NITIN AGNIHOTRI

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Executive Summary

Summer Internship Program is conducted by every business school as

a part of their curriculum so that the students get an exposure to thereal corporate world. The internship enables the student to get a feel

of the working environment of big corporate houses. This report

provides the outline of my work till now as a part of the Summer

Internship Program, which corroborate the application of my

theoretical knowledge to the practical business world. For my

industrial spotlight and a first exposure to the corporate world, I had

selected KARVY STOCK BROKING LTD.

I joined Karvy Stock Broking Ltd. on 1st May 2009. I have been givenchance to work in the Sales department. On my first day I met my

company guide Mr.Rohit Mahipal, who is the broking head of eastern

region. I had initial discussion about my project with him. He

explained me in brief the workings of the department.

The project is all about comparative analysis of different insurance

products of different companies. The objective of the project was to

check the awareness level of Insurance and attitude of the people

towards insurance in the current market. Survey was also doneregarding the preference of insurance sector depending on the age

group (whether they prefer private players or public companies) .

In the beginning, we gain an insight about the company and its

values and inherit them in our life, and then studied different types of

insurance plans like ULIPs, term plan, endowment plan, and various

other plans.

Now, on to the statistical part, we designed a questionnaire that will

provide a base for studying the awareness level and perception of the

life insurance. The project helped me in developing my

communication skill and interpersonal skills. During the tenure of my

internship I learned a lot from my seniors, colique etc but above all I

learned a lot from my own personal experience.


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INTRODUCTION

About the projectThe project deals with comparative analysis of different insurance

products offered by insurance companies.

Purpose of the projectThe main purpose of the project is to do comparative analysis of

different insurance products, check the awareness level and perception

of insurance by the individuals. The project would also help in

understanding preference of people regarding private and public

insurance companies. The main objective of the research is

Making comparative analysis between:-

i) Birla sun life insurance with life insurance Corporation of India.

ii) Birla sun life insurance with Tata AIG life insurance.

iii) National Health Plan with Reliance Health Wise Policy.i

Finding out the features and benefits of these plansF To find out the awareness level of insurance in KolkataT

To determine customer preference towards private insurancecompanies and public insurance companies.c Marketing of different insurance products.

Scope of the project

The entry of foreign MNCs and the conductive business environment

fostered by the government, it is no wonder that the re-entry of private

insurance has marked a second coming for the sector. In just five

years, the sector has undergone a makeover, offering more choice,

better services, quicker settlement, tighter regulation and greater

awareness s the environment become more and more competitive

and services and products become alike, creating a differentiation is

becoming extremely tough. Thus, the main objective of my project was

to find out the preference of people regarding

insurance companies, which would help karvy employees to market

their product. The study then goes on to evaluate and analyze the

findings so as to present a clear picture of recent trends in the


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Insurance sector.

5. REVIEW OF LITERATURE

5.1 About Insurance Industry

"Insurance is a contract between two parties whereby one party calledinsurer undertakes in exchange for a fixed sum called premiums, topay the other party called insured a fixed amount of money on thehappening of a certain event."Insurance is a protection againstfinancial loss arising on the happening of an unexpected event.Insurance companies collect premiums to provide for this protection. Aloss is paid out of the premiums collected from the insuring public and

the Insurance Companies act as trustees to the amount collected. ForExample, in a Life Policy, by paying a premium to the Insurer, thefamily of the insured person receives a fixed compensation on thedeath of the insured. Similarly, in a car insurance, in the event of thecar meeting with an accident, the insured receives the compensationto the extent of damage. It is a system by which the losses suffered bya few are spread over many, exposed to similar risks.

Logic of insuranceIt is a system by which the losses suffered by a few are spread over

many, exposed to similar risks. Insurance is a protection against

financial loss arising on the happening of an unexpected event.

Insurance companies collect premiums to provide for this protection.

A loss is paid out of the amount premiums collected from the insuring

public and the Insurance Companies act as trustees to the collected.

Need of insurance

Insurance is desired to safeguard oneself and one's family against

possible losses on account of risks and perils. It provides financial

compensation for the losses suffered due to the happening of any

unforeseen events. By taking life insurance a person can have peace

of mind and need not worry about the financial consequences in

case of any untimely death. Certain Insurance contracts are also


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made compulsory by legislation. For example, Motor Vehicles Act

1988, stipulates that a person driving a vehicle in a public place

should hold a valid insurance policy covering Act" risks. Another

example of compulsory insurance pertains the Environmental

Protection Act, wherein a person using or to carrying hazardous

substances (as defined in the Act) must hold a valid public liability(Act) policy.

Insurance in India

Insurance is a federal subject i n India and has a historydating back to 1818. Life and general insurance in India isstill a nascent sector with huge potential for various globalplayers with the life insurance premiums accounting to 2.5%

of the country's GDP while general insurance premiums to0.65% of India's GDP. The Insurance sector in India hasgone through a number of phases and changes, particularlyin the recent years when the Govt. of India in 1999 openedup the insurance sector by allowing private companies tosolicit insurance and also allowing FDI up to 26%. Eversince, the Indian insurance sector is considered as abooming market with every other global insurance companywanting to have a lion's share. Currently, the largest lifeinsurance company in India is still owned by the government.

