INVESTORS PERCEPTION TOWARDS THE PURCHASE OF INSURANCE PRODUCTS

A

Project Report

On

TATA AIA LIFE INSURANCE

INVESTORS PERCEPTION TOWARDS THE PURCHASE OF INSURANCE PPRODUCTS

In Partial fulfillment of the masters Program in Business Administration, GGSIP University, New Delhi, India

HMR Institute of technology and management

New Delhi

Submitted by:- DEEPAK TALERJA

Enrolment no:-07013303913

Institution Guide: - Mrs. Savita ruhlan

DECLARATION

I hereby declare that all the information that have been collected, analyzed and known for the project is entirely authentic possession of mine. I would like to category mention that the work here is not purchased nor acquired by any other unfair means. The data and information existing in this report are accurate and update to the current data, to the best of my knowledge. However for the purpose of the project, information already compiled in many sources has been referred.

07013303913

Deepak TalerjaACKNOWLEDGMENTThrough this acknowledgement I would like to express my sincere gratitude to all those people who have been associated with this Project Tata AIA Life Insurance" and have helped me with it and made it a worthwhile experience.

I would like to express my gratitude and indebtedness to Mr. Aarib, for his valuable advice and guidance without which this project would not have been possible. I would like to thank all the staff members of HMR Institute of Technology and Management for their kind co-operation. Deepak Talerja

07013303913

MBA 2nd Year

EXECUTIVE SUMMARY

Life insurance business is booming in India. The business of life insurance is related to the protection of the economic value of human life and this project is just offered to draw the attention of individuals, who are interested in life insurance business running by insurance regulatory Development Authority (IRDA).

Insurance industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakh, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.

This project is like just an extract of my rigorous work in Life Insurance Companies, and I hope the beneficiaries decision regarding recruitment of advice; or, all information and data. This responsibility really in hence my effective communication and convincing power and such quality will help me in near future for having decision making.

TABLE OF CONTENTS

Contents

CHAPTER 1

INTRODUCTION

1.1 OBJECTIVES OF THE STUDY

1.2 SCOPE OF THE STUDY

1.3 RESEARCH METHODOLOGY

CHAPTER 2

REVIEW OF LITERATURE.CHAPTER 3

INDUSTRY PROFILE

3.1 LIFE INSURANCE COMPANIES

CHAPTER 4

COMPANY PROFILE

4.1 VISION, MISSION AND VALUES

4.2PURPOSE..4.3 ORGANIZATIONAL STRUCTURE4.3 PRODUCTS OF TATA AIA

4.4 SWOT ANALYSIS OF TATA AIA LIFE

4.5 COMPETITOR ANALYSIS:

CHAPTER 5

DATA ANALYSIS

CHAPTER 6

FINDINGS, SUGGESITIONS AND CONCLUSION

6.1. FINDINGS

6.2 SUGGESITIONS

6.3 CONCLUSION

ANNEXURE.

BIBLIOGRAPHY

CHAPTER I

INTRODUCTION

In one form or another, every individual owninsurance product. Whether its auto, medical, liability, disability or life, insurance serves as an excellent risk-management and wealth-preservation tool. Having the right kind of insurance is a critical component of any good financial plan. While most of us own insurance, many of us don't understand what it is or how it works. In this process there is a need to understand the basics of insurance and how it works.

Meaning of Insurance

An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Or a thing providing protection against a possible eventuality.

Need for insuranceToday, there are many investment options before a person to choose. In modern days investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing the hard-earned money to the individuals. Life insurance is a unique investment that helps the individuals to meet their dual needs - saving for life's important goals, and protecting your assets. The individuals in this context have unique benefits of life insurance they are explained as follows:

How Insurance helps you:

Maintain your current standard of living if you become disabled or have a critical illness

Cover health care costs like prescription drugs, dental care, vision care and other health-related items

Provide for your family in the event of a death

Run a small business or family farm by managing the risks of ownership

Take vacations without worrying about flight cancellations or other potential issues

Own a home, because mortgage lenders need to know your home is protected

Drive vehicles, because few people could afford the repairs, health care costs and legal expenses associated with collisions and injuries without coverage

Characteristicsof insurance

Sharing of risks

Cooperative device

Evaluation of risk

Payment on happening of a special event

The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of people insured against similar risk.

Insurance is a plan, which spreads the risk and losses of few people among a large number of people.13

The insurance is a plan in which the insured transfers his risk on the insurer.

Insurance isa legal contract which isbased upon certain principles of insurance which includes utmost good faith, insurable interest, contribution, indemnity, causes proximal , subrogation, etc.

The scope of insurance is much wider and extensive.

Functions ofinsurance:Primary functions:1.Provide protection: - Insurance cannot check the happening of the risk, but can provide for the losses of risk.2.Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others.3.Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk.4.Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty.Secondary functions:1.Preventionoflosses:-Insurancecautionsbusinessmanandindividuals toadoptsuitabledevicetopreventunfortunateconsequencesofriskbyobservingsafetyinstructions.

2.Small capital to cover large risks: - Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty.

3.Contributes towards development of larger industries.Other Function:Means of savings and investment :Insurance companies are business houses. Theproduct they sell isfinancial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends.

1.1 OBJECTIVES OF THE STUDY To understand the savings potentiality of the people and their preference of having insurance.

To know about the various Investment alternatives that is mostly preferred by the people.

To find out the important criteria that influences the people to think about before investing in a life insurance policy.

To understand the occupation impact on investment in insurance.

To find out the awareness of Tata AIA life insurance pvt. Ltd. among the people.

1.2 SCOPE OF THE STUDY

The result of this research would help the company to have a better understanding about the consumers perception towards life insurance.

The study helps the company by creating awareness about the consumers of different ages and income levels.

The study also enables the company to focus the consumers preferences and expectations on the product which they offer.

1.3 RESEARCH METHODOLOGY

Methodology is a systematic way of solving a problem it includes the research methods for solving a problem it includes the research methods for solving the problem.

