bba project a

8/13/2019 Bba Project A

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Specialization :

By : Aseem P. Pathak

Project Guide : Ashwin Dhala

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ANALYTICAL STUDY OF INSURANCE POLICIES

OFFERED BY LIFE INSURANCE CORPORATION OF

INDIA

(FIVE YR 2008-2012)


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INTRODUCTION OF TOPIC

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Financial Management means planning, organizing, directingand controlling the financial activities such as procurement and

utilization of funds of the enterprise. It means applying general

management principles to financial resources of the enterprise.

Life Insurance is considered to be an important part of an

individuals investment portfolio, not necessarily to accumulatewealth, but to feel financially secure. Other then this when you

opt for a life insurance policyyou enjoy other benefits also, like

tax-deduction options, and in some cases long term capital

gains. What is important when you opt for a policy is the term

and plan related to that particular policy. Always remember LifeInsurance is primarily made keeping your family and those who

are dependent on you in mind. There are various companies that

would ask you to opt for a policy from them, and incase if you are

an amateur investor and try to push things in a hurry, you might

end up settling for a wrong deal. Here, we will discuss on a fewguidelines that an individual should follow prior to opting for a
http://www.traderji.com/http://www.traderji.com/http://www.traderji.com/http://www.traderji.com/http://www.traderji.com/http://www.traderji.com/


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Company Profile

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Life Insurance in its modern form came to India from England inthe year 1818. Oriental Life Insurance Company started by

Europeans in Calcutta was the first life insurance company on

Indian Soil.

All the insurance companies established during that period were

brought up with the purpose of looking after the needs ofEuropean community and Indian natives were not being insured

by these companies. However, later with the efforts of eminent

people like Babu Muttylal Seal, the foreign life insurance

companies started insuring Indian lives.

In 1907, Hindustan Co-operative Insurance Company took itsbirth in one of the rooms of the Jorasanko, house of the great

poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,

General Assurance and Swadeshi Life (later Bombay Life) were

some of the companies established during the same period.


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OBJECTIVES OF THE STUDY

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How Life Insurance Corporation of India Insurance is bestservices providers as a Life Insurance Company.

To know about the awareness towards Insurance & benefits

of Insurance.

To study about the effectiveness & efficiency of Life

Insurance Corporation of India Insurance in relation to its

competitors.

To study about whether people are satisfied with Life

Insurance Corporation of India Insurance Services &

Management System or not.


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HYPOTHESIS OF THE STUDY

1/25/2014project name in short5

Consumer in favour of buying the insurance policy of LifeInsurance Corporation of India insurance.

To study the service quality being offered by Life Insurance

Corporation of India.

To clearly understand the rationale behind the investment in

policies of Life Insurance Corporation of India.

To analyze various problems confronted by the policyholders ofLife Insurance Corporation of India.


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THEORETICAL PERSPECTIVE

project name in short6

Theoretical studies of life and non-life insurance companies,

covering a range of topics relevant to capital and surplus

modeling of life and non-life insurance companies, including

Economic Capital calculations, stochastic reserve and capital

calculations, embedded value analyses, and stochastic productpricing and risk management.

Taken together, these case studies cover most of the widely-

used insurance applications of stochastic modeling to date, and

provide an illustrative framework from which future applications

can be developed.


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INTERPRETATION

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Particulars Response Percentage

Jeevan Arogya 6%

Bima Account 5%

Jeevan Anurag 9%

Jeevan Kishor 8%

Jeevan Adhar 8%

Jeevan Vishawas 7%

Jeevan Mitra 6%

Jeevan Anand 5%Money Back With Profit 10%

Bima Bachat 9%

Jeevan Bharthi 8%

Whole Life Policy 10%

Joint Life Plans 9%

Q1) Are you having any policy/ policies?

Interpretation

As seen in the graph above maximum respondents are used 10% Money Back with Profit and 10% Whole Life Policy thanothers 6% Jeevan Arogya, 5% Bima Account, 9% Jeevan Anurag, 8% Jeevan Kishor, 8% Jeevan Adhar, 7% Jeevan

Vishawas, 6% Jeevan Mitra, 5% Jeevan Anand, 9% Bima Bachat, 8% Jeevan Bharthi, and last 9% Joint Life Plans.


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Insurance Plan 9%

Children Plans 11%Plans For Handicapped dependents 8%

Endowment assurance plans 7%

Money back plan 18%

Special money back plan for Women 16%

Whole life plans 19%

Joint Life Plan 12%

Q2) Which Type of Policy/Policies you have taken?

Interpretation

As seen in the graph above maximum respondents are used 19% Whole life plans, 18% Money backplan, than others 9% Insurance Plan , 11% Children Plans , 8% Plans For Handicapped dependents , 7%Endowment assurance plans , 16% Special money back plan for Women and last 12% Joint Life Plans.