History of Insurance in India

Insurance in India has its history dating back till 1818, when OrientalLife Insurance Company was started by Europeans i n Kolkata to caterto the needs of European community. Pre-independent era in Indiasaw discrimination among the life of foreigners and Indians with higherpremiums being charged for the latter. It was only in the year 1870,Bombay Mutual Life Assurance Society, the first Indian insurance

company covered Indian lives at normal rates.

At the dawn of the twentieth century, insurance companies startedmushrooming up. In the year 1912, the Life Insurance Companies Act,and the Provident Fund Act were passed to regulate the insurancebusiness. The Life Insurance Companies Act, 1912 made it necessarythat the premium rate tables and periodical valuations of companiesshould be certified by an actuary. However, the disparage still existed
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as discrimination between Indian and foreign companies. The oldestexisting insurance company in India is National Insurance CompanyLtd, which was founded in 1906 and is doing business even today. TheInsurance industry earlier consisted of only two state insurers: LifeInsurers i.e. Life Insurance Corporation of India (LIC) and General

Insurers i.e. General Insurance Corporation of India (GIC). GIC had foursubsidiary companies.

Wi th effect from December 2000, these subsidiaries have been de-linked from parent company and made as independent insurancecompanies: Oriental Insurance Company Limited, New India AssuranceCompany Limited, National Insurance Company Limited and UnitedIndia Insurance Company Limited.

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted i n 1938, it was only in 19January 1956, that life insurance in India was completely nationalized,through a Government ordinance; the Life Insurance Corporation Act,1956 effective from 1.9.1956 was enacted in the same year to, inter-alia, form LIFE INSURANCE CORPORATION after nationalization of the245 companies into one entity. There were 245 insurance companiesof both Indian and foreign origin in 1956. Nationalization was

accomplished by the govt. acquisition of the management of thecompanies. The Life Insurance Corporation of India was created on 1September, 1956, as a result and has grown to be the largestinsurance company in India as of 2006 .

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act,

1972 was enacted to nationalize the 100 odd generalinsurance companies and subsequently merging them intofour companies. All the companies were amalgamated intoNational Insurance, New India Assurance, OrientalInsurance, and United India Insurance which wereheadquartered in each of the four metropolitan cities.
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Insurance Regulatory and Development Authority (IRDA)Act, 1999

Till 1999, there were not any private insurance companies in Indian

insurance sector. The Govt. of India then introduced the InsuranceRegulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies intothe insurance. Further, foreign investment was also allowed andcapped at 26% holding in the Indian insurance companies. In recentyears many private players entered in the Insurance sector of India.Companies with equal strength started competing in the Indianinsurance market. Currently, in India only 2 million people

(0.2 % of total population of 1 billion), are covered under Medi claim,

whereas in developed nations like USA about 75 % of the total

population are covered under someinsurance scheme. With more and more private players in the sectorthis scenario may change at a rapid pace

Different Insurance Companies

Insurance is an upcoming sector, in India the year 2000 was a

landmark year for life insurance industry, in this year the life insurance

industry was liberalized after more than fifty years. Insurance sector

was once a monopoly, with LIC as the only company, a public sector

enterprise. But nowadays the market opened up and there are many

private players competing in the market. There are fifteen private lifeinsurance companies has entered the industry. After the entry of these

private players, the market share of LIC has been considerably

reduced. In the last five years the private players is able to expand the

market (growing at 30% per annum) and also has improved their

market share to 18%. For the past five years private players have

launched many innovations in the industry in terms of products,

market channels and advertisement of products, agent training and

customer services etc.

The various life insurers entered India:-

1.1. Bajaj Allianz Life Insurance Company Limited2.2. Birla Sun Life Insurance Co. Ltd3.3. HDFC Standard life Insurance Co. Ltd4.4. ICICI Prudential Life Insurance Co. Ltd.5.5. ING Vysya Life Insurance Company Ltd.
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6.6. Max New York Life Insurance Co. Ltd7.7. Met Life India Insurance Company Ltd.8.8. Kotak Mahindra Old Mutual Life InsuranceLimited9.9. SBI Life Insurance Co. Ltd10.10. Tata AIG Life Insurance Company Limited11.11. Reliance Life Insurance Company Limited.12.12. Aviva Life Insurance Co. India Pvt. Ltd.13.13. Sahara India Life Insurance Co, Ltd.14.14. Shriram Life Insurance Co, Ltd.15.15. Bharti AXA Life Insurance Company Ltd.16.16. Future General Life Insurance Company Ltd.17.17. IDBI Fortis Life Insurance Company Ltd.18.18. Canara HSBC Oriental Bank of Commerce LifeInsurance Co. Ltd19.19. AEGON Religare Life Insurance Company Limited.20.20. DLF Pramerica Life Insurance Co. Ltd.21.21. Star Union Dai-ichi Life Insurance Comp. Ltd.

