hasib project

8/7/2019 Hasib Project

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A PROJECT REPORT ON

Potential of Life Insurance Industry in Noida

By Hasib BakshRoll no : 09504013MFC, 2009-10

Bundelkhand University, Jhansi. MetLife India Insurance Co. Ltd


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A PROJECT REPORT ON

Potential of Life Insurance Industry in Noida

The study was conducted from 25 st of May,10 to 25 st of June,10

At

MetLife India Insurance Co. Ltd, Noida.

Submitted by :

Hasib Baksh

(MFC 2009-10)

Bundelkhand University ,Jhansi

Company Guide:Mr. Tusar sharmaSales Manager,MetLife India Insurance Co.Ltd, Noida.

Faculty Guide:Dr.Mohd Shamim AnsariBundelkhand University

Jhansi
http://showpdf%28%27downloads/Media%20Kit/MetLife-White-on-Blue-Logo.zip')


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CERTIFICATE FROM THE ORGANIZATION

This is to certify that the project entitled Potential of Life Insurance Industry inNoida isa bonafide work of Hasib Baksh, a student of Bundelkhand University,(Jhansi), and wassuccessfully conducted at, MetLife India Insurance Co. Ltd, Noida , from 25 st May to 25 st

June,10 for the fulfillment of the course Master of Finance and Control (MFC) of Bundelkhand University, Jhansi.

Mr. Tusar Sharma,

Sales Manager,

MetLife India Insurance Co. Ltd,

Noida.


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CERTIFICATE BY THE GUIDE

This is to certify that the project work entitled Potential of Life Insurance Industry inNoida is a piece of work done by Hasib Baksh , student of Bundelkhand University, under my guidance and supervision for the fulfillment of the course MFC, BundelkhandUniversity, Jhansi

To the best of my knowledge and belief the project embodies the work of the candidate

himself and has been duly completed. Simultaneously, the project fulfills the requirements of the rules and regulations related to the summer internship of the institute and I am assuredthat the project is up- to the standard both in respect to the contents and language for beingreferred to the examiner.

Dr.Mohd Shamim Ansari

Course coordinator of M.F.C


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CONTENTS

PARTISULARS Page No.

AcknowledgementExecutive Summary

78

Introduction Introduction of the Industry

Life InsuranceGeneral InsuranceMajor Policy changesChanging Face of Indian Insurance IndustryVarious types of Life Insurance Policies

Introduction of the CompanyCompany ProfileMetLife Inc.ValuesManagementInsurance Plans/Products

(9-37)91011131415

1717192022

Research Methodology Objective Scope of study Sampling Methodology Limitations

(38-42)39394142

Survey Graph Analysis & Data Interpretation

(43-61)44

Findings & recommendations Findings & Recommendations Growth Potential Conclusion

(62-65)6364

65

Bibliography (66)

Annexure Questionnaire

(67-70)68


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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

manager Mr. Tusar Sharma, Sales Manager at MetLife India Insurance Co. Ltd, Noida ,

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 Dr.Mohd Shamim Ansari (faculty members) for providing me

guidance in preparing my project report.

Last but not the least I am also thankful to all the staff members of MetLife India Insurance

Co. Ltd to make my project successful.

Hasib Baksh

EXECUTIVE SUMMARY


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In todays corporate and competitive world, I find that insurance sector has the maximumgrowth and potential as compared to the other sectors. Insurance has the maximum growthrate 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 enhancingsector.

The success story of good market share of different organizations depends upon theavailability of the product and services near to the customer, which can be distributedthrough a distribution channel. In Insurance sector, distribution channel includes onlyagents 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 theother 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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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 lossof life and were willing to make some sort of sacrifice in order to achieve security. Thoughthe concept of insurance is largely a development of the recent past, particularly after theindustrial 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 OrientalLife Insurance Company. First attempts at regulation of the industry were made with theintroduction of the Indian Life Assurance Companies Act in 1912. A number of amendmentsto this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features inthe Act were the power given to the Government to collect statistical information about theinsured and the high level of protection the Act gave to the public through regulation andcontrol. 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, aceiling on share holdings in such companies to prevent dominant control (to protect the publicfrom 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 lifeinsurance companies. Business was heavily concentrated in urban areas and targeted thehigher echelons of society. Unethical practices adopted by some of the players against theinterests of the consumers then led the Indian government to nationalize the industry. InSeptember 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industryfairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate thelife insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objectiveof protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.


