PROJECT REPORT
Batch 2009 - 2012
ING Vysya Life Insurance Pvt. Ltd.
Submitted in fulfillment of Year III of BBA
From
PGRRCDE
Osmania University, Hyderabad
SUBMITTED TO: SUBMITTED BY:Mr. Kshitz Jain Somendar kumar Meena
(PROJECT GUIDE)
Mr. Jogendra Yadav ENROLL NO. -941005143
_____________
(INDUSTRY GUIDE)
Through
CERTIFICATE
This is to certify that Somendar kumar Meena a student of BBA Last Year (Bachelors in
Business Administration) 2009-12, UEI Global, a Berggruen Venture, has undergone summer
training from June to August in our organization ING Vysya Life Insurance Pvt. Ltd.
During her summer training He was found regular, sincere and took keen interest in training.
We wish her success in her future endeavors.
Industry Guide
Declaration
I Somendar kumar Meena student of UEI Global Jaipur Institute hereby declare that the Project
Report entitled “Comparative analysis of various products offered by ING Vysya Life Insurance
Pvt. Ltd. submitted, is my original work and the dissertation has not formed the basis for the
award of any degree, diploma, associate ship, fellowship or similar other titles. It has not been
submitted to any other university or Institution for the award of any degree or diploma.
Place: Jaipur Signature of Student
Date : Name :Somendar kumar Meena
En. No. 9414005143
Acknowledgement
I would like to take this opportunity as a platform to thank various individuals, without the
support of whom, this project would not have been successful.
I would like to express my heartfelt gratitude and thanks to Mr. Jogendra yadav (Industrial
Guide) for his guidance and support throughout this study. I am thankful to my Institute for
providing me with proper resources and fostering my research work.
I would like to take this opportunity to thank all the respondents who trusted me and gave me
their valuable insight. I also thank the Faculty Supervisors and Industrial supervisors under
whose able guidance and kind cooperation, I was able to complete my study titled,
“________________________________________________”.
I also thank the people from ING Life Insurance gave me proper knowledge about the company.
My acknowledgement would not be complete without thanking Mr./Ms.____________,
Mr.Jogendra yadav and Mr. Punit sexena who gave me proper guidelines, knowledge and support
for our summer training project.
I have put in my best efforts to make this project as informative and understandable as
possible. Every effort has been made to enhance the quality of work. However, I owe the sole
responsibility of the shortcomings, if any, in the study
Name & Signature of Student Date:
Preface
The Summer Internship Program forms an important component of education at UEI Global. It is
an attempt to bridge the gap between the academic institution and the corporate world. It provides
us an opportunity to apply the concepts learnt in real life situations.
The summer internship helps us in exploring our skills and capabilities. This internship program
makes a mark of hard work, sincerity, knowledge and ethics on the host organization. It would
also be a great learning experience since it enables us to apply theory to practice and observe and
learn the current trends in the market.
It provides an opportunity for us to satisfy our inquisitiveness about corporate, provides exposure
to technical skills, and helps us to acquire social skills by being in constant interaction with the
professionals of other organizations.
It helps us in developing a network, which will be useful in enhancing in career prospects. This
will help to gain a deeper understanding of the work, culture, deadlines, pressures etc. of an
organization.
Thus, it helps to develop the qualities of a Manager by involving teamwork, goal orientation and
managing interpersonal relationships and by creating awareness about strengths and weaknesses
in the work environment.
Table Contents
PAGE
Chapter One INTRODUCTION
Chapter Two OBJECTIVE AND METHODOLOGY
Chapter Three ORGANISATION PROFILE
Chapter Four HISTORY OF THE ING
Chapter Five HISTORY OF INSURANCE SECTOR
Chapter Six ANALYSIS AND INTERPRETATION OF DATA
Chapter Seven CONCLUSION AND SUGGESTIONS
Chapter Eight LIMITATIONS OF THE STUDY
Chapter Nine BIBLOGRAPHY
Chapter Ten Revitalization of Rural Markets through Insurance
Chapter I
INTRODUCTION
Introduction to Insurance
Insurance is defined as a cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Risk is uncertainty of a financial loss. The insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk to a person injured against the risk.
Introduction to Life Insurance
According to the U.S. Life Office Management Inc. (LOMC), "Life Insurance provides a sum of money if the person who is insured dies whilst the policy is in effect."
Life insurance has come a long way from the earlier days when it was originally conceived as a risk-covering medium for short periods of time, covering temporary risk situations, such as sea voyages. As life insurance became more established, it was realized what a useful tool it was for a number of situations that includes temporary needs/threats, savings, investment, retirement etc.
History of Life Insurance
Life insurance made its first appearance in England in 16th century. The first registered life office in England was the hand in hand society in 1696. The famous 'Amicable Society' for a perpetual assurance office started its operation since 1706. Life insurance did not prosper in the United States during the 18 th century, because of serious fluctuations in death-rate.
Life Insurance in India
In India some Europeans started the first life insurance company in Bengal Presidency, viz., The Orient Life Insurance in 1818. The Year 1870 was a year of land mark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian life office, viz., Bombay Mutual Life Assurance Society in 1871.
Up to end of 19th century, the insurance was in the inceptional stage. Therefore no legislation was required till that usually the Indian Company Acts 1883 was applicable. Since 1956, with the nationalization of insurance industry, the state – run Life Insurance Corporation of India (LIC) has held the monopoly in India. Then comes the LPG (Liberalisation, Privatisation and Globalisation) that paved entry of Private and Foreign Life Insurance players in India during the late 90's and earlier 2000's. Currently India and China are the most lucrative insurance markets in the world. They constitute the home of half of the population of the world and their recent rapid economic development makes them attractive for foreign investment. The share of life insurance premium to GDP of India was 1.29 percent, which is abysmal in the global standard. Despite these opportunities, however, there is also a rough ride ahead for the new players in India. This is because, unlike in the West, insurance is sold more as an instrument of savings in India than as a product offering for protection and security. LIC's 1996 insurance survey reveals that more than 40 percent of insurance-buyers look at insurance products as a means of savings. Risk coverage is only a secondary objective for them and nearly 26 percent of the insurance policies sold are on considerations of old age security. Only 18 percent of insurance policies are sold on death risk considerations.
Insurance Regulatory and Development Authority (IRDA)
The regulatory body for insurance IRDA has been established with the following mission:
"To protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto."
Private Players in Indian Life Insurance
The major players in Indian life insurance sector include:
* Allianz Bajaj Life Insurance Company Ltd.,
* Aviva Life Insurance Co. India Pvt. Ltd.,
* AMP SANMAR Assurance Company Ltd.,
* Birla Sun Life Insurance Company Ltd.,
* HDFC Standard Life Insurance Company Ltd.,
* ICICI Prudential Life Insurance Company Ltd.,
* ING Vysya Life Insurance Company Private Ltd.,
* Life Insurance Corporation of India
* Max New York Life Insurance Co. Ltd.,
* MetLife India Insurance Company Pvt. Ltd.,
* Om Kotak Mahindra Life Insurance Co. Ltd.,
* SBI Life Insurance Company Ltd.,
* Sahara India Insurance Company Ltd.,
* Tata AIG Life Insurance Company Ltd.,
The market share for LIC is 90 percent and other players share only the remaining 10 percent.
Market Potential for Private Life Insurance Companies in India
It has been found out that:
* 85 percent of the Indians prefer LIC than any other insurance companies.
* 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important factors influencing Indians in opting for Life Insurance
* Only few of the Indians are aware of private life insurance companies.
* Most of the Indians are of the opinion that private insurance companies would be able to perform well in the long run.
* Most of the Indians are interested in 'Money back' policies than others
* Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs
* There is significant relationship existing between monthly household income and amount insured
* Based on the monthly household income, Indians prefer to their investment needs like bank deposit, post office schemes, real estate, insurance, gold, chit funds, shares etc.
* Agents are mostly responsible for selling insurance products in India
Conclusion
The market potential for private insurance companies is found to be greater in the long run
as most of the Indians are of the opinion that, private insurance companies would be able to
perform well in the future. The private and foreign insurance companies have to immediate
steps in appointing more number of agents and/or advisors in addition to the employees as it
has been found out that agents are the best channel to reach the general public regarding
selling of insurance products. The private and foreign insurance companies have to
concentrate on the factors like 'Prevention of Loss', 'Assured Returns' and 'Long term
Investment'. They can also focus on an insurance amount of Rs. 1 – 2 lakhs with 'money
back policies'. Hence, the market has potential. The private and foreign insurance
companies that are taking immediate steps can tap it.
The project titled "Comparative analysis of products offered by ING” is a study of
the project undertaken in the ING Vysya Life Insurance Pvt. Ltd. The report covers
a detailed study of the ING group, its history, the businesses it has
ventured into and its organizational structure. The report also deals with an in-
depth study of the Insurance industry in India. The industry profile helps to gain an
insight into the evolution of the industry and competitive dynamics prevalent in the
market. It discusses the significant developments in the industry and analyzes the
key trends and issues. The profile provides inputs in strategic business planning of
industry professionals. The various sections of industry profile has been discussed
below.
About ING in India
ING operates through three businesses in India, ING Vysya Life Insurance, ING
Vysya Bank and ING Investment Management. ING Vysya Bank is a premier
private sector bank with over 76-year heritage and 1.5 million satisfied customers.
ING Investment Management believes in providing investors with the knowledge
& opportunity to manage their future easily.
ING Life India, in its 10th year of operations, is a part of the ING Group. ING Life
entered the private life insurance industry in India in September 2001. The
company has issued over 1 million policies and is staffed by over 6500 employees.
Headquartered in Bangalore, ING Life India is currently present in 229 cities across
251 branch offices. In addition, the company distributes its products in several parts
of the country through its partner's presence.
ING Life India distributes its products through two channels, the Tied Agency
Force and the Alternate Channel. The Tied Agency force comprises over 50,000
ING Life Advisors, spread across the country. The Alternate Channels business
within ING Life India is a fast growing distribution channel, and includes the Banc
assurance partner (ING Vysya Bank), Referral Partners, Corporate Agents and
Brokers.
ING was established as a Naamloze Vennootschap (public limited liability
company) on March 4, 1991, through the merger of Nationale-Nederlanden, which
was the largest insurer in the Netherlands, and NMB Postbank Group, which was
one of the largest banks in the Netherlands. ING Group N.V. is incorporated under
the laws of the Netherlands.
OBJECTIVE AND METHODOLOGY
COMPANY OBJECTIVE:
ING aims to deliver financial products and services in the way that our customers want them delivered: with exemplary service and maximum convenience at competitive prices.
ING – MISSION
Mission statement: To set the standard in helping our customers manage their financial future.
ING- Tag Line:
Shaping our future
ING LIFE INDIA-CURRENT SHAREHOLDING:
26% 50%
11.53% 12.47%
ING PARTENERS IN INDIA:
1. Exide Industries Limited-is the market leader in both automotive and industrial segments.
‘EXIDE’ and ‘SF’ (Standard Furukawa), the flagship brands of the Company, which are the
leading battery brands in the country.
2. Rajan Raheja the promoter of the group is ranked 30 th by Forbes among Indians by New
worth... His Net worth stands at: $2.15 billion.
3. Gujarat Abuja Cements Ltd.-the third largest cement company in India.
4. Enam Group-Enam Group is one of India’s leading financial service providers reputed for its
ability to perceive the true potential of businesses and enhance their value. The culture at
Enam Group is deeply rooted in ethics, innovation and financial sobriety.
ORGANISATION PROFILE
ING- Company Profile:
ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank
Group. During the past years ING has become a multinational with diverse international
activities.
The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De
Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De
Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the
legal predecessors of the ‘founding fathers’ of ING: Nationale-Nederlanden and NMB Post bank
Group.
The founding of ING as one company was started in 1990 when the legal restrictions on mergers
between insurers and banks were lifted in the Netherlands. This prompted insurance company
Nationale-Nederlanden and banking company NMB Post bank Group to enter into negotiations.
The merger into Internationale Nederlanden Group took place in 1991. The market soon
abbreviated the name to I-N-G. The company followed suit by changing the statutory name to
ING Groep N.V. Since 1991, ING has developed from a Dutch company with some international
business to a multinational with Dutch roots. This was achieved through a mixture of organic
growth, such as the creation of ING Direct from scratch, as well as various large acquisitions.
The first large acquisition took place in 1995, when ING took over Barings Bank. This
acquisition increased the brand recognition of ING around the world and strengthened its
wholesale banking presence in the emerging markets. And then there was Life of Georgia. This
insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a significant
increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably.
However in 2004, ING as a group had become well-established in both regions and Life of
Geogeria was sold. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened
the Group’s presence in the Benelux. In addition, the activities in de United States were doubled
as a result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna
financial services and merchant bank furman Selz
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization
is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail
market share in mature markets. Finally, ING distinguishes itself internationally as a provider of
‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension plans for companies
and their employees.
HISTORY OF THE ING
ING’s orange lion goes way back to ING’s Dutch roots. Orange is the national color of the
Netherlands, and the lion the country’s national symbol. Several founding ING companies, banks
and insurers, had or still have the lion in their logos.
Logo’s from banking history of ING:
One of ING’s founding companies; the Rijkspostspaarbank was established in 1881.
Government-owned, the company had the Dutch coat of arms flanked by two lions in its logo
surmounting the motto ‘je maintiendrai’ (I will maintain). In the 1950s and 1960s, another ING
founding company, the Nederlandsche Middenstandsbank (NMB), used the same logo on its
stationery and official documents.
The logo was modernized several times in the course of the merger of Rijkspostspaarbank and the
Postcheque- & Girodienst into Postgiro/Rijkspostbankspaarbank, culminating in privatization as
the Postbank in 1986. The lion rampant became recumbent, lost a little of its wild mane and
acquired a longer tail.
Logos from our insurance history The original insurance companies, De Nederlanden van 1845
and the Nationale Levensverzekering-Bank, both had lions in their logos. For a long time De
Nederlanden van 1845 used the Dutch coat of arms. The Nationale had a logo depicting a virgin
with a lion at her feet, symbolizing the company’s courage in looking after its customers’ savings
deposits. The two companies merged and became Nationale-Nederlanden
The lion survived
The logo was very much a negotiating issue when NMB and Postbank merged, and later on when NMB Postbank Group and Nationale-Nederlanden joined forces but the lion has survived all mergers.