The various other general Insurance Companies

are as under:-

1.1. National Insurance Company Limited.2.2. Reliance General Insurance.3.3. Star Health Plus Insurance.4.4. Oriental Insurance Company.5.5. United India Insurance Company Ltd.6.6. New India Assurance Company Ltd.7.7. Bajaj Allianz General Insurance Company Ltd.8.8. Universal Sompo Insurance Company Ltd.9.9. Future General Insurance Company Ltd.10.10. ICICI Lombard General Insurance Ltd.

5.2 ADVANTAGES OF LIFE INSURANCE

i) Protection against risk of untimely death
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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.

ii) 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.

iii) Forced savings

Payment of life insurance premiums is compulsory and

becomes a habit. Savings in other scheme can be easily withdrawn andmay be used for less worthy purpose. Termination of a 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.

iv) 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 andschool.

v) 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 theinsured.21Marketability and suitability for borrowing

After 3 years, if the policyholder finds that he is unable to

continue payment of premiums he can surrender a policy for a cash

sum. A life insurance policy is accepted as a security for a commercial

loan.


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vi) Loans from the insurance company

A policy holder can take a loan from his insurance

company against the Security of his life insurance policy provided the

terms of the terms of his policy allow such a loan. This loan can betaken usually after a period of 3 years from commencement of the

policy and is a percentage of its surrender value.

vii) Investment options

The unit link products gives comprehensive insurance

solutions that cater to an individuals dual need of earning potentially

high returns as well as stay for life. Thus there is an option to invest

money in the products that combine the best of insurance and

investment. In a volatile market conditions it is possible to secure bothas one can hedge the investment with saver investment vehicles that

provide a diversified portfolio.

viii) Tax benefitsThe Indian income tax act provides tax concessions to

the policyholder both on payment of premium and on the maturity

amount. Under sec 88 the tax benefits on premium paid by an

individual for life insurance policies on his own life\on the life of spouse

\children minor or major, including married daughters.

Under sec 6 of the married womens property act if a married

man takes a policy of life insurance on his own life and expenses on

the face of it to be for the benefit of his wife or of his wife and children

or any of them, then it shall be deemed to be a trust for the benefit of

his wife and children or any of them, According to the interest so

expressed and shall not so long as any object of trust remains be

subject to the control of the husband or to his creditors or form part of

his estate. An insurance policy taken by a married man in the above

manner is ideal way to protect the interest of his wife and children,

even after his untimely death.


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5.3 Types of insurance products

Term assurance plan-In insurance language this is a pure risk

cover and can be described as an insurance or risk managementproduct in its purest and simplest form. In case of your untimely death,your dependents will receive the risk-cover amount or the sumassured. On the other hand, there is no survival benefits if you survivethe policy term, and you also do not get back the premiums paid.

Endowment assurance plans-It is a traditional investment-cum-insurance plan. In other words, it provides both life cover (in the eventof death of life insured) or maturity benefits if he/she survives thepolicy term. Endowment plans are typically front-loaded. Therefore itmakes sense for you to remain in the policy for at least 12-15

years.

Money-back policy-It is a variant of the endowment assurance policy-the difference is that you get the survival benefits intermittently overthe life of the policy. Thus taking care of his lump-sum monetaryrequirements to enable him to meet his financial goals and majorcommitments. The maturity benefit is the sum assured value less thesurvival benefits already paid under the policy, plus bonuses accrued,if any. In case of untimely death the nominee will receive the entiresum assured without considering the payouts already made to youbefore the unfortunate death.

Whole life plan-This policy provides the life assurance cover foralmost the entire life. Most of the insurance companies provideprotection up to the age of 100 years. The sum assured is paid to youonce you reach this age, and the policy is terminated. In this paymentof premium is for whole life, and the sum assured is paid to yournominee in the event of your death. In other words, this is equivalentto a term plan over your lifetime.

Pension plan-A pension plan can be looked as more of an investmentproduct offered by insurers to cater to the golden retirement years ofan individual. Also referred to as retirement plans, these are designed

to ensure that you are financially independent during your retirementyears. Most of the pension plans also provide an optional life assurancecover in them.

Child plan-It basically aims at ensuring the achievement of life goalsof your child. The goal can be higher education, financial help inestablishing a business or profession, or even marriage. In a child plan,the life assured can be the parent or the child. The beneficiary for the


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policy, however, is the child. As a child is a minor, the life insurancecontract is between the parent and the insurance company. In case ofearly death of the parent, the premium payment is waived off by theinsurance company and the policy continues as originally planned.

Unit Linked Insurance Plan-ULIPs have been the darling of insurancecompanies, intermediaries and the insured population alike over thelast five years. The main reason for this popularity is the twinadvantage of a pure life cover (insurance component) and a range ofinvestment funds or options (savings component) to match your riskprofile. While the pure life cover provides the much needed financialsecurity to your dependents in the event of your untimely death, thesavings component allows you to participate in the capital markets andbuild wealth over the long-term tenure of the policy.

Changing face of Indian insurance industry

Indian life-insurance market is the target market of all the companies

who either want to extend or diversify their business. To tap the Indian

market there has been tie-ups between the major Indian companies

with other International insurance companies to start up their business.

The government of India has set up rules that no foreign insurance

company can setup their business individually here and they have totie up with an Indian company and this foreign insurance company can

have an investment of only 24% of the total start-up investment.

