currently untapped1


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E)ECUTIVE SUMMARY

This pro/ect has been a great learning e6perience for me at the same time it ga!e me enough scope to

implement my analytical ability1 Tata 'roup is one of the Indias largest and most respected business groups1

Tata 'roups name is synonymous with Indias industriali5ation1 Tata AI' Insurance Solutions is one of the

leading insurance companies that pro!ide both life insurance as well as general insurance1 This pioneer

company is a /oint collaboration between the American International 'roup# Inc1 2AI'3 and Tata 'roup1 They

own the company in the ratio of )


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CHAPTER *

INTRODUCTION TO INSURANCE

*.*. INTRODUCTION

HInsurance is a contract between two parties whereby one party called insurer underta0es in e6change for a

fi6ed sum called premiums# to pay the other party called insured a fi6ed amount of money on the happening of

a certain e!ent1H Insurance may be described as a social de!ice to reduce or eliminate ris0 of life and property1

nder the plan of insurance# a large number of people associate themsel!es by sharing ris0# attached to

indi!idual1 .ith the help of Insurance# large number of people e6posed to a similar ris0 ma0es contributions to

a common fund out of which the losses suffered by the unfortunate few# due to accidental e!ents# are made

good1 Insurance is a tool by which fatalities of a small number are compensated out of funds collected from

plenteous1 'radually as competition increased benefits gi!en by industry to its customers increased by leaps

and bounds1 Insurance is a basic form of ris0 management which pro!ides protection against possible loss tolife or physical assets1 -erson who see0s protection against such loss is termed as insured# and company that

promises to honor claim# in case such loss is actually incurred by insured# is termed as Insurer1 In order to get

insurance# insured is required to pay to insurance company a certain amount called premium1 -remium is

collected by insurance companies which acts as trustee to pool created through contributions made by persons

see0ing to protect themsel!es from common ris01 Any loss to the insured in case of happening of an uncertain

e!ent is paid out of this pool1 Insurance business is di!ided into four classes,

4ife Insurance

Fire

Marine

Miscellaneous Insurance1

Insurance pro!ides,

-rotection to in!estor1

Accumulation of sa!ings1

Channeling these sa!ings into sectors needing huge long term in!estment1


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*.+. FUNCTION OF INSURANCE1

P!o2i#e 3!ote4tion1 The primary function of insurance is to pro!ide protection against future ris0# accidents

and uncertainty1 Insurance cannot chec0 the happening of the ris0# but can certainly pro!ide for the losses of

ris01 Insurance is actually a protection against economic loss# by sharing the ris0 with others1

Colle4ti2e 5ea!in o& !i'61 Insurance is an instrument to share the financial loss of few among many others1

Insurance is a mean by which few losses are shared among larger number of people1 All the insured contribute

the premiums towards a fund and out of which the persons e6posed to a particular ris0 is paid1

A''e''7ent o& !i'61 Insurance determines the probable !olume of ris0 by e!aluating !arious factors that gi!e

rise to ris01 Ris0 is the basis for determining the premium rate also1

P!o2i#e 4e!taint81 Insurance is a de!ice# which helps to change from uncertainty to certainty1 Insurance is

de!ice whereby the uncertain ris0s may be made more certain1

S7all 4a3ital to 4o2e! la!e! !i'61 Insurance relie!es the businessmen from security in!estments# by paying

small amount of premium against larger ris0s and uncertainty1

Cont!i59te' to%a!#' t"e #e2elo37ent o& in#9't!ie'1 Insurance pro!ides de!elopment opportunity to those

larger industries ha!ing more ris0s in their setting up1 $!en the financial institutions may be prepared to gi!e

credit to sic0 industrial units which ha!e insured their assets including plant and machinery1