ING current logo
The orange lion adorns their global ING logo.
Business Divisions: ING is serving its services in three fields of areas which are as follows:
HISTORY OF INSURANCE SECTORThe business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important
milestones in the life insurance business in India are given in the table 1
Table 1: milestone’s in the life insurance business in India
year Milestones in the life insurance business in India
1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business
1928 The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the general insurance business in
India are given below in table 1
year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business
1957 General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices
1968 The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies’ viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
ANALYSIS AND INTERPARETATION OF DATA
EXECUTIVE SUMMARY
The project titled "Comparative analysis of products offered by ING” is a study of the project
undertaken in the ING Vysya Life Insurance Pvt. Ltd. The report covers a detailed study of the
ING group, its history, the businesses it has ventured into and its organizational
structure. The report also deals with an in-depth study of the Insurance industry in India. The
industry profile helps to gain an insight into the evolution of the industry and competitive
dynamics prevalent in the market. It discusses the significant developments in the industry and
analyzes the key trends and issues. The profile provides inputs in strategic business planning of
industry professionals. The various sections of industry profile has been discussed below.
Industry Snapshot
This section gives a holistic overview of the industry. It starts with defining the market and goes
on to give historical and current market size figures. It also clearly illustrates the major segments
of the market which would be discussed later on in the detailed report.
Industry Analysis
It involves a comprehensive analysis of the industry and its market segments. This section
discusses the key developments that have taken place in the industry. It also identifies and
analyzes the driving factors and challenges of the industry. A description of the regulatory
structure tells us about the major regulatory bodies, laws and government policies.
Competitor Assessment
This section compares the major competitors in the industry. The Competitors At-a-Glance is
aimed at giving an overview of the competitive landscape in the industry.
Investment sector in India has seen a lot of changes in past few years with multinational companies coming
into the country, bringing in their professional expertise in managing funds worldwide. In the past few
years there has been a paradigm shift going on in the investment industry in India. Now investors have a
wide range of Schemes to choose from depending on their individual profiles.
Guidelines on KYC Norms and Cash Transaction by RBI
1. Guidelines for New Account
2. Procedures for existing customers
3. ING policy on Know your customer
The analysis of various products includes a response of various clients under different income
slabs and comparison on the basis of risk, return and time preference of customers for these
purpose charts and tables are drawn with the data collected through questionnaire.
1.1
1. ING.
1.2 RESEARCH METHODOLOGY:
In this project report two types of data used are as follows:
1. Primary data
2. Secondary data
This study is entirely depends on the secondary data collected through the ING and
related links. Analysis will be done with the help of following:
1. A table will be drawn with relevant statistics.
2. Each table will be analyses with a bar chart or a pie chart.
3. Finding will be reported at the end of project.
4. Data will be presented in both qualitative as well as quantitative form.
1Data is limited to consumers in selected areas hence the study output cannot be generalized.
Time is one of the constraints since the time frame of the study lasted for two month.
1.5 CONCLUSION:
The project undertaken in the ING Vysya Life Insurance was a good learning experience
2
HISTORY OF INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important
milestones in the life insurance business in India are given in the table 1
Table 1: milestone’s in the life insurance business in India
year Milestones in the life insurance business in India
1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business
1928 The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses
1938 Earlier legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the general insurance business in
India are given below in table 1
year Milestones in the general insurance business in India
1907 The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business
1957 General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices
1968 The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies’ viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
Insurance Market- Present: [Since 2001]
.
Life Insurance
The traditional life insurance business for the LIC has been a little more than a savings policy.
Term life (where the insurance company pays a predetermined amount if the policyholder dies
within a given time but it pays nothing if the policyholder does not die) has accounted for less
than 2% of the insurance premium of the LIC (Mitra and Nayak, 2001). For the new life
insurance companies, term life policies would be the main line of business.
Health Insurance
Health insurance expenditure in India is roughly 6% of GDP, much higher than most other
countries with the same level of economic development. Of that, 4.7% is private and the rest is
public. What is even more striking is that 4.5% are out of pocket expenditure (Berman, 1996).
There has been an almost total failure of the public health care system in India. This creates an
opportunity for the new insurance companies.
Thus, private insurance companies will be able to sell health insurance to a vast number of
families who would like to have health care cover but do not have it.
Pension
The pension system in India is in its infancy. There are generally three forms of plans: provident
funds, gratuities and pension funds. Most of the pension schemes are confined to government
employees (and some large companies). The vast majority of workers are in the informal sector.
As a result, most workers do not have any retirement benefits to fall back on after retirement.
Total assets of all the pension plans in India amount to less than USD 40 billion.
Therefore, there is a huge scope for the development of pension funds in India. The finance
minister of India has repeatedly asserted that a Latin American style reform of the privatized
pension system in India would be welcome (Roy, 1997). Given all the pros and cons, it is not
clear whether such a wholesale privatization would really benefit India or not (Sinha, 2000).
MARKET SHARE OF INDIAN INSURANCE INDUSTRY
The introduction of private players in the industry has added value to the industry. The initiatives
taken by the private players are very competitive and have given immense competition to the on
time monopoly of the market LIC. Since the advent of the private players in the market the
industry has seen new and innovative steps taken by the players in this sector. The new players
have improved the service quality of the insurance. As a result LIC down the years have seen the
declining phase in its career. The market share was distributed among the private players. Though
LIC still holds the 75% of the insurance sector but the upcoming natures of these private players
are enough to give more competition to LIC in the near future. LIC market share has creased
from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the market share
of the insurance industry. Table 3 shows the mane of the player in the market.
TABLE NO: 3 NAME OF THE INSURANCE COMPANY AND THEIR SHARE HOLDING
PATTEN
There are a total of 13 life insurance companies operating in India, of which one is a Public
Sector Undertaking and the balance 12 are Private Sector Enterprises.
List of Companies are indicated below:-
TABLE NO: 4 NAME OF THE LIFE INSURANCE COMPANY AND THE SHARE
HOLDING PATTEN
Name of the company Nature of Holding
Allianz Bajaj Life Insurance Co Private
Aviva Life Insurance Private
Birla Sun Life Insurance Co Private
HDFC Standard Life Insurance Co Private
ICICI Prudential Life Insurance Co Private
ING Vysya Life Insurance Co. Private
Life Insurance Corporation of India Public
Max New York Life Insurance Co. Private
MetLife Insurance Co. Private
Name of the Insurance Company Shareholding
Agricultural Insurance Co Bank and Public Ins Co
Bajaj Allianz General Insurance Co. Ltd. Privately Held
Cholamandalam MS General Insurance Co. Ltd. Privately Held
Export Credit Guarantee Company Public Sector
HDFC Chubb General Insurance Co. Ltd. Privately Held
ICICI Lombard General Insurance Co. Privately Held
IFFCO-Tokyo General Insurance Co. Ltd. Privately Held
National Insurance Co. Ltd. Public Sector
Oriental Insurance Co. Ltd. Public Sector
Reliance General Insurance Co. Ltd. Privately Held
Royal Sundaram Alliance General Insurance Co. Ltd. Privately Held
Tata AIG General Insurance Co. Ltd. Privately Held
United India Insurance Co. Ltd. Public Sector
Om Kotak Mahindra Life Insurance Private
Reliance insurance Private
SBI Life Insurance Co Private
TATA- AIG Life Insurance Company Private
Current market share of different Insurance companies:
Current Market share amongst private players in India:
Indian Insurance Market
The Indian insurance market in spite of having a history covering almost two centuries took a
turn after the establishment of the Life insurance Corporation in India in 1956. From being an
open competitive market to being nationalized and then back to a liberalized market again, the
insurance sector has witnessed all aspects of contest.
The Indian insurance market conventionally focused around life insurance until recently, a
various range of other insurance policies covering sectors like medical, automobile, health and
other classes falling under general insurance came up, generally provided by the private
companies. The life insurance of India added 7% to the GDP of the economy in 2009, an
immense growth since 1999, when the gates were opened for the private company in the market.
List of Life Insurance companies in India till 20111. Life Insurance Corporation of India 2. MetLife India Life Insurance 3. ICICI Prudential 4. Bajaj Allianz Life Insurance 5. Max New York Life Insurance 6. Sahara Life Insurance 7. TATA AIG Life Insurance 8. HDFC Standard Life 9. Birla Sunlife 10. SBI Life Insurance Company Limited 11. Kotak Life Insurance
12. Aviva Life Insurance 13. Reliance Life Insurance Company Limited – Formerly known as AMP Sanmar LIC 14. ING Vysya Life Insurance 15. Shriram Life Insurance 16. Bharti AXA Life Insurance Co Ltd 17. Future Generali Life Insurance Co Ltd 18. IDBI Fortis Life Insurance 19. AEGON Religare Life Insurance 1 20. DLF Pramerica Life Insurance 21. Canara HSBC Oriental Bank of Commerce Life Insurance 22. Star Union Dai-ichi Life Insurance Co. Ltd. 23. IndiaFirst Life Insurance Company
Major players in the market:
Top 10 Players in Insurance Companies in India
Life Insurance Corporation of India
Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the
amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident.
The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in
the same year. The LIC was created with the goal of reaching all the insurable people in the
country and providing them financial coverage at a reasonable price. In the year 1956, LIC had 5
zonal offices, 33 divisional offices and 212 branch offices. With time there was a need for a
branch office at every district headquarter and many branches were opened, which raised the pace
of the organization.
LIC now has 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and
the corporate office. At present, online premium collection facility is being offered in selected
cities as LIC has tied up with some banks and service providers. For providing customer
satisfaction the organization has introduced various schemes such as ECS, ATM premium
payment facility, IVRS, Info centers which are set up in various cities including Mumbai,
Bangalore, Chennai, Kolkata, New Delhi, Pune and many more. It has also come up with
SATELLITE SAMPARK offices providing easy access to policyholders. LIC has crossed many
milestones and set standards for itself fostering unmatched performance.
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited
and Allianz AG of Germany.
Bajaj Allianz General Insurance came into existence on 2nd May 2001, when it got certification
of Registration from the Insurance and Regulatory Development Authority. Bajaj Auto has a
share of 74%, whereas Allianz has the remaining 26%. In the very first year, the company made a
strong position for itself in the industry and was reckoned amongst the top private insurers. The
premium income of the company as on 31st March 2006 was Rs. 1285 crores, whereas the profit
after tax made was Rs. 52 crores. Bajaj Allianz has a Pan India network covering over 100 towns
from Jammu to Thiruvananthapuram and aims to spread its operations in many other cities.
Bajaj Allianz serves customers in all areas of General and Health Insurance as well as Risk
Management. It has in-depth knowledge of the local market and extensive distribution network
with expertise, stability and experience. It has a capital base of Rs. 147 crores, and is allowed to
serve both the General and Health insurance.
ICICI Prudential Life Insurance Company
ICICI Prudential is a joint venture between ICICI bank and prudential plc, both having strong
operations in their respective countries. ICICI bank is one of the leading banks in India providing
quality financial services and Prudential is an international financial service provider
headquartered at United Kingdom. ICICI and Prudential have respective shares of 74% and 26%.
The Company started operating in December 2000. Currently, total capital with the company is
Rs. 18.15 billion.
ICICI Prudential was the first insurance company in India to receive a National Insurer Financial
Strength rating of AAA (Ind.) from Fitch ratings. It has been given the honour of being among
the Most Trusted Brands in the industry by Economic Times for 3 consecutive years. It has a
network of 450 branches, over 1, 50,000 insurance advisors and 18 banc assurance partners.
As the organization grows and develops, it keeps introducing new range of products and services
and enhancing the quality of plans and solutions given to the customers. The distribution network
is one of the best, and is spreading across the length and breadth of the country. As on December
31, 2006, it had made imprints in over 360 cities and towns in India. It has over 1, 75,000
advisors across the country, serving clients with full commitment. It has tied up with ICICI Bank,
Bank of India, and Federal Bank, Lord Krishna Bank, some co-operative banks, NGOs, MFIs and
corporate for making inroads into the rural areas.
ICICI Lombard General Insurance
ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank
Limited and Fairfax Financial Holdings Limited. ICICI bank is India's second largest bank;
Fairfax is Canada-based, engaged in general insurance, reinsurance, insurance claims
management and investment management. ICICI Lombard General Insurance Company
commenced its operations in general insurance business in August 2001.
ICICI Lombard is India's number one private insurance company; it is also the first general
insurance company to be given certification of ISO 9001:2000. The company provides simple
and fast documentation, fast claims settlement, online policy issuance, and comprehensive
product line.
It has also been given iAAA rating by ICRA for having highest claims paying ability. In the very
first year of operations, it was able to reach financial breakeven and achieve underwriting
breakeven in the second year. Security is provided through encryption and it is the first company
to provide digitally signed documents. It has been honored as the most Customer Responsive
Company by the Economic Times. A time of India has designated it as the Best Housing
Insurance in the Smart Living Awards by 360 degrees. It has also been awarded Gold Shield for
"Excellence in Financial Reporting". It is among the top three companies to be awarded the
"General Insurance Company of the Year" at the 10th Asia Insurance Industry Awards.
Birla Sun Life Insurance Company Limited
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Group
and Sun Life Financial Inc. BSLI started functioning in March 2001 after getting the certificate of
registration from IRDA.
Birla Sun Life Insurance Company Limited introduced unit Linked Life Insurance Solutions in
India. Within a short span of time it was able to establish itself as a leading player in the Private
Life Insurance Industry. It has been innovative and come up with customer-centric products to
provide safety and services. The company has web-enabled IT systems for better customer
services and a strong distribution channel which is easily approachable. The company shows
corporate governance and a high degree of transparency in all business practices. It has
professional knowledge and global expertise of Aditya Birla Group.
Birla Sun life Insurance has been providing first class financial solutions to its customers and has
been amongst the top three private sector life insurance companies.
TATA AIG General Insurance
Tata AIG General Insurance Company Ltd. is a joint venture between Tata Sons and American
International Group, Inc. (AIG). The Tata Group is holding 74 per cent stake and the rest 26
percent is held by AIG. The company has got the expertise, knowledge and strength of both the
organizations. Tata AIG General Insurance Company was founded on January 22, 2001. It offers
general insurance in various categories, such as automobile, home, personal accident, travel,
energy, marine, property and casualty and specialized financial solutions.