Indian insurance industry can be featured by:I

Low market penetration. Ever growing middle class component in population.E Growth of customers interest with an increasing demand forbetter insurance products.b Application of information technology for business.A

Rebate from government in the form of tax incentives to beinsured.

Today, the Indian life insurance industry has a dozen private players,

each of which are making strides in raising awareness levels,

introducing innovative products and increasing the penetration of life

insurance in the vastly underinsured country. Several of private

insurers have introduced attractive products to meet the needs of their


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target customers and in line with their business objectives

5.4 India: The Next Insurance Giant

Market Performance & Forecast: In 2000, Indian insurance market sizewas $21.71 billion. Between 2000 and 2007, it had an increase of120% and reached $47.89 billion. Between 2000 and 2007, total

premiums maintained an average growth rate of 11.96% and the CAGRgrowth during this time frame has been 11.96%. It was one of the mostconsistent growth patterns we have noticed in any other emergingeconomies in Asian as well as Global markets.


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improve personal finances and for income tax planning; Indians havea tendency to invest in properties and gold followed by bank deposits.They selectively invest in shares also but the percentage is very small


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4-5%. This in itself is an indicator that growth potential for theinsurance sector is immense. Its a business growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.

India is a vast market for life insurance that is directly proportional tothe growth in premiums and an increase in life density. With the entry

of private sector players backed by foreign expertise, Indian insurancemarket has become more vibrant. Competition in this market isincreasing with companys continuous effort to lure the customers withnew product offerings. However, the market share of private insurancecompanies remains very low -- in the 10-15% range. Even to this day,Life Insurance Corporation (LIC) of India dominates Indian insurancesector. The heavy hand of government still dominates the market, withprice controls, limits on ownership, and other restraints.

Major Driving Factors

Growing demand from semi-urban population Entry of private

players following the deregulation Rising demand for retirement

provision in the ageing population The opening of the pension

sector and the establishment of the new pension

regulator Rising per capita incomes among the strong middle

class, and spreading

affluence

Growing consumer class and increase in spending & saving

capacity

Public private partnerships infrastructure development

Dearth of innovative & buyer-friendly insurance products


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Success of Auto insurance sector

Emerging Areas

Healthcare Insurance & Pension Plans

Mutual fund linked insurance products

Multiple Distribution Networks .i.e. Bank assurance

The upward growth trend started from 2000 was mainly due toeconomic policies adopted by the then Indian government. This yearsaw initiation of an era of economic liberalization and globalization inthe Indian economy followed by several reforms and long-term policiesthat created a perfect roadmap for the success of Indian financialmarkets. On the basis of several macroeconomic factors like increase

in literacy rate & per capita income, decrease in death rate andunemployment, better tax rebates, growing GDP etc., we estimate thatthe Indian insurance sector will grow by $28.65 billion and reach$76.54 billion by 2011 with a CAGR (compounded annual growth rate)of 12.44% and a growth of 59.82%.

5.5 Valuing the invaluable

Both under insurance and over insurance can often be attributed to thelack of proper understanding of the exact insurance needs for oneselfand the family, and the failure to spot and cover all liabilities properlyand adequately, or being over-conservative in this

regard.

Under Insurance

Under insurance, typically occurs when the existing financial liabilitiesand insurance needs are fully taken care of. In the event of theuntimely death of the only (or the main earning) member of thefamily, his financial liabilities would obviously fall on his dependents,leaving them in a state of financial distress that could threaten theirneed of sustenance.

Over Insurance


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Conversely, there are also instances where individuals indulge in lifeinsurance covers that far exceed in value than what is actuallyrequired. This is a classic case of over insurance, which leads to anunnecessarily higher premium payment, leaving you much poorer. Itresults in unnecessary expenditure that could otherwise be wisely

invested elsewhere.The need for an adequate insurance cover is never static and keepson varying with changes in the life stages and important events ofan individual. The table below provides an insight into the variouslife stages and events when life insurance cover usually requires arevision.Life stage Requirement for a life insurance cover

Start work life An individual usually does not have any dependent likespouse or children, thus allowing the need to take a lifecover. However, if your parents are dependents then yneed to take appropriate life cover on their behalf.

Moreover, you may have taken a loan to finance yourhigher education or professional studies or purchase acar. You should take a suitable insurance cover so thatthe event of your untimely death, the burden of EMIpayments does not pass to your parents or othermembers of the family.

Recently married Marriage requires a revision of your insurance needs. Tcan take a form of increase in life cover, taking intoconsiderations an expected increase in expenses andrepayment of liabilities, if any. Also, an insurance cove

on the life of the spouse, although for a lesser amount,can be considered. However, if both the husband and twife are working, the extent and value of life insurancecoverage on both lives will depend on their respectiveremuneration packages, personal liabilities, as well asextent of financial dependence on one another.

Birth of children The arrival of a child brings with it a great amount ofresponsibility. At this stage, a revision of insurance neeis based mainly on securing the financial needs of thechild up to the time he/she has grown up and settled inlife.

