complete project met life india
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A
GRAND PROJECT REPORT
ON
Potential of Life Insurance in INDIA
At
A Project Report Submitted In Partial
Fulfillment of MBA Degree
Under The Project Guidance of
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CONTENTS
PARTISULARS Page No.
AcknowledgementExecutive Summary
45
Introduction
Introduction of the Industry
Life Insurance
Function of insurance
Players in Indian insurance industry
Seven ps of insurance industry
Various types of Life Insurance Policies
Introduction of the Company
Company Profile
Vision and mission
Values
Management partners
Insurance Plans/Products
S.W.O.T analysis
(7-24)
710131623
25272829
303250
Research Methodology
Objective
Scope of study
Sampling Methodology Limitations
(54-59)5556
5759
Survey
Graph Analysis & Data Interpretation
(60-81)61
Findings & recommendations
Findings & Recommendations
Growth Potential
Conclusion
(82-84)8283
84
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Bibliography (85)
Annexure
Questionnaire
(86-87)87
LIST OF GRAPHS
Particulars Page
No.
[Fig 1] No of People Having Insurance
[Fig 2] Types of Insurance Policy Respondents Have
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[Fig 3]Preferance of Respondents of Insurance Cos
[Fig 4] Benefits of Insurance Perceived by Respondents
[Fig 5]Features of Insurance Policy That Attracted Respondents
[Fig 6] Peoples Perception About Insurance
[Fig 7] Persons Having Insurance For
[Fig 8] Reasons Behind Taking Insurance Policies
[Fig 9] Satisfaction of Respondents With Respect to Policies
[Fig 10] Satisfaction of Respondents With Respect to Agents
[Fig 11] No of Respondents Paying Tax
[Fig 12] Respondents Perception About Best Form of Investment
[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance
[Fig 14] Peoples Opinion About Insurance Companies in India
[Fig 15] What People Look For in Insurance Companies
[Fig 16] People Interested In Going For Insurance Away From Their
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City
[Fig 17] People Planning For New Investment 78
ACKNOWLEDGEMENT
I am thankful to MetLife India Insurance Co. Ltd. for providing me an opportunity
to undertake project in their esteemed organization. I would like to special thanks
to my project managerMr. Smeet Mehta (Sales Manager) and Mr sarvin Dalal
(Agency manager) at MetLife India Insurance Co. Ltd,Ahmadabad. who helped
me throughout the project and also encouraged me to take this project in future
course for my career. I am also thankful to all the staff members ofMetLife India
Insurance Co. Ltdto make my project successful.
I am also thankful to Pro. Arnash mem (faculty members) for providing me
guidance in preparing my project report.
Last but not the least I am thankful to my parents and god for helping me a
Lot.
.
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JAGDISH J GONDALIYA.
EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and MET LIFE
INDIA INSURANCE CO. LTD. has given me the opportunity to work and get
experience in highly competitive and enhancing sector.
The success story of good market share of different organizations depends
upon the availability of the product and services near to the customer, which
can be distributed through a distribution channel. In Insurance sector,
distribution channel includes only agents or agency holders of the company.
If a company like MET LIFE INDIA INSURANCE CO. LTD, MAX NEW
YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the
market they can capture big market as compared to the other companies.
Agents are the best way for a company of Insurance sector through which
policies and benefits of the company can be explained to the customer.
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6
INTRODUCTION
Introduction of the Industry
Players in Indian insurance industry
7ps of Insurance industry
Introduction of the Company
Company Profile
Vision and mission
Core value
Management Insurance Plans
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THE HISTORY OF INDIAN INSURANCE INDUSTRY
The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss
and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely
a development of the recent past, particularly after the industrial era past few
centuries yet its beginnings date back almost 6000 years.
Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were
made with the introduction of the Indian Life Assurance Companies Act in 1912. A
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number of amendments to this Act were made until the Insurance Act was drawn
up in 1938. Noteworthy features in the Act were the power given to the
Government to collect statistical information about the insured and the high level
of protection the Act gave to the public through regulation and control. When the
Act was changed in 1950, this meant far reaching changes in the industry. The
extra requirements included a statutory requirement of a certain level of equity
capital, a ceiling on share holdings in such companies to prevent dominant control
(to protect the public from any adversarial policies from one single party), stricter
control on investments and, generally, much tighter control. In 1956, the market
contained 154 Indian and 16 foreign life insurance companies. Business was
heavily concentrated in urban areas and targeted the higher echelons of society.
Unethical practices adopted by some of the players against the interests of the
consumers then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into
the so-called Life Insurance Corporation (LIC). It was felt that nationalization has
lent the industry fairness, solidity, growth and reach.
Insurance may be described as a social device to ensure protection of
economic value of life and other assets. Under the plan of insurance, a
large number of people associate themselves by sharing risks attached to
individuals. The risks, which can be insured against, include fire, the perils
of sea, death and accidents and burglary. Any risk contingent upon these,
may be insured against at a premium commensurate with the risk involved.
Thus collective bearing of risk is insurance.
Insurance is a contract whereby, in return for the payment of premium by
the insured, the insurers pay the financial losses suffered by the insured as
a result of the occurrence of unforeseen events. The term "risk" is used to
describe the possibility of adverse results flowing from any occurrence or
the accidental happenings, which produce a monetary loss.
Insurance is a pool in which a large number of people exposed to a similar
risk make contributions to a common fund out of which the losses suffered
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by the unfortunate few, due to accidental events, are made good. The
sharing of risk among large groups of people is the basis of insurance. The
losses of an individual are distributed over a group of individuals.
Definitions:
General definition:
In the words of John Magee, Insurance is a plan by themselves which large
number of people associate and transfer to the shoulders of all, risks that attach to
individuals.
Fundamental definition:
In the words of D.S. Hansell, Insurance accumulated contributions of all
parties participating in the scheme.
Contractual definition: In the words of justice Tindall, Insurance is a
contract in which a sum of money is paid to the assured as consideration of
insurers incurring the risk of paying a large sum upon a given contingency.
Characteristics of insurance
Sharing of risks
Cooperative device
Evaluation of risk
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred.
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The success of insurance business depends on the large number of
people insured against similar risk.
Insurance is a plan, which spreads the risk and losses of few people
among a large number of people.
The insurance is a plan in which the insured transfers his risk on the
insurer.
Insurance is a legal contract which is based upon certain principles of
insurance which includes, utmost good faith, insurable interest,contribution, indemnity, causas proxima, subrogation, etc.
The scope of insurance is much wider and extensive.
Functions of insurance:
Primary functions:
1. Provide protection:- Insurance cannot check the happening of the risk,but can provide for the losses of risk.
2. Collective bearing of risk: - Insurance is a device to share the financial
losses of few among many others.
3. Assessment of risk: - Insurance determines the probable volume of risk
by evaluating various factors that give rise to risk.
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4. Provide certainty: - Insurance is a device, which helps to change from
uncertainty to certainty.
Secondary functions:
1. Prevention of losses: - Insurance cautions businessman and individuals
to adopt suitable device to prevent unfortunate consequences of risk by
observing safety instructions.
2. Small capital to cover large risks: - Insurance relives the businessman
from security investment, by paying small amount of insurance against
larger risks and uncertainty.