Type of research - Descriptive research

Data source -Primary and Secondary data

Data collection tools Questionnaires

Sampling Convenience sampling

Sample size -50

SAMPLE DESIGN

The target population of the study consists of various respondents of various places. This survey was done by collecting the data from the respondents.

SAMPLE SIZEAfter due consultation with the company supervisor as well as with the college guide, also keeping in mind the requirements of the company for the research, the sample size that was found to be 50 prospect investors who were involved in the survey.

SAMPLING TECHNIQUE

The sampling technique that adapted to conduct the survey was Convenient Random sampling

DATA SOURCE

The task of data collection begins after a research problem has been defined. In this study data was collected through both primary and secondary data source.

A. PRIMARY DATAA primary data is a data, which is collected for gathering information first time and to analyze the problem. In this study the primary data was collected among the investors using questionnaire.

B. SECONDARY DATASecondary data consist of information that already exists somewhere, having been collected for some other purpose. In this study secondary data was collected from company websites, magazines and brochures.

STATISTICAL TOOLS

Simple percentage analysis, ranking method and Chi square analysis are made at various using the statistical tool.

CHI SQUARE TEST

Chi Square is a statistical measure used in the context of sampling analysis for comparing the variance to a theoretical variance. In order to judge the significance of association between two attributes, we make use of chi square test by finding the values of chi square using the chi square distribution.

SyntaxCHITEST (actual range, expected range)

Actual range is the range of data that contains observations to test against expected values.

Expected rangeis the range of data that contains the ratio of the product of row totals and column totals to the grand total.

LIMITATIONS OF THE RESEARCH

The following limitations can be pointed out from the research conducted:

The sample size chosen for the questionnaire was only 50 and that may not represent the true picture of the consumer perception about the Life Insurance sector

The selection of people for the questionnaire was done on the basis of convenient random sampling; so, there were certain cases in which the people selected did not have any life insurance policy, so they could not give any positive feedback regarding the important criteria to be considered before taking a life insurance policy

One of the important criteria that were selected by the respondents which they consider before taking an insurance policy was Company Image, but there was no parameter available to compare criteria like this between the companies.CHAPTER 2

LITREATURE REVIEW Vikas GAUTAM and Mukund KUMAR (2012) made an attempt to illustrate the attitudes of Indian consumers towards the insurance services. The study has been made by collecting the responses of consumers through structured questionnaire on five point Likert scale. A total 377 responses were collected to assess the level of awareness about the insurance services and their attitude towards insurance services. Findings of the research show that basic socio demographic and economic variables have significant impact on consumers attitudes towards insurance services in Indian scenario. The findings of the present study may act as input for the insurance companies in Indian market to frame marketing strategies based on socio demographic and economic variables.

Carin Huber and Tobias Schlager (2011) they discussed that Real world decision making under risk and uncertainty presents one of the most challenging areas of research nowadays. To date, only little is known about the underlying attitudes that present the foundation of decision-making. We develop a causal model examining the antecedents of consumers' purchase behavior in the context of long-term savings, particularly unit-linked life insurance products. Our experimental approach (n = 929) builds on two theoretical foundations: the risk as analysis and risk as feeling perspective (Loewenstein et al. 2001; Slovic et al. 2004), which we apply to shed further light on the formation of product perceptions. Our research identifies a pivotal role of risk avoidance and uncertainty avoidance. Moreover, we complement our findings by investigating the conditions under which the two components exert their full influence on purchase behavior. The results indicate moderating effects of trust in the industry, product guarantees, as well as expertise, which underline the risk as feeling and risk as analysis perspective.PANKAJ BIHANI; AMALESH BHOWAL(2013) say that Life Insurance Industry is in development phase and daily new developments are going on with respect to Product and services. Today the biggest challenge the Life Insurance companies are facing is the competition in all aspects, so the Gap study between the expectation and Experience is of vital importance. The present study has been conducted with a view to understand the difference between the Expected and Experienced CUSTOMER-SOLUTION i.e. PRODUCT dimensions of marketing mix with respect to Life Insurance in Assam. The study is conducted based on the primary data collected from Sibsagar town - the districts headquarter of Sivasagar district of Assam through questionnaire. Given the Empirical Research methods and specially designed Scaling technique, the study revealed that the difference between the degree of customer solution expected from the insurance and the degree of customer solution experienced is statistically not significant. The most interesting finding of the study was the degree of customer solution experienced is more than degree of customer solution expected.THEORETICAL ASPECTS RELATED TO TOPIC OF THE STUDY

This chapter deals with some key words which are focused in this study. It includes the following:

INVESTMENT:

An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.SAVINGS:

According to Keynesian economics, the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time.INVESTORS PERCEPTION:

A conscious or unconscious state of awareness or understanding of one's surroundings that exists within the mind and formed through sensory signals stimulated by current conditions, expectations and past memories. The confluence of complex sensory inputs often times creates a perception that is unreliable or unverifiable. In other words, it may not be based in reality.

FIXED DEPOSIT:

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.STOCK MARKET:

The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.LIFE INSURANCE:

A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.CHILD INSURANCE:

Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected costs of a childs funeral or burial and to secure inexpensive and guaranteed insurance for the lifetime of the child. It offers guaranteed growth of cash value, which some carriers allow to be withdrawn (collapsing the policy) when the child is in their early twenties. Child life insurance policies typically offer the owner the option to purchase, or in some cases obtain additional guaranteed insurance when the child reaches maturity.

INCOME INSURANCE:

An insurance product that provides supplementary income in the event of an illness or accident resulting in a disability that prevents the insured from working at their regular employment.Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertaineventincaseofgeneralinsurance.

The party bearing the risk is known as the 'insurer' or 'assurer' and the party whose risk is coveredisknownasthe'insured'or'assured'.

Concept of Insurance / How Insurance Works

The concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds. Contribution to the pool is made by a group of people sharing common risks and collected by the insurance companiesintheformofpremiums.