Mean' o& 'a2in' an# in2e't7ent1 Insurance ser!es as sa!ings and in!estment# insurance is a compulsory

way of sa!ings and it restricts the unnecessary e6penses by the insureds For the purpose of a!ailing incomeE

ta6 e6emptions also# people in!est in insurance1

So9!4e o& ea!nin &o!ein e:4"ane1 Insurance is an international business1 The country can earn foreign

e6change by way of issue of marine insurance policies and !arious other ways1

Ri'6 &!ee t!a#e1 Insurance promotes e6ports insurance# which ma0es the foreign trade ris0 free with the help

of different types of policies under marine insurance co!er1


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*.,. LIFE INSURANCE1

4ife insurance is a contract under which the insurer 2Insurance Company3 in Consideration of a premium paid

underta0es to pay a fi6ed sum of money on The death of the insured or on the e6piry of a specified period of

time .hiche!er is earlier1 In case of life insurance# the payment for life insurance policy is certain1 The $!ent

insured against is sure to happen only the time of

its happening is not 0nown1 So life insurance is 0nown as #4ife Assurance1 The sub/ect matter of

insurance is life of human being1 4ife insurance pro!ides ris0 co!erage to the life of a person1 9n death of the

person insurance offers protection against loss of income and compensate the titleholders of the policy1

*.-. ROLES OF THE LIFE INSURANCE1

Li&e in'9!an4e a' an in2e't7ent1 ;

Insurance products yield more than any other in!estment instruments and it also pro!ides added incenti!es or

bonus offered by insurance companies1

Li&e in'9!an4e a' !i'6 4o2e!1 ;

Insurance is all about ris0 co!er and protection of life1 Insurance pro!ides a unique sense of security that no

other form of in!est can pro!ide1

Li&e in'9!an4e a' ta: 3lannin1 ;

Insurance ser!es as an e6cellent ta6 sa!ing mechanism


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*.. IMPORTANCE OF THE LIFE INSURANCE1

P!ote4tion aain't 9nti7el8 #eat"1 ;

4ife insurance pro!ides protection to the dependents of the life insured and the family of the assured in case of

his untimely death1 The dependents or family members get a fi6ed sum of money in case of death of the

assured1

Sa2in &o! ol# ae1 ;

After retirement the earning capacity of a person reduces1 4ife insurance enables a person to en/oy peace of

mind and a sense of security in hisJher old age1

P!o7otion o& 'a2in'1 ;

4ife insurance encourages people to sa!e money compulsorily1 .hen life policy is ta0en# the assured is to pay

premiums regularly to 0eep the policy in force and he cannot get bac0 the premiums# only surrender !alue can

be returned to him1 In case of surrender of policy# the policyholder gets the surrendered !alue only after thee6piry of duration of the policy1

Initiate' in2e't7ent'1 ;

4ife Insurance Corporation encourages and mobili5es the public sa!ings and canali5es the same in !arious

in!estments for the economic de!elopment of the country1 4ife insurance is an important tool for the

mobili5ation and in!estment of small sa!ings1

C!e#it %o!t"ine''1 ;

4ife insurance policy can be used as a security to raise loans1 It impro!es the credit worthiness of business1

So4ial Se49!it81 ;

4ife insurance is important for the society as a whole also1 4ife insurance enables a person to pro!ide for

education and marriage of children and for construction of house1 It helps a person to ma0e financial base for

future1

Ta: Bene&it1 ;

nder the Income Ta6 Act# premium paid is allowed as a deduction from the total income under section %(C1


12/46

*./. INSURANCE CYCLE1

Poli48 Rene%al


13/46

pon receipt of a properly completed and timely submitted insurance application# the insurance pro!ider will

accept and process the application# unless the applicant is determined to be ineligible under the contract or

Federal statute or regulation1 The insurance pro!ider will issue a summary of co!erage and the appropriate

policy documents to the applicant1 After the application is accepted# the policyholder may not cancel the policy

for the initial crop year1

In'9!an4e Atta4"e'1 ;

For annual crops# insurance attaches annually when planting begins on the insurance unit1 The crop must be

planted on or before the crops published final planting date unless late or pre!ented planting pro!isions apply1