3. Contributes towards development of larger industries.
Other Function:
Means of savings and investment:
Insurance companies are business houses. The product they sell is
financial protection. To succeed and survive, they must cover their costs,
which
include payments to cover the losses of policyholders, as well as sales and
administrative expenses, taxes and dividends.
Insurance companies have two sources of income for covering these
costs: premiums and investment income. The premiums are collected on
a regular basis and invested in Government Bonds, Gilt, stocks, mutual
funds, real estates and other conservative avenues. However, investment
income depends on market conditions, interest rates, economy etc. and
varies from year to year. Because of the uncertainty associated with the
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investment income, insurance companies must generate enough income
from premiums to cover the bulk of their expenses.
Some of the important milestones in the life insurance business in India are:
1818 : Oriental Life Insurance Company, the first life insurance company onIndian soil started functioning.
1870 : Bombay Mutual Life Assurance Society, the first Indian life 'Insurance
company started 'Its business,
1912 : The Indian Life Assurance Companies Act enacted as the first statute toregulate the life 'Insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government toCollect statistical 'Information about both life and non life insurance businesses.
1938 : Earlier legislation consolidated and amended to by the Insurance Act withthe objective of protecting the 'Interests of the insuring pubic.
1956 : 245 Indian and foreign insurance and provident societies are 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 chores from the Government of
India.
Liberalization of Indian Insurance
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1994: Insurance sector invited private participation to induce a spirit of
competition amongst the various insurers and. to provide a choice to the
consumers.
1997: Insurance regulator IRDA was set up as there felt the Feed:
To set up an independent regulatory body, that provides greater autonomy to
insurance companies in order to improve their performance, In the first year of
insurance market liberalization (2001) as much as 16 private sector companies
including joint ventures with leading foreign insurance companies have entered the
Indian insurance sector. Of this, 10 were under the life insurance category and six
under general insurance. Thus in all there are 25 players (12-life insurance and l3-
general insurance) in the Indian insurance industry till date.
PLAYERS IN INDIAN INSURANCE INDUSTRY
6.1 LIFE INSURERS
Insurance industry, as on 1.4.2000, comprised mainly two players: the state
insurers:
Life Insurance Corporation of India (LIC)
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6.2 GENERAL INSURERS:
General Insurance Corporation of India (GIC) (with effect from
Dec'2000, a National Reinsure)
GIC had four subsidiary companies, namely ( with effect from Dec'2000,
these subsidaries have been de-linked from the parent company and made
as independent insurance companies.
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited,
3. National Insurance Company Limited
4. United India Insurance Company Limited.
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Yr: 2000-2007: Insurance Industry in the year 2000-2001 had 15 new
entrants, namely:
Life Insurers:
S.No. Name of the Company
1 Max New York Life Insurance Co. Ltd.
2 HDFC Standard Life Insurance Company Ltd.
3 ICICI Prudential Life Insurance Company Ltd.
4 Om Kotak Mahindra Life Insurance Co. Ltd.
5 Birla Sun Life Insurance Company Ltd.
6 Tata AIG Life Insurance Company Ltd.
7 SBI Life Insurance Company Limited
8 ING Vysya Life Insurance Company Private Limited
9 Allianz Bajaj Life Insurance Company Ltd.
10 Metlife India Insurance Company Pvt. Ltd.
11 Reliance Life Insurance Company Ltd.
12 Shriram Life Insurance Company Ltd.
13 Sahara India Life Insurance Company Ltd.
14 Bharti AXA Life Insurance Company Ltd.
15 Aviva Life Insurance Company Ltd.
General Insurers:
S.No. Name of the Company
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1 Royal Sundaram Alliance Insurance Company Limited
2 Reliance General Insurance Company Limited.
3 IFFCO Tokio General Insurance Co. Ltd
4 TATA AIG General Insurance Company Ltd.
5 Bajaj Allianz General Insurance Company Limited
6 ICICI Lombard General Insurance Company Limited.
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SEVEN Ps OF INSURANCE SECTOR:
7 Ps Of Insurance Sector
Product PricingPromotions
Place
People Process
PhysicalEvidence
Wherever there is uncertainty there is risk. We do not have any control over
uncertainties which involves financial losses. The risks may be certain events like death,
pension, retirement or uncertain events like theft, fire, accident, etc.
Insurance is a financial service for collecting the savings of the public and providing
them with risk coverage. The main function of Insurance is to provide protection against
the possible chances of generating losses. It eliminates worries and miseries of losses by
destruction of property and death. It also provides capital to the society as the funds
accumulated were invested in productive heads. Insurance comes under the service
sector and while marketing this service, due care is to be taken in quality product and
customer satisfaction. While marketing the services, it is also pertinent that they think
about the innovative promotional measures. It is not sufficient that you perform well
but it is also important that you let others know about the quality of your positive
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contributions. The creativity in the promotional measures is the need of the hour. The
advertisement, public relations, word of mouth communication needs due care and
personal selling requires intensive care.
INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of
Insurance services with the aim to create customer and generate profit through customer
satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for
Insurance business so that the Insurance organisation survives and thrives in the right
perspective.
MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the
combination of marketing activities that an organisation engages in so as to best meet
the needs of its targeted market. The Insurance business deals in selling services
and therefore due weight-age in the formation of marketing mix for the Insurance
business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e.
the product, its price, place, promotion, people, process & physical attraction. The above
mentioned 7 P's can be used for marketing of Insurance products, in the followingmanner:
1.Product:
A product means what we produce. If we produce goods, it means tangible product and
when we produce or generate services, it means intangible service product. A product is
both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells
services and therefore services are their product.
In India, the Life Insurance Corporation of India (LIC) and the General Insurance
Corporation (GIC) are the two leading companies offering insurance services to the
users. Apart from offering life insurance policies, they also offer underwriting and
consulting services. When a person or an organisation buys an Insurance policy from the
insurance company, he not only buys a policy, but along with it the assistance and
advice of the agent, the prestige of the insurance company and the facilities of claimsand compensation. It is natural that the users expect a reasonable return for their
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investment and the insurance companies want to maximize their profitability. Hence,
while deciding the product portfolio or the product-mix, the services or the schemes
should be motivational. The Group Insurance scheme is required to be promoted, theCrop Insurance is required to be expanded and the new schemes and policies for the
villagers or the rural population are to be included. The Life Insurance Corporation has
intensified efforts to promote urban savings, but as far as rural savings are concerned, it
is not that impressive. The introduction of Rural Career Agents Scheme
has been found instrumental in inducing the rural prospects but the process is at infant
stage and requires more professional excellence. The policy makers are required to
activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of
direct investment for rural development. Investment in Government securities should be
stopped and the investment should be channelized in private sector for maximizing
profits. In short, the formulation of product-mix should be in the face of innovative
product strategy. While initiating the innovative process it is necessary to take into
consideration the strategies adopted by private and foreign insurance companies.
