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EXPANSION OF DITRIBUTION NETWORK AND
BUSINESS LEAD GENERATION
A PROJECT REPORT
Submitted to the
SRM SCHOOL OF MANAGEMENT
In partial fulfillment of the
OF
MASTER OF BUSINESS ADMINISTRATION
BY
ARVIND KUMAR (Reg. No. - 35080070)
Under the guidance of
Dr. T. RAMACHANDRAN
SRM SCHOOL OF MANAGEMENT
SRM UNIVERSITY
KATTANKULATHUR 603203
MAY 2010
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BONAFIDE CERTIFICATE
Certified that this project report titled EXPANSION OF
DITRIBUTION NETWORK AND BUSINESS LEAD
GENERATION-IN BIKANER (RAJ.) iiss tthhee bboonnaaffiiddee wwoorrkk bbyy MMrr..
AARRVVIINNDD KKUUMMAARR wwhhoo ccaarrrriieedd oouutt rreesseeaarrcchh uunnddeerr mmyy ssuuppeerrvviissiioonn..
CCeerrttiiffiieeddffuurrtthheerr,,tthhaattttootthheebbeessttooffmmyykknnoowwlleeddggeetthheewwoorrkkrreeppoorrtteeddhheerree
iinn ddooeess nnoott ffrroomm ppaarrtt ooff aannyy ootthheerr pprroojjeecctt rreeppoorrtt oorr ddiisssseerrttaattiioonn oonn tthhee
bbaassiissooffwwhhiicchhaaddeeggrreeeeoorraawwaarrddwwaassccoonnffeerrrreeddoonnaanneeaarrlliieerrooccccaassiioonnoonn
tthhiissoorraannyyootthheerrccaannddiiddaattee..
Dr. T. Ramachandran Dr. Jayshree Suresh
(project guide) (Head of department)
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DECLARATION
I am Arvind Kumar student of MBA IV Semester of SRM School of
Management Chennai, hereby declare that the report titled Expansion
of distribution network and Business lead generation is
submitted by me in the line of partial fulfillment of course objectives for
the Masters of Business Administration Degree.
I assure that this project is the result of our own efforts and that any other
institute for the award of any degree or diploma has submitted it.
Date: Arvind Kumar
Place: MBA (IV SEM.)
Reg. No.-35080070
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ABSTRACT
The project report of the company IFFCO-TOKIO General Insurance
Company Limited is prepared to understand EXPANSION OF
DITRIBUTION NETWORK AND BUSINESS LEAD
GENERATION at Bikaner (Rajasthan).
With this research survey, it is tried to figure out to find out about the
awareness of insurance in people mind.
Insurance is not purchased it is sold by channel of distribution so before
selling it has to be made known to the people by making them aware. The
belief that Insurance is necessary for ones life is to be made inculcate in
them.
Research objective is to find out new Insurance Advisor and follow them
up and to find out new way of recruitment of Insurance Advisor as
through Internet, Walk-In Interview or Past Experience basis.
What factors as a consumer will a normal person have in his/her mind,
which will compel him/her to buy insurance policy.
In this descriptive type of research the random selection process is used to
collect primary data with the help of Questionnaire. The data from ITGI
Company Limited was also available and helpful for the completion of the
project.
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CHAPTER
NO.
TITLE PAGE NO.
1 INTRODUCTION
1.1 Executive Summary 9
1.2 Introduction 11
1.3 Purpose of study 14
1.4 Objective and scope of study 15
1.5 Limitation of study 16
2 PROFILE
2.1 Company profile 17
2.2 Theoretical background 18
2.3 Services & features 26
3 RESEARCH DESIGN
3.1 Research methodology 29
3.2 Method of data collection 34
4 FINDING & ANALYSIS
4.1 Finding of Study 37
4.2 Table and Charts 42
4.3 Statistical data analysis & interpretation 59
5 CONCLUSION
5.1 Recommendation 61
5.2 Conclusion 62
6 Annexure 63
CCOONNTTEENNTTSS
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LIST OF TABLES
S.No TITLE OF THE TABLE Page No.
1. Number of respondent 37
2. Age of respondent 39
3. Family income per month 41
4. Desire to become financial consultant 43
5. Interest to buy different polices 45
6. Influencing factor to interest for ITGI 47
7. Contributing factor to become insurance advisor 49
8. Size of social contract 51
9. Having other General Insurance polices 53
10. Current occupation 55
11. Education qualification 57
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LIST OF CHARTS
S.No TITLE OF THE CHART Page No.