Jamsetji Tata founded Tata Group in 1860s. It has an estimated turnover of around US $ 14.25
billion. It has spread its operations in various fields such as steel, power, hotels, airlines, software
services, communications, etc. Some of its major projects have been Tata Tea, Tata Steel, Tata
Chemicals, Titan, Tanishq, Voltas, Westside and Tata Motors. Its imprints are made on the
telecommunication and technology sector. Regarding telecommunications, it is the largest
international long distance service provider. Approximately two- third of the equity of Tata Sons
is held by a host of national institutions in science and technology, medical services and
performing arts. By combining the ethical values with business acumen and fulfilling its
commitment to the nation, it has become one of the largest groups in India.
The organization caters to individuals, small businesses and corporate. Individual plans include
motor, home, accident & health and travel insurance, whereas corporate plans include accident &
health, travel, energy, property, marine and liability plans.
,
S
atellite insurance.
The company wants to develop itself as the best general insurance company in the industry. It is
concerned about the society and community, and provides financial security at reasonable prices.
The company gives utmost importance to customer needs and there is transparency in its
operations.
IFFCO Tokyo General Insurance
IFFCO Tokio General Insurance is a customer-centric company aiming to be easily accessible
and approachable to all sections of society. It offers products and services that provide quality at
reasonable cost. The organization has the deep knowledge of IFFCO and thus developed a
business plan that has both stability and integrity.
.The Company focuses on delivering creative solutions to its customers. IFFCO Tokio General
Insurance has 273 employees present in 68 cities, dedicated to give full satisfaction to the
customers. It is the first company to underwrite mega policies for a fertilizer and automobile
client.
The Oriental Insurance Company Ltd.
The Oriental Insurance Company Ltd. (OICL) is one of the general insurance companies under
the support of the General Insurance Corporation (GIC) of India. It came into existence in the
year 1947 and is one of the oldest organizations in India. It caters to all sections and sectors
Ranging from MNCs to rural sector. The headquarters of the company are situated at Delhi and it
has 21 Regional Offices, 311 Divisional Offices and 635 Branch offices.
HDFC Standard Life Insurance Company Limited
HDFC Standard Life Insurance Company Limited is one of the first companies to be licensed by
IRDA to operate in the Insurance sector. The company came into existence on 14th August 2000.
Both Crisil and ICRA have honored it with AAA Ratings. Similarly Moody's and Standard and
Poor’s have also honored it AAA ratings. HDFC holds 81.4% share in HDFC and the remaining
18.6% stake is with Standard Life. It integrates the strong expertise and stability of Standard Life
and HDFC.
2.2 BACKGROUND OF THE STUDY:
Investment
Concept of Investment:
Investment is the employment of funds with the aim of generating additional income or growth in
value. It involves the commitment of resources which have been saved or put away from current
consumption in the hope that some benefit will occur in the future.
Investment is putting money into something with the expectation of profit. More specifically,
investment is the commitment of money or capital to the purchase of financial instruments or
other assets so as to gain profitable returns in the form of interest, dividends, or appreciation of
the value of the instrument capital gains. It is related to saving or deferring consumption.
Investment is involved in many areas of the economy, such as business management and finance
no matter for households, firms, or governments. An investment involves the choice by an
individual or an organization, such as a pension fund, after some analysis or thought, to place or
lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial
derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has
certain level of risk and provides the possibility of generating returns over a period of time.
Investment comes with the risk of the loss of the principal sum. The investment that has not been
thoroughly analyzed can be highly risky with respect to the investment owner because the
possibility of losing money is not within the owner's control. The difference between speculation
and investment can be subtle. It depends on the investment owner's mind whether the purpose is
for lending the resource to someone else for economic purpose or not.
In the case of investment, rather than store the good produced or its money equivalent, the
investor chooses to use that good either to create a durable consumer or producer good, or to lend
the original saved good to another in exchange for either interest or a share of the profits. In terms
of financial assets, these are often marketable securities such as a company stock (an equity
investment) or bonds (a debt investment). At times, the goal of the investment is to produce
future cash flows, while at others it may be for the purpose of gaining access to more assets by
establishing control or influence over the operation of a second company (the investee).
Business firms or organizations raise funds from investors in the form of equities and debts
(collectively known as the capital structure) and further reinvest it into various investment
schemes by carefully analyzing the returns in order to meet out their obligations relating to
purchase of assets which provides them long term benefits.
In finance
In finance, investment is the commitment of funds by buying securities or other monetary or
paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets,
such as gold or collectibles. Valuation is the method for assessing whether a potential investment
is worth its price. Returns on investments will follow the risk-return spectrum.
Types of financial investments include shares, other equity investment, and bonds (including
bonds denominated in foreign currencies). These financial assets are then expected to provide
income or positive future cash flows, and may increase or decrease in value yielding the investor
capital gains or losses.
Investments are often made indirectly through intermediaries, such as banks, mutual funds,
pension funds, insurance companies, collective investment schemes, and investment clubs.
Though their legal and procedural details differ, an intermediary generally makes an investment
using money from many individuals, each of whom receives a claim on the intermediary.
Within personal finance, money used to purchase shares, put in a collective investment scheme or
used to buy any asset where there is an element of capital risk is deemed an investment. Saving
within personal finance refers to money put aside, normally on a regular basis. This distinction is
important, as investment risk can cause a capital loss when an investment is sold, unlike saving(s)
where the more limited risk is cash devaluing due to inflation.
In many instances the terms saving and investment are used interchangeably, which confuses this
distinction. For example many deposit accounts are labeled as investment accounts by banks for
marketing purposes. Whether an asset is a saving(s) or an investment depends on where the
money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment. So
people invest in various financial products as well as saving schemes and in insurance sector
according to their needs, time horizon, level of risk and the return potential of the particular
product.
Concept of Insurance
Insurance is a type of financial arrangement that helps individuals, businesses and other
organizations protect themselves against unexpected or unpredictable losses or expenses.
Insurance can protect against a variety of losses or damage such as personal injury and property
damage.
It is related to the protection of economic value of assets.
Mechanism of insurance business is based on people with similar risk coming together and
sharing the loss.
It protects the economic value of an Asset thereby helping the individual to overcome an
unexpected loss of income or drain of saving.
Function
Insurance companies sell insurance policies that protect people from losses associated with
specific unplanned events. If the unplanned events covered by the insurance policy occur, the
insurance company will pay the person with the insurance policy a certain amount of money as
set out in the rules of the plan. For instance, you could purchase an insurance policy for damages
to your home and the insurance company pay for damages if the home was affected by a fire or
other events covered by the plan.
Types
Based on Today’s life style the list of types of insurance is increasing day by day. The main types
of insurance policies available in the market are:
1) Life Insurance: In this policy, the insurance company pays in case of the demise of the policy
holder or at the time of the maturity of the policy. Now a day a new policy has been launched by
LIC in which you will be covered under the insurance policy even after the maturity of the policy
2) Property Insurance: This insurance helps you to prevent the losses against theft, fire,
burglary or any natural calamity like Earthquake, Floods etc. based on the points mentioned in
the policy.
3) Health Insurance: Health Insurance consists of a package of various types of insurance
related to health. For example Medical Insurance is one the major part of health insurance
however in most of the cases, dental issues are not covered in this policy so there is another
Dental Insurance policy which covers dental problems and is also a part of health insurance. The
subcategory of health insurance also involves the injuries or accident at workplace insurance
benefits.
4) Auto Insurance: Any financial loss due to accident of a vehicle is covered under the auto
insurance policy. Sometimes the expenses on the medicines for treating injuries and all other
medical expenditure are also covered under this policy.
5) Travel Insurance: Loss of personal belongings while traveling, medical coverage, delays in
the travel are all part of the travel insurance policy.
6) Insurance at Amusement Points: This is a one of the new kinds of insurance policy (not very
popular in India) where in you are insured against the equipments that you are using at the
amusement joints. For example: if you are using boats for an independent boat ride , then they
will charge you with some extra money for an property loss(say $5) and in case of any property
damage you will not be liable to pay any amount required to repair the damaged property.
7) Credit Insurance: This type of insurance pays the loans of the policy holder in case of any
accident of the policy holder or job loss or death.
Third Party Insurance: This type of insurance covers damages caused by you (first party) to
others (third party). For more details visit third party insurance.
Apart from these above mentioned insurance policies there are many other types of insurance
policies in the market (and the list keeps on increasing) that are more or less related to these
policies however providing benefits to the policy holders in a different and unique way.
Insurance is basically divided into two categories as
TYPES OF INSURANCE
(A) Life Insurance
Term Life Insurance
Permanent Life Insurance
(B) General Insurance
Fire Insurance
Marine Insurance
Accident Insurance
(A)Life Insurance
Life Insurance is a contract providing for payment of a sum of money to the person assured or,
following him to the person entitled to receive the same, on the happening of a certain event. It is
a good method to protect your family financially, in case of death, by providing funds for the loss
of income.
A1. Term Life Insurance: Under a Term Life contract, the insurance company pays a specific
lump sum to the designated beneficiary in case of the death of the insured. These policies are
usually for 5, 10, 15, 20 or 30 years.
Term life insurance are the most popular in advance countries but were not so popular in India.
However, after the entry of the private operators and aggressive marketing by few players this
kind of policies are becoming popular. The premium on such type of policies is comparatively
quite low when compared with other types of life insurance policies, mainly due to the fact that
these policies do not carry cash value.
Plus of Term Life Insurance
- The premium payable on these policies is low as they do not carry any cash value.
- One can afford for quite high value insurance policies
Minus of Term Life Insurance
- If one survives the period of the policy, he / she does not get any money at the end of the
policy.
The premium on such policies keeps on increasing with age mainly because the risk of death of
older people is more. Over the page of 60, these policies become difficult to afford.
A2. Permanent Life Insurance:
In a Permanent Life contract, a portion of the money paid as premiums is invested in a fund that
earns interest on a tax-deferred basis. Thus, over a period of time, this policy will accumulate
certain "cash value" which you will be able to get back either during the period of the policy or at
the end of the policy.
Your need for life insurance can change over a lifetime. At any age, you should consider your
individual circumstances and the standard of living you wish to maintain for your dependents. In
most cases, you need life insurance only if someone depends on you for support. Your life
insurance premium is based on the type of insurance you buy, the amount you buy and your
chance of death while the policy is in effect. This type of policy not only provides protection for
your dependents by paying a death benefit to your designated beneficiary upon your death, but it
also allows you to use some part of the money while you are alive or at the end of the policy.
Some examples of such policies are: - Whole Life, Universal Life and Variable-Universal Life.
Endowment Policy:
These policies provide for period payment of premiums and a lump sum amount either in the
event of death of the insured or on the date of expiry of the policy, whichever occurs earlier.
Money Back Policy:
These policies provide for periodic payments of partial survival benefits during the term of the
policy itself. A unique feature associated with this type of policies is that in the event of death of
the insured during the policy term, the designated beneficiary will get the full sum assured
without deducting any of the survival benefit amounts, which have already been paid as money-
back components. Moreover, the bonus on such policies is also calculated on the full sum
assured.
Annuity/Pension Policy/Funds:
This policies / funds require the insured to pay the premium as a single lump sum or through
installments paid over a certain number of years. The insured in return will receive back a
specific sum periodically from a specified date onwards (the returns can be monthly, half yearly
or annually), either for life or for a fixed number of years. In case of the death of the insured, or
after the fixed annuity period expires for annuity payments, the invested annuity fund is refunded,
usually with some additional amounts as per the terms of the policy.
Annuities / Pension funds are different from all other forms of life insurance as an annuity
policy / fund does not provide any life insurance cover but merely offers a guaranteed income
either for life or a certain period. Therefore, this type of insurance is taken so as to get income
after the retirement.
(B) General Insurance:
General Insurance includes those insurance policies which are not covered under life insurance.
General insurance provides protection against risk of loss to assets like home, motor vehicle, etc.
Common general insurance plans include motor insurance, fire insurance, personal accident
insurance, health insurance, marine insurance etc. The most popular general insurance plans are
mentioned hereunder:
B1. Fire Insurance:
A
PROBLEM:
COMPANY PROFILE:
ING- Company Profile:
ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank
Group. During the past years ING has become a multinational with diverse international
activities.
The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De
Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De
Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the
legal predecessors of the ‘founding fathers’ of ING: Nationale-Nederlanden and NMB Post bank
Group.
The founding of ING as one company was started in 1990 when the legal restrictions on mergers
between insurers and banks were lifted in the Netherlands. This prompted insurance company
Nationale-Nederlanden and banking company NMB Post bank Group to enter into negotiations.
The merger into Internationale Nederlanden Group took place in 1991. The market soon
abbreviated the name to I-N-G. The company followed suit by changing the statutory name to
ING Groep N.V. Since 1991, ING has developed from a Dutch company with some international
business to a multinational with Dutch roots. This was achieved through a mixture of organic
growth, such as the creation of ING Direct from scratch, as well as various large acquisitions.
The first large acquisition took place in 1995, when ING took over Barings Bank. This
acquisition increased the brand recognition of ING around the world and strengthened its
wholesale banking presence in the emerging markets. And then there was Life of Georgia. This
insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a significant
increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably.
However in 2004, ING as a group had become well-established in both regions and Life of
Geogeria was sold. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened
the Group’s presence in the Benelux. In addition, the activities in de United States were doubled
as a result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna
financial services and merchant bank furman Selz
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization
is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail
market share in mature markets. Finally, ING distinguishes itself internationally as a provider of
‘employee benefits’, i.e. arrangements of nonwage benefits, such as pension plans for companies
and their employees.
About ING Group
ING is a global financial institution of Dutch origin offering banking, insurance and asset
management to over 85 million private, corporate and institutional clients in over 40 countries.
With a diverse workforce of approximately 130,000 people, ING is dedicated to setting the
standard in helping our clients manage their financial future.
About ING in India
ING operates through three businesses in India, ING Vysya Life Insurance, ING Vysya Bank and
ING Investment Management. ING Vysya Bank is a premier private sector bank with over 76-
year heritage and 1.5 million satisfied customers. ING Investment Management believes in
providing investors with the knowledge & opportunity to manage their future easily.