2.Pricing:
In the insurance business the pricing decisions are concerned with:
i) The premium charged against the policies,
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities. With a view of
influencing the target market or prospects the formulation of pricing strategybecomes significant. In a developing country like India where the disposable income in
the hands of prospects is low, the pricing decision also governs the transformation of
potential policyholders into actual policyholders. The strategies may be high or low
pricing keeping in view the level or standard of customers or the policyholders. The
pricing in insurance is in the form of premium rates. The three main factors used for
determining the premium rates under a life insurance plan are mortality, expense and
interest. The premium rates are revised if there are any significant changes in any of
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these factors.
Mortality (deaths in a particular area): When deciding upon the pricing strategy the
average rate of mortality is one of the main considerations. In a country like SouthAfrica the threat to life is very important as it is played by host of diseases.
Expenses: The cost of processing, commission to agents, reinsurance companies as
well as registration are all incorporated into the cost of installments and premium sum
and forms the integral part of the pricing strategy
Interest: The rate of interest is one of the major factors which determines people's
willingness to invest in insurance. People would not be willing to put their funds toinvest in insurance business if the interest rates provided by the banks or other financial
instruments are much greater than the perceived returns from the insurance premiums.
3.Place:
This component of the marketing mix is related to two important facets --
i) Managing the insurance personnel, and
ii) Locating a branch. The management of agents and insurance personnel is found
significant with the viewpoint of maintaining the norms for offering the services. This is
also to process the services to the end user in such a way that a gap between the
services- promised and services -- offered is bridged over. In a majority of the service
generating organizations, such a gap is found existent which has been instrumental in
making worse the image problem. The transformation of potential policyholders to the
actual policyholders is a difficult task that depends upon the professional excellence of
the personnel. The agents and the rural career agents acting as a link, lack
professionalism. The front-line staff and the branch managers also are found not
assigning due weight-age to the degeneration process. The insurance personnel if not
managed properly would make all efforts insensitive. Even if the policy makers make
provision for the quality upgrading the promised services hardly reach to the end users.
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It is also essential that they have rural orientation and are well aware of the lifestyles of
the prospects or users. They are required to be given adequate incentives to show their
excellence. While recruiting agents, the branch managers need to prefer local personsand provide them training and conduct seminars. In addition to the agents, the front-line
staff also needs an intensive training program to focus mainly on behavioral
management. Another important dimension to the Place Mix is related to the location of
the insurance branches. While locating branches, the branch manager needs to consider a
number of factors, such as smooth accessibility, availability of infrastructural facilities
and the management of branch offices and premises. In addition it is also significant to
provide safety measures and also factors like office furnishing, civic amenities and
facilities, parking facilities and interior office decoration should be given proper
attention. Thus the place management of insurance branch offices needs a new vision,
distinct approach and an innovative style. This is essential to make the work place
conducive, attractive and proactive for the generation of efficiency among employees.
The branch managers need professional excellence
to make place decisions productive.
4. Promotion:
The insurance services depend on effective promotional measures. In a country like
India, the rate of illiteracy is very high and the rural economy has dominance in the
national economy. It is essential to have both personal and impersonal promotion
strategies. In promoting insurance business, the agents and the rural career agents play
an important role. Due attention should be given in selecting the promotional tools for
agents and rural career agents and even for the branch managers and front line staff.
They also have to be given proper training in order to create impulse buying.
Advertising and Publicity, organisation of conferences and seminars, incentive to
policyholders are impersonal communication. Arranging Kirtans, exhibitions,
participation in fairs and festivals, rural wall paintings and publicity drive through the
mobile publicity van units would be effective in creating the impulse buying and the
rural prospects would be easily transformed into actual policyholders.
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7. Physical evidence:
Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. If the insurers are willing to take advantage
of India's large population and reach a profitable mass of customers, then new distribution
avenues and alliances will be necessary. Initially insurance was looked upon as a complex
product with a high advice and service component.
Buyers prefer a face-to-face interaction and they place a high premium on brand names
and reliability. As the awareness increases, the product becomes simpler and they becomeoff-the-shelf commodity products. Today, various intermediaries, not necessarily insurance
companies, are selling insurance. For example, in UK, retailer like Marks & Spencer sells
insurance products. The financial services industries have successfully used remote
distribution channels such as telephone or internet so as to reach more customers, avoid
intermediaries, bring down overheads and increase profitability. A good example is UK
insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of the
largest motor insurance operator.
Technology will not replace a distribution network though it will offer advantages like
better customer service. Finance companies and banks can emerge as an attractive
distribution channel for insurance in India. In Netherlands, financial services firms provide
an entire range of products including bank accounts, motor, home and life insurance and
pensions. In France, half of the life insurance sales are made through banks. In India also,
banks hope to maximize expensive existing networks by selling a range of products. It is
anticipated that rather than formal ownership arrangements, a loose network of alliance
between insurers and banks will emerge, popularly known as bancassurance.
Another innovative distribution channel that could be used are the non-financial
organisations. For an example, insurance for consumer items like fridge and TV can be
offered at the point of sale. This increases the likelihood of insurance sales. Alliances with
manufacturers or retailers of consumer goods will be possible and insurance can be one of
the various incentives offered
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Various types of life insurance policies:-
Endowment policies: This type of policy covers risk for a specified period,
and at the end of the maturity sum assured is paid back to policyholder with
the bonuses during the term of the policy.
Money back policies: This type of policy is for periodic payments of partial
survival benefits during the term of the policy as long as the policy holder is
alive. Group insurance: This type of insurance offers life insurance protection
under group policies to various groups such as employers-employees,
professionals, co-operatives etc it also provides insurance coverage for
people in certain approved occupations at the lowest possible premium cost.
Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policy holder survives the term, risk
cover comes to an end. These types of policies are for those people who are
unable to pay larger premium required for endowment and whole life
policies. No surrender, loan or paid up values are in such policies.
Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the policyholder. In
this policy the insured amount and the bonus is payable only to nominee on
the death of policy holder.
Joint life insurance policies: These policies are similar to endowment
policies in maturity benefits and risk cover, but joint life policies cover two
lives simultaneously such as married couples. Sum assured is payable on the
first death and again on the death of survival during the term of the policy.
Pension plan: a pension plan or annuity is an investment over a certain
number of years but does not provide any life insurance cover. It offers aguaranteed income either for a life or certain period.
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Unit linked insurance plan: ULIP is a kind of insurance plan which
provides life cover as well as return on premium paid over a certain periodof time. The investment is denoted as units and represented by the value
called as net asset value (NAV).
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COMPANY PROFILE
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife,Inc. and was incorporated as a joint venture between MetLife International
Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private
Limited and other private investors. MetLife is one of the fastest growing life
insurance companies in the country. It serves its customers by offering a range of
innovative products to individuals and group customers at more than 600 locations
through its bank partners and company-owned offices. MetLife has more than
50,000 Financial Advisors, who help customers achieve peace of mind across the
length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million customers in the
Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include
the number one life insurer in the United States (based on life insurance enforce),
with over 140 years of experience and relationships with more than 90 of the top
one hundred FORTUNE 500 companies. The MetLife companies offer life
insurance, annuities, automobile and home insurance, retail banking and otherfinancial services to individuals, as well as group insurance, reinsurance and
retirement and savings products and services to corporations and other institutions.
MetLife Inc.:-
Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and
financial services with operations throughout the United States and the LatinAmerica, Europe, and Asia Pacific regions. Through its domestic andinternational
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subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers
around the world and MetLife is the largest life insurer in the United States (based
on life insurance in-force).