Purchase of ahouse, car, etc

Purchasing a house is a major financial decision not onon regard to the choice of property but also in regard tthe commitment for repayment of the loan availed tofinance the

property. Therefore, you should take out amortgage redemption plan to the extent ofthe outstanding loan amount.


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Purchasing a car through a vehicle loan, too,calls for a life cover of the borrower to theextent of the outstanding loan. The sameholds good for any other asset or event whichhas been financed by a loan.

The loan taken to set up or enhance yourprofession or business

Loan taken forshould be fully covered.

business/profession

5.6 Busting some insurance mythsWith a range of products flooding the market, people today aremore confused about insurance than ever. Here are a bagful ofmyths floating around and I have made an effort to bust a few ofthe significant ones.

.1. I dont want to put my hard-earned money into a pure termassurance plan if I dont even get back all the premiums paid onsurvival of the term.

. A pure term assurance plan is a risk mitigation tool and not aninvestment product. In the event of your untimely death during thepolicy term, your dependents get a sum assured to enable them tocontinue living their existing lifestyle, repay loan liabilities and meetlong-term financial goals. To achieve this, you only need to pay apremium amount that is a fraction of the sum assured. Moreoverunlike investments, where it takes years to build a suitable corpus, thesum assured on your insurance policy is payable, in the event of youruntimely death, from the date of its commencement..2. It would be enough if only the main breadwinner of the familytakes life insurance.

. While the main breadwinner should take out a life insurancepolicy on a priority basis; the other members of the family should alsobe covered. If the wife is working, then she should be covered to theextent of loss of income to the family in the event of her untimelydeath. On the other hand, even if she is not working, she should becovered, albeit for a smaller sum, because her contribution to thefamily, in form of household services, has monetary value..3. I will get back all my premiums when I surrender my endowment


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policy prematurely.. You couldnt be more wrong! You only get back the surrendervalue, which is based on the paid-up value is a proportion of theoriginal sum assured based on the number of years for whichpremium was paid against the total premium-paying years. The paid-

up value of the policy is also calculated and available as per the policyconditions..4. Insurance is primarily useful as a tax-saving instrument.. Again, this is a huge misconception! While you do get attractivetax breaks, the primary objective of insurance is risk mitigationsfollowed by wealth creation for the long term. Many people end uptaking this myth too seriously, particularly without considering thecosts and benefits involved.1.5. After three years, I can walk away from any ULIP, along with theaccrued investment or the fund value.

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Sure, you can do that! However, you need to remember that aULIP, at least in the initial years, is very different from amutual fund. While a mutual fund only charges o nominal fundmanagement charge every year, a ULIP is front loaded. That

means a significant chunk of your premium is allocated acrossvarious charges in the initial years of the policy and only thebalance gets invested in a fund of your choice. As thesecharges taper off and average over time, it makes sense tostay in a ULIP for at least 15 years. Therefore, if yourinvestment horizon is just 3-5 years, you better off in a mutualfund, and you can take out a separate term assurance plan forthe required risk cover.

6.Company Profile

Karvy Stock Broking Ltd.


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The karvy group was formed in 1983 at Hyderabad, India. KARVY, isa premier integrated financial services provider, and ranked amongthe top five in the country in all its business segments, services over

16 million individual investors in various capacities, and providesinvestor services to over 300 corporates, comprising the who is whoof Corporate India.

KARVY covers the entire spectrum of financial services such as Stockbroking, Depository Participants, Distribution of financial products likemutual funds, bonds, fixed deposit, Merchant Banking & CorporateFinance, Insurance Broking, Commodities Broking, Personal FinanceAdvisory Services, placement of equity, IPOs, among others. Karvy hasa professional management team and ranks among the best intechnology, operations, and more importantly, in research of various

industrial segments.Karvy computer share limited is Indias largest registrar and transfer

agent with a client base of nearly 500 blue chip corporate, managingover 2 crores accounts. Karvy stock brokers limited, member ofnational stock exchange of India and the Bombay stock exchange, rankamong the top five stock brokers in India with over six lakh activeaccount it ranks among the top five depositary participants in India,registered with NSDL and CSDL, karvy commorade, member of NCDEXand MCX ranks among the top three commodities brokers in thecountry. A Karvy insurance broker is registered as a broker with IRDAand ranks among the top five insurance agent in the country.

Registered with AMFI as a corporate agent, karvy is also among topmutual fund mobilize with over Rs 5000 crores under management.Karvy realty services, which started in 2006, have quickly establisheditself as a broker, who adds value in the realty sector. Karvy globaloffer niche off to off shoring services to U.S clients.

Karvy has 575 offices in 375 locations across India and overseas at

Dubai and New York. Over 9000 highly qualified people staff karvy.

Quality Policy

To achieve and retain leadership, Karvy shall aim forcomplete customer satisfaction, by combining its human and


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technological resources, to provide superior quality financialservices. In the process, Karvy will strive to exceedCustomer's expectations.