ING Life India, in its 10th year of operations, is a part of the ING Group. ING Life entered the
private life insurance industry in India in September 2001. The company has issued over 1
million policies and is staffed by over 6500 employees.
Headquartered in Bangalore, ING Life India is currently present in 229 cities across 251 branch
offices. In addition, the company distributes its products in several parts of the country through
its partner's presence.
ING Life India distributes its products through two channels, the Tied Agency Force and the
Alternate Channel. The Tied Agency force comprises over 50,000 ING Life Advisors, spread
across the country. The Alternate Channels business within ING Life India is a fast growing
distribution channel, and includes the Banc assurance partner (ING Vysya Bank), Referral
Partners, Corporate Agents and Brokers.
ING was established as a Naamloze Vennootschap (public limited liability company) on March
4, 1991, through the merger of Nationale-Nederlanden, which was the largest insurer in the
Netherlands, and NMB Postbank Group, which was one of the largest banks in the Netherlands.
ING Group N.V. is incorporated under the laws of the Netherlands.
History of the ING Lion:
ING’s orange lion goes way back to ING’s Dutch roots. Orange is the national color of the
Netherlands, and the lion the country’s national symbol. Several founding ING companies, banks
and insurers, had or still have the lion in their logos.
Logo’s from banking history of ING:
One of ING’s founding companies; the Rijkspostspaarbank was established in 1881.
Government-owned, the company had the Dutch coat of arms flanked by two lions in its logo
surmounting the motto ‘je maintiendrai’ (I will maintain). In the 1950s and 1960s, another ING
founding company, the Nederlandsche Middenstandsbank (NMB), used the same logo on its
stationery and official documents.
The logo was modernized several times in the course of the merger of Rijkspostspaarbank and the
Postcheque- & Girodienst into Postgiro/Rijkspostbankspaarbank, culminating in privatization as
the Postbank in 1986. The lion rampant became recumbent, lost a little of its wild mane and
acquired a longer tail.
Logos from our insurance history The original insurance companies, De Nederlanden van 1845
and the Nationale Levensverzekering-Bank, both had lions in their logos. For a long time De
Nederlanden van 1845 used the Dutch coat of arms. The Nationale had a logo depicting a virgin
with a lion at her feet, symbolizing the company’s courage in looking after its customers’ savings
deposits. The two companies merged and became Nationale-Nederlanden
The lion survived
The logo was very much a negotiating issue when NMB and Postbank merged, and later on when NMB Postbank Group and Nationale-Nederlanden joined forces but the lion has survived all mergers.
ING current logo
The orange lion adorns their global ING logo.
Business Divisions: ING is serving its services in three fields of areas which are as follows:
3.1 COMPANY OBJECTIVE:
ING aims to deliver financial products and services in the way that our customers want them delivered: with exemplary service and maximum convenience at competitive prices.
3.2 ING – MISSION
Mission statement: To set the standard in helping our customers manage their financial future.
ING- Tag Line:
Shaping our future
ING LIFE INDIA-CURRENT SHAREHOLDING:
26% 50%
11.53% 12.47%
ING PARTENERS IN INDIA:
5. Exide Industries Limited-is the market leader in both automotive and industrial segments.
‘EXIDE’ and ‘SF’ (Standard Furukawa), the flagship brands of the Company, which are the
leading battery brands in the country.
6. Rajan Raheja the promoter of the group is ranked 30 th by Forbes among Indians by New
worth... His Net worth stands at: $2.15 billion.
7. Gujarat Abuja Cements Ltd.-the third largest cement company in India.
8. Enam Group-Enam Group is one of India’s leading financial service providers reputed for its
ability to perceive the true potential of businesses and enhance their value. The culture at
Enam Group is deeply rooted in ethics, innovation and financial sobriety.
3.3 COMPANY HIERARCHY:ING -ORGANIZATION STRUCTURE IN INDIA
Kshitij Jain MD & CEO
Rahul AgarwalChief Distribution Officer
B.AshwinChief Operating Officer
John BoersChief Financial Officer
Uco VegterChief Marketing & Strategy Officer
Priya GDirector Human Resource
Parag MathurLegal Counsel, Company Secretary
Organization Structure-Regional Level
3.4 PRODUCT PORTFOLIO:Insurance Products of ING:
ING Life Insurance aims to make customers look at life insurance afresh, not just as a tax saving
device but as a means to live life to the fullest. It believes in enhancing the very quality of life, in
addition to safeguarding an individual's security.
The Company follows a “customer centric approach” while designing its life insurance products.
The ING Life product portfolio offers products that cater to every financial requirement, at all life
stages.
The various insurance plans of ING VYSYA are as follows:
i. Children Plans
Regional Vice President
Area Training Manager Area Managers
Branch Manager Agency Manager
Training Manager Customer Service Manager
Branch Coordinator
SM GSMs
Advisors
FCs
AdvisorsAdvisors
ASM
Advisors
BDE Advisors
CSE
i. ING Aashirvad
ii. Creating Life Child Protection Plan
iii. Creating Life Money Back Plan
ii. Protection Plans
i. ING Term Life
ii. ING Term Life Plus
iii. Savings Plans
i. Reassuring Life Endowment Plan (Reversionary Bonus)
ii. Safal Jeevan Endowment Plan
iii. Safal Jeevan Money Back Plan
iv. ING Creating Star Guaranteed Future
iv. Retirement Plans
ING New Best Years
ING Immediate Annuity
v. Investment Plans
a. ING Ace Life
b. ING Ace Pension
c. ING Prospering Life SP
d. ING Market Shield
e. ING Prospering Life
f. ING Uttam Jeevan - Regular Premium
g. ING Uttam Jeevan - Single Premium
h. Powering Life
i. Platinum Life
j. New Fulfilling Life
vi. Group Products
a) ING Smart Shield
b) Group Gratuity
c) Employee Deposit Linked Insurance
d) Group Term Life Insurance Plan
e) Single Premium Level Term Plan
Children plans:
In today's day and age it is all about providing that extra to give your little ones the edge over
others. Keeping this objective in mind, ING Life launches its new design amongst child plans that
will help revolutionize your approach towards planning for your child's future.
The various children plans of ING are as follows:
A. ING Aashirvad: ING Aashirvad is a guaranteed child life insurance plan that pays out monies
and helps you plan for the career and marriage of your children. In this plan the parent and child
are the life insured/s during the policy term and once your child's future is adequately secured
through the education and marriage payouts, the benefit of long term insurance protection shifts to
the child during the extended policy term.
B. Creating Life Child Protection Plan:
Creating Life Child Protection Plan ensures that your child’s future is secure in case of your
untimely death. It also creates a financial asset for your child. It provides the sum assured to your
child immediately after your untimely death. what’s more, on maturity, an additional sum assured
is paid with an accumulated compounded revisionary bonus and a final additional bonus.
C. Creating Life Money Back Plan:
The creating life child protection money back plan is a unique plan that fulfills your need for
protection, saving, retirement and investment. It gives a double benefit of a life cover along with
periodic cash returns during the term of the policy.
Protection Plan:
Our Protection Plans help you ensure that your family continues to enjoy a comfortable lifestyle
even in your absence. We make available a variety of plans to provide you with the flexibility of
choosing one that fits your and your family's needs the best. We recognize protection as the basic
insurance need and have therefore kept our products comprehensive yet economical for you. The
various protection plans of ING are as follows:
1. ING Term Life
Simplest and most economical form of term life insurance. Large sum assured at highly
affordable premium rates.
2. ING Term Life Plus
Term insurance product with return of premium. Large sum assured at affordable premium rates.
Savings Plans:
Our Saving Plans help you achieve your life goals making them cherished moments for you and
your family. They provide you with the flexibility to save for your future requirements while you
continue to improve your current lifestyle. Our plans help discipline your savings approach and
point your efforts towards defined goals so that whatever stage of life you are in, you are always
in control and self-reliant.
a. Reassuring Life Endowment Plan (Reversionary Bonus): Savings plan with a highly reliable
safety net for your family in case something happens to you.
b. Safal Jeevan Endowment Plan: Comprehensive protection and savings plan with an in-built
accident cover. Option to choose from a pre-packaged range of fixed terms and premiums.
c. Safal Jeevan Money Back Plan: Ideal plan as a first life insurance policy. Choose a suitable
policy term from pre-packaged solutions. Payouts at regular intervals during policy term.
d. ING Creating Star Guaranteed Future: ING Assured Returns (Withdrawn) from this plan
- The Guaranteed Interest Rate declared for the 2nd Policy year is 9%,
- The rate for a Delayed Payment Interest rate is 5.5%*.
* (including Account Administration Fees of 1.25%)
Retirement plan:
Our Retirement Plans ensure that you lead your life after retirement on your own terms, doing
things you have always dreamt of. We also believe it is important to be in control of your
retirement planning. Our innovative features help you choose your retirement age and also
control the way your investments are managed keeping in mind your retirement needs.
a. ING New Best Years:
Retirement plan with capital guarantee and plenty of flexibility, to help build a sizeable financial
asset for you or your family, in case you’re not around.
b. ING Immediate Annuity :
A plan that gives you a guaranteed income throughout your retired life and more.
Investment Plans:
Our Investment Plans are created keeping your needs in mind. We appreciate the flexibility
required to suit your risk appetite and the commitments you may want to make. Our global
expertise in managing wealth for individuals at all stages in their life ensures that we have
products to suit your taste whatever your objective of investing may be.
1) ING Ace Life
ING Ace Life is a non-linked non-participating limited premium payment (3 years) endowment
plan that provides guaranteed additions for the entire policy term of 10 years.
2) ING Ace Pension
ING Ace Pension is a non-linked non-participating limited premium payment (3 years) pension
plan that provides guaranteed additions for the entire policy term of 10 years. The Guaranteed
Vesting Benefit at the end of the Policy Term will be used to purchase annuity which will help
you in your post retirement years.
3) ING Prospering Life SP
ING Prospering Life SP is a Single Premium Unit Linked Insurance Plan which maximizes
returns over the long term (10-years) by providing choice of 6 investment funds with just a single
contribution.
4) ING Market Shield
ING Market Shield not only provides life cover but also balances risk and reward in a transparent
manner and provides you an opportunity to enjoy growth while retaining protection. It is a Unit
linked life insurance plan that ensures you never miss an opportunity to maximize your gains and
at the same time limits your losses.
5) ING Prospering Life
An excellent Unit Linked Life Insurance plan for wealth creation while enjoying control over
your assets at all times.
6) ING Uttam Jeevan - Regular Premium
A long term investment tool with market linked returns and increasing Life Cover to secure
financial protection for the customer's family at every stage of life.
7) ING Uttam Jeevan - Single Premium
ING Uttam Jeevan SP is a simple, easy to understand plan which fulfills customer’s needs of
investment and protection. It is a unique Single Premium unit linked plan which can help you
strike your future worries in one shot. Pay once and enjoy the benefits for the term of the policy.
8) Powering Life
Investment plan with high reversionary bonus. Premium payments for a short period of time, life
cover for a longer period and high maturity benefits.
9) Platinum Life Plan
Investment plan with a10 year duration. Simple guaranteed additions on sum assured apart from
bonuses and loan facility.
10) New Fulfilling Life Plan
Investment plan with double benefit of periodic cash returns during policy term and maturity or
death benefit.
Group Products:
A variety of plans to provide a cost effective yet comprehensive cover in an efficient manner to
all your employees, helping you attract and retain the best of talent. The various group products
are as follows:
1. ING Smart Shield
ING Vysya Life Insurance is proud to introduce its new group insurance product “ING Smart
Shield” for credit related insurance. Credit related insurance is sold in conjunction with credit,
where the policy terms and benefits are related to specific consumer credit obligation. This kind
of arrangement is made between insurer and banks/financial institutions offering personal,
educational, agriculture, auto and other consumer loans. It can also be targeted at deposit
products, such as recurring deposits and systematic investment plans of mutual funds, where a
sum assured can be of a decreasing nature and a schedule similar to outstanding loan schedule
can be drawn.
A master policy will be issued to the bank/financial institution to cover existing and new
customers for the entire tenure of their respective financial products. The premium will be paid
by the bank/financial institution. The cover at any point of time in respect of a member will be
based on the schedule of death benefit drawn at inception.
in the event of unfortunate death of your employee. This can be done in a tax efficient and hassle
free manner through this plan.
in the group.
2. Single Premium Level Term Plan
The associates in your business are the life of your organization. It is they who are your most
valuable asset and enhance your company's worth. Your challenge is to keep them happy,
motivated and most importantly, to make them remain with you. Our Single Premium Term
Assurance primarily caters to the mortgage groups – like Banks and Housing Finance companies
such as your organization. ING Life's Single Premium Level Term plan ensures that your client's
families are protected in the event of an unfortunate death. You can ensure that their financial
security is assured, when they need it most. This Single Premium Insurance plan provides for
payment of sum assured for the benefit of the beneficiaries in the event of death of your client.
Operational policy of KYC at ING:
Know Your Customer (KYC)
KYC is an acronym for “Know your Customer”, a term commonly used for Customer
Identification Process. The Prevention of Money Laundering Act, 2002 (“PMLA”) forms the core
of the legal framework put in place by the Indian Regulators to combat money Laundering to be
followed by banking companies, financial institutions and intermediaries by administering KYC
process and other reporting requirements such as suspicious transactions reporting, etc. SEBI has
prescribed certain requirements relating to KYC norms for Financial Institutions and Financial
Intermediaries (such as Mutual Funds) to ‘know’ their customers. This would be in the form of
verification of identity and address, providing information of financial status, occupation and
such other demographic information. Applicant must be KYC compliant while investing with any
SEBI registered Mutual Fund.
Thus, with effect from February 01, 2008, all investors (Individuals or Non Individuals) who
wish to make an investment of Rs. 50,000 or above in a mutual fund scheme will be required to
complete the KYC process. This would also apply to new Systematic Investment Plan (SIP)
registrations on or after 01 February 2008, if each SIP installment is of value greater than or
equal to Rs. 50,000. This one-time verification is valid for transactions across all mutual funds.