1. Number of respondent 38
2. Age of respondent 40
3. Family income per month 42
4. Desire to become financial consultant 44
5. Interest to buy different polices 46
6. Influencing factor to interest for ITGI 48
7. Contributing factor to become insurance advisor 50
8. Size of social contract 52
9. Having other General Insurance polices 54
10. Current occupation 56
11. Education qualification 58
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(1.2) INTRODUCTION
Insurance businessis divided into four classes:
1) Life Insurance
2) Fire Insurance
3) Marine Insurance and
4) Miscellaneous Insurance.
Life Insurers transact life insurance business; General Insurers transact the rest.
No composites are permitted as per law.
LEGISLATION:-
Insurance is a federal subject in India. The primary legislation that deals with
insurance business in India is:
Insurance Act, 1938 and Insurance Regulatory & Development Authority Act, 1999.
Life Insurance-
Popular Products: Endowment Assurance (Participating), and Money Back
(Participating). More than 80% of the life insurance business is from these
products.
General Insurance-
Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle
insurance is compulsory.
Tariff Advisory Committee (TAC) lays down tariff rates for some of the generalinsurance products (please visit website of GIC for details)
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CUSTOMER PROTECTION:-
Insurance Industry has Ombudsmenin 12 cities. Each Ombudsmanis empowered to
redress customer grievances in respect of insurance contracts on personal lines where
the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman
Scheme. Addresses can be obtained from the offices of LIC and other insurers.
INDIAN INSURANCE INDUSTRY:-
Insurance industry, as on 1.4.2000, comprised mainly two players:
The state insurers
Life Insurance Corporation of India (LIC)
General Insurance Corporation of India (GIC) (with effect from Dec'2000, a
National Reinsurer)
GIC had four subsidiary companies, namely ( with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent
insurance companies.
The Oriental Insurance Company Limited
The New India Assurance Company Limited
National Insurance Company Limited
United India Insurance Company Limited.
Other life insurers
HDFC Standard Life Insurance Company Ltd.
Max New York Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Company Ltd.
Kotak Mahindra Old Mutual Life Insurance Limited
Birla Sun Life Insurance Company Ltd.
Tata AIG Life Insurance Company Ltd.
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SBI Life Insurance Company Limited .
ING Vysya Life Insurance Company Private Limited
Bajaj Allianz Life Insurance Company Limited
Metlife India Insurance Company Ltd.
IDBI Fortis Life Insurance
Reliance Life Insurance Company Limited.
Aviva Life Insurance Co. India Pvt. Ltd.
Sahara India Insurance Company Ltd.
Shriram Life Insurance Company Ltd.
Bharti AXA Life Insurance Company Ltd.
Future Generali India Life Insurance Company Limited
Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.
Aegon Religare Life Insurance Company Ltd.
DLF Pramerica Life Insurance Company Ltd.
Star Union Dai-ichi Life Insurance Co. Ltd.,
OTHER GENERAL INSURERS
Name of the Company
Royal Sundaram Alliance Insurance Company Limited
Reliance General Insurance Company Limited.
IFFCO Tokio General Insurance Co. Ltd
TATA AIG General Insurance Company Ltd.
Bajaj Allianz General Insurance Company Limited
ICICI Lombard General Insurance Company Limited.
Apollo DKV Insurance Company Limited
Future Generali India Insurance Company Limited
Universal Sompo General Insurance Company Ltd.
Cholamandalam General Insurance Company Ltd.
Export Credit Guarantee Corporation Ltd.
HDFC-Chubb General Insurance Co. Ltd.
Bharti Axa General Insurance Company Ltd.
Raheja QBE General Insurance Co. Ltd
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(1.3) PURPOSE OF THE STUDY
This project report deals with the Expansion of Distribution Network and Business
Lead Generation in Bikaner Area. IFFCO-Tokio General Insurance (ITGI). Inaddition, emphasize on business generation through the selling of policies by advisors.
The main competitors are ICICI PRUDENTIAL LIFE, BAJAJ ALLIANZ LIFE,
TATA AIG LIFE, BIRLA SUN LIFE, MAX NEW YORK LIFE, AVIVA LIFE etc.
This study also strikes on how people reacted towards ITGI to become insurance
advisor. Recruitment procedure was emphasized on target customers like Motor
owners, Businessman, Housewife, VRS, Teachers, TAX Consultant, Financial
Consultant, Student, Youth, and Insurance Agents.
The main purpose was to get practical experience in the market. How should handle
the different customers in target market on the presence of various constraints.
This was also based on how to recruit people for Insurance with the help of marketing
and communication techniques.
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(1.4) OBJECTIVE AND SCOPE OF THE STUDY
The objective of this study is to present a dissertation for the fulfillment of part of
requirement for MBA from SRM University, Chennai. The broad objective of this
study is to give practical knowledge and training to us.
The main objective was to conduct summer training to recruit Insurance Advisor for
IFFCO-Tokio General Insurance (ITGI)on the presence of various competitors and
difficult traditional market situation.