The MetLife companies offer life insurance, annuities, auto and home insurance,
retail banking and other financial services to individuals, as well as group
insurance and retirement & savings products and services to corporations and other
institutions.
FACT SHEET
Founded 2001
Started Operation FY 2001-02
Headquarters Bangalore, India
World Wide Web Address www.metlife.co.in
Managing Director Rajesh Relan
Employees 7688
Financial Advisors 56,072
Bancassurance Tie-Ups 5 (J&K Bank/Axis
Bank/Dhanalakshmi Bank/Karnataka
Bank/Barclays)
Number Of Products Over 20 products
Presence Through MetLife Offices 192 offices in 131 cities
Presence Through Bank Partners 1910 offices in 686 cities
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Vision and Mission
Build financial freedom for all through leadership in providing financial advice and
building long-term relationships through innovative protection, accumulation and
retirement products, robust underwriting processes and creating world-class
customer service experience for our customers
.
We want to provide customers in India with world-class solutions for financial
security, and in the process add significant value to our shareholders, associates
and society.
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Our Core Values
We lead through Innovation to offer world class and competitive products toour customers
We build Long Term Relationships with our customers by creating a world
class service experience through operational excellence and the innovativeuse of technology
We create a Customer Centered and Result Focused Vision that inspires eachone of our Associates and has their buy-in
We are committed to creating a High Performance Organization by creatingan environment that allows each one of our Associates to perform at their
peak. As a result we will also be recognized as an Employer of Choice
We are committed to Partnering with our internal and external Customers formutual success
We work with Integrity, Fairness and Financial Prudence in all our dealingskeeping the interests of our Shareholders, Customers and Associates
paramount
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Rajesh Relan
Managing Director
MSVS Phanesh Murthy
Appointed Actuary
Shilpa Vaid
Deputy Director- Human Resources
Gaurav Sharma
Director - Customer Service and Operations
Girish Malhotra
Director- Agency
KR Anil Kumar
Director - Financial Planning& Controller
KS Raghavan
Chief Administrative Officer
Preetinder Chadha
Deputy Director - Corporate Sales & Training
P. S. Sankaran
Director Business Support
Sameer Bansal
Director- BA & BP
Vijay Raghavan
Director - Marketing & Strategy
Partners:-
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Corporate Social Responsibility:-
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MetLife has always been committed to making a positive difference in the
lives of the individuals and communities. Today, that commitment drives
volunteer work and philanthropy across the globe. Working with non-profit
organizations, MetLife supports programs that provide young people with the
skills they need to succeed in life and create opportunities for people of all
ages.
MetLifes core values are personal responsibility, people count, partnership,
integrity and honesty, innovation and financial strength. These values also
shape the responsibility to the communities where the organization conducts its
business.
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Child Plan:-
Met Bhavishya
MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out funds
to help to meet the education and career milestones of children. With this plan, the
Life Insured is that of the parent. The plan also has inbuilt guaranteed additions to
add value to the policy over its term.
There are two options to choose from and fixed term benefits, periodic additions &
terminal additions are payable based on the option that select. The policy is
suitable for parents with children between the ages 0-12 and parents in the age
group of 20-50 years old.
Met Junior Endowment
MetLife offers 'Met Junior'- a flexible endowment plan that combines savings andsecurity. Children's well-being is our highest priority. So MetLife offer a plan
which offers both timely and efficient return on investment. All with a guarantee.
Met Junior - Non Par
On attaining maturity, the Person Insured will receive the Sum Assured.
Met Junior - Par
On attaining maturity, the Person Insured will receive the Sum Assured, the
Reversionary Bonus and the Terminal Bonus, if any.
Met Little Star
When child is born, a star is born in family. And, parents would like to provide
their star with all the building blocks that could develop his or her potential to the
fullest. This could mean special instruction sessions for talented children, unique
training gear for exceptional athletes or qualified training for born singers to
provide that extra-edge.
To ensure this, parents would need an investment and protection package that is
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exclusively designed to help you plan for financial security, no matter what
uncertainties life brings.
'Met Little Star', aUnit-Linked, regular premium, child insurance plan helps parentsdo just that. It secures finances for child's educational needs and ensures that plans
go as planned, no matter what the circumstances.
\Met Junior Money Back
MetLife offers 'Met Junior Money Back' - a money back plan that combines
savings and security. Child's well-being is our highest priority. So MetLife offer a
money back plan which provides guaranteed periodic survival benefits at the end
of 5, 10 & 15 years, along with guaranteed growth of savings.
A plan which offers both timely and efficient return on investment with payouts at
different milestones.
Survival Benefit
At the end of 5 years 20% of Sum Assured
At the end of 10 years 20% of Sum Assured
At the end of 15 years 20% of Sum Assured
Upon survival to
maturity
40% of Sum Assured plus total
Guaranteed Additions
Met Magic
MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular premium) life
insurance plan (Non Par).
Parents always want their little angel to have the best, in every sphere of life. You
don't want your child to have to compromise. No matter what the circumstances.
Met Magic, a unique life insurance plan, helps you secure the future of your loved
one!
(IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THEPOLICY HOLDER )
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Retirement:-
Met Growth
MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is
specially designed to provide financial security for future requirements. This plan
allows to start planning immediately by ensuring the safety of first year
premiums. It also helps create retirement fund faster by giving you 100%
allocation from the second year onwards, coupled with attractive loyalty additions
into fund. Guaranteed.
Entry Age (in completed years) Min 0 years (3 months to be completed)
Max 60 years
Maturity Age Min 18 years
Max 75 years
Coverage Term 15 / 20 / 25 / 30 years
Premium Payment Term Regular
Minimum Annualized Premium Rs. 12,000
Basic Sum Assured Min - 5 times the Annualized Premium ***Other Sum
Assured multiples - 10 times & 20 times the Annualized
Premium.
Premium Paying Modes Monthly, Quarterly, Half-yearly, Yearly
Benefit
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Death Benefit
In the unfortunate event of death, the higher of the Sum Assured or the
Fund Value would be payable.
If death of the Person Insured occurs before age 7, the Fund Value plusthe regular premium received by us in the first policy year is payable.
Maturity Benefit
On maturity, you will receive the Fund Value including the Guaranteed
Loyalty Addition or you can opt for the settlement options.
Loyalty Additions
You get the guarantee of enhancing your wealth creation through
guaranteed loyalty additions (up to 120% of the first year annual
premium) at the end of the 10th & 15th year plus Guaranteed Additions
as a % of the Fund Value.
At the end of the 10th year: 50% of the first year annualized premium
At the end of the 15th year:
Met Advantage Plus
MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to
effectively and efficiently accumulate retirement needs. As the name suggests, it
comes with many advantages.One can choose from eight annuity options, two life
cover options and get tax benefits under Section 80 C and 10 (10 A). One can buy
the plan without any hassles and invest more as you approach retirement by using
the top-up functionality. All in all, its a plan which works harder when one stop
working. For one, it ensures that you lead a comfortable lifestyle post retirement.