If pre!ented planting pro!isions apply# and the crop cannot be timely planted due to the causes specified in the

crop pro!isions# such acreage may be eligible for a pre!ented planting payment1

A4!eae Re3o!t'1;

The policyholder must annually report for each insured crop in the county the number of insurable and

uninsurable acres planted or pre!ented from being planted if pre!ented planting is a!ailable for the crop# thedate the acreage was planted# share in the crop# the acreage location# farming practices used# and types or

!arieties planted to the insurance pro!ider on or before the applicable acreage reporting date specified in the

crop actuarial documents1

S977a!8 o& Co2e!ae1;

The insurance pro!ider will process a properly completed and timely filed acreage report# and issue to the

policyholder a summary of co!erage that specifies the insured crop# the insured acres and amount of insurance

or guarantee for each insurance unit1 The policyholder may ma0e changes to the filed acreage report# if

permitted by the insurance pro!ider1

P!e7i97 Billin1;

The annual premium is earned and payable at the time insurance co!erage begins1 The insurance pro!ider shall

issue a premium billing based upon the information contained in the acreage report no earlier than the premium

billing date specified in the crop actuarial documents1 The premium billing will specify the amount of premium

and any administrati!e fees that may be due1 If the premium or administrati!e fees are not paid by the datespecified in the actuarial documents or policy# the insurance pro!ider may assess interest on the outstanding

premium balance1

Noti4e o& Da7ae o! Lo''1 E


14/46

A written notice of damage or loss for each unit is to be filed by the policyholder within G) hours of the

policyholders initial disco!ery of damage or loss but not later than 8; days after the calendar date for the end

of the insurance period unless otherwise stated in the indi!idual crop policy1 The policyholder should refer to

the indi!idual crop pro!isions for additional requirements in the e!ent of damage or loss1 These notifications

pro!ide the opportunity for the insurance pro!ider to inspect the crop and determine the e6tent of damage or

potential production before the crop is har!ested or otherwise disposed of1

In'3e4tion1E

After the insurance pro!ider recei!es the written notice of damage or loss# it will be processed and# if

necessary# a loss ad/uster will be sent to inspect the damaged crop and gather pertinent information concerning

the damage1 If the policyholder wishes to destroy or not har!est the crop# the loss ad/uster will gather the

appropriate information# conduct an appraisal to establish the crops remaining !alue and complete any forms

needed1 If the crop has been har!ested or will not be har!ested by the end of the insurance period# and the

policyholder wishes to file a claim for indemnity# the loss ad/uster will gather the appropriate information and

assist the policyholder in filing the claim for indemnity1 It is the policyholders responsibility to establish thetime# location# cause# and amount of any loss1

In#e7nit8 Clai71E

After the claim for indemnity is processed by the insurance pro!ider# an indemnity chec0 and a summary of

indemnity payment will be issued showing any deductions to the amount of indemnity for outstanding

premium# interest# or administrati!e fees1

Cont!a4t C"ane Date1;

Changes to the insurance program may be made by RMA from one year to the ne6t1 The insurance pro!ider

will notify the policyholder in writing of any changes to the policy# actuarial documents# or the Special

-ro!isions of Insurance prior to the calendar date for contract changes specified in the crop policy1 The

policyholder will ha!e the opportunity to re!iew the changes and# if heJshe desires# continue the insurance

co!erage for the following crop year# change the policy co!erage# or cancel the insurance co!erage1 Any

changes to the policy co!erage that the policyholder ma0es must be made no later than the crop sales closing

date1 If the policyholder wishes to cancel the policy# a written notice must be submitted to the insurance

pro!ider on or before the crop cancellation date1

CHAPTER +


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INTRODUCTION TO INDIAN INSURANCE INDUSTRY
http://www.reliancelife.com/default.asp