Objective Include:
To find out the awareness of private insurance players and Brand image of ITGI in
the mind of people.
To penetrate the traditional market this is captured by GIC of India.
To find out new insurance advisor to ITGIand find out new way of sales
promotion techniques as well as recruitment techniques and also distribution
network to generate business.
To find out the attitude of new customers and existing customers towards ITGI.
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(1.5) LIMITATION OF STUDY
Some of the limitations of the project are listed as below:-
1. The time period of just 2 months was the major limitation.
2. Due to the financial and time constraints a cluster analysis of the population so
as to get better results was not feasible.
3. It was difficult to break the ice with the common people initially. It was a
daunting task to convince them to fill in the personal details of thequestionnaire where they have to mention the yearly expenses on printing.
4. To convince the people for a proper interviewing process was also difficult.
5. Compilation of data on competitor analysis was difficult due to non-
availability of correct information.
6. The figures have been taken as approximations.
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CHAPTER II
(2.1) COMPANY PROFILE
IFFCO-Tokio General Insurance (ITGI)was incorporated on 4th December 2000
with a vision of being industry leader by building customer satisfaction through
fairness, transparency, and quick response. It is a joint venture between the Indian
Farmers Fertilizer Co-operative (IFFCO) and its associate and Tokio Marine and
Nichido Fire Group, the largest listed insurance group in Japan.
ITGI has Pan India presence with 51 Strategic Business Units and a wide network of
over 110 offices. It offers a wide range of uniquely customized policies covering a
wide range of customers, from farmers to some of India's largest automobile
manufacturers. From a modest Rs 2130 Million of GWP (Gross Written Premium) in
2001-02 it has achieved an impressive Rs 12350 Million in 2007-08, thereby
becoming one of Indias leading private players.
ITGI has got the Technical Support for underwriting and reinsurance from Tokio
Marine and on Risk Management from Tokio Risk Consulting (TRC). It is the first
company in India to underwrite mega policies for a fertilizer and an automobile
company. This comprehensive policy is based on international rates and optimizes the
premium outflow for clients even as it offers a one-stop, all-risk cover. Other than theconventional products, it has been able to come out niche products like Credit
Insurance, Fine Arts Insurance, P & I Insurance, and Errors & Omissions Policy for
the IT Sector etc. At the same time it has steadfastly carried out its rural centric
initiatives by launching products like Sankat Haran Bima Yojana, Mausam Bima
Yojana, Mahila Suraksha Bima Yojana and Janata Bima Yojana for the masses.
It is also the only insurance company in the country to have a 100%-owned
distribution channel to service its retail customers called IFFCO-TOKIO Insurance
Services Ltd (ITIS). Today, ITIS has a highly motivated workforce of over a 1000
employees in over 200 towns.
As a customer focused company, it conducts bi-annual customer satisfaction surveys
through independent agencies to gauge its operational efficiencies. This is backed by a
robust IT infrastructure, which has enabled, among other things, speedy settlement of
claims.
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(2.2) THEORETICAL BACKGROUND
Development of Insurance Sector:-
Insurance is one of the important instruments designed to deal with risk through
sharing. Insurance is related to protection of the economic value of assets. Every asset
has a value. The assets would have been created through the efforts of the owner in the
expectation that either through the income generated there from or some other output,
some of his needs to be met. However if the asset gets lost earlier, being destroyed or
made non functional through an accident or other unfortunate event, the owner and
those deriving benefits their from suffer. Insurance is a mechanism that helps to
reduce such adverse consequences.
In this simplest aspect it is imbued with two fundamental characteristics:
It transfer risk from one person to a group, and
It facilitates sharing of losses, on some equitable basis, by all members of group. The
importance of insurance is two folds.
From individual point of view:-
Insurance is an economic device whereby the individual substitutes a small certain
cost (the premium) for a large uncertain financial loss (the contingency insured
against) that would exist if it were not for the insurance.
From the social point of view:-
Insurance may be perceived device to be an economic instrument, which reduce and
eliminates risk through the process of combining a sufficient number of homogeneous
exposure into a group and makes the losses predictable for a group as a whole.
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hold for liberalization of Insurance Sector for a faster development of infrastructure
and basic facilities in India.
1971
Management of Non-Life insurers was taken over by the Central Government as a
prelude to nationalization.
1972
Watershed in the history of General Insurance Business in India. General Insurance
business was nationalized with effect from Jan1, 1973 by the General Insurance
Business (Nationalization) Act, 1972 Prior to 1973, general insurance was urban
centric, catering, catering mainly to the needs of organized trade and industry. 107
insurers including branches of foreign companies operating the country were
amalgamated and grouped into four companies, viz the National Insurance Company
Ltd. The Oriental Insurance Company Ltd, The New India Assurance Company Ltd,
and The United India Insurance Company Ltd, GIC was incorporated as a company in1972 and commenced business on January 1
st1973.