Quality Objectives

As per the Quality Policy, Karvy will :A Build in-house processes that will ensure transparent andharmonious relationships with its clients and investors to provide highquality of services.q Establish a partner relationship with its investor service agentsand vendors that will help in keeping up its commitments to thecustomers.c Provide high quality of work life for all its employees and equipthem with adequate knowledge & skills so as to respond to customer'sneeds.n Continue to uphold the values of honesty & integrity and strive to

establish unparalleled standards in business ethics.e Use state-of-the art information technology in developing newand innovative financial products and services to meet the changingneeds of investors and clients.n Strive to be a reliable source of value-added financial productsand services and constantly guide the individuals and institutions inmaking a judicious choice of same.m Strive to keep all stake-holders(shareholders, clients, investors,employees, suppliers and regulatory authorities) proud and satisfied.

AchievementsA

Among the top 5 stock brokers in India (4% of NSE volumes)A India's No. 1 Registrar & Securities Transfer AgentsI Among the top 3 Depository ParticipantsA Largest Network of Branches & Business Associates ISO 9002 certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations.

Insurance at Karvy

At karvy Insurance Broking Ltd. we provide both life and non-life

insurance products to retail individual, high net worth client and

corporate with the opening up of the insurance sector and with a large


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number of private players in the business, we are in a position to

provide tailor made policies for different segments of customers. In our

journey to emerge as a personal financial advisor, we will be better

positioned to leverage our relationship with the product providers and

place the requirements of our customers appropriately with the

product providers. With Indian market seeing a sea change, both in

term of investment pattern and attitude of investors, insurance is no

more seen as only a tax saving product but also as an investment

product. By setting up a separate entity we would be positioned to

provide the best of the products available in this business to our

customers.

Our wide national network, spanning the length and breadth

of India, further supports these advantages. Further, personalized

service is provided here by a dedicated team committed in giving

hassle-free service to the clients.

Now as I have made a comparative analysis between the products of

various insurance companies, so its necessary to know something

about those companies:-

7. Birla Sun Life Insurance

Birla sun life Insurance Company limited is a joint venture

between the Aditya Birla group, one of the largest business houses in

India and Sun Life Financial Inc., as leading international financial

services organization. The local knowledge of the Aditya Birla group

combined with the expertise of Sun Life Financial Inc., offer a

formidable protection for your future. The Aditya Birla group has a

turnover of Rs. 1,33,875 corers (as on 31st march 2008). It has over 100,000 employees

across all its units worldwide. It is led by its chairman Mr. Kumar Mangalam Birla. Some of its key companies are

Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial Inc. and its partners, have operations in key markets

worldwide. These include Canada, U.S, U.K, Hong Kong, the Philippines,

Japan, Indonesia, India, china and Bermuda. Sun Life Financial Inc. has

assets under management of over us$ 404.7 BILLION (as on 31st March,

2008). It is a leading performer in the life insurance market in Canada.


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Birla sun life insurance (BSLI) has been operating for 7 years. It hascontributed significantly to the growth and development of the lifeinsurance industry in India. It pioneered the launch of unit linked lifeinsurance plans amongst the private player in India. It pioneered thelaunch of united linked life insurance plans amongst the private

players in India. It was the first player in industry to sell its policiesthrough the Bancassurance route and through the internet. It was thefirst private sector player to introduce a pure term plan in the Indianmarket. BSLI has covered more than 2 million lives since it commencedoperations.

8. Life Insurance Corporation Of India

Mission"Explore and enhance the quality of life of people through financial

security by providing products and services of aspired attributes with

competitive returns, and by rendering resources for economic

development."

Vision


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"A trans-nationally competitive financial conglomerate of significance

to societies and Pride of India

Every day we wake up to the fact that more than 220 million lives are

part of our family called LIC.

We are humbled by the magnitude of the responsibility we carry andrealize that the lives that are associated with us are very valuableindeed.

Although this journey started five decades ago, we are still consciousof the fact that, while insurance may be a business for us, being partof millions of lives every day for the past 52 years has been a processcalled TRUST.

9. National Insurance Company Limited

National Insurance Company Limited was incorporated in 1906 with itsregistered office in Kolkata. Consequent to passing of the GeneralInsurance Business Nationalisation Act in 1972, 21 Foreign and 11Indian Companies were amalgamated with it and National became asubsidiary of General Insurance Corporation of India (GIC) which is fullyowned by the Government of India. After the notification of the GeneralInsurance Business (Nationalisation) Amendment Act, on 7th August2002, National has been de-linked from its holding company GIC andpresently operating as a Government of India undertaking.


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National Insurance Company Ltd (NIC) is one of the leading publicsector insurance companies of India, carrying out non life insurancebusiness. Headquartered in Kolkata, NIC's network of about 1000offices, manned by more than 16,000 skilled personnel, is spread overthe length and breadth of the country covering remote rural areas,

townships and metropolitan cities. NIC's foreign operations are carriedout from its branch offices in Nepal.

National transacts general insurance business of Fire, Marine andMiscellaneous insurance. The Company offers protection against awide range of risks to its customers. The Company is privileged tocater its services to almost every sector or industry in the IndianEconomy viz.

Banking, Telecom, Aviation, Shipping, Information Technology, Power,Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea,Automobile, Education, Environment, Space Research etc.

National Insurance is the second largest non life insurer in India havinga large market presence in Northern and Eastern India.