16/46

+.*. INDIAN INSURANCE INDUSTRY

The Insurance sector in India go!erned by Insurance Act# 8K:%# the 4ife Insurance Corporation Act# 8K;< and

'eneral Insurance Business 2&ationali5ation3 Act# 8KG)# Insurance Regulatory and +e!elopment Authority

2IR+A3 Act# 8KKK and other related Acts1 .ith such a large population and the untapped mar0et area of this

population Insurance happens to be a !ery big opportunity in India1 Today it stands as a business growing at

the rate of 8;E)( per cent annually1 Together with ban0ing ser!ices# it adds about G per cent to the countrys

'+- 1In spite of all this growth the statistics of the penetration of the insurance in the country is !ery poor1

&early %(L of Indian populations are without 4ife insurance co!er and the =ealth insurance1 This is an

indicator that growth potential for the insurance sector is immense in India1 It was due to this immense growth

that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was

constituted by the go!ernment in 8KK: to e6amine the !arious aspects of the industry1 The 0ey element of the

reform process was -articipation of o!erseas insurance companies with )


17/46

+.+. A BRIEF HISTORY OF THE INSURANCE SECTOR1

The business of life insurance in India in its e6isting form started in India in the year 8%8% with the

establishment of the 9riental 4ife Insurance Company in Calcutta1 Some of the important milestones in the life

insurance business in India are gi!en in the following table1

Ta5le1 *

The 'eneral insurance business in India# on the other hand# can trace its roots to the Triton Insurance Company4td1# the first general insurance company established in the year 8%;( in Calcutta by the British1 Some of the

important milestones in the general insurance business in India are gi!en in the following table

Yea!' I73o!tant 7ile'tone' in t"e In#ian li&e in'9!an4e 59'ine''

8K8), The Indian 4ife Assurance Companies Act came into force for regulating the life insurance business1

The Indian Insurance Companies Act was enacted for enabling the go!ernment to collect statistical

information on both life and nonElife insurance businesses1

The earlier legislation consolidated the Insurance Act with the aim of safeguarding the interests of the

insuring public1

)*; Indian and foreign insurers and pro!ident societies were ta0en o!er by the central go!ernment

and they got nationali5ed1 4IC was formed by an Act of -arliament# !i51 4IC Act# 8K;


18/46

1

Ta5le1 +

8KK< setting up of 2interim3 Insurance Regulatory Authority 2IRA3 Recommendations of the IRA1 8KKG

Mu0her/ee Committee Report submitted but not made public 8KKG The 'o!ernment gi!es greater autonomy to

4IC# 'IC and its subsidiaries with regard to the restructuring of boards and fle6ibility in in!estment norms

aimed at channeling funds to the infrastructure sector1 8KK% The cabinet decides to allow *(L foreign equity in

pri!ate insurance companiesE)


19/46

+.,. INDIAN INSURANCE MARKET HISTORY1

Insurance has a long history in India1 4ife Insurance in its current form was introduced in 8%8% when 9riental

4ife Insurance Company began its operations in India1 'eneral Insurance was howe!er a comparati!ely late

entrant in 8%;( when Triton Insurance company set up its base in "ol0ata1 =istory of Insurance in India can be

broadly bifurcated into three eras, a3 -re &ationali5ation b3 &ationali5ation and c3 -ost &ationali5ation1 4ife

Insurance was the first to be nationali5ed in 8K;


20/46

+. INDIAN SCENERIO1;

Indian economy is the 8)th largest in the world# with a '+- of O81); trillion and :rd largest in terms of

purchasing power parity1 .ith factors li0e a stable %EK per cent annual growth# rising foreign e6change

reser!es# a booming capital mar0et and a rapidly e6panding F+I inflows# it is on the hinge of an e!er

increasing growth cur!e1 Indians ha!e a tendency to in!est in properties and gold followed by ban0 deposits1

