Arpit Project Ppt

8/6/2019 Arpit Project Ppt

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WHAT IS INSURANCE?

The business of insurance is related to the protection of the economic values of assets.Every asset has a value. The asset would have

been created through the efforts of the owner.The asset is valuable to the owner, because heexpects to get some benefit from it. The

benefit may be an income or some thing else.It is a benefit because it meets some of hisneeds.



THE BIRTH OF INDIAN

INSURERSThe Swadeshi movement of 1905-1907 gaverise to more insurance companies. The United

India in Madras, National Indian and NationalInsurance in Calcutta and the Co-operativeAssurance at Lahore were established in 1906.



INSURANCE ACT, 1938

The Insurance Act, 1938, was the firstcomprehensive legislation governing not onlylife but also non- life branches of insurance to

provide strict state control over insurance business.Feature

Provision for policyholders' directors, makingit possible for the representatives of Policyholders to be on the Board of directors.



P RESENT SCENARIO OFINSURANCE INDUSTRY

Saturation of markets in many developedeconomies has made the Indian market evenmore attractive for global insurance majors.The insurance sector in India has come to a

position of very high potential andcompetitiveness in the market. Indians, have

always seen life insurance as a tax savingdevice, are now suddenly turning to the privatesector that are providing them new productsand variety for their choice.



FOREIGN DIRECT INVESTMENT(FDI) P OLICY IN INSURANCE

SECTOR

As per the current (Mar 06) FDI norms,

foreign participation in an Indian insurancecompany is restricted to 26.0% of its equity /ordinary share capital. The limit to foreigninvestment includes both direct and indirect

investment and has been a cause of significantlobbying by foreign insurance companies for achange in regulations to increase the FDI limitto 49% of equity issued.



Positions of LIC

Largest insurance Company in the world inCustomer Base (23 crore customers) No.1 insurance company in the world in termsof agency (about 1.1 Million agents)

LIC is No.1 insurer in the world in Volume &Sold around 3.75 Cr. Policies in 2007-2008.2nd Biggest Real Estate Owner next to IndianRailways.

LIC is one of the highest income taxes playingOrganization. For Financial Year 2007-08, LIChas paid advance Tax Rs.2627. 14 Cr. &Service Tax Rs.1292. 15 Cr.

Has Highest insurance Professionals.



Unit- L inked Insurance Plans

In the life insurance segment, various unitlinked insurance plans (ULIPs) have beenintroduced by private players, which helpedthem to compete against LIC and also create aclientele comprising of individuals who arewilling to opt for these plans for purelyinvestment purposes.



Particulars 2005-06 2006-07 2007-0 8 200 8-0 9 200 9-10 9

I nsurer F irst year p remium

LIC64.52 74.35 64.02 61.12 65.08

Private Sector 35.48 25.65 35.98 38.88 34.92

Total 100.00 100.00 100.00 100.00 100.00

Single premium

LIC 84.45 87.04 86.99 90.44 92.19

Private Sector 15.55 12.96 13.01 9.56 7.81

Total 100.00 100.00 100.00 100.00 100.00



R enewal premium

LIC 92.82 89.03 83.42 77.24 73.64

Private Sector 7.18 10.97 16.58 22.76 26.36

Total 100.00 100.00 100.00 100.00 100.00

Total premium

LIC 85.75 81.92 74.39 70.92 70.10

Private Sector 14.25 18.08 25.61 29.08 29.90

Total 100.00 100.00 100.00 100.00 100.00



LITERATUREREVIEW

³

Insurance is a vital economic activity and there isan excellent scope for its growth in the emergingmarkets. The opening up of the insurance sector hasraised high hopes among people both in India andabroad.Abera (2007) indicated, ³ The Government of Indialiberalized the insurance sector in March 2000,which lifted the entry restrictions for privateinsurance players, allowing foreign players to enter

into the market and start their operations in India.The entry of private players helps in spreading andkeeping the operation in the Indian insurance sector which in turn results in Restructuring andrevitalizing of public sector companies ³ .



Obj ectives

To examine the current status, volume of competitions and challenges faced by the LifeInsurance Corporation of India.

To see the performance of the private lifeinsurance players against LIC.To analyze the life insurance services of LICas well as private life insurance players.To know the consumer preference for buyinglife insurance policy for LIC against privatelife insurance players.



To know the different motive of people behind purchasing life insurance policy.To know various media or promotional toolthose are affecting people for buying lifeinsurance policy.



L imitations

Time period is one of the limitations because project need to completed within 60-70 days.

Researchers are not going to take response

from the every regions or part of the countryfor collecting the information to analyze data.Being students, Researchers are not masters or experts of research activity hence it becomeslimitations.This project report is based on the informationgiven by the respondents. So researchers relyon the information provided by respondents.



RESEARCHMETHODOLOGY

RESEARCH DESIGN: EX P LORATORYRESEARCH DESIGN: The exploratorystudies are carried out to explore a subject . The

main objective is to help in defining research problem and generate a set of hypothesis or research question which could be worked uponat a later stage. Exploratory studies areconducted for three main reasons, to analyze a

problem situation, to evaluate alternatives andto discover new ideas.



RESEARCH HY P OTHESIS: A researchhypothesis is one that links an independentvariable to a dependent variable. It shouldgenerally contain one dependent and oneindependent variable.

It is assumed that the entry of the private lifeinsurance players affect the performance of theLIC.

It is assumed that the entry of the private lifeinsurance players affect adversely to the LIC.



TY P ES OF DATA USED FOR THIS STUDY:Primarily it has used primary data for thisresearch collected through questionnaire. It isnecessary to note that researchers also used somesecondary data from various sources for this

project report.

SAM P LE SELECTION AND SAM P LE SIZE:The first step of research is sample selection, for which the respondents were Policy holders of various life insurance companies. The totalRespondents covered were 300. The samenumbers of questionnaires were distributed, &300 fully-completed questionnaires were

received.



SAM P LING METHOD: The Respondentswere selected by the convenience samplingmethod. Convenience sampling can be used asa part of a preliminary research that forms a

basis for conducting the detailed research.

Q UESTIONNAIRE AS A TOOL OFCOLLECTING INFORMATION: Aquestionnaire is a research instrumentconsisting of a series of questions and other

prompts for the purpose of gatheringinformation from respondents. Although theyare often designed for statistical analysis of theresponses, this is not always the case.

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