The process for KYC is as follows:
1. A completed KYC application form along with the documents/information as mentioned in point
(3) below should be submitted to any point of service (POS).
2. A KYC application form is available at the investor service centers of the Fund and CAMS or
any designated ‘Points of Service’ (POS) of CSDL Ventures Ltd.
3. The documents required to be submitted along with the KYC application form are:
a) Recent Passport size photograph,
b) PAN card copy,
c) Address proof and
d) Detail of occupation and income. (The detailed list of documents/information required
and instructions to fill the form can be found in the KYC application form).
4. After verification of the KYC application form and accompanying documents, investors will
receive a letter certifying their KYC compliance. There is no charge for this verification.
5. When investing with the Fund, a copy of this letter should be attached to the scheme’s application
form to avoid rejection.
6. If you already have a Mutual Fund Identification Number (“MIN”) (not valid anymore) and you
have not provided PAN at the time of obtaining MIN, you are requested to complete the PAN
formalities mentioned above to be KYC –compliant.
Guidelines on “Know Your Customer” norms and “Cash transactions” by RBI:
As part of ‘Know Your Customer’ (KYC) principle, RBI has issued several guidelines relating to
identification of depositors and advised the banks and companies to put in place systems and
procedures to help control financial frauds, identify money laundering and suspicious activities,
and for scrutiny/monitoring of large value cash transactions. Instructions have also been issued
by the RBI from time to time advising banks to be vigilant while opening accounts for new
customers’ it prevent misuse of the banking system for perpetration of frauds. Taking into
account recent developments, both domestic and international, it has been decided to reiterate and
consolidate the extent instruction on KYC norms and cash transactions. The following guidelines
reinforce our earlier instructions on the subject with a view a to safeguarding banks from being
unwittingly used for the transfer or deposit of funds derived from criminal activity (both in
respect of deposit and borrower account) , or for financing of terrorism. The guidelines are also
applicable to foreign currency accounts/transactions.
‘Know Your Customer’ (KYC) guidelines for New accounts:
The following KYC guidelines will be applicable to all new accounts with immediate effect.
1. KYC Policy:
i. “Know Your Customer” (KYC) procedure should be the key principle for identification of an
individual/corporate opening an account. The customer identification should entail verification
through an introductory reference from an existing account holder/a person knows to the bank or
on the basis of documents provided by the customer.
ii. The Board of Directors of the banks should have in place adequate policies that establish
procedures to verify the bona fide identification of individual/corporate opening an account. The
Board should also have in place policies that establish processes and procedures to monitor
transactions of suspicious nature in accounts and have systems of conducting due diligence and
reporting of such transactions.
2. Customer Identification:
The objectives of the KYC framework should be two fold,
a. To ensure appropriate customer identification and
b. To monitor transactions of a suspicious nature. Banks should obtain all information necessary to
establish the identity/legal existence of each new customer, based preferably on disclosures by
customers themselves. Typically easy means of establishing identity would be documents such as
passport, driving license etc. However where such documents are not available verification by
existing account holders or introduction by a person known to the bank may suffice. It should be
ensured that the procedure adopted does not lad to denial of access to the general public for
banking services.
In this connection, we also invite a reference to Report on Anti Money Laundering Guidelines for
Banks in India prepared by a Working Group has made several recommendations for
strengthening KYC norms with anti money laundering focus and has also suggested formats for
customer profile, account opening procedures, establishing relationship with specific categories
of customers, as well as an illustrative list of suspicious activities.
“Know Your Customer” procedures for existing customers:
Banks and Companies are expected to have adopted due diligence and appropriate KYC norms at
the time of opening of accounts in respect of existing customers in terms of our extant
Instructions referred to in the Annexure. However, in case of any omission, the requisite KYC
procedures for customer identification should be got completed at the earliest.
ING’S Policy on Know Your Customer:
INTRODUCTION:
“Know your Customer” (KYC) is a set of guidelines aimed at preventing banks from being used
intentionally or unintentionally by criminal elements for committing financial frauds, transferring
or deposits of funds derived from criminal activity or for financing terrorism. This policy
document is a consolidation of various guidelines issued by Reserve Bank as also our Bank for
proper identification of an account holder/customer and for scrutiny/ monitoring of large value
cash transaction or transaction of a suspicious nature. This KYC policy is applied to the whole
group of ING (with minor required changes) which includes its three business divisions of
Banking, Insurance and Asset management.
OBJECTIVES OF KYC POLICY
1. To lay down explicit criteria for acceptance of customers.
2. To establish procedures to verify the bona-fide identification of individuals/non individuals for
opening of account.
3. To establish processes and procedures to monitor high value transactions and / or transactions of
suspicious nature in accounts.
4. To develop measures for conducting due diligence in respect of customers and reporting of such
transactions.
DEFINITION OF CUSTOMER
For the purpose of KYC policy, a “customer” will be defined as:
A person or entity or entity that maintains an account and/ or has a business relationship with the
Bank,
One on whose behalf the account is maintained (i.e. the beneficial owner),
Beneficiaries of transactions conducted by professional intermediaries such as Stock as Brokers,
Chartered Accountants, Solicitors etc. as permitted under the law, and
Any person or entity connected with a financial transaction which can pose significant reputation
or other risks to the Bank, say a wire transfer or issue of a high value demand drafts as a single
transaction.
CUSTOMER ACCEPTANCE
a. The bank will have an elaborate standard for
i. Obtaining comprehensive information regarding new customers at the initial stage
and that of existing customers over a predetermined period, thereby establishing the
bona fides of customers opening accounts with the Bank.
ii. For identifying high value transactions and transactions of a suspicious nature and
keeping a watch on such transactions as well as for reporting them to law enforcing
Regulatory authorities.
b. The Bank will lay down/ spell clearly the document requirements and other information to
be collected in respect of different categories of customers depending on perceived risk
and keeping in mind the guidelines issued by Reserp7po67y.ve Bank of India from time
to time;
c. The Bank will ensure that a new account is not opened or an existing one is not closed
where the Bank is unable to apply due diligence measures i.e. unable to verily the identity
and/or obtain documents required as per the risk categorization due to non cooperation of
the customer or non-reliability of the data/information furnished to the Bank. It will,
however, have suitable built-in safeguards to avoid harassment of the customer. For
example, decision to close an account will be taken at the level of controlling office after
giving due notice to the customer explaining the reasons for such a decision;
The Bank will ensure that circumstance in which a customer is permitted to act or behalf of
another person/ entity will be clearly spelt out in conformity with established law and practice of
banking as there could be occasions when an account is operated by a mandate holder or where
an account is opened by an intermediary in the fiduciary capacity;
d. The bank will ensure that before opening an account there are adequate checks to ensure
that the identity of the customer does not match with any person with known criminal
back ground or with banned entities like individual terrorist or terrorist organizations.
1. CUSTOMER IDENTIFICATION
Identification is an act of establishing who a person is in the context of KYC it means establishing
who a person purports to be and will involve identifying the customer and verifying his/ her
identities by using reliable and independent source documents, data or information. For this
purpose the Bank will obtain sufficient information necessary to establish to is satisfaction the
identity of each new customer, whether regular or occasional and the purpose of the intended
nature of banking relationship.
a. His/her address/location and(c) his/her recent photograph. The true identity and bona
fides of the existing customers and new potential customers opening accounts with the
Bank and obtaining basic background information would be paramount importance.
For customers that are legal person or entities the Bank will….
2. VERIFICATION OF GENUINENESS OF ADDRESS:
In all instances of opening of new accounts a letter of thanks will be sent by the Bank by
registered post at the recorded addresses to all customers and introducers with dual
purpose, thanking them for opening the account with the Bank and for verification of
genuineness of address furnished by the account holder. Undelivered envelopes in this
regard will be followed up closely at the branch level. The Branch may also contact the
customer at the telephone number provided in the account opening form or other
documents to verify the address and other details.
3. CUSTOMER PROFILE:
For the purpose of exercising due diligence on individual transactions in accounts, a
‘Customer Profile’ of individual account holders will be included in the account opening
forms. The customer profile will contain information relating to the customers identity,
social / financial status, nature of the business activity, information about the customers
clients’ business and their location etc. While preparing the customer profile the Bank will
take care to seek only such information from the customer which is relevant for the purpose of
risk categorization and is not intrusive. The customer profile will be a confidential document
and the details contained therein will not be divulged for cross selling or any other purpose.
The information will be of two types namely mandatory and optional as stated below:
A. Mandatory Information:
Occupation, Source of funds, Monthly Income, Annual turnover, Date of Birth Any relative
settled abroad, Dealings with other banks, Existing credit facilities , Assets (Approximate value).,
Expected turnover.
B. Optional Information:
Marital Status; Education Qualification; Educational Qualification of spouse; Details regarding
children; Information like- Owns a car/two wheeler, have credit card etc.
4. OBTAINING INTRODUCTION:
The Bank generally insists on introduction by a known person. Introduction is a process of
ascertaining the identity of a person and is acceptability for establishing business relationship
and verifying the true identity of the intending customer before opening an account. When the
Bank opens an account in the name of a customer, it has to render a number of services,
including collection of cheques, in the ordinary course of business. It is, therefore, essential
that the Bank is aware of the credentials of the prospective customer such as his profession,
business address etc. through proper introduction and verification of antecedents of the
account holder in each and every account.
5. IDENTIFICATION OF HIGH VALUE/SUSPICIOUS TRANSACTIONS/TERRORISM
FINANCE
Ongoing monitoring is an essential element of effective KYC procedure. Bank can effectively
control and reduce its risk only if it has an understanding of the normal and reasonable
activity of the customer so that it has the means of identifying transactions that fall outside the
regular Pattern of activity.
6. MONITORING OF CASH TRANSACTION:
The cash transactions will be monitored in the following manner:
a. The issuance of travelers cheques, demand drafts, mail transfers, and telegraphic transfer
for Rs.50000/- and above will be permitted only by debit to customers’ accounts or
against cheques and not against cash. Further, the applicants (whether customers or not)
for the above transactions for amount exceeding Rs. 50000/-will be required to mention
permanent (income tax) account number on applications.
b. The transactions involving cash withdrawals and/ or cash deposits for Rs.10 laces and
above in deposit, cash credit or overdraft accounts will be monitored closely by the
braches and record of details of such transactions will be kept in Separate register.
Customer Identification Procedure
Features to be verified and documents that may be obtained from customers
Features Documents
I. Accounts of individuals-
-Legal name and any other name used
-Correct permanent address
i. Passport ii. PAN/GIR number or Form 60 or 61(wherever applicable) iii. Voter’s Identity Card
iv. Driving License v. Identity card (subject to the bank’s satisfaction) vi. Letter from recognized
public authority or public servant verifying.
The identity and residence of the customer to the satisfaction of bank
A. Telephone bill
B. Bank account statement
C. Letter from any recognized public authority
D. Electricity bill
E. Ration card
F. Letter of employer (subject to satisfaction of the bank any one document which provides customer
information to the satisfaction of the bank will suffice)
II. Accounts of Partnership Firms
Legal name, Address, Name of all partners and their addresses, Telephone numbers of the firm
and partners, Registration certificate, if required, Certificate copy of Partnership Deed or
Partnership Letter (Ca-1(iii)).
CONCLUSION:
“Know Your Customer” (KYC) is a set of guidelines aimed at preventing banks and other service
companies from being used intentionally or unintentionally by criminal elements for committing
financial frauds, transferring or deposits of funds derived from criminal activity or for financing
terrorism.KYC norms are a very important part for any banking companies, financial institutions
and intermediaries. ING VYSYA GROUP strictly follows the KYC guidelines for account
opening, or any kind of investment to prevent frauds and cheating by their custumers.ING use
best of their efforts for the present money laundering.
REVIEW OF LITERATURE
4.1 PURPOSE:
The core purpose for the study is to understand the basic concepts of insurance sector and the
perception and investment pattern of respondents. Their perception towards ING Vysya in Jaipur
and its performance in the market. This is done to know consumers preference and needs and try
to bring about the product which may give satisfaction to the consumers. It is done to know the
overall merit and demerit of the product to give suggestions to improve the product. Following
are the purpose to do a project in insurance sector:
To identify various investment alternatives in insurance sector.
To compare the strength & weakness of different investment opportunity
To understand investors Preference in investment alternatives.
What characteristics of the investment product had influenced investors to make the investment in
particular investment?
To assess the various products of ING.
4.2 METHODOLOGY:
Methodology includes the various methods of data collection and interpretation which are as
follows:
o Data Sources
Mainly in a research process both, Primary and Secondary types of data sources are used. In this
research also we have two kinds of data sources given below:
1) Primary Data: Questionnaire and Interview
2) Secondary Data: Web pages, Company Journal’s & Brochures
o Data Collection Instruments:
The instruments used for data collection is a Questionnaire which is been filled by me through
communication and interactive session with the customers during my project period. Each
questionnaire represents essence information about a customer. So, a combination of Interview
and Questionnaire as a data collection is employed.
o NON – Probability Sampling
Non Probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample. It
is also known as deliberate sampling, purposive sampling and judgment sampling.
4.3 CONCLUSION:
The purpose of the study to get a feedback from the respondents about the various plans
available in the market , for this purpose the methods of data collection used are primary and
secondary. Analysis of various products of ING with available products of other companies on
the basis of benefits and risks of each product is possible with the help of data collected from the
company and through various tools of analysis.
ded in the sample. It is also known as deliberate sampling, purposive sampling and judgment
sampling.
Bar diagrams
of
Age at Entry:
Age at vesting:
Policy term:
Premium paying term:
Premium paying mode:
Maximum annual premium:
Vesting sum assured:
Guaranteed additions:
Guaranteed death benefit:
Min. 35- Max.60
Min. 45- Max.70
10 years only
3 years only
Annual only
No limit
200% of Annual Premium
8.75% Compounded per annum
Premium paid compounded at 3% per annum
for every completed policy year till death.
Other Benefits:
Guaranteed Vesting Benefits at the end of the policy term (10 years): Guaranteed vesting
benefit which equal to the vesting sum assured plus guaranteed additions at the end of the policy
term .For guaranteed vesting benefit an amount up to one third can be taken as commuted value
and minimum two third must be invested for purchase of annuity.