Entry Age (in completed years) Min 20 yearsMax 55 years
Minimum Term 10 years
Minimum Vesting Age 45 years
Maximum Vesting Age 65 years
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Minimum Premiums Single Pay: Rs. 1,00,000Regular Premium: Rs. 10,000
Premium Paying Term Single Pay & Regular Pay
Benefits
Death BenefitIn case of death during the accumulation period, the death benefit payable is:Under Option A: A guaranteed amount of 110% of the Fund Value is payable to thenominee.Under Option B: 100% of the Fund Value is payable to the nominee.
Vesting Benefit
On the vesting date, i.e. at the end of the accumulation term,you can take one-thirdof your retirement kitty as a tax-free lump sum and utilize the balance to buyannuities. Or you can use the entire retirement kitty to buy annuities.
Met Pension-Par
'Met Pension (Par)' serves as a friendly helping hand so one can stay financiallyindependent even after retirement. It helps to build up a fund for golden years.
With this plan,one can ensure his\her enjoy retirement as a happy new chapter.
Entry Age (in completed
years)
Min 18 yearsMax 60 years
Minimum Term 10 years
Minimum Vesting Age 45 years
Maximum Vesting Age 70 years
Minimum Sum Assured Rs. 50,000
Maximum Sum Assured No Limit
Minimum Annual
Premium
Rs. 4000 p.a. for Regular Pay
Premium Payment Term Single Pay, Limited Pay (3 or 5 Pay) & RegularPay
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Benefits
Death Benefit
In case of death while one is saving for retirement, the death benefit payableis:
1. Return of premiums.
2. Accrued reversionary bonus, if any.
3. Any insurance on the life of the Insured that may be provided by riders to
this policy.
Vesting BenefitOn the vesting date, you can take one third of your retirement kitty as a tax-
free lump sum and utilize the balance to buy annuities or you can use the
entire retirement kitty to buy annuities. The retirement fund on the date of
vesting is equal to the Sum Assured plus Guaranteed Additions plus the
compounded reversionary bonuses plus the terminal bonus, if any.
Guaranteed Additions
Savings:-
Met Sukh
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MetLife offers 'Met Sukh'- a guaranteed money-back policy which providesguaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years andguaranteed additions of 10% of the Sum Assured for the entire term. It not only
covers your life, but also guarantees you cash payments at various milestones alongwith guaranteed growth of your savings.
Entry Age Min - 15 years
Max - 55 years
Coverage Term 20 years
Premium Payment Term Regular
Minimum Sum Assured Rs. 75,000
Maximum Sum Assured No Limit
Benefits
Death Benefit
In the unfortunate event of death of the Person Insured, the Sum
Assured along with the Guaranteed Additions are payable.
The policyholder is entitled to Guaranteed Additions of Rs. 100 per Rs.
1,000 of the Sum Assured for each completed year.
Maturity Benefit
On maturity, the life insured will receive the Survival Benefits plus the
Guaranteed Addition.
Survival Benefits
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At the end of 5 years 20% of the Sum Assured
At the end of 10 years 20% of the Sum Assured
At the end of 15 years 20% of the Sum Assured
Upon survival to
maturity
40% of the Sum Assured
plus Total Guaranteed
Additions
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Met Suvidha
'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In
addition to providing you protection till the maturity of the plan, it helps you save
for your specific long term financial objectives. This long term savings-cum-
protection plan comes to a customer at affordable premiums.
Met Suvidha is available in both participating as well as non-participating versions.
Minimum Entry Age Par: 15 years - 60 years
Non-Par: 15 years - 70 years
Term Par: - 15 years - 30 years
Non-Par: 5 years - 30 years
Premium Paying Terms Single Pay, Limited Pay (5 or 10) &
Regular Pay
Minimum Annual Premium Amount Rs. 2,500
Minimum Sum Assured Rs. 75,000
Maximum Sum Assured No Limit
Met Saral
MetLife presents 'Met Saral' - a non- participating endowment plan. As the name
suggests, its a simple savings plan which gets customer into the savings habit
without any medical tests. All need to do is fill in a simple application form and are
ensured a guaranteed maturity amount of Rs 100,000, even in the case of death
during the term. Take the first step towards a better financial future for customerand his family. Ensure and insure the first Lakh.
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Met 100
'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25
years.
It helps create a legacy for the children, leaving money for a dependant spouse and,
more importantly, provides insurance cover at affordable rates.
Met 100 is available in participating as well as non- participating versions.
Non-Par Par
Minimum Entry Age 15 yrs 0 yrs
Maximum Entry Age 70 yrs for ppt of 15 yrs
65 yrs for ppt of 20 yrs
60 yrs for ppt of 25 yrs
70 yrs for ppt of 15
yrs
65 yrs for ppt of 20
yrs
60 yrs for ppt of 25
yrs
70 yrs for life ppt
Premium Paying
Terms
15, 20, 25 yrs 15, 20, 25 yrs
Minimum Sum
Assured
Rs. 50,000 Rs. 50,000
Maximum Sum
Assured
No limit (subject to UW) No limit (subject to
UW)
Minimum Annual
Premium
Rs. 1,000 for issue age of < 15
yrs
Rs. 2,500 for issue age of > = 15
Met 100 Gold: Rs.
2,500
Met 100 Platinum:
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yrs Rs. 7,500
Death BenefitMet 100 - Par
In the event of death, the
Sum Assured plus the
Reversionary Bonus and
Terminal Bonuses, if any,
are payable.
Met 100 - Non-ParIn the event of death, theSum Assured is payable.
Maturity Benefit
Met 100 - Par
On maturity of the policy, the
Sum Assured plus theReversionary Bonus andTerminal Bonuses, if any, are
payable.
Met 100 - Non-Par
On maturity of the policy, the
Sum Assured is payable
Protection:-
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Met Suraksha
MetLife offers 'Met Suraksha - Term Assurance (TA)', a non
participating term assurance plan which provides life cover at a
nominal cost. To put it simply, it is a life insurance plan that
gives complete protection to enjoy life to the fullest. Customer
can further customize plan with two riders Accidental Death
Benefit and Critical Illness.
Met Suraksha TROP
MetLife offers 'Met Suraksha - Term with Return of Premium
(TROP)', a non participating term assurance plan which provides
life cover at a nominal cost. To put it simply, it is a life insurance
plan that gives complete protection to enjoy life to the fullest.
You can further customize your plan with two riders Accidental
Death Benefit and Critical Illness.
Met Mortgage Protector
This plan which provides life cover for home loans taken for any
period above 5 years. It is a decreasing term insurance with single
and limited premium options. The plan covers an amount equal to
the outstanding amount as per the policy schedule.
It ensures the assets that have created stays with family.
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Rural :-
None of us can be sure what tomorrow will bring. Shield your
families against the unknown. MetLifes rural plans protect your
loved ones against financial liabilities and help you save for
tomorrow. All at affordable premiums
Met Vishwas
'Met Vishwas', - a single premium, micro insurance, non-
participating term assurance plan which provides life cover at a
nominal cost. On survival, customers get 110% or 125% of the
premium.