The Government subscribed to its capital that, in turn, subscribed to the capital of the
four companies. GIC was designated as the reinsure under the Insurance Act, to
which all the domestic insurers were obliged to cede 20% of gross direct premium in
India. In order to ensure maximum retention in the country and to secure the best
terms from foreign reinsures, GIC and its subsidiaries have a common program for
reinsurance cessions.
The role of malhotra committee:-
1993: First Step to Liberalization Malhotra Committee formed to recommend
measures to deregulate Indian Insurance Sector. The following recommendation was
forwarded to liberalize the Insurance sector.
The private sector should be allowed to enter the insurance business, but no single
company will be allowed to transact both life and general insurance business. The
number of entrance should be controlled.
The new entrants should write a specified portion of their business in rural areas.
Minimum paid up capital of new entrant should be 100 crores. The promoters holding
in a private business company should not exceed 40% of the total. However, if the
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promoters wish to start with a higher holding, they should be permitted to do so
provided their holdings is brought down to 40% within a specified time through public
offerings.
If and when the entry of foreign insurance companies is permitted, it should be on a
selective basis. They would be required to float an Indian company for the purpose,
preferably as a joint venture with an Indian partner.
The controller of insurance should effectively start functioning before the private
sector is allowed to enter the insurance field.
Regulatory and prudential norms as well as conditions for ensuring level playing fields
among insurer should be finalized early so that intending entrants are aware of to
insure that the life insurers do not neglect the small man or rural business and general
insurers have balance portfolios and
Though the nationalized insurance companies are in a position to face competition, it
is essential that they quickly upgrade their technology, recognize themselves on more
efficient lines.
The Liberation of the insurance sector has been the subject of much debate for some
years. The policy maker were in the catch of twenty-two situation where in for one
they wanted competition, development and growth of this insurance sector which is
extremely essential for channeling the investments in the policy makers had the fears
that the insurance premea which are substantial, would slip cut of the country and
wanted to have a cautious approach of opening for foreign particular in the sector.
IRDA came into picture with its important provision.
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Insurance Regulatory and Development Authority:-
The Insurance Regulatory and Development Authority(IRDA) is a national
agency of the Government of India, based in Hyderabad. It was formed by an act of
Indian Parliament known as IRDA Act 1999, which was amended in 2002 to
incorporate some emerging requirements.
Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999laysdown the duties,powers and functions of
IRDA-
(1) Subject to the provisions of this Act and any other law for the time being in force,
the Authority shall have the duty to regulate, promote and ensure orderly growth of theinsurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1),
the powers and functions of the Authority shall include,
issue to the applicant a certificate of registration, renew, modify, withdraw,
suspend or cancel such registration;
protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts of
insurance;
specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
specifying the code of conduct for surveyors and loss assessors;
promoting efficiency in the conduct of insurance business;
promoting and regulating professional organisations connected with the insuranceand re-insurance business;
levying fees and other charges for carrying out the purposes of this Act;
calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance
intermediaries and other organisations connected with the insurance business;
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control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance
Act, 1938 (4 of 1938);
specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance
intermediaries;
regulating investment of funds by insurance companies;
regulating maintenance of margin of solvency;
adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
supervising the functioning of the Tariff Advisory Committee;
specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organisations referred to in clause (f);
specifying the percentage of life insurance business and general insurance business
to be undertaken by the insurer in the rural or social sector; and
exercising such other powers as may be prescribed
Licensing of insurance agent, (Regulation, 2000):-
The IRDA has announced regulation pertaining to licensing of insurance agent, which
has come into force with effect from 14th
July 2000.
Qualification: An insurance agent should satisfy the following requirements
Posses a minimum educational qualification of 12th
standard or equivalent where
the applicant resides in a place with a population of five thousand or more as per thelast census. In any other place, the applicant should satisfy a minimum educational
qualification of 10th
standard or equivalent.
Complete one hundred hours (100) of practical training in life insurance business,
from an approved institution, where the applicant is seeking a license for the first
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timeto act as an insurance agent. This training requirement is relaxed in certain
situation where the applicant possesses professional qualification.
Pass the pre-recruitment test, based on an examination conducted by the Insurance
Institute of India (III) or another approved body.
Have the requisite knowledge to solicit and procure insurance business.
Be capable of providing necessary service to the policyholders.
The agency system:-
Clause 3of the regulation provide that an agent can represent only onelife insurer oronegeneral insurer or both, at a time.
This implies that the agent will have to terminate his/her contract, if any, with an
existing Life or general insurer before joining another life or general insurer.