Tax free under Sec.80CCC and Sec.10 (10A) respectively of the income tax act 1961.
Guaranteed death benefits: Surrender Benefits-ING provides the surrender facility of the policy
after premium have been paid for at least 2 full years on surrender the policy will be eligible for a
special surrender value (SSV) which shall be determined by the Co. from time to time and will at
no point of time be lesser then 30% of annual premium paid in the first year.
Risk Factors:
1. ING Ace Pension is a non linked non participating life insurance product.
2. ING Vysya Life Insurance Co. Ltd. is only the name of the insurance company and ACE Pension
is only the name of the product and does not in any way indicate the quality of the product, its
future prospects and return.
3. In the event of any inconsistency/ambiguity between the terms contained herein and the policy
term and conditions, the policy term & condition shall prevail.
a) ING New Fulfilling Life: The New Fulfilling Life of ING Vysya Life Insurance plan is a double
benefit plan. It provides periodic cash return during the policy and maturity or death benefit after
the policy. It assures full security of the family of the insured person even after the death of the
insured. It gives the family regular cash returns during the life time
The features of New Fulfilling Life of ING Vysya Life Insurance plan are:
The minimum entry age for this policy is 14 years.
The maximum entry age for this policy is 54 years.
The maximum maturity age for this policy is fixed at 85 years.
The premium payment terms can be chosen from 16, 20 and 24 years.
The premium payment options are annual, half yearly, quarterly or monthly.
The minimum premium payment amount for annual option is Rs 8,000.
The minimum premium payment amount for half yearly option is Rs 4,000.
The minimum premium payment amount for quarterly option is Rs 2,000.
The minimum premium payment amount for monthly option is Rs 750.
The special feature of this plan is that it gives 100% of the sum assured as money back over the
payment term.
It also gives 100% on death or maturity.
The key benefits of New Fulfilling Life of ING Vysya Life Insurance plan are:
This policy has regular cash back benefit.
It also gives flexible premium payment benefit.
It also has guaranteed maturity benefit.
Other benefits:
Survival benefits: A certain percent of money is paid back on survival every quarter of the
premium paying term. The money can be reinvested elsewhere or used to meet large expenses
during one’s life time.
Amount receives periodically are as follows:
END OF
YEAR
16 YEAR
PPT
END OF
YEAR
20 YEAR
PPT
END OF
YEAR
25 YEAR
PPT
4 20% 5 20% 6 20%
8 20% 10 20% 12 20%
12 20% 15 20% 18 20%
16 40% 20 40% 24 40%
Maturity benefit: On survival to maturity i.e. after attaining 85 year of age you will receive100%
of the sum assured plus bonus.
Death benefits:
You pay premium for a limited period of your choice while you get a risk coverage up to the age
of 85 years.
In the event of your unfortunate death your family would receive 100% of the sum assured over
and above the survival benefits you would have receive till then plus bonus.
Risk
a. The benefits under this plan will not be payable if death of life assured occurs due to suicide
within one year from the date of commencement of risk own within one year from the date of
reinstatement of a lapsed polices.
b. If you are unable to pay your premium for some reason, then after 30 days of due date the policy
will lapse.
C). ING Market Shield: ING Market Shield not only provides life cover but also balances risk
and reward in a transparent manner and provides you an opportunity to enjoy growth while
retaining protection. It is a Unit linked life insurance plan that ensures you never miss an
opportunity to maximize your gains and at the same time limits your losses.
Eligibility Criteria
Age at Entry Min 8 years - Max 55 years
Age at Maturity Min 23 years - Max 70 years
Policy Term 15 to 20 years
Premium Paying Term Limited Pay (5, 10 years) or Regular Pay (equal to Policy Term)
Premium Payment Modes Annual
Minimum Premium for Limited Pay (5 years) the minimum yearly premium is
` 48,000
For Limited Pay (10 years) or Regular Pay: ` 36,000
Maximum Premium No Limit
Top-up Premium Minimum of ` 5,000, Maximum of ` 800,000
Basic Sum assured 10 to 20 times the Annual Premium
Additional Sum Assured Fixed at 1.25 times of the Top-up premium paid (if any
Benefits:
1. Optimizing upside potential due to Equity Participation
This plan provides you with the growth potential that comes from investing in shares that
comprise Nifty 50 (NSE CNX S&P Nifty Index). ING Life on every day basis will monitor the
equity market development and increase allocation to the equity market (up to a maximum of
60%) when times are good and will reduce (up to 0%) allocation to equities when markets are
volatile. This active daily asset allocation ensures that your gains are maximized and at the same
time protecting such gains from eroding.
2. Anytime guarantee - Protection that is available to you at all times and not just at maturity Not
only will this plan invest in equity and bring you the gains from the markets, it will also ensure
that gains that are made are locked in with a minimum 80% assurance. Every time the NAV of
the Guaranteed NAV Fund hits a new high, 80% of that NAV per unit is guaranteed (referred as
Guaranteed NAV or G-NAV). From there on, irrespective of the volatility in the market you are
assured of the G-NAV per unit at all times and not just at maturity. ING will reset this G-NAV on
a daily basis and once the G-NAV is set it can go up and never go down. The below graph
explains that in a rising market when the Daily NAV is higher the customer gets the maturity
benefits at the Daily NAV.
For example, if the Daily NAV on maturity is at 38 and the G-NAV is 30.4, you are still assured
of receiving the maturity benefits at the Daily NAV of 38. ING manages the Guaranteed NAV
fund through a dynamic asset allocation process which ensures that your guarantee is available to
you at all times and all benefits paid to you are at higher of the prevailing NAV (referred to as
Daily NAV) or the last Guaranteed NAV.
Comparative analysis of Reliance’s products:
a. Reliance Market Return Plan: You have always aspired for the best in life. And we help you
achieve just that. With Reliance Market Return plan you can have the twin advantage of insurance
protection as well as reaping the benefits of investment growth. It is a flexible plan which works
all through your life and meets the changing requirements like additional protection, liquidity
through cash, option to invest in different asset class, steady golden years and many more.
Key Features – Reliance Market Return Plan:
· Twin benefit of market linked return and insurance protection
· A Unit Linked Plan, different form traditional Life Insurance products, with maximum maturity
age of 80 years
· Option to create your own portfolio depending on your risk appetite
· Choose from 4 different investment funds
· Flexibility to switch between funds
· Option to pay regular as well as single premium & Top-ups
· Option to package with Accidental riders
· Flexibility to increase the Sum Assured
· Liquidity through partial withdrawals
Benefits:
Life Cover Benefit: You can choose the basic Sum Assured within the minimum and maximum
levels mentioned below
Minimum Sum Assured:
· Regular Premium: Annualized Premium for 5 years or for half the Policy term
· Single Premium: 125% of the single premium
Maximum Sum Assured:
No Limit (Rs 500,000 for age up to 12 years)
In case of unfortunate loss of life, your Beneficiary will get sum Assured or Unit Account Value
whichever is higher.
Maturity Benefit: On survival, at maturity the value of your Unit Account will be paid out.
Risk:
Reliance Life Insurance will not be liable to pay any Accidental Death Benefit Claim or Total
and Permanent Disablement Claim which results directly or indirectly from certain events.
Comparative analysis of HDFC’s products:
a. HDFC- Unit Linked Wealth Maximiser: Unit linked Wealth Maximiser is a single premium
unit linked plan. The plan offers an investment and protection benefit. This plan helps you meet
your family needs in the future. It also offers Loyalty Units which increases your fund value
yearly.
Eligibility Age at Entry:
Minimum 18 years Maximum 65 years
Minimum 18 years Maximum 55 years
Minimum Premium Payment: Rs1, 00,000/-
Term Limit: Is calculated 99 years less the entry age.
Benefits
1. It invests in market funds and which provides a long term growth and is a flexible to suit your
needs.
2. Loyalty Units- You get additional units every policy year end by 0.10% as long as the policy is
still active.
3. There are choices of 5 unit linked funds. Managers Fund, Mid-Cap Fund, Large-Cap Fund,
Bond Opportunities Fund and Money Plus Fund.
4. This plan has a cover till the age of 99 years.
5. There is a onetime premium payment when you start the policy.
b. HDFC Unit Linked Pension Maximizer II: During the post retirement days we earn a lot
and we spend a lot too. It should be in the mind of every working individual that spending is
something that takes place throughout one’s life but earning is only when one has the age and
strength to do so. Hence while earning and spending one should also know to save for the future
after retirement when earning stops and spending continues.
The best investment that one could ever think of is the unit linked pension maximiser II plan.
With this plan one can be independent throughout one’s lifetime with no hassles for money to
live an enjoyable life. This plan offers you the chance to maximize your investment returns and
gives an addition of 10% of the initial premium at the time of death or vesting.
The regular features of this plan include
A. A minimum term value of 10 years and a maximum of 40 years is allowed to the policy holder.
One can choose one’s own retirement date with this plan. There is a wide range of choice of
funds approximately seven choices to choose from.
B. The premium investment in a single payment initially is fifty thousand or more. Eligibility age is
18 years for this plan and the maturity age is 65. On retirement the minimum age is 50 and
maximum 75 years.
Benefits:
a. The benefits of the pension maximiser plan are unique
b. It is the best plan to choose to have a peaceful post retirement income even after retirement.
c. At the end of the policy one can receive not only the value of the matured funds but also bumper
additions that can be used as pension income as long as you live.
d. Bumper additions for policies whose term are equal or greater than 15 years will be paid on
vesting or at the time of death. These additions will be given according to the government
regulations
e. One can avail 1/3 of the total benefit at vesting as a tax free lump sum and get the rest converted
to annuity either with HDFC or any insurance company of one’s choice.
f. One can change the choice of investment funds by switching and moving the accumulated funds
from one plan to the other anytime.
g. One should be wise in making plans for the future. There should be no delay in selecting the
perfect golden years of retirement now while the going is good. Earn and save today and enjoy
tomorrow.
Comparative analysis of LIC’s products:
A. Market Plus 1: is a unit linked pension scheme (ULIP). Policy holder can choose the plan with
or without risk cover. This investment plan is divided in four types of investment Funds namely
Bond, Secured, Balanced and Growth Fund. Market plus 1 is primarily a Pension policy and the
plan has many attractive features and options that make it an ideal Retirement solution for your
future.
Eligibility Conditions and Restrictions:
For Basic Plan without Life Cover (Investment plan)
a) Minimum Sum Assured: Nil
b) Maximum Sum Assured: Nil
c) Minimum Premium : Rs.5, 000 p.a. for Regular premium, thereafter in multiples of Rs.
1,000
Rs. 1,000 p.m. for monthly (ECS), increasing thereafter in multiples of Rs. 250.
d) Maximum Premium : No Limit.
e) Minimum Entry Age : 18 years last birthday.
f) Maximum Entry Age : 74 years nearest birthday.
g) Minimum Deferment Team: 5 years.
h)Minimum Vesting Age : 40 years completed.
i)Maximum Vesting Age : 79 years completed.
Features:
1. Option to pay one time premium
2. Critical illness benefit minimum Rs 50,000 and the maximum Rs 10 lakh
3. Accident benefits from Rs 25,000 up to a maximum of Rs 50 lakh.
4. Switch from one type of fund to another up to four times a year.
5. Premium top up.
6. Policy can be taken with or without risk cover.
6. Net Asset Value (NAV) declared on a daily basis.
Benefits:
A)- On Vesting:
On vesting of the policy, the Fund Value will be utilized to provide a pension based on the then
prevailing Annuity rates. An option to commute upto one third of the payable benefit in a lump
sum is available.
B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along with the Riders, if
any, will be payable in a lump sum or as a pension.
B. LIC’s Pension Plus: is a unit linked deferred pension plan, which provides you a minimum
guarantee on the gross premiums paid. The plan is without any life cover.
You have a choice of investing your premiums in one of the two types of investment funds
available. Premiums paid after deduction of allocation charge will purchase units of the Fund
type chosen. The Unit Fund is subject to various charges and value of units may increase or
decrease, depending on the Net Asset Value (NAV).
1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or quarterly
or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single
premium can be paid.
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly
premiums and 15 days for monthly (through ECS) premiums.
2. Eligibility Conditions and Other Restrictions:
a) Minimum Entry Age - 18 years (last birthday)
b) Maximum Entry Age - 75 years (nearest birthday)
c) Minimum Vesting Age - 40 years (completed)
d) Maximum Vesting Age - 85 years (nearest birthday)
e) Minimum Deferment Term - 10 years
f) Sum Assured - NIL
g) Minimum Premium -
Regular premium (other than monthly (ECS) mode): Rs. [15,000] p.a.
Regular premium (for monthly (ECS) mode): Rs. [1,500] p.m.
Single premium: Rs. [30,000]
h) Maximum Premium -
Regular premium: Rs. [1, 00,000] p.a.
Single premium: No Limit
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For
monthly (ECS), the premium shall be in multiples of Rs. 250/-.
3. Other Features:
i) Guaranteed Maturity Proceeds: If all due premiums are paid till maturity, a guaranteed interest
shall accrue on the gross premium, including Top-up premiums if any, at the end of each
financial year. The guaranteed interest rate shall be 50 basis points above the average of the
reverse repo rate prevailing as on the last working day of June, September, December and March
of the preceding year. However, the guaranteed interest rate shall be subject to a maximum of 6%
and a minimum of 3%. This guaranteed interest rate is not applicable to a discontinued policy.
The minimum guaranteed rate of 4.5% p.a. is applicable to all premiums received up to 31st
March, 2011, including any Top-up premiums paid.
ii) Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate
of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all
discontinued policies.
iii) Top-up (Additional Premium): You can pay additional premium in multiples of Rs.1, 000
without any limit at anytime during the term of policy. Top-up shall not be allowed during the
last 5 years of the contract. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of
premium payment such Top-up can be paid only if all premiums have been paid under the policy.
iv) Switching: You can switch between the two fund types during the policy term subject to
switching charges, if any.
v) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.
vi) Revival: If due premium is not paid within the days of grace, a notice shall be sent to you
within a period of fifteen days from the date of expiry of grace period to exercise the option for
revival within a period of thirty days of receipt of such notice. If you exercise the option to revive
the policy, then the arrears of premium without interest shall be required to be paid.