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General Insurance

The General insurance business in India started with the establishment of Triton InsuranceCompany Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile

Insurance Ltd . was set up to transact all classes of general insurance business. General

Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Actwas amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business(Nationalization) Act was passed to nationalize the general insurance business in India witheffect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four companys viz., the National Insurance Company Ltd ., the New India Assurance Company

Ltd ., the Oriental Insurance Company Ltd ., and the United India Insurance Company Ltd .General Insurance Corporation of India was incorporated as a company

Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd . set up, the first company to transact all classesof general insurance business.

1957: General Insurance Council , a wing of the Insurance Association of India, frames acode of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvencymargins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated andgrouped into four companies viz. the National Insurance Company Ltd., the New IndiaAssurance Company Ltd., the Oriental Insurance Company Ltd. and the United IndiaInsurance Company Ltd . GIC incorporated as a company.


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MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurancecompanies with the enactment of Insurance Regulatory and Development Authority Act,1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory andDevelopment Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of theinsurance industry. IRDA Act 1999 paved the way for the entry of private players into theinsurance market which was hitherto the exclusive privilege of public sector insurancecompanies/ corporations. Under the new dispensation Indian insurance companies in private

sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;The aggregate holdings of equity shares by a foreign company, either by itself or through itssubsidiary companies or its nominees, do not exceed 26%, paid up equity capital of suchIndian insurance company;The company's sole purpose is to carry on life insurance business or general insurance

business or reinsurance business.The minimum paid up equity capital for life or general insurance business is Rs.100crores.The minimum paid up equity capital for carrying on reinsurance business has been

prescribed as Rs.200crores.The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of

policy holders' interest etc. Applications were invited by the Authority with effect from 15thAugust, 2000 for issue of the Certificate of Registration to both life and non-life insurers. TheAuthority has its Head Quarter at Hyderabad.

Changing face of Indian insurance industry:Indian life-insurance market is the target market of all the companies who either want toextend or diversify their business. To tap the Indian market there has been tie-ups between themajor Indian companies with other International insurance companies to start up their

business. The government of India has set up rules that no foreign insurance company can set

up their business individually here and they have to tie up with an Indian company and this


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foreign insurance company can have an investment of only 24% of the total start-upinvestment.

Indian insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better insurance products.

Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products andincreasing the penetration of life insurance in the vastly underinsured country. Several of

private insurers have introduced attractive products to meet the needs of their targetcustomers and in line with their business objectives. The success of their effort is that theyhave captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been thecustomer. A wide range of products, customer focused service and professional advice has

become the mainstay of the industry, and the Indian customers forms the pivot of eachcompanys strategy. Penetration of life insurance is beginning to cut across socio-economicclasses and attract people who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool.Apart from the traditional term and saving insurance policies, industry has seen the entry andgrowth of unit linked products. This provides market linked returns and is among the mostflexible policies available today for investment. Now products are priced, flexible, andrealistic and sustain so people in better position to understand the risk and benefits of the

product and they are accepting these innovative products.

So it is clear that the face of life insurance in India is changing, but with thechanges come a host of challenges and it is only the credible players with a long term visionand a robust business strategy that will survive. Whatever the developments, the future andthe opportunities in this industry will surely be exciting.

Various types of life insurance policies:-

Endowment policies: This type of policy covers risk for a specified period, and atthe end of the maturity sum assured is paid back to policyholder with the bonuses

during the term of the policy.


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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 atthe lowest possible premium cost.

Term life insurance policies: This type of insurance covers risk only during theselected term period. If the policy holder survives the term, risk cover comes to anend. 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 paidup values are in such policies.

Whole life insurance policies: This type of policy runs as long as the policyholder isalive and is covered for the entire life of the policyholder. In this policy the insuredamount 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 inmaturity benefits and risk cover, but joint life policies cover two lives simultaneouslysuch as married couples. Sum assured is payable on the first death and again on thedeath 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 a guaranteed incomeeither for a life or certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides lifecover as well as return on premium paid over a certain period of time. The investmentis 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 wasincorporated as a joint venture between MetLife International Holdings, Inc., The Jammu andKashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife isone of the fastest growing life insurance companies in the country. It serves its customers byoffering a range of innovative products to individuals and group customers at more than 600locations 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 lifeinsurer 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 500companies. The MetLife companies offer life insurance, annuities, automobile and home

insurance, retail banking and other financial services to individuals, as well as groupinsurance, reinsurance and retirement and savings products and services to corporations andother institutions.