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Yes 61%

No 22%

Will think 17%

Q3). Are you interested in products offered by the Life Insurance Policy?

Interpretation

The good thing is that at least the corporate were quite eager to find out what LIC Life Insurance Policy has tooffer whereas the major 61 % of the corporate were not even interested in the products as they are quitesatisfied by the LIC and they are not in breaking their long relationship with them. The private players will haveto play a long battle in order to ensure that they are serious player in the market.


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1/25/2014 project name in short 10


Yes 95%

No 5%

Q4). Are you satisfied with your present insurer Life Insurance Policy?

Interpretation

Here is where the challenge is. Inevitably most of the players are very satisfied with their present insurerwhich makes it tougher for the private players to attract the corporate. The remaining 5 % are also notvery dissatisfied by the services but they are just open to new avenues and are looking forward thatprivate companies come with good offers so that they may shift to them. Thus private players will have tobe very proactive and in this regard since LIC is the leader and LIC Life Insurance Policy is lagging behindits competitors in terms of competition.


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Q5). What is peoples main concern while taking a insurance policy?

Concern of People Response Percentage

Security 10%

Savings 70%

Tax 20%

Interpretation-

This pie diagram shows that People Investing more in Business for the concern of Savings Mainly.


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Companies name Percentage of people

LIC 60%

ICICI 10%

BAJAJ ALLIANZ 5%

BHARTI-AXA 15%

SBI 8%

KOTAK MAHINDRA 2%

Q6). Where would you like to insure if given chance?

Interpretation-

Thus we see that the companies are comfortable in having business with govt. owned companies as they feelits safe & secure to have business with them which is followed by SBI as it is the biggest bank.


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Q7). LIC Life Insurance Policy Aspire Life satisfy your financial needs? (Please rate on the scale of 1 to10 with one being least satisfied)

CustomersResponse

(Ratings on scale 1-10)

I 26%

II 11%

III 21%

IV 5%

V 16%

VI 13%

VII 8%

Interpretation-

The response of customers show that they are average satisfied and some are also least satisfied after taking the

insurance policy.


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Q8). Opinion for the premiums paid for the various policies by the customers?

Satisfaction Levels Response Percentage

Very Low 9%

Low 10%

Moderate 11%

High 30%

Very High 40%

Interpretation-

40%people are very highly satisfied, 30% of people are highly satisfied,11% are moderate, 10% of people are lowsatisfied, 9% are very low satisfied.


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Q9) How you come to know about this policy?


Advertisements 31%

Friends and Relatives 9%

Direct selling 26%(i) and (ii) 4%

(ii) and (iii) 14%

(iii) and (i) 10%

Interpretation-

This pie diagram shows that People know about this policy Mainly from 26% people Direct selling and 31% people fromadvertisement.


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Q10). Are there any incentives (tax benefits or Bonuses) associated with insurance policy


Tax Benefits 60%

Bonuses 40%

Interpretation-

Responses show that customers prefer more of tax benefit rather than the bonuses while taking insurance policy. Thats whythe ratio of Tax benefit to Bonus is 3:2.


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Q11). Are you satisfied with the incentives associated with your policy?

Satisfaction Level of Customers Level of Satisfaction (in %)

Highly Satisfied 30%

Satisfied 40%

Moderate 15%

Unsatisfied 5%

Highly Unsatisfied 10%

Interpretation-

It shows that the customers are moreover satisfied with the incentives plans but to cater the needs of othercompany may have to look for other incentives.


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CONCLUSIONS


On the basis of the study it has been seen that researcher gotthat most of the persons are aware of the benefits of life

insurance. Some people who had not life insurance they were

with positive thinking about life insurance & were planning to

have it.

Some people who has low income they were not interested in

life insurance but when I told them about differentdifferent plan

so they were quite interested in it. I hope they will definitely

change their mind & will be aware of benefits of life insurance.


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REFERENCES


Books:

Life and Health InsuranceKenneth Black and Harold D.

Fundamental of Risk and Insurance- Emmet J Vaughan and John Willy.

PROJECT REPORT WRITING- Author: - M.K.Rampal & S.L. Gupta

RESEARCH METHODOLOGY METOHDS & TECHNIQUES- Author: -

C.R.Kothari

FINANCIAL SERVICES AND MARKETS- Author: - Dr. Gurusamy

Magazines

Mehra,Puja, India Today (27th MAY2006) PAGE 43

Sinha, Prabhakar, The Times Of India (16thMAY2006) PAGE 1

Brunch(16thjuly 2006)Websites

http://www.licindia.in/joint_life_001_features.htm

www.irdaindia.org

http://www.sebi.com
http://www.licindia.in/joint_life_001_features.htmhttp://www.irdaindia.org/http://www.sebi.com/http://www.sebi.com/http://www.irdaindia.org/http://www.licindia.in/joint_life_001_features.htm

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