4. Risk:
Risks borne by the Policyholder:
LIC’s Pension Plus is a Unit Linked Life Insurance product which is different from the traditional
insurance products and is subject to the risk factors.
The premium paid in Unit Linked Life Insurance policies are subject to investment risks
associated with capital markets and the NAVs of the units may go up or down based on the
performance of fund and factors influencing the capital market and the insured is responsible for
his/her decisions.
The various funds offered under this contract are the names of the funds and do not in any way
indicate the quality of these plans, their future prospects and returns.
All benefits under the policy are also subject to the Tax Laws and other financial enactments as
they exist from time to time.
Comparative analysis of ICICI’s products:
a. ICICI Pru Lifetime Pension Maxima is a regular premium, unit-linked pension plan which
offers you the flexibility to invest in unit-linked funds that generate potentially better returns over
long term. This pension planning product also offers you a unique strategy that allows you to
protect gains made through your funds invested in the equity markets from any future equity
market volatility.
Features:
Min Premium
Rs.10, 000 p.a. for yearly mode
Rs.15, 000 p.a. for half yearly & monthly mode
Min / Max Age at Entry
18 / 70 years
Min / Max Age at Vesting
50 / 80 years
Min / Max Policy Term
10 / 60 years, allowed only in multiple of 5 years
Min / Max Sum Assured
0 / As per the Sustainability Matrix
Max Cover Ceasing Age
80 years
Modes of Premium Payment
Yearly / half yearly / Monthly
Benefits:
Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made in equity markets
from any future equity market volatility while maintaining a pre-defined asset allocation
Additional allocation of units: More than 100% allocation to funds on premium payment from
the sixth policy year onwards of this unit-linked pension plan.
Loyalty Addition: At the end of every five policy years, starting from the 10th policy year, paid
irrespective of the premium payment status
Five pension planning options: Flexibility to choose a pension plan as per your needs
Tax benefits: Avail tax benefits on premiums paid and receive tax free commutation up to one-
third of the accumulated value on vesting (retirement) date, as per the prevailing Income Tax
laws
Comparative analysis of Bajaj Allianz’s products:
a. Wealth Insurance Plan: Bajaj Allianz Wealth Insurance Plan is a hassle-free way of investing
your money and at the same time taking care of your insurance needs. The plan gives you the
benefits of paying a single premium, so you don't have to worry about due dates, repetitive
paperwork and renewals or constantly make phone calls to your financial advisor. Apart from this,
the high allocation offered by the plan allows you to meet your financial goals.
Key Highlights
Wealth Insurance Plan offers the following key benefits:-
Loyalty addition up to 7% of single premium at the end of the fifth year. **Conditions Apply.
Option to receive the maturity benefits as settlement option.
Maximum flexibility to pay unlimited top-up premium and make partial withdrawals.
***Conditions Apply.
Option to decrease your sum assured.
Systematic switching option to manage your investments better.
Optional additional rider benefits to enhance your protection.
*The allocation rate is 98% for Single premium and Top up Premium.
* *If policy has not been terminated at the end of the 5th policy year the company will allocate
loyalty addition at the then prevailing unit price of an amount equivalent to 3.00% for Single
Premium of Rs. 50000 to 99999, 5.00% for single premium of Rs. 100,000 to 249,999 and 7.00%
for single premium of Rs. 250,000 and above. No loyalty addition is payable on any top-up
premium paid.
b. Pension Guarantee Plan: Pension Guarantee Plan ensures regular Income after Retirement.
for Life. With Bajaj Allianz Pension Guarantee Plan, you can ensure a regular income after
retirement. The plan offers you a range of immediate annuities to choose from. All you have to
do is pay a lump sum amount to Bajaj Allianz Life Insurance Company, and the annuity
payments will start after expiry of monthly/quarterly/half-yearly/yearly interval corresponding to
the payment mode selected by you. Under all options, annuity is payable for life, so you don't
have to worry about your income stopping at any age.
Features:
Minimum Age at Entry 40
Maximum Age at Entry 80
Minimum Purchase Price Rs.25, 000
Minimum Annuity Installment Rs.1, 000
:
Table 1: Showing age group among respondents
AGE RANGE NO. OF RESPONDENTS
< 25 24
25 – 30 22
31 – 40 38
>50 16
Graph1. Showing age group among respondents
INFERENCE: The graph shows the different age distribution of respondents. In this graph the
majority of the investors belonged to the group 31to 40 years. This group is most likely to think
of investment, especially from a perspective of savings for the future, including education of
children, self –sustenance after retirement etc.
TABLE 2: Showing respondents income level of distribution
INCOME RANGE NO OF RESPONDENTS % OF RESPONDENTS
< 1 LAKH 5 5%
1 LAKH-1.5 LAKH 10 10%
1.5 LAKH-2 LAKH 35 35%
2 LAKH-2.5 LAKH 40 40%
> 2.5 LAKH 10 10%
GRAPH 2: Showing respondents’ income level of distribution
INFERENCE: The graph shows the various income levels of respondents. In this graph the
majority of the respondents were in income bracket of Rs.2 lakh-2.5 lakh per annum. Next
highest group is 1.5-2 LAKH.
TABLE: 3 showing marital status of respondents
MARRIED SINGLE
58 42
GRAPH 3: Showing marital status of respondents
INFERANCE: As according to the graph the number of married persons is more than single this
group is most likely to think of investment especially from a perspective of saving and retirement
plans
TABLE 4: Showing educational background of respondents:
HIGH SECONDARY [10+2] GRADUATE POST GRADUATE
6 69 25
GRAPH 4: Showing educational background of respondents:
INFERANCE: As according to the graph the number of graduate is most amongst all
respondents.
TABLE 5: Showing Employment status of respondents:
SELF EMPLOYED PROFESSIONAL SALARIED
29 25 46
GRAPH 5: Showing Employment status of respondents:
INFERENCE: As shown in the table there is more salaried persons than self employed and
professional.
TABLE 6: Showing percentage of respondents having a life insurance policy
HAVING A LIFE POLICY NOT HAVING
57 43
GRAPH 6: Showing percentage of respondents having a life insurance policy
INFERANCE: As according to the graph there are 57% people having life insurance policy of
different companies and 43% are not having.
TABLE 7: Showing percentage of respondents interested in having different kinds of life plans.
PLANS INVESTORS PREFERANCE
SAVING PLAN 41%
UNIT LINK INSURANCE PLAN 44%
PENSION PLAN 15%
GRAPH 7: Showing percentage of respondents interested in different kinds of life plans.
INFERENCE: As according to the graph most people are interested in short term payment of
premium and high return ULIP and then the next higher group preferred saving plan for their
portfolio of investment.
TABLE 8: Showing percentage of respondents currently having life plans of different insurance
companies
INSURANCE COMPANIES PERCCENTAGE OF PREFERANCE OF
INVESTORS
LIC 61%
ING VYSYA LIFE 8%
HDFC STANDARD LIFE 5%
ICICI PRU LIF 9%
MAX NEW YORK 6%
SBI LIFE 11%
GRAPH 8: Showing percentage of respondents currently having life plans of different insurance
companies
INFERANCE: As according to the graph most of the investor prefer LIC life plans followed by
other companies so LIC is still the leader in Indian insurance sector and amongst the private
companies ICICI PRUDENTIAL LIFE is leading with 9% of respondents having its life plan.
TABLE 9: Showing percentage of investor’s preference for children plan for investment.
CUSTOMER PREFERRED CHILDREN
PLAN
CUSTOMER WHO DON’T PREFERRED
CHILDREN PLAN
41% 59%
GRAPH 9: Showing percentage of investor’s preference for children plan for investment.
INFERENCE: As according to the responses of customers mostly don’t preferred the children
plan because they are already having it or they are in different age group.
TABLE 10: Showing percentage of preference of respondents having different kinds of life plan.
LIFE PLANS INVESTORS PREFERENCE
TERM PLAN 10%
ENDOWMENT PLAN 21%
UNIT LINK INSURACE PLAN 29%
RETIREMENT PLAN 14%
CHILDREN PLAN 26%
GRAPH 10: Showing percentage of preference of respondents having different kinds of life plan.
INFERENCE: As according to the responses most investor preferred ULIP for investment
purpose because of high return and less premium paying term instead of that most investor
preferred plan which gave them guaranteed return with safety.
TABLE 11: Showing percentage of company preferred for investment by respondents
COMPANY NAME INVESTORS PREFERENCE IN
PERCENTAGE
ICICI 12%
ING 11%
LIC 61%
BAJAJ ALLIANZ 10%
MAX NEW YORK 6%
GRAPH 11: Showing percentage of company preferred for investment by respondents
INFERENCE: As according to the feedback of investors it can conclude that most people in India
prefer LIC for their investment purpose and in private sector there is a stiff competition between
various insurance companies.
TABLE 12: Showing percentage of time preference of respondents while selecting an investment.
TIME SCALE INVESTOR’S PREFERENCE
SHORT TERM 44%
MEDIUM TERM 41%
LONG TERM 15%
GRAPH 12: Showing percentage of time preference of respondents while selecting an
investment.
INFERENCE: As according to the feedback of respondents it is clear that most people are
interested in short term and medium term plan with good return while those who wants secured
returns can wait for long period of time.
TABLE 13: Showing factors preferred first by respondents while selecting an investment plan
FACTORS RESPONDENTS PREFERENCE
RETURN 49%
RISK 37%
TIME PERIOD 14%
GRAPH 13: Showing factors preferred first by respondents while selecting an investment plan
INFERENCE: As the feedback from the respondents it is clear that most people prefer return
while going for an investment followed by risk and time preference.
TABLE 14: Showing the percentage of awareness amongst the respondents about the available
insurance products in the market.
PERCENTAGE OF RESPONDENTS
AWARE ABOUT THE OTHER PRODUCT
PERCENTAGE OF RESPONDENTS NOT
AWARE ABOUT THE PRODUCT
38% 62%
GRAPH 14: Showing the percentage of awareness amongst the respondents about the available
insurance products in the market.
INFERENCE: The table of response shows that most people are not aware about the plans
currently available in the market; this section consists of the various people of young age and self
employed people.
TABLE 15: Percentage of respondent’s rating their current insurance plan on the basis of risk,
return and time duration.
LEVEL OF RISK LEVEL OF RETURN TIME
DURATION
LOW MODERATE HIGH LOW MODERATE HIGH SHORT
TERM
LONG
TERM
41% 15% 44% 14% 32% 54% 59% 41%
GRAPH 15: Percentage of respondent’s rating their current insurance plan on the basis of risk,
return and time duration.
INFERENCE:As the total number of respondents having a life policy is 57 so out of that the
different ratings given by them are shown above which shows that on the basis of risk most
people think that their current plan is more risky as they have invested in ULIP and other market
related plans. On the basis of return most respondents feels that their product is of high return
opportunity and at last on the basis of time duration most respondents are having short term high
risk and high return based insurance plan.
TABLE 16: Percentage of respondents likely to wait before going to change their current plan.
TIME SCALE RESPONDENT’S PREFERENCE
<12 MONTHS 55%
1-2 YEARS 32%
3-4 YEARS 11%
5-7 YEARS 2%
GRAPH 16: Percentage of respondents likely to wait before going to change their current plan.
INTERFENENCE: As according to the feedback of respondents it can be say that most people
wait for a year i.e. less than 12 months while going to change their current investment plan.
TABLE 17: Percentage of respondents visited to the company to know about the performance of
their products.
FREQUENCY OF VISIT RESPONDENT’S RESPONSE
ONCE IN A YEAR 29%
ONCE IN A QUARTER 24%
NEVER 47%
GRAPH 17: Percentage of respondents visited to the company to know about the performance of
their products.
INFERENCE: As the feedback from respondents it can be say that most of them never visit to
know the performance of their product because in ULIP products they can get information
through websites and internet and others are visit on a periodical basis.
TABLE 18: Showing the level of satisfaction of current customers of ING as ranking given by
them.
LEVEL OF SATISFACTION RANKING GIVEN BY CUSOMERS
GOOD 87%
AVERAGE 11%
NOT SATISFIED 2%
GRAPH 18: Showing the level of satisfaction of current customers of ING as ranking given by
them.
INFERENCE: As according to the graph it is clear that most of the customer of ING are satisfied
with the services provided by the company both in Insurance as well as banking sector.
SUMMARY OF FINDINGS:
7.1 BASED ON ANALYSIS:
The summary of survey conducted for ING Vysya life insurance, Can be listed down in
conjunction with the data analysis presented. The functioning and responses from the respondents
were authentic leading to a better view of the market scenario. The findings are listed below:
o The contribution of insurance industry to the GDP of nation is 7%
o ING is the world’s largest financial services company.
o Ranked 8th in Fortune Global 500.
o With 150+ years of financial expertise and 8.5 crore customers in 40+ countries.
o Core services :banking ,investments ,life insurance & retirement services
o Revenue amount to 226,577.00 Million USD.
o In India, ING has a experience of over 10 years.
o The company is targeting on emerging financial market in India with great potential.
o Majority of the respondents are from salaried class.
o Literacy level of the respondents is high, majority of them are educated.
o Mainly, male respondents having Life Insurance then female.
o Mostly, married respondents having Life Insurance.
o Average annual income of respondents is between 2-2.5 laces.
o Majority of respondents are having a Life Insurance.
o Most of respondents are holding an account with LIC and ICICI Prudential Life.
o Most of respondents prefer short term and medium term time scale for investment.
o Most of the respondents prefer short term high return Unit link insurance plan for investment.
o ING three products: ING Market Shield, ING Ace Pension Plan and ING Fulfilling Life are the
top 3 rated products in the first quarter of the current financial year and ranked A+ by various
business magazines.
o ING has current shareholding with EXIDE Industries, ENAM and Gujarat Ambuja Cement
o Most of the customer is highly satisfied with the services provided by ING.
o Most of the respondents are not aware about the available insurance products in the market
7.2 SWOT ANALYSIS:
STRENGTH
1) A strong brand name with a high degree of financial support which is the back bone of the
company.
2) Brand leaders in bringing latest financial services for the common man.
3) An innovator, pre problem seeker and risk taking capabilities.
4) Systematic, planned and quick actions taken up lead to quick reactions by the company
ultimately providing a competitive edge to ING.
5) ING is the world’s largest financial services company.