MetLife Inc.:-

Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial serviceswith operations throughout the United States and the Latin America, Europe, and Asia Pacific

regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc.
http://showpdf%28%27downloads/Media%20Kit/MetLife-White-on-Blue-Logo.zip')


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reaches more than 70 million customers around the world and MetLife is the largest lifeinsurer 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/DhanalakshmiBank/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
http://www.metlife.co.in/http://www.metlife.co.in/


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Management:-

Rajesh RelanManaging Director

MSVS Phanesh MurthyAppointed Actuary

Shilpa VaidDeputy Director- Human Resources

Gaurav SharmaDirector - Customer Service and Operations

Girish MalhotraDirector- Agency

KR Anil KumarDirector - Financial Planning& Controller

KS RaghavanChief Administrative Officer

Preetinder ChadhaDeputy Director - Corporate Sales & Training

P. S. SankaranDirector Business Support

Sameer BansalDirector- BA & BP

Vijay RaghavanDirector - Marketing & Strategy
http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23http://www.metlife.co.in/MetLifeAboutus_MgtTeam.aspx#%23


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partners

Corporate Social Responsibility:-

MetLife has always been committed to making a positive difference in the lives of theindividuals 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 createopportunities for people of all ages.

MetLifes core values are personal responsibility, people count, partnership, integrity andhonesty, innovation and financial strength. These values also shape the responsibility to thecommunities 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 tomeet the education and career milestones of children. With this plan, the Life Insured is thatof the parent. The plan also has inbuilt guaranteed additions to add value to the policy over itsterm.

There are two options to choose from and fixed term benefits, periodic additions & terminaladditions are payable based on the option that select. The policy is suitable for parents withchildren 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 and security.Children's well-being is our highest priority. So MetLife offer a plan which offers both timelyand 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, theReversionary 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 withall 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 athletesor qualified training for born singers to provide that extra-edge.

To ensure this, parents would need an investment and protection package that is exclusivelydesigned to help you plan for financial security, no matter what uncertainties life brings.

'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps parents do justthat. It secures finances for child's educational needs and ensures that plans go as planned, nomatter what the circumstances.
http://www.metlife.co.in/MetLifeIndPlans_Childplan_landing.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetBhavishya.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetBhavishya.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorEndowment.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetLittleStar.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Childplan_landing.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetBhavishya.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorEndowment.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetLittleStar.aspx


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\Met Junior Money Back

MetLife offers 'Met Junior Money Back' - a money back plan that combines savings andsecurity. 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 withguaranteed growth of savings.

A plan which offers both timely and efficient return on investment with payouts at differentmilestones .

Survival Benefit

At the end of 5 years 20% of Sum Assured



Upon survival to maturity 40% of Sum Assured plus total GuaranteedAdditions

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 wantyour 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 ISBORNE BY THE POLICY HOLDER )

Retirement :-

Met Growth

MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is speciallydesigned 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 createretirement fund faster by giving you 100% allocation from the second year onwards, coupledwith attractive loyalty additions into fund. Guaranteed.
http://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorMoneyBack.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Childplan_MetMagic.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Childplan_MetMagic.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Retirement_landing.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Retirement_MetGrowth.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Child_MetJuniorMoneyBack.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Childplan_MetMagic.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Retirement_landing.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Retirement_MetGrowth.aspx


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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

Death BenefitIn the unfortunate event of death, the higher of the Sum Assured or the FundValue would be payable.If death of the Person Insured occurs before age 7, the Fund Value plus theregular premium received by us in the first policy year is payable.

Maturity BenefitOn maturity, you will receive the Fund Value including the Guaranteed LoyaltyAddition or you can opt for the settlement options.

Loyalty AdditionsYou get the guarantee of enhancing your wealth creation through guaranteedloyalty additions (up to 120% of the first year annual premium) at the end of the10th & 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 Pension-Par

'Met Pension (Par)' serves as a friendly helping hand so one can stay financially independenteven 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.
http://www.metlife.co.in/MetLifeIndPlans_Retirement_MetPension%20-%20Par.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Retirement_MetPension%20-%20Par.aspx


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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) & Regular Pay

Benefits

Death BenefitIn case of death while one is saving for retirement, the death benefit payable is: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 Benefit On the vesting date, you can take one third of your retirement kitty as a tax-free lumpsum and utilize the balance to buy annuities or you can use the entire retirement kitty tobuy annuities. The retirement fund on the date of vesting is equal to the Sum Assuredplus Guaranteed Additions plus the compounded reversionary bonuses plus theterminal bonus, if any.

Met Sukh

MetLife offers 'Met Sukh'- a guaranteed money-back policy which provides guaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years and guaranteed additions of 10%of the Sum Assured for the entire term. It not only covers your life, but also guarantees youcash payments at various milestones along with guaranteed growth of your savings.