Minimum Entry Age 18 years
Maximum Entry Age 60 years
Maximum Maturity Age 70 years
Minimum Sum Assured Rs. 5,000
Maximum Sum Assured Rs. 50,000
Policy Term 5 or 10 years
Premium Paying Terms Single Pay
Met Suvidha-Rural
Met Suvidha (Rural) is a participating flexible Endowment Plan
that combines savings and security. In addition to providing
protection up to maturity, it helps to save for specific long term
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financial objectives. This long term savings-cum-protection plan
comes at affordable premiums.
Benefits:
Met Suvidha - Par
In the event of death
during the term of the
policy, the beneficiary will
receive the base Sum
Assured, the accrued
reversionary bonus and
terminal bonus if any.
Maturity Benefit
Met Suvidha - Par
On maturity of the policy,
you will receive the base
Sum Assured, the accrued
reversionary bonus and
terminal bonus if any.
It is an Endowment plan that offers both savings and lifeinsurance.
Flexible premium paying options to suit various incomecycles.
A plan which participates in the bonuses declared by thecompany.
Customization possible with Accident Death Benefit,Critical Illness, Term, Waiver of Premium Riders forcomprehensive protection.
Investment:-
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MetLifes Unit-Linked Insurance Plans ensure systematic
enhancement of wealth. Be it higher returns or the right blend ofprotection and wealth optimization, they help to ensure the right
choice and peace of mind.
(IN THESE POLICY, THE INVESTMENT RISK IN
INVESTMENT PORTFOLIO IS BORNE BY THE POLICY
HOLDER )
Met Easy
A simplified unit-linked plan which offers an opportunity to
systematically build wealth and protection for you and your
family.
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(The maximum Sum Assured available in this product is based on age, at thetime of buying the policy.)
Benefits-
Death BenefitIn the event of
death:
In the 1st PolicyYear: Higher of50% of the Sum
Assured or the
Fund Value is
payable.
After the 1stPolicy Year :
Higher of 100%of the Sum
Assured or
Fund Value. If
death of the
Person Insured
occurs before
age 7, the Fund
Value plus the
Regular
Premium
received by usin the first
policy year is
payable.
Maturity
Benefit
On maturity, youwill receive theFund Value
including the
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10 years 15 years 20 years
Minimum Age
at Entry
8 3 0 (3 months to be
completed)
Maximum Age
at Entry
55 50 50
Minimum
Premium
20,000 15,000 12,000
Maximum
Premium
6,00,000 4,00,000 3,00,000
Sum Assured 5 times the
annualized regular
premium
7.5 times the
annualized regular
premium
10 times the
annualized regular
premium
Premium
payment modes
Yearly, Half-yearly,
Quarterly, Monthly
Yearly, Half-yearly,
Quarterly, Monthly
Yearly, Half-yearly,
Quarterly, Monthly
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Loyalty Additionor you can optfor the settlement
options.
Loyalty
Additions
With Met Easy,you get the
benefit of
potentiallyenhancing yourwealth creation
with loyaltyadditions that areadded to your
policy onmaturity.
Met Smart Gold
MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creation
cum protection plan for the well-heeled. It's specially conceivedso that one can get a plan to match his specific financialrequirements.
If you are keen on investing lump sum amounts over a shorter
horizon, this is the ideal plan for you.
Met Smart Plus-Regular Pay
'Met Smart Plus' a Unit-Linked Whole life plan that matures at
age 100. If you want to protect your family from lifes
uncertainties; at the same time, you wish insurance would yield
higher returns on your investments. You want your insurance
policy to help realize all your dreams. Its a right plan to go with.
Entry Age (in completed
years)
Min 0 years (3 months to be completed)
Max 70 years
Maturity Age 100 years
Premium Payment Term Regular
Minimum Annualized Rs. 12,000
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Premium
Minimum Basic Sum
Assured
Rs. 60,000
Premium Payment Modes Monthly, Quarterly, Half-yearly, Yearly
Met Smart Plus- Single Pay
Same as Met Smart Plus Regular but premium is payable in a
single term or at the time of policy taken.
Met Smart Premier- Regular Pay
MetLife offers 'Met Smart Premier' a Unit-Linked Whole life
plan that matures at age 100. You want to protect your family
from lifes uncertainties; at the same time, you wish insurance
would yield higher returns on your investments. You want your
insurance policy to help realize all your dreams.
Met Smart Premier- Single Pay
Payable lump sum at the time of policy taken.
Health:-
Met Health Care
UIN no: 117N048V01
Health problems strike unexpectedly. In addition to causing ill
health, it can also scar financial health. One need to protect
himself against such a situation through a health insurance plan.
In order to ensure you are well protected to face any health
condition that could befall you, MetLife presents - Met Health
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Care, a simple health insurance policy with unique and smart
advantages for you and your family#.
(# Family means spouse and two children. Every additionalfamily member shall be underwritten as per the underwritingconditions laid by the Company from time to time.)
Met Health Care is a long term health insurance plan fromMetLife. This plan covers
1. Hospitalization expenses by providing a Daily Cash benefit aschosen by you.2. 10 major Critical Illnesses by providing a lump sum benefit.3. Total & Permanent Disability due to accident by providing alump sum benefit.
All the above benefits can be availed without the hassle ofundergoing any medical examination. Just fill up the simpleapplication form and start enjoying the unmatched benefits ofMet Health Care.
Minimum/Maximum age
of entry
18 years-55 years (At first entry, for thePrincipal insured)3 months-55 years (For Secondary Insured lives)
Cover ceasing age 65 years
Maturity/Death Benefit No Maturity/Death Benefit payable
Benefits Offered (a) Daily Hospitalisation Cash Benefit(b) Daily ICU Cash Benefit(c) Recuperation Benefit(d) Critical Illness Benefit(e) Accidental Total & Permanent DisabilityBenefit
Premium paying frequency Yearly. Half-Yearly mode is avaiable only ifeach of the persons insured choose a daily cash
benefit of Rs. 3000 or more.
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Illustration
Benefit Option 1 Option 2 Option 3 Option 4 Option 5
Daily Hospitalisation
Cash Benefit
Rs. 1000 per day Rs. 2000 per day Rs. 3000 perday
Rs. 4000 perday
Rs. 5000 perday
Daily ICU Cash Benefit Rs. 2000 per day Rs. 4000 per day Rs. 6000 perday
Rs. 6000 perday
Rs. 6000 perday
Recuperation Benefit Rs. 3000 Rs. 6000 Rs. 9000 Rs. 10000 Rs. 10000
Critical Illness Benefit Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh
Accidental Total &
Permanent Disability
Benefit
Rs. 1 Lakh Rs. 2 Lakh Rs. 3 Lakh Rs. 3 Lakh Rs. 3 Lakh
Benefits
Death/Maturity Benefit
There is no Death/Maturity Benefit under Met Health Care.
Tax Benefits
The premium paid (excluding the service tax) under this plan is
eligible for Tax Benefits under Section 80 D of the Income Tax Act,
1961 as per the provisions and conditions given therein and are
subject to any changes made in the tax laws in future.
Reasons to Buy1. Coverage for the entire family.
2. No Claim Discounts.
3. Guaranteed Cover* till age 65.
4. Payouts in addition to other Insurance Plans.
5. Multiple Claims.
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S.W.O.T ANALYSIS OF METLIFE INDIA INSURANCE
STRENGTHS
With over139 years of experience Metlife have
approximately US $ 3.3 trillion of life insurance in
force.