10. Tata AIG life-A New Look at Life

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a jointventure company, formed by the Tata Group and AmericanInternational Group, Inc.

The Tata Group holds 74 percent stake in the insurance venture withAIG holding the balance 26 percent. Tata AIG Life provides insurancesolutions to individuals and corporate. Tata AIG Life InsuranceCompany was licensed t operates in India on February 12, 2001 andstarted operations on April 1, 2001.


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Tata AIG Life offers a broad array of life insurance coverage to bothindividuals and groups, providing various types of add-ons and optionson basic life products to give consumers flexibility and choice.

11. Reliance General Insurance

Reliance General Insurance is the fastest growing private sectorgeneral insurance company in India with innovative product offeringsand customer service standards that are benchmarked to the bestinsurance practices in the world.

Reliance General Insurance offers a range of products for corporateand individual customers. With a focus on customer-centric products,multiple distribution channels and technology, reliance generalinsurance aims to increase its presence in the retail sector.

Reliance General Insurance is 100% subsidiary of reliance capitallimited, which is one of the Indias leading and fastest growing privatesector financial services companies. It ranks among the top threeprivate sector financial companies and banking groups in terms of networth.

Reliance capital has interests in asset management and mutual funds,life insurance, general insurance, private equity and proprietaryinvestments, stock broking and other activities in financial services.Reliance capital is a part of the Reliance Anil Dhirubhai AmbaniGroup.

12. RESEARCH METHODOLOGY

12.1 Sources

The success of any Insurance company depends on how well they are

able to align with the objectives and needs of individual customers,

and is able to provide proper solutions to them. To know how a

company is performing and whether they have any cutting edge

advantage over competitors, an intensive study of the market is


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absolutely necessary.

In order to understand the performance of different companies in the

market, we did two types of surveys, primary survey and secondary

survey.

Primary survey

Primary survey included:-P

Visiting websites and fixing appointments withtheir agents.t Creation of database of prospective clients fromdifferent sources calling them up to fix appointmentand then visiting them.a

Prepare a questionnaire for the market survey .

Meeting different people to know their views,

perception and

preference

of different insurance

companies.

Secondary survey

Secondary survey included of consulting books, magazines, journals,

internet and also

taking reference from:-

library.Internet.karvy the finapolis.

12.2 Methodology


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We would go in for a qualitative research as our objective is to judge

the perception and preference of different insurance products. The

research would be done from primary data.

Sample Design

Target population: The target population for the research would be

people who are in the age group beyond 40 and age group between

25 to 40.We targeted this group of population because these

populations are the potential customers of insurance.p

Sampling Frame:The research would be conducted in Kolkata.The survey has been conducted among the potential customers ofkarvy from different sectors as karvy deals in many sectors ofbusiness.b Sampling Technique:The sampling technique that is adopted isthe simple random sampling wherein every element in the targetpopulation has an equal chance or probability of getting selected in thesample. That means every unit of the population who is more is in theabove mentioned age group, have an equal chance of getting selected

Sample Size:I did a survey among 100 people by taking twocategories in consideration of 50 each; that is

1.) Age group beyond 40

2) Age group between 25 to 40

Data Collection: The research would be conducted from thesource of primary data collection. Secondary data would help us

in knowing the trends prevailing in the insurance market and

would help us in analyzing and interpretation of the primary

data.

13. COMPARATIVE ANALYSIS


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Birla sun life insurance

Name of the scheme Saral jeevan plan

Purpose BSLI saral jeevan plan comes with a bouquetof benefits, which fulfill needs of life cover andinvestment at an affordable rate.

Type of policy Unit linked endowment plan

Returns and added benefits1.1. An easy and simple plan2.2. Earn efficient returns3.3. Match your risk profile at every stage4.4. Death benefits with a plus, that is, sumassured plus the fund value.

5.5. Unmatched liquidity6.6. At the end of policy term you get fund value.7.7. The policy can be surrendered at any timeduring the tenure of the

Life Insurance Corporation Of India

Name of the scheme Jeevan saral

Purpose jeevan saral plan comes with a bouquet ofbenefits, which fulfill needs of life cover.

Type Of Policy Traditional plan


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Returns and added benefits1.1. Maturity benefit is total premium + bonus(approx Rs 50/thousand)2.2. Death benefit is 250 times of monthly premium3.3. The policy can be surrendered at any timeduring the tenure of the policy subject to surrendercharge. The charge will be zero after 4th policy year.

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policy subject to surrender charge. The chargewill be zero after th policy year.

Payment of premium Pay the premiums on anannual, semi-annual, quarterly or monthly mode.

Eligibility 18 to 55 years of age

Term of maturity There is an option of three policyterms 10 years, 15 years and 20 years.

Tax benefit Avail of tax benefit under section 80Cand section 10(10 D) of the Income Tax Act, 1961.Payment of premium Pay the premiums on anannual, semi-annual, quarterly or monthly mode

Eligibility 18 to 70 years of age

Term of maturity There is an option of three policy

terms 10 years, 15 years and 20 years.

Tax benefit Avail of tax benefit under section 80Cand section 10(10 D) of the Income Tax Act, 1961.