They selecti!ely in!est in shares also but the percentage is !ery smallEE*E;L1 This in itself is an indicator that

growth potential for the insurance sector is immense1 Its a business growing at the rate of 8;E)(L per annum

and presently is of the order of O*G1K billion1 India is a !ast mar0et for life insurance that is directly

proportional to the growth in premiums and an increase in life density1 .ith the entry of pri!ate sector players

bac0ed by foreign e6pertise# Indian insurance mar0et has become more !ibrant1Competition in this mar0et is

increasing with companys continuous effort to lure the customers with new product offerings1 =owe!er# the

mar0et share of pri!ate insurance companies remains !ery low EE in the 8(E8;L range1 $!en to this day# 4ife

Insurance Corporation 24IC3 of India dominates Indian insurance sector1 The hea!y hand of go!ernment still

dominates the mar0et# with price controls# limits on ownership# and other restraints1 The upward growth trend

started from )((( was mainly due to economic policies adopted by the then Indian go!ernment1 This year saw

initiation of an era of economic liberali5ation and globali5ation in the Indian economy followed by se!eral

reforms and longEterm policies that created a perfect roadmap for the success of Indian financial mar0ets1


21/46

Fi9!e1 *

The general insurance industry grew by 8


22/46

,.* TATA AIG INSURANCE COMPANY

Tata $nterprises with %) companies# spread o!er se!en sectors and with an annual turno!er e6ceeding S O

%1% billion# employs more than )


23/46

continental $urope operations are based in 4a +efense# -aris# and its Asian = is in =ong "ong1 According to

the )(8( Forbes 'lobal )((( list# AI' was the 8%thElargest company in the world1

Co73an8 Ba46!o9n#1 AI's history dates bac0 to 8K8K# when Cornelius ?ander Starr established an

insurance agency in Shanghai# China1 Starr was the first .esterner in Shanghai to sell insurance to the

Chinese1 P In 8K


24/46

'roup# Inc1 2AI'3 and Tata 'roup1 They own the company in the ratio of )


25/46

CHAPTER -

INTRODUCTION OF THE RESEARCH STUDY


26/46

-.*. OBECTIVE OF THE PROECT1E

Main ob/ecti!e of the pro/ect is to find out the mar0et potentialility of Tata AI' in -athanamthitta city1 -ro/ect

is about to find out the competitors Tata AI' 4ife Insurance company1 &owadays all the insurance companies

in India are trying to establish themsel!es in the competiti!e mar0et1 They are introducing inno!ati!e

mar0eting strategies to sur!i!e in the mar0et1 Many other pri!ate companies are loo0ing to enter in the Indian

insurance mar0et1

To find out the mar0et potentiality of Tata AI' in -athanamthitta city1

Main 4o73etito!' o& Tata AIG.

W"i4" t83e o& 3oli4ie' i' 3!e&e!a5le

Mo't 3!e&e!a5le 3lan' in Pat"ana7t"itta 4it8.

W"i4" 'e4to! i' 7o't 3!e&e!a5le 395li4 o! 3!i2ate

Ta!etin t"e !i"t an# 3otential 49'to7e!'

Di&&e!entiatin &!o7 ot"e! 4o73anie'

DATA ANALYSING


27/46

a. Ae %i'e 4la''i&i4ation1

Age &o 9f Respondent

8% N ); 88

)< N :( ))

:8 N *; **

*< N to abo!e ):

Inte!3!etation1 ;

This chart shows that ** people belong to age group of :8E*;1 So we can say adult more prefer insurance1

5 Gen#e! %i'e 4la''i&i4ation1

01020304050

18

25

26

30

31

45

46 to

above

year

No Of respondent


28/46

'ender &o 9f Respondent

Male


29/46

9ccupation &o 9f Respondent

Ser!iceman *(

Businessman );

Student )(

=ousewi!e 8;

45%

23%

17%

15%

OCCUPATION

seviceman Businessman STUDENT HOUSEWIVE

Inte!3!etation1 ;

This charts depicts that *(L ser!icemen and);L business men are respondent in my report1

5. In4o7e %i'e 4la''i&i4ation1

Income &o of Members


30/46

*(0 N G(0 8G

G(0 N 8 4a0e *8

8 4a0e to : 4a0es )%

: 4ac0s 8*

17%

41%

28%

14%

INCOME

4! " 7!