Table B: Illustration to understand how insurance actually works:Example 1Example 2

SUPPOSE Houses in a village = 1000

Value of 1 House = Rs. 40,000/-

Houses burning in a yr = 5

Total annual loss due to fire = Rs. 2,00,000/-

Contribution of each house owner = Rs. 300/-SUPPOSE Number of Persons = 5000

Age and Physical condition = 50 years & Healthy

Number of persons dying in a yr = 50

Economic value of loss suffered by family of each dying person = Rs. 1,00,000/-

Total annual loss due to deaths = Rs. 50,00,000/-

Contribution per person = Rs. 1,200/-

UNDERLYING ASSUMPTIONAll 1000 house owners are exposed to a common risk, i.e. fireUNDERLYING ASSUMPTIONAll 5000 persons are exposed to common risk, i.e. death

PROCEDUREAll owners contribute Rs. 300/- each as premium to the pool of funds

Total value of the fund = Rs. 3,00,000 (i.e. 1000 houses * Rs. 300)

5 houses get burnt during the year

Insurance company pays Rs. 40,000/- out of the pool to all 5 house owners whose house got burntPROCEDUREEverybody contributes Rs. 1200/- each as premium to the pool of funds

Total value of the fund = Rs. 60,00,000 (i.e. 5000 persons * Rs. 1,200)

50 persons die in a year on an average

Insurance company pays Rs. 1,00,000/- out of the pool to the family members of all 50 persons dying in a year

EFFECT OF INSURANCERisk of 5 house owners is spread over 1000 house owners in the village, thus reducing the burden on any one of the owners.EFFECT OF INSURANCERisk of 50 persons is spread over 5000 people, thus reducing the burden on any one person.

CHAPTER 3INDUSTRY PROFILEThis chapter mainly focuses on the profile of the industry as a whole and the industry which is selected for this study in detail

TATA AIA Life

In India, life insurance has been an integral part of most people's lives. For some, it is an investment avenue while others see it as a safety net to provide for their family's future in case of untimely death.

In India, life insurance has been an integral part of most people's lives. For some, it is an investment avenue while others see it as a safety net to provide for their family's future in case of untimely death. In urban areas, life insurance is almost considered a given, with people taking multiple policies at various stages of their life. Initial steps:1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta.

This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.First regulation:In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.Nationalization happens:The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.Sector reopened:An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies-245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.Basic recommendations:The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies should be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners.IRDA constituted:Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.Regulatory regime:After the release of the Malhotra Committee report in 1994, changes in the insurance industry appeared imminent. Unfortunately, changes in the central government slowed down the process. The dramatic climax came on 7 December 1999 when the government finally passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation in 1972. The authority created by the Act is called the Insurance Regulatory and Development Authority (IRDA). Table 5.1 below summarizes some of the milestones in Indias insurance regulation.Table A: Milestones of insurance regulations in the 20th CenturyYearSignificant regulatory event

1912First piece of insurance regulation promulgated Indian Life Insurance

Company Act, 1912

1928Promulgation of the Indian Insurance Companies Act

1938Insurance Act 1938 introduced, the first comprehensive legislation to regulate

insurance business in India

1956Nationalization of life insurance business in India

1972Nationalization of general insurance business in India

1993Setting-up of the Malhotra Committee

1994Recommendations of Malhotra Committee released

1995Setting-up of Mukherjee Committee

1996Setting-up of an (interim) Insurance Regulatory Authority (IRA)

1997Mukherjee Committee Report submitted but not made public

1997The Government gives greater autonomy to LIC, GIC and its subsidiaries with

regard to the restructuring of boards and flexibility in investment norms

aimed at channelling funds to the infrastructure sector

1998The cabinet decides to allow 40% foreign equity in private insurance

companies 26% to foreign companies and 14% to non-resident

Indians (NRIs), overseas corporate bodies (OCBs) and foreign institutional

investors (FIIs)

1999The Standing Committee headed by MuraliDeora decides that foreign equity

in private insurance should be limited to 26%. The IRA Act was renamed

the Insurance Regulatory and Development Authority (IRDA) Act

1999Cabinet clears IRDA Act

2000President gives assent to the IRDA Act

Features of the 1999 IRDA Act :The Insurance Regulatory and Development Act of 1999 set out to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalization) Act, 1972. The Act effectively reinstituted the Insurance Act of 1938 with (marginal) modifications. Whatever was not explicitly mentioned in the 1999 Act referred back to the 1938 Act? The salient features of the 1999 IRDA Act are discussed below.19LicensingThe IRDA Act, 1999, sets out details of registration of an insurance company along with renewal requirements. The minimum capital requirement for direct non-life and life insurance business is 100 crores (ie INR 1 billion). The IRDA regulates the entry and exit of players, capital norms, and maintains a strict watch on the equity and solvency situation of insurers. Should an application be rejected, the applicant will have to wait for a minimum of two years to make another proposal, which will have to be with a new set of promoters and for a different class of business.

For renewal, it stipulates a fee of one-fifth of one percent of total gross premiums written direct by an insurer in India during the financial year preceding the renewal year. It also seeks to give a detailed background for each of the following key personnel: chief executive, chief marketing officer, appointed actuary, chief investment officer, chief of internal audit and chief finance officer. Details of the sales force, activities in rural business and projected values of each line of business are also required. Further, the Act sets out the reinsurance requirement for (general) insurance business.

For all general insurance a compulsory cession of 20%, regardless of the line of business, to the General Insurance Corporation (the designated national reinsurer) is stipulated.

Currently, India allows foreign insurers to enter the market in the form of a joint venture with a local partner, while holding no more than 26% of the companys shares Compared to the other regional markets, India has more stringent restrictions on foreign access.The role of IRDAIRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders' interests. Today there are 23 life insurance companies operating in the country.Growth rateThe insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country's GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development while strengthening risk taking ability of the country.