Entry Age Min - 15 yearsMax - 55 years

Coverage Term 20 years

Premium Payment Term Regular
http://www.metlife.co.in/MetLifeIndPlans_Savings_MetSukh.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Savings_MetSukh.aspx


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Benefits

Death BenefitIn the unfortunate event of death of the Person Insured, the Sum Assured alongwith 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 theGuaranteed Addition.

Survival Benefits

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 longterm financial objectives. This long term savings-cum-protection plan comes to a customer ataffordable 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

At the end of 5 years 20% of the Sum Assured



Upon survival to maturity 40% of the Sum Assured plusTotal Guaranteed Additions
http://www.metlife.co.in/MetLifeIndPlans_Savings_MetSuvidha.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Savings_MetSuvidha.aspx


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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



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, moreimportantly, 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 yrs65 yrs for ppt of 20 yrs60 yrs for ppt of 25 yrs

70 yrs for ppt of 15 yrs65 yrs for ppt of 20 yrs60 yrs for ppt of 25 yrs70 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 AnnualPremium

Rs. 1,000 for issue age of < 15 yrsRs. 2,500 for issue age of > = 15yrs

Met 100 Gold: Rs. 2,500Met 100 Platinum: Rs.7,500

Protection :-
http://www.metlife.co.in/MetLifeIndPlans_Savings_Met100.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Savings_Met100.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Protection_landing.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Savings_Met100.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Protection_landing.aspx


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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 nominalcost. 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 Mortgage Protector

This plan which provides life cover for home loans taken for any periodabove 5 years. It is a decreasing term insurance with single and limited

premium options. The plan covers an amount equal to the outstandingamount as per the policy schedule.

It ensures the assets that have created stays with family.

Met Vishwas

'Met Vishwas', - a single premium, micro insurance, non- participatingterm assurance plan which provides life cover at a nominal cost. Onsurvival, customers get 110% or 125% of the premium.

Minimum Entry Age 18 years

Maximum Entry Age 60 years

Maximum Maturity Age 70 years


Maximum Sum Assured Rs. 50,000

Policy Term 5 or 10 years

Premium Paying Terms Single Pay

Met Suvidha-Rural
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(The maximum Sum Assured available in this product is based on age, at

the time of buying the policy.)

Benefits-

Death BenefitIn the event of death:In the 1st PolicyYear : Higher of 50% of the SumAssured or theFund Value ispayable.After the 1stPolicy Year :Higher of 100%of the SumAssured or FundValue. If death of

the PersonInsured occursbefore age 7, theFund Value plusthe RegularPremium receivedby us in the firstpolicy year ispayable.

Maturity BenefitOn maturity, youwill receive theFund Valueincluding the

Loyalty Additionor you can opt for the settlementoptions.

Loyalty AdditionsWith Met Easy,you get the benefitof potentiallyenhancing your wealth creationwith loyaltyadditions that areadded to your

policy on maturity .

Met Smart Gold

10 years 15 years 20 years

Minimum Age atEntry

8 3 0 (3 months to becompleted)

Maximum Age atEntry

55 50 50

MinimumPremium

20,000 15,000 12,000

MaximumPremium

6,00,000 4,00,000 3,00,000

Sum Assured 5 times the annualizedregular premium

7.5 times the annualizedregular premium

10 times the annualizedregular premium

Premiumpayment modes

Yearly, Half-yearly,Quarterly, Monthly


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Health :-

Met Health Care

Health problems strike unexpectedly. In addition to causing ill health,it can also scar financial health. One need to protect himself againstsuch a situation through a health insurance plan. In order to ensureyou are well protected to face any health condition that could befallyou, MetLife presents - Met Health Care, a simple health insurance

policy with unique and smart advantages for you and your family.

( Family means spouse and two children. Every additional familymember shall be underwritten as per the underwriting conditions laid

by the Company from time to time.)

Met Health Care is a long term health insurance plan from MetLife.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 a lumpsum benefit.

All the above benefits can be availed without the hassle of undergoing any medical examination. Just fill up the simpleapplication form and start enjoying the unmatched benefits of MetHealth Care.

Minimum/Maximum age of entry 18 years-55 years (At first entry, for the Principal 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 if each of the persons insured

choose a daily cash benefit of Rs. 3000 or more.
http://www.metlife.co.in/MetLifeIndPlans_Health_MetHealthCare.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Health_MetHealthCare.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Health_MetHealthCare.aspxhttp://www.metlife.co.in/MetLifeIndPlans_Health_MetHealthCare.aspx


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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 TaxBenefits under Section 80 D of the Income Tax Act, 1961 as per the provisionsand conditions given therein and are subject to any changes made in the tax lawsin future.