7! " 1 #a!e

1 #a!e $ 3 #a!es

3 #ac!s

Inte!3!etation1 ; *8L of people ha!e tac0 insurance and is ran0ed number one by that percent of

respondent1

09e. * A!e 8o9 In'9!e#


31/46

INSURED N> o& !e'3on#ent

YES ?+

NO +@

TOTAL *>>

7$S &9

Series 8 G) )%

(

8(

)(

:(

*(

;(


32/46

NO POLICIES N> o& Re'3on#ent PARCENTAGE

* 4IF$ I&SRA&C$ 8% );L+ =$A4T=

I&SRA&C$% 88L

, '$&$RA4I&SRA&C$

8( 8*L

- A44 9F T=$M :< ;(L T9TA4 G) 8((L

);L

88L

8*L

;(L

POLICIES

4IF$ I&SRA&C$

=$A4T= I&SRA&C$

'$&$RA4 I&SRA&C$

A44 9F T=$M

Inte!3!etation1 ;

It is clear from the chart that ;(L people come to ta0e all policies its mean customer ha!e more aware tothe all type of insurance1

09e. , A!e 8o9 a%a!e all t"e 3lan' an# 93#ate' &!o7 4o73an8


33/46

PLANS AND UPDATES N> o& Re'3on#ent PARCENTAGE

YES -@ /?

NO +- ,,

TOTAL ?+ *>>

Inte!3!etation1 ;

It is clear from the chart that *% people say yes and )* say no1 Its mean customer ha!e more aware to theall plans and updates for the company1


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09e. - A!e 8o9 'ati'&8 o& t"e 3lan' t"e'e 4o73an8

SATISFACTION N> o& Re'3on#ent PARCENTAGE

YES ;< G%LNO 8< ))L

TOTAL G) 8((L

Inte!3!etation1 ;

It is clear from the chart that G%L people say yes and ))L say no1 Its mean customer ha!e more satisfyto the plans for the company1


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09e. Ho% #o 8o9 4o7e to 6no% a5o9t t"e'e 4o73an8 3!o#94t

NO SOURCE NO OF

RESPONDENT

PARCENTAGE

* NEWS PAPER *- *=

+ AGENT ,+ -

, ADVERTISMENT *- *=

- MOUTH OF

SPREAD

*+ *?

TOTAL ?+ *>>

5

1

15

2

25

3

35

&ews paper Agent Ad!ertisment Mouth of spread

Series 8 8* :) 8* 8)

Inte!3!etation1 ;

This chart shows that agent is the most communicational tool for insurance company1


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-.,. METHODOLOGY1

Research is totally based on primary data1 Secondary data can be used only for the reference1 Research has

been done by primary data collection# and primary data has been collected by meeting with the people in

'walior1 +ata collection has been done through by gi!ing structured questioner1 This study will be based on

sampling1 This is an e6ploratory type of research1 The study was aimed at measuring the customers preference

for life insurance companies and the comparison of !arious insurance policies of the !arious companies on

basis of !arious parameters based on customers responses in -athanamthitta region only1 The sur!ey was done

on hundred general residents of the selected region1 Methods adopted for sur!eys 81 Field sur!ey method )1

-ersonal inter!iew technique :1 Secondary sources !i5 company database1 The data collected are represented

into suitable tabular forms for drawing inferences1 uantitati!e techniques li0e a!erages# percentages# range#

twoEway tables# chiE square tests analysis are applied as per the requirement1 The le!el of preference#perception of the customers about the product and company1