3.1 LIFE INSURANCE COMPANIES

Insurance companies are owned by both public and private sectorsPublic Sector Life Insurance Corporation of India

Employee's State Insurance Corporation

Private Sector (entered only after 2002)

AEGON Religare Life Insurance

Edelweiss Tokio Life Insurance Co. Ltd

Aviva India

Shriram Life Insurance

Bajaj Allianz Life Insurance

Bharti AXA Life Insurance Co Ltd

Birla Sun Life Insurance

Canara HSBC Oriental Bank of Commerce Life Insurance

Star Union Dai-ichi Life Insurance

DHFL Pramerica Life Insurance

Future Generali Life Insurance Co Ltd

HDFC Standard Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited

IDBI Federal Life Insurance

India First Life Insurance Company

Exide Life Insurance

Kotak Life Insurance

Max Life Insurance

PNB MetLife India Life Insurance

Reliance Life Insurance Company Limited

Sahara Life Insurance

SBI Life Insurance Ltd.

TATA AIA Life Insurance

CHAPTER 4COMPANY PROFILEThis is the official LinkedIn page of Tata AIA Life Insurance Company Limited (Tata AIA Life), which is a joint venture company, formed by Tata Sons and AIA Group Limited (AIA). Tata AIA Life combines Tatas pre-eminent leadership position in India and AIAs presence as the largest, independent listed pan-Asia life insurance group in the world spanning 17 markets in Asia Pacific. Tata Sons holds a majority stake (74 per cent) in the company and AIA holds 26 per cent through an AIA Group company. Tata AIA Life Insurance Company Limited was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.

The Tata group comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries.

The total revenue of Tata companies, taken together, was $100.09 billion (around Rs475,721 crore) in 2011-12, with 58 percent of this coming from business outside India. Tata companies employover450,000peopleworldwide.

AIA Group Limited and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 17 markets in Asia-Pacific wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and a representative office in Myanmar.

The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets.Tata Group has its prominent presence in seven business sectors which include- energy, service, materials, information technology, engineering, consumer products and chemicals. Its breadth of operational areas include 80 countries across six continents, and Tatas companies export their products and services to 85 countries.

Being the largest independent pan-Asian life insurance group, AIA Group Limited is operating in Asia-Pacific wholly - owned branches set in 17 markets. It has its subsidiaries in Thailand, Taiwan, Australia, Hong Konf, China, Korea, Singapore, Malaysia, Indonesia, New Zealand, Macau, Philippines, Brunei, 97% of subsidiary is in Sri Lanka, 26% in India and a representative office in Myanmar.

TATA AIA Life Insurance Company is popularly known as Tata AIA life and is a joint venture formed by Tata sons and AIA group, operating from April 1, 2001. This company is composed of Tata's pre-eminent leadership position in India and AIA's presence as the largest, independent listed pan-Asia life insurance group in the world. Where Tata Sons holds 74% of the stake, AIA holds the rest over 26%.

Tata AIA Life Life Insurance - Product PortfolioTata AIA Life Term Plans:These plan provide your family financial independence I case of an eventuality

Tata AIA Life Raksha

Tata AIA Life Life PlusTata AIA Life ULIP Plans:These areunit linked insurance planswhich give you flexibility to suit your needs and priorities and help you to achieve your financial goals. This plan also provides the much needed life insurance protection in case of any unfortunate event.Regular Premium Tata AIA Life Insurance InvestAssure Gold Supreme

Tata AIA Life Insurance InvestAssure Maximizer

Tata AIA Life Insurance Swarna Bhavishya

Tata AIA Life Insurance Swarna Pratigya

Tata AIA Life Lakshya Supreme

Tata AIA Life Insurance InvestAssure Apex Supreme

Tata AIA Life InvestAssure Flexi SupremeTata AIA Life Pension Plans:Pension planshelp you accumulate wealth for your old age so that you have worry free golden years

Tata AIA Life Assure Golden Years

Tata AIA Life Easy RetireTata AIA Life Child Plans:Tata AIA policies help you plan ahead for your childs future.

Tata AIA Life United Ujjwal Bhavishya Supreme

Tata AIA Life Insurance Gyan Kosh

Tata AIA Life StarKid

Tata AIA Life Assure Career Builder

Tata AIA Life Assure Educare

Tata AIA Life Mahalife Gold

Tata AIA Life Assure 10/ 20/ 30 years Security & Growth

Tata AIA Life Assure 21 years Money Saver PlanTata AIA Life Traditional Plans:These are low riskinvestment planswhich provides guaranteed amount on maturity and help you plan for all your financial needs.

Endowment Tata AIA Life Maha Guarantee Flexi

Tata AIA Life Maha Guarantee

Tata AIA Life Assure 10/ 20/ 30 years Security & Growth

Tata AIA Life Assure Golden Years

Tata AIA Life Shubh LifeMoney Back Tata AIA Life Assure 21 years Money Saver PlanTata AIA Life Health Insurance Plans:Tata AIA life Plans help you plan for you health eventualities

Tata AIA Life Health First

Tata AIA Life Health Protector

Tata AIA Life Health Investor

Tata AIA Life HospiCashback

Compare all Tata AIA Life life insurance plans from other life insurance companies in India to get the best insurance plan that suits you most.

Tata AIA Life Distribution Network:Since its inception in Tata AIA life insurance has come a long way in penetrating Indian market.

Tata AIA Life has pan India presence with 1000 offices across the country. Tata AIA Life products are also available online through their website and insurance aggregators.

Tata AIA Life Insurance introduces iRaksha Supreme, one of the most competitive online term insurance plans available in the market and probably the only one providing protection up to 80 years of age.4.1 VISION, MISSION AND VALUES

VisionTo be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.Mission To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner.

To be transparent in the way we deal with our customers and to act with integrity.

To invest in and build quality human capital in order to achieve our mission.

Values Transparency: Crystal Clear communication to our partners and stakeholders

Value to Customers: A product and service offering in which customersperceive value

Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners

Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and thecommunity at large

4.2 PurposeAt the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate.

Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.