RESEARCH METHODOLOGY

TITLE:

To Study Potential of Life Insurance Industry in Noida.

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 MetLife India 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 Jaipur. To accomplish this objective it has been divided

into five.

To determine reasons behind opting for an insurance.

To know the most preferred policy.


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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.

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.

.

SAMPLING METHODOLOGY

Sampling Technique:


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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

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 Noida due to time

constraints.

Sampling Area:

The area of the research was Noida, India.

LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Noida 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.


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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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DATA ANALYSIS & INTERPRETATION

NUMBER OF PEOPLE HAVING INSURANCE

RESPONSE NO. OFRESPONDENTS

SHARE (%)

Yes 70 70%

No 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.

TYPES OF INSURANCE POLICY RESPONDENTS HAVE


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POLICY TYPE NO. OF RESPONDENTS SHARE (%)

LIFE POLICY 75 75

NON LIFE POLICY 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.

[Some of the respondents opted for two or more than two items]

PREFERENCE OF RESPONDENTS OF INSURANCECOMPANIES

COMPANYS NAME NO.OF RESPONDENT SHARE (%)

L.I.C. 74 74


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Reliance Life Insurance 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

INTERPRETATION

74% of the people contacted prefer LIC policy to any other

and therefore it is ranked no.1 by that percent of respondents.

BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

BENEFITSNO.OF

RESPONDENTS SHARE (%)


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Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

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.OFRESPONDENTS

SHARE (%)

Money Back Guarantee 15 15

Larger Risk Coverage 37 37

Easy Access to Agents 7 7

Cover FutureUncertainty

55%Tax

Deductions20%

FutureInvestment

25%

[Fig 4]


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Low Premium 30 30

Companys Reputation 11 11

TOTAL 100 100

MONEYBACK

GUAARENTEE

15%

LAR

COV3

EASYACCESS TO

LOW

PREMIUM30%

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


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.


PERSONS HAVING INSURANCE FOR

Response No of respondents

self 40

spouse 28

children 21

parents 18

all 11


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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


SHARE (%)

Tax saving 80 80%

Saving / Investment 80 80%

Family protection 100 100%


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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.



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SATISFACTION OF RESPONDENTS WITH RESPECT TOPOLICY


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.

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


SHARE (%)

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

Satisfied45%

Not satisfied55%

Not Responded0%

[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.

All of those who have taken a policy have responded.


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NUMBER OF RESPONDENTS PAYING TAX


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.

RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE


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NO. OFRESPONDENTS

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%

FixedAssets, 75

Bank deposits, 11

Jewellery, 25

Bonds/MutualFunds, 40

Shares, 10

Insura

0

10

20

30

40

50

60

70

80

[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 future,

which is 2nd highest and this shows that insurance is an

important key for securing your future.


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WHAT PEOPLE LOOK FOR IN AN INSURANCE

COMPANY


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.

Friendly service & responsiveness and Accessibility are

also important factors looked by customers in a company.


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PEOPLE INTERESTED IN GOING FOR INSURANCE IF A

SERVICE PROVIDER AWAY FROM THE CITY OFFERS

BETTER SERVICE & PRODUCTS


SHARE (%)

Yes 43 43%

No 44 44%

Uncertain 13 13%

Total 100 100%

INTERPRETATION

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.


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PEOPLE PLANNING FOR NEW INVESTMENTS


SHARE (%)

Planning 87% 87%

Not planning 13 13%

Total 100 100%

Planning

87%

Not Planning13%

[Fig 17]

INTERPRETATION

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. Ltd to take them on their favor.


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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 & 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

At present life insurance penetration in India is quite low 3.5% of GDP.


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PHASE OF TRANSITION

Life Insurance industry is under the phase of infancy after 50 years

of monopoly.

Competition from within and other sectors of financial market.

Needs environmental support till it reaches a comfort zone


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BIBLIOGRAPHY

WEBSITES REFERRED

www.metlife.co.in

www.irdaindia.org

www.thehindubusinessline.com

THANKS
http://www.metlife.co.in/http://opt/scribd/conversion/tmp/scratch16073/www.irdaindia.orghttp://www.thehindubusinessline.com/http://www.metlife.co.in/http://opt/scribd/conversion/tmp/scratch16073/www.irdaindia.orghttp://www.thehindubusinessline.com/


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hasib project

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