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National Insurance

Company ltd.

Name of the scheme The National health plan

Purpose To provide financial support , spiraling cost

of health care, protect your savings from unforeseencircumstances

Type of policy Family floater coverage available up to

6 members of a family including dependent children

under the age of 25 years and dependent parents

below 65years.

Benefits1.1. Covers pre-existing diseases (excludingchemotherapy, radiotherapy and dialysis.)2.2. Maternity coverage (nine months waiting

Reliance General

Insurance

Name of the scheme Reliance health wise policy

Purpose To provide financial support, spiraling cost of


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health care, protect your savings from unforeseencircumstances.

Type of policy Covers your family on a floater basis

applicable to a maximum of four persons you, your

spouse and two dependent children under the age of

21 years.

Benefits

1.1. Covers pre-existing diseases after two/four

continuous renewals.2.2. Day care treatment expenses covered3.3. Cashless facility

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4. Pre-post


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Pie-chart


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changing rapidly, people with a need of more and better returns are

opting for private companies, and this can be justified by the

increasing market share of private companies in the Indian

insurance sector.

There are various ways in which private companies are found muchmore lucrative than public companies and the facts which support this

statement are as follows:-

1.1. Versatility of products.2.2. Efficient fund managers.3.3. Better customer services.4.4. More returns.5.5. Regular follow up.6.6. Quicker settlement

16. Suggestions and recommendation

People are not aware of the life insurance. Most of them know only

one company which provides life insurance i.e. LIC. So awareness

campaign should be run so that people are aware of different life

insurance companies in India.

People should be educated about the different types of products orplans offered by the life insurance companies. Most of them dont

know much of the different types of plan or products.

It was felt that most of the people took life for tax savings or just to

cover up their life, not as an investment avenue. Life Insurance

companies need to advertise in such a manner that people start

investing in life insurance like the way they invest in the stock

market

Now at the time of global turmoil insurance company had to hold on

to the policyholders trust which might lead the company to the path

of success


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Insurance companies should try to adopt different strategies to

market their products or plan. Companies should not primarily focus

on the agents for their business.

17. Conclusion

Insurance is one sector that witnessed continuous growth owing to the

reforms in 2000. The insurance sector is likely to attain a size of Rs.

2,00,000 crore ($ 51.2 billion) in 2009-10. In life insurance, the

business grew by 23.3% to Rs. 93,000 crore in 2007-08

(Source:Assocham). The sector alone employs close to 30 lakh people

(including agents and direct employees).

A well-functioning insurance market plays an important role in

economic development and financial stability of developing economies

such as Indias. First, it inculcates and encourages the habit of saving.

Second, it provides a safety net to rural and urban enterprise andproductive individuals.

The life insurance market in India is on a growth path. In spite of this,


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the country lags far behind the others in awareness about life

insurance. The challenge is to spread awareness about life insurance

and it true benefits. The industry has to convince people to park their

hard earned money in long-term insurance and not just look at it as a

tax saving instrument.

18. Limitations

1.1. Useful Financial insights are not easily available.2.2. Due to time constraint sufficient research on all the investmenttools is difficult.

3.3. The survey sample is not very large for analysis4.4. Properly convincing people to invest in insurance products ischallenging.5.5. Due to recession there is liquidity crunch in the market.6.6. There might have been tendencies among the respondents toamplify or filter

.their responses under the

testing conditions .

7. The research is confined to Kolkata and does not necessarily

shows a pattern applicable to other parts of the country.


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Questionnaire

1.1. Sex :2.2. Age :3.3. Occupation :4.4. Income :5.5. Marital status :6.6. No. of family members :7.7. Mobile no. :8.8. Are you insured yes/no9.9. If yes , then with life/ non-life/both 10.In which company________________ 11.How you rank your insurance company ?

|----------------|-----------------------|------------------|-----------------------|

excellent very good good fair bad1.12. Who suggested you to take the Insurance Policy? FriendsFamily Agents Others, please specify2.13. In which of the insurance plan have you invested the money?Term Plan Endowment plan Money Back PlanChildren Plan Pension plan ULIP (Unit Linked InsurancePlan)

Health Plan Others please

specify_______________________________

1.14. Rank the insurance co. according to your preference: a) LIC/GIC_____ b) BIRLA _____ c) TATA AIG _____ d) AVIVA _____ e) RELIANCE_____ f) _______ _____2.15. Where do government insurance co. need to improve ? [ ] a)Service b) Return c) Information d) Varity e) Easy claim3.16. Reason behind the preference of your insurance company?


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20. References:2

The monthly fact sheet available from the company for studyingthe features of products.t Online information from the various websites namely:-

www.lic.co.in

www.wikipedia.com

www.tata-aig-life.com

www.birlasunlife.com

www.irdaindia.org

www.google.com

www.wikipedia.com
http://www.lic.co.in/http://www.wikipedia.com/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.irdaindia.org/http://www.google.com/http://www.wikipedia.com/http://www.lic.co.in/http://www.wikipedia.com/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.irdaindia.org/http://www.google.com/http://www.wikipedia.com/

NITIN AGNIHOTRI

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