CorevaluesTatahas always beenvalues-driven. These values continue to directthegrowth and business of Tata companies. The five core Tata values underpinning the way we do business are:

Integrity:We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding:We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence:We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.

Unity:We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility:We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

COMPETITORS OF TATA AIA LIFE INSURANCE CO. LTD

1. AEGON Religare Life Insurance

2. Aviva India

3. Shriram Life Insurance

4. Bajaj Allianz Life Insurance5. Bharti AXA Life Insurance Co Ltd

6. Birla Sun Life Insurance

7. Canara HSBC Oriental Bank of Commerce Life Insurance

8. Star Union Dai-ichi Life Insurance9. DLF Pramerica Life Insurance

10. Edelweiss Tokio Life Insurance Co. Ltd

11. Future Generali Life Insurance Co Ltd

12. HDFC Standard Life Insurance Company Limited13. ICICI Prudential14. IDBI Federal Life Insurance15. IndiaFirst Life Insurance Company16. ING Vysya Life Insurance

17. Kotak Life Insurance18. Max Life Insurance

19. PNB MetLife India Life Insurance

20. Reliance Life Insurance Company Limited

21. Sahara Life Insurance

22. SBI Life Insurance Company Limited23. Oriental insurance company

24. L&T general insurance company

25. Universal sampo general insurance company

26. National insurance company limited

27. Apollo Munich health insurance company

28. United India insurance company limited

29. Export credit and guarantee corporation of India Limited4.3 ORGANIZATION STRUCTURE

4.4 PRODUCTS OF TATA AIAAt TATA AIA, its our constant endeavor to create innovations that create value for our customers. These innovations are brought to life through our wide array of products that fit the varying financial and investment needs at different stages of life. LIFESURANCE

CHILDSURANCE INCOMESURANCE TERMSURANCE WEALTHSURANCE LOANSURANCE MICROSURANCELIFESURANCE:

Often, the first step towards a long and arduous journey is the toughest. However, once you have taken that first stride, the rest of the journey seems easier and more enjoyable. With your investments, it is the same approach that will ensure you build the right corpus to fulfil your dreams for yourself and your family start small, save big!HOW IT WORKS

CHILDSURANCE:

Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a performing artist, or dreams of being an entrepreneur, the TATA AIA Childsurance Dream builder Insurance Plan will keep you future-ready against both, changing dreams and lifes twists. It allows you to create build and manage wealth by providing several choices and great flexibility so that your plan meets your specific needs. However, what makes Childsurance a must-have for any parent who is looking to make their childs future shock-proof is its powerful insurance benefits. Childsurance allows you to protect your child plan with triple insurance benefits so that your wealth-building efforts remain unaffected by unforeseen events and your childs future goals can be achieved without any hindrance.HOW IT WORKS

This second illustration below explains how the product works for a limited premium policy with a policy term of 20 years

INCOMESURANCE:

TATA AIA Incomesurance Endowment and Money Back Plan is loaded with lots of benefits which ensure that you get Guaranteed Annual Payout along with insurance protection which will help you to reach you goals with full confidence. Incomesurance Plan is very flexible and allows you to customise your Plan as per your individual and familys future requirements. Moreover it also allows you to choose Premium Payment Period, Payout Period, Payout Options and more.HOW IT WORKSAgePayoutAgePayout18-30

138%

47

131%

31-36

137%

48

131%

37-39

136%

49

130%

40

135%

50

130%

41

135%

51

130%

42

134%

52

128%

43

134%

53

128%

44

133%

54

127%

45

133%

55

126%

46

132%

Tata AIA

Parent CompanyTata Sons & AIA group limited

CategoryNBFC

SectorInsurance and finance

Tagline/ SloganA new look at life; With you always

USPIts a JV between two of the Biggest brands

STP

SegmentPersonal and Group Insurance

Target GroupUrban and Rural Investors

PositioningComplete Insurance and financial solutions

SWOT Analysis

Strength1. Customised Insurance Solutions for customers2. State of Art I.T Infrastructure3. Products with emphasis on social aspects

4. Global Exposure with Expertise in Asian Markets in over 15 countries

Weakness1. Less penetration in rural areas

2. Small Agent Strength as compared to competitors3. Cases of fraud agents have caused problems to the brand

Opportunity1. Growing rural market2. Earning Urban Youth

Threats1. Global economic crisis2. Entry of new NBFCs in the sector

4.5 COMPETITOR ANALYSIS:

Competitor analysis in marketing and strategic management is a judgment of strength and weakness of the competitors. Companies generally do this analysis to understand the strength and weakness of their current and potential competitors. This analysis provides both offensive and defensive strategy to identify both opportunity and threats. TATA AIA Life Insurance is one of emerging insurance company. It is one of the few companies that have shown rapid growth since the day of its inception. In order to gain higher market Share Company has to understand its competitors that is their strength and weakness .Competitor analysis will help TATA AIA to understand strength and weakness of their competitors. This analysis will help TATA AIA to come up with offensive or defensive strategy to identify both opportunity and threats.Some of the main competitors of TATA AIA are:1. Life Insurance Corporation of India (LIC)

2. ICICI prudential

3. SBI Life

4. HDFC standard Life

5. Bajaj Alliance1. Life Insurance Corporation of India ( LIC):LIC was founded in 1956 with the merger of 243 insurance company and provident societies. It is the largest insurance and investment company in India. It is a state owned with 100% stake owned by government of India.

Products offered by LIC are:

1. JeevanArogya plan:

Jeevanarogya plan is a unique non-linked health insurance plan which provides health insurance against certain specified health risk. LICs jeevanarogya plan is a direct competition to IDBIs Healthsurance plan.

2. Bima Account plan:

Under this plan the premiums payed by the customer after deduction of all charges, will be credited to the policyholders account maintained separately for each policyholder. If all premiums are paid the amount held in policyholders account will earn an annual interest rate of 6% p.a

3. Endowment plan:

Its a unit linked endowment plan which offers investment cum insurance cover during the term of the policy.