Brand Image , Business Experience and
Innovative products..
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Large number of young workforce .The 40K agents
which are very selectively chosen .
Service quality which is the crux of their mission.
Has tie up with banks like Axis , J&K , Barclays ,
Karnatka Bank and Dhanalakshmi bank.
Paidup capital ofRS 1500 cr as on 2008 which
shows company dependability.
Very less charges on ULIP plans as compare toother insurance players .
WEAKNESS
Many competitors in the market ofsame products
by the title and difference in premium and offerings.
Sustainable to riskassociated with investments in
money market.
Very less network branches due to which its
difficult for customer to make payment easily.
Not focusing on consumer awareness mainly
concentrating on personal selling .
More focusing in urban areas not touching rural
area which has a very good potential market for
insurance sector.
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Lacking in advertisement due to which they are
not able to cover a large area or large no of
customer.
OPPORTUNITY
Huge market is literally untapped. Out of
estimated 320 millions insurable markets only 20%
of the population is insured.
Health insurance and pension schemes, anestimated marketpotential of approximately $ 15
billion.
Nearly 70% of the Indian population is without
Life , Health , and Non-Life insurance.
Per Capita life insurance premium in India in 2004
was $16 as compared to the world average of $ 292.
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Strong economic growth with increase in affluence
and rising risk awareness leading to rapid growth in
the Insurance sector.
THREATS
Players like bajaj and birla sunlife offersame plans
with low premiums.
Entry of many other private companies with
equally strongexperience and financial strength
of foreign partners making the competition difficult
and saturating the urban markets (example ; idbi fortis
insurance , bharti axa insurance and more.)
Current govt. policies do not encourage gross
domestic savings. if the tax liability of the sevice
class rises, the customer will have little money to
invest.
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Lic has woken up from sleep and is following
competitive strategies. its huge surplus in life fund
gives a capability to lodge price war.
MAN Concept:
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This concept means that before selling, the seller should make sure that the
suspect should have the Money, Authority and Power to buy the product, and then
only the prospect will become a Suspect. Before deciding suspect a person should
identify that they should have enough money to buy that service, prospect should
have authority and power of taking decision, he should also have need of buying
the product. If a person have all these things than only he can become suspect of
the product.
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RESEARCH METHODOLOGY
Objective
Scope of study
Sampling methodology
Limitations
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RESEARCH METHODOLOGY
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TITLE:
To Study Potential of Life Insurance Industry in Ahmedabad.
TITLE JUSTIFICATION:
The above title is self explanatory. The study deals mainly with
studying the buying pattern in the insurance industry with a
special focus on MetLifeIndia Insurance Co. Ltd. The various
segments of the markets divided in terms of Insurance Needs,
Age groups, Satisfaction levels etc will also studied.
OBJECTIVE
Main objective of the research is to have an analysis of life
insurance industry in Ahmedabad. To accomplish this objective it
has been divided into five.
To determine reasons behind opting for an insurance.
To know the most preferred policy.
To determine customers perception towards private
insurance companies and their expectation form private
insurance companies.
To determine the feedback on services provided by an
insurance agent.
To study the types of benefits provided by insurance
services.
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SCOPE OF THE STUDY
A big boom has been witnessed in Insurance Industry in recent
times. A large number of new players have entered the market
and are trying to gain market share in this rapidly improving
market. The study deals with reliance in focus and the various
segments that it caters to. The study then goes on to evaluate and
analyze the findings so as to present a clear picture of trends in
the Insurance sector.
SIGNIFICANCE TO THE INDUSTRY:
This is a limited study which takes into consideration the
responses of 100 people. This data can be explorated to take in
the trends across the industry. The significance for the industry
lies in studying these trends that emerge from the study. It is a
rapidly changing and evolving sector. People are only beginning
to wake up to its vast possibilities. A study like this can attempt
to guide the future of the industry based on current trends.
SIGNIFICANE FOR THE RESEARCHER:
To facilitate and provide useful information for the study of thecompany and the insurance industry and also providerecommendations forMetLife India Insurance Co. Ltd
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RESEARCH DESIGN
EXPLORATORY & DISCRIPTIVE
EXPERIMENTAL RESEARCH
The research is primarily both exploratory as well as descriptive
in nature. The sources of information are both primary &
secondary.
A well-structured questionnaire was prepared and personal
interviews were conducted to collect the customers perception
and buying behavior, through this questionnaire.
SAMPLING METHODOLOGY
Sampling Technique:
Initially, a rough draft was prepared keeping in mind the
objective of the research. A pilot study was done in order to know
the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus my
sampling came out to be judemental and convinent
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Sampling Unit:
The respondents who were asked to fill out questionnaires are the
sampling units. These comprise of employees of MNCs, Govt.
Employees, Self Employed etc.
Sample size:
The sample size was restricted to only 100, which comprised of
mainly peoples from different regions of Ahmedabad due to time
constraints.
Sampling Area:
The area of the research was Ahmedabad, India.
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LIMITATIONS OF THE RESEARCH
1. The research is confined to a certain parts of Ahmedabad
and does not necessarily shows a pattern applicable to all of
Country.
2. Some respondents were reluctant to divulge personal
information which can affect the validity of all responses.
3. In a rapidly changing industry, analysis on one day or in
one segment can change very quickly. The environmental
changes are vital to be considered in order to assimilate the
findings.
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SURVEY
Graph Analysis
Data Interpretation
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DATA ANALYSIS & INTERPRETATION
NUMBER OF PEOPLE HAVING INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Yes 70 70%
No 30 30%
Total 100 100%
INTERPRETATION
Of the sample size of 100 surveyed respondents 70%
of the respondents are having Insurance policy.
30% of the respondents are either not having any
Insurance policy at present or their policy is already matured.
And at present 100% of the respondents are with the
view that Insurance is a tool to protect your family.
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TYPES OF INSURANCE POLICY RESPONDENTS HAVE
POLICY TYPE NO. OF
RESPONDENTS
SHARE (%)
LIFE POLICY 75 75
NON LIFEPOLICY
25 25
BOTH 45 45
INTERPRETATION
75% of the respondents have only Life Insurance
Policy.
While 45% of the respondents have both.
25% of the respondents have only Non- life Policy.
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[Some of the respondents opted for two or more than two items]
PREFERENCE OF RESPONDENTS OF INSURANCE
COMPANIES
COMPANYS NAMENO.OF
RESPONDENTSHARE (%)
L.I.C. 74 74
Reliance LifeInsurance
3 3
Metlife India Ins.Co.Ltd
2 2
Bajaj Allianze 3 3
ICICI Prudential 9 9
SBI Life 7 7
Max New York Life 2 2
TOTAL 100 100
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INTERPRETATION
55% of the respondents believe that covering future
uncertainty is the biggest benefit of an insurance policy.
Whereas, 20% and 25% of them believe that the other
benefits are Tax deduction and future investments
respectively.
FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS
FEATURE NO.OF
RESPONDENTS
SHARE (%)
Money Back Guarantee 15 15
Larger Risk Coverage 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Companys Reputation 11 11TOTAL 100 100
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MONEY
BACKGUAARENTEE
15%
LARGERRISK
COVERAgE37%
EASYACCESS TO
AGENTS7%
LOWPREMIUM
30%
REPUTATION OF
COMPANY11%
[Fig 5]
INTERPRETATION
Majority of the respondent (37%) found larger risk
coverage as the most attracted feature of the all.