6) Ranked 8th in Fortune Global 500.
7) With 150+ years of financial expertise and 8.5 crore customers in 40+ countries.
WEAKNESS:
1) The plans of company are beneficial but the premium rates are very high.
2) Company is new in Indian market.
3) The data collected cannot be considered as 100% accurate but it is only an estimated
figures gathered by the survey.
4) The analysis so done cannot be regarded as the final as change is the only constant thing
which happens.
OPPORTUNITIES:
1) A huge untapped market.
2) Emerging middle class, a good potential market.
3) Increasing employment rate and income.
4) Increasing financial investments in market.
THREATS:
1) Neck to Neck competition with ICICI and HDFC with respect to services and policies.
2) Threats from growing competitors like Bajaj Allianz and Aviva in Insurance sector.
3) New entrant in the market, Sahara India Life, Om KOTHAK MAHINDRA etc, is an area of
concern.
CONCLUSION:
ING is the experts in financial sector having a 150+ years of experience in insurance sector
worldwide. In India, currently present in234 cities across 265 branch offices withover366 sales
teams.
The practicality of being associated with ING was a pleasant experience for me revealed by this
survey. ING Vysya Life Insurance is a well known brand in Bangalore. The company has a keen
interest in the development and enhancement of its products in India. The company focuses in
providing quality products to all the areas of our country. Company don’t prefer marketing
strategies and advertisement expenditure at core, it invest the advertisement funds for the benefits
of the customer and provides them the highest return possible. Currently ING’s three products
providing maximum guaranteed bonus rate of 7.5% and are the top rankers in all insurance
products available in the market.
Company is facing stiff competition in the market with other private companies. In India, It has
completed its 10 successful years of operation which shows its reliability.
ING product quality is good but the premium rates they are taking are bit high because they are in
establishing phase in India so they are charging more money as their establishment expenses but
now ING has completed its 10 years in India and is a well known brand so its future is quite
promising. Company is launching new products with very high benefits to the customers. The
growing demand in the market for ING Vysya Life Insurance products indicates the prospect of
new customers for the company.
Finally I conclude that ING Vysya Life Insurance has built up a brand name, which needs to be
maintained through continuous feedback, improvement and proactive actions. The company has
already sensed the market potential and now it should focus on coming with schemes and
products plans to give the market what they want from ING Vysya Life Insurance.
Revitalization of Rural Markets through Insurance
Given the uncertainty that abounds our environment, awareness is the most important thing as people in poor regions are not familiar with the concept of insurance. Insurance companies must work around this problem as a corporate social responsibility in countries like India where there is no state social security system.
The traditional agency channel for doing so may not be sustainable in the longer term in rural segment unless significant changes are made towards poor training, lower productivity, ineffective sales management, part-time sales of low quality, and high agent turnover. But, the question is how to address this in the short term, in a cost effective manner. Are there any alternatives?
The private players, especially the foreign banks, have strategically spread their operations to rural areas via self help groups and non-government organizations, micro-finance institutions and cooperatives as agents. For example, Aviva sells insurance through SEWA in Ahmedabad and Basix India, Hyderabad."
Distribution and servicing are two key areas in developing rural business. ICICI Prudential has a robust rural distribution model, involving tied agents, brokers as well as referral arrangements with NGOs, micro-finance institutions and corporates.
"We work closely with our partners like Uttaranchal Co-operative Marketing Federation, Gramasiri (an MFI), Cargill, Anarde Foundation, ICICI Bank and ITC's e-Choupal, to educate people about how life insurance can be used as a protection and savings instrument," says Shikha Sharma, CEO & MD, ICICI Prudential Life Insurance. Through these relationships ICICI Prudential is present in more than 15 States, including Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Rajasthan and Uttar Pradesh.
"We have long been convinced of the need for and long-term potential of life insurance in rural India. Certainly, covering the lives of those in rural areas presents several unique challenges. We have remained true to our customer first philosophy by developing specific products and introducing simplified underwriting and claims guidelines, to help the rural customer secure his or her financial future," says Ms. Sharma. Unfortunately efforts do not seem to match concerns.
BANCASSURANCE OPERATIONAL MODELS
Most of the bancassurance relationships in India are started with a 'referral' type arrangement, where bank staff provide leads to a specialist insurance company sales force, in return for which, the bank receives a 'fee'. Although this model is still adopted by some insurers, the banking and insurance regulators are apparently unhappy with the scope for what they consider 'misuse of personal customer data' collected by referral agents of insurance companies posted at bank branches. The regulators also fear that the level of post-sale service provided to the clients may be compromised as a result of the bank not engaging itself with the sale process. As a result, they are now discouraging insurers and banks from entering into new referral arrangements.
The main alternative model is more bank-centric in its sales approach. Banks have to obtain a corporate agency license to permit bank staff to distribute insurance. In this model, bank staff carries out the selling activities, and the bank receives a commission for the sales as per the corporate agency agreement.
The distribution agreements on which these models are reliant typically have durations ranging from one to 10 years. Most agreements are loosely worded, without the bank partners paying much attention to the customer servicing responsibilities in the post-sale phase. This leaves the field wide open for corruption nepotism and exploitation by the haves against the have nots. Whereas ethics is required governance is imperative.
Some banks have taken a more committed approach, taking an equity stake in a new joint venture life insurance company. Examples include ING Vysya Life Insurance, where Vysya Bank holds a 49 per cent shareholding, or MetLife, where Jammu and Kashmir Bank holds 25 per cent. In theory, these relationships should prove to be more effective; however, as of now, insurers with 'distribution only' agreements with the banks, such as Birla Sun Life and Aviva, seem to be writing more business through their bancassurance partnerships. These companies attribute their success to the closer involvement with the partner banks on improving bank based selling capabilities.
Alternative methods such as tapping the corporate clients of the bank, conducting worksite marketing within corporate clients, as well as direct and telemarketing, are currently not being exploited to any great extent, but clearly represent significant potential for both banks and insurers.
Some bancassurance relationships have been relatively successful in developing loan-related or packaged products. However, the emergence of other more tailored products for bank customers is still at a nascent stage.
CORPORATE AGENCY (OR OTHER AFFINITY GROUPS) MODELS
There are literally thousands of other potential affinity groups in India. To date, the insurers have been fairly selective in choosing to tie up with affinity groups primarily from a financial services background. Such organizations are probably closer to banks, in terms of the potential business volumes and also having some form of distribution capability.
These groups also include so called 'para-banking' organizations or 'non-banking finance companies' (NBFCs). NBFCs are companies with restricted banking licenses who are able to accept and hold deposits from the public. These groups also include multi-level marketing/distribution organizations. Generally insurers have preferred to set up corporate agency agreements with these companies, rather than establishing referral arrangements.
There are some 500 or so registered 'significant' NBFCs, with thousands of other potential affinity groups.
PRODUCT ENHANCEMENT FOR RURAL INCIDENT
Product development is proving to be key as the many distribution partners are beginning to request a more tailored suite of products, as opposed to the generic offerings that the insurers launched when they started their business.
As bank and affinity partners become more aware of the opportunities and as new insurance companies look to enter the sector, the first wave of new entrants will need to work hard to maintain the relationships that they have developed to date. The success and sustainability of the existing relationships are likely to depend on the ability of insurance companies to respond to demands from distributors, in what is likely to be a very competitive space.
The challenges to successfully build on what has been achieved to date will also emerge once the so called 'low hanging fruit' has disappeared. A commitment from both the insurer and distributor to devote the time to develop the channels and to expand the range of products will be one of the key success factors for the development of a longer-term relationship.
Notwithstanding these challenges, there is no doubt that alternative distribution in India will play a major role as the insurance sector develops. Although only in its infancy, there are an even greater number of opportunities that remain untapped. India provides one of the most unique opportunities to work with a wide variety of distributors and to develop innovative distribution models. It will be interesting to see how the agency channel evolves and adapts in response to this increasing 'competition.'
CLIENT SERVICING ALARM
With increased competition among insurers, service has become a key issue. Moreover, customers are getting increasingly sophisticated and tech-savvy. People today don't want to
accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service.
The insurance companies today must meet the need of the hour for more and more personalized approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive rural environment. Companies need to apply different set of rules and treatment strategies to different rural segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system dedicated for rural business.
With the explosion of Website and greater access to direct product or policy information, there is a need to developing better techniques to give rural customers a truly personalized experience. Personalization helps organizations to reach their customers with more impact and to generate new revenue through cross selling and up selling activities.
Also, physical presence in the locality will be required to support client servicing. Having felt the cost pressure owing to modest sales-turnover may force companies to market insurance as that of FMCG companies. They may start their business opening more and more satellite offices. It is strongly recommended for adoption in penetrating the rural space for product marketing. But, the sales of insurance are the subject matter of financial services marketing, where personalization issues are more significant. The essence of the better service in respect of personalization is never found at the satellites, which is generally done through remotely and much centrally located hub branch.
Ironically, the deadlines are more focused when closing the sale unlike for providing service in time for settling the claims and other operational issues. Generally, it is believed that issues in the business result in the recruitment of the sales staff for loading sales with additional pressure of operations issues. For becoming successful in delicate rural segment, such issues and overloading of operational burden on sales staff may trigger a back fire resulting in loss of possible revenue for the company.
Drawing-board approach to formulate the sales figure for rural markets is unrealistic without having understood the rural sentiments. In India the insurance business can be said to be "a marathon, not a sprint". This is because of the nature of the business being long term. As insurance companies go more and more rural in search of business, there will be opportunities in the rural sector.
SECRETS TO SUCCESS
Those who understand rural India better will be in demand. When the rural consumer will start exhibiting an increasing propensity for insurance products, there is a once in a lifetime opportunity to transform dreams into visible reality for companies having understanding of rural outlook. This will essentially requires a leading TEAM (Together Everyone Achieves More) of professionals with the said rural outlook with mission to learn the Rural Business professionally with focus on Retail networking.
Following the RUN (Retail – Use – Network) system, marketing insurance in rural space sounds more realistic, when this being sold as Smart-Career. Smart-Career is involved in marketing of Insurance policies and allied services, having wide experience of Referral Marketing with sufficient present customer network. This may be marketed for successful career in rural insurance. Such a move of Smart-Career has to be marked with '6-P' template of Rural Insurance Marketing:
Patience
Being patience is very important when a new assignment is taken up without knowing what may happen due to non availability historical data. Often the contracts with banks having big presence in rural markets take unusually high time to be signed. Further, after getting into the contract, there might be delivery pressures from the management of the insurance company as well the said bank subject to the best possible service for the referral customers. Only patience with own mind action is the solution…
Perseverance
It is all about determination and high energy. Focus must be clear when rural sentiments are to be aligned to the organizational mission of becoming successful in rural insurance marketing. Also, an individual taking on the responsibility of making insurance big in rural market must review all the successes enjoyed in every area of life to become determined. This determination will pave the path of delight of making a strong foundation in rural markets.
Passion
Its' is difficult always a Push Start a car … its' better to have one that starts on its own. The battery within puts required energy to make the engine roar. Am I talking of a car? ... It is an effort just to relate to one professional with sufficient motivation. So, passionate working may bring right attitude to become successful in rural insurance marketing.
Product
The knowledge about the product helps in providing best solutions for the customer who requires personalized and not generalized clarifications. The success mantra is to become an avid learner in the field of rural insurance marketing, who can be consulted even after the close of a sale. It is imperative to highlight that there is no patenting done in insurance products and, therefore, selling a product primary becomes full personalized effort. For becoming successful, it is imperative to be the master of the product.
People
It is about making habit of meeting people, and making sound network for being successful in rural insurance marketing. Making habit is significant! When a man makes the habit of smoking, even after knowing it being dangerous to the health, he smokes. So, is it a wrong idea to make meeting and networking people your habit, when you know that it is only and only aspect to make you booming?
Programme
Every body in business has some issue to remain in business where only tool to drive the business is programmes. You need to be good driver to handle a car; similarly a good driver of business must have handful understanding of driving programmes.
WRAPPING UP
As per press reports, Pantaloon Retail India, the retail arm of the Future Group, has entered into an agreement with the Italian insurer Generali, to set up life and non-life insurance joint ventures. The insurance companies will be named Future Generali Life Insurance and Future Generali General Insurance. Pantaloon Retail will hold a 56% stake, Pantaloon Industries will hold a 18% stake with Generali holding the remaining 26% stake in both joint ventures. The joint ventures will leverage on Pantaloon's retail outlets for distribution of insurance products.
It is reported that IDBI Bank has tied up with Fortis Insurance and Federal Bank for a life insurance joint venture. IDBI Bank and Fortis will hold stakes of 49% and 26% respectively with Federal Bank holding the remaining stake of 25%.
PNB Principal Life expects to commence operations in September 2006, and plans to focus on the group insurance segment. It is reported that UK Paints (a subsidiary of Berger Paints) will hold a 32% stake in the joint venture, Punjab National Bank will hold a 30% stake, Principal will hold a 26% stake and Vijaya Bank will hold a 12% stake.
It is reported that Sompo has tied up with Allahabad Bank, Indian Overseas Bank, Karnataka Bank and Dabur to set up a non-life insurance joint venture later this year. As per reports, Allahabad Bank will hold a 30% stake in the joint venture, Sompo will hold a 26% stake, Indian Overseas Bank will hold a 19% stake, Karnataka Bank will hold a 15% stake and Dabur will hold a 10% stake.
Canara Bank is planning a foray into life insurance. It is reportedly in talks with a few foreign insurers for a possible joint venture. Canara Bank currently has a corporate agency distribution tie-up with Aviva.
Bank of India is reportedly looking to set up a life insurance company with a foreign partner. It currently has a corporate agency distribution tie-up with ICICI Prudential.
Oriental Bank of Commerce, currently a corporate agent for the LIC, is also reportedly looking to enter the life insurance sector.
With so much happening in the insurance foray, there is positive likelihood of rural
renaissance as far as insurance is concerned. It may the rural India to drive the future growth
for insurance where a lot more is required to be researched. Policy formulations in future
may contribute more towards an understanding of how we can support rural masses struggle
against vulnerability, risk and poverty in respect of providing better avenues for
investments. It is an unexplored prospect and both scholars and policy makers should look
into this phenomenon before it is too late!
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