-.-. 09e'tionnai!e De'inin1

The pro/ect is on Mar0et -otential Study of Tata AI' in -athanamthitta city1 To 0now the mar0et

potentiality of Tata AI' a questionnaire has been prepared1 The questionnaire is ha!ing both open ended and

close ended questions1 It is also ha!ing ran0ing# multiple choice and chec0 list type of questions1 First part of

the questionnaire is the demographic part1 uestionnaire has been prepared in such a way that we can

understand insurance policies are dependable on the occupation of a person or income le!el of a person1 .hich

type of in!estment do they preferD For it cluster analysis will be used1 &owadays pri!ate players are gi!ing a

good rate of return rather than the public player1 So in which sector 2pri!ate or public3 do they li0e to in!est

and what is the reason behind thatD To get to 0now the reason 4i0ert scale has been used1 To get to 0now how

much Tata AI' is preferable in -athanamthitta city a ran0ing scale has been used where name of different

ma/or Insurance Companies ha!e been gi!en and according to the ran0ing gi!en by citi5en we can get to 0now

the potentiality of Tata AI' in -athanamthitta city1 There is different type of insurance policies in the mar0et1

.hich type of policies do they prefer can understand from the questionnaire1 .hich life insurance policies of

Tata AI' are most preferable we can get from it1 To 0now all of these cluster analysis will be used1 Sample

questionnaire has been attached 1


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-.. LIMITATION OF THE STUDY,

Time limitation

Research has been done only in -athanamthitta1

Companies did not disclose their secrets data and strategies1

-ossibility of $rror in data collection1

-ossibility of $rror in analysis of data due to small sample si5e1

Respondents error

4imited resources


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CHAPTER

RECOMMENDATION AND BENEFIT

.*. RECOMMENDATIONS TO THE COMPANY1

Being the best product player in the pri!ate sector# but still sur!ey TATA AI' needs to impro!ement

regarding its premium charges and ad!ertisement to its target customers1

A P!e7i97 4"a!e'

9wing to its high premium charges 2Tata AI' Ape6 -lan# -remium RS1 K((((JE3 customers perception about

the companys product has become that its only for the upper middle class people1 .hereas TATA AI' do has

some policy with low premium but the charges of allocation are too high1 So we would li0e to suggest slowing

down its premium charges to some e6tend by reducing administration charges and other charges1

5 A#2e!ti'e7ent1

+uring sur!ey we ha!e found that due to lac0 of ad!ertisements about the products and agents selling the

products in which they get high commissions customers are somewhere mislead and they 0now about !ery few

products though TATA AI' has wide range of !ariety of the products1 So we would recommend TATA AI'

to in!est more in ad!ertisement in form of T? commercials# pamphlets and hoardings1

4 W!on 3e!4e3tion,

AI' is on the edge of filing ban0ruptcy1 So Tata AI' is also going to on the brin0 of filling ban0ruptcy1 But

insurance in India is a highly regulated industry1 Any company that wants to set up an insurance business has

to follow !ery stringent norms gi!en by the Insurance Regulatory +e!elopment Authority 2IR+A31 So

company should ta0e positi!e measure to remo!e this wrong perception from the people1

# Sa73le 'ie1

For this research study only hundred sample si5e has been ta0en1 The result will be more appropriate if a large

sample si5e is considered1


39/46


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CHAPTER /

CONCLUSION AND REFERENCE

/.* CONCLUSION

Indian insurance sector is li0ely to register unprecedented growth of )((L and attain a si5e of Rs1 )((( billion

2O;81) billion3 by )((KE8(# in which a pri!ate sector insurance business will achie!e a growth rate of 8*(L as

a result of aggressi!e mar0eting technique being adopted by them against :;E*(L growth rate of state owned

insurance companies1 The rural mar0et offers tremendous growth opportunities for insurance companies and

insurers should de!elop !iable and costEeffecti!e distribution channels build consumer awareness and

confidence1

The state owned insurance companies such as 4IC and 'IC ha!e limited number of policies to offer to theirsubscribers while in case of pri!ate insurance companies# their policy numbers are many more and the

premium amount as well as the maturity period is much competiti!e as against those of go!ernment insurance

companies1 The pri!ate sector insurance players ha!e started e6ploring the rural mar0ets in which until

recently# the state owned companies had the monopoly1

=ere it can be concluded that the summer internship program# done for partial fulfillment of the B1C9M course

in M1' ni!ersity# in TATA AI' 4ife Insurance Co1 4td1 has been completed successfully1