.
A person having both agencies, life and general, shall be known as a Composite
Agent.
In addition to this, all licenses renewed prior to notification of the new regulations will
be valid only for the period mentioned in the license. All new licenses issued
thereafter shall be valid for a period of three years.
The training referred to in the regulations, will be initially organized by HDFC
STANDARD LIFE INSURANCE COMPANY LTD. This training will enable the
applicants to qualify for the pre-recruitment examination to be conducted by the
Insurance Institute of India (III) or any other approved examination body.
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Scope of Insurance Business in India:-
The Malhotra Committee estimated that the insurance operation penetration in India is
to the extent of about 25% of insurable population. As of 1999-2000, LIC has about
10 crore policies in force, which contribute a Premium of about 6% of the GDS (Gross
Domestic Savings) of household in India.
Based on a report by the Confederation of Indian Industries (CII), it is anticipated that
this figure of 10 crore policies in force is likely to double in the next decade. By the
year 2010, the Premium Income is expected to account for 18% of the GDS,
amounting to Rs. 5, 12,000 crore.
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(2.3) SERVICES & FEATURES
ITGI product development team is constantly working to introduce products which arecompetent in meeting the customer needs. IFFCO Tokio emphasize on understanding
the need from the market and offering the best possible products across the productlines. It approaches the market with products that have differentiated features /benefits / service offerings. IFFCO Tokio offers a wide range of uniquely customized
policies covering a wide range of customers, from farmers to some of India's largestautomobile manufacturers.
ITGI making constant efforts to reach out the entire general insurance spectrum i.e.
Commercial Lines,
Retail lines andSpecialty Lines.
Innovations will keep on expanding to include customised offerings for various market
segments and geographies.
Commercial Lines
IFFCO-TOKIO provides a wide variety of policies that are customized to customer
needs are-
Standard Fire & Special Perils
Consequential Loss
Contractors All Risk
Boiler & Pressure Plant
Erection All Risks
Industrial All Risks
Machinery Breakdown
Jeweller's Block
Machinery Loss of Profit
Product Liability
Public Lia Industrial
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Public Lia Non-Industrial
Marine cargo
Elrctronic equipment
Bankers blanket
Burglary insurance
Fidelity guarantee
Money insurance
Workmens compensation
Retail Lines
IFFCO-TOKIO provides a wide variety of policies that are customized to customer
needs are-
Motor private car
Home & family protector
Industry protector
Office professional establishment
Home suvidha
Trade suvidha
Individual personal accident
Group personal accident
Swasthva kavach
Critical illness policy
All resk insurance
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CHAPTER III
(3.1) RESEARCH METHODOLOGY
Marketing research is the systematic and objective identification,
collection, analysis, and dissemination of information for the purpose of
assisting management in decision making related to the identification and
solution of problems and opportunities in market.
The task of marketing research is to provide management with relevant,
accurate, reliable, valid, and current information. Competitive marketing
environment and the ever-increasing costs attributed to poor decision
making require that marketing research provide sound information. Sound
decisions are not based on gut feeling, intuition, or even pure judgment.
The information can only be gathered by data collection and then
analyzing the available data.
Therefore, it can be said that the data collection is an important part
of the project.
InformationData
Raw numbers
The projected objectives were considered and as per the requirement a
market survey was done.
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Procedure:-
The procedure that followed can be enlisted as below:
Reading about the product
Deciding on the objective to proceed.
Developing Survey instruments
Conducting personal interviews of different age-groups, sex, monthly
income and occupation through a Questionnaire.
Finally analyzing the data of various Geographic areas and trying to
study with the other players.
Process adopted:-
1. Gaining knowledge about the product:
Reading about the product was the first step undertaken. This gave
not only in depth knowledge about what is been offered by other
players but also proved useful while developing the questionnaire.
2. Steps in the Development of the Survey Instruments
The main instruments required for survey was a well-developed
questionnaire. The questionnaire development took place in a series
of steps as described below:
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1Research objectives are being transformed into
information objectives.
3The Appropriate data collection methods have been
determined
5The information required by each objective is being
determined.
7Specific Questions/Scale Measurement format is
developed.
9The number of information needed is being
determined.
11 Question/Scale Measurements is being evaluated.
13
Research objectives are being transformed into
information objectives.
15The questionnaire and layout is being evaluated.
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17Revise the questionnaire layout if needed.
19The Questionnaire format is being finalized.
FORMULATION OF OBJECTIVE:-
The first step in market research understands the problem. After defining the
objective an efficient plan should be developed for gathering information. The
researcher should have skill to design the research approach and research area. In my
project with the help of my superiors in ITGI, I have formulated the objective and
accordingly worked on it.