4. Children Plans

5. Plan for Handicapped Dependents

6. Endowment assurance plans

7. Plans for high worth Individual

8. Money Back Plans

9. Special Money Back Plan for Women

10. Whole Life Plans

11. Term assurance plans

12. Joint Life Plan

SWOT Analysis of LIC:SWOT Analysis is a strategic planning method used to analyze strength, weakness, opportunity and threat involved in a business or a project.

1. Strength:

LIC is Indias largest state-owned company and also Indias largest investors

LIC has over 2000 branches all across India and more than 1, 00,000 agents.

LIC is the largest investor in India with largest fund base.

LIC has over 1, 15,000 employees across India.

LIC is the 8th most trusted brand of India.

LIC has subsidiaries like LIC card services Ltd, LIC Housing finance Ltd, LIC Nomura mutual fund.2. Weakness:

It lacks imagination since it has an image of a government company

Red tape, bureaucracy causes the problem since it is a government company.

During the economic crises managing a he workforce is a lot of burden.

2. ICICI Prudential:ICICI prudential Life Insurance Company is the joint venture of ICICI bank and Prudential Plc, one of the leading financial service groups in UK.

Products offered by ICICI prudential:

1. ICICI pru care:

It is an insurance plan that protects familys future and ensures they lead their life comfortably.

2. Save n Protect

3. Cash back

4. Home Assure

5. Life Guard

6. ICICI pruiprotect

7. Smart kid Regular premium

8. ICICI pru Elite Life

9. Group term insurance planSWOT Analysis of ICICI prudential:STRENGTHS:

1.Strong tie up

2.Brand Equity

3.Strong network

4.Huge customer database

5.Strong financial base Weaknesses:

1.Low customer awareness

2.Less promotion

3.Untouched Rural Population

OPPORTUNITIES:

1.Untouched Rural market

2.Large Uninsured population

3.Network BuildingThreats:

1.Competitors

2.Customer beliefs in LIC

3.Fast turnover of employees

CHAPTER 4DATA ANALYSIS

This chapter provides a broad picture regarding the personal information like family background, financial status, preference, investments and the insurance products of the selected respondents.

Secondly this chapter also presents the results to the following relations using Chi-square test.

The relation between investment and family size

The relation between the annual premium amount payment by the investor and the insurance plan owned by the investor.

The relation between family size and premium paid by the investor.

The relation between annual premium payment and the number of policies owned by the investor.1. Family incomeTable 1: Income levelsIncome No of respondents%

50000 to 10000000

100001 to 15000024

150001 to 2000001428

200001 to 2500002040

Above 2500011428

Total 50100

Fig 1: Income levelsFrom table 1 figure 1 we can observe that majority of the respondents fall in the income level of 200001 to 250000 I,e 40%, secondly between 150001 to 200000 that is 28% followed by Above 250001 that is 28%.2. Family sizesFamily sizeNo of members%

Two510

Three2346

Four2040

more than four24

Total50100

Fig 2: family sizeFrom table 2 and figure 2 it can be observe that 46% of the respondents are having family size of three, 40% with family size of four and 10% of respondents with family size of two and finally it is clear that 4% are having family size more than four.3. Customers interest in investing their savingsTable 3: Customers interest in investing their savingsInterest in savings No of respondents %

Yes50 100

No 0 0

Total 50100

Fig 3: Customers interest in investing their savingsTable 3 and figure 3 shows that every respondent is willing to invest in savings4. Customers investment decisionTable 4: customers investment decisionInvestment optionNo of respondents (this contain multiple selection)%

Insurance2244

Fixed Deposits918

Stock Market510

Chit Funds1020

Other48

Fig 4: customers investment decisionTable 4 and figure 4 shows the customers investment decision, the respondents made multiple investments among them most of them are opting insurance with 44% next chit funds with 20% followed by fixed deposits 18% , stock market 10% other 8%5. Investment in insuranceTable 5: Investment in insuranceInsurance companiesNo of people interest in investing%

TATA AIA Life Insurance1428

SBI Life816

ICICI Securities36

LIC1222

Other1326

Total 50100

Fig 5: Investment in insuranceFrom the table 5 figure 5 we can observe that many respondents are insured in other companies with 26% followed by LIC with 22% then SBI life with 16% and Tata aia life with 28%. 6. Insurance policy details in the companyTable 6: Policy details in the companyPolicyNo of policys taken %

Life Insurance2550

Child Insurance816

Pension Plan714

Whole Time Plan36

Other714

Total50100

Fig 6: Policy details in the companyFrom the table 6 and figure 6 we can observe that majority are investing in life insurance that is 50% followed by other that is 16% , child insurance and pension plan 14% each and whole time plan is 6% and other is 14%.

7. Number of policies in that companyTable 7: No of policiesPolicies in that companyNo of policies%

One2040

Two1224

Three1020

More than three816

Total50100

Fig 7: No of policiesFrom table 7 figure 7 we can observe that 40% of respondents have one policy and the remaining 24% have two policies and three have 20% and more than three is 16%. 8. Premium payments annually Table 8: Premium amount AmountNo of respondents%

10000 to 200001938

20001 to 300001530

30001 to 400001020

Above 40001612

Total50100

Fig 8: Premium amountFrom table 8 and figure 8 we can say that 30% respondents pay their premium between 20001 to 30000, 38% pay their premium between 10000 to 20000 and remaining 20% between 30001 to 40000 and 12% above 40000.

9. Marital status of respondentsTable 9: Marital statusMarital statusNo of respondents%

Yes4488

No 612

Total 50100

Fig 9: Marital statusTable 9, figure 9 it is clear that Among my sample size people married are 88% and un-married are 12%.10. Occupational status of the respondentsTable 10: Occupational statusOccupation No of respondents %

Government Employee1020

Private Employee2856

Business1020

Other24

total 50100

Fig 10: occupational statusFrom table 10, figure 10 it is evident that respondents can be broadly classified into four categories viz.,Government Employee, Private Employee, Business and others. Private employees (56%) have occupied major share among the respondents. Secondly customers engaged in business have occupied (20%), thirdly government employees (20%) and other is (4)%.