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/.+. RFERENCES

For the references different boo0s# /ournals# and newspapers ha!e been used and different websites ha!e been

used1

Na7e o& %e5'ite'1

www1tataEaig1comJlifeinsurance

www1tataEaiggeneral1com

www1tataEaigElife1com

www1mouthshut1comJproductEre!iewsJTataAI''eneralInsurance

www1irdaindia1orgJdutiesJhtml

www1mydigitalfc1comJtataEaigEeyesE8(EgrowthEmotorEinsuranceE;;


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Na7e o& 5oo6 an# o9!nal1

Busness !ord "O#tober 2011$

Busness toda% "&une 2011$

Busness 'nda " Ma% 2011$

Tata AI' 4ife Insurance Company 4td# India# C'A- .or0ing 'roup on Micro insurance

'ood and Bad -ractices# Case Study &o 8*# >ames Roth and ?i/ay Athreye

Na7e o& ne%'3a3e!1

Asia $conomy .atch )8st March )(88

Business 4ine )(thSeptember )(88

The =indu $ditorial ): rd# )*th# )


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0UESTIONNAIRE

Ma!6et Potential 't9#8 o& Tata AIG in Pat"ana7t"itta Cit8

+ear SirJMadam#

.e are conducting a sur!ey on Mar0et potential study of Tata AI' in -athanamthitta city by Insurance

organi5ations1 .e hope for your 0ind coordination1

&ame, UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

Age, UUUUUUUUUU Se6, Male V W Female V W

&ame and address of the organi5ation,

UUUUUUUUUUUUUUUUUUUUUUU1

UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU1111111111111111111111111111111111111

UUUUUUUUUUUUUUUUUU

Contact &umber, UUUUUUUUUUUUUUU

$Email address, UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU11111111111

81 Family Members, 2-lease tic03

a38E* V W b3 *E% V W c3 %E8) V W

d3 8)E8< V W e3 8


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:1 9ccupation, 2-lease Tic03

a3 Ser!ice V W b3 Business V W c3 -rofessional V W

b3 d3 Any other, UUUUUUUUUUUUUUU111

*1 Annual Income, 2-lease Tic03

a3 ;((((E8((((( V W b3 8(((((E:((((( V W c3 :(((((E;((((( V W

c3 ;(((((E8(((((( V W e3 8(((((( V W

;1 In which would you li0e to in!estD 2-lease Tic03

a3 Fi6ed deposit V W b3 -ost office V W c3 Mutual fund V W

d3 Share buying V W e3 Insurance policy V W


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a3 4ife Insurance V W b3 ?ehicle Insurance V W c3 -ension plan V W

d3 Medi claim V W e3 Any 9ther, UUUUUUUU

ue18( =ow do you come to 0now about these company productD

a1 &ews paper

b1 Agent

c1 Ad!ertisement

d1 Mouth of spread

ue1 88 Are you satisfy of the plans these companyD

a1 7es b1 &o

Any Comments,

UUUUUUUUUUUUUUU111111111111UUUUUUUUUUUU11111111111111111111111111111111UU

UUUUUUUUUUUUUUUUUUUUUUUUUUUUU1UUUU111

UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

Than0 you# for your 0ind coEoperation1

Signature, UUUUUUUUUUUUU11

+ate, UUUUUUUUUUUUUUU11


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138360443 Project on Tata Aig Life Insurance

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Transcript of 138360443 Project on Tata Aig Life Insurance