SAMPLE PLAN:-
A proper sampling plan is very important in the research process and it also makes the
research process easy. It includes the sampling element, sample size and sample area.
SAMPLE ELEMENT:-
It includes those respondents who are going to fill up and answer the questionnaire.
SAMPLE SIZE:-
Project worked on a sample size of fifty prospective people who showed interest in
knowing the product and also becoming the Insurance Advisor.
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SAMPLE AREA:-
Research worked out at Bikaner (Rajasthan) area. Particular respondent Choosen are
Business man, Motor owner, Financial Consultant, VRS, Housewife, Insurance
Advisor, Student, Tour & Travel Agency, Teachers, and Young Unemployed Youth.
Our main task was interviewing the people and to analyze their attitude towards ITGI.
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(3.2) METHOD OF DATA COLLECTION
A variety of collection methods can be employed, individually or in combination.
Factors commonly influencing the choice between these designs include:
Nature and quality of the frame
Availability of auxiliary information about units on the frame
Accuracy requirements, and the need to measure accuracy
Whether detailed analysis of the sample is expected
We conduct primary research by gathering original data. Secondary research is
conducted on data published previously and usually by someone else. Secondary
research costs far less than primary research, but seldom comes in a form that exactly
meets the needs of the researcher.
Research instrument:-
I used questionnaire as research instrument to collect the requisite information for the
research. Questionnaire method was chosen because of its versality. Almost every
market problems involves people. Therefore ideas relative to people and its solution
can be obtained by asking them about their problems. This type has the advantage that
the respondents do not know exactly what is being measured and hence are not biased
their answer to some extent.
My research design made it necessary for me to collect accurate data to achieve useful
result. For this very reason I decided to use primary source of data.
Designing of questionnaire-Questionnaires are designed according to project
requirement and company need. So while designing the questionnaire we have to
include both awareness about Insurance and Investment. But our main objective was
to find new Insurance Advisor so that questionnaire was designed according to gather
data and find out the prospective Insurance Advisor.
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First part of the questionnaire deals with the data of the person I am interviewing
that consist of personal details-
Name of the concerned person-So that the person could be identified when
contacted later.
Address of person-For direct contact or useful in mailing some of the pamphlets.
Phone No. This is the important part of the questionnaire as it is code by which a
person can contacted directly.
Employment details-So that persons status can be found out and also his premium
paying ability.
Family details-This is very useful information as the need of that human being canbe traced.
Second part of the questionnaire
Investment awareness- First we are catching the investment awareness of the
person by asking him that whether he thinks investment planning is necessary or
not for managing his wealth.
Categorized the need- Next what we did was to rank his investment in priority wise
like in Fixed Deposit, Life Insurance, Provident Fund, Mutual Fund, Jewellary etc.
It helps to understand the people motive in investment whether he is-
Protector
Builder
Enhancer
Family Income -It includes the family background of person. This was basically
emphasized on monthly income person.
Educational Qualification It was more important to know about persons
educational qualification to become an Insurance Advisor. So minimum qualification
was mentioned 10th
pass and maximum was post-graduation.
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Current Occupation It was necessary to know that persons source of income i.e.
they were self-employed, salaried, student or housewife. It also clarified that person
had any insurance agency or not.
Size of Social Contract -It was very important element. Because for a insurance
advisor, social contract is very necessary. Insurance advisor sells policies to customers
and policies are sold also on the basis of believeness. So social contract is very
important. It may be either relatives or friends.
Reason for taking insurance Policy - Itwas a general question just to know the
awareness of the different needs of a human being while taking an insurance policy.
Now the important part of the questionnaire, which was mainly designed from the
companys point of view to find new customer.
Questions like-
-Have you done a insurance planning?
-Is any advisor from any company does come to suit his needs and whether he wants
to meet any body from our company?
Insurance awareness- Firstly it was asked whether the person has any insurance
policy of any other company, the name of the company, sum assured, and purpose.
This is mainly asked to know whether the people mind has changed towards the
insurance players in the market or it is sticked to the old players. Another purpose was
to decipher whether the person is able to afford another premium, which is judged by
the sum assured and his monthly income.
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CHAPTER IV
(4.1) FINDING OF STUDY
(1.) Number of respondents
TABLE 1
S. NO SEX NO. OF
RESPONDENT
FREQUENCY IN
%
1 MALE 36 72%
2 FEMALE 14 28%
GRAND
TOTAL
50 100.0
INFERENCE:
The above data shows that there are fifty respondents. In which the number of female
respondent in % frequency is 28%. The male respondent in % frequency is 72%.