11. Occupation of the spouseTable 11: Occupation of spouseOccupation No of respondents %

Government Employee1020

Private Employee2856

Business1020

Other24

total 50100

Fig 11: Occupation of spouseFrom table 11 it is evident that the occupation of spouse related to respondents can be broadly classified into four categories viz.,Government Employee, Private Employee, Business and others. Private employees (56%) have occupied major share among the respondents. Secondly government employees (20%), thirdly customers engaged in business have occupied (20%) and other is (4%),12. Children insuranceTable 12 children insuranceChild insuranceRespondents%

Yes2652

No2448

Total50100

Fig 12: Child insuranceFrom the table 12 and figure 12 we can see that 52% of the respondents children are not insured but however the remaining 48% are interested to invest it is clear.13. In this analysis the collected data is tested to find the association between two variables and to find whether the null hypothesis is accepted or rejected by applying chi square test

Relation between investment and family sizeInvestment Options (in Rs)

Family size Chit FundsFixed DepositsFixed Deposits, Chit FundsInsuranceInsurance, Chit FundsInsurance, Chit Funds, OtherInsurance, Fixed DepositsInsurance, Fixed Deposits, Chit FundsInsurance, OtherInsurance, Stock MarketGrand Total

Four11146112219

more than four11

Three1126234221

Two21115

Grand Total2126141365646

Table 13: Relation between investment and family size

Fig 13: Relation between investment and family sizeHo: There is no relation between investment and family size.

H1: There is relation between investment and family size.

Results of chi-square test 2.86038E-06Table 13 and figure 13 shows the relation between the family size and their investment options by applying chi-square test, consider alpha 5% (alpha=0.05) the result of the test is less than the alpha value so wereject the null hypothesis. We can say that there is perfect relationship between investment and family size.

14.The relation between the annual premium payment by the investor and the insurance plan they havePremium amount paid annually ( in Rs)

Insurance product10000 to 2000020001 to 3000030001 to 40000Above 40001Grand TotalGrand Total

Child Insurance1344

Life Insurance91352727

Other412188

Pension Plan3144

Grand Total1718714343

Table 14: The relation between the annual premium payment by the investor and the insurance plan they have

Fig 14: The relation between the annual premium payment by the investor and the insurance plan they haveHo: There is no relation between the annual premium payment by the investor and the insurance plan they haveH1: There is relation between the annual premium payment by the investor and the insurance plan they haveResults of chi-square test 0.417932597Table 14 and fig 14 shows the relation between the annual premium payment by the investor and the insurance plan they have by applying chi-square test, consider alpha 5% (alpha=0.05) the result of the test is greater than the alpha value so we accept the null hypothesis. We can say that there is no-relationship between the annual premium payment by the investor and the insurance plan they have15.The relation between family size and premium paid by the investorPremium paid annually (in Rs)

Family size10000 to 2000020001 to 3000030001 to 40000Above 40001Grand Total

Four692118

more than four11

Three79319

Two325

Grand Total17187143

Table 15: The relation between family size and premium paid by the investor

Fig 15: The relation between family size and premium paid by the investorHo: There is no relation between family size and premium paid by the investor.

H1: There is relation between family size and premium paid by the investor.

Results of chi-square test 0.841155101Table 15 and fig 15 shows the relation between the annual premium payment by the investor and how many policies they have by applying chi-square test, consider alpha 5% (alpha=0.05) the result of the test is greater than the alpha value so we accept the null hypothesis. We can say that there is no-relationship between family size and premium paid by the investor16. Relation between annual premium payment and no of policies the investors havePremium payment annually (in Rs)

How many policies10000 to 2000020001 to 3000030001 to 40000Above 40001Grand Total

One1512128

Two266115

Grand Total17187143

Table 16: Relation between annual premium payment and no of policies the investors have

Fig 16: Relation between annual premium payment and no of policies the investors have

Ho: There is no relation between premium payment and no of policies the investors have.

H1: There is relation between premium payment and no of policies the investors have.

Results of chi-square test 0.004229509Table 16 and fig 16 shows the association between the yearly premium and no of policies the investors who pay premium of rupees 10000 to 20000 annually, 35% and 5% of them are having one and two policies respectivelythe investors who pay premium of rupees 20001 to 30000 annually, 28% and 14% of them are having one and two policies respectively

The investors who pay premium of rupees 30001 to 40000 annually, 2% and 14% of them are having one and two policies respectively

The investors who pay premium of rupees above 40000 annually, 0% and 2% of them are having one and two policies respectively

By applying chi-square test, consider alpha 5% (alpha=0.05) the result of the test is less than the alpha value so we reject the null hypothesis. We can say that there is less relationship between premium payment and no of policies the investors have.

17. Relation between family income and annual premium payment.Family income (in Rs)

Annual premium payment100001 to 150000150001 to 200000200001 to 250000Above 250001Grand Total

10000 to 20000248317

20001 to 3000049518

30001 to 400001337

Above 4000111

(blank)415

Grand Total213201348

Table 17: Relation between family income and annual premium payment.

Fig 17: Relation between family income and annual premium payment.Ho: There is no relation between family income and annual premium payment.

H1: There is relation between family income and annual premium payment.