Minimum respondents (7%) opted for easy access to
agents.
PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE
(%)
A saving tool 81 81%
A tax saving device 74 74%
A tool to protect your family 100 100%
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INTERPRETATION
81% of the respondents have perception of Insurance
being a saving tool.
And 74% of the respondents have perception of
Insurance being a tax saving device.
But 100% of the respondents are with the view that
Insurance is a tool to protect your family.
[Some of the respondents opted for two or more than two items]
PERSONS HAVING INSURANCE FOR
Response No of respondents
self 40
spouse 28
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children 21
parents 18
all 11
INTERPRETATION
Among that 42% people who having insurance, they have
insurance 40% for self, 28%for spouse ,21% for children and
18% for their parents and 11% for all family member.
REASONS BEHIND TAKING INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Tax saving 80 80%
Saving / Investment 80 80%
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Family protection 100 100%
INTERPRETATION
80% of the Respondents opted for Insurance for tax
saving benefits and saving/investment both.
But all of them, i.e. 100% of the respondents have
opted for insurance for their family protection.
[Some of the respondents opted for two or more than two items]
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SATISFACTION OF RESPONDENTS WITH RESPECT
TO POLICY
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Satisfied 60 60%
Not satisfied 40 40%
Not Responded 0 0.0%
Total 100 100%
INTERPRETATION
60% of the respondents are more or less satisfied with
their existing policy.
40% of the respondents are not satisfied with their
existing policy.
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In this case all of those who have taken a policy have
responded.
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SATISFACTION OF +VE RESPONDENTS WITH
RESPECT TO SERVICE AGENT
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Satisfied 45 45%
Not satisfied 55 55%
Not Responded 0 0.0%
Total 100 100%
Satisfied
45%Not satisfied
55%
Not Responded
0%[Fig 10]
INTERPRETATION
45% of the respondents are satisfied with their existing
service agent.
55% of the respondents are not satisfied with their
existing insurance agent.
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All of those who have taken a policy have responded.
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NUMBER OF RESPONDENTS PAYING TAX
RESPONSE NO. OFRESPONDENTS
SHARE (%)
Paying tax 91 91%
Not paying tax 9 9%
Total 100 100%
INTERPRETATION
Of the sample size of 100 respondents, 91 respondents
are paying tax.
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RESPONDENTS PERCEPTION ABOUT BEST FORM
OF INVESTMENT FOR SECURING THEIR FUTURE
NO. OF
RESPONDENTS
SHARE (%)
Fixed Assets 75 33%
Bank deposits 11 5%
Jewellery 25 11%
Securities i.e. bonds, MFs 40. 17%
Shares 10 4%
Insurance 70 30%
Fixed
Assets, 75
Bank
deposits, 11
Jewellery, 25
Bonds/Mutual
Funds, 40
Shares, 10
Insurance, 70
0
10
20
30
40
50
60
70
80
Fixed Assets Bank deposits Jewellery Bonds/Mutual
Funds
Shares Insurance
[Fig 12]
INTERPRETATION
75% of the respondents are with the view that Fixed
Assets is the best form of investment for securing their future.
70% of the respondents are with the perception that
Insurance is the best form of investment for securing their
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future, which is 2nd highest and this shows that insurance is
an important key for securing your future.
[Some of the respondents opted for two or more than two items]
PEOPLES PERCEPTION ON APPROPRIATE AGE
FOR BUYING INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
After 25 years 29 29%After 35 years 10 10%
After 45 years 0 0%
Anytime 61 61%
INTERPRETATION
29% of the respondents are with the view that
insurance should be bought after the age of 25 years.
10% of the respondents are with the view thatinsurance should be buyed after the age of 35 years.
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Whereas, 61% of the respondents are with the view
that buying of insurance do not have anything to do with age
i.e. there is no age limitations. It can be purchased any time
according to the need.
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PEOPLE OPINION ABOUT INDIAN INSURANCE
COMPANIES
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%
INTERPRETATION
67% of the respondents have the opinion that Indian
Insurance Companies have Rigid plans.
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29.5% feel that Indian Insurance companies are Non-
user friendly.
26.5% feel that services of Indian Insurance companies
are Unsatisfactory.
35.75% of the respondents are with the view that
Indian Insurance companies are Non-aggressive.
24% of the respondents feel that products and services
of Indian Insurance companies is Satisfactory.
Whereas only 10.25% feel that it is Good enough.
And according to the data, no single person has felt
that it is very good.
[Some of the respondents opted for two or more than two items]
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WHAT PEOPLE LOOK FOR IN AN INSURANCE
COMPANY
RESPONSE NO. OF
RESPONDENTS
SHARE
(%)
A trusted name 82 82%
Friendly service &
responsiveness
71 71%
Good plans 81 81%
Accessibility 49 49%
INTERPRETATION
82% customers look for a Trusted name in a company
for insurance.
81.5% customers look for a good plan in a company
for insurance.
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Friendly service & responsiveness and Accessibility
are also important factors looked by customers in a company.
[Some of the respondents opted for two or more than two items]
PEOPLE INTERESTED IN GOING FOR INSURANCE IF
A SERVICE PROVIDER AWAY FROM THE CITY
OFFERS BETTER SERVICE & PRODUCTS
RESPONSE NO. OFRESPONDENTS
SHARE (%)
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%
INTERPRETATION
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The interested customers i.e. 43% are ready to go for
insurance even away from a city if services and products are
worthwhile, which again is a good prospect (potential) for
Max New york Life Insurance to take them on their favor.
PEOPLE PLANNING FOR NEW INVESTMENTS
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
Planning 87% 87%
Not planning 13 13%
Total 100 100%
Planning
87%
Not Planning13%
[Fig 17]
INTERPRETATION
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Only 13% of the customers contacted are not planning
for new investments presently.
Whereas, 87% of the customers are still planning for
new investments this can be a great potential for MetLife
India Insurance Co. Ltdto take them on their favor.
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FINDINGS &RECOMMENDATIONS
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FINDINGS & RECOMMENDATIONS
1. As the people think that insurance is a tool to protect their
family & a tax saving device. They are aware of the fact &
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realizing its, importance. There is a large potential for insurance
in India.
2. The entrance of private players will increase the competition
and it would be a tough task to secure a good position in market.
3. Since Met Life India Insurance is leading with several
companies policies it should be easy for them to penetrate into
the market and secure a good position if they pay greater
attention to the service part provided to their customer and
thereby forming a long and trusted relationship.
4. As seen from the survey that at present 70% of the customer
are having insurance policy out of which 87.5% of the customer
are planning for new investments. So it can be a good potential
for the company and they should make an attempt to trap these
customers.
5. As 43% of the customers are even ready to go for insurance if
a service provider away from their city is providing it. But in turn
they should provide good products and services. The company
should try to convince these customers and get them in its favor.
GROWTH POTENTIAL
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At present life insurance penetration in India is quite low 3.5%of GDP.
PHASE OF TRANSITION
Life Insurance industry is under t