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CHART 1
72%
28%
Male
Female
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(2.) Age of respondents
TABLE 2
S.NO. AGE NO. OF
RESPONDENT
FREQUENCY IN
%
1 BELOW
18
2 4%
2 18-25 9 18%
3 25-40 19 38%
4 40-60 17 34%
5 ABOVE
60
3 6%
GRAND
TOTAL
50 100.0
INFERANCE:
Above data shows that only two persons were minor and rest were major. 38%
respondents were belonging to age between25-40. There were only 3 persons
belong to above 60 years. Data shows that sharing of youth were 18%.
Recruitment of Insurance Advisor came under the age between40-60.
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CHART 2
4%
18 %
38 %
34 %
6%Below 18
18-25
25-40
40-60
Above 60
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CHARTS 3
10%
26%42%
22%
0-6,000
6,000-10,000
10,000-15,000
More than 15,000
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(4.) Desire to become financial consultant
TABLE 4
S.NO. DESIRE TO BECOME
FINANCIAL
CONSULTANT
NO. OF
RESPONDENT
FREQUENCY
OF %
1 YES 32 64
2 NO 18 36
GRAND TOTAL 50 100%
INFERANCE:
There were 50 respondents in which 32 persons were highly interested to become
financial consultant of ITGI. These data shows the brand image of ITGI among
people not only Metros but also in suburban
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CHART 4
64%
36% Yes
No
.
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(5.) Interest to buy Different policies
TABLE 5
S.NO NO. OF
RESPONDENT
RESPONSE
1 30 YES
2 20 NO
INFERANCE:
According to data 60% of respondents were interested to buy different policies of
ITGI, 40% respondents were not interested to buy policies.
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CHART 5
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(6.) Influencing Factor to interest for ITGI
TABLE 6
S.NO. INFLUENCING
FACTOR
NO. OF
RESPONDENT
FREQUENCY
OF %
1 BRAND NAME 26 52
2 MARKET VALUE 14 28
3 QUALITY &
SERVICE
10 20
GRAND TATAL 50 100.0
INFERANCE:
Above data shows that people are aware about ITGI through Brand image in market
that means influencing factors to interest for ITGI is Brand Name of Company.
Second factor is Market Value of company and third is best Qualities and Services,
which are provided by ITGI
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CHART 6
52%28%
20%Brand Name
Market Value
Quality & Service
.
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(7.) Contributing Factor to become Insurance Advisor
Table 7
S.NO. NO. OF
RESPONDENT
FREQUENCY
OF %
1 FRIENDS ADVICE 18 36
2 ADVERTISEMENT 10 20
3 COMPANY'S
REPUTATION
22 44
GRAND TOTAL 50 100.0
INFERANCE:
Above chart shows that the most important contributing factor to become Financial
Consultant was the Friends Advice. The second contributing factor was the
Companys Reputations in market. Advertisement was the third contributing factors.
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(8.) Size of Social Contract
TABLE 8
S.NO. SOCIAL CONTRACT NO. OF
RESPONDENT
FREQUENCY
OF %
1 RELATIVES 32 64
2 FRIENDS 18 36
INFERANCE:
Above data shows that the size of social contact of respondents were 64% Relatives
and 36% Friends.
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CHART 8
64%
36%
Relatives
Friends
.
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(9). Having any other General Insurance Policy
TABLE 9
S.NO. RESPONSE NO. OF
RESPONDENT
FREQUENCY
OF %
1 YES 14 28
2 NO 36 72
GRAND TOTAL 50 100.0
INFERANCE:
In 50 respondents, only 14 persons having the different type of General Insurance
Policies. 36 persons have not any Policies. That means there is a little bit awareness
about private insurance companies among people.
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CHART 9
28%
72%
Yes
No
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(10.) Current Occupation
TABLE 10
S.NO. OCCUPATION NO. OF
RESPONDENT
FREQUENCY
OF %
1 SALARIED 12 24
2 STUDENT 6 12
3 SELF-EMPLOYED 22 44
4 HOUSE-WIFE 10 20
GRAND TOTAL 50 100.0
INFERANCE:
Current Occupation shows that the different working activities of persons in societies.
There were 44% people belonging to either self-employed or own business.
Housewives were only 20%. Salaried based only 24%.
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CHART 10
24%
12%
44%
20%
Salaried
Student
Self-employed
House-wife
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(11.) Educational Qualified
TABLE 11
S.NO.
EDUCATIONAL
QUALIFIED
NO. OF
RESPONDENT
FREQUENCY
OF %
110TH PASS 4 8
210+2 PASS 12 24
3GRADUATION 24 48
4 POST-
GRADUATION 10 20
GRAND TOTAL 50 100.0
INFERANCE:
Educational Qualification is very important factor to become Insurance Advisor.