Results of chi-square test 0.456454535Table 17 and fig 17 shows the association between the income levels and premium paid by the investors annually. The investors who pay premium of rupees 10000 to 20000 annually, among them 4% fall under 1lak to1.5lak category,, 8% under above 1.5lak to 2lak, 17% under above 2lak to 2.5lak and 6% under above 2.5lak category respectively.The investors who pay premium of rupees 20001 to 30000 annually, among them 0% fall under 1lak to1.5lak category, 8% under above 1.5lak to 2lak, 19% under above 2lak to 2.5lak and 10% under above 2.5lak category respectively

The investors who pay premium of rupees 30001 to 40000 annually, among them 0% fall under 1lak to1.5lak category, 2% under above 1.5lak to 2lak, 6% under above 2lak to 2.5lak and 6% under above 2.5lak category respectively.The investors who pay premium of rupees above 40000 annually, among them 0% fall under 1lak to1.5lak category, 0% under above 1.5lak to 2lak, 0% under above 2lak to 2.5lak and 2% under above 2.5lak category respectivelyBy applying chi-square test, consider alpha 5% (alpha=0.05) the result of the test is greater than the alpha value so we accept the null hypothesis. We can say that there is no-relationship between these family income and annual premium payment.

CHAPTER6FINDINGS, SUGGESITIONS AND CONCLUSION

This chapter gives a broad picture about the major findings on the results; this chapter also provides some suggestions for investors who are planning to invest their savings on various insurance products.6.1. FINDINGS

Theresults of this study show that every investor invested their saving in one or the other form of investment. The private employees have invested 58% earnings in insurance. Most of the investors invest in government owned companies rather than the private insurance players; government holding is about 37%. Among the respondents Private employees have occupied major share (63%) among the respondents. Secondly government employees (30%), thirdly customers engaged in business (12%) are among the respondents. Majority of the respondents fall in the income range of Rs200001 toRs 250000 I.e. 41%, secondly between Rs150001 to Rs200000 that is 29% followed by Above Rs250001 that is 27%. Respondents made different modes of investments among them most of them are opting insurance (42% ), next chit funds (29% ) followed by fixed deposits (14%) , stock market (6%) other (8%).

Majority of the investment is in terms of life insurance (63%) followed by other (19%), child insurance and pension plan 9% each. 43% respondents pay their premium between Rs20001 to Rs30000, 39% pay their premium between Rs10000 to Rs20000 and remaining 16% between Rs30001 to Rs40000 and 2% above Rs40000 The investment option of child insurance concludes that 52% children are not insured and remaining 48% are insured. There exists a perfect relation between annual premium payment and no of policies the investors have. There is no relation between the annual premium payment by the investor and the insurance plan they have. There is no relation between family income and annual premium payment.

There is perfect relation between investment and family size.Based on the above findings, this study provides the following suggestions:6.2 SUGGESITIONS

Investors should be aware of companys profile and returns associated with insurance products before investing.

All Companies should publish their performance by comparing it with their competitors, so that they can grab the market and create awareness among the investors.

Company should adopt strategies to explore that private insurance companies are safer and securer than public insurance company like LIC.

For Middle income groups there is a need to suggest that premium can be collected on monthly basis instead of once a year.

Companys reputation is more important because bad impression on image or brand name is considered while decision making among investors. Above all, all the investors should be informed about the role of IRDA as regulatory authorities of insurance business.

6.3 CONCLUSION

Insurance is a tool by which fatalities of a small number are compensated out of funds collected from plenteous. Insurance is a safeguard against uncertain events that may occur in the future. Over the last 5 to 6 years, the IDBI Federal life insurance Co Ltd has tripled investors money than the other competent; this progress leads to increase the company image and makes a way to lead the total insurance market. Besides the personal data and the investment patterns of the investors, this study established certain facts that there is a relation between the annual premium payment and the no of policies owned by them, family income and the annual premium payment made by the investor. However the study concludes that the investors mostly prefer the insurance products of public sector compared to the insurance products of private sector.

Therefore this study concludes that, company image is the highly important criteria that consumers consider before taking up a life insurance. This is mainly because people expect safety and secure for their money which they invest, followed by the factor Premium which we pay to the insurer.

QUESTIONARE

1. Family income

50000 to 100000 100001 to 150000 150001 to 200000 200001 to 250000 Above 2500012. Family sizes

Two Three Four more than four3. Customers interest in investing their savings

Yes No4. Customers investment decision

Insurance Fixed Deposits Stock Market Chit Funds Other5. Investment in insurance

TATA AIA Life Insurance SBI Life ICICI Securities LIC Other6. Insurance policy details in the company

Life Insurance

Child Insurance

Pension Plan

Whole Time Plan

Other

7. Number of policies in that company

One

Two

Three

More than three

8. Premium payments annually

10000 to 20000

20001 to 30000

30001 to 40000

Above 40001

9. Marital status of respondents

Yes

No

10. Occupational status of the respondents

Government Employee

Private Employee

Business

Other

11. Occupation of the spouse

Government Employee

Private Employee

Business

Other

12. Children insurance

Yes

No

13. In this analysis the collected data is tested to find the association between two variables and to find whether the null hypothesis is accepted or rejected by applying chi square test

Relation between investment and family size

Four More than four Three Two14. The relation between the annual premium payment by the investor and the insurance plan they have

Child Insurance

Life Insurance

Other

Pension Plan

15. The relation between family size and premium paid by the investor

Four More than four Three Two16. Relation between annual premium payment and no of policies the investors have

One

Two

17. Relation between family income and annual premium payment.

10000 to 20000 20001 to 30000 30001 to 40000 Above 40001 (blank)BIBLOGRAPHYText Books Kothari, C.R. ( Reprint Edition 2005), Research Methodology Methods and Techniques, New Age International (P) Ltd., Publishers, Delhi, Aswathappa, K., (2010), Human Resource Management, McGraw Hill Education, Publishers, Gupta, C. B, (2006), Human Resource Management, Sultan Chand & Sons,

News Paper Economics Times The times of India

Hindustan times

Websites http://www.tataaialifeinsurance.com/in/en/profile/ www.tataaialifeinsurance.com.in http://www.bisleri.com/in/en/inuranceplan / www.irda.inCEOVIGNESH SHAHANE

Marketing & Promotion

Product

Human Resource

Finance

Under writing

East Zonal Support Manager

North Zonal Support Manager

West Zonal Support Manager

South Zonal Support Manager

HMR INSTITUTE OF TECHNOLOGY AND MANAGEMENT