Above data shows that there were 48% respondents belonging to Graduation. It
has maximum contribution in total number of respondents. Only 8% people were
belonging 10
th
Pass. The minimum criteria to become Insurance Advisor are 10+2Pass. So 24% people belonging minimum qualification to become Insurance
Advisor.
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CHART 11
8%
24%48%
20%
10th Pass
10+2 Pass
Graduation
Post-Graduation
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(4.2) STATISTICAL DATA ANALYSIS
AND ITS INTERPRETATION
TABLE -3
Chi- Square test as a test of Goodness of Fit. Its evaluating the relationship between
frequency of respondent interested and income of respondent.
HYPOTHESIS:
Null hypothesis (H0)
There is no significant relationship between the attributes.
Alternative hypothesis (Ha)-
There exist significant relationships between the attributes.
STEP 1:-
DATA following data was obtained from table 3
S.NO. INCOME FREQUANCY
1 0-6000 5
2 6000-10000 13
3 10000-15000 21
4 15000< 11
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STEP 2
Observed and Accepted frequencies
S.NO. O E O-E (O-E)2
(O-E)2/E
1 5 12.5 -7.5 56.5 4.5
2 13 12.5 0.5 0.25 0.02
3 21 12.5 8.5 72.25 5.78
4 11 12.5 -1.5 2.25 0.18
TOTAL 50 10.48
DEGREE OF FREEDOM:
d.f =k-1
=4-1
=3
STEP 3
Here the calculated value is 10.48. Tabulated value at 3 d.f and at 5% level of
significant level is 7.815. So the calculated chi-square value is greater than the table
value.
INFERENCE:
Since the calculate value is more than the tabulated value, and falls in critical region,
the null hypothesis is rejected i.e income of respondent is associated with frequency
of respondent.
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CHAPTER V
(5.1) RECOMMENDATION
As we know that money investment is very sensitive and crucial decision. Each and
every individual wants to minimum risk while investing the money in Insurance
sector. Insurance Advisor sells policies, so, public faith on Insurance Advisor is very
necessary to sell the policies.
Till days, public believe on public sectors Insurance Advisor. They do not believe
hundred percent on private Insurance Advisor.
Recommendations are:-
To create awareness among people about private insurance companies not only
in Metros but also in rural areas through advertisement activity.
Public should be aware about IRDA Rules and Regulation about Private
Insurance Companies through Advertisement in daily news paper as well as T.
V & Radio.
Insurance Advisor of ITGI must be trained technically and professionally so
that they could be able to influence customers easily, for this company should
give training of 15 days in 6 month to employees.
ITGI should take help of Consultancy Company while recruitment of
Insurance advisor. They should also take help of Newspaper while recruitment
of Advisor.
People should be aware about the benefits while becoming the InsuranceAdvisor of IFFCO TOKIO GENERAL INSURANCE LTD. For this ITGI
should start some public awareness programs in rural or suburban areas.
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CHAPTER VI
ANNEXURE
QUESTIONNAIRE
BIBLIOGRAPHY
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QUESTIONNAIRE
SURVEY FOR HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
Dear Sir/Madam,
I am doing a project for HDFC Standard Life Insurance Co. Ltd. HDFC
Standard Life is a joint venture of HDFC Ltd., Indias largest housing finance
company and Standard Life is Europes largest mutual fund company, and
is one of Indias leading Insurance company.
Would you be willing to participate and answer a few questions? If yes please
give me the following information: -
Personal Information: -
Name: __________________________________________________________
Age: ___________________________________________________________
Sex: ___________________________________________________________
Office Address: Residential Address :
_________________________ ________________________
_________________________ ________________________
_________________________ ________________________
Phone No. _______________ Phone No. ______________
SECTION I
Family background:
How many members do you have in your family? ________________
How many dependents do you have? __________________________
How much of them are earning? ______________________________
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BIBLIOGRAPHY
Books:-
1. Kotler Philip, Marketing Management
2. Business Research Methods(2004), Tata McGraw Hill Edition
3. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in
Practice; Kogan Page limited, 1st South Asian edition 2004.
4. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. G Stasch; Marketing
Research; All India Traveller Book Seller, 7
th
edition.
5. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook
of Marketing Skills; SAGE Publications.
6. Malhotra Naresh, Marketing Research, Prentice Hall of India.
Websites:
www.mimeo.com
www.google.com
www.hoovers.com
www.wikipedia.org
www.mouthshut.com
www.fedex.com
www.howstuffworks.com
www.google.com
www.isoft.com
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www.abnamro.com
www.onlineprinting.com
www.irdaindia.org
www.itgi.co.in
Insurance Journal: - Institute of Insurance India.
Magazines: - Insurance, Business India.
http://www.online/http://www.irdaindia.org/http://www.irdaindia.org/http://www.irdaindia.org/http://www.online/Top Related